MEMO

TO: Program Department

From: - Finance Department

Subject: It refers to the notification of financial

procedures that need to be adjusted.
1. Purchase procedures
 Purchase requisition: - Before any purchasing matters are discussed with the
finance department after the purchase requisition is Checked by the finance
department and Authorized by the Executive director, it should be done
following our purchase manual. We inform you that only VAT or TOT invoices
are accepted by the finance department.
 Performa/quotation፡- According to our organization's purchase manual, for
single transactions above 20,000 birrs before VAT or TOT, three proforma
invoices should be collected.
 Vendor’s legal documents (renewed license, registration certificate, TIN
certificate, and VAT certificate)
 Price comparison and approved procurement committee minutes
 Purchase order or contractual agreement
 Credit invoice/cash sales invoice
 Goods Receiving Notes/ service delivery confirmation.
 Invoice and WHT receipt Item purchase above 10,000 Birr before TOT or VAT

2. Advance Request for any fieldwork

 Approved request from authorized line manager with a term of reference
(cross-reference with the settlement document) and Budget line
 Travel Advance (TOR)

3. Advance Settlement
 Approved settlement documents (with original invoice) – Cross reference with
advance issuance
 Field trip report
 Copy of travel TOR/reference number of advance payment document
4. Payment for long-term agreements (goods and services
 Purchase/Service request (cross reference if not original)
 Request for quotation and
 term of reference
 Performa/quotation
 Vendor’s legal documents (renewed license, registration certificate, TIN
certificate, and VAT certificate)
 Price comparison and approved procurement committee minutes
 Purchase order or contractual agreement
 Credit invoice/sales invoice
 payment request
 Goods Receiving Notes/ service delivery confirmation
 Withholding tax receipt and deduction
5. Payment for training
 TOR as per the annex
 Letters from the government/concerned office (if government staff invited)
 Attendance sheet
 Payment sheet
 Training report
 If you pay for trainers deduct withholding tax for a single transaction of 3000
birr
6. Hotel service payment (Single transaction above 3,000
Birr)
 Service Request
 Request for quotation
 Performa/ quotation
 Price comparison and approved procurement committee minutes
 Letters of guarantee
 Vendor’s legal documents (renewed license, registration certificate, TIN
certificate, and VAT certificate)
 Payment request and credit invoice
 Vendor’s invoice and withholding tax receipt
7. Vehicle mileage charge
 Service Request

 Vehicle log sheet copy

 Mileage charge policy per KM Policy

8. Staff Medical Reimbursement

 Any laboratory test prescribed by the doctor with Stamp
 Medical prescription prescribed by the doctor for the purchase of medicine
 VAT or TOT receipt only
 Medical certificate
 Medical balance verified by the Senior Accountant before payment.