The Department of Finance was formed in fulfilment of the requirements of Section 53 of the Central Bank Act of 2000 (Accounts and Annual Report).
The Department consists of two (2) Divisions namely; Accounts and Budget, and Treasure Operations
a) Accounts and Budget Division (ABD)
The ABD is charged with the responsibility of providing financial information for the Bank. In terms of the CBL act 2000, the Division seeks to continually develop and maintain a sound accounting system for the Bank within the framework of the evolving International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS). It also efficiently monitors the budget in order to serve the Bank in its planning, coordinating and controlling function.
There are currently three sections under the ABD, namely; Financial Accounting, Accounting Standards and Budget, and Management Accounting.
The key objective of the above-mentioned sections is to develop and maintain a sound accounting system from which reliable financial statements can be produced from time to time. In order to implement these objectives, the two sections have identified the following core functions as key performance areas:
The key functions of the three sections are to:
- Collect, analyse, summarise and post accounting data to the general ledger on a daily basis;
- Match purchase orders to suppliers’ invoices and process payments appropriately;
- Ensure reasonableness of accounts in the general ledger;
- Maintain the Fixed Assets Register (FAR);
- Support the process of acquisitions, depreciation, tax depreciation and disposal of fixed assets;
- Process staff monthly payroll in accordance with instructions from Human Resources Department;
- Act as issuers of cheque books and commemorative coins;
- Maintain proper books of accounts and prepare monthly, quarterly and annual financial statements;
- Prepare, every year end, the final accounts of the Bank as required by the CBL Act 2000 and coordinate the work of the external auditors in the auditing of the Bank’s accounts;
- Assess and mitigate risks, and ensure that risk registers are kept up to date.
- Give guidance and / or assistance to other divisions in relation to financial accounting issues.
The strategic objectives of this Division have been designed to address specific challenges. In particular, reporting that is compliant with IFRS and IAS, Innovation and Modernisation, integration of financial systems, and review of Departmental structure in line with the approved Enterprise Resource Programme (ERP) and Effective usage of technology systems in all areas within the Division.
Budget and Management Accounting Section
The objective of the Budget and Management Accounting Section is to enable planning, directing and controlling of the Bank’s budget that is aligned to strategy. It also provides financial information of the Bank in a manner that will enable Management to measure performance against approved plans and therefore enable decision making process.
The Key functions of the Section include the following:
- To coordinate and compile the divisional budgets of the Bank by issuing budget instructions; classify data from division’s proposals and conduct interviews;
- To consolidate and submit budget proposals to the Budget Committee;
- To ensure that the IDU System is updated with the approved budget;
- To monitor the implementation of the approved budget versus the availability of funds;
- To ensure that items are charged to appropriate account code centres
- To produce monthly management reports, variance analysis that highlights areas of concern and recommendation.
- To produce analytical reports and forecasts that will assist Management to make informed decisions.
b)Treasury Operation Division
The Division is charged with the responsibility of ensuring that all the foreign exchange receipts due to and payments by the bank are received and made by it and recorded in the Bank’s accounting system.
The objective of the Division is to ensure that all deals contracted by the Financial Market Department and instructions received directly into the Treasury Operations Division are confirmed, settled and properly accounted for in the Bank’s accounting records.
The functions of the Division include the following:
- To confirm all contracted deals with counterparties to the specifications of the deals;
- To settle all contracted deals with counterparties to the specifications of the deals;
- To account for all transactions entered into by the Division into the bank’s General Ledger system;
- To attend to queries raised by counterparties or initiating such queries as necessary;
- To prepare the annual budget for the Division; and
- To prepare the annual work programme for the Division.
Reconciliations and Verifications Section (RAV):
The main purpose of this Section is to provide assurance that the daily operations of the Department conform to the specifications of both the Accounts and Budget and Treasury operations divisional policies and procedures manuals, guidelines and applicable laws. (e.g. tax and labour codes).
This activity is intended to provide oversight and assurance to the Director of the daily management of the operational risk of all functions in the Department.
The functions of the Section include the following:
- To ensure compliance with the internal control procedures intended to manage operational risks inherent in the day to day management of the Banks finances, reserves and trading of securities;
- To ensure that Treasury securities auctions and redemptions are accurate;
- To ensure that transactions are recorded accurately in the General Ledger;
- To reconcile all the Banks’s foreign Bank accounts and domestic securities accounts; and
- To reconcile all the Bank staff Loans reconciliation accounts and all payroll related accounts.
- Identify operational risks inherent in the day to day management of the Department’s operations and advise Director on how to manage them.
- Obtain certificates of year end balances from counter parties.