Payments for the Center’s operating and project expenses should be made through the following:
a) Checks
· Payments for goods and services purchased locally
· Payments for subgrants
· Payments to consultants
· Payments for staff advances
· Payments for Petty Cash Replenishments
b) Telegraphic/wire transfers and Bank Debit Advices
· Payments for goods and services purchased from foreign countries
· Payments for staff payroll
c) Electronic payments
· Payments to Government Trust account contributions (SSS, Philhealth, Home Development Mutual Fund)
· Taxes and withholding tax remittances
· Government trust account contributions
· Staff cash advances
· Remuneration of staff
· Replenishment of Petty Cash and Revolving Funds
FAS shall use prenumbered checks from its authorized checking accounts. As much as practicable, payments should be made by checks. When payments are made through telegraphic/wire transfers, bank debit advice or electronic payments, all documents authorizing the bank to transfer the funds and the bank validated transaction form shall be filed to the respective check voucher file.
All checks shall be accounted on a monthly basis and reconciled to the accounting records and bank statement/passbook records. Cleared checks, including voided or cancelled checks, should be accounted and filed in a numerical sequence. Unused and unreleased checks should be kept secured at all times.
When an employee’s personal credit card is used, this creates an advance payment by the employee to be reimbursed later by the Center. The credit card transaction slip, together with the official receipt, shall be attached to the payment request form and shall be submitted immediately to FAS for reimbursement to avoid costly financing charges. The amount to be paid shall be based on the exchange rate used by the credit card company as stated in the credit cardholder’s statement.
All requests for payments, other than cash advances and amounts to be taken from the petty cash fund and revolving funds shall be covered by a duly approved Request for Payment Form (RFP) (see Annex 32). No payment shall be made by FAS without a duly approved RFP.
The approval limits for Request for Payments are as follows:
Division Heads - up to US$2,000
Executive Director / Deputy ED - up to US$50,000
Executive Director co-signed by the Treasurer of the Board of Trustees - over US$50,000 up to US$150,000
Executive Director co-signed by the Treasurer and the President / Chairman of the Board of Trustees - over US$150,000
Recurring operating expenses which are covered by approved contracts such as rentals, utility bills, professional fees, etc. shall be approved by the Head of FAS.
Invoices, Billing Statements, Statements of Accounts received by the Center shall be routed to the respective division for certification that the corresponding services performed or goods received is acceptable and that the amount claimed is in order for payment.
A valid receipt or invoice shall show the following, among others:
· Name of the payee or supplier
· Date of the transaction
· Control number reference
· Quantity and description of the item purchased
· Unit prices and extended totals
· Currency
· Total amount paid net of discounts, if any.
· Duly signed/acknowledged by the cashier or machine validated
There should be no sign of counterfeiting or manipulations in the invoice/billing such as erasures or other unusual markings.
The following documents shall be attached to the RPF before having this signed by the approving parties:
Payments for goods purchased:
· Approved Purchase Order
· Supplier’s Invoice
· Supplier’s Delivery Receipt (duly acknowledged by authorized staff of the Center)
Payments for services:
· Signed Contract or Agreement
· Approved Purchase Order
· Billing Statement or Statement of Account
· Acceptance Memo from Authorized Center staff (as applicable)
Payments for subgrants:
· Signed Agreement
· Billing Statement or Statement of Account
The RFP, together with the supporting documents, is referred to as the RFP package. The RFP package shall be forwarded to FAS team for payment processing.
Payment/release of checks shall be made once each week, every Thursdays. All Request for Payments received up to Tuesday will be processed and paid on Thursday the same week. RFPs received after the Tuesday cutoff will be paid on Thursday of the next week. Exceptions to this rule are payments for expenses of urgent nature.
Due dates shall be anticipated and Request for Payments shall be forwarded to FAS in advance to avoid delay of processing.
The procedures to be applied in the processing for payment of Request for Payments, Request for Cash Advances and Travel Advances are as follows:
1. The Request for Payment package, Request for Cash Advance Form or Travel Advance Form is received by the accounting staff.
2. The Accounting Staff:
· Stamps "Received By", signs-off and dates the document.
· Checks the extensions, calculations and price on the invoice.
· Checks the contract to ensure the invoice conforms to the financial covenants of the contract.
· Ensures that the services performed or goods received are accepted and the request for payment is properly approved.
· Checks the invoice or billing to ensure that it has not been paid previously.
3. The Accounting Staff calls the attention of the requesting staff when exceptions are noted.
4. The accounting staff inputs the information on the invoice into the accounting system debiting the appropriate expenditure account/s and project codes (e.g. professional fees) and crediting the disbursement bank account with the amount of the payment. The accounting staff then generates and prints a Check Voucher (CV) [see Annex 37) and attaches the RFP package, RCA or TA to the CV. The accounting staff signs-off the CV in the "Prepared/Posted By" section of the CV.
Checks can either be prepared internally or through an outsourced automated check writing facility with a local bank.
Checks Prepared Internally
1. The accounting staff prepares a Check for the amount in the CV and attaches the printed check on top of the CV.
When writing the check the following precautions must be taken to ensure that there is no opportunity provided for alterations to be made after the check has been signed:
· When inserting the amount in figures, no space must be left to enable additional figures to be fraudulently inserted.
· The full name of the payee must be stated on the check. No check shall be made payable to "CASH".
· Except for cash advances made by Center’s staff, all checks must be "crossed", "For Deposit to Payee’s Account Only".
· Checks must be used in their numerical sequence.
· Indelible ink must be used in writing checks so that it will be difficult to make any unauthorized alterations after the check has been signed.
· If for some reason a written check is cancelled, the spoiled check must be VOIDED and retained/filed and accounted for.
2. The accounting staff forwards the Check and CV package to the Head of FAS for approval of the CV. The Head of FAS verifies the completeness and validity of all supporting documentation, checks that the accounting staff has performed all the procedures above and ensures the correctness of information indicated in the CV. The Head of FAS ensures that the amount is budgeted and funds are available. If in order, he/she approves the CV by signing the "Reviewed and Approved By" section on the CV.
3. The Check and CV package is routed for signing of checks in accordance with the check signing authority limits discussed in Section 10.1.3. Before signing, the signatories must examine the supporting documentations to ensure the check details are correct and have been authorized.
4. The signed check and PAID supporting documents will be returned to the accounting staff who will arrange for the check to be sent to or picked-up by the supplier and obtaining the corresponding payment Official Receipts.
5. After the Check is made, the CV package and all attached supporting documents shall be cancelled. The cancellation is evidenced by using a rubber stamp imprinted with the word PAID in red ink across the face of the CV, invoice and other documents.
Checks Prepared Through an Outsourced Automated Check Writing Facility
1. Based on the CVs received, the accounting staff prepares a Payment Instruction and schedule of checks to be prepared indicating the following, among others:
· CV reference
· Complete name of payee
· Amount
· Description of amount paid
· Total amount
2. The accounting staff forwards the payment instructions and CV packages to the head of FAS for approval. The head of FAS verifies the completeness and validity of all supporting documentation, checks that the accounting staff has performed the required procedures above and ensures the correctness of information indicated in the CVs to the Payment Instruction. The head of FAS ensures that the amount is budgeted and funds are available. If in order, he/she approves the CVs and payment instruction by signing the "Reviewed and Approved By" section.
3. The Payment Instruction and CV packages are routed for signing of in accordance with the signing authority limits discussed in Section 10.1.3. Before signing, the signatories must examine the supporting documentations to ensure the details are correct and have been authorized.
4. The Payment Instruction and PAID supporting documents will be returned to the accounting staff of finance officer who will send the duly approved Payment Instruction to the Bank for check preparation.
5. The bank releases the check to the supplier and obtains the corresponding payment Official Receipts.
6. On a regular basis, the bank will send the corresponding official receipts to Finance for filing purposes.
7. After the list and instruction is made, the CVs and all attached supporting documents shall be cancelled. The cancellation is evidenced by using a rubber stamp imprinted with the word PAID in red ink across the face of the CV, invoice and other documents.
| 
