S
TANDARD OPERATING
P
ROCEDURE FOR INTERNAL
AUDIT
/
COMPLIANCE MONITORING
- IHVN
PREPARED BY: KOLAWOLE OLAYIWOLA
REVIEWED BY:
DEBO OLATEJU (AG. DIRECTOR, FINANCE)
APPROVED BY:
CHARLES MENSAH (PROGRAM ADMINISTRATOR)
DATE ADOPTED:
JUNE 2006
I
NTENDEDU
SET
HIS PROCEDURE IS DESIGNED TO ESTABLISH A SYSTEMATIC APPROACH TO ASSURE THATIHV – N
IGERIAI
MPREST REPORTING IS FOLLOWING AND COMPLYING WITH ALLRELEVANTADMINISTRATIVE AND FINANCIAL REGULATIONS SET UP BY THE MANAGEMENT
,
BOARD,
AND FUNDING AGENCIES.
I
NTRODUCTIONTHE COMPLIANCE UNIT OF
IHV – N
IGERIA WILL CONDUCT AN ON-
GOING AND PERIODIC REVIEW OF ALL ADMINISTRATIVE AND FINANCIAL TRANSACTIONS AT THE HEAD,
REGIONAL,
AND SITE OFFICES WITH A VIEW TO PROVIDING A MONTHLY AND QUARTERLY REPORT TO MANAGEMENT ON THE LEVEL OF ADHERENCE COMPILE IMPREST DISBURSEMENT REPORTS ON A MONTHLY BASIS FORUSD, I-C
LASS OR ANY OTHER CHECKING ACCOUNT ANDP
ETTYC
ASH. T
HESEREPORTS WILL CONTAIN
,
ALL EXPENSES,
WIRE TRANSFERS,
TRANSFERS TOS
ITES, R
EGIONS,
AND ALL OTHER APPLICABLE EXPENSES OR RECEIPT OF FUNDS.
P
RINCIPLES OF THISSOP – T
HE FOLLOWING PRINCIPLES WILL BE FOLLOWED BYIHV –
N
IGERIAF
INANCE STAFF IN COMPLETION OF THEIHV – N
IGERIAI
MPREST.
A
.
ON-SITE REVIEW/AUDIT
1.
STAFFING AND STAFF MATTERS
O
BTAIN A COMPREHENSIVE LIST OF STAFFS IN THE LOCATION AND THEIRDESIGNATIONS.
O
BTAINL
ETTER OFA
GREEMENTS AND CONFIRM ACTUAL NUMBERS OF STAFFREQUIRED PER THEA
GREEMENT.
O
BTAIN STAFFING BUDGET AND CONFIRM COMPLIANCE WITHA
GREEMENT.
C
OMPARE AGREED REQUIREMENTS WITH ACTUAL NUMBER OF STAFFS IN THE
LOCATION PER GRADE,
AND OBTAIN EXPLANATION FOR DIFFERENCES(
IF ANY).
O
N A SAMPLE BASIS,
OBTAIN STAFF FILES AND CONFIRM ADEQUACY OFDOCUMENTATION AND COMPLIANCE WITH ESTABLISHED PROCEDURES FOR
O
BTAIN TRAINING SCHEDULE/
PLAN(
IF ANY)
AND COMPARE WITH RECORDS OFSTAFF TRAINING IN THE LOCATIO
I
DENTIFY TRAINING GAPS AND/
OR VARIATION WITH PLAN AND OBTAINEXPLANATIONS.
O
BTAIN DETAILS OF DOCUMENTED STAFF FUNCTIONS PER STAFF ANDCONFIRM AGREEMENT WITH ACTUAL STAFF DUTIES. O
BTAIN EXPLANATIONS FOR IDENTIFIED DIFFERENCES.
O
BTAIN STAFF ATTENDANCE REGISTER AND CHECK FOR PROPERRECORDKEEPING OF PUNCTUALITY
,
STAFF ATTENDANCE AND ABSENTEES.
P
ERFORM OTHER NECESSARY TESTS AS MAY BE REQUIRED TO ASCERTAINSTAFF PROFILES AND OPTIMAL USE OF HUMAN RESOURCES.
2.
PAYROLL AUDIT
O
BTAIN PAYROLL FOR THE LOCATION FOR THE LAST THREE MONTHS ANDCHECK FOR ACCURACY OF COMPUTATION,
COMPLETENESS AND APPROVAL.
R
ECONCILE CURRENT MONTH PAYROLL WITH THE PREVIOUS MONTH ANDOBTAIN EXPLANATION FOR SIGNIFICANT VARIATION. C
ONFIRM REASON(
S)
FOR VARIATION(
NEW HIRES,
RESIGNATION,
ETC.)
O
BTAIN LISTS OF NEW HIRES,
RECENT DISENGAGEMENTS FROM SERVICE,
REDEPLOYMENTS,
TRANSFERS,
ETC.
O
BTAIN STAFF EMPLOYMENT LETTERS AND/
OR PROMOTION/
REVIEW LETTERSFROM FILES AND CONFIRM PAYMENT PER PAYROLL AGREES WITH STAFF ENTITLEMENTS.
O
BTAIN MONTHLY PAYMENT VOUCHERS RAISED FOR PAYROLL AND CONFIRMADEQUACY OF APPROVAL.
R
ECONCILE PAYROLL FIGURE WITH ACTUAL DISBURSEMENTS ON STAFFSALARIES AND OBSERVE DIFFERENCES(
IF ANY).O
BTAIN EXPLANATIONS FOR VARIATIONS.
C
HECK DEDUCTIONS FROM SALARIES(PAYE,
PENSION,
STAFF LOANS,
ETC.)
AND CONFIRM ACCURACY OF COMPUTATION.
C
ONFIRM DEDUCTIONS ARE BEING PROMPTLY REMITTED TO THE APPROPRIATEAUTHORITIES.
O
BTAIN TIME SHEETS FOR OVERTIME HOURS AND CONFIRM ADEQUACY OFAPPROVAL IN LINE WITH POLICY.
C
HECK COMPUTATION OF OVERTIME WORK HOURS TO ASCERTAIN ACCURACYAND COMPLETENESS.
O
BTAIN RECORDS OF ALL TEMPORARY AND/
OR CASUAL HIRES AND CONFIRMPROPER APPROVAL WAS SOUGHT AND OBTAINED.
C
ROSS-
CHECK PAYMENTS TO HIRE DOCUMENTS TO CONFIRM PAYMENT WASIN AGREEMENT WITH CONTRACT,
O
BTAIN THE UNCLAIMED WAGES REGISTER(
IF ANY)
AND CROSS -CHECKINFORMATION TO PAYROLL.
C
ONFIRM VALIDITY OF STAFF AND WHY WAGES WERE UNCLAIMED.
E
NSUREUNCLAIMED WAGES HAVE BEEN PROPERLY ACCOUNTED FOR AND DULY TREATED IN LINE WITH POLICY.
3. FINANCIAL
TRANSACTIONS
P
ETTYC
ASHP
AYMENTS
C
ARRY OUT A CASH COUNT OF THE PETTY CASHIMPREST
AND AGREEPHYSICAL CASH BALANCE TO BALANCE PER PETTY CASH BOOK.
O
BTAIN ALL PETTY CASH VOUCHERS WITHIN THE LAST THREE MONTHS ANDVOUCH FOR APPROVAL,
ADEQUACY OF SUPPORTING DOCUMENTS,
PROPER RECORDING AND REASONABILITY OF EXPENSES INCURRED.
C
ROSS-
CHECK APPROVED PETTY CASH FLOAT TO THE PETTY CASH BOOK ANDCONFIRM THE SET LIMIT HAS NOT BEEN EXCEEDED.
C
ARRY OUT TESTS TO ENSURE THAT THE PETTY CASH IMPRESTREIMBURSEMENT IS DONE IN LINE WITH PETTY CASH REIMBURSEMENT GUIDELINES.
V
OUCH FOR PROPER CLASSIFICATION OF ALL PETTY CASH EXPENSES.
CHEQUE (CHECK) P
AYMENTS
O
BTAIN THEC
HEQUEI
SSUEDR
EGISTER(
IF ANY)
AND/
OR THE PAYMENT CASH
BOOK.
O
BTAIN ALL THE CHEQUE PAYMENT VOUCHERS FOR PAYMENTS MADE WITHINTHE LAST THREE MONTHS AND VOUCH FOR APPROVAL,
ADEQUACY OF SUPPORTING DOCUMENTS,
PROPER RECORDING AND CONFIRM PAYMENTS MADE WERE IN LINE WITH APPROVED BUDGET.
E
NSURE PROPER CLASSIFICATION OF ALL PAYMENTS MADE AND RECORDED INTHEP
AYMENTR
EGISTER.
O
BTAIN AUTHORITY LIMITS FOR PAYMENTS APPROVAL AND CONFIRM THAT ALLPAYMENTS MADE WERE IN CONFORMITY WITH AUTHORITY LIMITS. O
BTAIN EXPLANATIONS FOR DEVIATIONS AND REPORT.
V
OUCH ALL PAYMENTS TO SERVICE DELIVERY ON SAMPLE BASIS,
I.
E.
SIGHTPHYSICAL ASSETS FOR PROCUREMENT AND/
OR OBTAIN TANGIBLE EVIDENCE OF SERVICES RENDERED.
A
SCERTAIN THAT PROPER RECORDS ARE KEPT IN THEIR DATE ORDER FOR ALLPAYMENTS IN TERMS OF VOUCHERS,
CHEQUE STUBS AND APPROPRIATE SUPPORTING DOCUMENTS.
B
ANKR
ECONCILIATION
O
BTAIN MONTHLY COPIES OF BANK RECONCILIATION STATEMENTS PREPAREDBY THE LOCATION FOR THE LAST THREE MONTHS.
V
OUCH THE FIGURES IN THE STATEMENTS TO BOTH THE CASH BOOK AND THEBANK STATEMENTS.
I
DENTIFY LONG OUTSTANDING RECONCILING ITEMS AND OBTAINEXPLANATIONS FOR LEAVING THEM UNATTENDED TO.
A
SCERTAIN REASONABILITY OF BANK CHARGES AND CONFIRM CHARGES INLINE WITHA
GREEMENT WITHB
ANKS.
I
DENTIFY(
IF ANY)
ILLEGAL AND/
OR WRONG BANK CHARGES AND RECOMMENDRECOVERY TACTICS.
E
VALUATE ADEQUACY OR OTHERWISE OF SERVICES RENDERED BYB
ANKSAND REPORT.
O
BTAIN COPIES OFM
ONTHLYR
EPORTS SENT TOH
EADQUARTERS AND/
ORM
ANAGEMENT FROM THE LOCATION.
C
ROSS-
CHECK REPORTS CONTENTS TO SOURCE DOCUMENTS AND/
OR BOOKS
TO ASCERTAIN ACCURACY OF ANALYSIS AND CLASSIFICATIONS.
E
VALUATE QUALITY,
QUANTITY AND TIMELINESS OF REPORTS TO DETERMINEITS ADEQUACY OR OTHERWISE AND REPORT.
D
ETERMINE THE ADEQUACY OR OTHERWISE OF THE EXISTING STORAGEMEDIA,
AND BACK-
UP OPTIONS FORM
ANAGEMENT REPORTS.
4.
BUDGETING
O
BTAIN THE EXPENDITURE BUDGET FOR THE LOCATION AND COMPAREBUDGET PER EXPENDITURE HEAD WITH ACTUAL EXPENSES FOR THE LAST THREE MONTHS.
O
BTAIN EXPLANATIONS FOR THE VARIATION(
S)
AND COMMENT.
A
SCERTAIN LEVEL OF INVOLVEMENT OF LOCATION PERSONNEL IN DETERMINATION OF ANNUAL LOCATION’
S BUDGET.C
OMMENT AND REPORT.
R
ECOMMEND APPROPRIATE ACTIONS TO STREAMLINE BUDGET WITHACTUALEXPENSES
.
5. COMMODITIES
AND
SUPPLIES I
NVENTORY
C
ARRY OUT A PHYSICAL STOCK COUNT EXERCISE OF ALL STORES ITEMS(
COMMODITIES AND SUPPLIES INCLUSIVE OF DRUGS,
OFFICE CONSUMABLES,
ETC.)
AND AGREE PHYSICAL STOCK WITH BIN CARD BALANCES.
O
BTAIN EXPLANATION FOR DIFFERENCES(
IF ANY)
BETWEEN PHYSICAL STOCKAND CARD BALANCES AND REPORT.
E
XAMINE SET RE-
ORDER LEVELS FOR IMPORTANT INVENTORY ITEMS ANDCONFIRM ADEQUACY OR OTHERWISE.
E
VALUATE ADEQUACY OF STORAGE AND STORE ARRANGEMENT AND REPORT.
O
BTAIN LIST OF OBSOLETE AND/
OR DAMAGED STOCK ITEMS AND CONFIRM
STATUS. R
ECOMMEND APPROPRIATE ACTION FOR DISPOSAL AND/
OR REFURBISHMENT.
C
ROSS-
CHECK AND CROSS-
REFERENCE ENTRIES INTO THE BIN CARDS TOPAYMENT VOUCHERS AND VICE-
VERSA TO ASCERTAIN ACCURACY AND COMPLETENESS OF RECORDING.
O
BTAIN INVENTORY VALUATION METHOD IN USE AT THE LOCATIONANDASCERTAIN COMPLIANCE WITH THE
I
NSTITUTE’
S ACCOUNTING POLICIES.
O
BTAIN THE MONTHLY STOCK TAKING SCHEDULE AND ASCERTAINCOMPLIANCE.
R
ECORD OFU
SAGE
O
BTAIN RECORDS OF ALLS
TORESR
EQUISITIONI
SSUEDN
OTES WITHIN THELAST THREE MONTHS AND VOUCH FOR ADEQUACY OF APPROVAL,
RECORDING AND TREATMENT IN THE STORE.
O
BTAIN ANALYSIS OF ALL STORES ISSUED NOTES AND CONFIRM ADEQUACY OFCLASSIFICATIONS. A
LSO ENSURE ALL STORES ISSUED NOTES HAVE BEE APPROPRIATELY CHARGED TO THE APPROPRIATE EXPENDITURE HEADS.
O
N A SAMPLE BASIS,
TRACE STORES ISSUED ITEMS TO THE USERDEPARTMENT AND VALIDATE ACTUAL USAGE.
6. FIXED
ASSETS
E
QUIPMENTS
O
BTAIN A COMPREHENSIVE LIST OF EQUIPMENTS AT THE LOCATION.
P
HYSICALLY VERIFY EXISTENCE AND ASCERTAIN STATUS OF EQUIPMENTS.
O
BTAIN A COPY OF THE MAINTENANCE SCHEDULE FOR THE EQUIPMENTS AND ASCERTAIN COMPLIANCE WITH THE SCHEDULE.
E
VALUATE ADEQUACY OR OTHERWISE OF THE MAINTENANCE ARRANGEMENTAND REPORT.
O
BTAIN RECORDS OF DOWN-
TIME FOR THE EQUIPMENTS AND RESPONSE BYTHE MAINTENANCE EXPERTS. C
OMMENT AND REPORT.
O
BTAIN DOCUMENTED SECURITY ARRANGEMENT FOR THE SAFETY OF THEEQUIPMENTS AND TEST TO ASCERTAIN ADEQUACY.C
OMMENT AND REPORT.
E
NSURE ALL PROJECT EQUIPMENTS SUCH AS SPECIALIZED LABORATORYEQUIPMENTS,
AIR CONDITIONERS,
REFRIGERATORS,
COMPUTERS,
PRINTERS,
ALL OTHER EQUIPMENTS AND FURNITURE ARE WELL INVENTORIED AND PROPERLY IDENTIFIED BY LOCATION.
E
NSURE COMPLIANCE WITH LAID DOWN PROCEDURES ONMAINTENANCEAND
/
OR REPAIR OF THEI
NSTITUTE’
S EQUIPMENTS.
M
OTORV
EHICLES(HEAD OFFICE & REGIONAL OFFICES ONLY)
O
BTAIN LIST OF ALL MOTOR VEHICLES IN THEI
NSTITUTE’
S FLEET.
E
NSURE ALL POOL VEHICLES HAVE INDIVIDUAL LOG BOOKS.
E
XAMINE INDIVIDUAL MAINTENANCE RECORDS–
FUELLING,
MAINTENANCE AND REPAIRS,
ETC,
KEPT FOR EACH VEHICLE AND ASCERTAIN REASONABILITY.
O
N A SAMPLE BASIS,
CHECK LOG BOOKS FOR VEHICLES IN THE POOL
ANDCONFIRM THESE ARE BEING CHECKED REGULARLY AND BEING ENDORSED BY THE TRANSPORT OFFICER.
I
DENTIFY VEHICLES WITH PECULIAR AND/
OR EXCEPTIONALLYHIGHMAINTENANCE COSTS AND OBTAIN EXPLANATIONS
. C
OMMENT AND REPORT.
7.
OTHERS
C
ARRY OUT ALL OTHER TESTS THAT MAY BE REQUIRED TO ASCERTAIN THATBOTH HUMAN AND PHYSICAL RESOURCES OF THEI
NSTITUTE ARE BEING PUT TO OPTIMAL USE AND REPORT.
A
SCERTAIN CREDIBILITY OF REPORTS GENERATED TO AFFIRM INTEGRITY ANDENSURE THEY REFLECT A TRUE AND FAIR VIEW OF THE POSITION OF THE LOCATION AND/
OR THEI
NSTITUTE.
CHECK MATHEMATICAL ACCURACY OF THE REPORT IN LINE WITH
IHVNFORMAT.
PROPERLY VOUCH ALL PAYMENT DOCUMENTS TO ENSURE APPROPRIATENESS OF SUPPORTING DOCUMENTS SUCH AS RECEIPTS,
INVOICES,
ETC.
AND APPROVAL.
ENSURE EXPENDITURES ARE IN LINE WITH APPROVED BUDGET.
CHECK BANK RECONCILIATION PREPARED BY SITE AND CROSS CHECK TO ATTACHED BANK STATEMENT(
S).
ENSURE APPROPRIATENESS OF EXPENDITURE CLASSIFICATION.
C
.
PRE-
PAYMENT REVIEW OF PAYMENTS ON SUPPLIES
PHYSICALLY VERIFY ALL SUPPLIES TO THE INSTITUTE.
CROSS-
CHECK PURCHASE ORDER(PO)
TO INVOICE(
S)
AND AGREE PHYSICAL QUANTITIES WITH PRICING.
ENSURE THE MATHEMATICAL ACCURACY OF FIGURES ON THE INVOICE(
S)
BY CASTING AND CROSS-
CASTING OF THE FIGURES.
ENSURE PURCHASE ORDER(
PO)
WAS PROPERLY APPROVED BY AUTHORIZED SIGNATORIES.
D
