7. PAYMENTS:
7.1. Definition:
This policy describes the general guidelines and control procedures for the management of disbursements for the Church.
7.2. Controls & Responsibilities:
7.2.1. All payments must be made by cheques. Cash payments can only be made via the Petty Cash and within the specified maximum limit allowed.
7.2.2. Payments can also be made via inter-bank transfers, if instructed by the payee in writing or when it is deemed appropriate.
7.2.3. The cheque book containing unused cheques must be kept in locked drawers at all times except when being used for issuing cheque payments.
7.2.4. Only the Church Office Administrator shall be responsible for the issuing of cheques and for the safe-keeping of cheque book(s).
7.2.5. A cheque can only be issued when the Payment Voucher has been duly approved by two authorized signatories, one of whom shall be the Parish Priest.
7.2.6. Cheques shall be signed by three authorized signatories, one of whom shall be the Parish Priest, the second signatory shall be a member of the Parish Finance Committee and the third shall be an appointed member from the PPC.
7.2.7. The appointment of cheque signatories shall be recommended by the Parish Finance Committee and approved by the Parish Priest.
7.2.8. The Office Administrator shall flip through all unused cheques at the close of office each day. This is to ensure that all unissued cheques are duly accounted for. If any cheque leaves are found missing, this shall be immediately reported to the Parish Priest and the Parish Finance Committee for immediate and appropriate actions to be taken.
7.2.9. The payment voucher form is the main document of record and authority of all payments. The payment voucher shall be pre-numbered.
7.2.10. As the Parish has a minimal staff set-up, the Office Administrator is the same person who issues cheques, arranges for appropriate and relevant authorization and subsequently posts payments to respective payees, it is incumbent on the PFC to conduct regular inspection of payment vouchers in accordance with good procedural practice. This prevents any possible fraudulent practice that might arise.
7.3. Procedures for disbursements:
7.3.1. Incoming invoices must be logged in or placed in a “Pending Payment” file by the Office Administrator after these are verified and confirmed by the person(s) responsible for making the relevant purchases. In respect of utility bills and other similar invoices, these shall be checked by the Office Administrator and confirmed in order for payment.
7.3.2. A payment voucher is to be completed before an actual payment is made with the details of the payees, purpose, date, cheque number, amount, and account number.
7.3.3. The payment voucher shall be supported by primary documents such as the internal requisition form, local purchase order, suppliers’ invoice or statement and delivery order.
7.3.4. Before a payment can be made, the payment voucher must be approved by Parish Priest and in his absence, by a member of the PFC.
7.3.5. All payments must be made by cheques. Cash payments can only be made via the Petty Cash and within the specified maximum limit allowed.
7.3.6. Cheques that are issued shall be accompanied with the respective payment voucher duly supported by documents as mentioned in para 3.3.3 above and handed to the first authorized signatory who shall sight that accompanying documents are in order and that relevant procedures are complied with.
7.3.7. The first authorized signatory shall sign the cheque after he is satisfied that the accompanying documents and voucher are in order. He/she shall also ensure that the cheque counterfoil is duly initialed as evidence that he/she has signed the cheque. The Payment Cashier shall immediately revert to the first authorized signatory if it is found that the cheque counterfoil has not been initialed.
7.3.8. The second authorized signatory will usually be the Parish Priest. Based on the strength of the verification carried out by the first authorized signatory, he shall sign the cheque only if he is satisfied that such payment is in order. The second authorized signatory may refuse or defer to sign the cheque until certain clarifications are obtained.
7.3.9. As soon as a cheque has been signed, the Office Administrator will detach the cheque together with accompanying letter or document as deemed necessary for the purpose of posting.
7.3.10. It is the responsibility of the Office Administrator to post, deliver or forward such payment cheque to the supplier/payee as soon as possible.
7.3.11. The Office Administrator shall file the payment voucher together with supporting documents in the Payment Voucher file.
SAMPLE OF OLOG PAYMENT VOUCHER