Each Accounting Head shall ensure
that:
(a)
revenue is recorded against the correct account;
(b)
the recording of revenue is reconciled monthly with the Ministry of Finance;
(c)
the Ministry of Finance is advised of any errors or
discrepancies within 10 working days after the end of each month; and
(d)
VAT is correctly accounted for and
remitted as required.
(e)
Each Accounting Head shall maintain a
Revenue Collectors Chart to monitor the payment of revenues by the revenue
collectors.
(Finance Instructions
2005 s(30))
Accounting for Revenue
- The
revenue collector shall maintain a cashbook in which he/she shall
enter on a daily basis the following details:
o
date of receiving cash or cheques and name of payer;
o
receipt number and amount received;
o
revenue account code.
- The
revenue collector must total the cashbook at the end of the day and
give it to the accounts supervisor for checking. The accounts
supervisor must sign the cashbook after checking the details in the
cashbook against the issued receipts, money on hand and bank lodgement
forms.
- After
reconciling details in the cashbooks, the accounts supervisor shall
submit the cashbooks, duplicate receipts and lodgement forms to the data
entry clerk for posting into the General Ledger.
Posting into the General Ledger System
- The
accounts officer shall prepare a journal voucher or journal entry
input form before posting revenue transactions into the general ledger.
The journal voucher for an adjustment should outline:
o
reason for raising adjustments;
o
the accounts that should be debited and credited;
o
the amount debited and credited to each account.
- All
journalised adjustments shall be sequentially numbered and dated to avoid
double postings.
- Each
journal voucher or input form shall be checked by the Accounting Head
who must ensure that:
o
dollar values are accurately computed;
o
the correct account codes have been debited or
credited.
- Where
revenue is collected on behalf of other agencies, the accounts officer
raising the journal vouchers for posting shall also prepare an advice form
informing the other agency of the collections received on their behalf.
- The
advice form will outline:
o
receipt numbers, date of receipt and amounts collected;
o
type of revenue that was collected.
- The
advice form together with the journal vouchers should be verified and
signed by the accounts supervisor. Immediately after signing the
advice form, the accounts supervisor must forward it to the agency
concerned.
Monthly Revenue Reports
- At
the end of each month, the Accounting Head shall prepare a Statement of
Revenue comparing the types of revenue collected during the month against
the forecasted revenue. Explanations for variances between the actual and
forecasted revenue must be obtained from the officers responsible for
revenue collection.
- The
Revenue Statement shall be included as part of the monthly management
report as specified in Part 17 of the Manual.
- Within
five working days of the Ministry of Finance issuing the monthly General Ledger
Reports, the Accounting Head shall reconcile the revenue figures in
the report to the Revenue Statement.
- Similarly,
the Inter-Departmental Clearance Account balances must be reconciled.