ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

5 Funds transfer mechanismsThe 2001 Treasury circular, “Channelling of Project Funds Through the ExchequerSystem”, states that development partners are required to inform the Treasury andASLM Chief Accountants in writing of any deposits made. In their communication,development partners must provide details of the “account number, name of theproject and any other relevant details”.The BOT issues a Bank Credit Advice to the Accountant General to notify him/herthat the bank has credited the ASDP Holding Account with funds received fromdevelopment partners. The Accountant General maintains a file of all bank creditadvices on this account. For the purpose of an individual development partner's ownaudit requirements, a copy can be forwarded to them on request.On receipt of the Bank Credit Advice, the Accountant General issues a pre-numberedReceipt Voucher in triplicate. The original is sent to the development partner, secondcopy filed with supporting documentation (credit advice and bank statement) and thirdcopy maintained as the book copy. The IFMS operator at the Accountant General'soffice uses the duplicate Receipt Voucher to update the cashbook on the IFMS.5.5 Disbursing funds from the basket fund account to ASLMsdevelopment exchequer accountsThe following procedures are used for disbursing funds out of the ASDP basket fundaccount to the ASLMs development exchequer accounts:• One month prior to the commencement of the next quarter, ASLMs ChiefAccountants prepare a quarterly cash flow (see Annex B, B8). In thecourse of preparing the cash flows, Chief Accountants must makereference to the work plan and the cash flow for the preceding quarter andtake into consideration those activities that have not been completed in theearlier period which needs to be carried forward• Accounting Officers at the ASLMs submit consolidated cash flow forecaststo the ASDP Basket Fund Steering Committee for review and approval.Approvals are subject to satisfactory progress made (i.e. technical andfinancial performance) in the previous quarter.The transfer process is illustrated in Figure 5.1 overleaf and described as follows:Government of the United Republic of Tanzania38