Manager's Checklist to Ensure Good Financial Control

Controlling Receipts

• Issue pre-numbered receipts for all cash received.
• Keep all canceled receipts.
• Keep control over all receipt books that are bought and used.
• Bank all money promptly and intact. (Don't use any money received by the organization from sales or other sources before the entire sum received has been deposited in the bank).
• Perform monthly bank reconciliations.
• Use a register to record checks received.
• Do not cash personal checks from petty cash.
• Lock up all unused receipts books.
• Use a register to record all pledges and donations to the organization.

Controlling Assets

• Maintain a fixed assets register.
• Maintain up-to-date maintenance and inspection records.
• Provide permanent identification marks on all equipment.
• Protect against loss or theft with appropriate security and insurance.
• Keep usage records (log books, work tickets).
• Monitor advances and get them reimbursed within a short period of time.
• Invest cash reserves to generate the most income possible.
• Monitor Accounts Receivable to ensure that cash is received on time, and institute special procedures for overdue amounts.

Controlling Expenditures

• Obtain written bids or quotes for the costs of all purchases and file them with the purchase order.
• Use a local purchase order for all local purchases.
• Check that goods and services which have been reported as delivered have actually been received.
• Check that the quality, quantity, and price of the good or services received corresponds to what was purchased.
• Make all payments by check.
• Require supporting documentation for all purchases.
• Make sure that all expenditures are genuine, reasonable, and for the benefit of the project.
• Monitor your budget against expenditures.
• Review each expenditure. Ask, "Why are we spending this money on this item?"
• Check that funds are available.

Controlling Liabilities

• Keep accounts payable to a minimum.
• Maintain control of suppliers invoices; know what supplies you have paid for and when they will be delivered.

Modified from Carr Stanyar Sims and Co., Kenya