NNPCL Finance and Accounts Imprest Policy PDF

NNPC Limited Finance and Accounts Process and Procedures 4.0 Imprest Management 4.1 Objective This policy document provides a guideline for the management of NNPC Limited and its Subsidiaries’ imprest funds. The processes under this policy are designed to ensure:  Imprest funds are managed in lin...

NNPC Limited Finance and Accounts Process and Procedures 4.0 Imprest Management 4.1 Objective This policy document provides a guideline for the management of NNPC Limited and its Subsidiaries’ imprest funds. The processes under this policy are designed to ensure:  Imprest funds are managed in line with the purpose for which it was collected.  Clear guidelines for the operation of the p-cards. 4.2 Scope and Applicability The policy covers the following sub-sessions and shall be applicable to NNPC Limited and its subsidiaries:  Imprest fund requisition  Imprest fund reconciliation and replenishment 4.3 Policy Statements  The Chief Financial Officer (CFO) shall approve imprest funds for NNPC Limited; while the Managing Directors shall approve imprest funds for each Subsidiary, based on justifiable business needs.  Imprest funds shall be administered via Procurement Card (PCard) and shall NOT be utilised for the following purpose:  Loans to staff  Personal commitments  Travel allowances  Reimbursement of travel expenses  Procurement of asset items  Expenditures for non-office operations related items 35 NNPC Limited Finance and Accounts Process and Procedures  Any other expenditure which is not necessary, reasonable and for which a clear business/operational purpose does not exist.  Imprest funds reconciliation and expense retirements shall be carried on a monthly basis.  All imprest funds in NNPC Limited and its subsidiaries shall be subject to periodic audit by the GRC function. 4.4 Procedural Guidelines of Imprest Management 4.1 Imprest Requisition – Payment Cards Operation  The imprest shall be applicable for unplanned business expenditure that requires immediate purchase. It shall also be used for transactions that may not be feasible to process through subsisting procurement arrangements.  Imprest funds will also be approved in limited situations when maintaining a cash-on-hand balance is clearly the most effective payment option.  Imprest accounts shall be operated using assigned operational debit cards known as Payment Cards (P-cards).  Naira P-cards shall be assigned to all need departments. Only specific departments/divisions that require a dollarized P-cards such as SCM, Human Resources Department shall be assigned a dollarized P-card.  Example of payments to be made using a dollarized P-card include payments for:   Subscriptions such as LinkedIn, system licenses etc.  Online foreign training courses for eligible staff  Foreign services for which only card payments are accepted Custody of the debit card shall reside with a designated secretary/admin staff within the department/division. The card shall 36 NNPC Limited Finance and Accounts Process and Procedures not be released for any transaction to members of staff unless due approval has been obtained. The custodian of the card shall ensure that no cash is withdrawn unless an approved need arises.  The Imprest Custodian shall always safeguard and account for the funds during its operation. In instances where the fund's custodian will be away, The HOD shall appoint a deputising custodian for the imprest fund management duties.  Before handing over to the deputising custodian, the Imprest Custodian shall conduct a proper reconciliation of the imprest fund being handed over.  The Custodian shall maintain a detailed record of all users of the Pcard and the purpose for which the card was used.  Imprest funds shall not be utilised for the following:  Loans to staff  Personal commitments  Travel allowances  Reimbursement of travel expenses  Procurement of asset items  Expenditures for non-office operations related items  Any other expenditure which is not necessary, reasonable and for which a clear business/operational purpose does not exist.  Imprest requisition shall be made by the custodian of the imprest fund and approved by the Head of the need Department. Approved requests shall be processed by the Accounts Payable unit and Treasury within 48 hours of receiving approving request.  The P-card shall be funded by the Treasury Department at the beginning of each month to a maximum of N300,000. This shall be adjusted subsequently based on changing business needs. 37 NNPC Limited Finance and Accounts Process and Procedures  A justification for the review of the limit shall be provided by the requesting department and approved by the Head of Finance.  Approval to spend funds from the P-card shall be by the Head of Department. In the absence of the Head of Division/Department, his designate shall authorise any spending from the card. All approvals shall be made via an email. There shall be zero tolerance for any custodian who disburses funds without due approvals.  Transactions paid for with the P-card shall be supported by a receipt unless it is impracticable to obtain a receipt for the payment. 4.2 Imprest Reconciliation and Replenishment  Imprest reconciliation shall be done monthly, not later than the third working day of each succeeding month.  Original receipts or documentary evidence for cash expenditure shall be submitted by staff and shall adequately describe the nature of the goods or services purchased. Unreceipted petty cash expense shall be supported with adequate confirmation for the expenditure.  Original invoices shall be submitted by suppliers/vendors for goods/services provided. All receipts and invoices should be clearly marked “PAID”.  Duplicate copy of receipts and documents not showing an amount or method of payment (invoices, order confirmations) shall not be acceptable as receipts supporting expenditure incurred.  Reimbursement for properly approved expenses may be obtained directly from the imprest fund.  Replenishment request shall only be made when previous imprest funds have been properly accounted for by the respective Finance Department. 4.3 Imprest Fund Audit 38 NNPC Limited Finance and Accounts Process and Procedures  The GRC function shall carry out periodic imprest fund audit without notice to the Imprest Fund Custodian of any department within NNPC Limited and its subsidiaries.  On completion of each petty cash audit/count, a report shall be prepared by the GRC representative, and a copy shall be submitted to the following with recommendations (where required).  Respective HODs  Head of Finance  Head of Treasury  Supply Chain Management  Refer to the Internal Audit and Governance Policy for Details 4.5 Compliance Governance, Risk and Compliance (GRC) shall perform a biennial review of the execution of this Policy for compliance and report any infringement accordingly. Where the need arises, the GCEO is authorized to grant exceptions to the application of this policy, and thereafter seek ratification from the NNPC Limited Board. 4.6 References This policy is an integral part of the NNPC Limited Finance and Accounts Policy Manual. It is complemented by the Supply Chain Management Policy and Procedures. 39