Payment Procedures

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6.2 Fund Disbursement

All payments be made either by cheque or cash.

6.2.1 Payment by Cheque

(1) Payment for Purchases

Payment against purchases exceeding ______ shall be made by cheque.

(2) Payment for Services Rendered

a. Payments for Staff Salaries

i . Payment Calendar

Staff salaries are paid within seven days following the completion of the month. Individual cheques are to be issued to the employee concerned.

ii. Staff payroll

Staff payroll (salary sheet) is prepared by the Accountant as the basis of payment. The staff payroll contains information on the employees’ basic salary for the month, allowances if any, deductions and net salary payable. The staff payroll is checked by the Treasurer and/or Secretary General and approved for payment by the Executive Director.

iii. Advance Pay

NGO’s employees may take advance payment of up to 3 months (after completion of 3 months probation), if urgently required. The advance must be returned/reimbursed before the end of that particular fiscal year.

For travel purposes, NGO employees shall be given cash advances for expenses covered on official trips. Request for cash advances is prepared by the personnel concerned, recommended by the Treasurer or General Secretary and is approved by the President. All cash advances for travel are to be liquidated within a week following the completion of the trip.

iv. Tax Deduction at Source

NGO will deduct tax at source where applicable as per Government rules.

b. Payment for Contractual Services

Payment for contractual services is done through cheque disbursements. The schedule of payment depends on the Terms of Reference (TOR) agreed upon by the personnel concerned and NGO. Payments are covered by a Request for Payment Form prepared by the accountant and approved by the Executive Director.

Finance Policy: Page 1……. Page 2…….Page 3

More NGO Operational Policies:

1. General Personnel Policy (also Human Resource Policy)
2. Communications Policy
3. Computer Policy
4. Procurement Policy
5. Fixed Assets Policy
6. Finance Policy