KENYA FOREST SERVICE DOCUMENT TITLE:

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1 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 1 of 9 ISSUE HISTORY ISSUE DESCRIPTION OF CHANGE PROCESS PILOT EFFECTIVE DATE 1 None, no change has been done. Accountant I 14 th June 2010 REFERENCED DOCUMENTS COPY HOLDERS REF QPM QPM 6 PM WI TITLE Quality policy manual Resources Management Procedure Manual Strategic Plan Forest Act Work Instructions International Accounting Standards Government financial regulations Government Circulars 1. Director 2. QMR 3. Chief Accountant 4.

2 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 2 of 9 RECORDS / ANNEXES REC NO REC TITLE Process Flow Chart (Bank Reconciliations) Process Flow Chart (Daily Bank Account Control) Bank Reconciliation Statement Stale Cheques List Credit and debit advice Un presented Cheques Report Returned Cheque Report

3 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 3 of 9 TABLE OF CONTENTS ISSUE HISTORY... 1 REFERENCED DOCUMENTS... 1 RECORDS / ANNEXES SCOPE PURPOSE RESPONSIBILITY AND AUTHORITY OBJECTIVES TERMS AND DEFINITIONS DETAILS OF PROCEDURE Bank Reconciliation Daily Bank Account Control Accounts Reconciliation General... 6 PROCESS FLOW CHART (Bank Reconciliation)... 6 PROCESS FLOW CHART (Accounts Reconciliation General)... 8 PROCESS FLOW CHART (Daily Bank Account Control)... 9

4 REF NO: KFS-FAD SCOPE ISSUE NO: 1 PAGE: 4 of 9 This procedure covers activities pertaining bank and accounts reconciliation. 2. PURPOSE The purpose is to ensure that all the procedures within the accounts section of Bank/accounts Reconciliations are followed appropriately and in a timely manner. 3. RESPONSIBILITY AND AUTHORITY 3.1 Director 3.2 Chief Accounts officer 3.3 Senior Accountant 3.4 Accountant 4. OBJECTIVES NB: Refer to the performance contract. CSF KPI TARGET(S) DUE 5. TERMS AND DEFINITIONS TERM KFS KPI CSF DIR DEFINITION(S) Kenya Forest Service Key Performance Indicator Critical Success Factor Director

5 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 5 of 9 TERM DD VB BR CAO FAD ACC DEFINITION(S) Deputy Director Vote book Bank Reconciliation Chief Accounts Officer Finance & Accounts Division Accounts 6. DETAILS OF PROCEDURE 6.1 Bank Reconciliation The BR officers collect monthly bank statement and use cash book, CPS, and unpresented cheques to start the reconciliations The officers check for the following:- Check for paid cheques against bank statement Check for returned salaries against bank statement Check for bank advises against the bank statements The following reports are prepared summarization of unpresented cheques a report of all returned cheques The BR officers post to bank reconciliation statement including all unpresented cheque summed up and posted in the reconciliation statement, returned salaries not yet receipted in cashbook, all advices still outstanding are disclosed in the cashbook.

6 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 6 of Generate reports which include Bank reconciliation statement, Stale cheques list & credit and debit advice to cashier. 6.2 Daily Bank Account Control The BR officers access KFS account online Any anomalies are noted and appropriate action taken. 6.3 Accounts Reconciliation General The following documents are collected from the various sections:- From Accounts registry the vouchers for both receipt and payment, From Accounts computer the Trial balance, general ledgers, daily postings, Journal entries and the allocation summary The reconciliation statements are then written by checking ledger postings of allocations against payments made from the general ledger For all mis-postings journal entries are passed for further action Other variances are identified and reported to accounts clearance sections for action Lists of returned salaries debits schedules are extracted from journal vouchers of reversed salaries are compiled and forwarded to the clearance section for recoveries from third parties remittances At the end of each financial year, schedules are compiled of the debit and credit balances of clearance accounts. PROCESS FLOW CHART (Bank Reconciliation) ACTIVITY RESPONSIBILITY START

7 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 7 of 9 Collects monthly bank statement and uses cash book, CPS, and unpresent cheques to start reconciliation. Checks for paid cheques against bank statement Checks for returned salaries against bank statement Checks for bank advises against the bank statements Prepares report on summarization of unpresented cheques Prepares report of all returned cheques BR Officers Posts to bank reconciliation statement including all unpresented cheque summed up and posted in the reconciliation statement; returned salaries not yet receipted in cashbook; all advices still outstanding are disclosed in the cashbook. Reports generated include Bank reconciliation statement, Stale cheques list & credit of debit advice to cashier END

8 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 8 of 9 PROCESS FLOW CHART (Accounts Reconciliation General) ACTIVITY RESPONSIBILITY START Collects monthly bank statement and uses cash book, CPS, and unpresented cheques to start reconciliation. Checks for paid cheques against bank statement Checks for returned salaries against bank statement Checks for bank advises against the bank statements Prepares report on summarization of unpresented cheques Prepares report of all returned cheques BR Officers Posts to bank reconciliation statement including all unpresented cheque summed up and posted in the reconciliation statement; returned salaries not yet receipted in cashbook; all advices still outstanding are disclosed in the cashbook. Reports generated include bank reconciliation statement, Stale cheques list & credit of debit advice to cashier END

9 REF NO: KFS-FAD-005 ISSUE NO: 1 PAGE: 9 of 9 PROCESS FLOW CHART (Daily Bank Account Control) ACTIVITY RESPONSIBILITY START Accesses KFS account online BR Officers Anomalies are noted and appropriate action taken END PREPARED BY: DD, FINANCE AND ACCOUNTS APPROVED BY: DIRECTOR