ML FINAL SSF FY 09

8/14/2019 ML FINAL SSF FY 09

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MEMORANDUM OF INTERNALACCOUNTING CONTROLS

FOR THE PERIODSEPTEMBER 01 2008 TO AUGUST 31 2009


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MEMORANDUM ON REVIEW OF INTERNAL ACCOUTING CONTROLS

CONTENTS Pages

1. FINANCIAL REPORTING 11.1 Monthly financial reports for management 1

1.2 Recording and documentations of financial transactions 1

2. FIXED ASSETS 22.1 Fixed assets listing 2

3. CASH RECEIPTS 3

3.1 Documentation of income 3

3.2 Official receipt 3

3.3 No account description 4

4. EXPENSES 4

4.1 No Approval on the voucher 4

4.2 No Address or Phone number on the receipt 5

4.3 No distribution list 7

4.4 No stamp Paid 8

4.5 Price quotations 8

4.6 No approved by on the voucher 9

4.7 Non preparation of loan agreement for the beneficiary 10

4.8 Non preparation of finance voucher 10

4.9 No description of expenses in the system 12

4.10 Non preparation of rice monitoring register or logbook 14

4.11 Lost receipts and invoices 14

5. PAYROLL 16

5.1 Employment contracts 16

5.2 Pay slips 16

5.3 Payroll summary 17


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1. FINANCIAL REPORTING AND RECORDING

1.1 Monthly financial reports for the management

Observation

During our examination we noted that the Accountant does not prepare monthly financial reportfor the management. Therefore the management was not able to monitor the income, expensesand fund balance properly. In addition, there was no fund reconciliation made with the actualcash on hand and cash in bank; hence it is difficult to determine the correctness of the fundbalance of projects of the Organization.

Recommendation

We recommend that the Accountant should prepare monthly project financial statementschecked and approved by the ED or other senior personnel for submission to the management.

These financial reports should consist of the Balance Sheet, Statement of Receipts,Disbursements and Fund Balance and supporting schedules like bank reconciliations and otherimportant schedules. These reports should be printed out, signed as prepared by the AS,checked and approved by the CEO or other senior personnel. A copy of the financial reportshould be submitted to the management and another copy will be filed at the accounting roomfor future checking and verification of the accounts by the management and external parties.

Financial Reports should be comprehensive and easy to read for management to effectivelymonitor the finances of the Organization. Moreover, financial report is a good financial tool in

assessing and reviewing the Organizations results of operations and financial position.

Management Comment

SSF agreed with the recommendation. The reason wasnt produced the monthly financial reportdue to SSF accountant was part-time employed and she was recruited later than three-month thefinancial year began. She needs to review and learn everything about SSF accounting systembefore she could handle the position. Another importantly, before 2009 financial year SSFhadnt accountant so all accounting data is on paper basis.

1.2 Recording and documentation of financial transactions

Observation

We noted that during our examination the Accountant does not record the financial transactionson time or a regular basis. Therefore the recording was delayed and the financial reports for theyear were not prepared on time. At the time of audit, the financial reports were still beingprepared by the Accountant. According to the Executive Director (ED) the financial reports aredelayed because the Accountant only works part time because there was no budget for a fulltime work and the financial transactions are not a lot.


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In addition, the Accountant does not also write the reference numbers on the payment voucherstherefore it is difficult to trace the expenses from the accounting system to the vouchers andsupporting documents and vice versa.

Recommendation

We recommend that the Accountant should ensure that financial transactions are recorded ontime, so that monthly financial reports are prepared promptly especially during year end closing.Through this the management will be able to monitor the finances of the Organization and makeproper and wise decision.

We also suggest that the Accountant should assign reference numbers on accounting or paymentvouchers so that all expenses recorded in the system are traceable to the vouchers andsupporting documents for management and external parties verifications. The Accountant canassign codes before the number to facilitate easy tracing of project expenses to the supporting

documents.

Management Comment

Agreed. This will be improved at 2010 financial year. Before 2009 financial year SSF didnthave accountant so everything was messy and sooner the accountant was recruited sooner shetried to put everything into a system.

2. FIXED ASSETS

2.1 Fixed assets listing

Observation

The Organization does not maintain its fixed asset register since the start of the Organizationphysical count made on the assets of the Organization.

Recommendation

We recommend that the Organization should prepare a fixed asset register that contains thedetailed information of the asset and this should be checked or verified by senior personnel forcounter checking of the records. The fixed asset register should include the date of purchase,

brand names or details of the asset, location of the assets and condition of the assets. Detailedschedules will provide effective control over fixed assets in keeping track of all fixed assetsacquired, sold, transferred or donated. These records would also facilitate identification ofphysical existence of fixed assets.Physical asset count should also be performed at least once a year and the list should be updatedwith relevant information from time to time. After the count is performed, the list should besigned by the staff that counted and checked by the staff who witnessed the count. The fixed


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asset list should then be kept in accounting and a copy should be given to the Project Manageror Chairman of the Executive Committee for counter checking, verification and reference.

Management Comment

Agreed. Due to lack of human resources and even the Executive Director was volunteered withhis position. He was also the founder of the organization so he needs to work with anotherorganization to raise SSF. When SSF has a minimum budget for hiring the executive directorand other staff therefore everything will be one time and accuracy.

3. CASH RECEIPTS

3.1 Documentation of income

Observation

During our test of cash receipts we noted that the Accountant does not prepare the Income orAccounting Voucher to document the fund donations received since the start of theOrganization. The Accountant just records the income directly in the accounting system andthere was no proper documentation made to support the recording in the system.

Recommendations

We recommend that the Organization should prepare the voucher for all income or donationreceived by the Organization. This is to ensure that all funds received by the Organization have

been properly recorded and approved by the Director.

Management Comment

Agreed. Need to be improved against this recommendation starting from 2010 financial year

3.2 Official receipt

Observation

We noted that the Organization does not issue the official receipt for every income or donationreceived by the Organization during the year. Hence there was no complete accountability of theincome received by the Organization.

Recommendation

We recommend that Official Receipts should be issued to all income or donations received bythe Organization. Official receipts should be pre-numbered and prepared in three copies one forthe donor and another copy should be attached to the journal voucher and another copy shouldbe retained in the receipt book for reference and monitoring. The Official receipt should then bekept in the lock cabinet and be maintained with a logbook or register to account the usage of


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Official Receipts. This is to ensure that all funds received by the Organization has been properlyrecorded and accounted for usage of the Official Receipts.

Management Comment

Agreed. This will need to improve in 2010 financial year. At the beginning due to we wouldlike to reduce paper work while we have lacked human resource so we decided only recordwithin database system.

3.3 No account description

Observation

During our test of receipts we observed that the Accountant records the income in the system

but does not indicate the accounts description therefore there is no sufficient detail of incomereceived by the Organization. The Management cannot immediately identify the nature anddetails of the income received until it is being traced or verified in the supporting documents.

Recommendation

We recommend that the Accountant should always indicate the accounts description in thesystem in order that all income received have sufficient information of the income received inthe system for immediate verification of the income received by the management and externalparties like donors and auditors. The system has the sufficient information to accountcompletely all the income received of the Organization.

Management Comment

In fact, SSF has account description but due to we store them in different sheets so Accountwasnt submitted to the auditor at the same time request was made. SSF will try to consolidatethem into a system where easily to access by third persons in the future.

4. EXPENSES

4.1No Approval on the voucher

Observation

During our test of disbursements we observed that most of the payment vouchers have noindication that the expenses were approved by the Director. Details of non approval of expenseson the vouchers are as follows:

No Date Description Account Name USD KHR

1 3-Sep-08Digital camera (FUJI S-

5800)Office

equipment/furniture$ 334.00


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2 26-Apr-09

Hand pump installation andplatform constructions in

Krang Lhong VillageSamrong Tong District

Kampong Speu Province

Water and sanitationfacilities( ring-well,cement, etc.) support

$1,800.00

3 26-Apr-09 Purchased sugar and oilVegetable/meat/spice& ingredient/drinking

water180,000.00

4 23/05/09 Purchase water jarsCooking/kitchen

utensils184,000.00

5 5-Jul-09 Expense for label marking Signs or label making $ 50.00

Total $ 2,184.00 R 364,000.00

Recommendations

We recommend that all expenses should be approved first before payment is made. No cashshould be paid out unless proper approval has been obtained. If the approving officer is notaround and expenses needs to be paid, a verbal approval should be obtained first through phoneand signature should be obtained later. This is to ensure that expenses paid and recorded areproperly authorized.

Management Comment

Agreed. SSF will need to improve on this matter when we have enough human resources sitting in thepositions. All payments without signed approval so far because those expenses were made directly bythe Executive Director while insufficient staff.

4.2 No Address or Phone number on the receipt

Observation

We noted during our test of disbursements the following expenditures have no address orcontact numbers of the seller or vendor:


1 5-Sep-08 phone cardsTelephone calls and

communication15.00

2 30-Oct-08 School Uniforms School Uniforms 328,000.00

3 30-Oct-08 Sport Clothes Sport Clothes 289,500.004 30-Oct-08 Footwear Footwear 275,000.00

5 12-Nov-08Purchased dishes, spoon,

ladle.ect..Cooking/kitchen

utensils22.00 75,500.00

6 20-Nov-08 (Vegetable, Meat, Spices)Vegetable/meat/spice &

ingredient/drinkingwater

42,300.00

7 29-Nov-08 (Vegetable, Meat, Spices)Vegetable/meat/spice &


41,900.00

8 21-Jan-09 Crop seeds support and Crop seeds support 145,000.00


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water sprinkler

9 1-Feb-09 (Vegetable, Meat, Spices)Vegetable/meat/spice &


50,500.00

10 5-Feb-09Purchased cement,reinforced concrete

pipe..

Training materialssupply (makers, IEC,

flip-chart and ect.)179,000.00

11 16-Feb-09 (Vegetable, Meat, Spices)Vegetable/meat/spice &


63,900.00

12 28-Feb-09Purchased net

,hoc,meter,nail,saw andtrap

Trainingequipment/furniture

129,500.00

13 17-Apr-09

Purchased bamboo ,small wood , thatch and

transport cost for chicken

cage construction

Life-skills cost 497,000.00

14 8-Jul-09100 mosquito nets

($5/100)Mosquito nets 500.00

15 25-Jul-09 (Vegetable, Meat, Spices)Vegetable/meat/spice &


44,500.00

16 27-Jul-09 (Vegetable, Meat, Spices)Vegetable/meat/spice &


63,000.00

17 2-Aug-09Vegetable/meat/spice &


55,300.00

18 8-Aug-09 (Vegetable, Meat, Spices)

Vegetable/meat/spice &


66,600.00

19 25-Aug-09 (Vegetable, Meat, Spices)Vegetable/meat/spice &


41,700.00



47,500.00



42,200.00

22 28-Mar-09 Purchased white rice White Rice 90,000.00

Total $ 537.00 R 2,567,900.00

Recommendation

We recommend that the Accountant or Project Staff should ensure that all receipts and invoicesshould have sufficient information of the seller or vendor such as address or telephone to extentpossible. Should there be cases that the seller or supplier was not able to provide completeinformation on the receipt, the staff that paid the expense should provide explanation on thereceipt and this should be noted by the manager who approves the expenses. This is tosubstantiate the expenses and establish authenticity of the receipt. This will also facilitate


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verification and confirmation of expenses by management and external parties like auditors anddonors in the future.

Management Comment

SSF agreed some receipts didnt have enough information about addresses and phone numbersdue to many reasons; buying goods from local retailers that the owners didnt have suchcontacted facilities, the vendors didnt give us the information per request or they didnt issue usthe receipts or invoices as they are just local people and etc. SSF will need to design owninvoice to record if the vendors havent. This will need to improve starting from 2010 financialyear.

4.3 No distribution list

Observation

We noted that there were no distribution lists prepared for the items or support distributed tochildren or beneficiaries amounting to US$913.00 and R 1,346,500.00. Details are shownbelow:


1 25-Oct-08Purchase used bicycle

for childrenBicycle plus lock purchase 135.00

2 25-Oct-08Material for child

studyStationery and textbooks 153.50

3 26-Oct-08Toothpastes &

brushes, soap anddetergent

Clothes/Hygienematerials/health care costs

173,000.00


5 30-Oct-08 Sport Clothes Sport Clothes 289,500.00

6 30-Oct-08 Footwear Footwear 275,000.00

7 21-Jan-09Crop seeds support

and water springklerCrop seeds support 145,000.00

8 5-May-09 phone cardsTelephone calls and

communication15.00

9 8-May-09Purchased towel for

childrenClothes/Hygiene

materials/health care costs72.00

10 9-May-09Purchase 15 belt for

childrenAccessories (belt, etc.) 37.50

11 2-Jun-09Purchase scarves for

visitorsOffice stationery 136,000.00

12 8-Jul-09100 mosquito nets

($5/100)Mosquito nets 500.00

Total 913.00 1,346,500.00


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Recommendations

We recommend that the Organization should prepare distribution list for every support given to

the children or beneficiaries. The distribution list should contain necessary information such asname of the beneficiaries, description of the item supported, quantity, dates of the seminar fortravel or per diem allowance and should be properly signed received to ensure the support givenhave been received by the intended beneficiaries. The distribution list should also be signed asprepared by the project staff and checked or approved by the Project Officer or Manager toensure that the beneficiaries are legitimate beneficiaries and the items distributed are sufficientor reasonable in order the achieve the goals of the project.

Management Comment

In fact, SSF has distributed list in soft copy. Every distribution we had the list but due toprinting cost is expensive and SSF doesnt have enough budget covering overhead so a lot of

documents are prepared and kept in soft copies rather printing out.

4.4 No stamp Paid

Observation

We observed during our test of disbursements that most of the receipts and invoices were notstamped Paid after payment was made.

Recommendation

We recommend that all vouchers and its supporting documents like receipts and invoices shouldbe stamped Paid to avoid resubmission and double payment of the same.

Management Comment

Agreed. This will need to improve starting from 2010 financial year

4.5 Price quotations

Observation

We noted during our test of disbursements that the following purchases were not obtained withthree prices quotations from three different shops or vendors:


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1 3-Sep-08 Digital camera (FUJI S-5800)Office

equipment/furniture334.00

2 26-Apr-09

Hand pump installation and platformconstruction in Krang Lhong Village

Samrong Tong District Kampongspeu Province

Water and sanitationfacilities( ring-well,cement, etc.) support

1800.00

Total$ 2134.00

Recommendation

We recommend that the Organization should strictly follow up its policy on obtaining threeprice quotations for any purchase of more then US $ 200.00 to ensure that the Organizationmaximizes the use of project fund and avails of the best product quality and best price. Thequotations should then be prepared with quotation summary to analyze the quotations properlyand chose the best quality at the reasonable price. The quotation summary should containtherein the reason for the selection and the decision of the management on the quotations.Should it be difficult to obtain quotations, the project staff should explain or note this in thequotation summary and approved by ED. Through this all capital purchases have followed theprocurement policy of the Organization and have availed the best quality at a reasonable priceof the item(s) to be purchased.

Management Comment

Agreed. So far, SSF doesnt have policy regarding to quotation selection before purchasing yet. Allpurchases so far with more than a hundred US dollar are spending by director only. Even though, there is

no quotation in paper but all purchases or contracts were made during the 2009 financial year were atleast contacted to three different companies or agents to estimate about the quality and price. Reducepaper work and time regarding to those administration tasks during SSF hadnt enough human resourcesare the best way where we can do.

4.6 No approve by on the voucher

Observation

During our examination we observed that all the payment has no approval from Director or

Manager on the voucher.

Recommendations

We recommend that all expenses should be approved first before payment is made. No cashshould be paid out unless proper approval has been obtained. If the approving officer is notaround and expenses needs to be paid, a verbal approval should be obtained first through phoneand signature should be obtained later. This is to ensure that expenses paid and recorded areproperly authorized.


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Management Comment

Agreed. Starting from 2010 financial year and after SSF has enough human resource to fulfill

their positions so SSF will follow your recommendations.

4.7 Non preparation of loan agreement for the beneficiary

Observation

We noted that the Organization has provided loans to its beneficiaries; however, there was noloan contracts prepared between the Organization and the beneficiaries. Details of the loansgiven to beneficiaries are as follows:


1 21-Sep-08Increasing number of consumable

items against the market needs duringPhcum Ben

Consumables forcottage industry

100.00

2 5-Dec-08Repay moneylender back on behalf of

Keav Savy familyEmergency

aid/grant170.00

Total270.00

Recommendation

We recommend that the Project Manager should prepare contract with the beneficiaries for anyloan given. The contract should contain the terms and condition of the project like the expectedoutput of the Organization, the duties and responsibilities of the beneficiaries, the support givenand other important provisions to ensure that the project goals and objectives are met. Throughthis, all loans, grants or support given to the beneficiaries are properly supported with sufficientdocumentation.

Management Comment

Agreed. SSF has only loan request form so far. When a beneficiary was decided to support soSSF will fulfill the form and signed approval on both parties (beneficiary and SSF) was made.One copy of the form was kept at SSF filing system while another was with the beneficiary.

4.8 Non preparation of finance voucher

Observation

During our test of disbursements, we observed that there were expenses paid and recorded butwere not prepared with finance vouchers as presented below.


1 22-Feb-09 Seang Sreytouch Daily Pocket Money 6,000.00


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2 22-Feb-09 Mao Sreyneang Daily Pocket Money 9,000.00

3 22-Feb-09 Phan Samphas Daily Pocket Money 9,000.00

4 22-Feb-09 Phan Sopha Daily Pocket Money 9,000.00

5 22-Feb-09 Kang Phalla Daily Pocket Money 9,000.00

6 22-Feb-09 Tim Sreyneath Daily Pocket Money 9,000.00

7 22-Feb-09 Ek Chan Daily Pocket Money 9,000.00

8 22-Feb-09 Phan Sophea Daily Pocket Money 9,000.00

9 22-Feb-09 Creb Saroeun Daily Pocket Money 9,000.00

10 22-Feb-09 Seung Reasmei Daily Pocket Money 9,000.00

11 22-Feb-09 Hoeurng Phalika Daily Pocket Money 9,000.00

12 22-Feb-09 Sok Phanna Daily Pocket Money 9,000.00

13 22-Feb-09 Hoeurng Naing Daily Pocket Money 9,000.00

14 22-Feb-09 Mon Sreymom Daily Pocket Money 9,000.00

15 22-Feb-09 Chhaem Sokha Daily Pocket Money 9,000.00

16 22-Feb-09 Deu Dy Daily Pocket Money 9,000.00

17 22-Feb-09 Hoeurng Piseth Daily Pocket Money 50,000.00

18 22-Feb-09 Ek Chanba Daily Pocket Money 6,000.00

19 27-Oct-08Expense for student ID

of Hoeung NaingStudent

ID/Photographs5,500.00

20 28-Oct-08 Purchaed Monitor Computer Utility 27.00

21 12-Apr-09 Tep Sokha Daily Pocket Money 12,000.00

22 12-Apr-09 Mao Chaneang Daily Pocket Money 12,000.00

23 12-Apr-09 Phan Sophea Daily Pocket Money 12,000.00

24 12-Apr-09 Phan Samphas Daily Pocket Money 12,000.00

25 12-Apr-09 Saem Sokhea Daily Pocket Money 12,000.00

26 12-Apr-09 Deu Dy Daily Pocket Money 12,000.00

27 12-Apr-09 Kang Phalla Daily Pocket Money 12,000.00

28 12-Apr-09 Sok Phanna Daily Pocket Money 12,000.00

29 12-Apr-09 Creb Saroeun Daily Pocket Money 12,000.0030 12-Apr-09 Tim Sreyneath Daily Pocket Money 12,000.00

31 12-Apr-09 Lim Kunthea Daily Pocket Money 12,000.00

32 12-Apr-09 Mon Sreymom Daily Pocket Money 12,000.00

33 12-Apr-09 Hoeurng Naing Daily Pocket Money 12,000.00

34 12-Apr-09 Saing Kimsuor Daily Pocket Money 12,000.00

35 12-Apr-09 Ek Chan Daily Pocket Money 12,000.00

36 12-Apr-09 Chhaem Sokha Daily Pocket Money 12,000.00

37 12-Apr-09 Nguon Kunthea Daily Pocket Money 12,000.00

38 12-Apr-09 Hoeurng Phalika Daily Pocket Money 12,000.00

39 1-Dec-08 Expense for gasoline Travel (gasoline, etc.) 66,000.00

40 3-Dec-08 Gasoline Travel (gasoline, etc.) 96,000.00

41 28-Jan-09 Purchase white rice White Rice 25.00

42 31-Jan-09 Gasoline Travel (gasoline, etc.) 60,000.00

43 1-Feb-09 Purchase white rice White Rice 180,000.00

44 1-Feb-09(Vegetable, Meat,

Spicies)

Vegetable/meat/spice& ingredient/drinking

water50,500.00

45 3-Feb-09 Gasoline Travel (gasoline, etc.) 64,000.00


Spicies)

Vegetable/meat/spice& ingredient/drinking

water63,900.00

47 28-Mar-09 Purchased white rice White Rice 90,000.00

48 10-Apr-09 Purchase new hard drive Maintenance/repairing 100.00


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for ED laptop and sparepart

49 19-Apr-09 Solex lockDomestic materials

and equipment15.00

50 31-Jul-09 Photo document Photocopies/printing 26,800.00

51 1-Aug-09 White Rice White Rice 22.00

Total 189.00 1,115,700.00

Recommendation

We recommend that all expenses should be prepared with finance vouchers signed as preparedand checked by the Administration Officer, Approved by the Executive Director and receivedby the payee, seller or vendor. This is to ensure that all payments are properly documented andwill show evidence that the transaction is carefully processed - that the supporting receipt orinvoice and mathematical accuracy has been checked and approval has been made.

Management Comment

Agreed. So far, SSF has only receipts and invoices that we received or made with vendors orpayees only. In 2009 financial year, we tried our best to reduce paper work while we didnt haveenough human resource as well as the Executive Director was only volunteer and part-timework basis with the organization. SSF will improve this point during 2010 financial year.

4.9 No description of expenses in the system

Observation

We observed during our test of disbursements that the following expenses have no descriptionon the ledger or system. Detail shown as bellow:


1 25-Oct-08Material for Childs

studyStationery and

textbooks153.50


3 30-Oct-08 Sport Clothes Sport Clothes 289,500.00

4 30-Oct-08 Footwear Footwear 275,000.00

5 11-Nov-08 (Office rental) Residential shelter rents 160.00

6 16-Nov-08(Vegetable, Meat,

Spices)

Vegetable/meat/spice &

ingredient/ water40,000.00


Spices)Vegetable/meat/spice &





9 3-Dec-08(Vegetable, Meat,



10 3-Dec-08 Gasoline Travel (gasoline, etc.) 96,000.00

11 5-Dec-08(Vegetable, Meat,



12 6-Dec-08 (Vegetable, Meat, Vegetable/meat/spice & 50,900.00


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Spices) ingredient/ water

13 3-Jan-09(Vegetable, Meat,





ingredient/ water 42,000.00










18 31-Jan-09 Gasoline Travel (gasoline, etc.) 60,000.00







21 7-Mar-09 (Vegetable, Meat,Spices)

Vegetable/meat/spice &ingredient/ water

54,200.00

22 29-Mar-09 Repair BicycleBicycle

maintenance/repair159,500.00

23 5-Jul-09 Office rental Residential shelter rents 160.00

24 19-Jul-09Transportation fee for

Farmer Came backhome.

Transportation & travelcost

55,000.00

25 25-Jul-09(Vegetable, Meat,



26 27-Jul-09(Vegetable, Meat,


ingredient/water63,000.00

27 31-Jul-09 Photo document Photocopies/printing 26,800.00

28 1-Aug-09 White Rice White Rice 22.00

29 2-Aug-09Vegetable/meat/spice &


30 8-Aug-09(Vegetable, Meat,












34 29-Aug-09 Social Welfare Meal for farm animals 56,400.00

Total 495.50 2,358,100.00

Recommendation

We recommend that the Accountant should always indicate the description or memo of theexpenses in the system in order that all expenses paid have sufficient information of theexpenses in the system for immediate verification of the income received by the managementand external parties like donors and auditors. The system has the sufficient information toaccount completely all the expenses paid of the Organization.


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flip-chart and ect.)

2 25-Oct-08 Office stationery 125,000.00

3 2-Nov-08Expense for woods fordo the cage of chicken

Life-skills cost 438,000.00

4 24-Nov-08 GO wired Bank Charges 20.00

5 16-Dec-08 Repayment the debt Micro-loan 330.00

6 6-Feb-09Purchased mosquito net

and scarfs for chils

Clothes/Hygienematerials/health care

costs256,000.00

7 18-Feb-09 GO wired Bank Charges 20.00

8 29-Mar-09 BowlDomestic materials

and equipment800,000.00

9 12-Apr-09 multi-vitamins Meal for farm animals 73,500.00

10 12-Apr-09Vegetable/meat/spice

& ingredient/water110,000.00

11 28-Apr-09Water baskets and plate

for chicken

Training materials

supply (makers, IEC,flip-chart and ect.)

97,000.00

12 2-May-09Training

equipment/furniture233,000.00

13 16-May-09 Purchased telephone Telephone connection 17.00

14 16-May-09 Milk for PhannithFood allowance and

accommodation158,500.00

15 27/05/09 electricityWater and electricity

monthly expense172,800.00

16 29-May-09 A4 paper Office stationery 16.00

17 13-Jun-09Detergen and liquid

cleanserCleaning supplies 36,500.00

18 2-Jul-09 GO wired Bank Charges 20.00

19 18-Jul-09 Milk for PhannithFood allowance and

accommodation156,000.00

20 5-Aug-09Purchased backpack for

childrenBag/backpack 74.50

21 23-Aug-09 Purchase water filterCooking/kitchen

utensils25.00

22 25-Aug-09Purchase detergent and

dish washing liquidCleaning supplies 34,500.00

Total 527.50 2,815,800.00

Recommendation

We recommend that all receipts, invoices, and other relevant supporting documents should beproperly bind and filed in a folder kept in a secured cabinet after the transactions were paid.This is to avoid loss of accounting documents. This procedure is also in adherence to thefunding agreement with the donors and government requirement which requires that theaccounting documents should be properly kept for a period of time from the termination of theproject for donor or government audit and other third party checking and verification.

Management Comment

We agreed for some invoices or receipts were lost during this financial year due to


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SSF doesnt have proper filing system. Even though we assigned a staff to maintain

those invoices/receipts but however due to mismanagement so sometime our kids

got them to use for their purposes. Not all above said invoice/receipt(s) we

recognized to lose; some receipts and invoices we found here at SSF office after wetransferred most part to audit company and some other we recognized by our

accountant were transferred to the audit company already. If possible please check

them again.

5. PAYROLL

5.1 Employment contracts

Observation

We observed during our test of payroll that the staffs have been receiving salaries or allowancewere not prepared with employment contracts signed by the staffs and the Organization but onlythe job description.

Recommendation

We recommend that employment contracts should be prepared for all staffs and signed by thestaff and the Board of Director or Executive Director because these serve as the main sourcedocuments for salary payments.

Management Comments

Agreed. This will be improved starting from 2010 financial year.

5.2 Pay slips

Observation

We noted that salaries payment has no indication that it approved by the Director shown in thepay slips.

Recommendation

We recommend that the salaries payment should be approved first before the payment is madeto the staffs to ensure that all project expenses were properly checked and authorized before thepayment is made.

Management Comments


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SAO SARY FOUNDATION


Agreed. SSF will improve this matter starting from 2010 financial year. Due to the workloadand part-time work basis as well as lack human resources at SSF so we decided to reduce paperwork for the 2009 financial year.

5.3 Payroll summary

Observation

During our test we observed that the Organization did not prepare the payroll summary form forsalaries payment.

Recommendation

We recommend that the Organization should prepare payroll summary for the salaries payment

with detail of basic salaries, allowance, benefit, taxes and net pay. The payroll summary shouldbe prepared, checked and approved by the Director.

Management Comments

Agreed. This will need to improve and put into practice starting from 2010 financial year.

Documents

ML FINAL SSF FY 09