The Institute of Chartered Accountants
of Sri Lanka

Accounting & Management Systems & Procedures for Tsunami Relief Projects

A Toolkit Issued by the ICASL

Copyright © 2005 Institute of Chartered Accountants of Sri Lanka.
All rights reserved. No part of this publication may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without permission in writing from The Institute of Chartered Accountants of Sri Lanka.

President’s Message

Rebuilding with Accountability, Transparency and Good governance

Rebuilding with Accountability, Transparency and Good governance
The massive earthquake, that occurred at the bottom of the Indian Ocean to the west of Sumatra on that fateful morning of Sunday 26th December 2004 and the giant Tsunami, it triggered off, were without parallel in the scale of destruction they caused. In Sri Lanka alone, about 40,000 lives were snuffed out. In addition, countless homes and livelihoods, some of which had taken a lifetime to build, were destroyed.

In this hour of need, we appealed to the Members to rally round our beloved country and help to rebuild it. As Chartered Accountants, we have the capacity to make a contribution with a difference. Our skills, experience and resources in this moment of great sorrow can contribute to rebuilding with accountability. This is the unique moment for every Member to show his or her public spiritedness and sense of goodwill towards his fellow citizens.

With these aims in view, the Institute set up a Task Force, and it has drawn up a blueprint for action. The first proposal of the Task Force was to prepare a publication "Accounting & Management Systems and Procedures for Tsunami Relief Projects" - "Toolkit".

The Tsunami Relief Projects have the common objective of addressing the trauma Tsunami victims have gone through and supporting them to move beyond these experiences and live meaningful lives. The objective is noble. However, for these aspirations to be met, there must be transparency, accountability and good governance practices in relation to the resources received. This is precisely the aspect the above publication attempts to serve.

The Council has decided to provide the Toolkit free of charge. I wish to thank and acknowledge the contribution of the Task Force, Technical Committee and contributions of the Consultants for this publication.

Indrajith Fernando

Overview of the Toolkit

The Toolkit deals with the important aspects of Tsunami relief projects under the
following main headings.

Pre-implementation
• Needs Assessment
• Identification & Registration of Beneficiaries
• Preparation of Budgets

Project Management and Implementation
• The Project Management
• Budgetary Controls
• Selection of skilled and unskilled labourers
• Selection of Consultants for Specialized Services
• Selection of Suppliers of Materials, Equipment & Construction Work
• Documentation of Programmes
• Project Completion

Accounting Procedures & Controls, Financial Reporting and Auditing
• Types of Internal Controls
• General Controls over Funds Received in the form of Cash
• Specific Controls over various types of Cash Receipts
• Safeguarding Funds received
• Controls over Banking
• Controls over Receipt and Distribution of Non Cash Donations
• Payment procedure of Programme, Capital and Administration Expenditure
• General Controls over Cheque and Cash Payments
• Cheque payments – Specific Controls
• Cash payments – Specific Controls
• Book Keeping
• Controls over Expenditure Records
• Controls over Fixed Assets
• Purchasing and Store Keeping Procedure for Materials
• Financial Reporting & Auditing