Bhutan Association of Women Entrepreneurs

BAOWE Office, P.O. Box 903, New YDF Building, Phendey Lam, Thimphu, Bhutan.Phone: +975-2-329125; Fax: +975-2329126; Email baowe.bhutan@gmail.com

website: www.baowe.org.

Staff Administrative and Financial Manual

Draft Copy Compiled on 29th November 2013

By Founder & CEO, BAOWE to be Submitted to Board Members for Approval &Endorsement.

Summary of main contents in the Manual

Financial Manual‘Financial Policy’ for following procedures to

keep the accounting system effective, transparent and easily manageable.

Financial Manual Covers the followings aspects :

1. Accounting Principles and Policies Accounting System Accounting Period

Accounting Policies Income Recognition Expenditure Apportionment of Common Costs Bank Charges or Interest Expenses Fixed Assets Depreciation Policy Liabilities

2. Responsibilities of the Finance and Accounts Department and Internal Controls

Accounting Responsibility Financial Activity Locations The Finance and Accounts (F&A) Department Internal Controls Adoption of Internal Control Segregation of Duties and Job Description Level of Authority

3. Accounting Books of Records Accounting Books and Records by BAOWE Office Control Cash Book General Ledger Project wise Cash Book Project wise Ledger Book Daily Petty Cash Statement Receipts / Credit Voucher Payment / Debit Voucher Journal Voucher Cheque Register Salary Register and Salary Sheet Fixed Asset Register

VAT Register Tax Deduction at Source (TDS) Register Advance Register Advance Slip Attendance Register Leave Register Overtime Register Staff Trip and Movement Register Asset Movement Register Inventory Register Log Book Fuel Consumption Register Reporting and correspondence with Register of Civil

Society Organization Authority (CSOA)

Monthly, Quarterly and Year-end Financial Statements including Budget Variance Statements

Financial Reports to Donors including Fund Request, Forecast and other Correspondence

Correspondence with Banks

4. Budget and Budgetary Control Budget Period Classification of Budget Master Budget Core Budget representing income and

expenditure of core activities of the organization Program Budget Budgetary Control

5. Fund Management Sources of Funds Nature of Fund

Restricted Fund Restricted Fund

Investment of Fund Fund Receipts Custody of Fund

6. Banking Operations Opening of Bank Accounts Operation Bank Account Bank Signatories Withdrawal of Petty Cash from Bank Account Deposit of Cash at Bank Receipts of Cheques/Pay Orders/Drafts Bank Credit Advice Bank Debit Advice Bank Statement and Bank Certificate Bank Reconciliation Statement Minimum Limit for Cheques Payment Cheque Recording Register-Counterfoil/Cancellation

/Safety

7. Cash Management Cash Book, Cash Control, Duration of Cash Transaction Closing of Account and Verification of cash Cash Counting and Security Accounting for receipts Receipts of cheque/pay orders/drafts Fund received from local sources Accounting for payment

Vouchersupporting documents

Payment of salary and allowance Deduction of Income Tax at Source Preservation of Financial Documents

8. Advance Purpose Requisitions for Advances Certification and Approval Mode of Payment Disqualification for Advance Adjustment of Advance Defaults in Adjustment Advance Register Report on Advance

9. Travel Travel Advance Mode of Travel Daily Allowance, Accommodation and Perdiem

during field trips Travel Expense Report Reimbursable Costs Time for submission of Travel Expense Report Approval of Travel Expense Report

10. Procurement Procedures Requisition Budget Provision Invitation of Quotation Procurement Committee Comparative Bid Analysis Purchase Order Receipt of Goods Payments Control Procedure Flow Chart of Procurement Procedure

11. Fixed Assets Management Safe keeping of Fixed Assets Custodianship Donated Assets Non-Capitalized Assets Insurance Fixed Asset ID Number and Register Transfer of Fixed Assets Movement of Fixed Assets Physical Verification of Fixed Assets Procedure and Accounting of Disposal of Fixed Assets Writing off of Fixed Assets

12. Financial Reports Internal Financial Report Contents of Financial Statements

Comparative Statements: Budget vs. Actual Amount All supporting Documents

Financial Report to the Donors Final Accounts

13. External Audit and Annual Return Audit Annual Return

Staff Administrative Manual

It is the integral part of contract between permanent employees and BAOWE.

The purposes of the Manual are the follows:

a) To create smooth working relationships so that all staff members can effectively use their abilities and knowledge to serve the goals of organization;

b) To protect and safeguard the rights of any member of the staff;

c) To avoid misunderstanding between the management and the staff.

ADMINISTRATIVE MANUAL COVERS THE FOLLOWINGS ASPECTS :

1. Human Resource Administration Personnel policies and principles Human Resource Department and Human

Resource Planning

2. Recruitment, Selection and Appointment

Recruitment Recruitment Goal Human Resource Planning Authorization Recruitment Strategy Classification of employees Job Description

Selection Selection Procedure Interview record Unsuccessful applicants

Appointment Appointment letter References and certificates Contract Personal Information Job description Re employment of former staff

Probation Probation Period Termination during probation period Performance Evaluation Extension of Probationary Period Confirmation

Personal Files Confidentiality Database Ex-employees

3. Working Hours General Working Hours Attendance

4. Leave Earned Leave Casual Leave Holidays Sick leave Maternity leave Paternity leave Other leave

5. Remuneration and Benefits Salary Bonus Income Tax Increment Other Fringe Benefits ( provident fund, Gratuity etc.)

Contributory Provident Fund

6. Staff Development Policy Induction Training Performance appraisal

7. Change of Status Promotion

Aims of the Promotion Policy Procedure

8. Health and Safety Policy

9. Disciplinary Procedure Purpose Informal meetings (s) Formal disciplinary action

10. Separation/End of Service Resignation Retrenchment Termination Dismissal

11. Leaving Procedure Clearance and Final Settlement Service Certificate

12. Vehicle Administration Use of Vehicle Vehicle Registration / Fitness / Tax Token Insurance Maintenance of Log Book Vehicle Use and Safety Servicing of Vehicles Repairing and Purchase of Spare Parts

13. Filing System Filing System The File Index Confidential File Filing Responsibility File Retention and Records Destruction

14. Office Security Custody and responsibility of opening and closing the

office Working beyond office hours and on holidays Access to the office and various parts thereof Visitor tracking system Fire safety and fire drills Insurance Guidance on working during civil unrest, strikes,

natural disaster etc. Back-up of documents at off-site locations Background check of security guards and other

support staff Prohibition on office employees.

********Thank You********