Cheque Issuing

Cheques should not be written until the payment voucher has been authorised.  The cheque should be entered in the cashbook at the time that it is drawn.

The cheque should not be drawn unless the cash book indicates that funds are available to meet it.  It is illegal to make payments if funds are not available.

After the cheques have been signed they should be entered in the cheque register which is maintained in  cheque number order with columns, showing the name of the payee, the amount, date drawn, name and signature of person collecting it.

The drawn cheque should be sent for signing with the payment voucher and the supporting documents.

They should always be two panels of cheque signatories:

a) PANEL A – The Executive Director

b) PANEL B – The Finance Manager or Bookkeeper

Changes in authorized signatories require the approval by the Partner’s highest level of authority.

Notification of change of signatories (adding or removing) must be communicated to the bank in writing, and the letter must state the reasons. Copy of this letter will be kept in the project’s file for future verification. Copy of all bank correspondence letters should bear the bank’s stamp (and date) as a confirmation of receipt.

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