Understanding of Entity’s Business Accounting Records and Accounting System – Name of Organisation: District Zakat Committee Chakwal There is a manual system for recording receipts and disbursements by DZC. The Zakat Administration has its own chart of accounts for various Zakat heads. Chairman DZC and DZO are responsible for maintenance of records with the assistance of related staff. All moneys received by DZC are required to be credited into Personal Ledger Account (PLA) opened through District Accounts Office (not in conformity with New Accounting Model (NAM) as the same are not governed under Revised Procedure being such account in which the Government does not provide funds through budget). All such receipts are to be entered in Cash Book. Each disbursement out of PLA is to be authorized by DZC within the framework of Zakat laws and disbursement procedures. As a rule all disbursements will be through crossed cheques to be signed jointly be the Chairman DZC and DZO. Accounting period is the financial year commencing from 1st June and ending 30th June. The PLA is non-lapsable, however the unspent balance on 30th June is required to be refunded to CZF through PZF as per instructions of CZC. Significant internal controls include: Authorization of expenditure and other decision making by the majority vote of DZC Documentation (Resolution register, cash book, record in support of releases demands, calculations), pass book, internal checks/monitoring activities, attendance register, utilization reports, cheque book counterfolios, acknowledgements) District audit activities and divisional audit activities Job-descriptions and performance evaluation measures Co-signatory ship Human resource development measures Crossed cheque payments Following accounts records are maintained: DZC Accounting at District Level: Main Cash Book Sub-Cash Cheque Book (counter foils of used cheque and un-used cheque books) Cancelled Cheques Treasury Pass Book Resolution Register Tender of Purchases/Comparative statements/Contract Agreement Files. Vouchers of Payment, Income tax deposit challan, etc. Stock Register Physical Verification Report of Fidelity Bond/Security of Store Keeper Security Deposit Register (contractors)
Understanding of Entity’s Business – Accounting Records and Accounting System Name of Organisation: District Zakat Committee Chakwal There is a manual system for recording receipts and disbursements by DZC. The Zakat Administration has its own chart of accounts for various Zakat heads. Chairman DZC and DZO are responsible for maintenance of records with the assistance of related staff. All moneys received by DZC are required to be credited into Personal Ledger Account (PLA) opened through District Accounts Office (not in conformity with New Accounting Model (NAM) as the same are not governed under Revised Procedure being such account in which the Government does not provide funds through budget). All such receipts are to be entered in Cash Book. Each disbursement out of PLA is to be authorized by DZC within the framework of Zakat laws and disbursement procedures. As a rule all disbursements will be through crossed cheques to be signed jointly be the Chairman DZC and DZO. Accounting period is the financial year commencing from 1st June and ending 30th June. The PLA is non-lapsable, however the unspent balance on 30th June is required to be refunded to CZF through PZF as per instructions of CZC. Significant internal controls include: Authorization of expenditure and other decision making by the majority vote of DZC Documentation (Resolution register, cash book, record in support of releases demands, calculations), pass book, internal checks/monitoring activities, attendance register, utilization reports, cheque book counterfolios, acknowledgements) District audit activities and divisional audit activities Job-descriptions and performance evaluation measures Co-signatory ship Human resource development measures Crossed cheque payments Following accounts records are maintained: DZC Accounting at District Level: Main Cash Book Sub-Cash Cheque Book (counter foils of used cheque and un-used cheque books) Cancelled Cheques Treasury Pass Book Resolution Register Tender of Purchases/Comparative statements/Contract Agreement Files. Vouchers of Payment, Income tax deposit challan, etc. Stock Register Physical Verification Report of Fidelity Bond/Security of Store Keeper Security Deposit Register (contractors)