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POLICIES AND
PROCEDURES MANUAL
FOR SACCOs IN UGANDA
CHAIRMAN
.
TREASURER
.
SECRETARY
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Section
1.1
1.2
1.3
1.4
1.5
1.6
CHAPTER
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Foreword
Background of SACCOs
Objectives of the Accounting Manual
Finance Department, giving its set-up and functions
Summary of Policy Statements
Duties of the Accounting and Finance Department
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2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
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3.1
3.2
3.3
Policy Statement
The Budgeting Process
Budgetary Performance and Control
28
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4.1
4.2
4.3
Policy Statement
Cashiering
Safe/Vault Cash Management
30
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33
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Transferring Cash
Section CHAPTER
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5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
Policy Statement
Opening of Bank Accounts
Bank Signatories
Cheque book maintenance and Cheque Payments
Cash/Cheque deposits and Cheque clearance
Cash Withdrawals from the Bank
Bank Reconciliation
Presentation in the Financial Statements
35
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6.1
6.2
6.3
6.4
6.5
6.6
Policy Statement
Types of Loans
Loan Disbursement
Loan Repayments
Recording
Loan loss Provisioning
41
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7.1
7.2
7.3
7.4
7.5
7.6
Policy Statement
Interest Receivable on Loans
Interest Receivable on Investments
Prepayments
Staff loans and Advances
Sundry Debtors
48
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8.1 Management Policies
8.2 Procurement
8.3 Obsolete stationery
52
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53
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Section CHAPTER
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9.1 Management Policies
9.2 Physical Control
9.3 Revaluation
54
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10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
10.9
Members' Savings
Loans and Balances due to Banks
Other Borrowed Funds
Capital Grants
Interest Payable
Payroll Liabilities
Accruals
Other Accounts Payable
Corporation Tax
59
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11.1
11.2
11.3
11.4
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Members' Contributions
Handling Members' Applications and Payment for Share Capital
Equity Grants Applied
Reserves
70
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71
73
12.1
12.2
12.3
12.4
12.5
12.6
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Management Policies
Types of Revenue
Interest Income
Operating Grant Income
Other Income
Disclosure in the Financial Statements
74
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13.1 Management Policies
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Section CHAPTER
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14.1
14.2
14.3
14.4
14.5
14.7
14.8
Management Policy
Internal Audit and Supervision
Appointment of External Auditors
Suitability of External Auditors
The Audit Process
Distribution of Audited Accounts
Removal of External Auditors
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Page7 of 164
ACRONYMS
CGAP
AGA
GAAPs
AMFIU
FSDU
GL
LL
SL
ITA
UCSCU
TB
UCA
LPO
MCAP
NSSF
PAYE
PSDPC
PMT
SACCO
Rural SPEED
URA
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1.1
INTRODUCTION
An Accounting Manual is a set of Accounting Policies and Procedures set up by Management
as a tool to foster an organized Internal Control Environment. This Manual was Funded by
Financial Sector Deepening Program Uganda (FSDU) that contracted Kisaka & Company
Certified Public Accountants and Management Consultants.
This Manual gives applicable Accounting and financial Policies that management uses as a
guiding tool in making financial and accounting decisions. It also contains step by step
procedures derived from the policies above to assist management in capturing, analyzing,
recording, summarizing and reporting accurate, reliable, relevant and timely financial
information. The Manual also describes the effective, economical and efficient ways of financial
management, as well as the responsibilities of planning, reviewing, monitoring, supervision and
control of financial resources.
It takes care of all compliance issues with Uganda Revenue Authority (URA), the Cooperative
Societies Statute 1991, the Cooperative Regulations 1992, the Consultative Group to Assist the
Poor (CGAP) and applicable Generally Accepted Accounting Principles (GAAPs), and
addresses the General framework within which individual Savings and Credit Cooperative
Society (SACCO) Bye Laws are formulated.
This Manual is a model or exemplary/illustrative that has not been written for a specific
SACCO but in view of a number of industry players. It has been written in consultation with
Post Bank Uganda (PBU), Uganda Cooperative Alliance (UCA), Uganda Cooperative Savings
and Credit Union Limited (UCSCU), Rural SPEED, GTZ, and the Ministry of Finance. It can
therefore be used as a benchmark and then customized to suit particular a SACCO needs.
1.2
BACKGROUND OF SACCOs
SACCOs are one form of cooperative societies whose business is to provide financial services
to its members. SACCOs are owned by their members through subscription for share capital
and membership fees.
1.3
To define the Accounting Policies of SACCOs both in general and specific nature
To ensure that SACCOs carry out their business activities and contracts, in compliance with
Ugandan law and Generally Accepted Accounting Principles
To provide a reference for staff in their day-to-day work and ensure that accounting policies
are well defined and formally documented
Page9 of 164
To act as a training manual especially for new staff recruited in the accounting function of
SACCOs
As far as practicable, each Component has been written to show the Policies, Accounting,
Internal Controls and Financial Reporting Disclosures
1.4
AnnualGeneral
Assembly
FinanceCommittee
AuditandSupervision
Committee
Manager
Accountant
Cashier
AccountantsAssistant
a) Financial Year
Each SACCO shall decide on when its financial year ends, preferably 30 June 0r 31
December.
Page10 of 164
1.5.2
1.5.3
1.5.4
1.5.5
Page11 of 164
1.6
1.6.2
1.6.3
Page12 of 164
To prepare short, medium and long term budgets using a participative bottom-up
approach as a basic tool for defining SACCOs periodic goals and objectives and
against which results will be compared to permit performance evaluations and
considerations in change of strategies.
d) To communicate between the Manager, the Staff, the auditors and other superiors
of financial and operational affairs.
Page13 of 164
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2.1
2.1.1
2.1.2
Financial reports namely Balance sheet, Income Statement, Cash Flow Statement, Statement of
Changes in Equity and Notes to the Financial Statements shall be produced annually and as and when
required by Management
2.1.3
Underlying Documents
1) All transactions will conform to the internal control objectives.
2) All transaction will be supported by appropriate vouchers and other sources documents to provide
an audit trail through the accounting system, eliminating redundant writing of documents wherever
possible that identify the business reason for the transaction, who originated the transaction, who
authorized the transaction, who verified the transaction, and archived in such a manner as they are
manageably retrieved.
3)
The Accountant is responsible for the correctness and reliability of all transactions.
4) Transaction authorization limits will be set by the Audit and Supervision Committee and advised
to individuals charged with this authority in writing. Limits refers not only to amounts, but also
to the types of transactions individuals may exercise that authority on.
5) All transactions will be recorded at the time they occur, or batched for end of day processing. In any
event, the days activities will be posted on the day they occur, and will be checked for authorization
and reconciled to authorized amounts.
The objectives of the above policy will be to show a true and fair view of a SACCOs state of
affairs and to explain its transactions and financial position to enable the stakeholders to
determine whether the SACCO is operating in line with its set objectives and in compliance
with the relevant laws and guidelines.
2.2
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A Chart of Accounts is the coding elements used to classify, record, budget and report financial
transactions. Every transaction must be properly coded to be a valid posting to a ledger.
A SACCOs Chart of Accounts should ensure the liquidity reporting sequence to govern the
structure of the general ledger as shown below. See (Appendix 2) for a detailed Chart of
Accounts.
2.2.1
Account type
Product
Ledger-type
2.2.2
X -X-
XXXX
This manual suggests five Account-types for all the ledger-types as summarized in
the table below
Account-type
-1-2-3-4-5-
General Ledger
Assets
Liabilities
Equity
Income
Expenses
Page16 of 164
This structure therefore supports the tracking of both Savings and Loans according to
the various products and also according to the Nature of the Account holder (Male,
Female, Group, Institutions, and Others)
2.2.3
General ledger shall comprise of all impersonal accounts for the SACCO and shall
also contain Control accounts for the personal Ledgers and sub-ledgers.
2.2.4
Assets
Liabilities
Equity
Revenue
Expenses
The structure of the Savings Account numbers may cater for up to nine Producttypes and five other categorizations according to the nature of the accountholder(s). This is illustrated in the tables below
Structure of Savings Account numbers according to Product
Account No. Structure
21 -XXXXX
22 -XXXXX
23 -XXXXX
24 -XXXXX
25 -XXXXX
26 -XXXXX
27 -XXXXX
28 -XXXXX
29 -XXXXX
Classification
Savings Product 1 A/C Numbers
Savings Product 2 A/C Numbers
Savings Product 3 A/C Numbers
Savings Product 4 A/C Numbers
Savings Product 5 A/C Numbers
Savings Product 6 A/C Numbers
Savings Product 7 A/C Numbers
Savings Product 8 A/C Numbers
Savings Product 9 A/C Numbers
Page17 of 164
2.2.5
The SL shall have sub-ledgers to cater for the distribution of Savings either
according to Product or according to the nature of the account-holder
There shall be Control accounts to correspond to the respective sub-ledgers so that
the Trial Balance shall reflect the distribution of savings accordingly.
2.3
Classification
Female Savers A/C Numbers
Male Savers A/C Numbers
Group Savers A/C Numbers
Institutional Savers A/C Numbers
Other Savers A/C Numbers
The contents and formats of these books and records are set out in the respective appendices
where necessary.
2.3.1
Ledgers
1) A Ledger, in the context of this manual is a collection of Ledger Cards that relate to a
similar activity or aspect of accounting for example, Savings, Loans etc. Ledgers that
relate to personal Accounts e.g. Savings and Loans must have a Control Account and
shall be categorized into sub Ledgers.
2) SACCOs shall maintain the following ledgers namely Savings ledger, Loan Ledger, and
General Ledger (GL).
3) A General Ledger is a collection of Ledger cards that relate to impersonal Accounts e.g.
Fixed Assets, Equity, Bank, Income and Expenditure etc. It also contains Control
Accounts for the Savings and Loan Ledgers and its structure is governed by the Chart
of Accounts.
4) Both the Savings and Loan Ledgers shall be categorized into Sub Ledgers for the
different types of Accounts (Females, Males Groups and Institutions). The purpose is to
facilitate the generation of qualitative information that will be used for updating the
PMT.
5) A sub Ledger is a collection of personal Ledger cards that relate to a specific operational
activity and arises out of the need to reclassify the main Ledger so as to generate more
qualitative information
6) A Control Account is an accounting record that contains the daily totals of transactions
of a particular set of Accounts for example total savings withdrawals/deposits, total
loan disbursements/repayments and so on. The source of information for updating
Control Accounts is the Day Sheets1 (DOC15)
7) A Ledger Card is an accounting record that is maintained in respect of a particular
Account Title. Each Account Title must have a unique Account number derived from
the structure of the Chart of Accounts for example all Savings Accounts will comprise
of seven digits starting with 2 and structured as 2X-X-XXXX
2.3.2
RepresentsthedailyTrialBalanceofallAccountsthathavebeenoperated
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2) The Ledgers must be updated on daily basis so as to ensure that their balances are as
current as possible
3) The process of updating the Savings and Loan Ledgers
i. The sources of information used to update the Ledgers are set out in the table
below.
Information source
1. Savings deposit slips
2. Savings Withdrawal Slips
3. None Cash Savings vouchers
4. Loan repayment slips
5. None Cash loan vouchers
6. Disbursements vouchers
ii. Prior to this, the Teller processes (see Cashiering) must be completed and the
Day Sheet must have been prepared and approved
iii. The Savings Ledger cards (DOC12) should be updated before the close of each
day so that they have up-to-date information at all times.
The following should be observed.
The double entry for none cash transactions shall be written on the face
of the vouchers and must be respected while posting
Page21 of 164
iv. The Loan Ledger cards shall be updated after a split (principal, interest income,
Interest arrears, surcharge etc) of the total amount paid by the client or
transferred from the clients savings account has been done and written on the
face of the voucher preferably in red ink.
Symbol
P
I
AI
S
Account to credit
Principal loan
interest Income
Interest Receivable
Other Loans Income (as per Chart of Accounts)
All of the days cash vouchers, none cash vouchers, receipts (for income and
shares), and payment vouchers shall be categorized according to their respective
Ledgers
Expenditure vouchers shall be categorized by Account code and recorded in the
debit column of the Day Sheet
Disbursement vouchers shall be categorized by Ledger and recorded in the debit
column of the Day Sheet
Page22 of 164
The sources of information used to update the Ledgers are set out in the table below.
Information source
Bank Accounts
Each Ledger must have a Control Account in the GL that shall be up-dated from
the Day Sheet (DOC15)
The individual Ledger Card balances (for each sub Ledger) shall be
extracted/machine-listed and the extracted totals compared with balances on the
Page23 of 164
The Accountant or ledger keeper must ensure that all transaction vouchers have
been posted to their respective Ledger Cards before balances are extracted.
When each ledger has been confirmed/balanced, the lists of balances shall be signed
by the Accountant and approved by the Manager before they are filed or kept.
The total number of accounts in a particular sub ledger listing of monthly balances
must balance with the respective Account-opening and Closing Register.
Where the number of accounts is less than the number in the Opening and Closing
Accounts Register, check for the opened accounts entered twice and closed
accounts entered twice by checking the entries in the register
A Dormant Account Register (shall have a similar lay-out as the Account Opening
Register) shall be maintained
Account Name
Debit
Shs
X
Credit
Shs
Movements from the Dormant Accounts for reactivation shall always be recorded
in the Dormant Accounts register and shall be authorized by the Manager. The
Page24 of 164
Account Name
Debit
Shs
X
Credit
Shs
2.4
TRIAL BALANCE
1) A Trial Balance (TB) is a listing of all GL balances as at a certain date presented in four
columns the first column to the left represents the Account code, the second represents
the Account Title, the third takes on the debit balances and the fourth takes on the Credit
Balances.
2) A TB shall be produced and signed by the Accountant on a monthly basis after all the
ledgers have been balanced and shall be and approved by the manager. A balanced TB
shall prove that double-entry was observed while posting transactions.
3) The process of extracting the TB
2.5
i.
The Ledgers and sub ledgers shall first be reconciled with their respective control
accounts (See 2.3.3 iii)), and all the GL ledger cards updated.
ii.
The individual Ledger Card balances (for each sub Ledger) shall be
extracted/machine-listed and then fed into the format of the TB described in subSection i) of this Section. The contents shall be chronologically arranged
according to the chart of Accounts.
iii.
The columns shall be totalled and ideally total debits must be equal to total credits
COMPARATIVE INFORMATION
Comparative information shall be disclosed in respect of a previous period for all numerical
information in the financial statements. Comparative information shall be included in narrative
Page25 of 164
RELATED PARTIES
2.6.1
2.6.2
2.6.3
Their terms and conditions, including whether they are secured, and the nature
of the consideration to be provided in settlement and
Details of any guarantees given or received
c) Provisions for doubtful debts related to the amount of outstanding balances, and
d) The expense recognized during the period in respect of bad or doubtful debts due
from related parties.
2.7
INCOME STATEMENT
SACCOs shall present income statements which group income and expenses by nature and
disclose the amounts of the principal types of income and expenses.
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Disclosures
The disclosures in the Income Statement or the Notes to the Financial Statements should
include, but are not limited to, the following items of income and expenses.
2.8
BALANCE SHEET
SACCOs shall present balance sheets that group assets and liabilities by nature and list them in
an order that reflects their relative liquidity and demandability. It will show the following:
Disclosures
The disclosures in the balance sheet or the notes to the financial statements should include, but
are not limited to, the following assets and liabilities.
Assets
Liabilities
Page27 of 164
Equity
2.9
Share Capital
Retained earnings
Share Transfer Fund (Duty to set up this Fund is imposed on the SACCOs by Section 43
of the Regulations)
A Reserve Fund into which 10% of the annual net surplus must be put. (Duty to set up this
Fund is imposed on the SACCOs by Section 34 of the Regulations)
2.
0
2.110
Investing activities are the acquisition and disposal of long-term assets and other
investments not included in cash equivalents.
Financing activities are activities that result in changes in the size and composition of
SACCOs' share capital and borrowings.
Cash equivalents are short-term and liquid investments that are readily convertible
to cash.
ii.
Each item of income and expense, gain or loss which, as required by other
standards, is recognized directly in equity, and the total of these items and
iii.
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2.
11
1
2.1
i.
The measurement basis (or bases) used in preparing the Financial Statements and
ii.
Each specific accounting policy that is necessary for a proper understanding of the
Financial Statements
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3.1
POLICY STATEMENTS
Budgets are the basic tool used to define SACCO goal and objectives for the current year of a
SACCOs strategic plan, and against which results are compared to permit changes in strategy
to improve performance. Each unit and/or activity can be incorporated in the budget to ensure
results of operations of all components of a SACCOs operation can be measured and
evaluated. Each unit is responsible for performance goals included in the planning process to
insure their commitment to the goals as well as their understanding of the goals.
3.1.1
SACCOs shall develop strategic plans (covering at least 3 years), reviewed annually, to ensure that
annual budget strategies are still in line with it.
3.1.2
Management will be responsible for providing an environmental analysis and projections for key budget
assumptions to all budget holders, as well as defining units and/or activities to be included in the budget
process.
3.1.3
Each budget holder will be responsible for preparing their own projections for their unit for the coming
year, considering external factors in their own operating environments as well as the key budgetary
assumptions provided by Management.
Page29 of 164
3.2
3.1.4
The final budget be prepared and reviewed by the Audit and Supervision Committee to ensure that it is
realistic and consistent with a SACCOs longer-term objectives, and will be approved by the Board of
Directors.
3.1.5
Monthly budget variance reports shall be produced for monthly reviews by management, and the Board
as required. Management will establish guidelines for the reporting of budget variances for individual
line items as well as net profit.
3.2.2
3.2.3
Budget Reviews
Management shall continuously review their budgets against prevailing conditions to
ensure that those budgets are realistic. Where amendments to the budget are required, a
report shall be submitted to the Audit and Supervision Committee. The procedure of
approval of the supplementary budget shall be similar to that for the original budget.
3.3
The Accountant shall prepare a consolidated monthly budgetary performance report for
management. This report shall show comparison between actual income and
expenditure and cash flows against budget.
3.3.2
The variances in value and percentage shall be shown together with detailed notes
explaining the causes of the variances. In addition, the corrective action to be taken shall
be indicated.
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4.1
POLICY STATEMENT
All Cash and cheque transactions of the SACCO must be handled by the Cashier. All Cash and cheques
received during the day must be handed over to the Accountant for onward transmission to the Vault/Safe
4.2
CASHIERING
Cashiering is the process of carrying out all of the activities implied by the responsibilities of a
Cashier as spelt out in 1.6.4. The details of such activities are as follows.
4.2.1
Till Management
1) Till management involves the planning, organising and controlling of all the Till
Sheet activities so as to ensure that services to clients and members are smooth and
free of inaccuracies whether intentional or otherwise. It therefore follows that all the
staffs that have a role to play in Cash management, have a role to play in Till
management but the cashier is particularly responsible for this.
Page31 of 164
A/C Code
Account Name
Debit
Shs
X
Credit
Shs
Cash
Cash Overages A/C
Narration: Being Cash overage from (Tellers name)
Account Name
Debit
Shs
X
Credit
Shs
Account Name
Debit
Shs
X
Credit
Shs
X
k) Cash shortages shall be recovered from the Cashiers salary within reasonable
time or at the earliest opportunity.
l) Persistent cash excess OR cash shortages in the Till shall be investigated and
appropriate action taken.
4.2.2
Page33 of 164
Credit side
Savings withdrawals
Loan Disbursements
All other Payments
Cash shortages
f) Cheque receipts shall be entered on the credit side of the Till Sheet after cash
transactions have been balanced. There should be some space to separate them.
4.3
4.3.1
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TRANSFERING CASH
This section provides guidelines on transferring cash from the Vault to the
from the Bank to the SACCO.
4.4.1
ii) The accountant shall raise a none-cash voucher, which shall be approved by the
Manager. The accounting entries are as follows
A/C code
Account Name
Debit
Shs
X
Credit
Shs
Bank
Cash
X
Narration: Being transfer of Cash from Vault to the (Bank name) A/C.
iii) A copy of the deposit slip duly stamped and endorsed by the Bank cashier shall be
attached to the none-cash voucher.
Page35 of 164
5.1
POLICY STATEMENT
SACCOS shall operate Bank Savings or Current Accounts with Commercial banks for their excess cash.
5.2
5.3
BANK SIGNATORIES
Page36 of 164
5.4
5.3.1
SACCOS shall have at least two signatories to each of the bank accounts. The
Committee in a Board resolution must approve selection of bank signatories on The
SACCO bank accounts in writing. The Committee shall also authorize management to
approve the opening of bank accounts for SACCO.
5.3.2
The Manager shall be the Principal Signatory while the Treasurer or the Chairperson
shall be the second signatory. The chairperson shall only sign in the absence of the
Treasurer.
5.3.3
The authority levels of each signatory shall be documented. In the event of a signatory
leaving the SACCO, the bank shall be instructed in writing to remove him or her from
the signatories list immediately.
5.4.2
Cheque payments
i) All Cheque payment shall be supported by Cheque payment vouchers duly
approved by the relevant authorities depending on the nature of the transaction and
the amounts involved.
ii) All Cheque payment vouchers shall be supported by, at least one of the following
a) Duly approved Payment Requisition form
b) Original Invoice and/or receipt
c) Any other documents in support of the transaction
iii) Where a payment is settling an outstanding obligation, the creditors reconciled
statement should be attached among the supporting documents.
iv) The Accountant will attach the supporting documents with a cheque payment
voucher and forward it to the Manager for verification and approval. The
verification shall include checking the following
a) Arithmetic accuracy
Page37 of 164
v) All payment vouchers together with the related supporting documents shall be date
stamped PAID immediately after payment.
vi) The payment accountant shall ensure that a receipt is obtained and that the payee
signs on the payment voucher or delivery book in acknowledgement for payment.
vii) Where receipts may not be easily obtainable e.g. payments to individuals, a
photocopy of the paid-out Cheque shall be made and the recipient of the Cheque
shall sign on it
5.5
The special arrangement shall emulate the set up of a School fees Account by a school
as follows
a) There shall be special deposit slips made in quadruplicate with features such as the
SACCOs account name and number, a serial number and labelling of the copies i.e.
Bank copy, 2 SACCO copies and, Clients copy.
b) Clients wishing to directly deposit their repayments onto the Bank account shall be
supplied with a few special deposit slips
c) A memorandum register of such clients may be maintained for reference purposes
Page38 of 164
ii) Incoming cheques shall be banked at the earliest opportunity but a cost benefit
assessment must be done where Banks are significantly distant from the SACCO
premises
iii) Crediting the respective accounts shall be on the basis of clear evidence from the
Bank that the Cheque actually cleared and such evidence shall, where applicable be
attached to the none cash voucher raised in that regard
iv) The following accounts shall be maintained to cater for incoming Cheque
transactions
Page39 of 164
Account Name
Debit
Shs
X
Credit
Shs
Debit
Shs
X
Credit
Shs
Incoming Cheques
Bank
X
Narration: Being recognition of Cash/Cheque number from
(Members name) for (Purpose of Cheque received)
Account Name
Bank
Incoming Cheques A/C
X
Narration: Deposit of (Members name)s Cheque number ..
Account Name
Debit
Shs
X
Credit
Shs
A/C Code
Account Name
Debit
Shs
X
Credit
Shs
Incoming Cheques
Bank
X
Narration: Being reversal of bounced-Cheque number from (Members
name) for (Purpose of Cheque received)
Account Name
Debit
Shs
X
Credit
Shs
Un-cleared Cheques
Incoming Cheques
Narration: Return of bounced-Cheque number to (Members name)
vi) All costs associated with processing Incoming Cheques shall be charged to the
beneficiaries/depositors of the Cheques by debiting their savings accounts and
crediting the Bank account (after raising the relevant vouchers). This shall be done
at the earliest opportunity as clients may withdraw all of the free balance from their
accounts before the charges are recovered.
vii) An extract of pending Cheques shall be made at every month end and
reconciled/compared to the respective Account balances
5.6
ii) All feasible security precautions (armed guards, bullion van, reliable transport, means of
quick communication, insurance etc) shall be taken with regard to cash in transit from the
Bank to the SACCO premises and vice versa.
iii) A Cheque payment voucher shall be raised in the names of the agent and shall be given to
the Cashier together with the withdrawn cash so that the transaction is incorporated in the
Cashiers transactions for the day
iv) The accounting entries are implied by the Till Sheet
Page41 of 164
BANK RECONCILIATION
i) Monthly Bank statements shall be obtained from the Banks by the 3rd of every month or at
the earliest opportunity so that Bank reconciliations can be prepared in time
ii) Both the Bank statement and the Bank Ledger card (which represents the Cash book side of
the Bank A/C) shall be photocopied and used in the reconciliation process as follows
a) All Bank charges shall first be extracted from the Bank statement and posted on the
Bank ledger card and Bank charges expense account as below (after raising the relevant
vouchers)
Account code
Account Name
Debit
Shs
X
Credit
Shs
Bank charges
Bank
X
Narration: Being Bank charges on the (Banks name) account for the
month of
b) Entries that appear on both the Bank statement and the
ticked
Bank Ledger
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6.1
POLICT STATEMENT
SACCOs shall take all the steps necessary to ensure sound loan management because loans form their biggest
asset and the biggest source of revenue
6.2
TYPES OF LOANS
Page42 of 164
6.3
Disbursement Procedure
Hard cash/transfer to Savings Account
The SACCO buys the Asset for the client and retains title
till the loan is paid off
Hard cash/Transfer to savings Account
Hard Cash/Transfer to Savings Account
Hard Cash/Transfer to Savings Account
Hard Cash/Transfer to savings Account
LOAN DISBURSEMENTS
i) Loans shall only be disbursed to members whom have gone through all the steps of the
appraisal process (these are covered in the lending manual).
ii) The responsibility of the Accountant shall be to ensure compliance with guidelines laid
down in the lending manual. The following questions, for instance shall be answered YES
before a loan is disbursed.
1.
2.
3.
4.
5.
iii) All members whom have accessed loans from the SACCO shall have loan files which shall
contain the following with respect to each loan disbursed to them.
a)
b)
c)
d)
Loan application
Appraisal details
Copy of receipt in respect of loan processing fees
A sketch map to their residences and or work places
e)
f)
g)
h)
i)
iv) Irrespective of the method of disbursement, the recipient must acknowledge receipt of the
loan by signing on the relevant documents
Page43 of 164
v) Where cash disbursements involve large sums of money, the Accountant or Manager may
assist the cashier to disburse so as to give members some confidentiality however, all the
disbursement vouchers and the accountability for the Cash disbursed shall be handed over
to the Cashier for incorporation into the Till Sheet.
6.4
LOAN REPAYMENTS
i) Loans repayments may be received in Cash or through none cash transactions that arise out
of direct deposits onto the SACCOs Bank account, transfers from Savings accounts and
other accounting adjustments. The repayments may be split into
a) Principal
b) Interest
c) Surcharge or Penalties
6.5
RECORDING LOANS
6.5.1
On Disbursement
i) The Accountant or Loan Official shall start a new Loan Ledger card for each loan
disbursed.
ii) The Cashier, in his or her Till Sheet, shall record loan disbursements on the credit
side, because they are a cash outflow.
iii) The Accountant, in his or her Day sheet, shall record Total loan disbursements per
Loan Ledger or category on the debit side, because they are an increase in the
current Assets.
6.5.2
On Receiving Repayments
i) The Cashier, in his or her Till Sheet, shall record loan repayments as a whole
(because the basis of splitting may not be readily available to him or her)
ii) Splitting the repayment shall be the responsibility of the Accountant and shall be
done concurrently with the posting of repayments onto the Loan Ledger cards.
iii) The priority of recovering the different elements of a loan repayment shall be as
follows
Page44 of 164
Priority
First
Second
Third
Fourth
Fifth
Sixth
Last
iv) The split of the transaction, according to the above priority, shall be written on the
face of the voucher preferably in red ink
6.6
6.6.2
Policy on Provisioning
All doubtful loans shall be provided for in accordance with the CGAP guidelines and best
practice. The provisioning shall be in respect of only the principal in arrears because interest
and other fees are recognized on modified cash basis.
SACCOs shall provide for loan loss on two fronts namely General provisions and Specific
Provisions.
The adequacy of loan loss provisions shall be reviewed on Quarterly basis as laid down in subsection ii) of Section 6.6.3.
Page45 of 164
i) General Provision
General provision means a loss reserve held against future and presently
unidentified losses and is thus freely available to meet losses, which subsequently
materialize. This implies that a flat 1% should be charged on all loans in arrears as
and when management may decide.
ii) Specific provision
a) Meaning of specific Provisions
Specific provision means a loss reserve held against future and presently
identified losses or potential losses and thus not available to meet previously
unidentified losses, which subsequently materialize. A loan that has due to some
reasons been specifically identified as doubtful under the respective loan
categories should have an addition provision of at the corresponding rates.
However, cash held as security may be deducted from the outstanding balance
of the credit facility before determining the specific provisions
Specific provisions on the due but unpaid principal shall be made for all loans in
view of the inherent credit risk of the industry by applying varying rates to the
different loan bands similar to the repayment periods.
b) Basis of Specific Provisions
Specific provisions shall be based on the number of days that have passed since
a particular loan installment (principal only) fell due but has remained unpaid for
any reasons. The rates applicable according to the numbers of days in arrears
may be based on the classifications below.
1-7
8-15
16-30
31-60
61-90
91-120
212-180
181 and above
6.6.3
Rate
Shall be determined by
Committee
Classification
(No. of Days in arrears)
Account Name
Debit
Shs
X
Credit
Shs
The lists used in the computations shall be attached to the none cash voucher as
support documents and shall be filed such that they are easily accessible for
reference in subsequent computations.
The loan listings to be used shall be extracted as described above and the
provision amounts per category computed as above
The new provision amounts per category shall be compared to the respective
prior period amounts so as to establish an increase or decrease per category
The increases and decreases shall be summed-up and the following Accounting,
depending on the net result, shall be passed
Where the net result is an INCREASE in the provisions amount
A/C code
Account Name
Debit
Shs
X
Credit
Shs
Page47 of 164
Account Name
Debit
Shs
X
Credit
Shs
6.6.4
The lists used in the computations shall be attached to the none cash voucher as
support documents and shall be filed such that they are easily accessible for
reference in subsequent computations
Write offs
i) A loan shall be written off if it is in arrears for extraordinarily long periods and
under the following conditions
a) The loan term must have expired
b) The last principal instalment must have been in arrears for over 90 days
c) It must be uncollectible in the opinion of management
ii) Authorization of Write-offs
Authority to write off loans shall be obtained from the Annual General Assembly
after management has given the Board of Directors a report to that effect.
iii) Accounting entries for writing off loans
a) Loans shall be written off against the Loan loss Reserves created (Specific and
General Provisions) as follows
A/C code
Account Name
Debit
Shs
X
Credit
Shs
X
b) Where the balances on the reserves is inadequate, write off shall be against
Specific loan loss provisions, General loan loss provisions and the Bad debts
expense account in that order of priority.
Page48 of 164
A/C code
Account Name
Debit
Shs
X
X
X
Credit
Shs
NB: It is assumed that by the time a loan becomes bad, it may have been
categorized as a non- performing loan and provided for.
iv) Recovery of written-off loans
a) Loan Ledger cards for written off loans shall be kept in a separate file so that
they can be referred to in case of subsequent recoveries/repayments.
b) Recovery of written off loans shall be recognised as other income as follows
A/C code
Account Name
Debit
Shs
X
Credit
Shs
Cash
Other income
X
Narration: Being a recovery on (Members name)s written off loan per journal
reference . Dated .
Page49 of 164
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7.1
POLICY STATEMENT
Other Accounts receivable shall comprise of all receivables except for loans. It shall cover
receivables like.
1)
2)
3)
4)
5)
6)
7.2
Account Name
Debit
Shs
X
Interest receivable
Accrued Interest Income
Narration: Being accrued Interest on loans as at (Period end date)
Credit
Shs
X
4) A detailed schedule of Accrued interest shall be maintained and be updated with subsequent
repayments.
5) Repayments in respect of accrued interest shall be recorded as credit entries on the Interest
Receivable on Loans account. This shall be captured in the Day sheet.
Page50 of 164
6) Accrued interest that remains unpaid for unreasonably longer periods shall be extracted in a
report and forwarded to the Audit and Supervision committee with a recommendation to
write it off against the Bad debts expense account.
7.3
Account Name
Debit
Shs
X
Interest receivable
Accrued Interest Income
Narration: Being accrued Interest on loans as at (Period end date)
7.4
Credit
Shs
X
PREPAYMENTS
1) Where a SACCO paid for a services for a periods longer or for a periods that do not fall
within the Accounting period (financial year), and such a payments were debited to expense
accounts, adjustments shall be passed on such expense accounts such that only the portion
of the expense that relates to the Financial year have an effect on the balances on the
accounts.
2) The adjustments shall be passed as follows
A/C code
Account Name
Debit
Shs
X
Credit
Shs
Prepayments (accordingly)
Respective expense account
X
Narration: Being adjustment for Prepaid (Expense) as at (Period end date)
3) Corresponding adjustments shall be passed at the onset of the subsequent accounting
period in a reverse manner
7.5
Staff Loans
Page51 of 164
Page52 of 164
Date of advance
Name of payee
Amount advanced
Brief description of purpose of payment
Reference number of the payment voucher
b) Where Salary Advances are issued for a period of more than three months, a
Ledger card shall be maintained to track the repayments
c) On receiving accountability for Accountable Advances, the following entries
shall be passed by use of a none cash voucher
A/C code
Account Name
Debit
Shs
X
X
Credit
Shs
Expense(s) (accordingly)
Cash (with the balance)
Accountable Advance
X
Narration: Being (Staffs name)s accountability for Funds issued on
(Date) in respect of (Activity/Activities)
d) Salary advances shall be recovered from the payroll and therefore the accounting
entries in this regard are considered in the Payroll section of this manual
7.6
SUNDRY RECEIVABLES
This account shall take care of all the debtors balances that cannot fit in any of the above
mentioned classifications and shall have a schedule showing the par-individual breakdown of
the balance there-on as at the Accounting period end. The schedule shall be supported by
genuine documentation of the composite transactions and shall be approved by the Manager.
Page53 of 164
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8.1
MANAGEMENT POLICIES
8.1.1
Recognition guidelines
a) During the ordinary course of the Accounting Period, all stationery purchases shall
be expensed by debiting the Stationery expense account
b) Recognition of stationery stock/inventory shall be an End-of-Period adjustment
preceeded by a Stock count which shall be documented on a Stock count form
(FM14) and witnessed by a member of the Audit and Supervision Committee.
8.2
Account Name
Debit
Shs
X
Stationery Stock
Stationery expense account
Narration: Being recognition of Stationer Stock as at (Period end Date)
Credit
Shs
X
Account Name
Debit
Shs
X
Credit
Shs
X
NB Copies of the stock count sheets shall be attached to the none cash vouchers raised
Page54 of 164
8.3
8.4
PROCUREMENT OF STATIONERY
8.3.1
The supply of printed stationery shall be from a reputable supplier recommended by the
Audit and Supervision Committee
8.3.2
The SACCO shall invite at least three bids for the selection of such a supplier.
8.3.3
Local Purchase Orders (LPO) shall be placed to the supplier in a timely manner so as to
avoid unnecessary shortages.
8.3.4
Un-printed stationery may be purchased from any shops but the purchase shall be
supported by authentic invoices and/or receipts.
OBSOLETE STATIONERY
8.4.1
Items of stationery shall be declared obsolete if they are no longer usable in their
current state or if no value at all, can be derived from them.
8.4.2
While carrying out stationery stock counts, the obsolete items shall be recorded on
separate the stock count sheets (clearly labeled OBSOLETE) and no adjustments shall
be passed in respect of such obsolete items. This implies that the value of such items
shall remain part of the Stationery expense.
8.4.3
Obsolete items shall be burnt immediately after the stock count upon the authority of
the member of the Audit and Supervision Committee that witnessed the stock count
and the Stock count sheets shall be filed on the Stationery file.
Page55 of 164
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9.1
MANAGEMENT POLICIES
9.1.1
Definition
Property, Plant and Equipment shall include tangible assets that are held for use in the production of
goods or services, for rental to others or for administrative purposes and are expected to be used for more
than one year. They may also include items held for maintenance or repair of such assets.
9.1.2
Procurement
a) The Manager shall identify the need for the asset and raise a Purchases Requisition
Form (FM10) to the appropriate Committee for authorization and approval of the
purchase of the asset.
b) SACCOs shall invite at least three bids for major purchases.
c) The Manager shall identify a list of suppliers of small items such as stationery for
The Committee/Committee approval.
d) An order shall be placed to a supplier whose offer is the best on the market list (the
market list gives different stationery items with different offers in the locality, and it
is updated periodically). The accountability documents shall usually be the
requisition form, and the invoice/receipt.
e) All purchases shall be processed through a Local Purchase Orders (LPO).
i. These start by requesting at least three suppliers to express their offer for item(s)
called a pro forma invoice
ii. The several pro-forma invoices are put together and evaluated to see who has
the best offer
iii. The best offer is chosen on the basis of quality, price, delivery conditions, and
terms of payment
iv. The award of tender is made known by issuing a supply order, which specifies
the requirement and the terms of supply as per the winning offer
Page56 of 164
9.1.3
Recording
1) Capitalization of assets takes place when the benefits of the expenditure are expected
to extend over periods beyond one year and the cost is more than Shs 500,000 or as
management may agree or as allowable for capitalization in the Income Tax Act1997
2) Donated assets should be capitalized at their market value at the time of donation.
3) The capitalization value of assets is the cost involved in bringing the asset to its
present location and condition i.e. transportation, clearing charges, taxes and
installation costs should be added to the purchase cost of such assets.
9.1.4
Depreciation
1) Depreciation shall be calculated on the straight-line basis to write down the cost of
each asset at their residual values over their estimated useful life as follows:
Fixed Asset Class
Freehold land and Buildings
Motor vehicles and cycles
Furniture and office equipment
Computer equipment-Hard ware
Computer software
Applicable rates
Nil
12.5% to 25%
5% to 12.5%
12.5% to 33.3%
20% to 33.3%
2) Depreciation shall be calculated per item of Plant, Property and Equipment, and the
calculation shall be detailed out in the Fixed Asset Depreciation form (FM15) a copy
which shall be appended onto the none cash voucher raised to that effect
3) Accounting entries shall be passed with respect to each Fixed Asset class as follows
A/C code
Account Name
Debit
Shs
X
Credit
Shs
Depreciation expense
Accumulated depreciation (accordingly)
X
Narration: Being depreciation expense on (Asset Class) for the yea ended
Page57 of 164
9.2
PHYSICAL CONTROLS
9.2.1
Physical Inspections
The fixed assets shall be physically inspected on an annual basis to coincide with
SACCOS Year-End. An inspection report shall be prepared by the Accountant and
submitted to the manager for action. The results of the inspection shall be documented
and where necessary, adjustments shall be made to the fixed assets register (BK14) and
general ledger.
9.2.2
9.2.3
Insurance of Property
All SACCO property shall be insured with a reputable insurance firm. The terms of the
insurance policies shall be followed in order to avoid loss. All assets should be insured under a
comprehensive policy at their market values. The amount insured should be reviewed
periodically and at least once a year.
9.2.4
Safe Custody
A person using the assets shall take particular responsibility over each asset item in his/her
possession and to ensure its proper use and custody. Management will issue rules regarding the
location and times for parking assets.
9.2.5
Disposal of Assets
Page58 of 164
5) Upon sale of the assets, the cost and accumulated depreciation are removed from
the accounting records.
6) For any difference between net book value and net proceeds from sale, the
accounting shall be as follows
If the difference is a gain:
A/C code
Account Name
Debit
Shs
X
X
Credit
Shs
Debit
Shs
X
X
Credit
Shs
Account Name
Page59 of 164
REVALUATION OF ASSETS
9.3.1
A SACCO may have its property, plant and equipment revalued regularly by a firm of
competent quantity surveyors and valuation professionals, such that the carrying
amount does not differ materially from that which would be determined using fair value
at balance sheet date. The valuation figures in the valuation report shall be used to
replace the cost figures in the Fixed Asset Register and general ledger. When a particular
fixed asset is to be revalued, the entire class of fixed assets to which that item belongs
shall be revalued. Revaluation should be done evenly over the chosen periods,
preferably after every five years.
9.3.2
Account Name
Debit
Shs
X
Credit
Shs
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This chapter covers the following elements.
10.1
Members Deposits
Loans And Balances due to Banking Institutions
Deferred Grant income
Interest Payables and other Liabilities
Tax Payable
MEMBERS DEPOSITS
10.1.1 Opening and Operating Savings Accounts.
The SACCOs saving accounts may be personal, joint, minor, group or institutional and
shall be opened by members only. The following guidelines have to be followed in the
opening and operation of the Savings accounts by members.
1) The applicant shall complete the Application Form for Opening a Savings Account
(FM2) and affix his/her photograph.
2) The details of the applicant shall be recorded on the Savings Ledger Card (DOC12)
to which shall be affixed his/her photograph. The applicant shall affix his/her
specimen signature on the Personal Savings Ledger Card. Personal Savings Ledger
Cards shall be kept in a lockable box and access shall be restricted to designated
officials only.
3) In case the applicant would like to authorize other people to withdraw money from
his/her Savings Account, the applicant shall complete the Third Party Mandate
Form (FM11) as required.
Page61 of 164
4) The Manager or designated official shall complete and issue a Pass book to the
applicant. The Passbook shall contain the Members passport photograph and
specimen signature duly stamped and certified by the Manager or designated official.
5) The applicant shall complete a Savings Deposits Slip (DOC9) for depositing at least
the minimum deposit required for the SACCOs Savings Account. Every member of
the SACCO shall be required to have a savings account.
6) The Cashier shall receive the Passbook, Savings Deposits Slip and cash. He/she shall
then count the cash and check the information filled in the Savings Deposits Slip to
ensure that it is correct, keep the cash and pass on the pass book and deposit slip to
the Manager or his/her representative for authorization.
7) The Manager/Accountant shall check the Deposit Slip and initial it, record the
amount deposited into the Passbook and Savings Ledger Card (DOC12), work out
the new outstanding balance, initial and return the passbook and Deposit Slip to the
Cashier and keep the Savings Ledger Card.
8) The Cashier shall return the Passbook to the applicant or client and keep the
Deposit Slip. The Cashier shall not keep members Passbook after they have
completed their transactions.
9) In course of the day and in particular at the end of the day, the Cashier shall give
each Deposit Slip a unique serial number for the day and post them to the days Till
Sheet (DOC16)
10) The Cashier shall staple/ tie together all savings Deposits Slips for the day with a
rubber band and pass them on to the Manager/Accountant together with the Till
Sheet.
11) After preparing the Waste Sheet (DOC20) the Manager shall securely keep the
Savings Deposit Slips in a lockable cup-board, which has controlled access.
12) At the end of the day, the manager/Accountant shall record all Pass Books issued in
the Passbook Distribution Register (BK11). The Accountant or designated Official
shall also complete the Account Opening Register (BK1).
10.1.2 Handling Full Passbooks or Savings Ledger Cards.
1) Whenever the depositors passbook is full, the balance thereon shall be transferred
to a new Passbook which shall be given the same number as the old one. Other
personal details shall also be transferred.
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Account Name
Debit
Shs
X
Credit
Shs
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C.
Account Name
Debit
Shs
X
Credit
Shs
A/C Code
Account Name
Debit
Credit
X
X
Narration-To recognize income that had been deferred with respect to the Grant terms
10.3
CAPITAL GRANTS
This account is used to record Grants for the purchase of equipment or those Grants for the
Capitalization of credit subject to restrictions with regard to the use of the Funds. They are
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On receiving
A/C Code
Account Name
Asset Account
Deferred Capital Grant
Amount (Shs)
Debit
Credit
X
X
ii.
On recognition
A/C ode
Account Name
Amount (Shs)
Debit
Credit
Deferred Grant Income
X
Depreciation/Equity-Reserves
X
Narration: To recognize the asset portion realized as equity (to compensate depreciation expense) for
the period with regard to asset
a) Sufficient provision shall be made for depreciation, bad loans and accrued expenses.
b) Provision for doubtful and bad loans shall be made in accordance with the ageing
structure for loans using recommended rates as stipulated in SACCOS Lending Policies
and Guidelines.
10.4
To record the accrued interest payable in a time period the following accounting entries shall be
made.
A/C Code
Account Name
Amount (Shs)
Debit
Credit
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Interest payable
PAYROLL LIABILITIES
10.5.1 Payroll liabilities include net salaries payable, PAYE payable, NSSF payable, Gratuity
payable etc.
10.5.2 PAYE is a form of withholding tax from an employees gross pay recorded as follows:
i) On recognizing the liability
A/C Code
Amount (Shs)
Debit
Credit
Salary expense
X
PAYE payable
X
Narration: To recognize PAYE payable for . (month & year)
ii)
Account Name
On payment
A/C Code
Account Name
PAYE payable
Bank Account
Amount (Shs)
Debit
Credit
X
X
Account Name
NSSF SACCOs contribution-10%
Salary expense - (Employee contribution)-5%
Amount (Shs)
Debit
Credit
X
X
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A/C Code
Account Name
NSSF /Statutory pensions payable
Bank/Cash
Amount (Shs)
Debit
Credit
X
X
10.6
ACCRUALS
10.6.1 Accrued expenses arise when goods or services have been received or services utilized
prior to the end of the accounting period, but where payment has not been made.
Accruals should not be made simply to show expenditure in the period in which it was
budgeted, unless the goods or services were actually received in that period.
10.6.2 For monthly accounts, accruals should only be made where they are material.
10.6.3 To accrue expenses, the following entries shall be passed by use of none cash vouchers
duly supported with the bases for accrual as attachments.
A/C Code
Amount (Shs)
Debit
Credit
Expense account (accordingly)
X
Payables (accordingly)
X
Narration: To accrue .. (No of months)s .. (Expense name) as at
(Period end Date)
10.7
Account Name
10.7.3 Other known creditors e.g. Telephone, Electricity, Water etc. shall be accrued after the
Managers approval.
10.8
CORPORATION TAX
10.8.1 The Income Tax Act 1997 demands that all the gross income of a person for the year
less total deductions allowed under the same Act is income subject to corporation tax at
the prescribed rate, currently at 30 %.
10.8.2 After taking into consideration all the necessary income tax provisions, a provisional
final installment amount will be provided for in the accounts. To arrive at the final
installment tax payable, the overall 30% tax liability computed for the year should be
adjusted with all the provisional installments that were made during the year.
Provisional Returns
Provisional tax returns should be submitted as follows:
Before 30 June
Before 31 December
Before 30 April
Computation
Each installment of provisional tax shall be computed as follows:
50% X (A-B), where
A Estimated tax payable by the SACCO for a year of income
B Amount of tax withheld under the Income Tax Act prior to the due date for
payment of installment for which the SACCO has tax certificates.
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11.1
MEMBERS CONTRIBUTIONS
Subject to the provisions and the rights attaching to any class of shares, the holders are entitled
pari passu amongst themselves to the profits of the SACCO available and recommended for
distribution. On a winding up of the SACCO, the balance of the assets available for distribution
shall, subject to any sanction as required by the statute be divided among the members in
proportion to the amount of capital paid up on each Ordinary Share. This is in addition to
voting rights. Other rights are enshrined in the bye laws.
The SACCO should disclose in the notes for each class of share the following details
The number of shares authorized
The par value per share
Rights relating to each class of shares
11.2
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A/C name
Portfolio equity Grants
Fixed assets equity Grants
11.3.2 These accounts show the balances of Grants in fixed assets and portfolio free of special
restrictions by the donors and, therefore, taken in as part of the SACCOs equity.
11.3.3 The following entries shall be made in respect of Equity Grants depending on whether:
A Grant has been receive free of restrictions
The Grant received is restricted
The restrictions on the Grant have been freed/fulfilled
The Equity Grant /donation is in kind
On receiving a Grant free of restriction:
A/C Code
Account Name
Amount (Shs)
Debit
Credit
X
X
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A/C Code
Account Name
Amount (Shs)
Debit
Credit
Cash/ Bank (accordingly)
X
Differed Grants (accordingly)
X
Narration: To recognize restricted Grant(s) from (Donors name)
When the restrictions on the Grant have been fulfilled:
A/C Code
Account Name
Amount (Shs)
Debit
Credit
X
Deferred Grants
(accordingly)
Portfolio/FA Equity Grant
(accordingly)
Narration: To recognize donated Equity from .. (Donors name)
11.4
RESERVES
11.4.1 Definition of Reserves
Disclosure
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12.1
MANAGEMENT POLICIES
12.1.1 Definition
Income shall encompass both revenue and gains. Revenue is income that arises in the
ordinary course of business e.g. fees, interest, dividends, royalties, penalties,
commission. Gains may or may not arise in the ordinary activities of an enterprise e.g.
disposal of non-current assets.
12
1..2
2 Revenue shall not be recognized unless it meets certain standards of transfer of
12..1
ownership, certainty, collectability and measurability.
12.1.3 Capital and reserve Grants shall be disclosed in equity on a cumulative basis, against the
related accumulated costs over time. Grants relating to operating expenditure shall be
shown as non-operating income in the income statement.
12.2
TYPES OF REVENUE
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A/C Name
Interest received on loans
Loan Commitment fees
Surcharge on loans
Collection fees
A/C Code
A/C Name
Membership fees
Sale of stationery
Saving Ledger fees
Account closure fees
Other Income
A/C Code
A/C Name
Grant income
Interest from Bank A/C
Profit on Sale of Fixed Assets
Foreign Exchange gain
Miscellaneous income
12.3
INTEREST INCOME
12.3.1 Interest on Loans
Interest on loans shall be recognized on modified accrual basis as described in Section 7.2 of
this manual.
12.3.2 Interest on Investments
Interest on Investments ordinarily arises out of Fixed Deposit Placements with other Financial
Institutions and the SACCO shall pay 15% WithHolding Tax thereon, in accordance with
Section 117 of the Income Tax Act. The 15% WithHolding constitutes a Tax credit which is
deductible from Gross Tax liability at the end of the Financial Year and must therefore be
accounted-for properly. Every time Interest is received on Investments, the following entries
shall be passed.
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A/C Code
Amount (Shs)
Debit
Credit
Bank (85% of the Gross Interest)
X
WithHolding Tax Claimable (15%)
X
Interest on Investmants (100%)
X
Narration: To recognize Interest on FD Placement for .(Investment Period) with
.(Bank)
12.4
Account Name
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Account Name
Amount (Shs)
Debit
Credit
Respectiveassetaccount
X
DeferredassetGrant
X
Narration: To recognize donated . (Asset name) from .. (Donors name)
To recognize income on a systematic basis/depreciation charge
A/C Code
Amount (Shs)
Debit
Credit
DeferredassetGrant
X
GrantIncome(withtheDepn.Charge)
X
Narration: To recognize income on depreciation of donated . (Asset name)
from .. (Donors name)
12.5
Account Name
OTHER INCOME
Other income shall be from non-recurring sources like profit or loss from the sale of fixed
Assets or investments, profit or loss on exchange of a foreign currency, recovery of bad
debts etc.
12.6
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13.1
MANAGEMENT POLICIES
1) All SACCO expenses shall be recognized immediately they are incurred (expenses shall be treated on
accrual basis).
2) All SACCO expenses must be in the approved budget and shall be incurred only when there is still a
balance on the budget item or upon the approval of the Board of Directors if it is over and above Budget.
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9) After payment, the Payee shall acknowledge receipt of payment and provide SACCO with his/her own
receipt.
10) All SACCO capital expenditure shall be initiated by the Manager, authorized and approved by The
Board of Directors/Committee.
11) The Committee minute authorizing the expenditure shall be quoted on the expenditure documents.
12) The Chairperson and SACCO Secretary/Treasury shall sign the minutes.
13) The capital expenditure documents shall include:
i.
ii.
The Voucher
The original copies of the suppliers invoices
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Analysis of the evaluation report and award of the tender where more than one quotation was
received.
14) All paid Vouchers shall be kept in the order of date paid, batched and kept by SACCO Manager
15) The Finance Committee of the Board shall, from time to time, set procurement guidelines to streamline the
processing and management of large expenses.
13.2
Gross salaries
Staff welfare and incentives
NSSF 10%
Gratuity
Staff trainings, workshops and capacity building
Other Personnel Expenses
Stationery expenses
Rent of office premises
Office expenses
Telephone
Internet and e-mail
Professional fees
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5) Governance
6) Statutory expenses
13.3
ACCOUNTING PROCEDURES
13.3.1 Expenditure Processing
1) Initiation of payments
Users on identifying a requirement shall raise a requisition that shall be
recommended by the user for approval by the Manager, before it can be processed
for payment.
2) Authorization of payments
In line with budgetary limits and any other managerial considerations, payments or
any advance claims shall be verified and approved by the manager.
3) Refunds
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d) SACCOs must note that interest payable on savings deposits is a cost and they shall
have the capacity to pay.
Minimum balance held during months 1 & 2 TIMES the applicable interest rate
DIVIDE by 6 PLUS
Minimum balance held during months 3 & 4 TIMES the applicable interest rate
DIVIDE by 6 PLUS
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Minimum
balance held
A
Shs
1
2
3
4
5
6
Applicable
annual
interest
B
60,000
120,000
200,000
250,000
100,000
50,000
AxB
Interest payable
per month C/6
C
Shs
D
Shs
3%
1,800
300
3%
6,000
1,000
3%
1,500
250
1,550
At the end of 6 months and end of the year, DEBIT interests paid on Savings
Account and CREDIT respective members Accounts as follows
A/C Code
Account Name
Amount (Shs)
Debit
Credit
Interest on Members deposits expense
X
Members savings Account (85%)
X
Withholding Tax Payable (15%)
X
Narration: Interest paid on members accounts for .. Months ended . (Date)
13.4
PAYROLL COSTS
13.4.1 Introduction
Payroll costs include the cost of hiring staff on a permanent or on a casual basis.
It does not, however, include costs of hiring consultants.
The overall policy on staff is set out in a separate manual. This document only
serves to cover the accounting aspect.
A Pay Roll (FM8) shall be prepared monthly and shall reflect the payments due
to all employees. A payroll summary will be filled for all permanent staff salaries
paid by the respective departments.
All casual staff wages will be paid by cash.
A SACCO shall have all its employees registered with the National Social
Security Fund (NSSF) as stipulated in the NSSF Act 1987.
SACCOs shall comply with the National Social Security Fund (NSSF) Act and
deduct NSSF, from each employees gross pay, in accordance with the Act. In
addition, SACCOS shall contribute towards each employees NSSF as stipulated
in the Act. Contributions shall be as follows:
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Employee
- 5% of the employees gross pay
Employer (The SACCO) -10% of the employees gross pay
Rate
NIL
10%
(GP-130,000)*20%)+10,500
(GP-410,000)*30%)+45,500
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XX
MANAGEMENT POLICY
In accordance with the Cooperative Societies Statute 1991, the members shall nominate for appointment
annually or after 3 years a Certified Public Accountant, or a firm of qualified auditors whose duty shall be to
perform an audit of the financial statements of a SACCO and to give an opinion in accordance with
International Standards on Auditing as adopted in Uganda.
14.2
14.3
14.4
14.5
Every partner (of the Audit firm) must be a registered member of the Institute of Certified
Public Accountants of Uganda.
The partner(s) with their staff must not have any financial, personal or other relations with
SACCO that may impair their independence.
A valid professional indemnity insurance cover for negligence in the performance of its
duties.
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14.7
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___________________ Date___________
Secretary
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TheGeneralLedger
A/C Code
A/C Title
01-10000
ASSETS
01-1-1000
N/A
10-1-1001
10-1-1005
Cash at Hand
Cash at Bank 1
Cash at Bank 2
Cash at Bank 3
Cash at Bank 4
A
A
A
A
A
10-1-2000
Loans Outstanding
N/A
10-1-2001
10-1-2005
Loans to Females
Loans to Males
Loans to Groups
Loans to Institutions
Loans to Others
A
A
A
A
A
10-1-3000
Advances
N/A
10-1-3001
Employee advances
10-1-4000
Investments
N/A
10-1-4001
10-1-4002
A
A
10-1-5000
Prepayments
N/A
10-1-5001
Prepaid Rent
Prepaid Utilities
Other Prepayments
A
A
A
10-1-1002
10-1-1003
10-1-1004
10-1-2002
10-1-2003
10-1-2004
10-1-5002
10-1-5003
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10-1-6000
Receivables
N/A
10-1-6001
10-1-6003
A
A
A
10-1-7000
N/A
10-1-7001
10-1-7002
A
A
10-1-8000
Stock
N/A
10-1-8001
10-1-8003
Stock of T-Shirts
Stock of Stationery
Stock of Other Assets
A
A
A
10-1-9100
Tangible Assets
N/A
10-1-9101
Motor Vehicles/Cycles
Equipment
Furniture & Fittings
Computers & Accessories
Land and Buildings
A
A
A
A
A
10-1-9202
Intangible Assets
Software
Goodwill
N/A
A
A
10-2-0000
LIABILITIES
10-2-1000
N/A
10-2-1001
10-2-1005
A
A
A
A
A
10-2-2000
N/A
10-2-2001
A
A
10-1-6002
10-1-8002
10-1-9102
10-1-9103
10-1-9104
10-1-9105
10-1-9200
10-1-9201
10-2-1002
10-2-1003
10-2-1004
10-2-2003
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10-2-3000
N/A
10-2-3001
A
A
A
A
A
A
A
A
A
10-2-4000
10-2-4001
10-2-4002
10-2-4003
Other Liabilities
N/A
A
A
A
10-2-5000
10-2-5001
10-2-5002
10-2-5003
10-2-5004
Non-Current Liabilities
N/A
10-3-0000
10-3-1000
Member shares
N/A
10-3-1001
10-3-1003
Shares Class 1
Shares Class 2
Shares Class 3
A
A
A
10-3-2000
Statutory Reserves
N/A
10-3-2001
10-3-2002
Reserve Fund
Share Transfer Fund
A
A
10-3-3000
Retained earnings
N/A
10-3-3001
Retained Profit
Current Year Profits
A
A
10-2-3002
10-2-3003
10-2-3004
10-2-3005
10-2-3006
10-2-3007
10-2-3008
10-2-3009
10-3-1002
10-3-3002
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10-3-4000
N/A
10-3-4001
10-3-4004
Donor 1
Donor 2
Donor 3
Other Donors
A
A
A
A
10-4-0000
INCOME
10-4-1000
Loans Income
N/A
10-4-1001
10-4-1003
A
A
A
A
Donor 3
Donor 4
N/A
10-4-2005
Membership fees
Entrance fees
Sale of stationery
Saving Ledger fees
Account closure fees
A
A
A
A
A
10-4-3000
Grant Income
N/A
10-4-3001
10-4-3002
A
A
10-4-4000
Investments Income
N/A
10-4-4001
10-4-4002
A
A
10-4-5000
Other income
N/A
10-4-5001
A
A
A
A
A
10-3-4002
10-3-4003
10-4-1002
10-4-1003
10-4-2001
10-4-2002
10-4-2003
10-4-2004
10-4-5002
10-4-5003
10-4-5004
10-4-5005
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EXPENDITURE
Financing Costs
N/A
N/A
10-5-1004
A
A
A
A
10-5-2000
N/A
10-5-2001
10-5-2003
10-5-2004
10-5-2005
A
A
A
A
A
10-5-3000
10-5-3001
10-5-3002
10-5-3003
10-5-3004
10-5-3005
10-5-3006
Staff Costs
N/A
Gross salaries
Staff welfare and incentives
NSSF 10%
Gratuity
Staff trainings, workshops and capacity building
Other Personnel Expenses
A
A
A
A
A
A
10-5-4000
Administration expenses
Stationery expenses
Rent of office premises
Office expenses
Telephone
Internet and e-mail
Professional fees
Transport and travels
Advertisement, announcements and publicity
Power/fuel costs
Accommodation allowances
Duty allowances
Community mobilisation
Audit costs & legal fees
Depreciation
N/A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
10-5-0000
10-5-1000
10-5-1001
10-5-1002
10-5-1003
10-5-2002
10-5-4001
10-5-4002
10-5-4003
10-5-4004
10-5-4005
10-5-4006
10-5-4007
10-5-4008
10-5-4009
10-5-4100
10-5-4101
10-5-4102
10-5-4103
10-5-4104
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10-5-4106
10-5-4022
A
A
A
A
A
A
A
10-5-5000
Governance expenses
N/A
10-5-5001
10-5-5004
A
A
A
A
10-5-6000
Statutory Expenses
N/A
10-5-6001
A
A
A
A
10-5-4107
10-5-4108
10-5-4109
10-5-4020
10-5-4021
10-5-5002
10-5-5003
10-5-6002
10-5-6003
10-5-6004
Keytosymbolsused
AreferstoActive
N/AreferstoNon Active
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TheSavingsLedger
A/CNumberformat
ClassificationofAccounts
Comments
2X1XXXX
SavingsbyFemales
CorrespondstoGLControlAccount1021001
ShallcontainallfemalesaversSavingsaccounts
2X2XXXX
SavingsbyMales
2X3XXXX
2X4XXXX
2X5XXXX
SavingsbyGroups
SavingsbyInstitutions
SavingsbyOthers
CorrespondstoGLControlAccount1021002
ShallcontainallfemalesaversSavingsaccounts
CorrespondstoGLControlAccount1021003
ShallcontainallfemalesaversSavingsaccounts
CorrespondstoGLControlAccount1021004
ShallcontainallfemalesaversSavingsaccounts
CorrespondstoGLControlAccount1021005
ShallcontainallfemalesaversSavingsaccounts
TheLoansLedger
A/CNumberformat
3X1XXXX
3X2XXXX
3X3XXXX
ClassificationofAccounts
LoanstoFemales
LoanstoMales
LoanstoGroups
LoanstoInstitutions
3X4XXXX
3X5XXXX
LoanstoOthers
Comments
CorrespondstoGLControlAccount1012001
Appliestoall FemaleborrowersLoanAccounts
irrespectiveoftheLoanProduct
CorrespondstoGLControlAccount1012002
Appliestoall MaleborrowersLoanAccounts
irrespectiveoftheLoanProduct
CorrespondstoGLControlAccount1012003
Appliestoall GroupborrowersLoanAccounts
irrespectiveoftheLoanProduct
CorrespondstoGLControlAccount1012004
Appliestoall Institutional borrowersLoan
AccountsirrespectiveoftheLoanProduct
CorrespondstoGLControlAccount1012005
Appliestoall Other borrowersLoanAccounts
irrespectiveoftheLoanProduct
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TitleofAccount
AccountNo.
CumulativeNo.of
Accounts
Remarks
ThisRegistershouldbeaCounterBookwithprenumberedpages
SACCONAMECOOPERATIVE&CREDITSOCIETYLTD
RESERVECASHREGISTER
Date
ShillingNotes
ShillingCoins
50,000 20,000 10,000 5,000 1,000 500 200 100 50 20 10 5 2 1 Total Initials
ThisRegistershouldbeaCounterBookwithPrenumberedpages.
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BK3:
Date
CashierII
Shs
Total
Shs
50,000
20,000
10,000
5,000
1,000
Coins
500
200
100
50
20
10
Spoilt
Chequesetc
Excess/
shortages
Reserve
BalanceB/F
Cashin
Cashout
Balance
Total
CashiersSignature:
.
Checkedby:
..
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Title ofA/C
A/CNo
Amount
Deposited
Period
Expiry
Date
Interest
Rate
Totalat
Maturity
Theregistershouldbeacounterbookwithprenumberedpages
ChequeNo
Amount
AC/No.Deposited
on
Titleof
A/c
Remarks
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Particulars
Number
CostperUnit
TotalValue
Remarks
Nameofcustomer
Account
No
Ledger
No
Initialof
Manager
103of158
104of158
Dateof
voucher
Bundle
Ledger
Reason
for
Removal
Authorization
Official
Name&
Date
Signature Returned
ofOfficial
Signature
of
returning
Official
Signature
of
receiving
Official
Membership No:
Address: .
Dateof
Natureof
Noof
Valueofshares
Transaction
Transaction
Shares
purchased(Shs)
Valueofshares
sold(Shs)
Othercapital
transactions
Balanc
e(Shs)
Theregistershouldbeacounterbookwithprenumberedpages
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Cheque
No
Drawee
A/c
Number
Amount
Remarks
Theregistershouldbeacounterbookwithprenumberedpages
Name
OwnersAccount
No
Passbook
No
Owners
Signature
Initialof
Manager
106of158
SACCONAMECOOPERATIVE&CREDITSOCIETYLTD
SHARECAPITALREGISTER
Date
Opening
Balance
(Ugshs)
Transactionsfortheday
No.of
Shares
Valueofshares
purchased
(Ugshs)
Valueof
sharessold
(Ugshs)
Closing
Balance
(Ugshs)
Othershare
capital
transactions
ThisRegistershouldbeaCounterBookwithPrenumberedpages
SACCONAMECOOPERATIVE&CREDITSOCIETYLTD
UNPAIDCHEQUEREGISTER
Dateof
receipt
Depositors Cheque
Name
No.
Amount Bankon
whomChq
isdrawn
Remarks
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ThisRegistershouldbeaCounterBookwithPrenumberedpages.
BK14:FIXEDASSETSREGISTER
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
FixedAssetsRegister
Asset
description
Manufacturers
SerialNo.
Dateof
Purchase
Value(shs)
Unique
Identification Location
No.
(egoffice)
User
Remarks
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ResidentialAddress
Sex::
LocationofBusiness
DateofBirth:
Occupations:
Nameandaddressofemployer:(ifany).
IfApplicationisacceptable,IagreetopayanentrancefeesofShs.and
ShareCapitalofShs.For.shares.
Iagreetoabidebythebyelawsandanyotherrulesandregulationsofthesociety.
Incaseofdeath,Inominatetotakeovermysharesinthe
society.
SignatureofApplicant:.
FOROFFICIALUSEONLY
Thisapplicationhasbeenapproved/rejectedbythecommitteeduringthesocietyCommittee/Boardmeetingsof
,minuteno..
Membershipnumberallocated
Signed.
Signed
MANAGERCHAIRPERSON
Date:Date:.
*Pleasegivereasonsforrejection
**Groupapplicantsshouldattachsupportingdocuments
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Subcounty
Age:..
POBox
Tel:
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Occupations:
Nameandaddressofemployer:(ifany).
IherebyagreetoconformtotherulesgoverningSAVINGSAccountatyoursociety
SignatureofApplicant:1..
2..
Our/myfirstsavingsdepositisShspaidby..
OtherBankersBranch
Introducedby:1...A/CSignature...
2A/C.Signature.
CheckedBy
Approvedby:.AccountNo:..
FM3:APPLICATIONFORMFORPURCHASINGADDITIONALSHARES
Name of SACCO
Iamapplyingtopurchasesharesinthesocietyasperthefollowingparticulars
Nameofapplicant:.
ID/No/GPTNo:...
MembershipNo:inthe society...
Residentialaddress(Village,Parish,Subcounty...
NumberofSharesAppliedfor...
TotalValueofsharesShs..
Theundersignedagreetoabidebythesocietysbylaws,whichgovernthesubscriptionofthe
societysshares.
Signed:..Date:
(GPTstandsforGraduatePoolTaxTicketNo)
NBYourCheque/Cashwillbeacknowledgedimmediatelyby theManageroftheSocietyandShare
Certificatewillbeissuedinduecourse.
SeeNotes:
PleaseReadthroughthefollowingNotes:
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DateReceived
.
AmountReceived:
CashreceiptNo:.Dated:.
ShareCertificateNo:
CashiersSiganature.
ManagersSiganature..
FM4:RESERVECASHLODGMENTFORM
Coins
50,000
20,000
10,000
5,000
1,000
500
200
Subtotal(notes)
100
50
Subtotal
(notes)
Grandtotal
Amountinwords:______________________________________________________________________
CashiersName:__________________________
Signature:_____________________________
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Authorizedby:__________________________
Manager
Signature:_____________________________
FM5:RESERVECASHREQUISITIONFORM
Subtotal(notes)
Notes
Coins
50,000
20,000
10,000
5,000
1,000
500
200
100
50
Subtotal
(notes)
Grandtotal
Amountinwords:____________________________________________________________________
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Signature:__________________________
Authorizedby:__________________________
Manager
Signature:__________________________
FM6:LOANAPPLICATIONFORM
ResidentialAddress
LocationofBusiness
SavingsAccountNo:
114of158
AmountofLoanAppliedforShs(Amountinwords)
.
PurposeforwhichtheLoanisrequired:.
Datewhentheloanisrequired:..
Fromwherewillyougetthemoneytorepaytheloan?
Securitiesoffered:1ApproximateValue(shs)..
2Approximate Value(shs)
3ApproximateValue(Shs)..
Valueofsharesinthesociety:..
BalanceonmySavingsAccountdepositintheSociety(Shs)
Guarantors:I/we,theundersignedagreetorepayfromourownsources,thetotalamountoftheloanowedbytheapplicant
tothesocietyiftheapplicantfailstorepaytheloanGrantedbythesocietybythetimeitisdue
Name:.MembershipNoSavingsA/csignature.
Name:.MembershipNoSavingsA/csignature.
Iundertaketofullyrepaytheloanappliedforwithinterestthereontheduedatesagreeduponwiththesociety.Ialso
authorizethesocietytodeductfrommysavingsAccount,ShareCapitalorsellmyassetspledgedasasecuritiesforthe
loanwithoutanyhindrancefrommeoranyoneelsetorecoveranyamountoftheloanthatIwillhavefailedtopay
Name:...SignatureofapplicantThumbprint
IagreewithandherebygivepermissiontomyspousetoborrowfromthesocietyShs..forthepurposesof
.andpledgethesecuritiesmentionedabove.
Name:..SignatureofapplicantThumbprint
VerifiedbyLC1(Name&SignatureandStamp).
FM7:
PAYMENTREQUISITIONFORM
Thisrequestisbeingmadeby:...
Onthisdateof.
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(Useseparatesheetifthisnotenough)
Signature:
ACCOUNTANT
Paymentcanbemade/Notmade/Paymentreferredtonextdate
NoteItem:...
Unexpendedbalance
Signature:
MANAGER
PaymentApproved/Disapproved:
FM8:PAYROLLFORM
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
PAYROLLFORM
a
Nameof
Employee
Basic
Pay
c=a+b
Allowances GrossPay
PAYE
NSSF
Other
deduction deduction deductions
g=c
(d+e+f)
NetPay
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Totals
Preparedby:
Checkedby:
Approvedby:...
Date:
Date:..
Date:
SalaryadvancerequestedforShillings.Amountinwords.
....)
Purposefrowhichtheadvanceissought
.
Toberecoveredfrommysalaryin.months(pleasenotethatallsalaryadvances
shallberecoveredinaperiodofnotmorethan4(Four)months.
Signature:.
Date:.
Recommendedby:
(Manager)
Date:..
Authorisedby:.
Date:..
Receivedby:
Date:..
SACCONAMECOOPERATIVE&CREDITSOCIETY
PURCHASESREQUISITONFORM
Date
No.
Itemsrequested
Quantity
117of158
____________________________________
___________________
_____
____________________________________
___________________
_____
____________________________________
___________________
_____
____________________________________
___________________
_____
____________________________________
___________________
_____
____________________________________
___________________
Requestedby_____________________________________
Sign________________
Designation_______________________________________
Authorizedby_____________________________________
Sign________________
Designation_______________________________________
Receivedby_______________________________________
Sign_______________
Date______________________________________
FM11:THIRDPARTYMANDATEFORM
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SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
A/CNo
Photographof
thethirdparty
THIRDPARTYMANDATEFORM
TO,
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
I/Werequestyouthat,untilyoureceivewrittendirectionfromme/ustothecontrary,treatandconsidermy
/our Mr./ Mrs/ Miss .. as fully empowered to draw and sign
Cheques/Vouchersonmy/ouraccount,whetherthesamebeincreditoroverdrawn,andtoendorseoraccept
Cheques,BillsandPromissoryNotesandotherdocumentsinmy/ourname,forallofwhichthisshallbea
fullandsufficientauthoritytoyou,andshallbebindinguponme/usandallotherpersonsclaimingfromor
underme/us.
..
SignatureofOwnerofAccount
SignatureofWitness
A/cNo
SignatureofThirdParty
Forinternaluse
CheckedbyCashier.
ApprovedbyManager.
119of158
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
FIXEDASSETSDEPRECIATIONFORM
FixedAssetClass:..DepreciationRate:
S/N
Nameof
theAsset
Dateof
Purchase
Costof
purchase
Depreciation
charge
Accumulated
depreciation
Written
down
Value
Remarks
FM13:BANKRECONCILIATION FORM
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
BANKRECONCILIATIONSTATEMENT
BankName:..Date:
Date
Particulars/Narration
Closingbalanceaspercashbook
Add:Alldirectcredits
Allunpresentedcheques
Shs000
xxx
xxx
TOTALADDITIONS
Less:Alldirectdebits
Allun creditedcheques
TOTALDEDUCTIONS
BalanceasperBankStatement
Shs000
XXX
XXX
XXX
(xxx)
(xxx)
(XXX)
XXX
120of158
No.
ItemName
Quantity
Countedby_____________________________________Sign________________
Witnessedby_____________________________________Sign________________
121of158
FM15:
(Useseparatesheetifthisnotenough)
Signature:
ACCOUNTANT
Paymentcanbemade/Notmade/Paymentreferredtonextdate
NoteItem:...
Unexpendedbalance
Signature:
MANAGER
PaymentApproved/Disapproved:
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DOC1:FIXEDDEPOSITCERTIFICATE
Icertifythaton/./20..placedtotal
amountingtoShs..(..)
onlywith.TheFixedDepositwill matureafter
..dateofplacementandinanycasenotlaterthan.././20theFixedDeposit
interestattherateof..%per.(per...)payableonsecurity.
DateSigned
.
Managers
Treasurer
Official
SACCO
stamp
123of158
DOC2:FIXEDDEPOSITSLIP
Notes
Cashiers
Stamp
Shs.
Shs.
Shs.
Shs.
Shs.
50,000
20,000
10,000
5,000
1,000
Coins
Shs.
500
Shs.
200
Shs.
100
Shs.
50
TotalCash
TotalCheque
Listedoverleaf
AmountofShillingsinwords:________________________________________________________________
Paidby:__________________________________
Sign:________________________
SavingsAccountNo:_______________________
Authorizedby:____________________________
Manager
124of158
DOC3:
A/CNo:_______________________________
Being:____________________________________________________________________________________
__________________________________________________________________________________________
UgShs
Amountinwords:___________________________________________________________________________
__________________________________________________________________________________________
ContraAccount:________________________________
Preparedby:___________________________________
Approvedby:_________________________
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Doc4:INTERNALDEBITVOUCHER
Approvedby:_________________________
126of158
ReceiptNo No.Shares
Chairman
Totalto
Date
Shs
TotaltoDate
No.ofTransfers
No.ofoldCertificates..
Receivedby..
AMOUNT GivenunderthecommonSeal/Stampof
...
thisdayof..20
Secretary
(20..)Shs.
NOTE:NoTransferoftheabovesharescannotberegisteredunlessifaccompaniedby
thiscertificate
127of158
DOC6:PAYMENTVOUCHER
Payment Voucher
Name/Addressofpayee_____________________________________
Vr.No:_______________________
_________________________________________________________
Date:_________________________
Doc/ReceiptNo:____________________FileNo:_______________
ChequeNo:___________________
BankA/CNo:_________________
Item
DescriptionofPayment
BudgetLine
Amount
Total
Amountinwords:__________________________________________________________________________
__________________________________________________________________________________________
Preparedby:____________________________________
Approvedby:________________________
Date:___________________________________________
Date:_______________________________
Receivedby:____________________________________
Paidby:_____________________________
Date:_______________________________________
Date:________________________________
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DOC7:
RECEIPT
RECEIPT
RECEIVEDwiththanksfrom
________________________________________
___________________________________________________________
Date
___________________________________________________________
No.
ThesumofShillings
_________________________________________________________________________
__________________________________________________________________________________________
Beingpaymentof___________________________________________________________________________
__________________________________________________________________________________________
Cash/chequeNo.____________________________
Shs
.
Withthanks
Balance_____________________________________
_________________________________________
For:SacconameCoopSavingsandCreditSocietyLtd
129of158
DOC8:WITHDRAWALSLIP
WITHDRAWAL SLIP
Date: ...//.
AccountNumber
AccountName:
Amountinwords:_________________________________________________
CustomerSignature
SignatureVer
AmountUSHS
IacknowledgeReceiptoftheaboveCash:
__________________________________
Supervisor:__________________________
Manager:_________________________
130of158
DOC9:SAVINGSDEPOSITSSLIP
Credit:
Date:
A/CNo:
Notes
Cashiers
Stamp&
Signature
Shs.
Shs.
Shs.
Shs.
Shs.
50,000
20,000
10,000
5,000
1,000
Coins
Shs.
500
Shs.
200
Shs.
100
Shs.
50
TotalCash
TotalCheque
Listedonreserve
AmountofShillingsinwords:________________________________________________________________
_________________________________________________________________________________________
Paidby:__________________________________
Sign:________________________
131of158
DOC10:LOANREPAYMENTSLIP
Credit:
Date:
A/CNo:
Notes
Cashiers
Stamp&
Signature
Shs.
Shs.
Shs.
Shs.
Shs.
50,000
20,000
10,000
5,000
1,000
Coins
Shs.
500
Shs.
200
Shs.
100
Shs.
50
TotalCash
TotalCheque
Listedonreserve
AmountofShillingsinwords:________________________________________________________________
_________________________________________________________________________________________
Paidby:__________________________________
Sign:________________________
132of158
Serial No.
Name:
Address: .
Membership No: .
Savings No:
Interest
Principal
Interest
Principal
Interest
133of158
DOC12:SAVINGSLEDGERCARD
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
SAVINGSLEDGERCARD
Name.SerialNo..
PassBookNo...
AccountHoldersSignature..
AccountHolders
Photograph
Verifiedby
(ManagersSignature)
Date
Descriptionofthe
transaction
Debits
Credits
Balance
AuthorizingPersons
Signature
134of158
DOC13:GENERALLEDGERCARD
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
GENERALLEDGERCARD
AccountName.SerialNo.
AccountNumber.
Verifiedby
(ManagersSignature)
Date
Descriptionofthe
transaction
Debits
Credits
Balance
AuthorizingPersons
Signature
135of158
DOC14:SPECIMENSIGNATURECARD
SACCONAMECOOPERATIVESAVINGS&CREDITSOCIETYLTD
SpecimenSignatureCard
AccountNo.
..
Current/Savings/FixedDepositAccount
Title/Nameoftheaccount______________________________________________________
(Surnamefirstfollowedbyothernames)
________________________________________________________________(fillinfull
namesofpartnersifany)
NameSignaturePositionAge
__________________________________
_____________________________
_______________________________________________________________
_______________________________________________________________
__________________________________________________ _____________
Date_________________________
Authenticatedby______________________________________________________
CashierManager
Date
_________________________________________________________
136of158
DOC15:DAYSHEET
SACCO NAME CO-OPERATIVE SAVINGS & CREDIT SOCIETY LTD.
DAYSHEET
Date:..
AccountCode
AccountNumber
Debit(Dr.)
Shs
Credit(CR)
Shs
Totals
Preparedby:.
Approvedby:............................................
Date:.
Date:
137of158
DOC16:
TILL SHEET
A/c
Dr.
S/No.
Name
A/c
Dr.
138of158
DOC17:
Noof
A/cs
Balance
B/F
Total
Debits
TotalCredit
Balanceper
control
Balanceper
extract
139of158
DOC18:WASTESUMMARYSHEET
Debit
G/L Account
Credit
Cash
Savings
ShareCapital
Profit/Loss
Creditors
Debtors
Loans
BankA/C
CapitalGrants
StockStationery
PayrollLiabilities
FixedAssets(G)
Fixed Assets(L)
AccumulatedDep.
InterestReceivable
140of158
Preparedby:____________________________Checkedby:____________________
DOC19:CONTROLSHEET
Checkfigure
Debit
Credit
Balance
Unit
Ref
141of158
142of158
Proof
Ref
DEBIT
Cash Saving
A/c
143of158
Employee
Manager
Supervisor
AccountsOfficial
HeadofCredit
CreditOfficial
LoansOfficial
Cashier
AdministrativeOfficial.
Officemessenger
Securityguard
Basicpay
600,000
400,000
350,000
320,000
305,000
280,000
250,000
200,000
120,000
50,000
Eachoftheaboveemployees,exceptthemanager,isentitledtolunchallowanceof50,000/=.
Apartfromthesecurityguard,therestofothertheemployeesarealsoentitledtotransportallowance
of50,000/=.
TheSupervisorhappenstohavetakenasalaryadvanceof100,000/=duringthemonth.
TheManagerisentitledtohousingallowanceof100,000/=,lunchallowanceof60,000/=and
transportallowanceof50,000/=.
TheManagergotaloanfromtheSACCO.Inrepaymentofthisloan,theSACCOdeducts150,000/=
fromhissalaryon amonthlybasis.
Allallowancesarepaidorclaimedonamonthlybasis.
Payrollfortheabovesituationcanbepreparedasshownbelow
PayAsYouEarn(PAYE)Computation
ThefollowingworkingsshowhowPayAsYouEarn(PAYE)iscomputedforpeoplein fourdifferent
incomebracketsasdisplayedbytheformulasbelow.Asampleoffouremployeeshasbeenpickedfrom
theexampleaboveandtheirPAYEamountshavebeencomputedtomatchwhatisshowninthe
example.
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Thestandardtableofformulasused forPAYEinUGANDAisasshownbelow
Incomebracket
Incomebelow130,000/=
Above130,000/=andbelow235,000/=
Above235,000/=andbelow410,000/=
Incomeabove410,000/=
Where
TaxRatecharged
0%
10%X(a 130,000/=)
20%X(b 235,000/=)+10,500/=
30%X(c 410,000/=)+45,500/=
a=anyincomeabove130,000/=butbelow235,000/=
b=anyincomeabove235,000/=butbelow410,000/=
c=anyincomeabove410,000/=
Applyingtheexplanationintheabovetable,thePAYEcomputationscanbemadefortheSecurity
Guard,Officemessenger,CashierandtheSupervisorasshownbelow
o PAYEfortheSecurityGuardwithaGrossPayof100,000/=.Thisincomeisbelow130,000/=.
Theformulaisappliedasbelow
100,000X0%=0
o PAYEfortheOfficeManagerwithaGrossPayof220,000/=.Thisincomeisabove130,000/=
butbelow235,000/=.Theformulaisappliedasbelow
(220,000130,000)X10%=9000
o PAYEfortheCashierwithgrosspayof350,000/=.Thisincomeisabove235,000/=butbelow
410,000/=.Theformulaisappliedasbelow
(350,000 235,000)X20%+10,500=33,500
o PAYEfortheSupervisorwithgrosspayof500,000/=.Thisincomeisabove410,000/=.The
formulaisappliedasbelow
(500,000 410,000)X30%+45,500=72,500
TheabovefoursampledpeoplewhosePAYEcomputationhasbeenillustratedhavealsobeenrecorded
inthePAYROLLcomputationtable.Inthistable,thevaluesofPAYEreportedtallywithwhathasbeen
calculatedintheillustration.
145of158
NSSF computation
Referring to the payroll computation above, a sample of four employees has been taken to
illustrate how the NSSF value is computed.
o NSSF for the Security Guard with a Gross Pay of 100,000/=
(100,000 X 5%) + (100,000 X 10%) = 15,000
o NSSF for the Office Manager with a Gross Pay of 220,000/=
(220,000 X 10%) + (220,000 X 10%) = 33,000
o NSSF for the Cashier with gross pay of 350,000/=
(350,000 X 5%) + (350,000 X 10%) = 52,500
o NSSF for the Supervisor with gross pay of 500,000/=
(500,000 X 5%) + (500,000 X 10%) = 75,000
In the above illustrations, the 10% relates to the SACCO contribution towards the savings of the
staff members and 5% relates to the contribution of the staff towards their own savings in
National Social Security Fund. The above illustration helps to explain why the NSSF value
reported in the Day Sheet is higher than that reported in the Payroll sheet above. The Payroll sheet
includes only 5% of the contribution and the Day Sheet includes both the 5% and 10% making
total contribution equaling to 15%.
146of158
Basic
pay
Manager
600,000
Supervisor
Accounts
Official
400,000
Otherdeductions
Housing
Lunch
Transport
allowance Allowance Allowance
PAYE
NSSF
60,000
50,000
810,000 165,500
40,500
50,000
50,000
500,000
72,500
350,000
50,000
50,000
450,000
HeadofCredit
320,000
50,000
50,000
CreditOfficial
305,000
50,000
LoansOfficial
280,000
Cashier
Administrative
Official.
250,000
Office
messenger
Securityguard
TOTALS
100,000
Gross
Pay
Loan
Salary
payment advance
454,000
25,000
100,000
302,500
57,500
22,500
370,000
420,000
48,500
21,000
350,500
50,000
405,000
44,500
20,250
340,250
50,000
50,000
380,000
39,500
19,000
321,500
50,000
50,000
350,000
33,500
17,500
299,000
200,000
50,000
50,000
300,000
23,500
15,000
261,500
120,000
50,000
50,000
220,000
9,000
11,000
200,000
100,000
5,000
95,000
50,000
50,000
2,875,000
100,000
510,000
150,000
NetPay
147of158
TheJournalVoucherthatsummarizesthePayrolltransactions
SACCONAMECREDIT&COOPERATIVESOCIETYLTD
Journalvoucher
AccountCode
AccountName
GrossPay*
Allowances(accordingly)**
NSSFContribution(10%)
Statutorydeductions
PAYE
NSSF***
Advances
LoanPayments
EmployeeSavings'A/c:
Manager
Supervisor
AccountsOfficial
HeadofCredit
CreditOfficial
LoansOfficial
Cashier
AdministrativeOfficial.
Dr.
3,935,000
393,500
494,000
590,250
100,000
150,000
454,000
302,500
370,000
350,500
340,250
321,500
299,000
261,500
200,000
95,000
Officemessenger
Securityguard
TOTALS
Cr.
4,328,500
4,328,500
Note:
*TheGrossPaytobereportedhereincludesallfixed/absoluteallowances.Theseallowancesare
obviousinthedaytodayoperationsoftheSACCOs.
**AllowancesentryintheJVabove,willbefilledupwiththeallowancesthataregivenonceina
while.Theallowancesarenotabsolute.
***TheNSSFdeductionreportedhereincludesthe10%thatiscontributedbytheSACCOs.Thatis
whyitismorethanthatreportedinthePayrollscheduleabove.
148of158
2. ExampleonIncomeTaxComputation
TheseTax ComputationsaremerelyillustrativeandhavebeenbasedontheFinancialStatementslaidoutin
Appendix5
i)
Initialallowancecomputation
Details
Note
TotalFixedAssetAdditions
Less:Amountsthatdon'tqualifyforinitialallowance (S.28ITA)
OfficeEquipment (S.28(3) ITA)
Computers&Accessories(S.28(3) ITA)
Furniture&Fittings (S.28(3) ITA)
Totaldeduction
QualifyingExpenditureforinitialallowance(S.28(1) ITA)
134
200
WearandTearComputationforasampleexampleonSACCOswithinlistedareas(S.27 ITA)
Particulars
Wear&TearRates
WrittenDownValue(WDV)b/f
Additions
Disposals
BalancebeforechargingInitialallowance
Initialallowancecharge(50%) (Notei)
QualifyingExpenditureforWear&Tear
Wear&TearChargedat respectiveratesperclass
WDVc/fattheendoftheperiod
iii)
4,695
(4,229)
(199)
(4,428)
267
Initialallowanceonthequalifyingexpenditure
50%forSACCOswithinKampala,Entebbe,Njeru,Namanve (S.28(1)(b) ITA)
75%forSACCOsoutsideKampala,Entebbe,Njeru,Namanve(S.28(1)(a) ITA)
ii)
Amount
Shs'000
ClassI
ClassII
(40%)
(35%)
Shs'000 Shs'000
4,229
4,229
4,229
(1,692)
2,537
ClassIII
(30%)
Shs'000
ClassIV TOTALS
(20%)
Shs'000 Shs'000
466
4,695
466
4,695
(134)
(134)
332
4,561
(66)
(1,758)
266
2,803
WearandtearComputationforasampleexampleonSACCOsoutsidelistedareas
149of158
ClassI
ClassII
(40%)
(35%)
Shs'000 Shs'000
4,229
4,229
4,229
ClassIII
(30%)
Shs'000
ClassIV TOTALS
(20%)
Shs'000 Shs'000
466
4,695
466
4,695
(200)
(200)
266
4,495
(1,692)
(53)
(1,745)
2,537
213
2,750
CalculationOfCorporationTaxLiability(forSACCOsoutsidetheListedAreas)
Details
Note
ProfitbeforeTax
AddbackDisallowableexpenses(S.22(2)ITA)
Depreciation
Donations&Gifts(S.22(1)ITA)
TotalDisallowables
Amount
Shs'000
30,390
9
24
12,036
130
12,166
42,556
Less:Allowabledeductions
Initialallowance(S.28(1)ITA)
Wear&Teardeduction(S.27(1)ITA)
(200)
(1,745)
Totalallowabledeductions
(1,945)
Taxableprofits
TaxCharge(30%X41624)
41,624
12,487
150of158
v)
CalculationOfCorporationTaxLiability(forSACCOsWithinTheListedAreas)
Details
Note
ProfitbeforeTax
AddbackDisallowableexpenses(S.22(2)ITA)
Depreciation
Donations&Gifts(S.22(1)ITA)
TotalDisallowables
Amount
Shs'000
30,390
9
24
12,036
130
12,166
42,556
Less:Allowabledeductions
Initialallowance(S.28(1)ITA)
Wear&Teardeduction(S.27(1)ITA)
Totalallowabledeductions
(134)
(1,745)
(1,878)
Taxableprofits
TaxCharge(30%X40,678)
40,678
12,203
151of158
APPENDIX 5
MODEL FINANCIAL STATEMENTS
Introductory Remarks
This set of Management accounts shall be prepared by the Accountant and approved by the Manager on regular basis and shall
be properly filed for future reference.
As a sign of readiness for an external Audit, this set of Accounts shall be presented to the Auditor for him/her to express an
independent opinion thereon.
SACCO Name
Balance Sheet as at Year end Date
Notes Current Year
20XX
Shs000
Prior Year
20XX
Shs000
ASSETS
Cash and bank balances
Loans Outstanding
Employee Advances
Short-term investments
Prepayments
Receivables
Amounts receivable from related party
Property and Equipment
Intangible Assets
Other assets
Total Assets
3
4
5
6
7
8
9
10
11
12
377,176
93,129
7,521
1,130,304
36,323
53,608
12,990
28,188
9,300
1,481
1,750,020
90,847
49,873
3,442
1,076,165
20,398
45,575
20,592
35,528
1,342,420
13
14
15
16
1,575,855
12,543
41,323
48,457
1,678,178
1,193,738
8,409
39,852
50,826
1,292,825
17
18
33,760
8,801
29,281
71,842
29,700
5,807
14,088
49,595
1,750,020
1,342,420
LIABILITIES
Savings and Short-term Time deposits
Interest and Dividends payable
Accounts payable and accruals
Other liabilities
Total Liabilities
EQUITY AND RESERVES
Member shares
Statutory legal reserves
Retained earnings
Total Equity and Reserves
TOTAL RESERVES AND LIABILITIES
_____________________
_____________________
152of158
Accountant
Notes accompanying these Financial Statements form an integral part of these financial statements
SACCO Name
In
co
om
me
e St
atte
em
me
en
ntt fo
e Pe
od
d En
de
ed
d /
/
/2
20
0X
XX
X
Inc
Sta
forr th
the
Perriio
End
/
Notes
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
19
20
21
22
149,852
47,356
71,691
90,000
358,899
112,550
28,204
63,805
86,500
291,059
23
24
25
26
27
28
78,001
141,691
50,264
56,959
18,642
141
345,698
50,197
145,305
42,304
46,793
11,251
295,850
13,201
17,189
30,390
(12,203)
18,187
(4,791)
8,344
3,553
3,553
INCOME
Loans Income
Savings and Membership-fees Income
Investments Income
Other income
Total income
EXPENDITURE
Interest expense and Other Financial Costs
Direct Loan Costs
Staff Costs
Administration expenses
Governance Expenses
Statutory Expenses
Total Expenditure
Operating Profit/Loss for the period
Grant Income
Net Profit Before Tax
Taxation (See Tax Computation)
Profit After Tax
29
15
SACCO Name
St
atte
em
me
en
ntt of
an
ng
ge
ess in
uiitty
y fo
e Pe
od
d En
de
ed
d /
/
/2
20
0X
XX
X
Sta
of Ch
Cha
in Eq
Equ
forr th
the
Perriio
End
/
Member
Shares
Shs000
As at
Net profit for the period
Additional share capital
29,700
4,060
Reserves
Shs000
5,807
-
Accumulated
Profits
Shs000
14,088
18,187
-
Total
Equity
Shs000
49,595
18,187
4,060
153of158
33,760
2,994
8,801
(2,994)
29,281
71,842
SACCO Name
CashFlowStatementforthePeriodEnded//20XX
Notes
Current Year
20XX
Shs 000
Prior Year
20XX
Shs 000
30,390
3,553
12,036
(17,189)
3,144
28,381
6,165
1,796
(8,344)
2,556
5,726
(50,479)
(15,925)
(8,033)
7,602
382,117
4,134
1,471
2,617
(3,299)
(10,601)
(25,047)
(20,592)
414,976
(1,291)
30,490
(4,083)
323,504
380,553
351,885
386,279
(54,139)
(4,696)
(10,781)
(543,843)
(22,968)
-
(69,616)
(566,811)
4,060
-
34,464
(15)
4,060
34,449
286,329
(146,083)
Operating Activities
Operating surplus for the period
Adjustments for:
Depreciation
Impairment of stock & other assets
Donor income
Loan loss provisions
Operating surplus before working capital changes
Increase in loans to Members
Increase in prepayments
Increase in other accounts receivable
Increase in accounts receivable from related party
Increase in member savings and other deposits
Decrease in interest payable
Increase in other payables
Increase in other liabilities
26
29
24
4
7
8
9
13
14
15
16
Investing Activities
Increase in Short term investments
Purchase of property and equipment
Purchase of Intangible assets and other assets.
6
10
11
17
154of158
3
3
90,847
377,176
236,930
90,847
SACCO Name
NotestotheFinancialStatementsthePeriodEnded//20XX
1.
ga
an
niissa
attiio
on
n an
d Ba
esse
en
ntta
attiio
on
n
1. Or
Org
and
Bassiiss of
of Pr
Pre
The accounting and reporting policies adopted by SACCO NAME SACCO are in accordance with Generally
Accepted Accounting Principles.
a)
kg
grro
ou
un
nd
d
a) Ba
Bacck
b)
urree of
neessss
b) Na
Nattu
of bu
bussiin
c)
nttaattiio
on
n an
d ba
naan
ncciiaall St
meen
nttss
c) Pr
Preesseen
and
bassiiss of
of Fi
Fin
Staatteem
2.
gn
niiffiic
ca
an
ntt Ac
co
ou
un
nttiin
ng
g Po
ciie
ess
2. Si
Sig
Acc
Polliic
The principal accounting policies adopted in the preparation of these Financial Statements are set out below:
a)
nss,, Ba
d an
d Do
ub
bttffu
ull De
bttss
a) Lo
Loaan
Bad
and
Dou
Deb
b)
nu
uee Re
og
gn
niittiio
on
n
b) Re
Revveen
Recco
c)
meen
nttss
c) In
Invveessttm
d)
d Pa
nssaaccttiio
on
nss
d) Re
Rellaatteed
Parrttyy Tr
Traan
e)
op
peerrttyy an
d Eq
uiip
pm
meen
ntt
e) Pr
Pro
and
Equ
The annual depreciation rates in use are:
Accordingly
Accordingly
f)
ng
giib
bllee As
f) In
Inttaan
Assseettss
g)
naattiio
on
nss,, Gr
nttss an
d In
Kiin
nd
d Co
nttrriib
bu
uttiio
on
nss
g) Do
Don
Graan
and
In--K
Con
h)
mp
paarraattiivveess
h) Co
Com
155of158
3.
h an
d Ba
nk
k ba
an
nc
ce
ess
3. Ca
Cassh
and
Ban
balla
Cash at hand
Cash at Bank 1
Cash at Bank 2
Total
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
138,378
213,413
25,385
377,176
86,653
2,992
1,202
90,847
4.
an
nssOutstanding
4. Lo
Loa
a)
an
n De
aiillss
a) Lo
Loa
Detta
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
GrossLoanstoFemales
GrossLoanstoMales
GrossLoanstoGroups
GrossLoanstoInstitutions
GrossLoanstoOthers
39,084
4,047
19,542
35,280
51,060
493
TotalGrossLoans
ProvisionforBadLoans
NetLoans
97,953
(4,824)
51,553
(1,680)
93,129
49,873
b)
co
on
nc
ciilliia
attiio
on
n of
ossss Lo
an
nss Ba
an
nc
ce
ess
b) Re
Rec
of Gr
Gro
Loa
Balla
Balanceb/f
Loansdisbursedout
Recoveriesduringtheperiod
Balance(GrossPortfolio)
Current Year
20XX
53,315
210,000
(165,362)
97,953
Prior Year
20XX
25,300
180,000
(151,985)
53,315
5. Em
pllo
oy
ye
ee
e Ad
va
an
nc
ce
ess
Emp
Adv
Employee1
Employee2
Employee3
Current Year
20XX
Shs000
5,000
2,000
300
Prior Year
20XX
Shs000
156of158
221
3,442
7,521
3,442
6.
orrtt--tte
errm
m In
ve
essttm
me
en
nttss
6. Sh
Sho
Inv
ShortTermInvestment1
ShortTermInvestment2
ShortTermInvestment3
ShortTermInvestment4
Total
Current Year
20XX
Shs000
250,200
50,000
350,000
480,104
1,130,304
Prior Year
20XX
Shs000
150,000
70,200
855,965
1,076,165
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
4,983
29,040
2,300
36,323
1,640
16,758
2,000
20,398
7.
ep
pa
ay
ym
me
en
nttss
7. Pr
Pre
PrepaidRent
PrepaidUtilities
OtherPrepayments
TotalPrepayments
8.
ce
eiiv
va
ab
blle
ess
8. Re
Rec
Current Year
20XX
InterestreceivableonLoans
InterestreceivableonFixedDeposits
OverdrawnSavingsAccounts
Total
9.
ou
un
nttss Re
ce
eiiv
va
ab
blle
e fr
om
m Re
atte
ed
d Pa
y
9. Am
Amo
Rec
fro
Rella
Parrtty
AdvancestoBoardMembers
OtherreceivablesfromBoardMembers
TotalAmountsReceivablefromRelatedParties
36,871
13,066
3,671
53,608
Current Year
20XX
Shs000
5,000
7,990
12,990
Prior Year
20XX
75
351
45,149
45,575
Prior Year
20XX
Shs000
4,000
16,592
20,592
157of158
10
op
pe
errtty
y,, Pl
an
ntt an
d Eq
uiip
pm
me
en
ntt
10.. Pr
Pro
Pla
and
Equ
Motor
Cycles&
Vehicle
Eqment
Fture &
Fittings
Shs000
Shs000
Computers
&
Accessories
Shs000
Land &
buildings
TOTAL
Shs000
Shs000
Cost
As at start of Period
Additions
As at End of Period
5,050
139
5,189
2,920
2,920
15,229
199
15,428
16,754
4,229
20,983
8,274
128
8,402
48,227
4,695
52,922
As at start of Period
Charge for the year
As at End of Period
1,728
1,728
730
584
1,314
4,873
3,833
8,706
4,311
5,051
9,362
2,784
840
3,624
12,698
12,036
24,734
As at start of Period
As at End of Period
5,050
3,461
2,190
1,606
10,357
6,722
12,443
11,621
5,489
4,778
35,528
28,188
11
an
ng
giib
blle
e As
ettss
11.. In
Intta
Assse
Intangible assets represent Shs 9.3 million that relates to purchase of an accounting software-Finance Solution,
expected to be used in SACCO operations. The accounting software is not yet put to use as intended by
SACCO management.
Software
Goodwill
Total
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
7,300
2,000
9,300
* Th
Thee Intangible asset has not been amortized during Current Year because it is not yet put to use
12
ve
en
ntto
orry
y
12.. In
Inv
StockofTShirts
StockofStationery
Totalotherassets
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
391
1,090
1,481
158of158
13
viin
ng
gss an
d Ot
he
err De
po
ossiittss
13.. Sa
Sav
and
Oth
Dep
MembersavingsOrdinary
MembersavingsRestricted
Members'ShorttermFixedDeposits
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
804,815
735,716
35,324
1,575,855
634,172
520,053
39,513
1,193,738
TotalSavingsandTimeDeposits
14
erre
esstt an
d Di
viid
de
en
nd
dss Pa
ya
ab
blle
e
14.. In
Intte
and
Div
Pay
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
InterestpayableonSavingsbyFemales
InterestpayableonSavingsbyMales
DividendspayabletoMembers
10,530
1,013
1,000
8,409
TotalInterest÷ndsPayable
12,543
8,409
15
he
err Ac
co
ou
un
nttss Pa
ya
ab
blle
e an
d Ac
crru
ua
allss
15.. Ot
Oth
Acc
Pay
and
Acc
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
InterestpayableonBorrowedfunds
WithholdingTaxpayable
IncomeTaxLiability
ProfessionalfeesPayable
SuppliersPayable
NSSFpayable
PAYEpayable
AffiliationfeesPayable
Salaries/Wages
13,859
5,818
12,203
1,290
5,932
817
700
664
40
30,307
4,092
1,784
1,973
1,696
Totalotheraccountspayable&accruals
41,323
39,852
159of158
16
he
err Li
ab
biilliittiie
ess
16.. Ot
Oth
Lia
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
Taxation
LoanProtectionFund
UnearnedRevenue
DeferredGrantIncome
AccumulatedDepreciation
12,203
8,524
2,607
24,116
1,007
5,327
3,131
40,485
1,883
Totalotherliabilities
48,457
50,826
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
SharesClass1
SharesClass2
SharesClass3
29,700
2,060
2,000
26,500
1,000
2,200
TotalMembershares
33,760
29,700
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
ReserveFund
ShareTransferFund
6,801
2,000
3,792
2,015
Totalstatutoryreserve
8,801
5,807
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
82,298
87,429
17
mb
be
errss Sh
arre
ess
17.. Me
Mem
Sha
18
attu
utto
orry
y Re
errv
ve
ess
18.. St
Sta
Resse
19
erre
esstt on
an
nss In
co
om
me
e
19.. In
Intte
on Lo
Loa
Inc
InterestincomeonLoanstoFemale
160of158
25,343
35,039
7,172
16,389
883
7,849
TotalInterestIncome
149,852
112,550
20
20.. SavingsandMembershipfeesIncome
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
Membershipfees
Entrancefees
Saleofstationery
SavingLedgerfees
Accountclosurefees
27,594
10,910
4,863
2,660
1,329
18,769
3,603
2,896
2,000
936
Total
47,356
28,204
Current Year
20XX
Shs000
36,322
30,022
5,347
Prior Year
20XX
Shs000
63,805
71,691
63,805
Current Year
20XX
Shs000
50,000
5,000
30,000
4,000
1,000
Prior Year
20XX
Shs000
40,000
42,000
4,500
90,000
86,500
21
ve
essttm
me
en
ntt In
co
om
me
e
21.. In
Inv
Inc
InterestonInvestments1
InterestonInvestments2
InterestonInvestments3
Total
22
he
err In
co
om
me
ess
22.. Ot
Oth
Inc
InterestfromLinkBankA/C
ProfitonSaleofFixedAssets
ForeignExchangegain
Recoveryofloanspreviouslywrittenoff
Miscellaneousincome
Total MiscellaneousIncome
23
na
an
nc
ciia
all Co
23.. Fi
Fin
Cossttss
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
161of158
59,206
14,638
4,157
38,275
9,366
2,556
Total In
erre
esstt Ex
pe
en
nsse
e
Intte
Exp
78,001
50,197
24
ec
ctt Lo
an
n Co
24.. Di
Dirre
Loa
Cossttss
BaddebtsExpense
Loanappraisalcosts
Loanmonitoringandrecoverycosts
LegalFeesonLoans
OtherDirectLoanCosts
TotalDirectLoanCosts
Current Year
20XX
3,144
31,549
60,000
32,000
14,998
Prior Year
20XX
2,556
45,000
60,000
25,000
12,749
141,691
145,305
25
affff Co
25.. St
Sta
Cossttss
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
Grosssalaries
Staffwelfareandincentives
NSSF 10%
Gratuity
Stafftrainings,workshopsandcapacitybuilding
OtherPersonnelExpenses
30,965
5,884
3,092
2,000
8,216
107
26,425
6,727
2,613
6,184
355
TotalStaffCosts
50,264
42,304
26
miin
niissttrra
attiio
on
n Ex
pe
en
nsse
ess
26.. Ad
Adm
Exp
Stationeryexpenses
Rentofofficepremises
Officeexpenses
Telephone
Internetandemail
Professionalfees
Transportandtravels
Advertisement,announcementsandpublicity
Power/fuelcosts
Accommodationallowances
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
8,481
3,000
3,568
3,339
1,235
2,350
7,378
935
205
2,038
5,564
2,850
1,956
2,559
6,141
3,294
106
162of158
26
26..
4,212
101
1,220
12,036
3,790
2,996
6,165
5,212
Ad
miin
niissttrra
attiio
on
n Ex
pe
en
nsse
ess (Co
nttiin
nu
ueed
d))
Adm
Exp
Con
EquipmentRepairs&Replacement
Securityexpenses
Computerexpenses
Donationsandgifts
Bankcharges
Affiliationfeesexpense
Miscellaneousadministrativeexpenses
TotalAdministrationCosts
1,543
3,353
130
1,498
225
112
1,018
1,252
1,540
1,700
125
525
56,959
46,793
27
ve
errn
na
an
nc
ce
e ex
pe
en
nsse
ess
27.. Go
Gov
exp
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
Generalmeetingexpenses
Registrationfees
B.O.Dandcommitteeexpenses
OtherGovernanceexpenses
1,658
1,007
270
15,707
1,600
860
8,791
TotalGovernanceExpenses
18,642
11,251
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
20
15
13
93
141
28
attu
utto
orry
y Ex
pe
en
nsse
ess
28.. St
Sta
Exp
CooperativedevelopmentfundContribution
Memberstraining
RemittancestoSecondarySocietyEducationfund
OtherstatutoryExpenses
TotalStatutoryExpenses
163of158
29
an
ntt In
co
om
me
e
29.. Gr
Gra
Inc
GrantIncomeforLoanCapital
GrantIncomeforOperations
TotalGrantincome
Current Year
20XX
Shs000
Prior Year
20XX
Shs000
14,298
2,891
8,344
17,189
8,344
oooOOOOooo
164of158