Finance Policy Manual for Rural and Community Banks, July 2018

The manual is intended to guide the finance departments of these banks in monitoring and protecting the financial and legal health of the company. The main objectives of the manual include formalizing a document that details the accounting system and financial or internal control procedures, and producing reports and statements that will effectively inform management and the board of the bank's financial records and dealings. The manual establishes the operating accounts procedures, with respect to the preparation of the statement of profit and loss, statement of financial position, and cash management. The financial statements of an RCB shall comprise the statement of profit and loss and other comprehensive income, statement of financial position, statement of changes in equity, and notes to the above. The manual also outlines the relevant accounting concepts, including historical cost accounting, which requires companies to determine the amount they include in their financial statements in accordance with the historical cost accounting rules. The manual is divided into chapters, which in turn have been subdivided into sections and sequentially numbered for ease of reference. The table of contents and index enable the required reference to be made. Cross references have been made within the text to other sections where appropriate. The manual is an integral part of the accounting and management information system of these RCBs, and is designed as an internal control system to ensure the early and quick identification of people responsible for any lapses, inefficiencies, frauds, and other malpractices in the financial operation of the institution. The manual is intended to provide management involved in the production of accounting information with an understanding of accounting principles and requirements under the Banking Law. It is also required to produce information periodically to the Banking Supervision Department of Bank of Ghana, and additional information is required for management control and information purposes. The manual is reviewed from time to time and shall be made available to key shareholders, directors, and officers of the institution. The main purpose of the manual is to ensure strong stewardship of financial resources, so as to meaningfully contribute to the well-being of customers, and improve the livelihood of entrepreneurs. Additionally, the manual will ensure the assets of the company are safeguarded, the financial statements are in conformity with international standards, and the locally accepted accounting principles and company finances are managed with due care, responsibility, and professionalism. The manual outlines the principles that shall be followed when producing financial accounts, including the format of financial statements, relevant accounting concepts, and the requirements under the Banking Law. The manual also outlines the responsibilities of the finance function, including the correct application of accounting principles, and the provision of information required for management control and information purposes. The manual is an essential tool for the finance departments of these RCBs, and is intended to guide them in monitoring and protecting the financial and legal health of the company. The manual is also intended to provide a clear line of authority and responsibility to enable various sectional heads to manage their sections. Top management and the Board of Directors should exercise the powerful management tools, which the system affords them, to insist on accountability from the sectional heads and assess their performance continuously. The manual is an integral part of the accounting and management information system of these RCBs, and is designed as an internal control system to ensure the early and quick identification of people responsible for any lapses, inefficiencies, frauds, and other malpractices in the financial operation of the institution.