[PDF] FINANCIAL MANAGEMENT AND CONTROL MANUAL





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FINANCIAL MANAGEMENT AND CONTROL MANUAL

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FINANCIAL MANAGEMENT AND

CONTROL MANUAL

National Trust for Nature Conservation

Khumaltar, Lalitpur

2019
i | P a g e Management and Control Manual (FMCM), 2019 to maintain greatest level of financial management and control standards for all projects and programmes managed and implemented under NTNC. The FMCM shall be followed by all projects and programmes managed and implemented under NTNC. The manual is in line with the NTNC Act, 1982, NTNC Regulation, 1984 and NTNC Bye-laws, 1996.
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Table of Contents

Chapter 1: Preliminary 1

1. Introduction 1

2. Short Title and Commencement 1

3. Definitions 2

Chapter 2: Preparation, Procedure and Spending of Budget 5

4. Preparation of Budget 5

5. Supplementary Budget 5

6. Procedure for Spending Budget 6

Chapter 3: Accounting Policies 7

7. Significant Accounting Policies 7

8. Revenue Recognition 7

9. Fixed Assets and Depreciation 8

10. Sale or Disposal of Assets 8

11. Auction process 8

12. Investments 10

13. Inventory 10

14. Cash and Cash Equivalents 10

15. Employee Retirement Benefits 10

16. Foreign Currency Transactions 11

17. Taxation 11

Chapter 4: Operating Procedures 12

18. Cash and Bank Transactions 12

19. Opening of Bank Account 12

20. Cash Receipts 12

21. Cash Deposit into bank 13

22. Payment through Cheque 13

23. Petty Cash Management 13

24. Advances Payment 14

1. Procurement Advance 14

2. Travel Advance 14

3. Programme Advances 15

25. Advance Settlement 15

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Chapter 5: Procurement 17

26. Classification of Procurement 17

27. Procurement Unit 17

28. Evaluation Committee 18

29. Procurement Process 19

A. Large Procurement (amount more than NPR 500,000 to NPR 2,000,000-Sealed Quotation (SQ) and above NPR 2,000,000-Bid) 20 B. Small Procurement (amount less than NPR 500,000 but above NPR 100,000) 21

C. Direct Procurement 21

30. Third Party Procurement 22

Chapter 6: Internal Control System 23

31. Accounting System 23

32. Bank Reconciliation Statement 23

33. Cancellation of Cheques 23

34. Stale Cheques 23

35. Disbursement of Fund 24

36. Payments and Disbursements Process 24

37. Documentation Policies: 26

Chapter 7: Verification and Audit 27

38. External Audit 27

39. Internal Audit 27

40. Physical Verification of Assets 27

Chapter 8: Reporting 28

41. Monthly Reporting 28

42. Quarterly and Half Yearly Reporting 28

43. Annual Reporting 29

Chapter 9: Risk Management 30

44. Risk management definition 30

45. Risk Management Framework 30

46. Risk Management Responsibility and Accountability 31

47. Risk Identification and Analysis 34

48. Risk mitigating actions 34

Chapter 10: Financial Mismanagement and Fraud 36

49. Principle 36

50. Financial Disclosure Policy 36

51. Conflict of Interest 36

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52. Whistleblowing Provisions 37

53. Process for reporting suspected fraud 37

54. Content of report 38

55. Investigation procedure and responsibility 38

56. Anti-Money Laundering Policy 39

57. Anti-terrorist funding Policy 40

58. Know Your Client provisions 40

Chapter 11: Management Information System 42

59. Safety of Documents and Records 42

60. Purpose of computer-based information systems procedures 42

61. Accounting software 42

62. Information systems procedures 42

63. Archiving of the Documents and Information 43

Chapter 12: Code of Conduct 44

64. Ethical conduct 44

Appendix: Financial Reporting Formats 45

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