Expenditure of the Association’s funds shall be governed by clear processes of authorization and accountability, and will comply with Executive Committee decisions and legislative requirements before approval with the Annual General Assembly Meeting.
1.1 BUDGET AND REPORTING
1.1.1 The Association Annual Budget.
The Director in collaboration with the Executive Committee Meeting, shall prepare the Association’s annual budget. The budget will reflect the determined priorities of the Association.
The annual budget will be presented to the General Assembly Meeting for approval three months before the end and beginning of the financial year which ends in December and starts in January. The budget will be presented with details of:
(a) The amount required for all staff accruals and an itemization of the Accrual type up to the end of the period for which the grant was received;
(b) An itemized list of committed expenses and the amount required to meet the commitments;
(c) Actual projected surpluses (deficits) until the end of the year.
An appropriate accounting system will be maintained to ensure that financial transactions are properly recorded and kept up–to–date. The Executive Director/General Secretary shall monitor the accounting.
Quarterly financial reports will be prepared by the Treasurer General in consultation with the Executive Director and the Executive Committee Meeting. These will be presented to the Board of Trustees by the Executive Director and thereafter the General Assembly Meeting for transparency approval.
Financial reports will detail the :
(a) Budgeted and actual income; and
(b) Budgeted and actual expenditure.
The Director /General Secretary and the Treasurer General shall be responsible for ensuring adequate preparations for the annual audit and for liaison with the Auditor.
1.2 AUTHORITY FOR EXPENDITURE
The Director shall have the delegated authority to expend the approved Association Budget with the power of approval of the amount not exceeding Ten Million Shillings(TZS 10,000,000/=).The Director/ General Secretary shall approve and monitor expenditure and ensure that amounts drawn for regular costs and one off items do not exceed the approved budgeted amount. The power of approval of fund by the General Secretary and the Treasurer General will not exceed the total amount of Five Million Shillings( TZS 5,000,000/=) unless otherwise there have been a legal permission and order from the Executive Director.
Any expense items not reflected in the budget must be presented to the Executive Director or Executive Committee through the General Secretary for approval prior to the expenditure. Where non-budgeted expenditure is of an urgent nature; for example, rectifying an occupational health and safety risk in the workplace; the General Secretary or Treasurer General may seek an approval by telephone message or e-mail from the Executive Director to remedy the situation.
The staff will be delegated the authority to expend petty cash floats. Staff will ensure that proper accounting procedures are followed. Use of petty cash floats will be monitored by the Treasurer General and/or Executive Director and the General Secretary.
1.3 SIGNING OF CHEQUES
There will be three signatories( Executive Director, Treasurer General and the Purchasing Officer). No Cheque shall be valid where the signature of the Executive Director is missing. In any transaction, two signatories must use their power accordingly. Between these two, one must be the Executive Director.
(a) No cheque shall be signed by staff only.
(b) Under no circumstances will signatories pre–sign blank cheques.
No cheques will be issued for cash unless a receipt has been produced or a cheque requisition is prepared for the following:
(a) Petty Cash;
(b) Cash advances for itemized expected expenditure for training or conferences;
(c) Client expenses or allowances; and
(d) Expenditure passed by the Executive Committee resolution, in which case refer to petty cash float.
Once signed, cheques must be sent immediately to the payee or locked away securely.