Supporting Documents Flashcards
Supporting documents are
paper records generated by financial transactions that explain all the details about a transaction.
This information is recorded in the relevant books of account.
Supporting documents are usually in paper form, but
electronic supporting documents are also common.
Supporting documents are important for many reasons, and that is why we
must obtain valid receipts when working on projects.
Supporting documents are used in the
financial accounting process to record details of the transaction in the books of account.
Supporting documents are required for the
external audit process to prove that transactions took place as described in the accounting records.
Supporting documents “when” questions are
When was the expenditure made? When was the income due?
Supporting documents “how much” questions are
How much was the expenditure, or how much was the income?
Supporting documents “what” questions are
What was purchased or paid for? What is the income for?
Supporting documents “who” questions are
Who is being paid? Who should pay money to our organization?
Supporting documents “why” questions are
Finally, why? The supporting documents should provide additional information to help us understand what was purchased. This will help to explain the context of the purchase and the activity to which it relates (e.g., lunch for a human rights training workshop).
Supporting documents provide protection to the
project staff handling money. Mislaid or incomplete records can result in suspicion of financial mismanagement.
The most important supporting documents are the
source documents that originate when the transaction takes place.
Which of these items is a valid supporting document?
A handwriting, signed invoice on official letterhead for a catering purchase.
Which of the following statements provides an important reason for obtaining valid supporting documents when working on projects?
They provide protection to the project staff handling the money.
