Finance Procedures Manual

QUALITY MANAGEMENT SYSTEM BASED ON ISO 9001:2015
FINANCE PROCEDURES MANUAL
REVISION: 1
VERSION: 1
Prepared By Director of Finance Approved by CEO
Signature Signature
DAWASA – ISO 9001:2015 BASED QUALITY MANAGEMENT SYSTEM
ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13
TABLE OF CONTENTS
DEFINITIONS/TERMS/ACRONYMS IN THE MANUAL ....................................... 3
DAWASA/FIN/OP/01: BUDGET MONITORING & CONTROL ........................... 4
DAWASA/FIN/OP/02: FIXED ASSET MANAGEMENT ........................................ 7
DAWASA/FIN/OP/03: PAYMENTS AND PAYABLES ........................................ 10
DAWASA/FIN/OP/04: RECEIVABLE MANAGEMENT ....................................... 13
DAWASA/FIN/OP/05: PREPARATION OF FINAL ACCOUNTS. ...................... 16
DAWASA/FIN/OP/06: BANK RECONCILIATION ............................................. 19
DAWASA/FIN/OP/07: INVENTORY MANAGEMENT........................................ 22
DAWASA/FIN/OP/08: PAYROLL ........................................................................ 28
DAWASA/FIN/OP/09: REVENUE ASSURANCE ................................................ 31
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DEFINITIONS/TERMS/ACRONYMS IN THE MANUAL
Item Definition
DAWASA Dar es Salaam Water Supply & Sanitation Authority

EWURA Energy and Water Utility Regulatory Authority
MTEF Medium Term Expenditure Framework
GOT The Government of Tanzania
CAPEX Capital Expenditure
IPSAS International Public Sector Accounting Standards
CEO Chief Executive Officer
DF Director of Finance
AM Accounting Manager
PMU Procurement Management Unit
LPO Local Purchase Order
GRN Goods Receivable Note
GL General Ledger
EDAMS Electronic Data and Management System
IR Issue Requisition
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DAWASA/FIN/OP/01: BUDGET MONITORING & CONTROL
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure timeliness, efficiency and
effectiveness in monitoring and controlling budget expenditure.
1.2 SCOPE
These procedures shall apply to DAWASA head office, plants and regional
offices.
1.3 REFERENCES
Among others, reference shall be made to the following documents;
a) Approved MTEF.
b) EWURA Guidelines for Preparing Business Plan.
c) DAWASA Financial Regulations, 2018.
d) DAWASA Accounting Policies and Procedures Manual, 2018.
e) DAWASA Business Plan.
1.4 INPUTS AND OUTPUTS
INPUTS (Including resources) OUTPUTS
MTEF – Approved Budget Budget Implementation Report
Trained Personnel (Variance Analysis Report)
1.5 INTERFACES
All Directorates/Units.
1.6 RESPONSIBILITY AND AUTHORITY
The Director of Finance shall be responsible for assurance that these
procedures are implemented accordingly.
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2.0 DETAILS OF PROCEDURES

2.1 The procedures shall start with the Director of Finance receiving approved
budget by the Board.
2.2 On receipt of approved budget, the Director of Finance shall assign the
Accounting Manager to upload the budget into the accounting system basing
on the accounting codes, before 1 July of the financial year to which the budget
relates.
2.3 The Director of Finance shall review the uploaded budget in the system to check
the accuracy of the data.
2.4 After review of the accuracy of the of uploaded budget, the Director of Finance
will instruct the Accounting Manager to make sure that all payments are made
within the budget.
2.5 The Accounting Manager shall assign the Principal Accounts Officer to ensure
that the budgetary and accounting controls over allocations are exercised
through the general ledger.
2.6 Upon receipt of the Purchase Requisition, the Principal Accounts Officer must
verify on the availability of funds within 1 (one) working day.
2.7 The Principal Accounts Officer should not process any expenditure which does
not match with the approved budget. Expenditure or commitment shall only
be charged to cost center if sufficient funds exist. If, however, the charge of
commitment intended for the cost center exceeds the available funds, the
transaction will not be processed.
2.8 If the requirement of funds is higher than the approved or available budget for
a given activity, the Accounting Manager will notify the Director of Finance who
will initiate the following corrective action:
a) Communicate to the respective activity centre and advise for request of
reallocation of funds. Once the reallocation of funds is approved by the CEO
or Board of Directors as the case may require, the expenditure will be
processed. The Director of Finance will report to the Finance and Business
Development Committee of the Board such unbudgeted expenditure
incurred for ratification.
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b) If the reallocation is not approved the unbudgeted item shall be

cancelled/postponed until funds are secured.
2.9 The Director of Finance shall provide to the Heads of Directorates/Units
accurate and timely information regarding budgetary performance of their
departments quarterly within twenty five (25) working days after the end of the
respective quarter.
2.10 The Director of Finance shall constantly monitor budget performance for each
budget holder and communicate as regularly as necessary to alert budget
holders on significant movements on their budgets. All variances should be
identified and explained on quarterly basis.
3.0 REPORTING
The following reports shall be produced and maintained by the DF and AM
Period Description of the Deliverables
Quarterly Variance Analysis Report.
4.0 KEY PERFOMANCE INDICATORS

a) Timely preparation of variance analysis report.
b) Budgetary control.
c) Effective use of resources.
5.0 LIST OF APPLICABLE RECORDS/DOCUMENTS

a) MTEF.
b) Departmental Draft budgets.
c) Final Budget (Budget Book).
d) Quarterly Report.
e) CAPEX Performance Report.
f) Recurrent Expenditure Performance Report.
g) Cash Flow Projections.
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DAWASA/FIN/OP/02: FIXED ASSET MANAGEMENT
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure accuracy of the values of Authority
Fixed Assets.
1.2 SCOPE
This procedure shall apply to DAWASA all fixed assets within head office, plants
and regional offices.
1.3 REFERENCES
a) DAWASA Financial Regulations, 2018.
b) DAWASA Accounting Policies and Procedures Manual 2018.
c) IPSAS 17 Plant Property and Equipment.

Invoices, LPO,GRN Asset Recognition/Physical Existence
Transaction and details of the assets Fixed Asset Register
Depreciation Policy (Accounting Measurement, Financial Statements
Policies and Procedures Manual)
Impairment test Impairment test report
1.5 INTERFACES
a) Procurement Management Unit.
b) Directorate of Human Resource and Administration.
c) Directorate of Infrastructure Development.

The Director of Finance shall ensure that this procedure is adhered to.
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DETAILS OF PROCEDURE
2.1 The procedure shall start with the Director of Finance receiving documents for
new asset from Supplies Manager and/or certificate of completion/substantial
completion from the Project Manager for donor funded assets and completed
projects within 14 working days after receipt of final/substantial completion
certificate from the Consultant.
2.2 The procured asset will be supported by LPO/Contract, invoice, GRN and
delivery documents.
2.3 Donor funded assets and other completed projects will be supported by the
certificate of completion and the handover document, which provides details of
different categories of assets and their corresponding values/costs.
2.4 Upon receiving the evidence supporting the existence of asset, the Director of
Finance shall assign the Accounting Manager to capitalize the asset and include
them in the fixed asset register.
2.5 The Accounting Manager shall instruct the Principal Accountant to post the new
assets and update the fixed asset register. The asset register will be updated
within the month in which the documents supporting the completion of the
projects are received by the Finance Department.
2.6 The Principal Accountant shall on monthly basis, compute the depreciation and
post the new value into accounting system and update the asset register
accordingly.
2.7 At the end of every quarter, the Principal Accountant shall compile the financial
information and produce quarterly report.
2.8 At the end of the financial year, the Director of Finance shall liaise with the
Procurement Management Unit to procure a consultant to assist in conducting
a review of useful lives, residual values and impairment test.
2.9 The Director of Finance shall ensure that the review of useful lives, residual
values and impairment test is conducted and a report is issued for adjustments
in the books of accounts.
2.10 The Director of Finance shall instruct the Accounting Manager to de-recognize
items of property, plant and equipment and/or any significant part of an asset
upon disposal or when no future economic benefits or service potential is
expected from its continued use.
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2.0 REPORTING
The following reports shall be produced and maintained by the Director of
Finance and the Accounting Manager.
SN Report Frequency From To
01 Fixed Assets Register Quarterly and AM DF
annually

Updated Fixed Asset Register.
4.0 LIST OF APPLICABLE RECORDS

a) Fixed Asset Register.
b) LPOs, GRNs, Invoices.
c) Asset Useful lives, Residual values and Impairment test report.
d) Quarterly Fixed Asset report.
e) Quarterly financial performance report.
f) Project Completion certificates.
g) Asset Acquisition Form.
h) Asset Disposal/Retirement Form.
i) Asset Transfer Form.
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DAWASA/FIN/OP/03: PAYMENTS AND PAYABLES
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure timely, accurate and efficient
payments and accounting of payables.
1.2 SCOPE
This procedure shall be applied to DAWASA Head Office, plants and regional
offices.
1.3 REFERENCES
a) DAWASA Accounting Policies and Procedures Manual 2018.
b) DAWASA Financial Regulations 2018.
c) DAWASA Budget (MTEF).

Approved Budget
Approved Request/Claim in form of Invoices,
Contract, Bills, Work Order, GRN/Evidence of
delivery of service, Inspection Report, Certificates
(Interim Payment Certificate or Final Certificate) Payments
etc.
Monthly Payment plans
Personnel
Funds
1.5 INTERFACES
All Directorates / Units.

The Director of Finance shall be responsible to ensure that these procedures
are implemented accordingly.
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2.0 DETAILS OF PROCEDURE

2.1 This procedure shall start with the Director of Finance receiving dully approved
claim from user departments as per the delegation of Authority.
2.2 On receipt, the Director of Finance shall assign the Accounting Manager to
review adequacy of the claim and process payment. The Accounting Manager
shall assign the Principal Accounts Officer responsible for budget control to
ensure that it is within the approved budget and that there are enough funds
to finance the assignment.
2.3 In case the document is not adequately supported and not meet the criteria
stated under para 2.2, the Accounting Manager shall communicate and return
the documents to the relevant user department, within two (2) working days,
for correction.
2.4 The Accounting Manager shall prepare a payment plan for the month and
forward it to the Director of Finance for review and approval in every fourth
week of the month.
2.5 The Accounting Manager shall, based on the approved payment plan, assign
the Principal Accounts Officer to process the payment vouchers through
accounting software/system.
2.6 The processed payment vouchers will be forwarded to cashiers based on the
following procedure;
a) In case of petty cash payment, the Accounting Manager shall authorize the
payment to the respective payee and the cashier will arrange for payment
within one (1) working day.
b) In case of cheque payment, payment vouchers will be verified and stamped
as passed for payment by the responsible Accountant and submitted to the
cashier to prepare the cheque within two (2) working days and hand it to
signatories for authorisation. Once the payment cheque is signed, the
cashier shall inform the Payee to come and collect the cheque.
c) In case of online payments, payment vouchers will be verified and stamped
as passed for payment by the responsible Accountant and submitted to the
cashier who will initiate payment/transfer using the online payment platform
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and will submit the same for checking and approval by the signatories as
per the Bank signing mandates.
2.7 The cashier shall maintain all necessary documents such as payment vouchers
with supporting documents and issuing register relating to the payment made.
3.0 REPORTING
The following reports shall be produced and maintained by the Accounting
Manager and the Director of Finance.
01 Updated payable monthly, quarterly AM DF
ledger and annually
02 Budgetary Budgeted AM DF
Control expenditure
03 Payment Monthly AM DF
reports.

a) Timely Payments as per Departmental plans & guidelines.
b) Budgetary Control.
c) Updated payable ledger.
a) Invoice.
b) Certificates (Interim Payment Certificates.)
c) Delivery note.
d) Local purchase order.
e) Contract.
f) Payment voucher.
g) Payment request.
h) Payment plan.
i) Budget.
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DAWASA/FIN/OP/04: RECEIVABLE MANAGEMENT
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure effective management of
Receivables in the DAWASA Books of Accounts.
1.2 SCOPE
This procedure shall apply to the directorates of Finance and Customer
Services.
1.3 REFERENCES
a) DAWASA Financial Regulations, 2018.
b) DAWASA Accounting Policy and Procedures Manual, 2018.
c) DAWASA Customer Services Manual, 2019.
d) DAWASA Client Services Charter, 2019.

Ageing Analysis/Customer Listing Receivable Balances
Ageing Analysis Provision for doubtful debt
Impairment test (Debtors Age Analysis) Impairment test report
Monthly billing value report Updated Revenue in the Books
of Accounts
Monthly Collection Updated receivable balance
Employees Personal Files Staff Loans
1.5 INTERFACES
a) Directorate of Customer Services.
b) Directorate of Human Resource and Administration.

The Director of Finance shall ensure that this procedure is adhered to.
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2.1 The procedure shall start by the Accounting Manager receiving extracted
monthly billing and collections reports from the Customer Service Department.
2.2 The Accounting Manager shall assign the Principal Accounts Officer to update
both billing and collection revenues on monthly basis, this shall be done before
15th of every month, this will also ultimately update receivable balances at the
end of every month.
2.3 The Directorate of Customer Services shall provide to the Accounting Manager
detailed adjustments together with the trade receivables ageing analysis for
reconciliation purposes, and the Accounting Manager shall forward these
documents to the Principal Accounts Officer who will post those adjustments in
the accounting system before end of every month, which will automatically
update the receivable balances.
2.4 The Principal Accounts Officer shall reconcile the two balances on monthly
basis; General Ledger Receivable balance with customer balances from
(EDAMS). Any difference between the two, will be investigated and rectified
before issuing monthly reports (before 15th of the following month).
2.5 The Accounting Manager shall review the General Ledger on monthly basis
check for accuracy, correctness and completeness of the records, which are the
key inputs in the preparations of management accounts.
2.6 The Accounting Manager shall assign the Principal Accounts Officer responsible
for management of staff debtors to record all authorized payment for imprest
and salary advances against imprest retirement, receipt and deductions in the
accounting system (individual subsidiary ledgers) by 10th of the following
month.
2.7 The Principal Accounts Officer shall reconcile staff ledgers for imprest and salary
advances balances, which shall be reviewed by the Accounting Manager and
incorporated in the quarterly management accounts reports.
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3.0 REPORTING
01 Debtors Ageing Monthly Accounting DF
Analysis Manager
02 Impairment test Annually Accounting DF
report Manager

Accurate receivable monthly and yearly closing balances.

a) Monthly billing value report.
b) Monthly collection.
c) Debtors ageing analysis.
d) Quarterly management accounts report.
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DAWASA/FIN/OP/05: PREPARATION OF FINAL ACCOUNTS.
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure timely and effective preparation of
final accounts.
1.2 SCOPE
This procedure shall apply to DAWASA head office.
1.3 REFERENCES
a) IPSAS.
b) DAWASA Financial Regulations, 2018.
c) Accounting Policy and Procedures Manual, 2018.
d) DAWASA Staff Regulations, 2018.
e) Income Tax Act, 2014.
f) Procurement Act, 2011.
g) VAT Act.
h) Government circulars.
Financial Transaction and other information
Financial Statements as per
relevant to Auditing.
International Accounting
Governing manuals, procedures and circulars
Standards (IPSAS)
Funds
Personnel
1.5 INTERFACES
All Directorates /Units.

The Director of Finance shall be responsible to ensure that this procedure is
adhered to.
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2.1 This procedure shall start by the Director of Finance ensuring that all books of
accounts are closed at 30th June of each financial year and all general ledger
transactions are reconciled by 15th of July after the end of accounting period.
2.2 In case of any discrepancies in the general ledgers, the Director of Finance shall
authorize the Accounting Manager to make necessary adjustments.
2.3 The Accounting Manager shall capture the relevant adjustments into the
accounting system, within one week after receiving comments from the Director
of Finance.
2.4 The Accounting Manager shall forward the general ledgers to the Director of
Finance for final review, to facilitate the preparation of the Trial Balance.
2.5 The Director of Finance shall instruct the Accounting Manager to prepare draft
financial statements from the Trial Balances by 10th September.
2.6 The Director of Finance shall review the draft financial statements, if they are
prepared in conformity to the relevant accounting standards and Government
circulars. In case of any comment and recommendation, the Director of Finance
shall instruct the Accounting Manager to incorporate them.
2.7 The Director of Finance shall then present the draft financial statements to the
Management for adoption by 15th September, before submission to the Board
for approval.
2.8 The Director of Finance will incorporate the comments of Management and
cause the unaudited financial statements to be submitted, reviewed and
approved by the Audit Committee of the Board by 25th September.
2.9 Upon adoption of the draft unaudited financial statements by the Board, the
Director of Finance shall submit the draft financial statements to the Controller
and Auditor General on or before 30th September who will then prepare Audit
Plan and notify the Client (DAWASA) on the commencement of Statutory Audit.
2.10 In case of any audit queries, the Director of Finance shall ensure that
Management responds to the Audit queries within one (1) week from when
they were presented.
2.11 The Director of Finance shall prepare the Draft Audited financial statements
and Management Letter after incorporation of management responses for
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submission to the Auditors for final review within five (5) working days after
receiving management responses under para 2.10.
2.12 In case of any additional comments and recommendations from the Controller
and Auditor General, the Director of Finance shall incorporate them and submit
the revised Draft Audited financial statements within five (5) working days from
the date such communication was received from the Auditors (CAG).
2.13 Upon receipt of feedback from the CAG and submission of audited financial
statements and Management Letter to DAWASA, the Board of Directors shall
adopt the Audited Financial Statements, sign and send back to the CAG for
signing.
3.0 REPORTING
01 Trial balances Annually Accounting DF
Manager
02 Draft Financial Statement as Annually Accounting DF
per International Accounting Manager
Standards
03 Management letter Annually Management External
responses Auditors.

a) Unqualified report.
b) Timely submission of draft financial report.
c) Management letter response report.
a) Draft Trial balances
b) Draft financial statements.
c) Management Letter response.
d) Final Trial balance.
e) Audited financial Statements.
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DAWASA/FIN/OP/06: BANK RECONCILIATION
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure timely and accurate preparation of
bank reconciliation.
1.2 SCOPE
This procedure shall apply to DAWASA head office, plants and regional offices
1.3 REFERENCES
a) Bank statements.
b) Cash books.
Bank statement
Cash book (system generated), EDAMS Bank reconciliation statement
report
1.5 INTERFACES
Directorate of Customer Services.
The Director of Finance shall be responsible to make sure that bank
reconciliations are done timely.

2.1 This procedure shall start by the Director of Finance ensuring that Cashbook
balance and bank statement are reconciled by the 10th of each month.
2.2 The Director of Finance shall assign Accounting Manager to make sure that all
bank accounts are reconciled by 10th of each month by reconciliation section
other than those involved with receiving and disbursing cash and maintaining
cash records for internal control purposes. Accounting Manager shall ensure
that files for bank reconciliation statements are maintained.
2.3 The bank reconciliation process shall include;
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a) Comparing deposits shown on the bank statement with deposits that have
been recorded in the accounting records,
b) Any recent deposits that have not yet been reflected in the bank statement
shall be marked as deposits in transit.
2.4 During reconciliation, in case of unmatched entries, that might have been
encountered in recording deposits in the bank statement, the accountant shall;
a) Arrange, in numerical order, the cancelled cheques returned with the bank
statement.
b) Compare any cancelled cheques that were written in the preceding period
with the outstanding cheques written in the period listed for the last bank
reconciliation prepared. Note any cheques that are still outstanding at
the current reconciliation date.
c) Compare cancelled cheques written in the period just ended with the
cheques recorded in the accounting records, noting the outstanding
cheques. Also note any errors that might have been made in recording
cheques.
d) Prepare a list of cheques issued but not cashed at the reconciliation date.
e) Identify any increases or decreases on the bank statement that have not
been recorded in the cash book. Increases and decreases other than
routine deposits and cheques will usually be keyed with special symbols
in the face of the bank statement.
2.5 Upon rectification of the unmatched entries, the accountant shall submit a file
of the reconciliation statement to the Principal Accounts Officer responsible with
cash management for review by 8th of the following month.
2.6 The Principal Accounts Officer shall check on the accuracy of the reconciliation
statement before submission to the Accounting Manager for review and
approval. In case of any comment and recommendation the Principal Accounts
Officer shall incorporate before 10th of the month.
2.7 The Director of Finance shall maintain the reconciled bank
statements.
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3.0 REPORTING
The following report shall be produced and maintained by Accounting Manager
and DF.
SN Report Frequency From who To who
01 Reconciliation Monthly Accounting DF
statements Manager

a) Timely reconciliation – by 10th of the following month.
b) Accuracy.

a) Signed reconciliation statement.
b) Bank statement.
c) Cash book.
d) Journals.
e) Un-presented cheque.
f) Stale cheque.
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DAWASA/FIN/OP/07: INVENTORY MANAGEMENT
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure timeliness and efficiency in inventory
management.
1.2 SCOPE
This procedure shall apply to the inventory management at DAWASA central
store and sub stores.
1.3 REFERENCES
a) DAWASA’s Inventory Manual, 2018.
b) DAWASA Financial Regulations, 2018.
1.4 DEFINITIONS/TERMS/ACRONYMS
LPO: Local Purchase Order.
GRN: Goods Received Note.
TRN: Transfer Requisition Note.
IR: Issue Requisition.
DF: Director of Finance.
SM: Supplies Manager.
SO: Supplies Officer.
Materials/goods (stocks) Serviced user department.
1.6 INTERFACES
All Departments.
The Director of Finance shall ensure this procedure is adhered to.
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2.1 Stock Receiving
2.1.1 Receiving of material shall start with the Supplies Officer receiving a copy of
Local Purchase Order (LPO)/contract from the Procurement Management Unit
(PMU). The LPO entails the type of goods, descriptions of the goods, quantity,
and date of delivery.
2.1.2 Upon receipt of items, the Supplies Officer shall verify within two (2) working
days that, the goods/materials delivered meet the specifications as per the
Local Purchase Order/Contract.
2.1.3 The Supplies Officer shall not receive the items delivered if the physical quantity
delivered do not match with the quantities written in the supplier’s delivery
note.
2.1.4 If the goods/materials meet the specifications as per the LPO, the Supplies
Officer shall sign the Supplier’s Delivery Note with necessary remarks and keeps
the items in store waiting for completion of inspection.
2.1.5 The inspection committee shall verify the goods received as per requirements
indicated in the terms of reference.
2.1.6 If the delivered goods/materials are not in conformity to specified
requirements, the inspection committee shall reject the delivered
materials/goods and the supplier shall be notified accordingly within 14 working
days after delivery of goods/material.
2.1.7 If the goods/materials conform to the specifications required, then the
inspection committee and or user department shall sign the acceptance note
and the Supplies Officer shall prepare a Goods Received Note (GRN).
2.1.8 The Supplies Officer shall then provide a code for goods received and record in
the bin card waiting to be issued to the user department.
2.1.9 The Supplies Officer shall then submit a GRN attached with a copy of LPO,
delivery note, invoice, inspection note and a copy of PR to the Accounting
Section for payment processing.
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2.2 Stock Issuing

2.2.1 The Supplies Manager shall receive the duly approved Issue Requisition from
the user department detailing the items required to be issued.
2.2.2 The Supplies Officer shall verify the issue requisition note from the user
department and check if it is approved by the authorized officer. If the IR is not
properly authorized, the Supplies officer shall return it to the user department
within the same day.
2.2.3 If the IR is approved, the Supplies officer shall take out the relevant bin card
to check the stock levels against the request made. If the stock is available, the
item(s) is/are issued to the user and the IR shall be signed by the issuer. The
requested items will be issued within two working days from the date of receipt
of IR.
2.2.4 The Supplies Officer shall post materials received and issued in the bin card.
2.2.5 The Supplies Officer shall prepare gate passes to allow movement of materials
out of the store, which shall be approved by either the Supplies Manager for
Head Office stores or Regional/ Plant Manager for outpost stores. One copy of
the gate pass will be given to the gatekeeper to allow the item/s to move out
of the store.
2.3 Transferring of Materials.

2.3.1 This applies when transferring materials from the main store to another main
store.
2.3.2 The respective Supplies Officer shall prepare a Transfer Requisition Note (TRN)
containing the materials required, and the TRN must be approved and signed
by the SM and DF.
2.3.3 The issuing Supplies Officer shall verify the TRN from the user and check if it’s
approved. If the TRN is not properly authorized, the Supplies officer shall reject
it.
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2.3.4 If the TRN is approved, the Supplies officer shall take out the relevant bin card
to check the stock levels against the request made. If the stock is available, the
item(s) is/are issued to the user and the TRN shall be signed by the issuer and
receiver of materials. The Supplies Officer shall then prepare a gate pass and
issue it to the user.
2.3.5 The Supplies Officer shall post materials issued to the bin card.
2.4 Stock checking and stock taking.

2.4.1 The Supplies Manager shall maintain and observe a quarterly schedule of stock
checking to ensure that, periodic check of quantities and conditions of
materials/goods is done.
2.4.2 The Supplies Manager shall appoint the respective Supplies Officers who shall
conduct physical count of all the stocks. In conducting this, the Supplies Officers
shall compare physical quantities against the respective bin cards.
2.4.3 The Supplies Officer shall prepare a report within one week after completion of
stock checking exercise, indicating the status of the stock and submit it to the
Supplies Manager for review and forwarding it to the Director of Finance.
2.4.4 The Supplies Manager shall compile a list of all disposable items generated with
the appropriate recommendations to the Director of Finance for necessary
action.
2.4.5 In case of variation between the actual stocks taken and the bin cards, the
supplies officer shall be given 3 days to cross check the stocks in case of any
error in the records with the supervision of the stock taking team leader. The
supplies officer shall then update the records appropriate with the approval of
the team leader and the whole team. Any significant variation shall be included
in valuation report.
2.4.6 The Director of Finance shall set a date to start the stock-taking at the end of
every financial year and circulate internal memo to the Heads of Departments
and Units.
2.4.7 The Director of Finance shall propose names of staff from different
departments/units to participate in the annual stock taking exercise for the
CEO’s approval.
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2.4.8 The annual stock-taking exercise will be conducted in conformity with the
procedures laid down in the DAWASA Accounting Policies and DAWASA
Procedures Manual and DAWASA Inventory Manual.
2.5 Stock valuation and accounting.

2.5.1 Upon completion of stock-taking exercise. The Supplies Officer for each store
shall conduct stock valuation exercise from 7th of July to 15th July by pricing
all quantities found in the stock-taking sheet so as to get the total value of
materials/goods in stock.
2.5.2 The Supplies Manager shall prepare a valuation report and submit it to the
Director of Finance who shall furnish them to the Accounting Manager for
inclusion during the preparation of the financial statements.
3.0 REPORTING
The following reports shall be produced and maintained by the Stores Manager
and the DF.
01 Stock movement Daily, weekly, Supplies DF
report. monthly, quarterly and Manager
annually
02 Ordering level Quarterly Supplies Head of
report Manager user
department.
03 stock valuation annually Supplies DF
report manager

a) Timely issues of materials and goods.
b) Availability of adequate stocks: maintain ordering level.
c) Timely submission of stock movement reports.
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a) Local Purchase Order.
b) Delivery Note.
c) Acceptance and Rejected note.
d) Goods Received Note (GRN).
e) Issue Requisition Note (IRs).
f) Transfer Requisition Note (TRN).
g) Stores ledger and Store’s register books.
h) Bin card.
i) Stock checking schedule.
j) Stock movement report.
k) Advice Note of stores returned.
l) Stock taking sheets.
m) Physical movable fixed assets sheet.
n) Reordering report.
o) Stock valuation report.
Page 27 of 35
DAWASA/FIN/OP/08: PAYROLL
1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure effectiveness, consistency and
timeliness in the management of Authority’s payroll.
1.2 SCOPE
This procedure applies to the processing of the payroll.
1.3 REFERENCES
a) Public Service Act, 2002.
b) DAWASA Human Resource Policy and Regulations, 2018.
c) DAWASA Scheme of Service.
d) DAWASA Accounting policies and procedures manuals
e) DAWASA Financial Regulations
f) DAWASA Incentive Scheme
g) Income Tax act 2004
h) Vocational education training Act
i) Payroll system
1.4 DEFINITIONS/TERMS/ACRONYMS
a) DAWASA - Dar es salaam Water Supply and Sanitation Authority.
b) CEO - Chief Executive Officer.
c) DHRA - Director of Human Resource and Administration.
d) HRM - Human Resources Manager.
e) DF - Director of Finance.
f) AM - Accounting Manager
Employment records Correct payroll payments
Claims
Benefits/Allowances
Amendment of employees’ records
Page 28 of 35
1.6 INTERFACES
Director of Human Resources and Administration
1.7 PRINCIPAL RESPONSIBILITY

The Director of Finance shall ensure this procedure is adhered to.

2.1 This procedure shall start by the Director of Finance receiving forms for any
payroll changes sent by the Director of Human Resources and Administration.
2.2 The Director of Finance shall assign the Payroll Accounts Officer to update
payroll on monthly basis, this shall be done before 15th of every month.
2.3 The Payroll Accounts officer shall make sure that all information and documents
supporting payroll changes are properly effected to the payroll.
2.4 The payroll accounts officer shall forward the updated payroll to the Director of
Finance for verification by 20th of every month.
2.5 In the event of any discrepancy, the Director of finance shall make
recommendations to the payroll officer for amendment and resubmission by
22th of every month.
2.6 The reviewed payroll by the Director of Finance shall be sent to CEO for
approval by 23th of every month.
2.7 Upon approval, the CEO shall forward the payroll to the Director of Finance for
further processing of payment.
2.8 The Director of Finance shall receive the approved payroll from the CEO by 24
th of every month and forward the same for payment.
2.9 The Accounting Manager shall, based on the approved payroll, assign the
Principal Accounts Officer to process the payment vouchers through accounting
system
2.10 The processed payment vouchers will be forwarded to cashiers for payment
process by 25th of every month and on the same day salaries will be reflected
to the staff account.
Page 29 of 35
2.11 The Payroll Accounts Officer shall submit the payslips of all employees to the
Directorate of Human Resources and Administration for distribution to the
employees by 28th of every month.
2.12 The AM shall be responsible on accounting of payroll cost in the accounting

system.
3.0 REPORTING
The DF shall ensure monthly and annual payment of salaries records are
maintained.
4.0 PERFOMANCE INDICATOR

a) Timely payment of salaries.

a) Pay change forms.
b) Evidence of communication.
c) Payroll report.
d) Pay slips distribution register.
Page 30 of 35
DAWASA/FIN/OP/09: REVENUE ASSURANCE

1.0 GENERAL
1.1 PURPOSE
The purpose of this procedure is to ensure timely monitoring of revenue
collections to avoid revenue leakages.
1.2 SCOPE
This procedure shall apply to all points/sources of DAWASA revenues collection.
1.3 REFERENCES
(a) Bank Statements
(b) Billing system collection reports
(c) GePG collection reports
1.4 DEFINITIONS/TERMS/ ACRONOMYS

(a) DAWASA - Dar es Salaam Water and Sanitation Authority
(b) DF - Director of Finance
(c) RM - Revenue Manager
(d) RO - Revenue Officer
(e) BRO - Billing and Revenue Collection Officer
(f) EDAMS- Electronic Data and Management System
(g) SBM - Smart Billing Manager
(h) GePG - Government Electronic Payment Gateway

INPUTS OUTPUTS
Bank Statements
Revenue collection reports (Billing
Revenue reconciliation statement
Systems)
Issued receipts
GePG Collection Reports
DAWASA Receipts
Page 31 of 35
1.6 INTERFACE
1. Directorate of Customer Services
2. Directorate of Wastewater Management
3. Other departments that shall have revenue collection components in their
activities.
The Director of Finance shall be responsible to make sure that revenues
reconciliations are done timely
2.0 DETAILS OF THE PROCEDURE

A: REVENUE RECONCILIATION
2.1 This procedure shall start by the DF ensuring that revenues collected are
reconciled against GePG records.
2.2 The DF shall assign RM to make sure that all bank collection accounts are
reconciled against GePG records daily and a monthly report produced by
10th of each month.
2.3 The revenue reconciliation process shall include;
(a) Comparing the deposits shown on the bank statement with deposits that
have been recorded in the GePG
(b) Comparing the deposits shown on the billing system with deposits that
have been recorded in the GePG
(c) Any recent deposits that have not yet reflected on the GePG but reflet
in the bank statement shall be marked as deposits in transit
(d) Any deposits that have not yet reflected in the Billing systems (EDAMS,
SBM) but reflects in the GePG shall be marked as deposits in transit
(e) Any deposits made without the use of Control number shall be marked
as direct bank deposits
(f) Any deposits that have neither reflected on the bank statement nor the
GePG but have been receipted in the billing system shall be marked as
unpresented payments (Billing system) i.e., payments which were
banked (before the introduction of GePG system) but the evidence of
Page 32 of 35
payment were not submitted to DAWASA for receipting in the respective

customer billing system account.
2.4 During reconciliation, in case of unmatched entries that might have been
encountered the RO shall; identify and record any increase or decrease on
the GePG against Billing system or GePG against Bank.
2.5 Upon rectification of the unmatched entries the RO shall submit a file of
the reconciliation statement to the RM by 8th of the following month.
2.6 The RM shall check on the accuracy of the reconciliation statement and
approve it.
2.7 The DF shall maintain the reconciled revenue statements.
B: RECEIPTS MANAGEMENT
2.8 This procedure shall start by the DF ensuring that the original evidence of
payments submitted by a customer are verified in the bank statements and
the GePG; thereafter the payments are recognised in the billing system by
issuing system receipts.
2.9 The DF shall assign RM to make sure that receipts are issued as required
and a monthly report produced by 10th of each month.
2.10 The receipting process shall include;
(a) A customer shall present his/ her evidence of payment (original bank-
pay-in slip) or SWIFT copy to DAWASA
(b) The RO shall compare the details and figures shown on the evidence of
payment with those on the bank statement
(c) If the payment has reflected on the bank statement and the GePG portal
but not reflected in the billing system the RO shall repost the transaction
so that it reflects in EDAMS (in case the control number is still active). If
the control number has expired RO shall instruct the cashier to issue
receipt
(d) If the transaction was made before introduction of GePG in DAWASA (i.e
made without the use of Control number) the RO shall verify the deposits
on the respective bank statement; thereafter he/ she shall instruct the
cashier to issue billing system receipt
Page 33 of 35
(e) In case the transaction was made after introduction of the GePG but was
deposited without control number or with incomplete control number RM
shall instruct BRO to generate a new/ active control number thereafter
DF shall grant an approval to a respective bank to reverse and repost
the said transaction.
(f) In case the transaction was over/ under casted by a respective bank or
customer, upon receiving a request/ complain from a respective
customer/ bank, RM shall instruct RO to verify the said transaction on
the bank statement, thereafter RM shall instruct the BRO to generate a
new/ active control number for a respective transaction, DF shall grant
approval for a respective bank to reverse and repost the correct figure
(g) In case the payments were mistakenly made to DAWASA bank account;
upon receiving a request/ complain from a respective customer/ bank
RM shall instruct RO to verify the same on respective DAWASA bank
statement, thereafter DF shall grant approval for a respective bank to
reverse the said transaction respectively,
(h) If the payment does not reflect on the bank statement the respective
customer will be advised to make follow up to his/ her bank or network
provider (depending on the mode of payment used by a respective
customer).
2.11 In case a single transaction is to effect payments to various billing

system accounts the following process shall be involved;
(a) A customer (payer) to list down a list of accounts that have to benefit
with such payment showing how much will each account benefit,
(b) E-mailing the same to a responsible person in ICT, revenue section and
billing section.
(c) The BRO to generate a special control number for multiple accounts and
send it to customer for effecting payment.
(d) Upon effecting processing a said transaction every payment will migrate
to a respective billing system account.
Page 34 of 35
3.0 REPORTING
The following reports shall be produced and maintained by Revenue manager
and DF.
S/No. REPORT FREQUENCY FROM TO

01. Reconciliation Statements Monthly RM DF
02. Receipting Report Monthly RM DF
03. Receipting Report Daily RO RM

(a) Timely reconciliation.
(b) Timely submission of receipting report.
(c) Accuracy.

(a) Reconciliation statements.
(b) Bank statements.
(c) Billing system Collection reports.
(d) GePG collection reports.
(e) Receipting reports.
Page 35 of 35

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QUALITY MANAGEMENT SYSTEM BASED ON ISO 9001:2015

FINANCE PROCEDURES MANUAL

Prepared By Director of Finance Approved by CEO

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DEFINITIONS/TERMS/ACRONYMS IN THE MANUAL

DAWASA Dar es Salaam Water Supply & Sanitation Authority

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/01: BUDGET MONITORING & CONTROL

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

2.0 DETAILS OF PROCEDURES

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

b) If the reallocation is not approved the unbudgeted item shall be

4.0 KEY PERFOMANCE INDICATORS

5.0 LIST OF APPLICABLE RECORDS/DOCUMENTS

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/02: FIXED ASSET MANAGEMENT

1.4 INPUTS AND OUTPUTS

1.6 RESPONSIBILITY AND AUTHORITY

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

3.0 KEY PERFOMANCE INDICATORS

4.0 LIST OF APPLICABLE RECORDS

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/03: PAYMENTS AND PAYABLES

1.4 INPUTS AND OUTPUTS

1.6 RESPONSIBILITY AND AUTHORITY

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

2.0 DETAILS OF PROCEDURE

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

4.0 KEY PERFOMANCE INDICATORS

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/04: RECEIVABLE MANAGEMENT

1.4 INPUTS AND OUTPUTS

1.6 RESPONSIBILITY AND AUTHORITY

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

2.0 DETAILS OF PROCEDURE

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

4.0 KEY PERFOMANCE INDICATORS

5.0 LIST OF APPLICABLE RECORDS

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/05: PREPARATION OF FINAL ACCOUNTS.

1.6 RESPONSIBILITY AND AUTHORITY

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

2.0 DETAILS OF PROCEDURE

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

4.0 KEY PERFOMANCE INDICATORS

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/06: BANK RECONCILIATION

2.0 DETAILS OF PROCEDURE

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

4.0 KEY PERFOMANCE INDICATORS

5.0 LIST OF APPLICABLE RECORDS

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

DAWASA/FIN/OP/07: INVENTORY MANAGEMENT

ISSUED ON: 02/11/2019 FINANCE PROCEDURES MANUAL REF: DAWASA/FIN/PM/13

2.0 DETAILS OF PROCEDURE