| Basic accounting for Credit and savings schemes |
|Chapter 1: Getting started|
The management committee is responsible for setting out a framework of financial procedures designed to control the financial activities of the project, and for ensuring that the finance officers and other staff are aware of their responsibilities. The procedures explained in this guide could be used as a starting point. However, the management committee will need to decide who is responsible for each task.
In particular, the committee will need to decide the procedure for authorising payments. It may decide that all payments need to be authorised in advance by a committee member, in which case the cashier would need to obtain the signature of a committee member on each payment voucher (see figure 7) before making the payment. All loans made by the credit scheme should be authorised by the committee (see Chapter 6). However, the committee could decide that the cashier may make routine payments up to a certain amount without referring to a committee member.