Payments

(1) Details of each invoice or other source document for a payment must be promptly and accurately recorded including -

(a) the name of the supplier or payee;

(b) the invoice or statement number, the local purchase order or orders it relates to, the due date and, where applicable, payment terms; and

(c) the ledger account it is charged to.

(2) All payment vouchers are to be certified correct by a certifying officer before being processed for payment.

(3) Wherever possible, an agency must process and pay accounts by the due date so that -

(a) discounts for prompt payment are not lost;

(b) interest charges for late payment are not incurred;

(c) suppliers do not quote higher prices to Government agencies to compensate for late payments.

(4) Subject to provision 19(3), where no due date is specified, payments must be settled within 30 days from the date of the invoice.

(5) Agencies must have procedures in place to ensure that invoices or statements are not paid twice and that fraudulent claims are not paid.

(6) In circumstances where it is necessary to make an advance payment for goods received through shipment from overseas, approval must be sought from the Chief Accountant.

(7) All official payments are to be made by cheque except where payable from petty cash.

(8) All cheques must be signed by at least two officers appointed for that purpose and specified in the Finance Manual.

(Financial Instructions 2005 s(19))

Payments

• All payments must be processed through payment vouchers prepared by the accounts officer. Separate vouchers are to be used for separate payees and for the payment of different services.
• The accounts officer preparing a payment voucher must ensure that all information required under Finance Instruction 3.3.1 has been included on the payment voucher or attached to it, before passing it to the Accounting Head or accounts supervisor for certification.
• The Accounting Head or accounts supervisor must not certify a payment as correct unless they are satisfied that:

o it is in accordance with an LPO, indent, contract, invoice or other authorisation;

o there is documentation that the goods, services or works have been received;

o sufficient uncommitted funds are available for payment of the account;

o the account is not fraudulent and has not been previously paid;

o the expenditure account it is charged to is correct.

• Any alteration to a payment voucher must be initialled by the Accounting Head or accounts supervisor.
• If a payment voucher is lost before payment, approval must be obtained from the Accounting Head before a replacement voucher can be issued.
• Immediately after payment has been effected, the accounts officer must stamp “paid” on all vouchers and supporting documentation to avoid any double payments.
• The accounts officer shall enter details of all cheques drawn into a Payment Cashbook before they are issued. The Payment Cashbook shall contain details of the payee, payment date, ledger account, cheque details and the amount paid.

Maintaining an Expenditure Ledger