AGRICULTURAL AND RURAL MANAGEMENT TRAINING INSTITUTE (ARMTI)

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AGRICULTURAL AND RURAL MANAGEMENT TRAINING
INSTITUTE (ARMTI)

Km 18, ILORIN
-
AJASE
-
IPO ROAD
,
P.M.B. 1343, ILORIN, KWARA STATE

Website: http: //www.armti.org






















2




TERMS OF REFERENCE FOR

COMPUTERIZATION AND NETWORKING SYSTEM
OF

THE FINANCE & SUPPLIES DEPARTMENT



Background:

(See the Committee’s report on page 4)


ARMTI’s Training Scope

The following are the major areas that ARMTI’s training programmes cover
.



Planning and Management of Agricultural and Rural Development.



Human
R
esource
D
evelopment

and General Management.



Agricultural Finance and Rural Credit management.



Entrepreneurship and Small/medium Enterprise Development and Management



Management Information System and Data Processing



Gender Issues and Youth D
evelopment



Agricultural Research Management



Rural Infrastructure and Institutions Development Management



Extension Management.


Terms of Reference

(a)

Study the Committee’s report. This is the working document for the whole
project. Additional info
rmation for effective performance of the project will
be appreciated.

(b)

Design a Structure in
System Flow Chart/Diagram

for the detailed
Accounting and Computer Network System of the Finance & Supplied
Department and should indicate the followings:
-


3




i
.

Data input or Capturing;



ii.

Processing;



iii.

Information Output;



iv.

Data Maintenance; and



v.

Security arrangements.



(Note that a Wireless Network System (Wifi) is available).


(c)

The security arrangement should be
biometric

authentication.

(
d)

The Structure design data capturing activities should commence from the
Administrative Department Database as regards staff information.

(e)

Recommend the type Application package/Software (bespoke or off
-
the
-
shelf) that is suitable for the project.


(f
)

Submit a Technical and Financial bid separately.





















4


REPORT O
F

COMMITTEE O
N

FINANCE AND SUPPLIES

DEPARTMENT

WORK STUDY


1.0

INTRODUCTION

The committee on finance Department work study was constituted on the need of the
institute to identi
fy and work out a detailed accounting and networking system for the
department. Therefore, in its bid to accomplish this task, a fact finding visit was carried
out to some of the units and work stations in the department. The exercise started on
February 1

and was concluded on February 2, 2011
.


1.1

TERMS OF REFERENCE

The terms of reference include:



Study work of the finance Department.



Recommend appropriate computer that would facilitate the accounting work
process in the Department.



Recommend appro
priate computer networking system, thereby aiding
synchronization of accounting process and preparation.


1.2

METHODOLOGY

The committee having considered the intricacies and importance attached to the
assignment, adopted interview/interactive method by vis
iting some of the divisions and
units in the department. The objectives of the visit was to ascertain the activities and
procedures currently in place, in order to give room for proper planning and
implementation of the (networking) system.




5



2.0

FINDIN
GS AND OBSERVATIONS


2.1

SALARIES
,

WAGES

AND PENSION
:
This unit is in charge of preparing salaries
and wages and

other emoluments of staff.


(i)

OFFICER IN CHARGE:



(ii)


INPUT
S
AND SOURCES
:
-

Input are received from various units and
departments of the i
nstitute after being authorized by Head of Department (HOD
(F&S)) and forwarded to the unit. These include:



Clinics




Cooperative Society




Muslim Society




Administration
-

salary/compassionate loan




Christian Community




Loans and Advances




Ren
t Recoveries




Residential Fund




Union Dues



(iii)


OUTPUT
:
-

The unit’s output included:



Monthly salary journal



Monthly deduction list



Monthly summary report/Abridge Sheet



Bank lists



e
-
payment schedule



Salary variance report

6




Pay slips



Salary analysis by grade level



Tax deduction



Pay history etc.


(iv)

LINKAGES:

The unit is linked with other units/divisions in the institute.

All inputs are received through the HOD (F&S) office. This must be authorized before
the salary unit can imp
lement.


(v)


CONSTRIANTS:
Some of the constraints identified were:




Inability of the current software to compare previous
with
years transactions on
the system
.



I
nability of the administrative department to
disseminate vital information

on
current
status of staff (e.g.) promotion, increment and exit of staff
.



Non user friendly computer environment. (Air conditioners are not working)



The bad state of the equipment ( Printer, UPS, etc )



Inability to query some components of the salary.


(vi)


RE
COMMENDATION:
There should be:
-



A validation officer, who should be a very senior officer in the department;



A linkage provided for the administration department for inputting personnel
information;



An upgrade of all the equipment in the unit.



7




FINAL ACCOUNT MANUAL

(i)

OFFICER IN CHARGE:


(ii)


INPUT
S

AND SOURCES
:
-
The unit input included:
-



Receipts



Payment vouchers



Petty cash vouchers



Journal vouchers

They are sourced from cash office, loans and advances unit, salaries and wages unit.


(iii)

OUTPUT:
-

The unit’s output includes



Trial balance



Cash books



Journals



General ledger



Receivables (Receipts)



Payables (payment vouchers)


(iv)

LINKAGES:
The unit is linked with:
-



Ba
nk matters (Bank charges/commission, Grants etc)



Loans

and Advances (Retirement Journals)



Cash office (Journals on petty cash vouchers)


8


(v)

RECOMMENDATION:
-

The committee recommends that when the system is
in

p
lace, the officer would be a validation officer, who should be trained on the new
system, and be
provided with a linkage.

2.3

BANK MATTERS:
The main function is to relate with the institute’s bankers.

(i)

OFFICER IN CHARGE:

(ii)


INPUT AND SOURCES:



bank statement



debit and credit notes etc.


(iii)


OUTPUT:
This included




Monthly Bank/Cash Reconc
iliation Statement



Cash book maintenance



Journal vouchers Write
-
ups


(iv)

LINKAGES:
The unit is linked with final account units.


(v)

CONSTRAINTS:




Inability to obtain bank statement on time, and consequently, delay in bank



r
econciliation.



(vi)


RECOMMENDATION
:
-

It was recommended that the new system will be able to
give assess to reconciliation which should be performed by assessing ARMTI’s
transactions on desk. This would be possible though internet connectivity.


2.4

CASH OFFICE
: The c
ommittee identified that the unit is critical to having a good
accounting system.

9



(i)

OFFICER IN CHARGE:

(ii)

INPUT



It receives revenues and expenditures requests from internal and
external sources

Internal source



different departments of the instit
ute.

External source



Participants, Contractors etc.


(iii)

OUTPUT:
Its output includes:



Payment vouchers



e
-
Payment mandate



Petty cash vouchers



Receipts



Cash books



Tellers



Weekly revenue summary

(iv)

LINKAGES:
The unit in linked to all othe
r units in the Department.


(v)


RECOMMENDATION:
-




The transaction process should be online real time



There should be two terminals viz:
-

(i)

Receivables

(ii)

Payables



Enough security should be provided to avoid over
-
writing of data



The officer to

be in charge of cash office should be a very senior officer and one
knowledgeable in accounting procedures and processes.



The officer that will be in charge of the unit should be a validation officer.

10



2.5

LOANS AND ADVANCES:
This office recommends an
d reviews the ability of
staff to take loan and advances. It also sees that all the necessary records are kept,
when advances are granted.

(i)

OFFICER IN CHARGE:



(ii)


INPUT



Loan forms



Payment vouchers



Receipts



Deduction list from salary


(iii
)

OUTPUT



Advance Analysis books



Personal ledgers



Schedule of loan and advances (fuel, cash etc)


(iv)

RECOMMENDATION:



The Loan/Advances form should be reviewed



One form should be used for both Duty Tour Allowances and Fuel Advance.
When the new sy
stem is in place the debtors aging report of unretired advances
will have to be generated from time to time.



There will be a linkage between the loans and advances office to the Audit; for
effective monitoring of retirement of advances.



Officer should
have access to cash office in order to extract loans/advance
granted.

11




Officers should be well trained on the job, i.e. to be versed in the new system.



A senior officer should handle the unit considering its peculiarity.


2.6

PROCUREMENT:
-

This offic
e procures all the institute’s items. It equally has a
link to the institute’s contractors, stores and audit.


(i)


OFFICER IN CHARGE:


(ii)


INPUT
S
: The input includes:




Purchase requisition forms etc.


(iii)


OUTPUT:
These include:



Price Lists



Spe
cification of items



Schedule of Procurement items.


(iv)

LINKAGES:
The unit is linked with various units in the institute through the HOD
(F&S).

(v)

RECOMMENDATION:
-

It is recommended that the institute should have a
procurement policy.


2.7

INTERNAL
AUDIT UNIT:
-

This division which is under the Directorate, is
established in order to ensure that procedures, internal controls, financial regulations,
management polices are strictly followed.


(i)


OFFICER IN CHARGE
:

(ii)


INPUTS

12





Payment vouchers




Stores Records




Financial Statements




Financial regulation


Government




Treasury circulars


Government




Management circulars


ARMTI Management


(iii)


OUTPUT



Observations/query



Reports:
-

either monthly, Bi
-
monthly quarterly, yearly etc.


(iv)


LINKAGES:

The division is linked with all units of the institute, most importantly
to the finance and supplies department.


2.8

STORES


This unit is in charge of receiving, storing and issuing goods when
requisitioned. It also maintains ledger, b
in cards and write up Goods Received
Vouchers (GRV) etc. Besides, the unit monitors the Reorder Levels in order not to run
out of stock, Economic Order Quantity (EOQ) to ascertain the best quantity to be
ordered to minimize cost of transportation and stor
age.


(i)


OFFICER IN CHARGE:


(ii)

INPUT
S

AND SOURCES:




Store requisition notes (various units)



Procurement Requisition


(iii)


OUTPUT:

13




Store Issue Notes (SIN)



Good Received Vouchers (GRV)



Store Ledgers etc.

(iv)


LINKAGES:



Procurement



Audi
t unit



Final account unit etc.



Cash Office
etc


(v)


RECOMMENDATION
:
-

The new system should be able to ascertain:



Re
-
order Level



Economic Order Quantity (EOQ)



Update the stores books electronically


FINAL ACCOUNT COMPUTER:
-

This office encompa
sses and links to other units of
the department. All the source document for preparation of draft account/financial
statement of the institute are being

handled in this office


(i)


OFFICER IN CHARGE:


(ii)


INPUT
S

AND SOURCES:



Payment vouchers
-

cash
office



Petty cash vouchers
-

cash office



Receipts
-

cash office



Tellers
-

cash office



Journal vouchers
-

bank matters, salaries, assets units.



Loans & advances analysis book


loans & advances office.

14



(iii)

OUTPUT:



Cash books



Final T
rial balance



Income and expenditure account



Balance sheet



Notes to the account.



Five year financial summary.



Ca
sh Flow Statement


(iv)


LINKAGES:
-

The office linked with almost all other units in the department.



Cash office
-

Payment voucher
s, petty cash vouchers



Salary and wages office


journals



Loans and advances offices


Retirement Analysis



Bank matters office


Journals for bank charge, Grants and other commissions



Assets


for reconciliation etc.


(v)


RECOMMENDATION
:
-

The offi
cer to be in charge should be a validation officer.


3.0

MANAGEMENT ACCOUNTING:

This unit is responsible for coordination of
budget proposals and ensuring compliance of budgeted provisions.

(i)

OFFICER IN CHARGE:

(ii)

INPUTS:

The institutes Financial Stat
ements

(iii)

OUTPUT:




Monthly Management Report (Revenue & Expenditure Analysis)



Variance Analysis

15



(iv)

RECOMMENDATION:

The unit is to be linked to other units in the department.


3.1

GE
NERAL

RECOMMENDATIONS:

The

committee made the following

recommendati
ons:



The accounting system should be networked with internet and intranet facility.



The procedure for DTA and Fuel Advance should be modified to ensure that all
approval for an assignment is obtained before the processing starts.



The Final Account co
mputer and manual should be combined into one after
networking.



The knowledge of virtually all the account staff needs to be upgraded to meet
current and international best practices.



Vendors should be invited to:

(a)

produce system Design from this st
udy. This is required for accurate and
detailed information before implementing the selected packed.

(b)

all stakeholders, including the External Auditors should be invited to
participate in the Systems Design demonstration by the Vendors.


3.2

CONCLUSIO
N:

The committee believed that if the salient issues in the report are
implemented networking of accounting processes of the finance and supplies
department will go a long way in meeting the needs of the Institute.


3.3

APPENDIX:

Attached is the Architectu
ral Design of the proposed Computer
Network System.



16







Dr. S. T. Toluyemi








Mr. A. T. Ifon


Chairman









Member



Mr. S. L. Olajide








Mr. M. A. Nosiri

HOD (F&S) Rep.








HOD (F&S) Rep/Recorder