Procedures for Pre-Auditng an Invoice

Purchasing Procedures

The purchase of local goods and services from Business places and individuals is to begin with the initiation of a purchase order through the Smart Stream accounting software system. This shall occur at the time the service or the product needs to be ordered, not when it is time for payment of the service or product.

The requisitioner searches for sources and obtain quotes if necessary. Requisitioner requests new vendor from the Treasury if needed before Purchase order payment can be made on Smart Stream. Details specifying the Name of Vendor, physical address and a bank account must be produced by the Requistioner.

A fully approved and budget checked requisition is then automatically sourced into a Purchase Order. The official Purchase Order is ready to be sent to a Vendor the smart stream system provides an appropriate audit trail since all transactions are captured on Smart Stream specific to each individual purchase.

Verbal purchases (without an approved purchase order) are not considered for payment.

Local Purchases of Supplies

273: Except where contracts for supplies have been awarded to local suppliers, local purchases should be confined to articles which:

  • Are manufactured or produced in Dominica
  • May be purchased at a cost not more than the landed cost from the cheapest overseas cost
  • Are of an unstable, brittle or perishable nature
  • Are required in small quantities , the total cost of which will not exceed $1000

In other cases approval for local purchases must be obtained from the Financial Secretary, to whom application should be made in writing, giving full reasons why local purchase is in the public interest.

298. The officer signing a local purchase order is responsible for ensuring that the prices on the local purchase order are in accordance with the accepted prices in any current contract for the supply of the articles concerned, or that the prices are fair and reasonable after comparison with those offered by other local suppliers of similar articles in accordance with the procedure in Stores regulations 300.

Purchase Order Preparation

Upon authority by the Permanent Secretary, the Authorized Officer shall authorize the Votes Clerk in the Accounts Department to prepare the Local Purchase Order.

  • The officer who prepares the Local Purchase Order must have a quotation from the Purchasing Company
  • The quotation must have the approval of the Permanent Secretary
  • The Senior Executive Officer/Executive Officer will then authorize the Votes. For example, "Please prepare P.O." and append his/her signature to the quote
  • The Ministry's stamp must be on the Quote
  • If the quote is above one thousand dollars ($1000) the votes clerk must insert a third line on Smart Stream for the Budget Unit to approve the purchase

Approvers (Senior Executive officer/Executive Officer, Senior Administrative Officer, Administrative officer) must:

  • Validate that adequate funding is available
  • Ensure compliance with financial rules and regulations,
  • Review and approve purchase order
  • After the Purchase order is approved, it then has to be printed
  • The printed purchase order must be signed by the Authorized Personnel

When the Local Purchase Order is prepared the Authorized officer must sign the Purchase order before the Order is presented to the Merchant.

At the end of each month, accounting officers are to ensure that all invoices are matched with the purchase order. No amounts should remain in encumbrance in excess of two months.

Purchase Order Payment

Upon receipt of goods ordered, a department must enter the invoice on Smart Stream.

Authority and Responsibility

As stated in the Finance and Audit Act, Chapter 63:01:

  • 80 (2) The officer who signs the invoices thereby certifies to the accuracy of every detail therein. He shall therefore be held responsible that the services specified have been duly performed, that the prices charged are either according to contracts or approved scales, or fair and reasonable according to current local rates, that authority has been obtained as quoted, that the computations and costings have been verified and are arithmetically correct, that persons named in the invoice are those entitled to receive payments and that stores purchased have been duly taken on charge
  • 81. (1) Payment vouchers shall be certified only by officers authorized to do so
  • 85: (1) Certify officers shall exercise the greatest care to ensure that the certificates sign are in accordance to the facts
  • 88. Payments shall be made only to persons named in the vouchers or their legal representative
  • 90. Officers are required to see that all expenditure chargeable against their votes is, as far as possible, paid within the financial year to which it is properly chargeable. Officers not conforming to this order will render themselves liable to have the amount surcharged against their salary
  • 91: Expenditure falling due for payment before June 30th may not be paid in a subsequent year without the authority of the Financial Secretary. Application for such authority shall be accompanied by a full explanation of the cause of the delay, showing clearly upon whom the responsibility rests

Procedure to enter on Smart Stream: Chapter 63:01 Section 80(1)

  • All invoices on Smart Stream must contain full particulars of each service such as dates, numbers, quantities, distances and rates, so as to enable them to be checked without reference to any other document and be supported by relevant documents such as invoices
  • Quote the appropriate authority for expenditures
  • Quote the appropriate Ministry, Program, sub-program, Account, source of fund, sector, Last code
  • Be fully completed in regard to the various certificates and spaces provided for information incorporated for information in the form of the voucher
  • Contain the amount of the payment written in the space provided

When an invoice is received and the invoice does not have a number , the votes clerk will create the invoice number on Smart Stream by using the initial of the vendor's name and the date the invoice was issued in the format day month year.

For example, John Brown invoice dated 6th July 2018 issued to the Ministry of Finance, invoice number on smartstream will be denoted by: F100 JB060718.

  • No erasures shall be made on invoice
  • Any necessary corrections of figures or words shall be made by striking out the incorrect figures or words with a single line and writing the correct entry above
  • All such corrections shall be initialed by the certifying officer
  • Only originals invoices shall be signed by the certifying officer

Invoices are entered on Smart Stream by various Ministries/Departments and are paid in accordance with Financial Rules and Regulations and Finance and Audit Act, Chapter 63:01.

Payments of Public moneys made shall be made under the authority of the Minister of Finance to Accounting officers through the Accountant General.

The Accountant General office will ensure before approving an invoice according to Finance (Administration) Act 4.

Approvers must ensure:

  • Vendor's name and address on bill matches the name and address on Smart Stream
  • Invoice date and invoice number is clearly written on the bill and entered on Smart Stream.(Therefore if the invoices are in excess of nine for one vendor, the invoice numbers must following a special sequence, for example 01-09. Nine invoices can be entered. If the sequences are not the same, only two or three can be entered on one invoice
  • Quantity, item description and price must be clearly written on the invoice. Calculations must be crosschecked. If calculations are incorrect, the invoice must be rejected and a comment must be placed in the comment box
  • All invoices must be approved by the Accounting Officer. Second approver by the Treasury only if correct after pre- auditing
  • Invoices where the expenditure was made in an old financial year must have the approval of the Financial Secretary
  • Jobs done in excess of five thousand dollars must be accompanied with a contract
  • Contract must be approved by the Minister of Finance
  • The letter informing the Ministry of the Approval of the contract must be attached on Smart Stream
  • House rent contracts must be approved by the Cabinet
  • Lease must be attached to the Invoice

Lost Invoices

Chapter 63:01 section 87: In an original voucher is lost, the voucher prepared for payment will contain a note to the effect that the ORIGINAL has been lost, giving reasons. The fact will be recorded in the vote account. The payee shall sign an indemnity to refund the full amount paid in the event of the double payment.

Payments for accidents involving Government Vehicles and Plant

Refer to the Finance and Audit Act chapter 63:01 Part XV11 Section 350-362 for further details.

Posted: 14/09/2018