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Humanitarian aid resource anddelivery framework
Improving internal controls: the EY guide forhumanitarian aid organizations
2015
Page 2 Humanitarian aid resource and delivery framework
ForewordHumanitarian aid resource and delivery framework
Relief, development and non-governmental organizations do exceptional andinspiring work in the immediate aftermath of disasters and, longer term, inhelping communities to rebuild and local economies to recover.
A major challenge for many of these agencies is managing the influx ofdonations they receive when disaster strikes.
How effectively organizations manage these funds not only affects the people thedonations are meant to help, but also the trust people have in the relief effortsand those leading them. If funds aren’t managed well, it can challenge theperceived value that an organization delivers and may damage the image of theaffected country or community. It can also jeopardize future donations.
To help relief, development and non-governmental agencies manage donationsand operate transparently we publish and distribute this free toolkit. It was firstproduced in 2005 in response to the Indian Ocean tsunami. It provides aframework for humanitarian aid resourcing and contains procedures that canimprove operational efficiency and transparency for any organization tasked withresponding to a disaster.
The guide has been used as the basis for disaster-relief training workshopsacross the globe. We hope it continues to be a valuable resource for reliefagencies as they continue their important work.
Mark A. Weinberger,Global Chairman & CEO
Page 3
Disclaimer and intellectual property clauses
► Please note that the information contained in this document is for reference only. The informationcontained in this document has been prepared solely for the purpose of providing information tointerested parties about establishing proper systems of accountability and internal control within theirorganizations.
► This document is not intended to constitute advice in any particular circumstances. It has beencompiled in good faith by EY, but no representation is made or warranty given (either express orimplied) as to the completeness or accuracy of the information it contains in relationship to yourorganization. You are therefore requested to verify and adjust this information to fit yourorganizational requirements before you act upon it.
► EY gives you no warranty or assurance about the document and neither we nor any of our affiliates,nor any partner, officer agent, employee, or sub-contractor of EY or any of our affiliates, will be liableto you or anyone else for any losses or damages arising in connection with it. As a result, you shouldnot rely on this document in any way, and you use it at your own risk. You should consult your usualEY contact on any specific matter.
► The copyright of the material contained in this document belongs to and remains solely with EY.Your access to it does not imply a license to reproduce and/or distribute this information, and youare not allowed to undertake any such act without the prior approval of EY.
For reference only.
Humanitarian aid resource and delivery framework
Page 4
What is in the guide?
EY developed Improving internal controls: the EY guidefor humanitarian aid organizations to document theoperating processes and procedures applicable to a non-governmental organization (NGO). It also incorporates theinternal controls that are intended to improve theeffectiveness and efficiency of an NGO’s operationalactivities.
Improving internal controls begins with our HumanitarianAid Resource and Delivery Framework, which depicts thethree cycles of aid resource and delivery:
► Receipt — establishing agreements betweendonor(s) and the NGO
► Expenditure — procuring, delivering, disbursing,accounting and reporting of aid delivery
► Requisition — telling the donors what and how muchis needed, as well as acknowledging receipt ofaid given
Within each of the three cycles, Improving internalcontrols is structured as a series of process modulessetting out the various information, document andtransaction flows.
These process modules identify and describe the controlpoints and give “what can go wrong” scenarios todetermine if the internal controls are working.
It is meant to be a reference guide for an NGO about theprocess modules that are relevant to its operations,starting with the core modules common among most:cash receipts, inventory management, purchase, humanresource management, delivery, cash disbursement, pettycash, accounting, reporting, budget preparation andrequisition approval, recipient requisition, andrecipient receipt.
In this way, Improving internal controls becomes aresource to help an NGO overcome one of its keychallenges of aligning the needs of its recipients with theongoing purchase, delivery and receipt of aid. This guidewill also will help to establish levels of accountability andtransparency intended to satisfy donor objectives.
Humanitarian aid resource and delivery framework
Page 5 Humanitarian aid resource and delivery framework
Contents► Core module details
► Expanded module details
► “Pick list”
In the accompanying booklet:► Introduction
► Who is this guide for? How does it fit your NGO?
► Structures and levels of controls within an NGO
► Tailoring Improving internal controls for yourorganization
► Core modules
► Expanded modules
► Glossary of terms
► Frequently asked questions
6
102
160
Page 6
Core Module Details
Humanitarian aid resource and delivery framework
Page 7
Humanitarian Aid Resource and DeliveryFramework — core modules
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Resource Mgmt.
B.08 Delivery
Accounting Reporting(Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requisition Recipient Receipt
Budget Preparationand Requisition
Approval
Funding and Donation Mechanisms
Rec
eipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Expe
nditu
reC
ycle
Petty
Cas
hC
ash
Dis
burs
emen
t
Rea
cqui
sitio
nC
ycle
B.05 Produce/Build
B.04 Purchase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 8
Core modules
Humanitarian aid resource and delivery framework
B.01 Budget preparation and requisition approvalB.01.1 Budget preparationB.01.2 Recipient data maintenanceB.01.3 Additional fund requisitionsB.02 Cash receiptsB.02.1 Bank receiptsB.03 Inventory managementB.03.2 Receipt of goods or servicesB.04 PurchaseB.04.1 Vendor assessmentB.04.2 Direct appointmentB.04.3 TenderB.04.4 ContractsB.04.5 PO managementB.04.6 Vendor database maintenanceB.07 Human resources managementB.07.1 RecruitmentB.07.2 PromotionsB.07.3 TerminationsB.07.4 Resignations
B.07.5 Employee master dataB.07.6 PayrollB.08 DeliveryB.08.1 Delivery schedulingB.08.2 Goods deliveryB.09 Cash disbursementB.09.1 Accounts payableB.09.2 Bank paymentB.10 Petty cashB.10.1 Petty cash and replenishmentB.11 AccountingB.11.1 Journal entriesB.11.2 ReconciliationB.12 ReportingB.12.1 Closing and reportingC.01 Recipient requisitionC.01.1 Recipient requisition of goods or servicesC.02 Recipient receiptC.02.1 Recipient receipt of good or services
Page 9
Budget preparation and requisitionapprovalB.01.1 Budget preparationTo prepare budgets that are accurate, complete and reasonable
To 1 Assess Proposed Budget/Additional Fund Requisition inWorkflow Modeler: A.02.1 Funding and Donation
Mechanisms
To 1 Prepares Budget analysis monthly in Workflow Modeler:B.13 Budget Analysis
from 3 Analyze Survey Results in Workflow Modeler:C.01.2 Recipient Satisfaction Survey
1Disaster data gathering
2Conduct meeting on
information/datagathering
3Budget preparation
4Review and approve
Field Community Staff
Community Relation
Executive Directorand Trustee
Donors
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Humanitarian aid resource and delivery framework
Page 10
Budget preparation and requisitionapprovalB.01.1 Budget preparationTo prepare budgets that are accurate, complete and reasonable
Humanitarian aid resource and delivery framework
Activity:1. Field/community staff gathers preliminary data to assess the recipient’s requirements (R1).2. Field coordinator discusses with the team regarding the information/data gathering process and determines whether
sufficient work has been done as the basis for the budget.3. Field coordinator prepares budget for prospective donors. Proposed budget consists of estimated number of
recipients, description of relief aid, implementation plan and the total project value (R2).4. Executive director and trustee review the completeness and reasonableness of the proposed budget, making sure
that the proposed budget is aligned with the NGO’s objectives, and approve proposed budget for submission toprospective donors.
Function(s) involved:► Field/community staff► Field coordinator► Executive director► Trustee► Donors
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 11
Budget preparation and requisitionapprovalB.01.1 Budget preparationTo prepare budgets that are accurate, complete and reasonable
Humanitarian aid resource and delivery framework
What can go wrong? Key control point checklist
R1 — Data not accurate or incomplete (C1)
R2 — Proposed budget is incomplete andinaccurate (C1, C2)
Performed by field coordinator
C1 — Reviews the completeness and accuracyof needs assessment (R1, R2)
Performed by executive director
C2 — Clearly state/formalize and communicatethe assumptions underlying theproposed budget to related implementingpartners (R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 12
Budget preparation and requisitionapprovalB.01.2 Recipient data maintenanceTo create and update recipient’s number/code and other
To 2 Input the RecipientCode/Number and AnalyzeRequisitions in WorkflowModeler: C.01.1 RecipientRequisitions-Goods/Services
Field Community Staff
Field Coordinator
Recipient
from Recipient code available?in Workflow Modeler: C.01.1
Recipient Requisitions-Goods/Services
1Assess new
applicants based onthe NGO's pre
determined requirements
2Inform Applicants
3Review and ApproveAccepted Applicants
4Input new recipients’Data into the System
PassYes
No
PurchaseRequisition
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 13
Budget preparation and requisitionapprovalB.01.2 Recipient data maintenanceTo create and update recipient’s number/code and other
Humanitarian aid resource and delivery framework
Activity:1. Field/community staff checks new applicants’ data and information for completeness and verify against
predetermined requirements based on the organization’s regulations (i.e., identification card, family card, eligibilitystatement from district supervisor, etc.) (R1, R2).
2. Field/community staff informs recipients that their needs requisition form has not been accepted.3. Field coordinator should review new recipient data, check data for completeness, and make sure that the applicants
satisfy the NGO’s criteria as recipients prior to approval.4. Field/community staff inputs new recipient data that has been approved by field coordinator into the system. The
system will generate new recipient number (R3, R4).Function(s) involved:► Field/community staff► Field coordinator► Recipient
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 14
What can go wrong? Key control point checklist
Budget preparation and requisitionapprovalB.01.2 Recipient data maintenanceTo create and update recipient’s number/code and other
Humanitarian aid resource and delivery framework
R1 — Duplication of recipient data in thesystem (C1)
R2 — Acceptance of ineligible recipients (C1)
R3 — Inaccurate data entry of requisitioninformation (C2)
R4 — Unauthorized entry of requisitioninformation into the system (C3)
Performed by coordinator:
C1 — Verify new and existing recipient data inthe system (R1, R2)
C2 — Verify and authorize entry of requisitioninto the system (R3)
C3 — Access to make changes to data onrecipients in the system is restricted toauthorized NGO staff through use ofpasswords (or physical controls formanual records) (R4)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 15
Budget preparation and requisitionapprovalB.01.3 Additional fund requisitionsTo obtain additional funds from the donors to support ongoing NGO activities
1Prepare AdditionalFund Requisition
Proposal
2Review and Approve
Additional FundRequisition Proposal
To 1 Assess Proposed Budget/Additional FundRequisition in Workflow Modeler: A.02.1Funding and Donation Mechanisms
from Need additional fund?in Workflow Modeler: C.01.1
Recipient Requisitions-Goods/Services
Field Community Staff
Field Coordinator
Executive Directorand Trustee
Prospective Donors
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 16
Budget preparation and requisitionapprovalB.01.3 Additional fund requisitionsTo obtain additional funds from the donors to support ongoing NGO activities
Humanitarian aid resource and delivery framework
Activity:1. Field coordinator prepares a proposal for additional funds requisition when the NGO’s available funds are not
sufficient to cover the costs associated with recipient requisitions received and the NGO’s operating costs. Theproposals should include the number of potential recipients, amount of funds required by the NGO’s communitydevelopment plan and estimated costs for the NGO’s operations (R1, R2, R3).
2. Executive director and trustee:► Review additional fund requisition proposals for completeness and reasonableness► Make sure that proposal accommodate the donor’s objectives► Verify draft proposals by comparing them to budget/organization work plan► Approve the additional fund requisition proposal
Function(s) involved:► Field/community staff► Field coordinator► Executive director► Trustee► Prospective donors
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 17
What can go wrong? Key control point checklist
Budget preparation and requisitionapprovalB.01.3 Additional fund requisitionsTo obtain additional funds from the donors to support ongoing NGO activities
Humanitarian aid resource and delivery framework
R1 — Proposed funds are not enough tocover the recipient’s needs (C1)
R2 — Inadequate information in theproposal (C2)
R3 — Proposed funds are not in line with theNGO’s and donor’s objectives (C1, C2)
Performed by executive director
C1 — Review and approve the proposal forcompleteness and accuracy (R1, R3)
C2 — Review NGO’s and donor’s objectivesand requirements (if any) (R2, R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 18
Cash receipts
B.02.1 Bank receiptsTo record bank account receipts properly in the organization’s books
2Print Credit Notes
3Record Bank
Receipts
To 12 in Workflow Modeler: B.11.1 Journal Entry
from Cash or Goods in Workflow Modeler: A.02.1Funding and Donation Mechanisms
Donors
Bank
Finance Staff
Finance and AdministrationManager
from 5 Dispose/sell the fixed assets in WorkflowModeler: B.06.4 Fixed Assets Disposal
1Fund transfers
4Review and
Approve BankReceipt Vouchers
TransferSlip
Credit Note
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 19
Cash receipts
B.02.1 Bank receiptsTo record bank account receipts properly in the organization’s books
Humanitarian aid resource and delivery framework
Activity:1. Donor transfers funds to the NGO’s bank account and sends proof of transfer slip to the NGO.2. Bank sends credit notes for all funds transferred into the NGO’s bank account.3. Finance staff:
► Reviews bank receipts and other supporting documents for completeness► Records bank receipts into the system and print-out cash/bank receipt vouchers (R1, R2, R3).
4. Finance and administration manager reviews and approves bank receipt vouchers before entry into the system.Function(s) involved:► Donors► Bank► Finance staff► Finance and administration manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 20
What can go wrong? Key control point checklist
Cash receipts
B.02.1 Bank receiptsTo record bank account receipts properly in the organization’s books
Humanitarian aid resource and delivery framework
R1 — Not recorded on a timely basis(C1, C2, C4)
R2 — Incorrect amount recorded (C1)
R3 — Entry by unauthorized personnel (C3)
Performed by finance andadministration manager:
C1 — Verify and approve bank receiptvouchers (R1, R2)
C2 — Reconcile bank statements and theNGO’s books on a monthly basis (R1)
C3 — Verify and authorize entry of bankreceipts into the system (R3)
C4 — Donor receipts should be into bankaccounts held in the name of the NGOand dedicated to activities of theNGO (R1)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 21
Inventory management
B.03.2 Receipt of goods or servicesTo perform the receipt of goods/services from donors and/or vendors according to NGO’s policies and procedures and inan efficient manner
1Receive
purchased/donatedGoods/Servicesand sign DeliveryOrders (DOs) as
well as TransferredFixed Assets
from Cash or Goods in Workflow Modeler:A.02.1 Funding and Donation Mechanism
Donors
Inventory (Warehouse)Staff
Accounting Staff
Inventory And DistributionManager
From 6 Send POs and Follow upoutstanding PO in Workflow Modeler: B.04.6
PO Management
Vendor/Supplier
To 1 Obtain data input in WorkflowModeler: B.11.1 Journal Entry
To 5 in Workflow Modeler: B.03.5Inventory Monitoring
To 11 in WorkflowModeler: B.09.1Accounts Payable
Donatedgoods?
7Verify and approve
data on Goods/Services enteredinto the system
6Input Data of
Acceptedand Rejected
Goods/Services
5Send Rejection
Letterto Vendor (including
returned goods)
Rejection Letter and Returned Goods/Material
4Review and
ApproveReceiving Report or
Rejection Letters
3Prepare RejectionLetters (includingreturned Goods)
2Prepare Receiving
Reports
Accept?
No
Yes
No
Yes
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 22
Inventory management
B.03.2 Receipt of goods or servicesTo perform the receipt of goods/services from donors and/or vendors according to NGO’s policies and procedures and inan efficient manner
Humanitarian aid resource and delivery framework
Activity:1. Inventory (warehouse) staff receive goods/services with delivery order from vendors/donors, performs physical and
quality check, and count of goods received and observe services to ascertain goods/services received correspond tothe purchase orders (POs)/pledges. In addition, inventory (warehouse) staff also receives transferred fixed assets(R1, R2).
2. Inventory (warehouse) staff prepares pre-numbered receiving reports for accepted goods/services (R3, R4).3. Inventory (warehouse) staff prepares rejection letters for rejected goods/services (R5, R6).4. Inventory and distribution manager reviews and approves receiving reports or rejection letters for goods and services
accepted or rejected.5. Inventory (warehouse) staff sends the rejection letters and returned goods to vendors.6. Inventory (warehouse) staff enters data on accepted and rejected goods/services into the system based on receiving
reports and rejection letters. Information entered into system may include (R7):► Received date► Type of goods/services► Quantity of goods/services► Name of inventory (warehouse) staff who received the goods/services► PO numbers: received date
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 23
Inventory management
B.03.2 Receipt of goods or servicesTo perform the receipt of goods/services from donors and/or vendors according to NGO’s policies and procedures and inan efficient manner
Humanitarian aid resource and delivery framework
Activity:7. Inventory and distribution manager verifies summary of data input, receiving report and rejection letter. For
purchased goods, sends receiving report to accounting staff for accounts payable entry.
Function(s) involved:► Donors► Vendor/supplier► Inventory (warehouse) staff► Inventory and distribution manager► Accounting staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 24
What can go wrong? Key control point checklist
Inventory management
B.03.2 Receipt of goods or servicesTo perform the receipt of goods/services from donors and/or vendors according to NGO’s policies and procedures and inan efficient manner
Humanitarian aid resource and delivery framework
R1 — Received goods/services do notcorrespond with order specifications/pledgeletters (C1)
R2 — Goods received are not recorded(C1, C2)
R3 — Incorrect information in receivingreports (C3)
R4 — Receiving report are prepared for rejectedgoods/services (C3)
R5 — Incorrect information in therejection letters (C4)
R6 — Rejection letters are sent for acceptedgoods/services (C4)
R7 — Incorrect data entry (i.e., quantity of goods,type of material, type of service, etc.) (C5)
Performed by inventory and distribution manager
C1 — Match receiving reports with the deliveryorders, POs or pledge letters (R1, R2)
C2 — Accounting for numerical sequence ofreceiving reports (R2)
C3 — Review receiving reports and check thatrejected goods/services are excluded(R3, R4)
C4 — Review and compare rejection letterswith receiving reports and POs fromsuppliers (R5, R6)
C5 — Review and approve summary ofgoods/services data entry (R7)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 25
Purchase
B.04.1 Vendor assessmentTo evaluate vendors’ qualification and capabilities effectively, and prepare a list of the most qualified vendors based on anevaluation of vendor capability and reliability
2Perform Vendor
Assessment
To 1 Review approved vendor listin Workflow Modeler: B.04.3Direct Appointment
To 2 Update information changes invendor database in Workflow Modeler:B.04.1 Vendor Database Maintenance
Procurement Staff
Procurement Manager
Coordinator
from 8 PR approval process (depending on internal policyfor Level of Authorization) in Workflow Modeler: B.06.1
Fixed Assets Requisition
1Obtain and input
vendor data into thesystem
No
3Approve Vendor
Assessment
Approvedvendors?
Yes
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 26
Purchase
B.04.1 Vendor assessmentTo evaluate vendors’ qualification and capabilities effectively, and prepare a list of the most qualified vendors based on anevaluation of vendor capability and reliability
Humanitarian aid resource and delivery framework
Activity:1. Prepare a list of documents required from vendors and inform vendors (including contractors and consultants) to
submit their most recent data to be considered in the NGO’s approved list. Prequalification documents may include(R1, R2):► Certificates from professional associations► Tax documentation including taxpayer code number (NPWP) and evidence of tax payment in the past years► Financial documentation such as the most recent audited balance sheets and/or other financial reports (income statements and
statements of cash flows)► Legal requirements such as a statement stating that the vendor does not have any legal obligation and
is not under the court’s surveillance or in bankruptcy process► References from previous clients
Vendor data should be entered into the system.2. Procurement manager performs vendor assessment and prepares vendor assessment report. Vendor assessment
report includes information on:► Quality of material/services sold► Delivery of material/services► Price competitiveness► Historical performance
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 27
Purchase
B.04.1 Vendor assessmentTo evaluate vendors’ qualification and capabilities effectively, and prepare a list of the most qualified vendors based on anevaluation of vendor capability and reliability
Humanitarian aid resource and delivery framework
Activity:Procurement manager compares the result of vendor assessment against the NGO’s policies for vendor selection, whichmay include policies on (R3, R4, R5):► Complying with requirements► Product quality assurance► Product delivery
3. Coordinator reviews and approves vendor assessment reports, and assesses and categorizes vendors into differentratings based on their administrative, technical, financial and support capabilities.
Function(s) involved:► Procurement staff► Procurement manager► Coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 28
What can go wrong? Key control point checklist
Purchase
B.04.1 Vendor assessmentTo evaluate vendors’ qualification and capabilities effectively, and prepare a list of the most qualified vendors based on anevaluation of vendor capability and reliability
Humanitarian aid resource and delivery framework
R1 — Unauthorized vendor data entry to thesystem (C1)
R2 — Incorrect data entry: vendor name,goods/services offered (C1)
R3 — Incomplete vendor assessment (C2, C3)
R4 — Incorrect result of vendor assessment(C2, C3)
R5 — Subjective vendor assessment (C2, C4)
Performed by coordinator
C1 — Supervise and verify supportingdocuments with the entry (R1, R2)
Performed by coordinator
C2 — Supervise vendor assessment process(R3, R4, R5)
C3 — Verify vendor assessment resultsagainst documents received fromvendor (R3, R4)
C4 — Confirm vendor referencesperiodically (R5)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 29
Purchase
B.04.2 Direct appointmentTo provide procedures for directly appointing vendor(s) to procure goods/services
Field Coordinator
Procurement Manager
Coordinator
1Review approved
vendor list
To 10 in Workflow Modeler:B.04.5 Contracts
Requirecontract?
6Review and
approvethe final vendor
5Discuss and
negotiate price,lead time,
guarantee andother terms
from Direct Appointment/Tender? inWorkflow Modeler: C.01.1 Recipient
Requisitions-Goods/Services
4Request
quotationsfrom selected
vendor(s)
No
Yes
from 4 in WorkflowModeler: B.04.2Vendor Assessment
2Select vendor(s)based on desiredquality and price
To 15 in Workflow Modeler:B.04.6 PO Management
To 2 Update information changesin vendor database in WorkflowModeler: B.04.1 Vendor DatabaseMaintenance
Approve?
3Approve selected
vendor(s) for directappointment
Approved?No Yes
Yes
No
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 30
Purchase
B.04.2 Direct appointmentTo provide procedures for directly appointing vendor(s) to procure goods/services
Humanitarian aid resource and delivery framework
Activity:1. Procurement manager reviews approved vendor list and ranks vendors based on the procurement requirements and
each vendor’s performance rating.2. Procurement manager selects vendor(s) based on the appropriate quality and price offered (R1).3. Coordinator approves the vendor(s) selected by the procurement manager for direct appointment.4. Procurement manager requests quotations from the selected vendor(s).5. Based on the quotations received from the selected vendor(s), procurement manager discusses and negotiates
price, lead time, guarantee and other terms before proposing final vendor to coordinator (R2, R3).6. Based on the proposed vendor received from the procurement manager, coordinator issues an approval for a
final vendor.Function(s) involved:► Field coordinator► Procurement manager► Coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 31
What can go wrong? Key control point checklist
Purchase
B.04.2 Direct appointmentTo provide procedures for directly appointing vendor(s) to procure goods/services
Humanitarian aid resource and delivery framework
R1 — Vendor(s) are selected based on wronginformation, i.e. wrong performancerating (C1)
R2 — Negotiated price is higher thanbudget (C2)
R3 — Negotiated price is higher thanmarket rate (C3)
Performed by coordinator
C1 — Verify the selected vendor informationagainst the vendor’s performance ratingin the system (R1)
C2 — Verify negotiated price against approvedbudget (R2)
Performed by procurement manager
C3 — Conduct market comparisonon price (R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 32
Purchase
Humanitarian aid resource and delivery framework
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
To 10 in WorkflowModeler: B.04.5Contracts
from Direct Appointment/Tender?in Workflow Modeler: C.01.1
Recipient Requisitions-Goods/Services
Tender committee
Procurement Manager
Coordinator
Executive Director
Field coordinator
9Review and
approvethe tender
result
8PrepareTenderReports
7Performtender
process
6Register
and screentender
participants
5Announce
tender
4Preparetender
documents
1Receive
informationto perform
tender
2Form aTender
Committee
3ApproveTender
Committee
Approved?Yes
No
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 33
Purchase
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
Humanitarian aid resource and delivery framework
Activity:1. Procurement manager receives information to select a supplier through a tender process.2. Coordinator forms a Tender Committee. Members of a Tender Committee should consist of representatives from
procurement, field coordinator, finance and administration departments and from thecoordinator (R1).
3. Executive director approves the members of the Tender Committee.4. Tender Committee prepares tender documents. The tender documents must be prepared in such a way that
prospective suppliers of goods/services can easily understand them. These documents mayinclude (R2, R3):► Letter of invitation to tender► Prequalification guidance► Instruction to tender participants► Bill of quantities► Technical specification and pictures (if any)► Terms of reference (TOR)► Contract templates► Owner estimates/self-estimated prices
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 34
Purchase
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
Humanitarian aid resource and delivery framework
Activity:5. The Tender Committee announces open tender on printed media, official announcement boards and, if possible,
through electronic media (R4).Tender announcement should contain at least the following information:► Name and address of the organizations that are invited to tender► Brief explanation of the scope of work to be carried out► Required information from tender participants► Place, date and time for tender registration
6. All tender participants must be registered, and the Tender Committee screens the participants based onqualifications. A list of the prospective participants is prepared and includes those participants who have passed thescreening process. These participants are then invited to submit the required tenderdocuments (R5, R6).
7. Tender Committee should perform tender process. Participants should be provided with sufficient information on howthe tender process will be performed. This information may include (R7, R8, R9, R10, R11):► Method of organizing the tender► Method of bid submission► Bid submission deadline► Documents required for bid submission► How a participant can be disqualified from the tender► Contract templates► Bid evaluation method and guidance
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 35
Purchase
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
Humanitarian aid resource and delivery framework
Activity:8. Tender Committee prepares a tender report that includes the result of tender evaluation. The report contains the
tender result and method of evaluation (R12, R13).9. Tender Committee reviews and approves the tender result based on the report and announces the winner.Function(s) involved:► Tender Committee► Field coordinator► Procurement manager► Coordinator► Executive director
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 36
What can go wrong? Key control point checklist
Purchase
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
Humanitarian aid resource and delivery framework
R1 — Tender Committee members do nothave appropriate and relevantskills (C1)
R2 — Tender documents are preparedincorrectly (C2)
R3 — The content of tender documents isincomplete (C2)
R4 — Error in tender announcement (C3)
R5 — Registration data is incomplete (C4)
R6 — Errors in registration data (C4)
R7 — Participants involved in the tenderprocess are not qualified (C5)
Performed by coordinator
C1 — Review of relevant skills of TenderCommittee members (R1)
Performed by chairman of Tender Committee
C2 — Review list of tender documents andthe content of tender documentsreceived (R2, R3)
C3 — Review tender announcement prior topublishing it (R4)
C4 — Validate the registration data and thesupporting documents of tenderparticipants (R5, R6)
C5 — Verify the tender participants with a listof participants who have passed thetender evaluation (R7)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 37
What can go wrong? Key control point checklist
Purchase
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
Humanitarian aid resource and delivery framework
R8 — Proposals are received later than thebid submission dateline (C6)
R9 — Proposals are not evaluated based onthe predetermined bid evaluationmethod and guidance (C7, C8)
R10 — The tender process is not objective andnot transparent (C9)
R11 — Members of the Tender Committeehave a conflict of interest due toassociation with tenderparticipants (C10)
Performed by coordinator
C6 — Review the date proposal received andletter of acceptance of proposal (R8)
Performed by chairman of Tender Committee
C7 — Verify the proposal evaluation againstthe predetermined bid evaluationmethod and guidance and theallocated budget (R9)
C8 — Sign-off letter of acceptance forproposal evaluation (R9)
C9 — Maintain objectivity and transparencyin the tender process (R10)
C10 — Members of Tender Committee arerequired to disclose any conflict ofinterest they may have with the tenderparticipants (R10, R11)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 38
What can go wrong? Key control point checklist
Purchase
B.04.3 TenderTo select the most suitable vendor from the different vendors who participate in the bidding process to provide therequired goods/services
Humanitarian aid resource and delivery framework
R12 — The Tender Repot is not accurate(C10, C11)
R13 — The proposed winner is not the mostqualified tender participant (C12)
Performed by chairman of Tender Committee
C10 — Members of Tender Committee arerequired to disclose any conflict ofinterest they may have with the tenderparticipants (R10, R11)
C11 — Verify tender report with theprocurement documents and approvethe result (R12)
C12 — Validate supporting documents oftender process (R12)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 39
Purchase
B.04.4 ContractsTo develop a formal and legal written agreement with vendors in delivering goods/services based on agreed-upon timeframe, cost and performance criteria
Humanitarian aid resource and delivery framework
To 1 form a Project Committee in WorkflowModeler: B.05.1 Planning and Scheduling
from Require contract? in Workflow Modeler: B.04.3Direct Appointment
Procurement Manager
Field Coordinator
Procurement Staff
Coordinator
from 9 Review and approve the tender result inWorkflow Modeler: B.04.4
1Prepare/
revisecontracts
No
from 4 Approve change request proposal in WorkflowModeler: B.05.4 Project
from 2 Ask vendor to fix the project in order to complywith the contract in Workflow Modeler: B.05.5
Project Acceptance/Delivery
To 15 in Workflow Modeler: B.04.6PO Management
2Review
contracts(legal
aspects)
3Review price,
quality anddelivery and
approvecontracts
4Input contractin formation
in to thesystem
5Submit signed
contracts tovendors
Accepted?
Approved?Yes
No
Yes
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 40
Purchase
B.04.4 ContractsTo develop a formal and legal written agreement with vendors in delivering goods/services based on agreed-upon timeframe, cost and performance criteria
Humanitarian aid resource and delivery framework
Activity:1. Procurement manager prepares/revises contracts based on standardized templates. The procurement manager also
obtains legal inputs, standard framework agreement from legal department and other relevant information from users.Contracts should include (R1, R2, R3):► Terms and conditions► Rights and obligations of both parties► Contract amounts
2. Field coordinator reviews contracts (terms and conditions, rights and obligations, and legal inputs) and providesnecessary inputs to procurement manager.
3. Coordinator reviews price, quality and delivery and approves final contracts before submitting contracts to vendors.4. Procurement staff inputs contract information into the system that may include the following (R4, R5):
► Contract numbers► Contract amounts► Terms and conditions► Scope of work► Time frame
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 41
Purchase
B.04.4 ContractsTo develop a formal and legal written agreement with vendors in delivering goods/services based on agreed-upon timeframe, cost and performance criteria
Humanitarian aid resource and delivery framework
Activity:5. Once a selected vendor signs a contract or an agreement, the contract should be signed by the coordinator/executive
director in accordance with the NGO’s Articles of Association. Finance and administration manager maintains theoriginal contract documents.
Function(s) involved:► Procurement manager► Field coordinator► Procurement staff► Coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 42
What can go wrong? Key control point checklist
Purchase
B.04.4 ContractsTo develop a formal and legal written agreement with vendors in delivering goods/services based on agreed-upon timeframe, cost and performance criteria
Humanitarian aid resource and delivery framework
R1 — Monetary amount in the contract isdifferent from the agreed-uponprice (C1, C3)
R2 — Contract is not aligned with approvedbudget (C2)
R3 — Incomplete terms and conditions, rightsand obligations, and legal inputs in thecontract (C3, C4)
R4 — Entry by unauthorized person (C5)
R5 — Data entry error (C5)
Performed by finance and administration manager
C1 — Verify the contract amount withsupporting documents (R1)
C2 — Verify the amount of contract withbudget (R2)
Performed by field coordinator
C3 — Verify contract with the terms andconditions, rights and obligations, andlegal aspects (R1, R3)
Performed by coordinator/executive director
C4 — Review and approve contract with theterms and conditions and rights andobligations (R3)
Performed by procurement manager
C5 — Review and approve contract supportingdocuments with the entry (R4, R5)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 43
Purchase
B.04.5 PO managementTo prepare purchase orders (POs) as the basis for ordering goods/services from vendors
from 4 Review reportagainst the system inWorkflow Modeler: B.03.1Inventory Planning
from Repeated Order?in Workflow Modeler: C.01.1
Recipient Requisitions-Goods/Services
Procurement Manager
Procurement Staff
Vendor/Supplier
from 5 Submit signed contracts to vendorsin Workflow Modeler: B.04.5 Contracts
3Review and
authorizePO
from Require contract? in WorkflowModeler: B.04.3 Direct Appointment
To 22 in Workflow Modeler: B.03.2Receipt of Goods or Services
1Review
incomingPR
(PurchaseRequisition)
2Generate
POs(Purchase
Orders)
4Print POs
5Review andsign POs
6Send POsand follow
upoutstanding
PO
List ofOutstanding
PO
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 44
Purchase
B.04.5 PO managementTo prepare purchase orders (POs) as the basis for ordering goods/services from vendors
Humanitarian aid resource and delivery framework
Activity:1. Procurement staff reviews incoming purchase requisitions (PRs) by system on a daily basis. Received PRs are
tracked and recorded for monitoring purposes.2. Procurement staff generates POs that should contain (R1, R2):
► PO number (consecutive number generated by the system)► Contract number► Vendor’s name and address► Description of items ordered (brand and general descriptions, including clearly defined unit of measurement and specifications)► Quantity to be ordered► Unit price► Total price► Discount (if any)► Delivery date► Payment terms and conditions
3. Procurement manager reviews the accuracy of POs and makes sure that goods and services ordered, as well as thedelivery time, match with user’s requirements. POs are revised when there are inconsistencies between PRs and therelevant POs; if none, procurement manager will authorize POs to be printed.
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 45
Purchase
B.04.5 PO managementTo prepare purchase orders (POs) as the basis for ordering goods/services from vendors
Humanitarian aid resource and delivery framework
Activity:4. Procurement staff print POs from the system and sends them to procurement manager for signature (R3).5. Procurement manager reviews and signs POs. Any POs over an internal policy threshold amount
(e.g., US$5,000) require an additional signature from someone with a higher level of authority.6. Procurement staff sends newly approved POs to vendors and follows up on the list of outstanding POs received from
the inventory and distribution department.Function(s) involved:► Procurement manager► Procurement staff► Vendor/supplier
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 46
What can go wrong? Key control point checklist
Purchase
B.04.5 PO managementTo prepare purchase orders (POs) as the basis for ordering goods/services from vendors
Humanitarian aid resource and delivery framework
R1 — Editing and release of POs areperformed by unauthorized user(C1, C3)
R2 — Inaccurate and/or incomplete informationin POs (C2, C3)
R3 — Incorrect PO printed for vendor (C4)
Performed by procurement manager
C1 — Verify authorized PO against PR (R1)
C2 — Clarify and validate the negotiated pricesand/or volumes in POs (R2)
C3 — All POs approved by an authorizedperson (R1, R2)
C4 — Verify PO printout with PR and/orcontract (R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 47
Purchase
B.04.6 Vendor database maintenanceTo maintain and update vendor database
Vendor/Supplier
Procurement Staff
Procurement Manager
2Update informationchanges in vendor
database
1Inform NGO of anychanges to vendor
information
3Validate updatedvendor database
from 7 in Workflow Modeler: B.04.3Direct Appointment
from 4 in Workflow Modeler: B.04.2Vendor Assessment
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 48
Purchase
B.04.6 Vendor database maintenanceTo maintain and update vendor database
Humanitarian aid resource and delivery framework
Activity:1. Vendors should inform NGO of any changes to vendor details, such as:
► Addresses► Telephone numbers► Contact persons► Bank account number
Vendors must submit information changes to procurement department by letter/fax.2. Procurement staff updates vendor database based on letter/fax received from vendors (R1, R2).3. Procurement manager should validate updated vendor database. On a random basis, the procurement manager
should confirm changes directly to vendors.Function(s) involved:► Vendor/supplier► Procurement staff► Procurement manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 49
What can go wrong? Key control point checklist
Purchase
B.04.6 Vendor database maintenanceTo maintain and update vendor database
Humanitarian aid resource and delivery framework
R1 — Unauthorized vendor data entry in thesystem (C1, C2)
R2 — Incorrect data entry: vendor name,goods/services offered (C1)
Performed by procurement manager
C1 — Review and validate the changes ofvendor database in the system (R1, R2)
C2 — Restrict access to make changes tovendor database in the system toauthorized NGO staff through use ofpasswords (or physical controls formanual records) (R1)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 50
Human resources
B.07.1 RecruitmentTo meet the organization’s human resources requirements and to make sure that recruited individuals are qualified to fulfillthe job requirements
User
Finance andAdministrationManager
Coordinator/Executive Director
2Review RecruitmentRequisition Forms
1Fill out RecruitmentRequisition Forms
To 8 in Workflow Modeler:B.07.5 Employee Master Data
GA Staff
ApproveRRF?
4Select candidates for
testing andinterviewing
3Search for new
employee
AcceptCandidate?
Yes
No
No
Yes
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 51
Human resources
B.07.1 RecruitmentTo meet the organization’s human resources requirements and to make sure that recruited individuals are qualified to fulfillthe job requirements
Humanitarian aid resource and delivery framework
Activity:1. Requests for new hires come directly from managers by submitting a recruitment requisition form (RRF) to the finance
and administration manager, who will review the form. RRFs should indicate whether the employees are to be hired ona permanent or on a contract basis. If the position is for a level below managerial level, then the RRF needs to beapproved by the coordinator. If it is for a managerial position or higher, then the RRF must be approved by theexecutive director.
2. Finance and administration manager collects and reviews RRFs for completeness.3. Once RRF has been approved, the GA staff begins searching for candidates suitable for the position.4. GA staff selects candidates from the applications received based on the organization and user
requirements (R1, R2).Function(s) involved:► Users► Finance and administration manager► Coordinator/executive director► GA staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 52
What can go wrong? Key control point checklist
Human resources management
B.07.1 RecruitmentTo meet the organization’s human resources requirements and to make sure that recruited individuals are qualified to fulfillthe job requirements
Humanitarian aid resource and delivery framework
R1 — Candidates selected are not qualified forthe position (C1, C2)
R2 — Nepotism (C1, C2)
Performed by finance and administration manager
C1 — Candidates are required to submitreference letters that indicate theirrelevant experiences (R1, R2)
C2 — Users are involved directly in theinterviewing and selecting process(R1, R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 53
Human resources management
B.07.2 PromotionsTo make sure that promotion process meets the applicable procedures and that all master and payroll data are updated
Manager/Coordinator
Finance andAdministrationManager
Executive Director
2Assess and
approveperformanceevaluations
1Propose forpromotion
To 8 in Workflow Modeler:B.07.5 Employee Master Data
GA Staff
Promote?
5Inform promotedemployee andother relevantdepartments
3Propose SalaryAdjustment for
promotedemployees
No
Yes4
Review andApprove
Promotions
Approvepromotion?
Yes
No
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 54
Human resources management
B.07.2 PromotionsTo make sure that promotion process meets the applicable procedures and that all master and payroll data are updated
Humanitarian aid resource and delivery framework
Activity:1. Employees’ performance are evaluated by their direct supervisors. Based on good performance, direct supervisors
propose for the employees to be promoted (R1).2. Finance and administration manager assesses and approves promotions based on feedback/evaluations received on
staff performance (R2).3. Once the finance and administration manager decides to promote an employee, he/she then will propose salary
adjustment based on grading level and prepare a promotion letter (R3, R4).4. Executive director reviews and approves promotions for manager and above positions.5. Finance and administration manager informs promoted employees and GA staff of the promotion so employee master
data and payroll data can be updated.Function(s) involved:► Manager/coordinator► Finance and administration manager► Executive director► GA staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 55
What can go wrong? Key control point checklist
Human resources management
B.07.2 PromotionsTo make sure that promotion process meets the applicable procedures and that all master and payroll data are updated
Humanitarian aid resource and delivery framework
R1 — Not objective promotion (C1)
R2 — Incorrect assessment on staffperformance (C2)
R3 — Inaccurate grading level (C3)
R4 — Unfair pay adjustment (C3)
Performed by finance and administration manager
C1 — Gather evaluations/feedback from othermanagers on the staff performance (R1)
Performed by organization level
C2 — NGO needs to have a set of criteria thatmust be met before promotion isgranted (R2)
Performed by executive director
C3 — Review and approve salary adjustments(R3, R4)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 56
Human resources management
B.07.3 TerminationsTo make sure that employee terminations are done fairly and according to the organization’s policies and relevant laborlaws and regulations
Finance andAdministrationManager
Related Employee
1Prepare Notice for
Termination
To 8 in Workflow Modeler:B.07.5 Employee Master Data
GA Staff
4File Clearance Sheet
2Meeting with theemployee to be
terminated
3DischargeProcess
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 57
Human resources management
B.07.3 TerminationsTo make sure that employee terminations are done fairly and according to the organization’s policies and relevant laborlaws and regulations
Humanitarian aid resource and delivery framework
Activity:1. Finance and administration manager receives notice for employee termination, which may come from two sources: (1)
employee’s direct supervisor because the employee does not perform or because of the end of the employee’scontract; (2) executive director because of the organization’s downsizing plan.
2. Finance and administration manager meets with the employee to be terminated, providing the reasons for terminationand informing of other termination procedures (R1).
3. Once an employee has been terminated, the employee will have to complete several activities prior to leaving theorganization. These activities include returning all organization assets (i.e., computers, files, mobile phones), filling outclearance sheet and participating in exit interview (R2).
4. Finance and administration manager fills out the completed clearance sheet and prepare a reference letter, ifnecessary.
Function(s) involved:► Finance and administration manager► Related employee► GA staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 58
What can go wrong? Key control point checklist
Human resources management
B.07.3 TerminationsTo make sure that employee terminations are done fairly and according to the organization’s policies and relevant laborlaws and regulations
Humanitarian aid resource and delivery framework
R1 — Employee may take legal action if notgiven the benefit he/she is entitled to attermination (C1)
R2 — Employee still has access into theorganization’s database (C2)
Performed by finance and administration manager
C1 — Check the relevant labor laws and otherbenefit entitlement (R1)
Performed by GA staff
C2 — Make sure that all organization assetsare returned and that the terminatedemployee’s access into the system iscancelled (R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 59
Human resources management
B.07.4 ResignationsTo make sure that the resignation process is performed according to organization policies and other related regulations
Humanitarian aid resource and delivery framework
Related Employee
Direct Supervisor
Finance and AdministrationManager
2Review
Resignation Letters
1Prepare
Resignation Letter
To 8 in Workflow Modeler: B.07.5Employee Master Data
GA Staff
4Fill out Clearance Sheet
3Exit Interview
5File Clearance Sheetsand prepare Reference
Letters
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 60
Human resources management
B.07.4 ResignationsTo make sure that the resignation process is performed according to organization policies and other related regulations
Humanitarian aid resource and delivery framework
Activity:1. Resigning employees submit resignation letters, at least one month prior to their resignation date, to their direct
supervisors.2. Supervisors review and discuss resignation letters with the resigning employees.3. Finance and administration manager meets with the resigning employee in an exit interview.4. Resigning employees fill out clearance sheets to make sure that they return all organization assets (R1, R2).5. Finance and administration manager files the completed clearance sheets and prepares reference letters for the
resigning employees.Function(s) involved:► Related employee► Direct supervisor► Finance and administration manager► GA staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 61
What can go wrong? Key control point checklist
Human resources management
B.07.4 ResignationsTo make sure that the resignation process is performed according to organization policies and other related regulations
Humanitarian aid resource and delivery framework
R1 — Resigning employees do not return allorganization assets, including importantdatabases (C1)
R2 — Employees still have access into theorganization’s database (C2)
Performed by finance and administration manager
C1 — Obtain a list of items that are in theemployee’s possession so that themanager can use the checklist toconfirm that the employee has returnedall organization property (R1)
C2 — Make sure that all organization assetsare returned and that resignedemployees’ access into the system iscanceled (R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 62
Human resources management
B.07.5 Employee master dataTo maintain and update employee database and make sure that employee information is current
Employee
GA Staff
1Inform updates on
employee data
To 2 Update Attendance Summaryin Workflow Modeler: B.07.6 Payroll
Finance andAdministrationManager 3
Review and approveemployee data in
database
2Input and update
Employee Master Datainto the database
from Accept Candidate?in Workflow Modeler: B.07.1 Recruitment
from 5 Inform promoted employee and other relevantdepartments in Workflow Modeler: B.07.2 Promotions
from 4 File Clearance Sheetin Workflow Modeler: B.07.3 Terminations
from 5 File Clearance Sheets and prepare ReferenceLetters in Workflow Modeler: B.07.4 Resignations
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 63
Human resources management
B.07.5 Employee master dataTo maintain and update employee database and make sure that employee information is current
Humanitarian aid resource and delivery framework
Activity:1. Employees relate changes/updates to their personal data.2. GA staff inputs and updates employee master data, including the following information:
► Employee data (name, date of birth, education, department, address, contact number, marital status, number of dependents).► Recruitment-, promotion-, termination- and resignation-related information: result of test and interview for enrollment, joining date, level
(staff/manager) including new level if promoted, amount of salary including salary adjustment, employment status (i.e.,permanent/contract, including terms and agreement for contract employee), insurance (if any), date resigned from the organization,reason for leaving the organization, clearance sheet (returning computer, phone, car, company loan, ID card, etc.) (R1, R2, R3).
3. Finance and administration manager reviews and approves employee data in database.Function(s) involved:► Employee► GA staff► Finance and administration manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 64
What can go wrong? Key control point checklist
Human resources management
B.07.5 Employee master dataTo maintain and update employee database and make sure that employee information is current
Humanitarian aid resource and delivery framework
R1 — Unauthorized employee data entry to thedatabase (C1, C3)
R2 — Incorrect employee data entry to thedatabase (C1)
R3 — Employee master data includes fictitiousemployee (C2)
Performed by finance and administration manager
C1 — Review and approve changes ofemployee information in the database(R1, R2)
C2 — Review employee master data on aregular basis and compare it with theprevious-period employee masterdata (R3)
C3 — Restrict access to make changes toemployee master database to authorizedNGO staff through use of passwords (orphysical controls for manualrecords) (R1)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 65
Human resources management
B.07.6 PayrollTo perform payroll calculations accurately based on employee attendance and employee master data
to 1 Prepare Cash/Bank Payment Voucher inWorkflow Modeler: B.09.2 Bank Payments
from 3 Review and approve employee data in database inWorkflow Modeler : B.07.5 Employee Master Data
Staff
Accounting Staff
Finance AndAdministrationManager
Finance Staff
GA Staff
1Fill in Attendance
Sheets
2Update Attendance
Summary
3Calculate Payroll
for the period
4Review Payroll
Calculations
Payroll Calculation
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 66
Human resources management
B.07.6 PayrollTo perform payroll calculations accurately based on employee attendance and employee master data
Humanitarian aid resource and delivery framework
Activity:1. Employees should sign in at the beginning of work day and sign out at the end of the day. This activity allows the
payroll department to calculate any overtime hours (R1, R2).2. On a regular basis (usually monthly), GA staff updates attendance summary to submit to accounting staff for payroll
preparation. Attendance summary includes regular time, overtime, sick leave, annual leave/vacation and excusedleave (R3).
3. Accounting staff calculates payroll payment, including all required tax calculations (withholding tax and Social Security)upon receiving employee master data for payroll from GA staff. Payroll is processed on a periodical basis (R4, R5).
4. Finance and administration manager reviews and approves payroll calculations prepared by the accounting staff.When approved, the finance and administration manager signs payroll calculation sheet and forwards it to the financestaff for making salary payment.
Function(s) involved:► Staff► GA staff► Accounting staff► Finance and administration manager► Finance staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 67
What can go wrong? Key control point checklist
Human resources management
B.07.6 PayrollTo perform payroll calculations accurately based on employee attendance and employee master data
Humanitarian aid resource and delivery framework
R1 — Attendance sheets do not reflect truehours worked (C1)
R2 — Absent employee is signed in by anotheremployee (C1)
R3 — Incorrect entry to attendancesummary (C2)
R4 — Incorrect payroll (salary, withholding taxand Social Security) calculation (C3)
R5 — Payments are made to formeremployees who have retired, resigned orterminated (C3, C4)
Performed by each department head
C1 — At the end of the day, review andapprove attendance sheets (R1, R2)
Performed by finance and administration manager
C2 — Review and approve hours worked inattendance summary (R3)
C3 — Review payroll calculations on a regularbasis and compare it with employeemaster data (R4, R5)
C4 — Review the pay total by employee fromcurrent period to prior period andinvestigate significant differences (R5)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 68
Delivery
B.08.1 Delivery schedulingTo distribute goods of the right quantity efficiently and in a timely manner
Humanitarian aid resource and delivery framework
To 1 Prepare Delivery Order (DO) inWorkflow Modeler: B.03.3 Goods Issuance
from 4 Review PR and Approve inWorkflow Modeler: C.01.1 Recipient
Requisitions-Goods/Services
Field Community Staff
Inventory (Warehouse) Staff
Delivery (Distribution) Staff
Coordinator
Field Coordinator
1Prepare a
Distribution Plan
2Generate a List ofRecipient Address
per Area
3Review
Distribution Plan
4Prepare DOs and
distribute toWarehouse
Inventory and DistributionManager
To 1 Material/Goods Delivery in WorkflowModeler: B.08.2 Goods Delivery
from 1 in Workflow Modeler:B.08.2 Goods Delivery
Revised?
To 1 Distribute Questionnaire/Interview in WorkflowModeler: C.01.2 Recipient Satisfaction Survey
DistributionPlan and DO
No
Yes
5Approve DOs
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 69
Delivery
B.08.1 Delivery schedulingTo distribute goods of the right quantity efficiently and in a timely manner
Humanitarian aid resource and delivery framework
Activity:1. Field/community staff prepares and makes a distribution plan based on recipient requisition data and recipient
locations to provide for efficient distributions (R1).2. Delivery (distribution) staff generates a list of recipient locations from the system and categorizes the locations based
on area. Data on recipient locations can also be obtained from recipient requisition data maintained by thefield/community staff.
3. Coordinator reviews distribution plan, which includes loading plan, in order to enable the least costly or the mosteffective goods distribution.
4. Based on approved distribution plan, delivery (distribution) staff prepares delivery orders (DOs) for distributing goodsto recipients.
5. Inventory and distribution manager approves DOs.Function(s) involved:► Field/community staff► Field coordinator► Inventory (warehouse) staff► Delivery (distribution) staff► Inventory and distribution manager► Coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 70
What can go wrong? Key control point checklist
Delivery
B.08.1 Delivery schedulingTo distribute goods of the right quantity efficiently and in a timely manner
Humanitarian aid resource and delivery framework
R1 — Distribution plan is ineffective andinefficient (C1)
Performed by inventory and distribution manager
C1 — Review the distribution plan and makeany necessary correction (R1)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 71
Delivery
B.08.2 Goods deliveryTo make sure that goods purchased/donated are distributed and received by the intended recipients
from 5 Approve DOs in WorkflowModeler: B.08.1 Delivery Scheduling
Vendor/Supplier
Transporter
Delivery (Distribution) Staff
Field Community Staff
1Material/Goods
Delivery
2Unloading
materials/goods
4DO and goods
acceptance
To 1 Distribute goods in WorkflowModeler: C.02.1 Recipient Receipt
from 13 in WorkflowModeler: B.03.3 Goods Issuance
No
Yes
3Record incorrectitems and returndamaged goods
5Recording &
Reporting
DistributionPlan and DO
Damagedgoods
Signed DOand
DamagedGoods
To 1 Prepare a DistributionPlan in Workflow Modeler:B.08.1 Delivery Scheduling
Damaged Goods
Meets therequirements?
Signed DO and Damaged Goods
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 72
Delivery
B.08.2 Goods deliveryTo make sure that goods purchased/donated are distributed and received by the intended recipients
Humanitarian aid resource and delivery framework
Activity:1. Transporter loads material/goods into selected transportation mode, and the transporters acknowledge DOs and
deliver the materials/goods (R1, R2).2. Field/community staff unloads the materials/goods and physically checks the materials/goods against DOs.3. Field/community staff records any incorrect items on DOs (quantity, type of items, etc) and signs off. Damaged goods
should be returned to the warehouse/vendors.4. Field/community staff signs DOs, acknowledging date and time.5. Delivery (distribution) staff generates and reloads incorrect items, allocates products, sends DOs for incomplete items
to field/community staff and sends damaged goods to suppliers/vendors.Function(s) involved:► Vendor/supplier► Transporter► Delivery (distribution) staff► Field/community staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 73
What can go wrong? Key control point checklist
Delivery
B.08.2 Goods deliveryTo make sure that goods purchased/donated are distributed and received by the intended recipients
Humanitarian aid resource and delivery framework
R1 — Incomplete material/goods (C1)
R2 — Material/goods not delivered or stolen(C1, C2)
Performed by inventory and distribution manager
C1 — Verify inventory completeness comparedwith DOs (R1, R2)
C2 — Transporters are accompanied bydelivery (distribution) staff (R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 74
Cash disbursement
B.09.1 Accounts payableTo correctly process invoices payable for goods and services received from vendors
Humanitarian aid resource and delivery framework
To 14 in Workflow Modeler:B.11.1 Journal Entry
from 4 Contacts the service provider to service thefixed assets in Workflow Modeler: B.06.6
Fixed Assets Maintenance
Inventory and distribution manager
Accounting Staff
Vendor
from 3 Prepare Project Acceptance Letter inWorkflow Modeler: B.05.5 Project
Acceptance/Delivery
1ReceiveInvoice
document
from Approve Memorandum of Project Completion?in Workflow Modeler: B.05.3 Project Inspection
from Donated goods? in WorkflowModeler: B.03.2 Receipt of Goods or Services
To 1 Prepare Cash/BankPayment Voucher inWorkflow Modeler:B.09.2 Bank
2Verify POs,
DOs andInvoices
3CompleteDocument
4PaymentSchedule
Accept?
No
Yes
Projectacceptance
letter
PO,invoices,
DO
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 75
Cash disbursement
B.09.1 Accounts payableTo correctly process invoices payable for goods and services received from vendors
Humanitarian aid resource and delivery framework
Activity:1. Accounting staff receives invoice documents, such as (R1, R2):
► POs from procurement staff► Invoices and tax invoices from suppliers► DOs
2. Accounting staff verifies POs, DOs, invoices and related tax calculations. Any incomplete documents are returned tosource (i.e., vendors) for completion.
3. Vendors complete all required accounts payable documents and send them back to accounting department.4. Accounting staff prepares payment schedule based on information received from related departments.Function(s) involved:► Inventory and distribution manager► Accounting staff► Vendor
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 76
What can go wrong? Key control point checklist
Cash disbursement
B.09.1 Accounts payableTo correctly process invoices payable for goods and services received from vendors
Humanitarian aid resource and delivery framework
R1 — Invoice documents (invoice, PO, etc.)are illegitimate (C1, C2)
R2 — Invoice documents (invoice, PO, etc.)are incorrect/incomplete (C1, C2)
Performed by accounting staff and finance andadministration manager
C1 — Verify and validate document receipt andperform matching of POs, invoices andDOs (R1, R2)
C2 — Review accounts payable listing(R1, R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 77
Cash disbursement
B.09.2 Bank paymentsTo make cash/bank payments as required and on a timely basis
Humanitarian aid resource and delivery framework
Executive Director/Coordinator/Finance and Admin Manager
Finance & Administration Manager
Finance Staff
Accounting Staff
from 4 Review Payroll Calculations in WorkflowModeler: B.07.6 Payroll
from Approved? in Workflow Modeler: B.10.1Petty Cash and Replenishment
1Prepare
Cash/BankPayment Voucher
from 4 Payment Schedule in WorkflowModeler: B.09.1 Accounts Payable
To 14 in Workflow Modeler: B.11.1Journal Entry
2Prepare
cheques/banktransfer orders
5Make
Payments
4Authorizecheques/
bank transfers
Cheque andBank Transfer
3Verify andauthorize
cheques/BankTransfer Orders
PayrollCalculation
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 78
Cash disbursement
B.09.2 Bank paymentsTo make cash/bank payments as required and on a timely basis
Humanitarian aid resource and delivery framework
Activity:1. Finance staff prepares cash/bank payment vouchers for approved invoices, salary requisitions, etc. (R1, R2)2. Finance staff prepares checks/bank transfer orders for authorization based on the cash/bank payment vouchers
(R3, R4).3. Finance and administration manager verifies checks/bank transfer orders against vouchers and other supporting
documents.4. Assumptions:
► Checks/bank transfers should be signed by two senior management executives.► Policies on authorization limits should be defined.
5. Executive director, coordinator or finance and administration manager should approve and sign checks/bank transferorders (according to the authorization table).
6. Finance staff sends out payments to vendors and other cash disbursement (including payroll). Cash/bank paymentvouchers are then sent to accounting staff for inputting into payment system/module. Finance staff is to maintain proofof bank disbursements as well as proof of salary distribution signed by individual employees (R5, R6).
Function(s) involved:► Executive director/coordinator► Finance and administration manager► Finance staff► Accounting staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 79
What can go wrong? Key control point checklist
Cash disbursement
B.09.2 Bank paymentsTo make cash/bank payments as required and on a timely basis
Humanitarian aid resource and delivery framework
R1 — Incorrect/incomplete voucherpreparation (C1)
R2 — Unauthorized voucher preparation (C1)
R3 — Incorrect/incomplete checks/banktransfer orders are prepared (C2)
R4 — Unauthorized check/bank transfer orderpreparation (C2)
R5 — Cash payment is received byunauthorized person (C3)
R6 — Duplicate payments (C2, C4)
Performed by finance staff and finance andadministration manager
C1 — Verify cash/bank payment voucheragainst supporting documents (R1, R2)
C2 — Verify checks/bank transfer ordersagainst supporting documents(R3, R4, R6)
C3 — Payments disbursed in cash are signedby the receiver on cash vouchers (R5)
C4 — Update accounts payable list againstpayments (R6)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 80
Petty cash
B.10.1 Petty cash and replenishmentTo make sure that petty cash is available when needed and that petty cash replenishment is conducted on time
Humanitarian aid resource and delivery framework
To 1 Prepare Cash/BankPayment Voucher inWorkflow Modeler: B.09.2Bank Payments
User
Finance andAdministration Manager
Finance Staff
1Submit Petty
Cash AdvanceRequests
2Decline Petty
Cash AdvanceRequest
3Verify Petty
Cash AdvanceRequests
7Prepare Petty
CashReplenishment
Voucher
PettyCash AdvanceRequest over
threshold?
No
Yes
4Issue cash
5Receive cash
6Update Petty
CashDisbursements
Book
Pettycash at minimum
balance?
8Review and
approve PettyCash
ReplenishmentVouchers
Approved?
Yes
No
Cash
Yes
No
Petty cash disbursementdocument
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 81
Petty cash
B.10.1 Petty cash and replenishmentTo make sure that petty cash is available when needed and that petty cash replenishment is conducted on time
Humanitarian aid resource and delivery framework
Activity:1. Users submit petty cash advance requests, which must indicate the purpose of the petty cash advance (R1, R2).2. If a request is declined, finance staff informs users that the petty cash advance request has been declined and
provides explanation why.3. Finance staff verifies the completeness and validity of petty cash advance requests based on the organization’s
policies and the authorization of requisition.4. Once approved, finance staff issues cash and files the authorized document for petty cash reimbursement process
(R3, R4).5. Users receive cash and sign petty cash vouchers (R5).6. Petty cash disbursements are recorded and the balance is updated. Finance staff records amounts disbursed,
purpose of disbursements and the remaining balance of petty cash (R6, R7).7. when petty cash has reached its minimum balance, the finance staff prepares a petty cash replenishment voucher for
the finance and administration manager’s approval (R8).8. Finance and administration manager reviews and approves for completeness and validity of petty cash replenishment
vouchers and cashbook, along with supporting documents.Function(s) involved:► User► finance and administration manager► finance staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 82
What can go wrong? Key control point checklist
Petty cash
B.10.1 Petty cash and replenishmentTo make sure that petty cash is available when needed and that petty cash replenishment is conducted on time
Humanitarian aid resource and delivery framework
R1 — Petty cash advance request forms areprepared by unauthorized person (C1)
R2 — Petty cash is not for organization-relatedpurposes (C2, C3)
R3 — Cash issued by unauthorized person(C4)
R4 — Incorrect amount of cash disbursed (C5)
R5 — Cash is not received by the designatedperson (C6)
Performed by finance staff
C1 — Verify authorization on petty cashadvance requests (R1)
C2 — Verify the purpose of petty cashadvance (R2)
C5 — Finance staff (cashier) is required tore-count amount of cash disbursed (R4)
C6 — Verify that cash receipts have beensigned by the designated persons (R5)
Performed by user manager
C3 — Authorize petty cash advancerequest (R2)
Performed by finance and administration manager
C4 — Review petty cash disbursementdocuments (R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 83
What can go wrong? Key control point checklist
Petty cash
B.10.1 Petty cash and replenishmentTo make sure that petty cash is available when needed and that petty cash replenishment is conducted on time
Humanitarian aid resource and delivery framework
R6 — Cash payments are not recorded whendisbursed (C7)
R7 — Incorrect amount of recorded cashpayment (C7)
R8 — Request is for incorrect replenishmentamount (C8, C9)
Performed by accounting staff
C7 — Prepare reconciliation and agreepayments to supporting documentation(R6, R7)
C8 — Prepare reconciliation and agreepayments to supportingdocumentation (R8)
Performed by finance and administration manager
C9 — Perform a count of petty cash balanceon a weekly basis and compare withbalance per petty cash disbursementsbook (R8)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 84
Accounting
B.11.1 Journal entriesTo record transactions into accounting records accurately and completely
Humanitarian aid resource and delivery framework
Inventory and Distribution Manager
Financial and Adminstration Manager
Vendor
1Obtain
data input
To 1 Obtain data forreconciliation in WorkflowModeler: B.11.2Reconciliation
3Review and
approvedjournal
vouchers
2Preparejournal
vouchers
6Posting to
GL
from 4 Review and Approve Bank ReceiptVouchers in Workflow Modeler:
B.02.1 Bank Receiptsfrom 5 Review the report of difference and instruct
for adjustment in Workflow Modeler:B.03.4 Physical Count
from 5 Determine the classification of the fixedassets in Workflow Modeler: B.06.2 Fixed Assets
Received, Capitalization and Identification Tagfrom 9 in Workflow Modeler: B.06.2 Fixed Assets
Received, Capitalization and Identification Tagfrom 5 Review and approves the exception
report in Workflow Modeler: B.06.5Fixed Assets Physical Inspection
from 2 in Workflow Modeler: B.09.1Accounts Payable
from Donated goods? in Workflow Modeler:B.03.2 Receipt of Goods or Services
from 5 Make Payments in WorkflowModeler: B.09.2 Bank Payments
from 6 Update fixed asset register in WorkflowModeler: B.06.4 Fixed Assets
4Input
journalentries
5Review and
approvetransaction
input
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 85
Accounting
B.11.1 Journal entriesTo record transactions into accounting records accurately and completely
Humanitarian aid resource and delivery framework
Activity:1. Accounting staff obtains data input. Data input consists of:
► Internal organization document sources, such as:► Approval memo by authorized person► Payroll calculations► Petty cash replenishment vouchers► Cash/bank payment voucher► Receiving reports► Routine journal adjustments (Process B.8.1)
► External organization document sources, such as:► Receipts from donor entity► Invoices► Delivery orders► Credit/debit notes
2. Accounting staff prepares journal vouchers based on supporting documents (R1).3. Finance and administration manager reviews and approves journal vouchers to make sure that:
► Journal vouchers are supported by source document► Account coding is to correct account (classification of account)
4. Accounting staff enters journal entry in the system (R2).
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 86
Accounting
B.11.1 Journal entriesTo record transactions into accounting records accurately and completely
Humanitarian aid resource and delivery framework
Activity:5. Transaction inputs are checked and reviewed by finance and administration manager before posting in the system to
be sure that data is complete and accurate.6. Accounting staff posts journal entries to general ledger after being reviewed and approved by the finance and
administration manager.Function(s) involved:► Finance and administration manager► Accounting staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 87
What can go wrong? Key control point checklist
Accounting
B.11.1 Journal entriesTo record transactions into accounting records accurately and completely
Humanitarian aid resource and delivery framework
R1 — Misclassification of account (C1, C2, C3)
R2 — Incomplete or inaccurate inputs (C3, C4)
Performed by finance and administration manager
C1 — Journal vouchers are checked andreviewed by authorized person (R1)
C2 — Use of chart of accounts to determineaccount posting allocation (R1)
C3 — Transaction inputs are checked andreviewed before journal posting insystem to be sure that data is completeand accurate (R1, R2)
C4 — Access to posted journals in the systemis restricted to authorized NGOaccounting staff through use ofpasswords (or physical controls formanual records) (R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 88
Accounting
B.11.2 ReconciliationTo ensure that general ledger accounts are reconciled and that there are no long-outstanding items or abnormal balancesin the general ledgers
Humanitarian aid resource and delivery framework
from 6 Posting to GL in WorkflowModeler: B.11.1 Journal Entry
Accounting Staff
Financial and Adminstration Manager
3Review
reconciliationreports
Adjustment?
No
Yes1
Obtaindata for
reconciliation
2Monthly
reconciliation
4Follow up
To 1 Prepare routine journalentry in Workflow Modeler:B.12.1 Closing and Reporting
Need Followup?
Yes
No
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 89
Accounting
B.11.2 ReconciliationTo ensure that general ledger accounts are reconciled and that there are no long-outstanding items or abnormal balancesin the general ledgers
Humanitarian aid resource and delivery framework
Activity:1. Accounting staff obtains data for reconciliation. Data reconciliation consists of:
► Bank statements► Trial balance► Detail of sub-ledger (e.g., accounts payable listing, inventory records, fixed assets register)
2. Accounting staff prepares monthly reconciliation (R1, R2):► Reconcile bank statements with bank account balance per general ledger► Reconcile general ledger accounts with sub-ledger► Prepare reconciliation worksheets► Check outstanding items against source documents to determine appropriate treatment
3. Finance and administration manager reviews reconciliation reports and worksheets for unrecorded and unexplaineddifferences and to make sure long-outstanding or abnormal balances are followed up.
4. Accounting staff follows up with relevant persons regarding unreconciled differences and long-outstanding or abnormalbalances and verifies to source documents.
Function(s) involved:► Accounting staff► Finance and administration manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 90
What can go wrong? Key control point checklist
Accounting
B.11.2 ReconciliationTo ensure that general ledger accounts are reconciled and that there are no long-outstanding items or abnormal balancesin the general ledgers
Humanitarian aid resource and delivery framework
R1 — Long outstanding of reconciling items(C1, C2, C3)
R2 — Suspense accounts or abnormalbalances are not cleared on a timelybasis (C1, C2, C3)
Performed by finance and administration manager
C1 — Review reconciling items to make surethat long-outstanding or abnormalbalances are followed up (R1, R2)
C2 — Reconciliation worksheet is preparedand reviewed (R1, R2)
C3 — Aging reports of reconciling items andsuspense accounts are prepared anddistributed to appropriate level ofmanagement, depending on the age ofreconciling items (R1, R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 91
Reporting
B.12.1 Closing and reportingTo conduct the financial close and reporting process efficiently with all transactions affecting the NGO’s financial positionrecorded in an accurate and timely basis. The financial close should result in the preparation of financial statements thatconform with the generally accepted accounting principles of the specific country.
Humanitarian aid resource and delivery framework
Accounting Staff
Finance and Administration Manager
Coordinator
Donor
Executive Director
Approved?
No
2Reviewroutine
journal entry
3Approveroutine
journal entry
6Reviewfinancialreports
from Adjustment? in WorkflowModeler: B.11.2 Reconciliation
1Prepareroutine
journal entry
4Input routinejournal entry
5Prepare and
printfinancialreports
Agreed?
7Prepare
ManagementReportingPackage
Statement of cash receipt andcash disbursement
Financial Statement
Financial Statement
No
Yes Yes
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 92
Reporting
B.12.1 Closing and reportingTo conduct the financial close and reporting process efficiently with all transactions affecting the NGO’s financial positionrecorded in an accurate and timely basis. The financial close should result in the preparation of financial statements thatconform with the generally accepted accounting principles of the specific country.
Humanitarian aid resource and delivery framework
Activity:1. Accounting staff prepares routine month-end journal entries, which may include adjustments in (R1):
► Depreciation► Amortization► Accrual:
► Interest expenses/income► Overhead expenses► Income tax payable
2. Finance and administration manager reviews routine journal entries to verify accuracy of journal voucher and that it isconsistent with underlying source documents and NGO accounting policies. Consider need for non-routine transactionjournal entries, such as unexpected inventory losses.
3. Finance and administration manager approves routine journal entries.4. Accounting staff inputs routine journal entries (R2).
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 93
Reporting
B.12.1 Closing and reportingTo conduct the financial close and reporting process efficiently with all transactions affecting the NGO’s financial positionrecorded in an accurate and timely basis. The financial close should result in the preparation of financial statements thatconform with the generally accepted accounting principles of the specific country.
Humanitarian aid resource and delivery framework
Activity:5. Accounting staff prepares monthly financial reports, which consist of (R3):
► General ledger► Trial balance► Balance sheet and income and expense statement► Other special purpose reports, such as a statement of cash receipt and cash disbursement by project► On an annual basis, the NGO is also required to prepare financial statements in accordance with generally accepted accounting
principles comprising a statement of financial position, statement of activities, statement of cash flows and accompanying notes.
6. Finance and administration manager reviews financial statements to make sure that:► Financial statements conform with the generally accepted accounting principles of the specific country.► Accuracy of financial statements.► All known transactions are recorded in a timely manner.► Additional information required in the notes to the financial statements is correct.
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 94
Reporting
B.12.1 Closing and reportingTo conduct the financial close and reporting process efficiently with all transactions affecting the NGO’s financial positionrecorded in an accurate and timely basis. The financial close should result in the preparation of financial statements thatconform with the generally accepted accounting principles of the specific country.
Humanitarian aid resource and delivery framework
Activity:7. Finance and administration manager prepares the management reporting package (MRP) for the information of the
trustees and the executive director. The MRP is prepared for presentation at the monthly (or quarterly) trustee meetingand contains the following reports:► Balance sheet and income and expense statement► Monthly inventory report (refer to Expanded module B.03.5 Inventory monitoring)► Project status report (refer to Expanded module B.05.2 Project execution and monitoring)► The budget compared to actual performance report (refer to Expanded module B13.1 Budget analysis)► Results of recipient satisfaction survey (refer to Expanded module C.02.2 Recipient satisfaction survey)► Other special-purpose reports
Function(s) involved:► Accounting staff► Finance and administration manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 95
Reporting
B.12.1 Closing and reportingTo conduct the financial close and reporting process efficiently with all transactions affecting the NGO’s financial positionrecorded in an accurate and timely basis. The financial close should result in the preparation of financial statements thatconform with the generally accepted accounting principles of the specific country.
Humanitarian aid resource and delivery framework
R1 — Adjustments are not complete,calculated inaccurately and notrecognized in a timely basis (C1)
R2 — Incomplete or inaccurate inputs (C2)
R3 — Inaccurate reporting (C3, C4)
Performed by finance and administration manager
C1 — Supervise and review routine month-endjournal entries to ensure accuracy andcompleteness (R1)
C2 — Transaction inputs are checked andreviewed before posting to generalledger in the system to ensure that datais complete and accurate (R2)
C3 — Financial reports and financialstatements are checked, reviewed andapproved before distribution tousers (R3)
C4 — Detailed supporting preparation of thefinancial statements is available and isreviewed for accuracy and completenessas compared with underlying accountingrecords (R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
What can go wrong? Key control point checklist
Page 96
Recipient requisition
C.01.1 Recipient requisition of goods or servicesTo identify recipient needs for goods/services by using needs requisition (NR) forms
Humanitarian aid resource and delivery framework
Recipient
Field Community Staff
1Prepare
PurchaseRequisitions
To 1Review
approvedvendor list in
WorkflowModeler:
B.04.3 DirectAppointment
Field Coordinator
from 4 Input new recipients'Data into the System in
Workflow Modeler: B.01.2Recipient Data Maintenance
Recipientcode
available?
2Input theRecipient
Code/Number& Analyze
Requisitions
3Check Budget
Availibility
4Review PR
andApprove
DirectAppointment
To 1Receive informationto perform tender inWorkflow Modeler:
B.04.4 Tender
To 15in Workflow
Modeler:B.04.6 PO
Management
To 2Generate a List of
Recipient Address perArea in Workflow Modeler:B.08.1 Delivery Scheduling
To 1Prepare AdditionalFund Requisition
Proposal inWorkflow Modeler:B.01.3 AdditionalFund Requisitions
to 1Assess new applicants
based on the NGO‘s predetermined requirements
in Workflow Modeler:B.01.2 Recipient Data
Maintenance
Needadditional
fund?
Purchase Requisition
Purchase RequisitionApproved
PRRepeated
Order?
DirectAppointment/
Tender?
No
Yes Tender
Yes
NoYes
No
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 97
Recipient requisition
C.01.1 Recipient requisition of goods or servicesTo identify recipient needs for goods/services by using needs requisition (NR) forms
Humanitarian aid resource and delivery framework
Activity:1. Needs requisition (NR) is the basic document used to identify the needs of the recipients. On a periodic basis,
recipients fill out NRs and submit them to the NGO’s field/community staff.2. Field/community staff inputs recipient codes/numbers from NR into the system and check whether the recipients have
been registered. If registered, make sure that requisitions follow the organization’s standards and that there are noduplicate or unreasonable requests for goods or services. If not yet registered, see recipient data maintenance(R1, R2, R3, R4, R5).
3. Field/community staff checks whether funds are sufficient for fulfilling recipient NR. If funds are not sufficient to fulfillNR, inform field coordinator so additional fund requisition proposal can be prepared (see “Additional fund requisitionprocess”).
4. NR should be reviewed and approved by field coordinator before being sent to the procurement department forcreating POs.
Function(s) involved:► Recipients► Field/community staff► Field coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 98
What can go wrong? Key control point checklist
Recipient requisition
C.01.1 Recipient requisition of goods or servicesTo identify recipient needs for goods/services by using needs requisition (NR) forms
Humanitarian aid resource and delivery framework
R1 — Approval of duplicate requisition/unreasonable requisition (C1)
R2 — The quantity and/or type of itemsrequested exceed the approvedbudget (C2)
R3 — Incomplete recipient information in thePR (C2)
R4 — Input of PR by unauthorized people(C3, C4)
R5 — Error on PR data inputting (C2)
Performed by field coordinator
C1 — Compare requisitions with historicalrequisition information in the system (R1)
C2 — Verify the amount, completeness andaccuracy of requisitions and compare toapproved budget (R2, R3, R5)
C3 — Verify and authorize requisition data entryinto the system (R4)
C4 — Restrict access to process recipientsrequests in the system to authorized NGOstaff through use of passwords (orphysical controls for manual records) (R4)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 99
Recipient receipt
C.02.1 Recipient receipt of goods or servicesTo make sure that goods purchased/donated are distributed and received by the intended recipients
Humanitarian aid resource and delivery framework
Field Community Staff
Recepients
Community Relation
1Distribute goods
2Receiving goods
4Authorized
recipients receipt
Meetrequitition?
3Record incorrectgoods received
Yes
No
from 0 in Workflow Modeler: B.08.2Goods Delivery
5Obtain Recipient
Receipt Forms andmonitoring
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 100
Recipient receipt
C.02.1 Recipient receipt of goods or servicesTo make sure that goods purchased/donated are distributed and received by the intended recipients
Humanitarian aid resource and delivery framework
Activity:1. Field/community staff distributes goods to the intended recipients.2. Individual aid recipients receive materials/goods directly from the NGO’s field/community staff. The recipients sign-off
on the recipient receipt forms (R1, R2, R3, R4).3. Recipients record any incorrect items (quantity, type of items, etc.) on recipient receipt forms.4. Recipients sign-off on recipient receipt forms based on the goods received.5. Field coordinator collects the signed-off recipient receipt forms and verifies them against DO report in database, inputs
data into the system for monitoring and periodically surveys recipients to find out whether goods delivered have mettheir expectations.
Function(s) involved:► Recipients► Field/community staff► Field coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 101
What can go wrong? Key control point checklist
Recipient receipt
C.02.1 Recipient receipt of goods or servicesTo make sure that goods purchased/donated are distributed and received by the intended recipients
Humanitarian aid resource and delivery framework
R1 — The materials/goods are not received bythe intended recipients (C1, C2)
R2 — The materials/goods received aredifferent from what was ordered (C1, C2)
R3 — The materials/goods received are not inthe right quantity (C1, C2)
R4 — The materials/goods received are not ofthe acceptable quality (C1, C2)
Performed by field coordinator
C1 — Verify the recipient receipt forms againstDO report in the database (R1, R2,R3, R4)
C2 — Periodically survey recipients to find outwhether goods delivered have met theirexpectations (R1, R2, R3, R4)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 102
Expanded module details
Humanitarian aid resource and delivery framework
Page 103
Humanitarian Aid Resource and DeliveryFramework — expanded modules
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Resource Mgmt.
B.08 Delivery
Accounting Reporting(Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requisition Recipient Receipt
Budget Preparationand Requisition
Approval
Funding and Donation Mechanisms
Rec
eipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Expe
nditu
reC
ycle
Petty
Cas
hC
ash
Dis
burs
emen
t
Rea
cqui
sitio
nC
ycle
B.05 Produce/Build
B.04 Purchase
B.06 Assets Management
A.01
A.02
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Expanded modules
Page 104
Expanded modules
Humanitarian aid resource and delivery framework
A.02 Funding and donation mechanismsA.02.1 Funding and donation mechanismsB.03 Inventory managementB.03.1 Inventory planningB.03.3 Goods issuanceB.03.4 Physical countB.03.5 Inventory monitoringB.05 Produce and buildB.05.1 Planning and schedulingB.05.2 Project execution and monitoringB.05.3 Project inspectionB.05.4 Project amendmentB.05.5 Project acceptance/delivery
B.06 Asset managementB.06.1 Fixed asset requisitionB.06.2 Fixed asset receipt, capitalization and
identification tagB.06.3 Fixed asset transfersB.06.4 Fixed asset disposalsB.06.5 Fixed asset physical inspectionB.06.6 Fixed asset maintenanceB.13 Budget and analysisB.13.1 Budget analysisC.02 Recipient receiptC.02.2 Recipient satisfaction survey
Page 105
Funding and donation mechanisms
Humanitarian aid resource and delivery framework
A.02.1 Funding and donation mechanismsTo provide an overview of the activities that donors/prospective donors carry out upon receiving proposedbudget/proposals or additional fund requisitions from NGOs
NGO
Prospective Donors
Executive Director
1Assess ProposedBudget/AdditionalFund Requisition
2Fund Raising
Approve &Donate?
No
from 4 Review and approve inWorkflow Modeler: B.01.1
Budget Preparation
3Receive
Pledges/DisbursementSchedules
Cash or goods
To 1 Fund transfers in WorkflowModeler: B.02.1 Bank Receipts
from 2 Review and Approve Additional Fund RequisitionProposal in Workflow Modeler: B.01.3 Additional FundRequisitions
To 22 in Workflow Modeler:B.03.2 Receipt of Goods orServices
Yes
Goods
Cash
B.03 Inventory Management
B.07 Human Resource Mgmt.
B.08 Del iver y
Accounting Reporting(Financ ial /Mgmt) Bu
dget
and
Anal
ysis
Rec ipient Requis ition Recipient Receipt
Budget Preparationand Requis ition
Approval
Funding and Donation Mechanisms
Rec
eipt
Cyc
le
B.02 Cas h Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Rea
cqui
sitio
nC
ycle
B.05 Produce/Build
B.04 Purchase
B.06 Ass ets Management
A.01
A.02
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Expanded modules
Page 106
Funding and donation mechanisms
Humanitarian aid resource and delivery framework
A.02.1 Funding and donation mechanismsTo provide an overview of the activities that donors/prospective donors carry out upon receiving proposedbudget/proposals or additional fund requisitions from NGOs
Activity:1. Donors receive proposed budget or additional fund requisition from NGOs and determine whether to pledge for
donations based on the donor’s objectives and goals. Once the donors decide to contribute, they will submit theirpledges and disbursement schedule to the NGOs.
2. When Donors have decided to contribute to the proposed budget and/or additional fund requisition, the donors willraise funds or collect goods/services to be donated.
3. NGO executive director reviews the completeness of the pledges/disbursement schedules and compares them to theproposed budget and additional fund requisitions. If necessary, budget amendment are made to take into account thedifference between the proposed budget or additional fund requisition and the pledge approved by donor.
Function(s) involved:► Donors/prospective donors► Executive director
B.03 Inventory Management
B.07 Human Resource Mgmt.
B.08 Del iver y
Accounting Reporting(Financ ial /Mgmt) Bu
dget
and
Anal
ysis
Rec ipient Requis ition Recipient Receipt
Budget Preparationand Requis ition
Approval
Funding and Donation Mechanisms
Rec
eipt
Cyc
le
B.02 Cas h Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Rea
cqui
sitio
nC
ycle
B.05 Produce/Build
B.04 Purchase
B.06 Ass ets Management
A.01
A.02
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Expanded modules
Page 107
Inventory management
Humanitarian aid resource and delivery framework
B.03.1 Inventory planningTo make sure that goods ordered are received according to the schedule agreed with vendors
Inventory (Warehouse) Staff
Inventory & Distribution Manager
3Check into the systemwhether goods to bedelivered have been
received
4Review report against
the system
To 6 Send POs and Follow up outstanding POin Workflow Modeler: B.04.6 PO Management
1Prepare Schedule of
Goods to be Received
2Reviews Schedule ofGoods to be Received
List ofOutstanding
PO
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 108
Inventory management
Humanitarian aid resource and delivery framework
B.03.1 Inventory planningTo make sure that goods ordered are received according to the schedule agreed with vendors
Activity:1. Inventory (warehouse) staff prepares schedule of goods to be received based on POs received from procurement.
Schedule of goods to be received documents the quantity of goods expected to arrive from vendors and the timing ofdelivery (R1, R2).
2. Inventory and distribution manager reviews schedule of goods to be received based on POs received fromprocurement.
3. Inventory (warehouse) staff checks into the system whether goods to be delivered have been received. Inventory(warehouse) staff also prepares a report for goods scheduled to be delivered but not yet received. This report issubmitted to procurement department for follow up with vendors as to reasons for the delay (R3).
4. Inventory and distribution manager reviews report against the system.Function(s) involved:► Inventory (warehouse) staff► Inventory and distribution manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 109
What can go wrong? Key control point checklist
Inventory management
Humanitarian aid resource and delivery framework
B.03.1 Inventory planningTo ensure that goods ordered are received according to the schedule agreed with vendors
R1 — Unintentional errors in preparingschedule of goods to be received (C1)
R2 — Schedule of goods to be received isincomplete or not updated (C2)
R3 — Inaccurate report (goods that have beenreceived are still included in the report;goods that have not been received arenot included in the report) (C3)
Performed by inventory and distribution manager
C1 — Review Schedule of goods to bereceived based on POs received fromprocurement (R1)
C2 — Re-check the schedule of goods to bereceived with field coordinator (R2)
C3 — Report is reviewed against thesystem (R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 110
Inventory management
Humanitarian aid resource and delivery framework
B.03.3 Goods issuanceTo perform the issuance of goods to recipients in an efficient manner
Delivery (Distribution) Staff
Inventory and Distribution Manager
3Update bin card andprepare summary of
goods issued
5Update the inventorydatabase to reflect
goods issued
To 5 in Workflow Modeler:B.03.5 Inventory Monitoring
1Prepare Delivery
Order (DO)
2Locate, count,
check andissue goods
4Compare DO and
summary ofgoods issued
To 1 Material/Goods Delivery in WorkflowModeler: B.08.2 Goods Deliveryfrom 5 Approve DOs in Workflow
Modeler: B.08. 1 Delivery Scheduling
Accounting Staff
Inventory (Warehouse) Staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 111
Inventory management
Humanitarian aid resource and delivery framework
B.03.3 Goods issuanceTo perform the issuance of goods to recipients in an efficient manner
Activity:1. Delivery (distribution) staff prepare delivery order (DO) based on approved distribution plan. DOs should consist of the
following information (R1, R2):► Delivery date► Type of goods► Quantity of goods► Description of goods and distribution staff who issued the goods► Recipient purchase requisition
2. Inventory (warehouse) staff locates goods in the warehouse, performs physical check, and counts and issues goodsaccording to the DOs (R3).
3. Inventory (warehouse) staff updates bin card and prepares summary of goods issued (R4, R5, R6).4. Inventory and distribution manager compares DOs and summary of goods issued.5. Accounting staff updates inventory database based on approved DOs and summary of goods issued (R7, R8).Function(s) involved:► Delivery (distribution) staff► Inventory (warehouse) staff► Inventory and distribution manager► Accounting staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 112
What can go wrong? Key control point checklist
Inventory management
Humanitarian aid resource and delivery framework
B.03.3 Goods issuanceTo perform the issuance of goods to recipients in an efficient manner
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Unauthorized DOs (C1, C2)
R2 — DOs prepared do not match withdistribution plan (C1)
R3 — Goods issued are not in accordance withDO (C3)
R4 — Inaccurate update of bin card (C4)
R5 — Bin card is not updated in a timelymanner(C4)
R6 — Summary of goods issued is inaccurate(C5)
R7 — Inaccurate input of information to thesystem (C6, C7)
R8 — Issuance of goods are not inputted to thesystem (C2, C7)
Performed by inventory and distribution manager
C1 — Validate and approve DO (includematching to distribution plan) (R1, R2)
C2 — Use of prenumbered DOs (R1, R8)
C3 — Re-check or re-count the goods to beissued (R3)
C4 — Periodic physical count of inventory(R4, R5)
C5 — Compare summary of goods issued toDO (R6)
C6 — Review and verify data input (R7)
C7 — Reconcile total quantity per DO with totalgoods issued in the system (R7, R8)
Page 113
Inventory management
Humanitarian aid resource and delivery framework
B.03.4 Physical countTo check that inventory items physically exist and are in usable condition
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Inventory and Distribution Manager
5Review the report of
difference and instruct foradjustment
To 12 in Workflow Modeler:B.11.1 Journal Entry
1Prepare InventoryCount Instruction
2Perform physical
count
4Prepare report of
inventory count result
3Perform
reconciliation
Inventory (Warehouse) Staff andAccounting Staff
Inventory & Distribution Manager and Finance &Administration Manager
Page 114
Inventory management
Humanitarian aid resource and delivery framework
B.03.4 Physical countTo check that inventory items physically exist and are in usable condition
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Activity:1. Inventory and distribution manager prepares inventory count instruction.2. Inventory (warehouse) staff and accounting staff perform physical count and inspection on regular basis based on
inventory count instructions (R1, R2, R3, R4, R5).3. Inventory (warehouse) staff and accounting staff perform reconciliation between quantity of inventory per count and
per accounting record.4. Inventory (warehouse) staff and accounting staff prepare report of inventory count result, including any obsolete or
spoiled inventory.5. Inventory and distribution manager and finance and administration manager review (and investigate if necessary) then
approve the report of difference between inventory quantity per count and per accounting records and instructaccounting staff to make the adjustment.
Function(s) involved:► Inventory (warehouse) staff► Accounting staff► Inventory & distribution manager► Finance & administration manager
Page 115
What can go wrong? Key control point checklist
Inventory management
Humanitarian aid resource and delivery framework
B.03.4 Physical countTo check that inventory items physically exist and are in usable condition
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Inaccurate inventory list per accountingrecord (C1, C2)
R2 — Inaccurate inventory measurement (e.g.,dozen vs. unit; pounds vs. kilograms) (C3)
R3 — Usable inventory is considered asobsolete (C4)
Performed by finance and administration manager
C1 — Review inventory list and ensure timelyand accurate entry of receiving andissuance of inventory (R1)
C2 — Review and ensure that only authorizedaccounting staff can access or changethe inventory list (R1)
Performed by finance and administration managerand inventory and distribution manager
C3 — Ensure the unit of measurement in thesystem is the same as that in physicalcount (R2)
Performed by inventory and distribution manager
C4 — Review list of obsolete inventory andensure the inventory included in the listis actually obsolete (R3)
Page 116
What can go wrong? Key control point checklist
Inventory management
Humanitarian aid resource and delivery framework
B.03.4 Physical countTo check that inventory physically exist and are in usable condition
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R4 — Inventory is received and issued duringphysical count (C5)
R5 — Double or uncounted inventory (i.e.,unallocated) during physical count(C6, C7, C8)
Performed by finance and administration manager
C5 — Review receiving and issuance ofinventory report during inventorycount (R4)
Performed by inventory and distribution manager
C6 — Inventory items are stored in an orderlymanner in the warehouse to enable anaccurate count (R5)
Performed by inventory (warehouse staff) andaccounting staff
C7 — Count inventory using staff not usuallyresponsible for its safeguarding (R5)
C8 — Use inventory tags (R5)
Page 117
Inventory management
Humanitarian aid resource and delivery framework
B.03.5 Inventory monitoringTo provide NGO management with an overview of inventory levels and turnover
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Coordinator
Inventory and Distribution Manager
2Prepare MonthlyInventory Report
3Review and give
feedback
from 5 Update the inventory database to reflect goods issued inWorkflow Modeler: B.03.3 Goods Issuance 1
Monitor InventoryTurnoverfrom 7 Verify and approve data on Goods/Services entered into the
system in Workflow Modeler: b.03.2 Receipt of Goods or Services
Page 118
Inventory management
Humanitarian aid resource and delivery framework
B.03.5 Inventory monitoringTo provide NGO management with an overview of inventory levels and turnover
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Activity:1. Inventory and distribution manager should monitor and check the following inventory data from the system: inventory
balance, inventory receipt and issuance, and inventory obsolescence. If there is an anomaly, inventory and distributionmanager should trace the supporting data and inquire with the related departments (e.g., procurement, fieldcoordinator, finance and administration).
2. Inventory and distribution manager prepares monthly inventory report, which consists of (R1):► Inventory on hand and receiving/issuance statistics► Obsolete inventory report
3. Coordinator reviews and gives feedback on monthly inventory report for matters requiring investigation and feedbackby the inventory and distribution manager.
Function(s) involved:► Inventory and distribution manager► Coordinator
Page 119
What can go wrong? Key control point checklist
Inventory management
Humanitarian aid resource and delivery framework
B.03.5 Inventory monitoringTo provide NGO management with an overview of inventory levels and turnover
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Data is inaccurate, incomplete and is notrecorded in a timely basis (C1)
Performed by finance and administration manager
C1 — Ensure all inventory receipt andissuance transactions have beenrecorded in the system prior to themonth-end financial close (R1)
Page 120
Produce and build
Humanitarian aid resource and delivery framework
B.05.1 Planning and schedulingTo plan and schedule the project so that the project objectives are achieved
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Coordinator
Project Manager
4Review and approve
Project Charter
To 1 Monitor the progress of theproject execution in WorkflowModeler: B.05. 2 ProjectExecution & Monitoring
1Form a Project
Committee
2Review Project
Committee
3Prepare Project
Charter
from 5 Submit signed contract s tovendors in Workflow
Modeler: B. 04.5 Contracts
Project Committee
Executive Director/Trustee
Approved?
Approved?
No
Yes
No
Yes
Page 121
Produce and build
Humanitarian aid resource and delivery framework
B.05.1 Planning and schedulingTo plan and schedule the project so that the project objectives are achieved
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Activity:1. Form the Project Committee; members should consist of field coordinator, coordinator, executive director and trustee
representatives (R1).2. Executive director and trustee review and approve the Project Committee structure to ensure that the Project
Committee consists of qualified members.3. A project charter is prepared by the contractor/consultant and agreed by the Project Committee. A project charter
should include project objectives, background, scope, approach, cost analysis and a detailed schedule of projecttiming with milestones (R2).
4. Project Committee reviews and approves project charter.Function(s) involved:► Coordinator► Executive director► Trustee► Project manager► Project committee
Page 122
What can go wrong? Key control point checklist
Produce and build
Humanitarian aid resource and delivery framework
B.05.1 Planning and schedulingTo plan and schedule the project so that the project objectives are achieved
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Project Committee members do nothave the appropriate/relevant skills (C1)
R2 — Project charter does not reflect projectobjectives (C2)
Performed by trustee
C1 — Review relevant skills of ProjectCommittee members (R1)
Performed by Project Committee
C2 — Review project charter to ensure that it isaligned with the project objectives (R2)
Page 123
Produce and build
Humanitarian aid resource and delivery framework
B.05.2 Project execution and monitoringTo execute and monitor the project in accordance with the project charter and NGO policies
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Contractor/Consultant
Project Manager
4Prepares Project
Status Report
2Prepare ProjectProgress Report
from Approved? in Workflow Modeler: B.05.1Planning and Scheduling
3Reviews and analyzesprogress report from
the vendor
1Monitor the progress of
the project execution
Page 124
Produce and build
Humanitarian aid resource and delivery framework
B.05.2 Project execution and monitoringTo execute and monitor the project in accordance with the project charter and NGO policies
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Activity:1. Project manager monitors the project execution progress to be sure that the project is completed as planned. Any
exceptions or deviations to the project execution should be communicated directly to the contractor/consultant (R1).
2. Contractor/consultant prepares project progress report and submits it to the project manager on a regular basis (R2).3. Project manager reviews progress report from the contractor/consultant and analyzes the differences between the
project charter and the project’s actual progress.4. Project manager prepares project status report based on the progress report received from the contractor/
consultant and submits it to the Project Committee.
Function(s) involved:► Project manager► Contractor/consultant
Page 125
What can go wrong? Key control point checklist
Produce and build
Humanitarian aid resource and delivery framework
B.05.2 Project execution and monitoringTo execute and monitor the project in accordance with the project charter and NGO policies
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — The project execution is not in line withthe project charter (C1)
R2 — The progress report fromcontractor/consultant is inaccurate (C2)
Performed by project manager
C1 — Compare project’s actual progress withproject charter (R1)
C2 — Compare progress reports fromcontractor/consultant with the project’scurrent progress (R2)
Page 126
Produce and build
Humanitarian aid resource and delivery framework
B.05.3 Project inspectionTo check that project stages of completion satisfy the project objectives as stated in the project charter
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Contractor/Consultant
Project Manager
2Accept Memorandum ofProject Completion andInspect Actual Project
To 11 in Workflow Modeler:B.09.1 Accounts Payable
3Correct or complete
project phase
1Prepare Memorandum of
Project Completionby Phase
ApproveMemorandum of
ProjectCompletion?
Yes
No
Page 127
Produce and build
Humanitarian aid resource and delivery framework
B.05.3 Project inspectionTo check that project stages of completion satisfy the project objectives as stated in the project charter
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Activity:1. Contractor/consultant prepares memorandum of project completion by phase as certain phases of the project are
finished. Completion of a certain phase of the project may be an indicator for the contractor/consultant to obtainprogress payment from the NGO (R1).
2. Project manager receives memorandum of project completion by phase received from contractor/consultant andinspects the actual progress of the project to ascertain that the particular project phase has been completed (R2).
3. Contractor/consultant corrects or completes project phase.Function(s) involved:► Contractor/consultant► Project manager
Page 128
What can go wrong? Key control point checklist
Produce and build
Humanitarian aid resource and delivery framework
B.05.3 Project inspectionTo check that project stages of completion satisfy the project objectives as stated in the project charter
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Memorandum of project completion isprepared for a phase that has not beencompleted (C1)
R2 — Project manager does not have therelevant expertise for inspecting theproject (C2)
Performed by project manager
C1 — Review memorandum of projectcompletion and compare it to the actualprogress of the project
Performed by Project Committee
C2 — Hire a qualified third-party surveyor toevaluate and confirm project status
Page 129
Produce and build
Humanitarian aid resource and delivery framework
B.05.4 Project amendmentTo properly execute project amendments and revise related documents accordingly
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Project Manager
Project Committee
4Approve changerequest proposal
To 10 in Workflow Modeler:B.04.5 Contracts
3Review change requestproposal from contractor
and propose budgetamendment
1Identifies any changes in
technical design
2Inform contractor for the
required changes
Page 130
Produce and build
Humanitarian aid resource and delivery framework
B.05.4 Project amendmentTo properly execute project amendments and revise related documents accordingly
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Activity:1. Project manager identifies any necessary changes in technical design. Any changes should be approved by Project
Committee (R1, R2).2. Project manager informs contractor/consultant of the required changes.3. Project manager reviews change request proposal to make sure that all required changes are incorporated and
proposes budget amendment.4. Project Committee approves change request and proposed budget amendment.Function(s) involved:► Project manager► Project committee
Page 131
What can go wrong? Key control point checklist
Produce and build
Humanitarian aid resource and delivery framework
B.05.4 Project amendmentTo properly execute project amendments and revise related documents accordingly
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Identification of the changes is nottimely/too late (C1)
R2 — Improper or unnecessary changes in theproject (C2)
Performed by project manager
C1 — Inspect physical progress of the projectregularly and obtain progress report fromcontractor on a timely basis (R1)
C2 — Proposed changes should be approvedby Project Committee (R2)
Page 132
Produce and build
B.05.5 Project acceptance/deliveryTo ensure the project has been completed in accordance with project charter
Humanitarian aid resource and delivery framework
Contractor/Consultant
Project Manager
Project Committee
1Accept Completed
Project
3Prepare Project
Acceptance Letter
Acceptcompletedproject?
No
4Project handover to
the community
To 11 in Workflow Modeler:B.09.1 Accounts Payable
To 10 in Workflow Modeler: B.04.5Contracts
Yes
2Ask vendor to fix the
project in order to complywith the contract
ProjectAcceptance
Letter
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 133
Produce and build
B.05.5 Project acceptance/deliveryTo ensure the project has been completed in accordance with project charter
Humanitarian aid resource and delivery framework
Activity:1. Project manager checks that the completed project has met all required specifications (R1).2. Project manager asks vendor to fix the project in order to comply with the contract.3. Project manager prepares project acceptance letter (R2).4. Project Committee conducts project handover to the community.Function(s) involved:► Contractor/consultant► Project manager► Project Committee
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 134
What can go wrong? Key control point checklist
Produce and build
B.05.5 Project acceptance/deliveryTo ensure the project has been completed in accordance with project charter
Humanitarian aid resource and delivery framework
R1 — Completed project does not meet allrequired specifications (C1, C2)
R2 — Project acceptance letter is prepared forproject that has not been completed (C3)
Performed by project manager
C1 — Inspect the completion of the project andcompare with the contract and projectcharter (R1)
C2 — NGO engages third-party qualifiedsurveyor to evaluate and confirm projectcompletion (R1)
C3 — Review project acceptance letter forcompleteness and sign the projectacceptance letter (R2)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 135
Asset management
B.06.1 Fixed asset requisitionThe requisition of fixed assets is undertaken for necessary items that fulfill the NGO’s objectives
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
User
Financial and Administration Manager 4Check the
availability of thefund to purchasethe fixed assets*
To 1 Obtain and inputvendor data into thesystem in WorkflowModeler: B.04.2Vendor Assessment
1Identify and
determine fixedassets needs
2Prepare List of
fixed asset needs
3Review and
approve the Listof fixed asset
needs
To 4 locate and propose available fixedassets to user in Workflow Modeler: B.06.3Fixed Assets Transfer
Coordinator/Executive Director
Procurement Staff
UsedFixed Assets
available?
Fundsavailable?
Yes
Yes
Procurement Manager
5Identify the
alternative fixedassets
6Prepare PurchaseRequisition (PR)
7PR approval
process
8PR approval process
(depending on internalpolicy for level of
authorization)
from Repair or purchase? inWorkflow Modeler: B.06.6Fixed Assets Maintenance
No
Yes
No
Page 136
Asset management
B.06.1 Fixed asset requisitionThe requisition of fixed assets is undertaken for necessary items that fulfill the NGO’s objectives
Humanitarian aid resource and delivery framework
Activity:1. All users identify and determine their fixed asset needs and submit approved fixed asset requisitions to
GA staff.2. Procurement staff prepares list of fixed asset needs and maintains list of approved fixed asset requisitions.3. Procurement manager reviews and approves the list of fixed asset needs (R1, R2, R3).4. Finance and administration manager checks the availability of funds to purchase the fixed assets.5. Finance and administration manager identifies the alternative fixed assets (e.g., transfer).6. Procurement staff prepares purchase requisition (PR) and obtains approval from procurement manager (R4, R5).7. Procurement manager approves PR.8. Coordinator/executive director approves PR (depending on value of item).Function(s) involved:► User► Procurement staff► Procurement manager► Finance and administration manager► Coordinator► Executive director
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 137
What can go wrong? Key control point checklist
Asset management
B.06.1 Fixed asset requisitionThe requisition of fixed assets is undertaken for necessary items that fulfill the NGO’s objectives
Humanitarian aid resource and delivery framework
R1 — Duplicate requisitions for the same itemare approved (C1)
R2 — Unnecessary requisition for items notconsistent with NGO objectives (C2)
R3 — Unbudgeted fixed assets or actual pricefor fixed assets exceeds budget (C3)
R4 — Unreasonable requisition (C2)
Performed by procurement manager
C1 — Review purchase requisition andcompare with list of approved fixed assetrequisitions (R1)
C2 — Verify and review the reasonableness offixed asset requisitions (R2, R4)
Performed by finance and administration manager
C3 — Compare budget and fixed assetrequisitions (R3)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 138
Asset management
B.06.2 Fixed asset receipt, capitalization and identification tagTo ensure that all purchased fixed assets are a) received in accordance with the purchase order and in good condition, b)capitalized/recorded in accordance with approved accounting policy, and c) registered and tagged for monitoring purposes
Procurement Staff
GA Staff
To 12 inWorkFlowModeler:B.11.1Journal Entry
1Compare and check
the fixed assetsreceived
3Prepare Goods
Receiving Report
4Determine whether thefixed assets should becapitalized or expensed
User
Inventory (Warehouse) Staff
Acceptor not?
Yes
Financial & AdministrationManager
No 2Return fixed
assets to vendor
7Sign Fixed AssetsDeployment Form
5Determine the
classification of thefixed assets
6Check, print out andattach the identifying
tag number to therelated fixed assets
8Update the fixed assetsregister and match with
Fixed AssetsDeployment Form
9Review and approvefixed assets register
periodically
To 12 in WorkflowModeler: B.11.1Journal Entry
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Humanitarian aid resource and delivery framework
Page 139
Asset management
B.06.2 Fixed asset receipt, capitalization and identification tagTo ensure that all purchased fixed assets are a) received in accordance with the purchase order and in good condition, b)capitalized/recorded in accordance with approved accounting policy, and c) registered and tagged for monitoring purposes
Humanitarian aid resource and delivery framework
Activity:1. Procurement staff compares fixed assets received with POs and checks the condition of fixed assets (R1, R2, R3, R4,
R5, R6, R7).2. Procurement staff returns rejected fixed assets to vendor.3. Inventory (warehouse) staff prepares goods receiving report.4. Finance and administration manager determines whether the fixed assets should be capitalized or expensed in
accordance with fixed assets capitalization policy (R4).5. Finance and administration manager determines the classification of the fixed assets (office equipment, vehicles, etc.)
in accordance with organizational policies (R4).6. GA staff checks, prints out and attaches identifying tag number to the related fixed assets.7. Users sign fixed assets deployment form to show they have taken custody of the fixed assets.8. Accounting staff updates the fixed assets register and matches it with the fixed assets deployment form.9. Finance and administration manager periodically reviews and approves fixed assets register.Function(s) involved:► Procurement staff► Inventory (warehouse) staff► GA staff► Accounting staff► Finance and administration manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 140
What can go wrong? Key control point checklist
Asset management
B.06.2 Fixed asset receipt, capitalization and identification tagTo ensure that all purchased fixed assets are a) received in accordance with the purchase order and in good condition, b)capitalized/recorded in accordance with approved accounting policy, and c) registered and tagged for monitoring purposes
Humanitarian aid resource and delivery framework
R1 — Accepted fixed assets do not agree withPO (in quantity and specification) and/orare not in good condition (C1)
R2 — Purchases are received but fixed assetsare not recorded (C2, C5)
R3 — Fixed assets are not properly classified(C3)
R4 — Fixed assets capitalized are not inaccordance with fixed assetscapitalization policy (C3)
Performed by procurement manager
C1 — Verify the quantity, specification andcondition of fixed assets receivedagainst PO (R1)
C2 — Prenumbered goods receiving report iscompared with POs and DOs (R2)
Performed by finance and administration manager
C3 — Review the classification andcapitalization of fixed assets (R3, R4)
C5 — Review fixed assets register on aperiodic basis (R2, R5, R6, R7)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 141
What can go wrong? Key control point checklist
Asset management
B.06.2 Fixed asset receipt, capitalization and identification tagTo ensure that all purchased fixed assets are a) received in accordance with the purchase order and in good condition, b)capitalized/recorded in accordance with approved accounting policy, and c) registered and tagged for monitoring purposes
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R5 — Multiple numbering of a fixed asset(C4, C5, C6)
R6 — One number for several fixed assets(C4, C5, C6)
R7 — Fixed assets register is not updated andis inaccurate (C5, C6)
Performed by finance and administration manager
C4 — System will reject an already usednumber used or fixed assets alreadynumbered (R5, R6)
C5 — Review fixed asset register on a periodicbasis (R2, R5, R6, R7)
Performed by accounting staff
C6 — Perform periodic physical inspection andcompare the result to the fixed assetsregister (R5, R6, R7)
Page 142
Asset management
B.06.3 Fixed asset transfersTo properly record and monitor fixed assets transfers between users
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
GA Staff
To 1 Summarize fixed assets to bedisposed in Workflow Modeler: B.06.4
Fixed Assets Disposal
2Check the
condition of thefixed assets
User
Inventory (Warehouse) Staff
Reusable?
No
Financial & AdministrationManager
Yes3Update the fixed
asset register
7Release assigned
fixed assets
9Review and
approve fixedassets register
periodically
1Return fixed
assets that are nolonger use
8Update the fixedassets register
6Sign fixed assetsdeployment form
5Reviews and
approves FixedAsset Transfer
Form
4Locate and
propose availablefixed assets to
userfrom UsedFixed Assetsavailable? in
WorkflowModeler: B.06.1
Fixed AssetsRequisition
Yes
Page 143
Asset management
B.06.3 Fixed asset transfersTo properly record and monitor fixed assets transfers between users
Humanitarian aid resource and delivery framework
Activity:1. Old users return fixed assets that they no longer use to GA department.2. GA staff checks the condition of the fixed assets.3. GA staff updates the fixed assets register and sends to warehouse: user name = none/unassigned.4. GA staff locates and proposes available fixed assets to user by submitting fixed assets transfer form to finance and
administration manager for approval (R1).5. Finance and administration manager and coordinator (if necessary) review and approve fixed asset transfer form.6. New users sign fixed assets deployment form.7. Inventory (warehouse) staff releases assigned fixed assets (R1).8. GA staff updates the fixed assets register and matches with fixed assets deployment form (R2).9. Finance and administration manager reviews and approves fixed assets register periodically.Function(s) involved:► User► GA staff► Finance and administration manager► Inventory (warehouse) manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 144
What can go wrong? Key control point checklist
Asset management
B.06.3 Fixed asset transfersTo properly record and monitor fixed assets transfers between users
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Transferred fixed assets are notapproved by authorized persons (C1)
R2 — Users’ names and departments are notupdated in fixed assets register (C2)
Performed by inventory (warehouse) staff
C1 — Verify fixed asset transfer form that isalready signed off by finance andadministration manager (R1)
Performed by accounting staff
C2 — Perform periodic physical inspection andcompare the result to the fixed assetsregister (R2)
Page 145
Asset management
B.06.4 Fixed asset disposalsFixed asset disposals of unused or obsolete items are undertaken on a timely basis and enable the NGO to receive adisposal price indicative of the asset’s current value and condition
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
GA Staff
Finance and AdministrationManager
Coordinator
2Review and
approve fixedasset to bedisposed
5Dispose/sell
the fixed assets
To 1 fund transfers in WorkflowModeler: B.02.1 Bank Receipts
3Determine theresale value of
the fixedassets
Accounting Staff
1Summarize fixed
assets to bedisposed
6Update fixedasset register
4Review and
approve fixedasset
(incl. resale value)
To 14 in Workflow Modeler: B.11.1Journal Entry
from 4 Prepare report of FA inspectionresult in Workflow Modeler: B.06.5
Fixed Assets Physical Inspectionfrom Reusable? in Workflow Modeler:
B.06.3 Fixed Assets Transfer
Page 146
Asset management
B.06.4 Fixed asset disposalsFixed asset disposals of unused or obsolete items are undertaken on a timely basis and enable the NGO to receive adisposal price indicative of the asset’s current value and condition
Humanitarian aid resource and delivery framework
Activity:1. GA staff summarizes fixed assets to be disposed and submits to finance and administration manager for approval
(R1, R2, R3, R4).2. Finance and administration manager reviews and approves fixed assets to be disposed (R2).3. Finance and administration manager determines the resale value of the fixed assets (R5).4. Coordinator reviews and approves fixed assets to be disposed (including resale value).5. Finance and administration manager disposes/sells the fixed assets of high value through tender process (R5).6. GA staff updates fixed assets register, and accounting staff records to journal entry (R6).Function(s) involved:► GA staff► Accounting staff► Finance and administration manager► Coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 147
What can go wrong? Key control point checklist
Asset management
B.06.4 Fixed asset disposalsFixed asset disposals of unused or obsolete items are undertaken on a timely basis and enable the NGO to receive adisposal price indicative of the asset’s current value and condition
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Fixed assets are disposed withoutapproval (C1)
R2 — Rationale for disposing fixed assets isnot reasonable (C1, C2)
R3 — Fixed asset disposals are recordedwithout proper documentation (C3)
R4 — Fixed assets to be disposed can still beused by other departments (C1, C2)
R5 — Fixed asset to be disposed is grosslyundervalued (C4)
R6 — Fixed assets register is not updated toreflect fixed assets disposal (C5)
Performed by finance and administration manager
C1 — Review and approve disposal of fixedassets (R1, R2, R4)
C2 — Review the condition and usage of fixedassets to be disposed (R2, R4)
C3 — Review the disposal journal entry andrelated supporting document (R3)
C4 — Resale value is determined based on themarket value and/or through tenderprocess (R5)
C5 — Periodic physical inspection and theresult compared to the fixed assetsregister (R6)
Page 148
Asset management
B.06.5 Fixed asset physical inspectionTo check that fixed assets per the register physically exist and are in a usable condition
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Finance & AdministrationManager
GA Staff andAccounting Staff
2Perform physical
inspection
4Prepare report of FA
inspection result
To 1 Summarize fixed assets to bedisposed in Workflow Modeler: B.06.4Fixed Assets Disposal
3Perform reconciliation and
update fixed assetregister
1Prepare Fixed AssetsInspection Instruction
5Review and
approves theexception report
To 12 in Workflow Modeler:B.11.1 Journal Entry
Page 149
Asset management
B.06.5 Fixed asset physical inspectionTo check that fixed assets per the register physically exist and are in a usable condition
Humanitarian aid resource and delivery framework
Activity:1. Finance and administration manager prepares fixed asset inspection instruction.2. GA staff and accounting staff perform physical inspection on regular basis based on fixed assets inspection
instructions and fixed assets register (R1, R2, R3, R4, R5).3. GA staff and accounting staff perform reconciliation between fixed assets register, accounting record and physical
check, and they update the condition, location and user of fixed asset in fixed assets register.4. GA staff and accounting staff prepare report of fixed assets inspection result, identifying any damaged/obsolete fixed
assets (R5).5. Finance and administration manager reviews and approves the exception report for any remaining unexplained
differences and instructs accounting staff to make the appropriate adjustment.Function(s) involved:► GA staff► Accounting staff► Finance and administration manager
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 150
What can go wrong? Key control point checklist
Asset management
B.06.5 Fixed asset physical inspectionTo check that fixed assets per the register physically exist and are in a usable condition
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Fixed asset not in location at time ofphysical inspection (C1, C3)
R2 — Fixed asset has no tag number or code(C1)
R3 — Inaccurate fixed assets register (C2)
R4 — Double-counted or uncounted fixedasset during physical inspection (C2,C4)
R5 — Damaged and idle fixed assets were notidentified during the physical inspectionand hence the carrying value has notbeen adjusted (C1, C4)
Performed by GA staff and accounting staff
C1 — Check fixed asset location, condition anduser in accordance with the fixed assetsregister and ensure all fixed assets havetag number or code in accordance withthe fixed assets register (R1, R2, R5)
C2 — Reconcile periodically between fixedassets register and accounting record(R3, R4)
C3 — Trace to log book (R1)
C4 — Fixed assets instruction is detailed andclear (R4, R5)
Page 151
Asset management
B.06.6 Fixed asset maintenanceTo properly organize the maintenance activities for fixed assets so they can be used effectively for the full period of theirestimated useful life
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
User
Finance and AdministrationManager
Coordinator
2Determine the cost
estimation for the repairand maintenance
To 1 Identify and determine fixed assets needs inWorkflow Modeler: B.06.1 FixedAssets Requisition
Procurement Manager
1Propose maintenance
services of fixed assets
3Reviews and approvesthe schedule of fixed
asset maintenance andcost estimation
4Contacts the service
provider to service thefixed assets
Repair orpurchase?
Repair
Purchase
To 11 in Workflow Modeler: B.09.1Accounts Payable
Page 152
Asset management
B.06.6 Fixed asset maintenanceTo properly organize the maintenance activities for fixed assets so they can be used effectively for the full period of theirestimated useful life
Humanitarian aid resource and delivery framework
Activity:1. Users propose maintenance services of fixed assets to finance and administration manager (R1, R2).2. Finance and administration manager determines the cost estimation for the repair and maintenance, compares the
cost of repair and maintenance with the cost of new asset, and submits assessment to coordinator for approvals.3. Coordinator reviews and approves the schedule of fixed asset maintenance and cost estimation (R3).4. After obtaining approval from the coordinator, procurement manager contacts the service provider to service the
fixed assets.Function(s) involved:► Users► Finance and administration manager► Procurement manager► Coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 153
What can go wrong? Key control point checklist
Asset management
B.06.6 Fixed asset maintenanceTo properly organize the maintenance activities for fixed assets so they can be used effectively for the full period of theirestimated useful life
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Fictitious proposed repair andmaintenance (C1)
R2 — Maintenance of fixed assets is not inproper period (C1)
R3 — Wrong analysis in deciding repair orpurchase (C2)
Performed by GA staff and accounting staff
C1 — Finance and administration managercompares the budget for repair andmaintenance with the cost estimationand also reviews the timing andreasonableness of the cost (R1, R2)
C2 — Coordinator compares the cost of repairand maintenance with cost for thepurchase of new assets (R3)
Page 154
Budget and analysis
B.13.1 Budget analysisTo monitor actual results compared with budgeted amount, communicating the budget analysis to the NGO executivedirector and trustee
Humanitarian aid resource and delivery framework
from 4 Review and approve in WorkflowModeler: B.01.1 Budget Preparation
1Prepares budgetanalysis monthly
2Communicate budget
analysis to the Financeand Administration
Manager and ExecutiveDirector
Finance Staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 155
Budget and analysis
B.13.1 Budget analysisTo monitor actual results compared with budgeted amount, communicating the budget analysis to the NGO executivedirector and trustee
Humanitarian aid resource and delivery framework
Activity:1. Finance staff prepares budget analysis on a monthly basis. The budget compared to actual performance report takes
budgeted income and expenditure for the reporting period and compares it with the actual income and expenditure forthe same period. The difference between the two figures is the “variance” and should be investigated if significant.Significant differences between budget and actual results should be investigated by the finance staff through therelevant department (e.g., field coordinator, inventory and distribution, procurement).The budget analysis should include a narrative report that describes the reasons for the most significant variancesfrom the budget for the period (R1).
2. Finance staff communicates budget analysis to the executive director and trustee to enable them to monitor progressof the NGO’s aid programs and make decisions about the future management of the organization.
Function(s) involved:► Finance staff
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 156
What can go wrong? Key control point checklist
Budget and analysis
B.13.1 Budget analysisTo monitor actual results compared with budgeted amount, communicating the budget analysis to the NGO executivedirector and trustee
Humanitarian aid resource and delivery framework
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
R1 — Data is inaccurate, incomplete and nottimely (C1, C2)
Performed by finance and administration manager
C1 — Review and approve data to be used byfinance staff in budget analysis to ensuredata is accurate, complete andtimely (R1)
C2 — Review and approve the budgetcompared to actual performance reportand the sufficiency of the reasons givenfor significant variances in the narrativereport (R1)
Page 157
Recipient receipt
C.02.2 Recipient satisfaction surveyTo obtain feedback from the recipients on the relief aid they are receiving from the NGO, from which the NGO candetermine whether it has achieved its goals and objectives
Humanitarian aid resource and delivery framework
from 2 Generate a List of RecipientAddress per Area in Workflow Modeler:
B.08.1 Delivery Scheduling
1Distribute
questionnaire/interview
2Summarize
Questionnaire andInterview Results
Field Community Staff
Field Coordinator
3Analyze
Survey Results
To 3 Budget preparation in WorkflowModeler: B.01.1 Budget Preparation
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 158
Recipient receipt
C.02.2 Recipient satisfaction surveyTo obtain feedback from the recipients on the relief aid they are receiving from the NGO, from which the NGO candetermine whether it has achieved its goals and objectives
Humanitarian aid resource and delivery framework
Activity:1. Field/community staff distributes questionnaires to recipients to assess their satisfaction with the goods/
services provided to them by the NGO and whether those fulfill their needs. If recipients cannot read or write, theyshould be interviewed directly (R1, R2, R3).
2. Field/community staff summarizes questionnaire and interview results in order to gain an understanding of the level ofsatisfaction with the goods/services the NGO has provided to the community. Some of the criteria that can be used forsummarizing the results may be (R2, R4):► Quality of goods/services provided► Timeliness of aid received► Whether the aid fulfills recipients’ needs
3. Field coordinator analyzes the survey results and discusses the results with the coordinator and trustee in order toascertain whether the recipients have received the goods/services they have requested. The survey results also canbe used for making decisions about varying the type of relief goods/services provided. This forms an input for planningadditional fund requisitions and in preparing proposed budget for the next period.
Function(s) involved:► Field/community staff► Field coordinator
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 159
What can go wrong? Key control point checklist
Recipient receipt
C.02.2 Recipient satisfaction surveyTo obtain feedback from the recipients on the relief aid they are receiving from the NGO, from which the NGO candetermine whether it has achieved its goals and objectives
Humanitarian aid resource and delivery framework
R1 — Questionnaires are biased and thechoices for answers are limited (C1)
R2 — Recipients do not answer truthfully (C2)
R3 — Questionnaires are not returned orreturned blank (C1)
R4 — Survey results are inaccurate because ofmistakes made in summarizing thequestionnaire or interview results(C2, C3)
Performed by field coordinator
C1 — Review questionnaires prepared by thefield/community staff and check that therecipients provide explanations to theiranswers (R1, R3)
C2 — Review the recipients’ responses forreasonableness, i.e., compare theresponses of one recipient to another(R2, R4)
C3 — Review the clerical accuracy of theworksheets used to summarize data bychecking against supportingquestionnaires on a sample basis (R4)
B.03 Inventory Management
B.07 Human Res our ce Mgmt.
B.08 Delivery
Acc ounting Reporting( Financial/Mgmt) Bu
dget
and
Anal
ysis
Recipient Requis ition Recipient Receipt
Budget P reparationand Requisition
Approval
Funding and Donation Mechanisms
Rece
ipt
Cyc
le
B.02 Cash Receipts
Donor Objectives/Goals
Exp
endi
ture
Cyc
le
Petty
Cash
Cash
Disb
urse
men
t
Reac
quis
ition
Cyc
le
B.05 Produc e/Bui ld
B.04 Purc hase
B.06 Assets Management
A.01
A.02
B.01
B.12 B.13
C.02C.01
B.09
B.10
Core modules
B.11
Page 160
“Pick List”
Humanitarian aid resource and delivery framework
Page 161
Tailoring the guide for your organization
Humanitarian aid resource and delivery framework
Answer Yes/No to the questions in the Pick List Pick List�
What are the typeresources that your areallocated or received?
Applies toour NGO?(Yes or No
Relevantmodule
Relevantprocess(es)
Allocated monies aretransferred or received
Yes Cash receipts B.02.1 Bankreceipts
Allocated/donated goods orservices are received
Yes Inventorymanagement
B.03.2 Receipt ofgoods or services
Select the appropriate modules/processes as indicated Core modules�
Cash receipts Petty cash
Bank Receipts Petty cash payment andreplenishment
Inventory management Accounting
Receipt of goods or services
Remap the framework indicating only the modulesrequired
Humanitarianaid resourceand deliveryframework
�
As a guide, EY has developed a “Pick List” to captureoperational factors that would indicate what modules areappropriate and should be adopted.How to use the “Pick List”The “Pick List” will ask you to answer some simplequestions about your organization. Different modules willbe recommended depending on the responses you give.
Find the “Pick List” in the Framework manual andanswer Yes to each question that is applicable toyour NGO.Look at the list of modules (core or expanded) andfind the module or modules that match eachaffirmatively answered question.Gather the applicable modules and remaptheframework by highlighting only those that youwill need.
This will be your guide for selecting the applicableprocesses and procedures for implementation. Be sure toinclude the recommended internal control points as well.
3
1
2
Page 162
“Pick List”
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No) Relevant module Relevant process(es)
What are the sources of your findings or donations?
We receive donations from individual donors Yes Funding and donationmechanism
We receive cash directly Yes A.02.1 Funding and donation mechanism
We receive bank transfers or accept credit card Yes A.02.1 Funding and donation mechanism
We receive goods or services Yes A.02.1 Funding and donation mechanism
We receive donations from institutional donors Yes Funding and donationmechanism
We receive cash directly Yes A.02.1 Funding and donation mechanism
We receive bank transfers Yes A.02.1 Funding and donation mechanism
We receive goods or services Yes A.02.1 Funding and donation mechanism
Page 163
“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No) Relevant module Relevant process(es)
What do you do to request for funding or prepare a budget?
We analyze or try to understand the needs of therecipients
Yes Budget preparation andrequisition approval,Recipient requisitionand recipient receipt
C.01.1 Recipient requisition of goods or servicesC.01.2 Recipient receipt of goods or servicesB.01.2 Recipient data maintenance
We prepare proposals or budgets for our proposedhumanitarian aid
Yes Budget preparation andrequisition approval andRecipient requisition
C.01.1 Recipient requisition of goods or servicesB.01.1 Budget Preparation
We prepare requests for additional funding Yes Budget preparation andrequisition approval andRecipient requisition
C.01.1 Recipient requisition of goods or servicesB.01.1 Budget Preparation
What are the type resources that your are allocated or received?Allocated monies are transferred or received Yes Cash receipts B.02.1 Bank Receipts
Allocated/donated goods or services are received Yes Inventory management B.03.2 Receipt of Goods or Services
Page 164
“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No) Relevant module Relevant process(es)
What are the different kinds of payments that you make?
We make payments for goods or materials Yes Cash disbursement B.09.1 Accounts payableB.09.2 Bank payment
We make payments for services Yes Cash disbursement B.09.1 Accounts payableB.09.2 Bank payment
We give funds or donations to other charitableorganization
Yes Cash disbursement B.09.2 Bank payment
We make payments for human resources/employees Yes Cash disbursement B.09.2 Bank payment
We make payments for capital assets Yes Cash disbursement B.09.1 Accounts payableB.09.2 Bank payment
What type of people you employ or contractor for?
We hire full or part-time employees Yes Human resourcemanagement
B.07 Human resources management — allprocesses
We hire contractors or temporary employees Yes Human resourcemanagement
B.07 Human resources management — allprocesses
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“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No) Relevant module Relevant process(es)
What are the different types of things that you purchase?
We purchase goods, materials or supplies … Yes Purchase and inventorymanagement
For our operations Yes B.04 Purchases — all processes andB.03 Inventory management — all processes(if necessary)
For our humanitarian aid Yes B.04 Purchases — all processes andB.03 Inventory management — all processes(if necessary)
For conversion, production or building Yes B.04 Purchases — all processes andB.03 Inventory management — all processes(if necessary)
We purchase services … Yes Purchase
From subcontractors Yes B.04 Purchases — all processes
From logistics Yes B.04 Purchases — all processes
From other service providers Yes B.04 Purchases — all processes
Page 166
“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No) Relevant module Relevant process(es)
What are the different types of things that you purchase? (contd)
We purchase other things, such as … Yes
Electricity, water, gas or other utilities Yes Cash disbursement B.09.1 Account payable
The rent of our office, warehouse or other facilities Yes Cash disbursement B.09.1 Account payable
Other things of small amounts or value Yes Petty cash B.10.1 Petty cash and replenishment
We purchase fixed or capital assets Yes Purchase and assetmanagement
B.04 Purchases — all processesB.06 Asset management — all processes
What other activities do you do?
We store goods (and inventory them) Yes Inventory management B.03 Inventory management — all processes
We track (or inventory) services that have beendonated
Yes Inventory management B.03 Inventory management — all processes
We build or produce things Yes Produce/Build B.04 Purchases — all processesB.05 Build/produce — all processes andB.03 Inventory management — all processes(if necessary)
We own/manage fixed or capital assets Yes Asset management B.06 Asset management — all processes
We deliver/transport goods, services or people fromcentral locations or suppliers into the field
Yes Delivery and inventorymanagement
B.08 Delivery — all processes andB.03.3 Goods issuance (if necessary)
We distribute goods or services to recipients Yes Recipient receipt C.02.01 Recipient receipt of goods or services
Page 167
“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No) Relevant module Relevant process(es)
What type of accounting, reporting and analysis do you do?
We prepare and accounts for our activities Yes Accounting B.11.1 Journal entriesB.11.2 Reconcilliation
We prepare financial and/or managerial reports of ouractivities
Yes Accounting andreporting
B.11.2 ReconcilliationB.12.1 Closing and reporting
We analyze or try to understand the needs of therecipients
Yes Budget preparation andrequisition approval,Recipient requisitionand recipient receipt
C.01.1 Recipient requisition of goods or servicesC.01.2 Recipient receipt of goods or servicesB.01.2 Recipient data maintenance
We analyze variances between our budget andactual amounts
Yes Accounting, reportingand Budget andanalysis
B.11.2 ReconcilliationB.12.1 Closing and reportingB.13.1 Budget analysis
We try to understand (and improve) the quality ofour service
Yes Recipient receipt C.02.2 Recipient satisfaction survey
Page 168
“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No)
Estimated transactionvolumes
Manual vs. computer-based accountingsystem
What kind of accounting records do I need?
The volume of my transactions …
For receipts are
Yes Less than 12/year Manual-based accounting system may besufficient
Yes Equal to or more than12/year
Consider using a computer-based accountingsystem
For disbursements are
Yes Less than 60/month Manual-based accounting system may besufficient
Yes Equal to or more than60/month
Consider using a computer-based accountingsystem
For purchasing are
Yes Less than 40/month Manual-based accounting system may besufficient
Yes Equal to or more than40/month
Consider using a computer-based accountingsystem
For payroll are
Yes Less than 15/month Manual-based accounting system may besufficient
Yes Equal to or more than15/month
Consider using a computer-based accountingsystem
Page 169
“Pick List” (contd)
Humanitarian aid resource and delivery framework
Read through the list of statements below. If the statement applies to your organization, indicate YES in the check boxand refer to the relevant module and process(es).
Applies toour NGO?(Yes or No)
Estimated transactionvolumes
Manual vs. computer-based accountingsystem
What kind of accounting records do I need? (contd)
The volume of my transactions … (contd)
For warehousing are
Yes Less than 50/month Manual-based accounting system may besufficient
Yes Equal to or more than50/month
Consider using a computer-based accountingsystem
For distribution/delivery are
Yes Less than every day Manual-based accounting system may besufficient
Yes Equal to or more thanevery day
Consider using a computer-based accountingsystem
Towards recipients are
Yes Less than 100/day Manual-based accounting system may besufficient
Yes Equal to or more than100/day
Consider using a computer-based accountingsystem
Page 170
For more information
Humanitarian aid resource and delivery framework
Adlai GoldbergMaagplatz 1Zurich 8005 SwitzerlandP: +41 58 286 44 88F: +41 58 286 3004E: [email protected]
Page 171
Thank you
Humanitarian aid resource and delivery framework
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