ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

5 Funds transfer mechanisms• Thereafter PMO-RALG prepares Payment Vouchers (PVs) [TFN. 4] (seeAnnex B, B16) for funds transfer from its Development Exchequer accountto each qualifying LGA’s general fund bank account held at a commercialbank. The PVs are electronically sent to the CPO• The CPO arranges for funds transfer to the nominated bank accountsthrough a Telegraphic Transfer (TT). A TT notification is also sent to theRegional Secretariat. Once funds are transferred to the LGAs, they mustbe expensed in the books of PMO-RALG as subventions/grants to LGAs• Upon receipt of the TT the local bank notifies the relevant LGA that fundshave been credited to relevant council account.LGAs are expected to account for funds received from central government inaccordance with the procedures laid down in Section Eight of the Local AuthorityAccounting Manual. Specifically, on receipt of funds, the Council Treasurer will:• Debit – the relevant sector cash book with amounts received (e.g. theagricultural sector)• Credit - the relevant sector subsidiary ledger entitled – “capital receiptsunapplied”• Credit - the relevant sector subsidiary ledger entitled – “monitoringexpenditure”• Inform Warrant Holders that funds are available.5.7 Reporting on basket fund balancesAt the end of every month the Accountant General or her/his delegated Officers:• Collect bank statements from the BOT for the previous month and extractledger fees, commissions, interest and other bank charges, prepare ajournal voucher and post the journal voucher to the cash book• Prepare a month end Bank Reconciliation Statement [TFN. 135] (seeAnnex B, B13) to agree the cash book balance to that shown on the bankstatement. Bank reconciliation statements must always be supported bythe following schedules:Government of the United Republic of Tanzania42