ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

5 Funds transfer mechanisms• Deposits recorded on bank statements but not entered in the cashbook• Cheques recorded in the cash book but not credited on bankstatements• Charges recorded on the bank statements but not entered in thecash book• Transfers shown on bank statements which have not been postedto the cash book.Every quarter, the Accountant General also provides each PS, with a schedule whichspecifies all transfers from the basket fund account. This information is provided onthe standard Foreign Currency Receipts and Payments Summary (see Annex B,B14). The Accountant General also sends each PS, copies of bank statements andTFN. 135 schedules.5.8 Exchange rate proceduresThe basket fund account is maintained in United States Dollars (USD) but transfersfrom this account to each ASLM’s Exchequer Account are made in Tanzania Shillings(TZS). Thus, there is a need to convert amounts in USD into TZS. Likewise, at theend of the fiscal year, unspent balances in TZS are converted into USD andtransferred back to the basket fund account. Consequently there are likely to bemonetary gains and losses arising from currency conversations.In order to determine gains or losses, the Accountant General keeps a record ofexchange rates applicable on the date funds are deposited into the holding account;and transferred to the various exchequer accounts. In particular, the Public DebtSection at the Accountant General’s Department is responsible for daily input ofofficial exchange rates from the BOT (buying and selling) onto the IFMS.The Accountant General attributes funds retained in the basket fund account to eachdevelopment partner on the basis of contributions made.Government of the United Republic of Tanzania43