Policy and Procedure Guidelines for Financial Management of the Mekong Wetlands Biodiversity Programme

Draft 1.0

Policy and Procedure Guidelines for Financial Management of the Mekong Wetlands Biodiversity Programme
Prepared by Programme Management Unit Mekong River Basin Wetland Biodiversity Conservation and Sustainable Use Programme

Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Contents
$ntroduction%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & Principles o" Sound #inancial Management%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 Revisions to Policies and Procedures %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' &% (elegation o" )ut*ority %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& 2% Preparing Workplans and Budgets %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& W*at is a +orkplan, %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& W*at is a budget, %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 Revising Workplans and Budgets%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 -*e Planning Process%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' Preparing an annual +orkplan and budget%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' &% $n"ormal discussions +it* key stake*olders at national and provincial level% ' 2% Planning +orks*ops at national and provincial level%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' '% Planning session +it*in t*e .ational Programme O""ice and Provincial Pro/ect O""ice %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' 0% )dditional discussion +it* t*e .ational Programme (irector in preparation "or presentation o" t*e +orkplan and budget to t*e .ational Steering Committee%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' % Presentation o" annual +orkplan and budget to Provincial and .ational Steering Committee %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 1% Presentation o" approved annual +orkplan and budget to 23ecutive Regional Steering Committee %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 Preparing a si34mont* +orkplan and budget%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 Revising Workplans and Budgets %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1 '% Reporting %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & Mont*ly Re5uest "or #unds by .ational Programme O""ice and Provincial Pro/ect O""ice%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & Mont*ly 23penditure Report%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& .ational Programme O""ice and Provincial Pro/ect O""ice Budget versus )ctual Report +it* .arrative%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 6uarterly Re5uest "or Cas* )dvance "or U.(P%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 6uarterly 23penditure Report "or U.(P%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 One 7ear8Si3 Mont* Work Plan +it* Budget%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' 0% #inancial -ransactions%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& 9o+ -*is Section $s Organised%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& )bout :ead time%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& Recruitment and 9iring%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& :ocal sta""%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & $nternational sta""%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 Payroll%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & :ocal sta"" on country payroll%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& $nternational sta""%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 Purc*ase o" !oods and Services%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& Consultants ;$ndividual :ocal<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& $nternational ;$ndividual<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 $nstitutional arrangements %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' 25uipment %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 0

Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Consumables and supplies ;"or .ational Programme Coordinator and Provincial Pro/ect O""ice< ;same process as above<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Consumables and supplies ;"or PMU<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1 -ravel%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & (S) and Per (iem Rates%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& (S) and Per (iem "or sta"" attending meetings%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& (S) and Per (iem "or duty travel "or partner and government sta""%%%%%%%%%%%%%%%%%& Responsibilities and )ut*ori=ations "or -ravel%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 :ocal travel ;by air or by train<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' Road trip ;e3cept pro/ect ve*icle<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 Pro/ect ve*icle%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% $nternational ;Cas* advance<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%1 Settlement o" travel e3penses%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%> Meetings and +orks*ops? Re5uest "or approval and cas* advance%%%%%%%%%%%%%%%%%%%%%%%%& Rental and :ease )greements ;"or property<%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& Opening bank accounts%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& Personal :oans to Sta""%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& #re5uently )sked 6uestions about #inancial Management%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& 9iring Consultants%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& Consulting Rates%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%& Signing Contracts "or Consultants%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 (educting $ncome -a3 "rom Consultant@s Payment%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 Purc*asing Committee%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2 Procuring Services%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%' Preparing Budgets%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 !etting Budget $n"ormation%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%0 Spending Over Budget%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% -ravel %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% )nne3%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% & (S) and Per (iem Rates%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%2

Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

ntroduction
-*e Mekong River Basin Wetland Biodiversity Conservation and Sustainable Use Programme ;MWBP or At*e Programme@< is a partners*ip programme% Regional partners are t*e !lobal 2nvironment #acilityB !overnment o" t*e .et*erlandsB U.(PB t*e Mekong River Commission and $UC.% )t t*e national and provincial levelB partners are !overnment MinistriesB (epartmentsB $nstitutes and )genciesB local and international .!Os and civil society organi=ations% By +orking toget*erB t*e partners *ope toB Cstrengthen capacity at regional, national and local levels for wetland biodiversity conservation and sustainable use in the Lower Mekong Basin. -*e speci"ic ob/ectives "or t*e Programme are described in Regional and .ational Results #rame+orks as AOutputs@% Outputs describe t*e c*anges eac* t*e partner +ill try to bring about over t*e ne3t years o" t*e Programme% )ctivities describe +*at must be done to produce t*e Outputs in t*e Results #rame+orks% -*e +orkplans and budgets "or t*ese activities are /ointly negotiated by t*e partners% -*ese negotiations take place "irst ;steering committees< at t*e local levelB t*en at t*e national level and are revie+ed and approved at t*e regional level% Once approvedB t*e +orksplans go back to t*e local level +*ere .ational and Provincial Pro/ect O""ices begin to implement t*eir +orkplans% -*is process o" consultationB negotiationB revie+ and approval +ill take place on an annual basis% -*e proposed cycle is outlined in t*e "igure? )nnual cycle "or +orkplan and budget development
2vent PMC meeting $mplementation o" current +orkplan and budget Mid year Revie+ (ra"ting Workplan and budget "or t*e ne3t year )pproval by .ational Steering Committee #inalising +orkplan and budget )pproval by Regional Steering Committee $mplementation o" ne+ +orkplan and budget 3 July 3 A S O 3 N D J F M A M J

$ntroduction Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

Princi!les of "ound Financial Management

$UC. *as been contracted by U.(P to manage t*e "unds at t*e regionalB national and provincial levels% $n managing t*e "undsB $UC. is responsible "or ensuring sound financial management% Sound "inancial management is based on a number o" basic principles% -*ese principles +ere not invented by $UC.D t*ey are internationally accepted accounting and "inancial management practices recogni=ed +orld+ide by leading public and private sector organi=ations% -*e basic principles o" sound "inancial management ad*ered to includeB among ot*ersB principles o"

-ransparency

)ny one o" t*e partners s*ould be able to see clearly *o+ any ot*er partner is spending t*e "unds t*ey agreed to allocate to MWBP activities% -*is applies to direct "undsB co4"inanced "undsB and parallel "unds%

$nternal c*ecks and balances

-*e same person cannot Are5uest@ and Aapprove@ spending a sum o" money% .o amount o" moneyB *o+ever smallB can be spent +it*out t*e approval o" someone at least one step *ig*er up in t*e c*ain o" command +it*in an organi=ation% -*is is o"ten re"erred to as t*e t+o4signature system

$ndependent e3ternal auditing

-*e records s*o+ing *o+ "unds *ave been spent are sub/ect to annual e3amination by an independentB impartial "inancial e3pertB usually an internationally recogni=ed accounting "irm% Principles o" sound "inancial management are designed to?

prevent corruption and reduce or eliminate "inancial risk or lossD ensure t*at "unds are spent according to t*e agreed +orkplansD ensure t*at people responsible "or implementing t*e activities in t*e +orkplans *ave t*e "inancial resources t*ey need to do t*eir /obD and *elp programme sta"" spend "unds e""iciently and e""ectively and report accurately on t*e "unds t*ey spend%

)s t*e custodian or A"inancial manager@ o" t*e MWBPB $UC. is responsible "or?

p*ysically managing and sa"eguarding "undsD

$ntroduction Revised October 200

Policy and Procedure !uidelines "or #inancial Management

disbursing "unds to partners in a timely manner "or spending on Programme activitiesD keeping accurate and up4to4date records o" all "inancial transactions related to Programme activitiesD providing "inancial reports to t*e partnersB to sta""B and to t*e e3ternal auditorD *elping partners and sta"" +it* "inancial planningB budgetingB monitoring and evaluationD *elping partners and sta"" understand and comply +it* "inancial policies and procedures needed to ensure e""ective "inancial operations%

2""ective "inancial operations depend on clear policies and procedures "or di""erent areas o" activity suc* as?

cas* management ;budgetsB re5uests "or "unds and disbursement o" "undsB etc%< personnel policies ;recruitingB *iringB salary scalesB etc%< delegation o" aut*ority "or signing approvals on spending at set levels ;+*o can approve up to +*at amount o" money to be spent<D purc*asing ;goods and services<D reimbursement "or transportation and travel e3pensesD re5uirements "or supporting documentation ;receiptsB 5uotationsB tec*nical speci"icationsB etc%<D and "inancial reporting re5uirements and reporting sc*edules%

#evisions to Policies and Procedures

-*e policies and procedures described in t*is document are guidelines and sub/ect to revision as t*e need arises% )ll sta"" are encouraged to o""er comments and suggestions on t*e contentB structure and "ormat o" t*is document% Please send your comments to?
Ric*ard #riend MWBP Programme Manager ric*ard%m+bpEiucnlao%org )nt*ony Princesa Mekong #inance Manager princesaEiucnt%org Peter Fo*n Meynell U.(P -eam :eader peter/o*n%meynell%undp%org

$ntroduction Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

1. Delegation of $uthority
-*is section describes +*o *as aut*ority to approve +*at actions and e3penditures% W*enever t*ere is any doubt about delegation o" aut*orityB c*eck +it* t*e person your report to directly "or clari"ication%

4 $nsert revised table *ere 4

&% (elegation o" )ut*ority Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

%. Pre!aring Work!lans and Budgets

-*e overall structure o" t*e Mekong Wetlands Biodiversity Programme is described in t*e documentB Mekong River Basin Wetland Biodiversity Conservation and Sustainable Use ProgrammeB )nne3 &%& )% (etailed -erms o" Re"erence "or Steering Committees and senior Programme Managers are described in )nne3 &%& BB and "or .ational and Programme Sta"" in )nne3 &%& C% -*ese )nne3es describe organi=ational structures and duties o" management sta""B but t*ey do not describe t*e processes t*at make t*e Programme +ork% One o" t*e key processes "or implementing t*e MWBP is t*e process o" preparingB revie+ingB revising and approving t*e annual +orkplans and budgets "or t*e activities t*e .ational Programme O""ice and t*e Provincial Pro/ect O""ice +ill undertake% -*is process and t*e 5uality o" t*e annual +orkplans and budgets +ill re"lect *o+ e""ectively t*e partners are +orking toget*er% -*e annual cycle "or preparing +orkplans and budgets is outlined in t*e "igure belo+%
Fuly PMC meeting $mplementation o" current +orkplan and budget Mid year Revie+ (ra"ting Workplan and budget "or t*e ne3t year )pproval by .ational Steering Committee #inalising +orkplan and budget )pproval by Regional Steering Committee $mplementation o" ne+ +orkplan and budget G G ) S O G . ( F # M ) M F

What is a &ork!lan'
Workplans are t*e basis "or reporting and "or monitoring and evaluation ;MH2<% ) +orkplan is a list o" activities t*at *ave to be done to ac*ieve t*e Outputs described in t*e Results #rame+orks in t*e Programme document% -*e +orkplan includes an activity name and codeB a brie" description o" t*e activityB a sc*edule o" +*en eac* activity s*ould take placeB and +*o is responsible "or making activities and tasks *appen% )ctivities are "urt*er broken do+n into tasks% ) task is one o" several steps re5uired to complete an activity% UsuallyB eac* Output +ill *ave "our to "ive activitiesB and eac* activity +ill *ave "our to "ive tasks%

2% Preparing Workplans and Budgets Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

#or e3ample? )ctivity &? Prepare a "ire and +ater management strategy "or -ran C*im .ational Park ;-otal Cost? IUS &00B000< -ask &? Organi=e a +orks*op +it* local stake*olders to revie+ t*e status and start t*e planning process -ask 2? 9ire a consultant to do an environmental inventory o" t*e Park -ask '? Organi=e a training programme "or t*e local River Basin Organi=ation -ask 0? Organi=e a local volunteer "ire ranger brigade $n preparing a +orkplanB you do not need to speci"y +*ere a +orks*op or training programme +ill be *eldB +*at time it starts or t*e many ot*er details t*at go into planning and implementing a particular event% -*e +orkplan is an overall plan "or implementation o" activities and does not need to record t*e "ine detail o" individual tasks% )n annual +orkplan presented to t*e .ational and Regional Steering Committee "or approval is part o" an overall regional "rame+ork o" +orkplans% W*ilst t*e content o" eac* +orkplan and budget +ill be di""erentB t*e process "or planning and t*e "ormat s*ould be t*e same% Wit*out some uni"ormity in process and "ormatB it +ould di""icultB i" not impossibleB "or t*e Programme Management Unit to monitor and evaluate t*e overall progress and impact o" t*e ProgrammeB to e3tract and s*are lessons learnedB or to report to t*e ot*er partners% -*e +orkplan is t*e basis "or more detailed planning at t*e national and provincial levelB +*ic* is t*e responsibility o" t*e .ational Programme Coordinator and t*e Provincial Pro/ect Co4Manager%

What is a (udget'
) budget is an approved plan o" income and e3penses "or a +orkplan% ) budget s*o+s *o+ muc* money is needed "or eac* activity and task in t*e +orkplan% .ational Programme Managers and Provincial Pro/ect Co4Managers +ill need up4to4 date "inancial reports "rom t*e Programme Management Unit to *elp t*em prepare t*eir country +orkplan budgets%

#evising Work!lans and Budgets

Workplans and budgets are "orecasts and estimates used "or planning purposes and "or monitoring and evaluation progress% $n t*e real +orldB conditions are constantly c*anging and it is o"ten necessary or desirable to c*ange plans% .ational Programme Coordinators and Provincial Pro/ect Co4Managers s*ould not regard +orkplans and budgets as Cstraig*t/acketsJ but as management tools% W*enever a c*ange is necessary or desirableB t*e +orkplan and budget can be revisedB provided t*e resources are available and any necessary approvals can be obtained in time% More detail on t*is process is provided in t*e "ollo+ing section%

2% Preparing Workplans and Budgets Revised October 200

Policy and Procedure !uidelines "or #inancial Management

)he Planning Process

Pre!aring an annual &ork!lan and (udget
1. Informal discussions with key stakeholders at national and pro incial le el Participants? .ational Programme Coordinator and sta""B Provincial Pro/ect Co4 Manager and sta""B Programme Management Unit sta""B members o" .ational and Provincial Steering CommitteeB ot*er important stake*olders% Purpose? Revie+ some o" t*e lessons learned "rom implementing t*e last +orkplanD get input on +*at activities s*ould go into t*e ne3t +orkplanD promote partners*ip and cooperation% Result? ) list o" proposed activities +it* indicative resource allocations and agencies +illing to implement activities% !. "lannin# workshops at national and pro incial le el Participants? Sta"" "rom t*e Programme Management UnitB representatives "rom U.(P and Mekong River CommissionB members o" t*e .ational and Provincial Steering CommitteesB .ational Programme Coordinator and sta""B Provincial Pro/ect Co4Manager and sta""% Purpose? Using inputs "rom t*e in"ormal discussions and ot*er relevant in"ormationB prepare a dra"t +orkplan and budget% -*is is a general plan and does not need detail at t*e task level% Result? (ra"t +orkplan and budget $. "lannin# session within the National "ro#ramme Office and "ro incial "ro%ect Office Participants? sta"" o" t*e .ational Programme O""iceB sta"" o" t*e Provincial Pro/ect O""iceB sta"" "rom t*e Programme Management Unit Purpose? -o speci"y in more detail t*e )ctivities and tasks and to prepare a detailed budget "or t*e +orkplan% Result? #inal dra"t +orkplan and budget &. Additional discussion with the National "ro#ramme Director in preparation for presentation of the workplan and 'ud#et to the National Steerin# (ommittee Participants? .ational Programme (irectorB .ational Programme CoordinatorB Pro/ect Co4ManagerB MWBP Programme Manager or delegated sta""

2% Preparing Workplans and Budgets Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

Purpose? -o revie+ t*e "inal dra"t and *elp t*e .ational Programme (irector prepare "or t*e presentation Result? )greed "inal dra"t +orkplan and budget and presentation plan ). "resentation of annual workplan and 'ud#et to "ro incial and National Steerin# (ommittee Participants? Members o" t*e Provincial Steering CommitteeB members o" t*e .ational Steering CommitteeB representatives "rom U.(P and t*e Mekong River CommissionB invited stake*olders and observers Purpose? -o present t*e annual +orkplan and budget "or "inal revie+ and approval% Result? #inal approved annual +orkplan and budget% .ote? 2it*er Committee may approve t*e +orkplan and budget Cpending revisionsJ% ) copy o" t*e revised +orkplan and budget can be sent to t*e C*air o" t*e Committee as evidence t*at t*e re5uested c*anges +ere made% -*e revised +orkplan or budget does not need a second round o" approval% *. "resentation of appro ed annual workplan and 'ud#et to +,ecuti e -e#ional Steerin# (ommittee Participants? members o" t*e 23ecutive Regional Steering CommitteeB MWBP Programme ManagerB U.(P -eam :eaderB representatives "rom U.(P and t*e Mekong River CommissionB invited stake*olders and observers Purpose? -o revie+ country +orkplans and budgets "rom a regional perspective Result? 23ecutive Regional Steering Committee approval .ote? t*e Regional Steering Committee may approve a +orkplan or budget Cpending revisionsJ% ) copy o" t*e revised +orkplan or budget can be sent to t*e C*air o" t*e Committee as evidence t*at t*e re5uested c*ange +as made% -*e revised +orkplan or budget does not need a second round o" approval%

Pre!aring a si*+month &ork!lan and (udget

&% .ational Programme Coordinator and Pro/ect Co4Manager prepare detailed sc*edules o" +*en activities and tasks +ill take place over t*e ne3t si3 mont*s% Participants? .ational Programme (irectorB .ational Programme CoordinatorB Provincial Pro/ect Co4ManagerB $UC. Wetland Pro/ect Co4Managers Purpose? -o prepare detailed plans and sc*edules "or activities and tasks Result? ) detailed +orkplan and budget

2% Preparing Workplans and Budgets Revised October 200

Policy and Procedure !uidelines "or #inancial Management

2% :iaise +it* t*e Programme Management UnitB Steering Committee members and ot*er stake*olders members to ensure t*at activities do not overlap or con"lict and t*at regional activities are built into t*e +orkplan sc*edule% Participants? .ational Programme (irectorB .ational Programme CoordinatorB Provincial Pro/ect Co4ManagerB $UC. Wetland Pro/ect Co4Managers Purpose? 2nsure smoot* running o" t*e +orkplan and "acilitate cooperation among partners Result? Smoot* implementation o" t*e +orkplan and improved lines o" communication and cooperation among partners% '% Prepare a mont*4by4mont* estimate o" e3penditures based on t*e detailed sc*edule and +orkplan "or eac* o""ice Participants? .ational Programme CoordinatorsB Provincial Pro/ect Co4ManagersB #inance and )dministration O""icers Purpose? Prepare a detailed mont*4by4mont* budget "or "unding Result? ) re5uest "or "unds based on a detailed budget 0% Present a detailed sc*edule o" activities to .ational Steering Committee and Provincial Management Board Participants? .ational Programme (irectorB .ational Programme Coordinator Result? )greed sc*edule o" activities and tasks % -oget*er +it* previous si34mont* e3penditure reportB re5uest #inance (epartment o" t*e Programme Management Unit and .ational Programme O""ice and Provincial Pro/ect O""ice to prepare speci"ic e3penditures "or provincial and national components Participants? .ational Programme CoordinatorB Provincial Co4ManagerB #inance and )dministration O""icerB sta"" "rom Programme Management Unit Purpose? -o report on planned versus actual e3penditures Result? 23penditure report ;Planned versus )ctual<

2% Preparing Workplans and Budgets Revised October 200

Policy and Procedure !uidelines "or #inancial Management

#evising Work!lans and Budgets

Workplans and budgets are management tools% Circumstances o"ten re5uire t*at +orkplan activities and tasks and t*e budgets t*at go +it* t*em need to be revised% -*e "ollo+ing procedure o""ers a guideline on *o+ t*is can be done% &% .ational Programme Coordinator or Provincial Pro/ect Co4ManagerB in consultations +it* relevant stake*oldersB proposes a ne+ activity or task or a revision to an e3isting activity or task to t*e MWBP Programme Manager 2% -*e Programme Manager revie+s t*e proposed c*ange or revision in consultation +it* relevant stake*olders% '%& $" t*e proposed c*ange is "or a taskB t*e .ational Programme Coordinator or t*e Provincial Co4Manager *as t*e aut*ority to addB delete or revise t*e taskB providing t*ere are "unds in t*e budget to cover t*e costs% '%2 $" t*e proposed c*ange is "or an activityB a"ter consultation +it* t*e Programme ManagerB t*e .ational Programme Coordinator or t*e Provincial Co4Manager s*ould propose t*e c*ange to t*e Provincial or .ational Steering Committee and ask "or t*eir input and approval be"ore making t*e proposed c*ange% $" t*ere are not su""icient "unds "or t*e proposed c*ange in t*e approved budgetB t*e .ational Programme Coordinator or t*e Provincial Co4Manager can discuss +it* t*e .ational Programme (irector and t*e Programme Management Unit +*ere additional "unds may be sourced% $" additional "unds cannot be sourcedB t*e proposed c*ange can be presented as part o" t*e ne3t annual +orkplan and budget%

2% Preparing Workplans and Budgets Revised October 200

Policy and Procedure !uidelines "or #inancial Management

,. #e!orting
Monthly #e-uest for Funds (y .ational Programme /ffice and Provincial Pro0ect /ffice
Re5uested and prepared by? #$.).C2 ).( )(M$. O##$C2R o" .ational Programme O""ice or Provincial Pro/ect O""ice )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? $UC. Programme Manager and8or U.(P -eam :eader to give concurring approvalB or it can be aut*orised by Mekong #inance Manager #re5uency? Mont*ly :ead time? Monday o" t*e t*ird +eek o" eac* mont* Process? #or re5uests "rom t*e Kietnam .ational Programme O""ice or Provincial Pro/ect O""iceB t*e $UC. Country O""ice consolidates t*e re5uirements "or t*e t+o o""ices be"ore sending t*e report to t*e Mekong #inance8$UC. Programme Manager #orm? Re5uest "or #unds

Monthly 1*!enditure #e!ort

Re5uested and prepared by? #$.).C2 ).( )(M$. O##$C2R o" .ational Programme O""ice or Provincial Pro/ect O""ice )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? $UC. Programme Manager and8or U.(P -eam :eader to revie+ and give concurring )pprovalD Mekong #inance Manager can alternatively provide t*e revie+ #re5uency? Mont*ly or as re5uested :ead time? One +eek a"ter t*e end o" eac* mont* Process? #or KietnamB t*e .ational Programme O""ice and Provincial Pro/ect O""iceB one copy o" t*e report s*ould to be sent to t*e $UC. Programme Manager and one copy to t*e $UC. Country O""ice in ;9anoi,< to provide secondary revie+ o" e3penditures. 23penditure reports submitted to t*e .ational Programme (irector s*ould *ave clearance "rom t*e $UC. Programme Manager and8or U.(P -eam :eader and Mekong #inance Manager #orm? 23penditure Report

'% Reporting Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

.ational Programme /ffice and Provincial Pro0ect /ffice Budget versus $ctual #e!ort &ith .arrative
Re5uested and prepared by? .ational Programme Coordinator or Provincial Co4 Manager +it* assistance "rom t*e #$.).C2 ).( )(M$. O##$C2R )pproved by? $UC. Programme Manager to revie+ ;and approve,< Processed by? Mekong #inance $UC. Programme Manager and8or U.(P -eam :eader #re5uency? Mont*ly :ead time? One +eek "ollo+ing t*e end o" eac* mont* toget*er +it* an e*!ense report Process? -*e #$.).C2 ).( )(M$. O##$C2R +ill *elp prepare t*is report but t*e .ational Programme Coordinator and Provincial Co4Manager need to e3plain any signi"icant c*anges% )n 23penditure Report submitted to t*e .ational Programme (irector s*ould *ave clearance "rom t*e $UC. Programme Manager and8or U.(P -eam :eader and t*e Mekong #inance Manager #orm? Budget H )ctual Report

2uarterly #e-uest for Cash $dvance for 3.DP

Re5uested and prepared by? Mekong #inance $UC. Programme Manager )pproved by? U.(P -eam :eader Processed by? Mekong #inance #re5uency? 6uarterly :ead time? On or be"ore t*e &0t* o" t*e mont* "ollo+ing t*e end o" eac* 5uarter Process? Mekong #inance to prepare t*e report "or signing by #inance and $UC. Programme Manager #orm? U.(P 23penditure Report

2uarterly 1*!enditure #e!ort for 3.DP

Re5uested and prepared by? )pproved by? Processed by? '% Reporting Revised October 200 2

Policy and Procedure !uidelines "or #inancial Management

#re5uency? :ead time? Process? #orm?

/ne 4ear5"i* Month Work Plan &ith Budget

Re5uested and prepared by? .ational Programme O""iceB PO or Programme Management Unit to +ork +it* #inance O""ices )pproved by? .ationalB Provincial Committee t*en Steering Committee Processed by? Workplan to be approved by committees #re5uency? every si3 mont*s :ead time? One mont* be"ore t*e start o" t*e period Process? Workplans are prepared by local committees and approved by ProvincialB .ational and Regional Steering Committees% #inance can *elp prepare budgets% #orm? Workplan and Budget

'% Reporting Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

6. Financial )ransactions
7o& )his "ection s /rganised
2ac* transaction is a subsection% -*is allo+s us to revise and update a single procedure +it*out revising t*e entire manual% -*e revision date s*ould appear in t*e "ooter% 2ac* transaction provides in"ormation on? Re5uested and prepared by? )pproved by? Processed by? #re5uency? :ead time? Process? #orm? #orms are contained in t*e )nne3% $" you are using a di""erent version o" a "ormB you s*ould replace your Aold@ version +it* t*e "orm in t*is )nne3%

$(out 8ead time

Part o" a manager@s /ob is to plan a*ead and anticipate "uture needs and re5uirements% A:ead time@ is *o+ muc* time you s*ould allo+ "or completion o" all t*e steps re5uired in a process% $t is t*e recommended minimum amount of time you s*ould allo+ "or a transaction to be processed% Because o" circumstances beyond your controlB you o"ten do not *ave t*e recommended amount o" lead time% $n suc* casesB you can e3pect t*e unit responsible "or processing your re5uest to do t*e best t*ey can to meet your re5uirements but you must accept t*at t*ey cannot guarantee to meet your deadline% Suc* cases s*ould be e3ceptions and not general practice%

0% #inancial -ransactions $ntroduction Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

#ecruitment and 7iring

8ocal staff
Re5uested and prepared by? .ational Programme Coordinator or Pro/ect Co4 Manager )pproved by? $UC. Programme Manager or .(P -eam :eader Processed by? $UC. country 9R O""ice ;"or :aos and Kietnam<B $UC. )RO49R4in Bangkok "or -*ailand and Cambodia *iring% #re5uency? )s re5uired :ead time? -+o mont*s Process? ) re5uest "or *iring sta"" must be based on t*e approved sta""ing plan% Send an approved Personnel Re5uisition "orm to t*e 9R o""ice% -*e general steps in t*e *iring process are? & 2 (iscuss and agree on t*e need "or ne+ sta"" Prepare -erms o" Re"erence and get t*e necessary approvals "or t*e position and budget Consider o""ice space and e5uipment re5uirements "or ne+ sta"" Place advertisement S*ortlist according to agreed criteria 1 > L M Set up an intervie+ panel and intervie+ s*ortlisted candidates Prepare note "or "ile #ollo+4up re"erences .egotiate +it* selected candidate -ask -eam $UC. Programme Manager U.(P -eam :eader -ask -eam 9R 9R 9R C*air or Secretary o" intervie+ panel $UC. )RO or Country o""ice $UC. )RO or Country o""ice

' 0

#orm? Personnel Re5uisition

0% #inancial -ransactions Recruitment and 9iring Revised October 200

&

Policy and Procedure !uidelines "or #inancial Management

nternational staff
Re5uested and prepared by? Programme MU )pproved by? $UC. Programme Manager8U.(P -eam :eader Processed by? 9R4)RO #re5uency? )s re5uired :ead time? t+o mont*s Process? ) re5uest "or *iring sta"" must be based on t*e approved sta""ing plan% Send an approved Personnel Re5uisition "orm to 9R% #orm? Personnel Re5uisition

0% #inancial -ransactions Recruitment and 9iring Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Payroll
8ocal staff on country !ayroll
Re5uested and prepared by? 9R O""ice )pproved by? $UC. Programme Manager8U.(P -eam :eader Processed by? Country 9R O""ice #re5uency? #rom date o" *iring :ead time? -+o +eeks be"ore t*e 2
t*

o" eac* mont*

Process? to start t*e payment o" salary processB submit a copy o" t*e contract to country "inance o""iceB a memoD Payment o" salaries is based on t*e signed contract and approved -erms o" Re"erence% #orm? memo and contract

0% #inancial -ransactions Payroll Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

nternational staff
Re5uested and prepared by? )RO49R8:ao #inance )pproved by? $UC. Programme Manager8U.(P -eam :eader Processed by? )RO49R #re5uency? #rom date o" *iring :ead time? -+o +eeks be"ore 2
t*

o" eac* mont*

Process? to start t*e processB same as aboveD Payment o" salaries is based on t*e signed contract and approved -erms o" Re"erence% #orm? memo and contract

0% #inancial -ransactions Payroll Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Purchase of Goods and "ervices

Consultants 9 ndividual 8ocal:
Re5uested and prepared by? .ational Programme Coordinator or Provincial Co4 Manager or Programme Management Unit )pproved by? Contracts "or up to IUS B000 to be signed by .ational Programme Coordinator or Provincial Co4Manager% Contracts "or more t*an IUS B000 must be signed by $UC. Programme Manager or U.(P -eam :eader Processed by? country 9R4O""ice or Pro/ect O""ice #re5uency? )s re5uired according to t*e approved +orkplan activity% :ead time? -+o mont*s in advance o" t*e estimated start date% Process? 9R4O""ice or Pro/ect O""ice s*ould "ind a suitable consultant% -*e standard procedure is to submit t*e names o" ' candidates along +it* t*eir CKsB daily rates and t*e number o" days t*ey +ould be re5uired% -*e .ational Programme CoordinatorB Provincial Co4Manager or Programme Management Unit can indicate in an attac*ed memo +*ic* o" t*e ' t*ey +ould pre"er and +*y% $" only one name is submittedB t*e .ational Programme CoordinatorB Provincial Co4Manager or Programme Manager must attac* a memo e3plaining +*y t*ey did not include t+o ot*er names% -*e general steps in t*e process o" *iring a local consultant are? & 2 (iscuss and agree on t*e need "or consultants Prepare -erms o" Re"erence and get t*e necessary approvals "or t*e position and t*e budget Searc* appropriate net+orksB databasesB CK "iles etc% Prepare s*ortlist o" t*ree candidates 2stablis* availability and "ees according to cost norms Revie+ candidates and c*eck +it* .ational Programme (irector Come to an agreement +it* t*e selected candidate and prepare a contract Monitor +ork done by consultant and aut*orise payments according to sc*eduleB billing and satis"actory completion as per t*e contract and -erms o" Re"erence -ask -eam $UC. Programme Manager U.(P -eam :eader -ask -eam -ask -eam -ask -eam -ask -eam .ational Programme Coordinator U.(P -eam :eader $UC. Programme Manager .ational Programme Coordinator

' 0

1 > L

#orm? Personnel Re5uisition 0% #inancial -ransactions Purc*ase o" !oods and Services Revised October 200 &

Policy and Procedure !uidelines "or #inancial Management

nternational 9 ndividual:
Re5uested and prepared by? .ational Programme CoordinatorB Provincial Co4 Manager or Programme Management Unit )pproved by? $UC. Programme Manager or U.(P -eam :eader Processed by? Country 9R and .ational Programme O""ice or Provincial Pro/ect O""ice recommending to $UC. Programme Manager or U.(P -eam :eader #re5uency? )s re5uired according to t*e approved +orkplan activity% :ead time? -+o mont*s in advance o" t*e estimated start date% Process? -*e $UC. 9R4O""ice or t*e .ational Programme O""ice or t*e Provincial Pro/ect O""ice s*ould identi"y a suitable consultant% -*e standard procedure is to submit t*e names o" ' candidates along +it* t*eir CKsB daily rates and t*e number o" days t*ey +ould be re5uired% -*e .ational Programme CoordinatorB Provincial C04 Manager or MWBP Programme Manager can indicate in an attac*ed memo +*ic* o" t*e ' candidates t*ey +ould pre"er and +*y% $" only one name is submittedB t*e .ational Programme CoordinatorB Provincial Co4Manager o" Programme Manager must attac* a memo e3plaining +*y t*ey did not include t+o ot*er names% -*e general steps in *iring an international consultant are t*e same as "or *iring a local consultantB e3ceptB in t*e table aboveB replace step > +it*? > Come to an agreement +it* t*e selected candidate and prepare contract U.(P -eam :eader $UC. Programme Manager Programme Coordinators

#orm? Personnel Re5uisition

0% #inancial -ransactions Purc*ase o" !oods and Services Revised October 200

Policy and Procedure !uidelines "or #inancial Management

nstitutional arrangements
;Consulting companiesB co4"inancing +it* ot*er institutionsB grants to institutions< Re5uested and prepared by? .ational Programme CoordinatorB Provincial Co4 Manager or Programme Management 23pert ;e%g% )lvin< )pproved by? $UC. Programme Manager or U.(P -eam :eader Processed by? .ational Programme CoordinatorB Provincial Pro/ect O""iceB Programme Management Unit #re5uency? )s re5uired according to t*e approved +orkplan activity% :ead time? -+o mont*s in advance o" t*e estimated start date% Process? -*e .ational Programme CoordinatorB Provincial Co4Manager or Programme Management Unit making t*e re5uest s*ould identi"y ' institutions and submit o""icial 5uotations "rom t*ose institutions "or t*e goods or services% $" only t*e name o" only one institution is submittedB t*e .ational Programme CoordinatorB Provincial Co4Manager or Programme Manager must attac* a memo e3plaining +*y t*ey did not include t+o ot*er names% Partners*ip arrangements do not 5uali"y under purc*ase re5uisition as t*ey are considered to be sole sourced and a stake*older in t*e programD it is assumed t*at t*ey +ill +ork to ac*ieve t*e terms o" re"erence considering t*at t*eir o+n resources are directed at t*e same deliverables% #orm? Purc*ase Order

0% #inancial -ransactions Purc*ase o" !oods and Services Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

1-ui!ment
Re5uested and prepared by? .ational Programme O""iceB Provincial Pro/ect O""ice or Programme Management Unit )pproved by? .ational Programme Coordinator or Provincial Co4Manager and U.(P -eam :eader "or Programme Management Unit re5uests Processed by? $UC. :aos )dministration O""ice +it* $UC. Programme )dmin #ocal Point "or :aosB Cambodia and -*ailand re5uestsD $UC. Kietnam O""ice "or Kietnam re5uests #re5uency? )s re5uired according to t*e approved +orkplan and budget% :ead time? -+o +eeks minimum "or payment and processing Process? -*e basic steps in t*e process are? & 2 (iscuss and agree on t*e need "or t*e e5uipment Prepare detailed speci"ications and a Re5uisition Slip% $n t*e Programme Management UnitB t*e Re5uisition Slip must be approved by t*e U.(P -eam :eader% Obtain at least t*ree 5uotations $" less t*an t*ree 5uotationsB give /usti"ication $" t*e purc*ase is less t*an IUS 2 0%00B pay directly "rom Petty Cas* "und $" t*e purc*ase is bet+een IUS 2 0%00 and IUS 00%00B t*e )dmin O""icer decides +*ic* o" t*e ' 5uotations is most appropriateB taking into account any pre"erences e3pressed by t*e -ask -eam making t*e re5uest% $" t*e purc*ase is over IUS 00%00B prepare documentation "or t*e Purc*ase Committee ;Re5uisition SlipB ' 5uotationsB /usti"ication i" less t*an 'B speci"ications< Convene a Purc*ase Committee meeting% ) Purc*ase Committee comprises? & Programme or Pro/ect O""ice sta""B & #inance O""ice sta"" and & sta"" "rom $UC. Pro/ect O""ice or Programme Management Unit 1 )dmin issues a Purc*ase Order on approval "rom t*e Purc*ase Committee -ask -eam -ask -eam

' 0

)dmin )dmin )dmin )dmin

)dmin

Programme Management Unit or .ational Programme O""ice or Provincial Pro/ect O""ice )dmin

#orm? Re5uisition SlipB 6uotation ReportB Purc*ase Order 0% #inancial -ransactions Purc*ase o" !oods and Services Revised October 200 0

Policy and Procedure !uidelines "or #inancial Management

Consuma(les and su!!lies 9for .ational Programme Coordinator and Provincial Pro0ect /ffice: 9same !rocess as a(ove:
Re5uested and prepared by? individual sta"" in .ational Programme CoordinatorB Provincial Pro/ect O""ice or Programme Management Unit )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? #inance and )dmin O""icer +it*in t*e .ational Programme Coordinator or Provincial Pro/ect O""ice #re5uency? )s re5uired :ead time? One +eek Process? $" a single item on a re5uisition slip costs more t*an IUS it must be approved by t*e Purc*asing Committee% #orm? Re5uisition

0% #inancial -ransactions Purc*ase o" !oods and Services Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Consuma(les and su!!lies 9for PM3:

Re5uested and prepared by? Programme Management Unit )pproved by? $UC. Programme Manager or U.(P -eam :eader or :aos Programme Manager Processed by? :aos )dmin #re5uency? )s re5uired :ead time? -+o +eeks Process? $" a single item costs more t*an IUS it must be approved by t*e Purc*asing Committee% Repeat orders do not need approval "rom t*e Purc*asing Committee% #orm? Re5uisitionB Purc*ase Order

0% #inancial -ransactions Purc*ase o" !oods and Services Revised October 200

Policy and Procedure !uidelines "or #inancial Management

)ravel
D"$ and Per Diem #ates
)RO issues regularly updated o""icial rates "or t*e Mekong (S) and Per (iem ;see )nne3<% -*ese rates +ill apply to all MWBP activities carried out by $UC.4MWBP sta""B ot*er $UC. sta"" involved +it* MWBP activities and consultants +orking on $UC.4MWBP contracts% (S) stands "or (aily Sustenance )llo+ance% (S) covers t*e cost o" t*ree meals and ot*er incidentals suc* as laundryB local transportation and miscellaneous e3penses but does not include *otel accommodation% Per (iem is (S) plus t*e cost o" *otel accommodation% $" you are paying t*e cost o" t*e *otel directlyB give a (S)% $" t*e consultant or sta"" is paying "or t*e *otelB give a Per (iem% #or $UC. sta"" or consultants on $UC.4MWBP contractsB use t*e )RO Mekong rates% DSA and "er Diem for staff attendin# meetin#s W*et*er or not sta"" get (S) or Per (iem "or attending a meeting s*ould be decided be"ore t*e meeting or +orks*op takes place and t*e participants in"ormed in advance% Rates may di""er "rom t*e o""icial publis*ed (S) or Per (iem rates i" meals and accommodations are provided "or by t*e organi=ers% #or e3ampleB "or a provincial meetingB participants "rom ot*er provinces are provided +it* transportation and an Callo+anceJ t*at is considered reasonable "or t*at event at t*at location% ) participant "rom a neig*bouring province mig*t receive a (S) o" IUS 20%00% O" t*is amountB IUS &0%00 is "or transportation and t*e ot*er IUS &0%00 as an allo+ance "or meals and ot*er incidental e3penses% DSA and "er Diem for duty tra el for partner and #o ernment staff Participating sta"" "rom partner and government o""ices may receive an allo+ance as decided by t*e budget manager "or t*at event% $n all casesB t*e rates publis*ed by $UC. MWBP s*ould be used as t*e basic guideline%

0% #inancial -ransactions -ravel Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

#es!onsi(ilities and $uthori;ations for )ravel

Basic responsibilities and aut*ori=ations "or travel are described in t*e table belo+% :ine Managers

)dministration Unit

#inance Unit

)ut*orise -ravel )ut*orisation #orms in advance o" travel% $n case o" international travelB ensure t*at t*e -ravel )ut*orisation is approved by t*e N%% 2nsure t*at sta"" members coordinate +it* t*e appropriate administration unit "or accommodation and logistical arrangements based on t*e original -ravel )ut*orisation #orm% #or cases not covered by t*e policyB advise your immeidate manager and ask "or clari"ication and aut*ori=iation% % Communicate regular "eedback on travel policy to bring a "ield perspective into to t*e revie+ and revision o" t*e policy% Manage and coordinate accommodation and logistical arrangements including visasB ticketsB etc% .egotiate corporate rates +it* suitable *otels8guest*ouses% (evelop systems and keep potential travelers in"ormed% Sign o"" on -ravel )dvance% Kalidate and settle -ravel Claims in a timely manner% (ra+ attention o" managers to cases in +*ic* management decisions are re5uiredB including delays in settlement o" advances or accumulated advances%
Complete your -ravel )ut*orii=ation "orm in advance o" travelB make re5uests "or Cas* )dvance +ell in advance o" your travelB complete your 23pense Claim +it*in one +eek o" return%

$ndividual traveler

sta""

0% #inancial -ransactions -ravel Revised October 200

Policy and Procedure !uidelines "or #inancial Management

8ocal travel 9(y air or (y train:

Re5uested and prepared by? Sta"" o" .ational Programme O""ice or Provincial Pro/ect O""ice )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? #inance and )dmin #re5uency? )s re5uired by approved activities in t*e +orkplan :ead time? One +eek be"ore travel Process? Sta"" travel s*ould be based on individual travel plans% #or t*e .ational Programme Coordinator and sta"" in t*e Provincial Pro/ect O""iceB travel plans are approved by t*e $UC. Programme Management Unit% #or Programme Management Unit sta""B t*e $UC. Programme Manager approves% -*e $UC. Programme Manager needs approval "rom t*e U.(P -eam :eader% #orm? -ravel Re5uest

0% #inancial -ransactions -ravel Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

#oad tri! 9e*ce!t !ro0ect vehicle:

Re5uested and prepared by? Sta"" o" .ational Programme O""iceB PO or Programme Management Unit )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? #inance and )dmin #re5uency? )s re5uired by approved activities in t*e +orkplan :ead time? One +eek be"ore travel Process? Sta"" travel s*ould be based on individual travel plans% #or t*e .ational Programme Coordinator and Provincial Pro/ect O""iceB travel plans are approved by t*e $UC. Programme Manager% #or Programme Management Unit sta""B t*e $UC. Programme Manager approves% -*e $UC. Programme Manager needs approval "rom t*e U.(P -eam :eader% #orm? -ravel Re5uestB Cas* )dvanceB $tinerary

0% #inancial -ransactions -ravel Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Pro0ect vehicle
Re5uested and prepared by? Sta"" o" .ational Programme O""iceB Provincial Pro/ect O""ice or Programme Management Unit )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? #inance and )dmin #re5uency? )s re5uired by approved activities in t*e +orkplan :ead time? -*ree days be"ore sc*eduled trip% Process? Sta"" travel s*ould be based on individual +eekly travel plans% #orm? Ke*icle Re5uisition

0% #inancial -ransactions -ravel Revised October 200

Policy and Procedure !uidelines "or #inancial Management

nternational 9Cash advance:

Re5uested and prepared by? Sta"" o" .ational Programme O""ice or Provincial Pro/ect O""ice )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? #inance and )dmin #re5uency? )s re5uired by activities approved by $UC. Programme Manager :ead time? One +eek be"ore travel Process? Sta"" travel s*ould be based on individual travel plans% #or t*e .ational Programme Coordinator and Provincial Pro/ect O""iceB travel plans are approved by t*e $UC. Programme Manager% #or Programme Management Unit sta""B t*e $UC. Programme Manager approves% -*e $UC. Programme Manager needs approval "rom t*e U.(P -eam :eader% #orm? -ravel Re5uest

0% #inancial -ransactions -ravel Revised October 200

Policy and Procedure !uidelines "or #inancial Management

"ettlement of travel e*!enses

Re5uested and prepared by? Sta"" o" .ational Programme O""iceB Provincial Pro/ect O""ice or Programme Management Unit )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? sta"" #re5uency? as per trip :ead time? One +eek a"ter return "rom travel Process? Sta"" travel s*ould be based on individual travel plans% #or t*e .ational Programme Coordinator and Provincial Pro/ect O""iceB travel plans are approved by t*e $UC. Programme Manager% #or Programme Management Unit sta""B t*e $UC. Programme Manager approves% -*e $UC. Programme Manager needs approval "rom t*e U.(P -eam :eader% #orm? -ravel 23pense Claim

0% #inancial -ransactions -ravel Revised October 200

>

Policy and Procedure !uidelines "or #inancial Management

Meetings and &orksho!s< #e-uest for a!!roval and cash advance

Re5uested and prepared by? Sta"" o" .ational Programme O""ice or Provincial Pro/ect O""ice )pproved by? .ational Programme Coordinator or Provincial Co4Manager Processed by? )ssisted by #$.).C2 ).( )(M$. O##$C2R #re5uency? )s re5uired by approved activities in t*e +orkplan :ead time? One mont* be"ore sc*eduled +orks*op Process? Re5uest t*e cas* +ell in advance as meetings and +orks*ops are "unded "rom :aos or )RO #orm? ) memo +it* t*e meeting or +orks*op )genda and budget attac*ed%

0% #inancial -ransactions Meetings and Works*ops Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

#ental and 8ease $greements 9for !ro!erty:

Re5uested and prepared by? .ational Programme Coordinator or Provincial Co4 Manager t*roug* t*e Programme Management Unit )dmin )pproved by? )RO Regional (irector and8or )RO #inance (irector and8or U.(P -eam :eader Processed by? Country )dmin and Mekong #inance Manager #re5uency? )s re5uired by approved activities in t*e +orkplan :ead time? -+o mont*s be"ore estimated start o" t*e contract% Process? )pproval is to be made by )RO Regional O""ice or a delegated representative "rom t*e country o""ice% Submit a memo asking "or approval along +it* a copy o" t*e rental or lease agreement% #orm? :ease contract

0% #inancial -ransactions Rental and :ease )greements Revised October 200

&

Policy and Procedure !uidelines "or #inancial Management

/!ening (ank accounts

Re5uested and prepared by? .ational Programme CoordinatorB Provincial Co4 Manager or Programme Management Unit t*roug* $UC. Programme Manager or Mekong #inance Manager )pproved by? )RO #inance (irector and endorsed by $UC. C*ie" #inance O""ice in !eneva Processed by? .ational Programme O""ice or Provincial Pro/ect O""ice #inance and )dmin O""icer and Mekong #inance Manager #re5uency? )s re5uired by approved activities in t*e +orkplan :ead time? One mont* be"ore t*e re5uired opening date "or t*e account Process? W*ere bank accounts cannot be opened +it* $UC. as t*e name o" t*e accountB a /oint account +it* co4signing +ill be considered% #orm? Bank documents +it* recommendation "or approval "or #(

0% #inancial -ransactions Opening Bank )ccounts Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

Personal 8oans to "taff

Personal loans may be e3tended to sta"" to overcome urgent "inancial constraints +*ere it is not possible to raise loans "rom usually accepted "inancial sources suc* as banks or "amily members% :oans +ill be e3tended on a case4by4case basis% ) loan may be considered under t*e "ollo+ing circumstances? (eat* in t*e "amily Kictim o" a natural disaster $n case o" trans"er or relocationB a loan "or advance rent payment or advance sc*ool "ees "or c*ildren 9ouse repairs ;+*en "ailure to repair +ould endanger t*e li"e or *ealt* o" t*e inmates< 9ouse purc*ase ;"or support sta"" only< 2ssential medical treatment "or a "amily member Maternity costs "or a spouse Wedding ;your o+n +edding or t*e +edding o" one o" your c*ildren< -*e Programme Management Unit reserves t*e rig*t to con"irm t*e stated circumstances% 2ligibility -o apply "or a loanB a sta"" must *ave at least one year o" service including t*e probationary period% Sta"" must *ave s*o+n ade5uate per"ormance t*roug*out t*at period and t*ere s*ould be no record o" disciplinary action against t*at person% Sta"" on a one year contract or in t*e "inal year o" a "i3ed term contract period +ould not be eligible "or a loan unless t*e amount borro+ed can be deducted +it*in t*e contract period under t*e "ollo+ing "ormula? ' mont*s gross salary divided by t*e number o" mont*s o" remaining contract period O amount deductible "rom eac* mont*s salary% :oan :imits #or t*e individual sta"" memberB one mont*s gross salary or i" a co4lateral sourceB suc* as Provident #und or !ratuityB is available "or repayment an amount e5uivalent to t*e co4lateral up toB but not e3ceeding a ma3imum o" t*ree mont*s gross salaries% -*e total amount o" "unds "or loans may not be in e3cess o" & P o" t*e total amount o" salaries o" all sta"" o" t*e respective Country O""ice or e5uivalent organi=ational unit% 9o+ever in units +*ere t*e number o" sta"" is lo+B a special case s*ould be made by t*e 9ead o" O""ice to t*e Regional (irector to increase t*e percentage above & P% Repayment Repayment is usually made in t+elve e5ual mont*ly payment taken "rom t*e sta"" member@s salary at source% -*e deduction "or repayment o" t*e loan +ould start "rom t*e mont* succeeding t*e mont* in +*ic* t*e loan +as taken% #or repayment by sta"" on "i3ed term contracts see t*e 2ligibility section above% $" a sta"" member +*o *as been granted a loan resigns or is terminated be"ore t*e "ull loan is recoveredB t*e

0% #inancial -ransactions Personal :oans to Sta"" Revised October 200

&

Policy and Procedure !uidelines "or #inancial Management

unpaid balance +ill be deducted during t*e notice period and "rom t*e "inal settlement% Currency :oans +ill be granted only in local currency and must be repaid in t*e same currency% :imitations ) sta"" member cannot apply "or anot*er loan until t*e current loan *as been repaid in "ull% Process? Sta"" member

:ine Manager

9uman Resources Manager

#inance Unit

9ead o" (uty Station

#inance Unit

Makes an application to t*e :ine ManagerB using t*e loan application "ormB in +*ic* t*e reason "or re5uesting t*e loan is clearly identi"ied% Provides a +ritten citation o" co4lateral and assurance t*at it is +it*out previous lien 2valuates t*e genuineness and eligibility o" t*e circumstances and admissibility against t*e rules% Recommends t*e loan or not and in eit*er case re"ers to 9R% $n"orms sta"" member o" progress o" t*e application% Revie+s t*e :ine manager@s recommendationB double4 c*ecking in coordination +it* t*e :ine Manager i" necessary% )dvises as to admissibility o" t*e loan as per t*e Rules% $" admissible re"ers t*e application to t*e #inance Unit% $" inadmissible in"orms t*e :ine Manager giving t*e reasons% Monitors t*e "re5uency o" recommendations "rom various o""ices and managers% )dvises on t*e "easibility o" granting t*e loan in consideration o" t*e "inancial *ealt* o" t*e o""ice and t*e "inancial aspects o" t*e rules% Receives and acts as custodian o" t*e citation o" co4lateral% )pproves or re/ects t*e loan application based on t*e advice "rom t*e 9RM and #inance Unit% ;$n t*e case o" applications "rom sta"" o" #inance and 9R UnitsB double c*ecks all stages o" t*e approval process%< )dministers t*e approved loan as per rules%

0% #inancial -ransactions Personal :oans to Sta"" Revised October 200

Policy and Procedure !uidelines "or #inancial Management

Fre-uently $sked 2uestions a(out Financial Management

7iring Consultants
.. (oes t*e selection o" a consultant al+ays need to go t*roug* a Purc*ase
Committee, $" yesB +*ic* Purc*ase Committee, 23ample situation? Recruiting and *iring a consultant "or a tec*nical study%

A. -*e guidelines say you s*ould submit t*e names o" at least ' candidates% -*is is
prevent people "rom Cplaying "avouritesJ and al+ays *iring t*e same consultant% -*e procedure assumes t*at t*e +ork can be per"ormed by suitably 5uali"ied consultants available in t*e local marketB +*ic* is not al+ays t*e case% $n many casesB a manager kno+s +*o t*e best consultant +ould be "or t*e /ob or t*ere are no ot*er suitably 5uali"ied candidates available at t*e time% $n cases like t*isB you can ask "or a C+aiverJB +*ic* can be in t*e "orm o" a memo saying CyesB go a*ead and sole sourceJ% 2ven i" t*ere is only one candidateB it is a good idea to *ave a Purc*ase Committee evaluate t*e best course o" action% $" t*e Purc*ase Committee saysB CyesB you can sole sourceJB it protects a manager "rom any criticism t*at *e may *ave been Cplaying "avouritesJ% -*e .ational Programme O""ice or t*e Provincial Programme O""ice can take t*e Purc*ase Committee in :aos% -*is is recommended "or CambodiaB :aos and -*ailand% Kietnam is encouraged to put re5uests t*roug* K. Purc*ase Committee given t*e previous sensitivities and t*e presence o" a program :iaison O""icer t*at can "acilitate t*e process ;(ang<%

Consulting #ates
.. W*en to apply +eekly rate, W*en to apply mont*ly rate, W*en to apply lump
sum, W*en lump sum is appliedB is some basis o" calculation needed,

A. -*e sc*eme "or a consultant@s rate +ill depend on your reasonable assessment o"
*o+ t*e best +ay to do t*e /ob% Daily rates/ ) daily rate is appropriate i" t*e /ob is s*ort4term and you can accurately estimate *o+ many days t*e /ob +ill take% $" t*e consultant pre"ers or insists on a daily rate "or a long4term /obB you can +rite into t*e contract t*at payment cannot not be over a certain amount "or any one mont*% 0ump sum/ #or long4term /obs +*ere it is di""icult to accurately estimate t*e number o" daysB a lump sum is o"ten t*e best +ay to pay% $" your budget does not *ave 0% #inancial -ransactions #re5uently )sked 6uestions Revised October 200 &

Policy and Procedure !uidelines "or #inancial Management

enoug* money to cover a daily rate contractB t*e consultant +ill *ave to negotiate a lump sum% $" t*e consultant +ill not accept a lump sumB you +ill need to "ind a ne+ consultant% One +ay o" getting around t*is problem is to divide t*e lump sum by t*e consultant@s daily rate and agreeing on t*at number o" days%

"igning Contracts for Consultants

.. W*o signs contract o" international consultants, W*o signs contract o" national
consultants, W*at t*e level o" aut*ority "or contract signing,

A.

-*e $UC. Programme Manager signs all contracts "or international consultants and "or local consultants i" t*e total amount o" t*e contract is over IUS B000%00% -*e .ational Programme Coordinator and t*e Provincial Co4Manager can sign contracts "or up to I B000% $" t*e consultant@s out4o"4pocket e3penses are included in t*e contract and total amount ;consulting "ees plus e3penses< come to more t*an IUS 000%00B t*e contract *as to be signed by t*e $UC. Programme Manager%

Deducting ncome )a* from Consultant=s Payment

.. W*en do $ deduct personal income ta3 "rom a consultant@s payment and *o+
muc*,

A. -*ere is retention o" &0P as +it**olding ta3 at source to be paid by $UC. to t*e
*ost government% -*is is true "or Kietnam and needs to be determined also "or -*ailandB CambodiaB and :aos depending on t*e terms o" t*e MOU o" $UC. +it* t*e *ost government% -*is issue needs more study and more detailed guidelines +ill be issued% $n t*e meantimeN

Purchasing Committee
.. W*at is a Purc*ase CommitteeB *o+ do $ "orm or convene a Purc*ase
CommitteeB and +*o sits on t*e Committee,

A. ) Purc*ase Committee is made up o" t*ree people +*o are supposed to give an
independent and ob/ective opinion on a re5uest "or a *ire or purc*ase% -*e :aos Committee s*ould *ave at least t*ree membersB one "rom t*e countryB anot*er "rom #inance as a CstandingJ or permanent member and a one person "rom t*e Programme Management Unit% -*e Kietnam Purc*ase Committee s*ould comprise t*e Kietnam .ational Programme CoordinatorB a #inance O""icer and an MWBP representative ;(ang or an MWBP sta""<%

.. 9o+ soon s*ould t*e Purc*ase Committee get back to me, A. $" you *ave submitted all t*e documentsB t*e Committee s*ould reply +it*in ' to
+orking days%

.. $" purc*ase committee does not respond promptly causing signi"icant delay o" t*e
+ork ;e%g% missing t*e season<B +*o +ill bear responsibility, 0% #inancial -ransactions #re5uently )sked 6uestions Revised October 200 2

Policy and Procedure !uidelines "or #inancial Management

A. $t depends on t*e cause o" t*e delay% $" you *ave not submitted t*e re5uired
paper+ork or do not promptly submit any additional in"ormation t*e Committee asks "orB t*en you are responsible% 9o+everB as a managerB it is your /ob to ensure t*at purc*ase re5uests are made "ar enoug* in advance to allo+ time "or reasonable delays ;e%g% t*e #inance O""icer is on a tripB t*e PMU representative can@t meet until ne3t WednesdayB etc%<% $" you "eel t*at t*e Purc*ase Committee is unreasonably delayedB you can bring t*e matter to t*e attention o" t*e $UC. Programme Manager or t*e Mekong #inance Manager "or "ollo+4up or resolution%

.. W*at i" $ don@t agree +it* t*e decision o" t*e Purc*ase Committee, A. #irstB ask t*e C*airperson o" t*e Purc*ase Committee ;usually t*e #inance
O""icer< +*y t*e Committee made t*is decision% Maybe t*ey *ad a good reason% $" you are still not satis"iedB t*e C*airperson s*ould consult +it* t*e ot*er members o" t*e Committee and i" you *ave presented a good caseB t*ey can c*ange t*eir decision% 7ou can s*orten up t*is process or avoid t*is "rom *appening by anticipating reasons +*y t*e Committee mig*t not agree +it* your recommendation and providing t*e in"ormation t*ey need be"ore t*ey meet%

Procuring "ervices
.. (o $ *ave to get ' 5uotations "or every case, $n +*ic* cases are ' 5uotations not
necessary,

A. -*e ' 5uotation system is based on t*e principles o" sound "inancial
management% -*e goal o" t*e system is to t*e get t*e best service or e5uipment at t*e best priceB +*ic* is not al+ays t*e lo+est price% )s long as t*ere is a good reason "or .O- getting ' 5uotations you can submit only one 5uotation or a Asole source@% #or e3ampleB t*ere may only be one supplier in your area or you may +ant to develop one supplier "or a particular type o" service suc* as printing%

.. W*o is responsible "or getting ' 5uotations, A. -*is is an $UC. )dmin "unction but could be delegated by t*em to t*e country
#inance and )dmin O""icer% W*ile t*is can be done by t*e #)OB t*e revie+ o" t*e *ost Country )dmin is still re5uired% #or e3ample in K.B Son ;$UC. K. )dmin O""icer< re5uests t*e #)O in PPO to obtain t*e 5uotations "rom 9o C*i Min*% -*ese 5uotations are revie+ed by *im "or eit*er submitting to t*e K. Purc*ase Committee or "or submission to :ao )dmin i" t*e :ao Purc*ase Committee is tasked to do t*e evaluation%

.. W*ere does #inance get 5uotations, A. -*e #inance and )dmin O""ice s*ould get 5uotations "rom t*e most practical
source% (epending on t*e type o" goods or serviceB t*e most practical source mig*t be t*e same to+n or city or it mig*t be 9anoi or Bangkok% -*ings like t*e priceB a"ter4 sales serviceB maintenance and ot*er "actors *ave to be considered%

0% #inancial -ransactions #re5uently )sked 6uestions Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

.. (oes t*e Purc*ase Committee make t*eir decision on t*e basis o" price only, A. -*e lo+est price is not al+ays t*e best price% -*e Purc*ase Committee may
select a supplier +it* a *ig*er price i" t*ere is more bene"it to gain suc* as a"ter4sales service or lengt* o" +arranty%

6% W*at are t*e standards "or receiving 5uotations, Kia post, #a3, 2mail, P*one,
$s company seal re5uired,

)% We s*ould be dealing +it* legitimate suppliersB institutions and individuals +*o

can deliver t*e goods and services% ) "ormal 5uotation s*ould be on in t*e company@s letter*ead% $" you kno+ t*e company t*en usually t*at is all t*at is needed% $" you don@t kno+ t*e company and t*is is t*e "irst time you are dealing +it* t*emB you can ask t*em to send a copy o" t*e company registration certi"icate and use t*eir company seal on t*e 5uotation% #or large purc*asesB suppliers are evaluated be"ore t*ey are accredited to become suppliers o" goods and services% 6uotations can be sent via "a3 or scanned copies but t*e original s*ould "ollo+ in t*e mail or be *and delivered%

Pre!aring Budgets
6% W*o does t*e budgeting, )% Budgeting is a part o" t*e +orkplan preparation processB +*ic* is described in
section 88 o" t*e !uidelines% Overall budgeting is t*e responsibility o" t*e $UC. Programme Management Unit +it* advice "rom t*e U.(P -eam :eader% $n pro/ect o""icesB t*e .ational Programme Coordinators and t*e Provincial Co4Managers s*ould "acilitate t*e budgeting process%

Getting Budget nformation

6% 9o+ do $ get in"ormation or "eedback on t*e di""erence bet+een t*e amount o"
money in my budget and t*e actual amount o" money t*at *as been spent,

)% -*is is important in"ormation t*at managers need "or planning and meeting t*eir
targets% -*e Mekong #inance Manager is +orking on a system t*at +ill make t*is in"ormation available on a +eekly basis% )ll you *ave to do is submit your "inancial reports on time%

Making Payments 6% W*en s*ould $ make payments in cas*, W*en s*ould $ make payments by bank
"rom t*e Provincial Pro/ect O""ice, W*en s*ould payments be made by bank trans"er "rom $UC. Country O""ice,

0% #inancial -ransactions #re5uently )sked 6uestions Revised October 200

Policy and Procedure !uidelines "or #inancial Management

)% Bank trans"ers and c*eck payments are pre"erred over cas* payments because
+it* payments t*roug* a bank t*ere is a better record or Cpaper trailJ "or t*e auditor% W*en large amounts o" money are involvedB payments s*ould be processed "rom $UC. Country O""ices ;in KietnamB $UC. Kietnam Country O""iceD in CambodiaB t*e Cambodia :iaison O""iceD in -*ailandB )RO or :aos #inanceD and in :aosB t*e $UC. :ao Country O""ice% Cas* *andled by .ational Programme O""ices and Provincial Pro/ect O""ices s*ould be limited to payroll and o""ice operations% 2ven t*enB bank trans"er and c*eck payments are pre"erred% $UC. country o""ices +ill make payments to consultants on contract%

6% W*at is t*e lead time "or re5uests "or payments, )% )ssuming t*e documents are in orderB it s*ould take no more t*an ' to
days to process a re5uest "or payment% +orking

6% W*en do $ need to get a receipt "or a payment, )% )ll payments o" any kind re5uire a receipt as proo" o" payment% $" t*e person or
institution receiving t*e payment does not *ave an o""icial receiptB you can make up a letter or "orm titled CReceipt o" PaymentJ and *ave t*em sign%

"!ending /ver Budget

6% 9o+ s*ould t*e budget s*ould be treated, $s it a guide or is it "i3ed and cannot be
c*anged, )re t*ere cases +*en $ can go over my budget,

)% Budgets are a planning tool and are not "i3ed% -*ey are estimates you make
be"ore actual implementation% )t t*e time o" implementationB t*ere may be e3penses t*at you did not identi"y or e3pect or prices *ave c*anged but you *ave to spend t*e money to complete a task% $" you t*ink it is necessary and you can /usti"y t*e c*angeB c*eck +it* t*e Mekong #inance Manager about *o+ to re4allocate "unds or spend more t*an t*e amount budget "or t*at item% -*is kind o" decision is on a case4by4case basis%

)ravel
6% 9o+ do $ arrange contracts or letters con"irming secondment o" partner or
government sta"",

)% -*e responsible government agency or department needs to con"irm a

secondment by issuing a "ormal appointment letter re"erring to -erms o" Re"erence "or t*e secondment position% .ational Programme Coordinators and Provincial Co4 Managers +orking +it* t*eir counterparts need to *ave t*is contract or letter% $n many casesB it *elps to dra"t t*e contract or appointment letter "or t*eir revie+ and approval% $t also *elps to c*eck +it* ot*er o""ices to see +*at t*ey did%

6% )re seconded paid "rom t*e Country O""ice or t*e pro/ect o""ice,
0% #inancial -ransactions #re5uently )sked 6uestions Revised October 200

Policy and Procedure !uidelines "or #inancial Management

)% Payments to seconded sta"" are in accordance +it* agreement +it* t*e seconding
agency% $" t*e instruction is to send payment to t*e seconding agencyB t*en $UC. +ill pay t*roug* a bank trans"er or c*eck% $" payment is made directly to t*e personB it can be done t*roug* a bank or c*eck to t*e seconded sta"" or payment can be made t*roug* t*e pro/ect o""ice%

6% (o $ deduct Personal $ncome -a3 "rom payments to seconded sta"", $" soB +*at
percent,

)% (o not +it**old Personal $ncome -a3 "rom payments to seconded sta"" +*o are
nationals o" ot*er countries "or t*ese types o" allo+ances%

0% #inancial -ransactions #re5uently )sked 6uestions Revised October 200

Policy and Procedure !uidelines "or #inancial Management

$nne*

0% #inancial -ransactions )nne3 Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

D"$ and Per Diem #ates

"+- DI+M -A1+S FO- 0O2+- M+3ON4 (O5N1-I+S 6 Issued !7 J508 !77) Daily -ate 95S (AM:ODIA "hnom "enh i< 9otel rate up to 00%00 and above ;per nig*t< i< 9otel rate bet+een '04'M%00 ;per nig*t< iii< 9otel rate up to 2M%00 and ;belo+ per nig*t< "ro incial (apitals and ;illa#e ;traveling "rom P*nom Pen*< ;illa#es ;traveling "rom P*nom Pen* and provincial capitals< 0AO "D;ientiane i< 9otel rate o" 00%00 and above ;per nig*t< i< 9otel rate bet+een '04'M%00 ;per nig*t< iii< 9otel rate o" 2M%00 and belo+ ;per nig*t< "ro incial (apitals i< :uang Prabang ii< Savannak*etB Q*ammouane and Pakse iii< Ot*er Provincial Capitals and Killages 1<AI0AND :an#kok "ro incial (apitals 20%00 -9B 100 or US( & %00 -9B 100 or US( & %00 -9B 100 or US( & %00 0%00 -9B &'00 or US( ''%00 -9B L00 or US( 2&%00 -9B 00 or US( &'%00 & %00 & %00 &0%00 %00 02%00 2&%00 >2%00 2%00 02%00 & %00 1%00 20%00 >>%00 >%00 0>%00 2>%00 &0%00 20%00 O erni#ht -ate 95S

Districts ;traveling "rom Bangkok and provincial capitals<

;illa#es ;traveling "rom Bangkok and provincial capitals<

0% #inancial -ransactions )nne3 Revised October 200

Policy and Procedure !uidelines "or #inancial Management

"+- DI+M -A1+S FO- 0O2+- M+3ON4 (O5N1-I+S 6 !7 J508 !77) Daily -ate 95S ;I+1NAM <anoi i< 9otel rate o" 10%00 and above ;per nig*t< ii< 9otel rate bet+een 04 M%00 ;per nig*t< 20%00 M&%00 L&%00 >&%00 1&%00 &%00 20%00 &00%00 M0%00 L0%00 >0%00 10%00 O erni#ht -ate 95S

iii< 9otel rate bet+een 0040M%00 ;per nig*t< iv< 9otel rate bet+een '04'M%00 ;per nig*t< v< 9otel rate o" 2M%00 and belo+ ;per nig*t< <o (hi Minh (ity i< 9otel rate o" 10%00 and above ;per nig*t< ii< 9otel rate bet+een 04 M%00 ;per nig*t<

iii< 9otel rate bet+een 0040M%00 ;per nig*t< iv< 9otel rate bet+een '04'M%00 ;per nig*t< v< 9otel rate o" 2M%00 and belo+ ;per nig*t< c< Provincial Capitals i< (anang ii< Ot*er Provincial Capitals d< Killages ;traveling "rom 9anoi89o C*i Min* City and provincial capitals< & %00 &0%00 &0%00

10%00 2>%00 2>%00

0% #inancial -ransactions )nne3 Revised October 200

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Policy and Procedure !uidelines "or #inancial Management

Insert forms here

0% #inancial -ransactions )nne3 Revised October 200