Administrating expenditures

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You will encounter expenditures for all possible services during the implementation of your project. With a good planning and control over the revenues and with a detailed budget and financing plan you will be sure that you have enough means in your cash box exactly when you need it.

Contents

[edit] Expenditure receipt

An example of an expenditure receipt/ voucher
All expenditures from funds have to be documented by the receipts. A receipt provides information about usage of the funds. More: Receipts for expenditures and revenues.

You had an optimal economic management if the expenditures, which were approved in the budget and financing plan, are exactly the same as the sums of all your expenditure receipts:

Sum in the budget plan = sum of all receipted amounts

If you don’t get any vouchers in the stores that would say what you used the money for, an ordinary standard receipts book might help. The salesperson as the one who received the money will sign the receipt. You as the one who gave the money keep the original.

[edit] Administration of the lists

An example of a document list of meal costs
After you have filled in the lists by the receipts you can become sure that you didn’t overstep the sums for the single types of costs or the total funds. This list is called document list.

Besides your own control, these lists also function as a documentation of your activities towards the donors. Normally it’s required that you send them the list. Often it is requested to compile such a list for each type of costs, e.g. one list for the travel expenses, one for the meals, one for the PR...

In the document list, every single receipt is to be listed accordingly to the date and numbered. Each receipt should be assigned with following data:

  • Sequence number (according to your own counting)
  • Description of the item
  • Date
  • Place
  • Number of the evidence (from the issuer, if available)
  • Amount in the foreign currency
  • Amount in the own currency

[edit] Compilation of documents

An example of a document compilation

You will be often requested just to send the document list to the sponsors. Then it is demanded to show whether you are able to prove the receipts, i.e. you can prove that the document list wasn’t just made up.

Other sponsors demand both: document list and the original receipts or copies of the receipts. We recommend you anyway to keep the receipts sorted in the following form.

For that you have to stick every single receipt on an A4 paper. If they belong to the same type of costs, you may stick several receipts on one page. But you always have to keep in mind to let enough blank space in the margins for clarifying information or translation and make sure that the arrangement of the page is clear. The most important information may be marked, especially if the receipts are in foreign language.

If possible, on the right side next to each receipt you should write following information in a good readable form:

  • Sequence number from the relevant document list
  • Description of the item: What was the money used for? E.g. “Flipcharts for workshop”
  • Date: When was the payment made?
  • Amount: How much did you pay in your currency and how much was it in EUR?
  • Exchange rate: According to what exchange rate did you convert the amount from your currency to EUR? How to do this, read below. See also: Receipts for exchange rates.

[edit] If you encounter changes of the expenditures as compared to the plan

These might be:

  • In one type of costs you have to spend more, in another one less.
  • Your budget does not suffice.
  • You are not able to spend the money.

In each case you have to contact the sponsor or study the conditions of approval. Maybe you ask yourselves, why you have to do this when you want to spend less money: Well, because the sponsor also plans his finances and doesn’t want to give money back everywhere possible at the end of the year, wants to avoid the accusation of bad financial management or maybe he wants to spend the money for another project.

[edit] Tips

[edit] Make the life easier: Total receipt instead of thousands tickets

In case of several single receipts for the same product such as entrance tickets to a performance, museum, bus tickets and so on, you can ask for a total receipt at the cash register. So you don’t have to document every single receipt (see below) in the document list.

[edit] In case of bank transfers, one copy of statement suffices.

Care has to be taken that other personal data in these copies should be stroke through or made otherwise unreadable.

[edit] Self-prepared receipt: if there is no other way

An example of a self-prepared receipt

In exceptional cases when you cannot get any receipt, for example at the market without cash registers, or when you give the money to the participants so they can look after themselves at a trip, you can sometimes issue a self-prepared receipt. A standard receipt is used for this. You fill in all data and sign it.

[edit] Travel Reimbursement

For reporting expenditures for travelling, a lot of donors have special procedures and templates. Travel Reimbursement

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