Finance and Accounting Manual (FAM) For NorCross Field Offices PDF

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Finance and Accounting

Manual (FAM)
for NorCross Field Offices
(when accounting in Agresso or Excel)
Annex 6.2 to the Operational Manual
Developed by: Accounting Unit

Administration and Quality Assurance Unit
Approved by: Heads of Programme, International Department
First approved: 15 December 2014
Latest review : June 2016
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Annex to NorCross Operational Manual
Updated April 2016
Contents
Contents .................................................................................................................................... 1
A. Accounting system......................................................................................................... 4
B. Set up for the accounting .............................................................................................. 4
B.1. Agresso ........................................................................................................................ 5
B.2. Excel ............................................................................................................................ 5
C. Official accounting requirements and NorCross regulations for financial control 5
D. Accounting structure .................................................................................................... 6
D.1. Attributes and relations in Agresso ............................................................................. 8
E. Chart of accounts .......................................................................................................... 9
F. Cash ................................................................................................................................ 9
G. Bank accounts ................................................................................................................ 9
H. Advances, Deposits and Accruals .............................................................................. 10
I. Tax exemptions ............................................................................................................ 11
J. NFO .............................................................................................................................. 11
K. Approved budgets and Eligibility of Costs ............................................................... 12
L. Audit ............................................................................................................................. 13
M. Accounting principles ................................................................................................. 14
M.1. Completeness ......................................................................................................... 14
M.2. Reality .................................................................................................................... 14
M.3. Accuracy ................................................................................................................ 14
M.4. Updating and frequency ......................................................................................... 14
M.5. Documentation ....................................................................................................... 14
M.6. Traceability ............................................................................................................ 15
M.7. Filing ...................................................................................................................... 15
M.8. Secure keeping ....................................................................................................... 16
M.9. Cash basis accounting vs. accruals principle accounting ...................................... 16
N. Cash requests and cash flow....................................................................................... 16
O. Transfer of Funds from HQ ....................................................................................... 17
O.1. Accounting in Agresso .............................................................................................. 17
O.2. Accounting in Excel .................................................................................................. 17
P. Routines and working habits ..................................................................................... 17
P.1. Booking in open periods ............................................................................................ 17
P.2. Signatures and authorisation ..................................................................................... 17
P.3. Vouchers which are not yet registered ...................................................................... 18
P.4. Currency and exchange rate ...................................................................................... 18
P.5. Agio/disagio .............................................................................................................. 19
P.6. Bank management and check book ........................................................................... 20
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P.7. Petty cash ................................................................................................................... 20
P.8. Payments ................................................................................................................... 21
P.9. Salary for local staff .................................................................................................. 22
P.10. Salary advances...................................................................................................... 22
P.11. DSA/per diem ........................................................................................................ 22
P.12. Working advance ................................................................................................... 22
P.13. Accruals ................................................................................................................. 23
P.14. Purchases ............................................................................................................... 23
P.15. Assets and inventories ........................................................................................... 24
P.16. Reconciliation ........................................................................................................ 25
P.17. Supplementary services invoices in Ibistic and splitting of costs .......................... 25
Q. Closing procedures ...................................................................................................... 26
Q.1. Accounting in Agresso .............................................................................................. 26
Q.2. Accounting in Excel .................................................................................................. 26
R. Reporting ..................................................................................................................... 27
S. Closing of Field Office ................................................................................................ 28
T. Epilogue on the Norwegian Act of Accounting ........................................................ 29
T.1. Obligation to keep accounts ...................................................................................... 29
T.2. The Accounting Act chapters 3 to7 ........................................................................... 29
T.3. Auditing ..................................................................................................................... 29
U. Epilogue on Donors ..................................................................................................... 30
U.1. Norad funded projects: (re chapter 13 in the OM) .................................................... 30
U.2. MFA funded projects: (re chapter 12 in the OM)...................................................... 30
U.3. EU funded projects: (re chapter 14 in the OM) ......................................................... 31
V. Epilogue – Currency balance accounts for NorCross Field Offices ....................... 32
W. Epilogue on accounts .................................................................................................. 35
W.1. Income (accounting class 3) .................................................................................. 36
W.2. Goods for use in the programmes (accounting group 46) ..................................... 36
W.3. Payroll and personnel costs (accounting class 5)................................................... 36
W.4. Costs related to premises (accounting group 63) ................................................... 37
W.5. Machinery, fixtures and fittings (accounting group 64, 65 and 66) ...................... 37
W.6. External service (accounting group 67) ................................................................. 37
W.7. Office costs (accounting group 68) ........................................................................ 37
W.8. Telephone (accounting group 69) .......................................................................... 37
W.9. Costs related to means of transport (accounting group 70) ................................... 37
W.10. Travel costs and allowances (accounting group 71) .............................................. 38
W.11. Selling, advertising and representation (accounting group 73) ............................. 38
W.12. Subscriptions, membership fees and gifts (accounting group 74) ......................... 38
W.13. Contributions (accounting group 87) ..................................................................... 38
W.14. Finance income and expenses (accounting group 80 and 81) ............................... 39
X. Agresso/Unit4 Query on NorCross Activity Result/Balance ................................... 42
Y. Agresso/Unit4 Query on NorCross Activity Result Currency ................................ 50
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Z. Step by step – Ibistic Invoicing system – Acceptance and approval ...................... 58
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Background
The aim of this Finance and Accounting Manual (FAM) is to ensure that all Norwegian Red
Cross’ (NorCross) Field Offices work according to set standards – i.e. follow NorCross
accounting standards and procedures. The Manual is an annex to the Operational Manual which
states the overall standards and procedures for NorCross international work. The Finance and
Accounting Manual gives a detailed guidance on the standards for NorCross accounting in the
Field Offices. These standards are identical to the accounting standards at NorCross HQ, and are
hence to be adhered to by all finance and admin staff and personnel. This Manual builds on
chapter 6 in the Operational Manual on Financial Management, and relevant templates.
Please see chapter 3 for overall issues on Administration and Management of Field Offices. The
chapter includes the template “Checklist for Handover” to be filled in whenever there is a change
of personnel and the template “Power of Attorney – for Bank Account” for updating bank
authorisation.
It is mandatory for all finance and administrative personnel to be fully acquainted with and work
in line with the contents of this Finance and Accounting Manual.
All finance and accounting personnel in the Field Offices are included in two e-mail groups in
Outlook called “NorCross Accounting personnel” and “NorCross Regional Finance”. These
are the main channels for general information from the Accounting Unit and the Finance and
Administration Unit at HQ to the fin/admin staff in the Field Offices.
A. Accounting system
According to the Norwegian Accounting Act, NorCross is obliged to have an accounting system.
This system can contain both electronic tools and manual elements. For NorCross accounting the
main accounting programme used is Agresso in addition to other computing programmes for
income, payments, and payroll, stock, as well as Excel sheets for budgets, accounting, inventory,
and reporting. All external and internal systems, routines, descriptions, files etc. both at HQ and
in the Field Offices are parts of the accounting system.
The accounting system has to be set up according to the requirements for reporting to the
Norwegian public authorities. For NorCross this also includes its back-donors.
NorCross’ external auditor may in addition to the interim and annual audit perform a system audit
to reveal weaknesses in the accounting system and suggest amendments. This may also be
included in the Audit Engagement Instructions for the Field Offices.
B. Set up for the accounting

NorCross has two main set ups for accounting. Which set-up to choose will depend on factors
like:
 Duration of the project
 Amount of transactions
 Complexity
 Location
 Internet access
 Personnel qualification
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B.1. Agresso
Agresso is the main programme for accounting at HQ. This is definitely the best solution for
accounting in the NorCross’ Field Offices as well. It is a comprehensive accounting programme
with many functionalities, possibilities and online connection to HQ. The programme can handle
large amounts of transactions, with easy copy/paste functionality. In addition several customised
NorCross balance table enquiries are accessible.
This system is fit for Field Offices with trained and stable accounting personnel, as well as
operations with a longer duration and a certain amount of transactions.
The online connection with HQ is done via Citrix 1) and gives the Field Office easy access to
follow-up the accounting and financial reporting on a daily basis, in addition to the financing and
budgets for the activities. All back-up is taken care of by HQ. The programme is fully available
in English. Citrix can be run from all computers, but it requires a good and stable internet
connection. A unique licence for each user has to be established by HQ.
Due to the complexity and comprehensiveness of the Agresso system, appropriate training from
HQ staff is highly recommended before use.
1) Citrix is the platform for NorCross computing system
B.2. Excel
Where relevant a template for accounting and postings in Excel is available. This shall only be
used in small scale operations or in areas where the technical requirements for Agresso cannot be
met.
NB! The Excel template is set up in order to easily be copy pasted into Agresso. Please be aware
that you always use this template and never change it.
The accounting sheets, including the invoices, receipts and other documentations for the postings,
have to be sent to the nearest accounting NorCross Regional Office or HQ and will be registered
in the accounting system. The Excel sheet must be printed out and signed by the authorised
personnel before it is sent to NorCross Regional Office/HQ. In addition to receiving the original
Excel sheet, the electronic version is also required before the postings are registered.
Excel is not a closed system so it is possible to change the postings. Hence signed copies of
registered transactions are necessary. The set-up is not suitable for operations with a large amount
of transactions as it needs a very precise registration that soon can become quite time-consuming.
C. Official accounting requirements and NorCross regulations for financial

control
NorCross internal rules and regulations stipulate that NorCross’ accounting shall follow the
Norwegian Accounting Act.
The NorCross document “Regulations for Financial Control in the Norwegian Red Cross”
regulates all financial management and internal procedures. Please be aware of the following
issues:
 Authority to sign and approve
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 Budget procedures
 Restriction on the use of funds and reallocations
 Opening of bank accounts
 Accounting and reporting
 Internal control
The document is found in Chapter 2 of the Operational Manual. This chapter also seeks to clarify
basic roles and responsibilities. For further clarifications reference is made to the Accountability
Matrix.
D. Accounting structure
NorCross accounting structure is set up to make it possible to report on many levels. The main
reporting levels are account, accounting group, activity, unit and department. To make this
reporting possible, the following parameters are always required registered; account, cost centre
and activity code.
Account: Each account has an accounting rule stating which attributes are required (for that
account) re #Chart of accounts. When posting in Agresso only categories defined for the chosen
account will be shown. The categories shown always have to be filled in.
The financing of the activities and register of taxable benefits for employees is integrated in this
system.
Cost centre: The cost centres reflect the NorCross structure. They are established by NorCross
HQ and are made up of 3-digits. The 3-digit cost centres are used for transactions that occur at
HQ and the field.
NB! Up till 2015 5-digit cost centres were used for transactions that occurred at a NorCross Field
Offices.
The cost centre is structured as follows: The first figure reflect the NorCross department that is
budget holder and owner of the activity. The two last figures define the geographic region.
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Department Region
Transaction type (TT): Each Field Office has been assigned a specific transaction type (TT).
The TT defines fiscal year and voucher series for the field office where the booking is being
done. When booking the postings in Agresso make sure you register with the correct transaction
type TT. The TT value usually corresponds to the Field Office Code.The table below shows the
different TTs established for each field office.
Field Office Code: Please note that for all bookings you also have to register the Field Office
Code under CAT 6. You are to use this code when processing results- and balance reports for
your field office. The attribute value for the Field Office Code is the same as the TT Code.
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The Field Office Code separates and tracks costs – i.e. which costs are posted at different Field
Offices and which costs are posted at HQ level. If you do the accounting for several Field Offices
make sure that the balance accounts and the Field Office Code correlates. If this is not done
correctly the enquiries in Agresso will not provide the correct basis for the Financial Statements
C-4.2 “Statement per Project” and C-4.3 “Statement Total” .Field Office code is not used when
posting in HQ and will show up blank in enquiries.
NB! The code has to be used for all postings and if you forget to enter this code your reports will
be incomplete. This code is not mandatory and the system will not alert you if you do not fill in
the code. If you have forgotten to enter the Field Office Code a correction has to be made in order
to include this (reverse the posting without the Field Office Code and repost with Field Office
Code).
See D.1 for attributes and relations in Agresso.
TT/Field
office code Description
HC GL Posting Cuba
HD GL Posting Philippines
HE GL Posting Iraq
HF GL Posting Madagascar
HG GL Posting Guatemala
HH GL Posting Haiti
HJ GL Posting Somalia
HK GL Posting Kenya
HL GL Posting South-Sudan
HN GL Posting Panama
HO GL Posting Lebanon
HP GL Posting Pakistan
HR GL Posting Nepal
HS GL Posting Sudan
HT GL Posting Afghanistan
HU GL Posting Honduras
HV GL Posting Vietnam
HY GL Posting Yemen
HZ GL Posting Syria
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TT/Field Description
office code
H1 GL Posting HQ
BA Bank HQ
FS Customer invoice HQ
FT Financing of activities
KA Petty Cash HQ
LI Supplier invoice/Transfers to Partners
HQ
LO Payroll HQ
XA Earmarking of Funds HQ
YE Year Ending (Opening balance)
Activity number: Activity numbers are established in connection with the annual budget process
or unbudgeted operations during the year (disasters etc.). The number is made up of the standard
3-letters ISO code for the given country plus 5 figures. The first two figures indicate which year
the activity has been established/funds granted. Each activity is linked to one main funding
source only (MFA, NORAD, ECHO, or NorCross’ own funds). The funding is linked to the
specific activity number until the funds have been fully spent. The annual activity number is
never again to be used once the corresponding funds have been all spent.
It is the Finance and Administration Unit at HQ that establishes the activity numbers (+ cost
centre) in Agresso.
KEN 16 090
ISO – Code/ Year NorCross

specific
Country
numbering
NB! In order to ensure that the costs are charged to the right project the activity number has to be
stated on all vouchers. This is the responsibility of the person who approves/verifies (attesterer)
the voucher before it is authorised (anviser).
NB! Only the person who has good knowledge of the expense can know which activity number it
should be charged to. By approving the voucher the signatory vouches for the validity of the
expense.
D.1. Attributes and relations in Agresso

Agresso is based on a given set of attributes. Each attribute has a set of attribute values. Some
attributes have predefined attribute values whilst others have optional attribute values.
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The following attributes are used when accounting in Agresso. For these attributes listed below
an attribute value must be registered.
 Cost centre
 Activity
 Employee number
 Fixed assets ID
 Currency code
 Cost Area/Type
 Field Office
Examples for attribute values for the above attributes are (in italics)
 Cost centre: 523
 Activity: KEN16090, GTM16011
 Currency code: CHF, USD, NOK
 Cost Area/Type: DPF/DPAS
 Field Office Code: HN (for Panama)
In Agresso the attributes are placed under the following categories;
Account Cat 1 Cat 2 Cat 3 Cat 4 Cat 5 Cat 6 Cat 7
Account Cost Centre Activity Fixed Assets Cost Area/Type Field off Trigger
Car nr Funding source
Employee nr Budget holder
Relations: Attributes related to other attributes are called relations. Whenever an activity number
is established a certain set of relations are also established along with it. These relations are;
 Donor
 Channel
 Theme
These attributes are actively used when accounting in Agresso. The attribute values are
predefined for the attribute it relates to.
These attributes makes it possible to extract information on several levels. Agresso can produce
reports on all of these.
In order to activate the query for a relation in Agresso you have to be in a cell on the “Activity”
line before you can choose which relation you want to activate.
When accounting in Excel the main attributes such as account, cost centre and activity code also
have to be registered, as this will be transferred into Agresso.
E. Chart of accounts
NorCross chart of account is built on a Norwegian standard NS4102 which again is built on
international standards for accounting. The charts of accounts are divided into nine classes. The
first two classes are balance accounts, class three for income and class four to seven for expenses,
class eight and nine for finance and year-ending transactions. NorCross do not use class nine.
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The class headings are:
1. Assets
2. Debt and equity capital
3. Income
4. Sales expenses
5. Payroll and social expenses
6. General expenses, such as office costs, professional services and communication
7. General expenses, such as vehicle costs, travelling and marketing/representation.
8. Transfers, interest, agio etc.
The classes are the basis for the finance reporting. Each class has ten groups. Not all groups are
used in NorCross accounting and in some of them NorCross HQ has entered other contents than
in the standard. This is because these standards are made primarily for sales companies and they
are not always filling the requirements of a humanitarian organisation.
The accounting classes are the basis for the NorCross chart of account. Each class is divided into
ten groups. Under each group you have actual accounts for that specific type of costs.
Account
7140 - travel expenses HQ
employees
Accounting group Account

71 Travel, milage allowence, 7141 Travel expenses
subsistence allowance representatives/non-employees
Account
7143 travel expenses delegates
Accounting class
7 General Expenses
Account
7405 Participation fee,
course/seminar
Accounting Group
74 Marketing, representation
Account
7420 Gifts and other contribution,
non-employess
Financial reports and statements are set up as a combination of accounts; cost centre and activity
code which means that the accounts are used in general and not specified for certain projects or
programmes. Cost centre and activity code give additional information and make the reports
meaningful.
It can at times be difficult to find the right account for the expense to be booked. As a rule it is
more important that it is booked at the right accounting group. The first question is: In which
group should the expenses be posted? If a suitable account is not found in this group, use the one
in the same group that is closest to the type of expense that is posted. Or contact Accounting Unit
at HQ. You will also find a closer presentation of the accounting groups in Epilogue on accounts
at the end of this document.
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Grey Account group heading. Always to be considered before choosing appropriate
account
Red Only to be used by NorCross HQ
Yellow Use with precaution
Green Accounts to be used in the field
NB! For more information on the most used accounts, please see the epilogue on accounts in this
document. You will also find the Chart of accounts for the field in Operational Manual, chapter 6.
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Balance accounts Result accounts

5. Payroll and social 8. Transfers, interest, agio
1. Assets 2. Debt and equity capital 3. Income 4. Sales expenses 6. General expenses 7. General expenses
expenses etc.
40. Consumption of 50. Wages and salaries to
60. Depreciation and write- 70. Costs related to means 80. Cash contributions -
10. Intangible fixed assets. 20. Equity 30. Revenue, liable for VAT produce and semi-raw employees - Payroll and
downs of transport Cash and finance
materials social expenses
41. Consumption of goods 51. Wages and salaries to 61. Freight, cost of 71. Cost and allowances
11. Capital assets. 21. Provisions 31. Revenue, VAT exempt 81. Financial expenditures
under manufacturing temporary staff transportation related to travel
12. Means of
22. Other long-term 42. Consumption of 52. Benefits related to 62. Energy, combustibles
transportation, inventory, 32. Various incomes 72. Commission payable 82. Free
liabilities manufactured goods working conditions for production use
machines etc.
23. Short-term loans and 73. Sales costs, advertising
13. Financial assets - short 33. Government fees 43. Consumptions of goods 53. Other reportable 63. Cost related to 83. Tax cost on ordinary
debt to financial and entertainment -
term receivables, staff relating to turnover for resale remuneration premises result
institutions Marketing, representation
14. Stock and advance 54. National insurance 64. Rental of machinery, 74. Membership dues and
34. Public subsidies / 84. Extraordinary income
payments to suppliers - 24. Accounts payable 44. Free contribution and pension fixtures and fittings - gifts - subscriptions and
reimbursement specified
Stock of goods costs Equipment rental gifts
15. Short-term receivables -
45. Foreign 55. Other remuneration 65. Tools, fixtures and 75. Insurance, guarantee 85. Extraordinary costs
Receivables RC7RC, ICRC, 25. Tax payable 35. Unearned income
output/services /reimbursement fittings. Not capitalised and service costs specified
IFRC
46. Consumption of good
16. VAT, earned public related to projects - Goods 56. Labour compensation 66. Repair and 76. License and patent 86. Tax costs on
26. Deduction of tax 36. Rental income
subsidies etc. and consumables - to owners maintenance costs extraordinary result
programmes
17. Prepaid expenses, 67. Foreign /External
37. Commissions 57. Public subsidy related
incurred income etc. - 27. Debt public dues 47. Free services - various foreign 77. Special/other expenses 87. Cash contributions
receivable to labour
Cash Advance services
18. Short-term financial 38. Gain from sale of 58. Public refunds related 68. Office costs, printed
28. Dividend 48. Free 78. Losses etc. 88. Annual results
investments capital assets to labour material etc.
29. Other current liabilities
19. Cash, bank deposits 39. Other operating 69. Telephone bills and 89. Transfers and
- Government grants 49. Other accruals 59. Other personnel costs 79. Accrual account
etc. income postage allocations
(MFA/Norad), unused
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F. Cash
Cash is the area of accounting which has the biggest risk of loss and differences. It is hence
important to reduce the use of cash to a minimum and to take precautions to minimise risk.
Cash has to be kept locked and if possible in a safe. Only one person can be responsible and
have access to petty cash. Working advances can be given (see working advances below). The
person responsible for the cash is also responsible for updating the cash book on a daily basis.
You will find a template for cash book in the Operational Manual (see Petty Cash).
G. Bank accounts
Based on operational needs it must be considered if a bank account should be established or
not. This is especially relevant if one suspects that an ERU operation will likely transit to a
long-term operation.
Selection of bank: NorCross operations are undertaken under the umbrella of the legal status
of the International Federation of Red Cross and Red Crescent Societies (IFRC); the
International Committee of the Red Cross (ICRC); or through the Host National Society in the
respective country. The legal status must be clarified before a bank account can be
established. Experience shows that it is vital to establish a channel for transfer of funds as
soon as possible. Transfers to bank accounts are the easiest and most secure way to transfer
funds. Elements to consider when selecting the bank are:
 Legal status
 Service level of the bank
 Internet banking
 Office location
Opening bank account: Opening of a new bank account has to be done in cooperation with
the Accounting Unit at HQ and in accordance with Regulations for Financial Control in the
Norwegian Red Cross (RFC) which is the following:
“The Secretary General must approve the opening of bank accounts on behalf of NorCross.
The authorisation to operate these accounts should preferably be done in accordance with the
limits given in the RFC. If the limits prove impractical, other limits should be approved and
implemented for practical reasons only.”
NorCross template for power of attorney for opening of bank account is found in the
Operational Manual chapter 3 – under toolbox
Upon opening a bank account the following information must immediately be sent to HQ:
 Name and address of the bank
 Name of the account holder
It is vital that this is absolutely correctly spelled. If not, transfers from HQ will fail and
be returned to HQ.
 Information about the account: account number, IBAN, BIC, currency etc.
 Name of the people who have access to the bank account.
 How the bank account will be accessed: cheque, internet bank, cash from bank etc.
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At the opening of the bank account it must be ensured that two people from the Accounting
Unit at HQ are authorised for access to the account in case of emergency.
As soon as a bank account is established in the bank, NorCross HQ will establish a
corresponding general ledger account in the NorCross balance (group 19). For Agresso users
bank accounts are established in a fixed currency according to the definition for the bank
account in the local bank.
The number of accounts should be kept to a minimum, normally one account for hard
currency and one in local currency.
The Office Specific Information form: All information on the bank account(s) is to be
included in the Office Specific Information form. The form should state who has authorisation
with regards to the bank account both for paper based payments and internet banking. This
form also requires a detailed routine description for both paper based payments (eg. checks
and letters to the bank) and internet payments.
Authorised signatories to the bank account: Similar to the IFRC, NorCross requires two
signatures for all bank transactions. Only NorCross delegates and local staff appointees may
be signatories to NorCross bank accounts, as well as the two from the Accounting Unit at HQ.
Remember to update bank authority every time there is a change in personnel.
Exception from two signatories: If two signatories are impossible, the office must receive a
signed form from HQ approving that transactions can be signed by only one signatory.
Currency: NorCross HQ will normally transfer funds to the Field Office in hard currency.
The field office must ensure the transfer of funds from the hard currency to the local currency
account. As a precaution against inflation, a maximum of available funds should be retained
in the hard currency account as long as possible. If possible, transfers to National Societies are
done in local currency, if not in hard currency.
NB! Transfers between bank accounts in different currencies will usually result in some
agio/disagio that has to be posted individually for each transfer.
Payments: Payments should be made using the safest method available in each location. Cash
should only be used as a last resort for small payments. Payments of invoices may result in
agio/disagio which should be posted individually for each payment.
Reconciliation: All bank accounts shall monthly be reconciled as a part of the financial
reporting process. Signed reconciliation form and copy of bank statement shall be submitted
to the Accounting Unit at HQ.
All bank accounts have to be fully accounted with all transactions posted individually. This is
also important when accounting in Excel sheets.
Closing of bank accounts: When closing an office it’s also important that the bank accounts
are fully closed. All authorisations have to be closed. A receipt from the bank that the account
is closed should be sent to the Accounting Unit at HQ as soon as the account is closed.
H. Advances, Deposits and Accruals
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Advances: can be given as working advances to National Societies, as individual personal

working advances (see P.12) or salary advance (see P.10).
If the Partnership Agreement stipulates a set-up with working advances as the main
disbursement method these advances can be given for a set period relative to the project
support. The current advance must be cleared with delivery of reports and all receipts and
supporting documentation before a new advance can be given.
Deposits: When deposits are made for office rent, house rent, vehicles rent etc. these are not
to be expensed. Deposits should be posted at account 1729. These should be settled when the
contract is terminated.
Accruals: The accounts are at all times to reflect the costs occurred. We usually book
expenses when invoices are received or when purchases are paid by cash. In order to show the
full cost picture we may sometimes register costs which have not yet been invoiced. This is
particularly important at the close of the fiscal year. For more details please see P.13.
I. Tax exemptions
If VAT exemption has been obtained, VAT is considered a non-eligible cost. Please make
sure to file documentation on VAT exemptions.
For EU funded projects: Providing documentation on tax exemption is vital whenever an
ECHO funded project is audited by the ECHO auditor. Failures to provide such
documentation/proof may result in a request for repayment of said funding.
J. NFO
A NorCross Field Office (NFO) is a field office that is outside of Norway, and is staffed with
at least one NorCross employee. The office has been set up to ensure a closer cooperation
with the National Societies that NorCross work with in that region/country.
The accounting of expenses that are relevant to the overall running of the Field Office (and
not activity specific) should be accounted to a NFO activity number. The NFO activity
numbers were introduced in order for the management to get an overview of the full, actual
cost of each Field Office as well as to enable automatic repartition of invoices. Each Field
Office has a specific NFO activity number (annual). The NFO bookings are automatically
rebooked according to a set percentage between the activity numbers valid for each NFO.
This rebooking is done automatically in Agresso with an Agresso tool called Triggers.
The repartition of the NFO costs is decided annually (in January each year) and triggers set up
accordingly by the Accounting Unit. The repartition of the NFO costs may be changed during
the year. If so the trigger has to be changed accordingly. The green light for posting on NFO
activity numbers is announced by e-mail from the Accounting Unit early February.
A running cost is defined as any cost that is connected to the Field Office and which is a
shared cost. This means that only costs that are going to be 100% shared between the different
activities related to the specific NFO can be registered on an NFO-activity number. Direct
programme costs are not to be charged via the NFO, and are not considered a running cost.
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If there are cases where it is unclear whether a location should be defined as a NorCross Field
Office or not this should be discussed and decided together with your line manager.
For detailed information on booking, please see the Guidelines on Running Costs; annex 6.9
in the Operational Manual.
Tracking on Type of Costs (cost area) in Agresso- DPF/DPAS: In addition to NFO
(administrative and office costs), NorCross must annually report to Norad and MFA on costs
related to Direct Programme Follow-up (DPF) and Direct Programme Advisory Services
(DPAS). In order to report on these types of costs they must be properly tagged as part of the
accounting. This is also important management information (what is NorCross value added?
How do we use our resources?). Hence these two new attribute values have been established
under category 4 (CAT 4) in Agresso. All running costs related to NorCross Offices are to be
posted via the NFO activity (e.g Service Agreements). All costs relating to Direct Project
Follow-up and Direct Project Advisory Services are to be tagged with DPF or DPAS. We
want you to do this for all activities, indiscriminate of funding source.
NB! Please note that NFO and DPF/DPAS are mutually exclusive. If you post a cost on NFO
do not use DPF/DPAS and vice versa.
 DPF - Activities that are internally oriented i.e. focused on obtaining, developing and
transferring information necessary for NorCross to follow and support the
programmes/projects. Costs spent on NorCross project follow up (e.g. financial
management (NS), PMER, planning, reporting, travels, visits from HQ, RCRC
Movement coordination, analysis of context).
 DPAS - Activities that are externally oriented i.e. focused on providing support and
competence that contributes to improve programme/project impact and capacity of
partner. Costs spent on providing advisory services (technical/thematic, OD, FD, CB,
etc.) to project and NS/IFRC and monitoring.
The above definitions are meant for your guidance. To ensure correct tagging you need to
know the objective of the cost. Please consult with project manager/ office staff etc. if you
need more information.
K. Approved budgets and Eligibility of Costs

Early February the Accounting Unit at HQ will send out an e-mail on the approved original
budget and relevant activity numbers for the year. The e-mail will also include a list of any
funds carried over from one year to the next, as well as the annual repartition of the NFO
triggers (re above). Revised budgets are made once funding is secured. The original budget
and the revised budgets are entered into the budgeting tool (Basware) at HQ based on input
from the Field Office/NS.
Several programmes are financed by co-operation agreements with MFA or Norad. The
agreements give NorCross a certain flexibility to move funds between activities funded from
the same Cooperation Agreement. The overall process of reallocation of funds from one
activity to another and approval of over-spending according to revised budget are managed by
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HQ in August, with input from all regions. This should be followed up with regular forecasts
from September to November.
NB! Be aware of the period for eligible costs – re conditions in grants from
MFA/Norad/ECHO.
Costs should satisfy the following criteria in order to be eligible:
 Be necessary for the implementation of the programme
 Be within the valid period
 Has arisen/been committed to in line with NorCross regulations/guidelines (e.g.
procurement guideline) and donor requirements (e.g. 3 quotations)
 Be properly documented and verified/approved
 Be booked on the correct activity
NB! A governing principle for NorCross accounting is that costs should be booked on the
relevant activity to where the costs actually belong/arise.
The following costs should not be considered eligible:
 Provisions for loss or debt
 Owed interest
 VAT, if exemption of VAT has been obtained.
L. Audit
Each Field Office accounting in Agresso is responsible for appointing a local office auditor.
For NorCross Field Offices the audit will be split in two, with an interim and an annual audit.
The audit is to be carried out according to the Audit Engagement Instructions sent out by
NorCross auditor late August every year (presently BDO Norway). Remember to update the
inventory list before the audits take place, re chapter 8 in the Operational Manual.
Before the audit takes place NorCross personnel is to prepare the Financial Statements
according to C-4.2 “Statement per Project” and C-4.3 “Statement Total” in the Audit
Instructions. The C-4.2 “Statement per Project” report should be identical to the “NorCross
Activity Result Balance” in Agresso, with the exception of agio (806) that should be classified
under income in this report. The C-4.3 “Statement total” report should be identical to the
“NorCross Activity Result Currency”. The only exception is that agio/disagio should not be
included because this is a cash flow report. Please note that a separate enquiry has to be made
for each currency (one at a time). Please see user guidance in annex
A draft of the two statements are to be sent to NorCross HQ for approval by the Adviser,
Accounting Unit, and the Internal Coordinator, International Department before the
interim/annual audit is finalized in the field.
The interim audit is to cover the period up until end August. The interim audit is to be
finalized by November 1st. The intention of this interim audit is to detect wrong postings
before the annual audit takes place in February the following year (by which time the annual
accounts are closed and no corrections/changes can be made).
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The annual audit has to be finish by March 28th of the following year. It is important to
honour this deadline as the accounts of the NorCross Field Office forms an integral part of
NorCross’ consolidated accounts.
M. Accounting principles
M.1. Completeness
To be sure that the accounting system provides a satisfactory basis for the periodical and
annual financial statements both internal and public, all transactions and financial dispositions
have to be accounted completely and all transactions have to be well documented.
M.2. Reality
Financial statements must be based on real dispositions e.g. the existence of purchased goods,
inventory and stocks. Prepayments, advances and other short-term claims must be real.
Accruals have to be done according to generally accepted accounting principles.
M.3. Accuracy
All transactions have to be registered with correct amount and currency, as well as
information on date, reference, classification, codes and descriptive text.
M.4. Updating and frequency

Accounting on a daily basis is important regardless of which accounting set-up you use. It is
much easier to get the job done quickly while you (and your colleagues) still remember the
information relevant to the vouchers. If you get oral information together with your
documents, it is always a good habit to write some key words on the voucher.
The daily accounting in Agresso is important as the budget holders, finance staff, and
management use Agresso to get information. If the accounts in Agresso are not updated the
information will not be reliable and decision taken based on insufficient and incorrect data.
For most monthly reports there is a very short deadline before the books are closed. To be
sure that all transactions for the relevant period are registered and that all transactions are
correct, it is important to set aside enough time both to do the bookings and to check and
reconcile the accounts. This is only possible when the accounting is done on a daily basis and
risk being insufficient if the work is done in the last minute.
For accounting in Excel you have to be up-to-date before you send your Excel file to the
NorCross Field Office or HQ. Specific deadlines are to be agreed with the Regional
Office/HQ and included in the Office Specific Information.
M.5. Documentation
All accounting has to be properly documented. This documentation can be invoices, receipts,
sales tickets etc. All expenses must be supported by original receipts for the right amount and
it must be clear in which currency the document is issued.
Invoices and receipts should have the following characteristics:
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 Be originals.
 Be addressed to NorCross
 Be previously numerated.
 Have the correct company name.
 Have the correct issue date and due date
 Proper description of the purchase and the amount paid, including discount and
total amount if relevant.
 It should not have smudges, corrections or breakages.
It is important that the documentation is understandable. If it is in a language other than

Norwegian or English, key information has to be stated in English or Norwegian (by the
person responsible). The accounting text has to be in English. Contracts or other related
documents must be attached. All documentation needs an issue date.
Any receipts that do not fulfil the general requirements should not be accepted
Transactions such as advances, accruals and corrections must also be well documented. If
there is no document issued, the necessary documentation has to be produced. This
documentation needs to include issue date, explanations, amounts and signature. For
corrections, a reference must be made to the voucher which is being corrected. Remember to
make a cross reference on the voucher you have corrected.
NB! All documentation must be readable in at least 10 years. Some type of receipts has the
characteristic that it fades very quickly and in a few months it is no longer readable. If you
suspect or experience this, you have to make a copy of these receipts and attach it to the
original.
M.6. Traceability
It is a principle in the Norwegian Accounting Act that all transactions should be traceable
from voucher to annual statement and from annual statement down to the single transaction.
To make this possible it is important that you write the account, the cost centre and the
activity number on every voucher that is being posted. It is also important that you write down
the transaction number on the voucher when you post in Agresso. If you post in Excel, you
have to make a transaction number for each transaction at the Excel sheet and write the same
number at the voucher.
For corrections it is important that you remember to write on the original voucher that it is
corrected and the transaction number for the correction. This will prevent you from doing the
same corrections several times (should you forget that you have already made the correction).
NB! The annual financial statements must be documented with a print-out from Agresso that
shows the basis for the figures.
M.7. Filing
All accounting and supporting documentation has to be filed properly and, according to the
Norwegian Accounting Act, be kept for 10 years. Be aware that for some countries the
requirements for keeping the documentation can be more than 10 years.
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Documentation has to be filed in a letter file or letter box sorted by transaction numbers. The
files and boxes have to be properly labelled with its content. It is best to store them in a book
shelf in a dry place so it will not be damaged.
If your accounts are to be audited in Norway, all files have to be sent to HQ in good time. If
you have a local audit you should keep your books locally until the audit is finished.
Depending on the set-up for the office, some office will keep the files locally and some will
send them to HQ. Contact HQ if you do not know if you should keep them locally or not.
M.8. Secure keeping

All vouchers must be kept and secured in such way that they do not get lost or can be illegally
changed or replaced.
M.9. Cash basis accounting vs. accruals principle accounting

According to the Norwegian Accounting Act, the accounting should be done according to the
accruals principle. This is the norm for NorCross HQ. In the Field Offices however, NorCross
mostly use cash based accounting to register invoices and other short-term debt. This is
mainly because many transactions are paid by cash and as such should be registered at a cash
based accounting. It is also because of the impracticality of an accrual based accounting
where account payable transactions in different currencies have to be balanced both in
currency and in NOK when payments are done. It is however important that major expenses
are accrued by the period and year ending. (Re Accruals)
N. Cash requests and cash flow

Every four months (or as otherwise agreed or needed) a forecast is to be made based on the
budgeted/expected expenses, for the relevant upcoming period and sent to HQ .The cash
request should specify present balances, cash needs and major planned purchases (with the
necessary sub-documentation re procurement guideline). Once the cash request is finalized it
should be signed by Regional/Country Representative and sent to HQ. The cash request
should be followed by an updated, signed report from Agresso for the cost centre (report:
Utland-restmidler Rev Budsjett).
To ensure liquidity the cash request should be sent on time to avoid really urgent transfers.
Remember that the handling time at HQ may take up to two weeks due to validation and
approval procedures.
To ensure a forecast of expenses and committed costs a cash flow overview has been
developed. The template can be adjusted to the needs of each office. The overview may be
attached to the cash request.
The transfers from HQ are not earmarked to any specific project or activity. The funds are to
be spent according to the cash request and any approved reallocations.
In cases where the Field Office handles cash requests from local partner’s appropriate
approval and authorisation procedures should be put in place. All such cash request should be
signed by the National Society and be followed by an updated financial report showing how
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previously sent funds have been used. Upon receipt from NS NorCross finance staff and
representative revises, approves and co-signs the cash request (re plan, budget and available
funding) and transfer note before it is sent to HQ.
NB! Please be aware that cash requests for transfers to NS are earmarked and can only be
used for the relevant activity.
O. Transfer of Funds from HQ

Transfer of funds from HQ has to be posted according to set-up.
O.1. Accounting in Agresso

For each NorCross Field Office, NorCross Accounting Unit will establish a specific general
ledger account for bank transfers in the NorCross balance (group 19). There will be one
general ledger account for each currency used.
Transfers from HQ to offices using Agresso is debited HQ at the general ledger balance
account for the Field Office bank account and credited HQ bank account. Since this is already
registered at HQ: Do no register it again. It is already done! Check in Agresso that the
registered amount is the same as you have received at your bank account. Be aware that bank
fees and other expenses related to the transaction can occur and this you have to register.
It is very important that you never post any income of funds transferred as the Field Office
accounting is a part of the HQ accounting system. NorCross HQ do not expense the money
transferred to the Field Office and the Field Office shall not income them. Transferred funds
can only be used according to the cash request or other approval from HQ, but the funds are
not earmarked for any activities as such.
O.2. Accounting in Excel

Transfers shall only be registered in the cell “Transfers from HQ”. This Excel-cell is found in
the heading of the accounting Excel template. It is important for the control mechanism in the
accounting sheet that you fill in transfers in the period you are accounting for in this cell and
no other places.
P. Routines and working habits

All registrations in Agresso must be entered in Norwegian or English. This is in accordance
with the Norwegian Accounting Act and no exceptions are allowed.
P.1. Booking in open periods

When opening a fiscal year in Agresso, all periods (months) for this year will be
simultaneously opened for accounting. The periods will be closed according to the deadlines
for each month. Transactions do not necessarily have to be registered chronologically in
Agresso. They can be randomly registered in all open periods. Be aware that you still have to
file the documentation by transaction number and not by the period in which it is registered.
P.2. Signatures and authorisation
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Before you register transactions in the accounting system, be sure that all vouchers and
documents have the necessary signatures and authorisations according to the “Regulations for
Financial Control in the Norwegian Red Cross”. This may include special approvals from HQ.
NB! This also applies for vouchers for minor amounts, settled with petty cash.
P.3. Vouchers which are not yet registered

When you receive vouchers or other documents for accounting, you should always keep them
in a letter file or a box. You should have one letter file for unpaid invoices and another one for
vouchers paid and ready for accounting. Vouchers which have not yet been registered should
be kept in a safe or locked down overnight in the office. Vouchers that are not yet registered
can be of great value for someone who wants to get an unjust refund. This is also a good
reason for doing the daily accounting.
P.4. Currency and exchange rate

The key currency in Agresso is NOK. All transactions registered in different currencies will
automatically be calculated into NOK according to the Agresso Currency Rate Register with
the actual rate at the transaction date.
Agresso has a register for currency and exchange rates. Exchange rates for all main currencies
are automatically updated on a daily basis. “Exotic” currencies are updated weekly or
monthly, depending on how often it is updated in the Norwegian bank, www.dnb.no
When posting, the right exchange rate will automatically be set according to the transaction
date. As the exotic currencies are updated manually we recommend that you do regular
control checks to ensure that the converted amount looks realistic according to the official
rate.
An enquiry for the exchange rates used can be found in Agresso under “Agresso
Common/Exchange rate/Exchange rate enquiry”. Fill in a value date, and the currency for the
account and currency rate in NOK will be shown. See picture below.
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The exchange rates used in Agresso can be found at DnB website.

For the daily currency rate - follow this link or you can use the currency converter
For main international and historical currency rates - follow this link
For exotic currency rates - follow this link
NB! If corrections have to be made, it is important to use the same currency rate as the
original posting. This can be done by using the same date as the original posting or to overrule
the currency rate. If not it will cause a difference in NOK.
When you do corrections we recommend that you use Excel and read the postings into
Agresso. You can do this by copying the amounts to be corrected from Agresso and into
Excel, and reverse the debit/credit.
Most accounts can be used for all currencies. Balance accounts, like bank and petty cash, have
a fixed currency. Most advance and accrual accounts have mandatory optional currency. Be
aware that currency rates can be an issue when budgeting and reporting.
ECHO has special regulations when it comes to currency rate. If you have projects financed
by ECHO you might need additional information from HQ when it comes to the currency
rate.
When accounting in Excel all transactions have to be registered with currency code in the
column for currency. The amounts will be calculated to NOK when registered in Agresso. If
you register your accounting in Excel, you do not need to worry about currency rate.
P.5. Agio/disagio and currency differences

Agio/exchange gain and disagio/exchange loss is defined as: the difference between the
nominal and actual values of a currency.
Currency differences occur as a consequence of all transactions in Agresso being converted to
NOK. Some of these are defined as a real agio/disagio whereas others are system generated.
Agio/exchange gain should be posted under 8060. Disagio/exchange loss should be posted
under 8160.
When expenses are posted in other currencies than NOK, using accrual based accounting; an
agio/disagio will occur when a payment is registered at a later time than the invoice – and
because of that with another rate. The difference between the amount expensed in NOK and
the NOK value of the payment should be posted on the same cost centre and activity code as
the original posting. For accounting in Field Offices this will occur only when the accrual
principle is used. (include example)
(Remember to check the NOK value of the balance posting of the original expense in order to
use the same value on the balance account and calculate agio/disagio).
Currency difference occurs in exchanges between hard currency and local currency because
both currencies are calculated into NOK as the principle currency in Agresso. These
transactions have to be posted individually for each transfer and debited and credited the
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corresponding general ledger accounts with the right amount according to bank receipt or
bank statement. Such postings will almost always cause a difference between debit and credit
in NOK. The exchange rate or amount has to be overruled in order not to get such differences.
(example)
All balance accounts in foreign currency will be recalculated in Agresso as per 31st December
(i.e. primo February when the Fiscal year is closed) according to the Norwegian bank
currency rates as at 31st December. Be aware that these rates can differ from the rates
registered in Agresso for 31st December. This happens because the update of exchange rates
in Agresso needs a manually activation.31st December is usually a day off for all employee at
HQ and this activation will usually not be done before January 2nd. Recalculations will be
done from HQ and will only be seen in the NOK column at the accounts. It will not influence
the currency amount in the account.
Please note that the above recalculations are, in practical terms, done by the Accounting Unit
at HQ as the very last posting before closing of the year. The closing of the annual accounts is
only done in early February. Hence the financial statements for the annual audit cannot be
prepared before this posting is done.
P.6. Bank management and check book

Bank transactions are posted in Agresso after the payment vouchers have been prepared and
approved accordingly. By the 10th of every month a reconciliation between Agresso and the
bank statement is to be made in line with the given template see P.16 Reconciliation
Any difference between Agresso and the bank statement must be identified. This could for
instance be due to payments made but not withdrawn or a payment/income received that have
not been posted into the system. Any difference should be pointed out in the reconciliation
template. The reconciliation report is to be signed by the finance delegate and approved by the
NorCross representative, scanned and sent to Accounting Unit at HQ. Remember to file the
original report.
If you have a check book, always update check book register when check is used. The register
should state recipient, date and amount. Remember always to take a copy of the check.
Cheque books should always be stored in a secure place, preferably a safe. Cancelled cheques
should be retained and should not be thrown away or otherwise destroyed. Blank cheques
shall never be signed.
NB! Be aware of unclaimed checks when you reconcile the bank account.
P.7. Petty cash

Petty cash should be maintained on an imprest basis which means that the petty cash should
contain a fixed amount consisting of cash, advances and vouchers. The sum of these should
always be the same. Petty cash has to be filled up when the cash has reached a minimum. It
must be filled up with the exact amount of the vouchers in order for the maximum level
always to be the same. This makes the petty cash easy to control and check.
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ledger account for petty cash in the NorCross balance (group 19). There will be one general
ledger account for each currency used.
Petty cash has to be counted by two persons on the last day of every month. Reconciliation
between Agresso and the petty cash report has to be done monthly and signed by the two
persons that have counted the petty cash. The signed confirmation has to be sent to the
Accounting Unit at HQ.
All Field Offices must have written routine description for petty cash and payments with cash.
This must contain a detailed description of who has authority and responsibility for the cash
and the payments, and may state the limit for the maximum amount of petty cash to be held in
the Field Office. This routine description is done in the Office Specific Information document.
Security and operational considerations should be considered before a decision is taken
whether or not to state a petty cash limit in this form.
NB! Be aware that there must always be a voucher for each cash payment and the receiver of
each cash payment must always sign that the cash is received. Never pay out cash to another
person than the one who are the actual receiver.
P.8. Payments
All payments have to be approved according to “Regulations for Financial Control in the
Norwegian Red Cross” (Chapter 3). Payments should be made using the safest method
available in each location. The preferred payment methods, in decreasing order of preference
are as follows:
 Electronic payments – in those offices where an electronic banking arrangement has
been entered into.
 Bank transfers
 Bankers’ drafts (crossed)
 Cheques (crossed)
 Cash – should only be used as a last resort for small payments (according to maximum
amount stipulated by each Field Office).
Once paid/accounted for the voucher should be stamped with the “PAID by NorCross” stamp.
Payments for goods and services should not be done before it has been verified that the goods
or services are received as agreed. It must be confirmed that the goods is received in store or
services delivered in accordance with contracts.
Payments should be done in accordance with the written routine description for bank transfers
and payments for each office. This description must contain a detailed overview of who has
authority and responsibility for the transfers and payments. The description should refer to
templates and forms used for payments. If internet banking is used, it should also be a detailed
step-by-step description of the routine. These descriptions are done in the Office Specific
Information document.
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Copy of all documents for manual payments or printout from internet payment must be
attached to the voucher before accounting.
P.9. Salary for local staff

NorCross hires local staff through the Federation, the ICRC or the National Society and never
contract them directly with NorCross. When hiring, a Terms of Reference should be made for
each position which will provide the basis for the contract, specifying conditions regarding
the position, timeframe, salary level, holidays (in accordance with local law), invoicing (if
relevant), and other pertinent information.
For local staff for which NorCross covers the salary costs a copy of the Contract, Job
Description, Terms of Reference, and Salary Letter(s) must be available in the personnel file.
For salary costs, the approved timesheet, specified time period or approved vacation, as well
as documentation for any reimbursements to be accounted for by NorCross must be attached
to each voucher.
The invoices from the Federation/ICRC/NS should specify time period, gross wage, social
costs, insurance and net wage. If salary for local staff is not paid by the Federation/ICRC or
NS, NorCross should preferably pay salaries via internet banking.
P.10. Salary advances

Salary advances can be given only to delegates and in agreement with the Accounting Unit at
HQ. Salary advances are usually not paid out locally, but exceptions can be made in
agreement with HQ. These advances shall never be related to DSA/per diem. Salary advance
given out in the field are to be reported to HQ monthly.
Salary advances are to be posted at account 1384. This account requires an employee number
when posting in Agresso. 13xx accounts can be used for all currencies. These advances will
be reported to NorCross payroll office and deducted from the next salary. 13xx accounts will
be liquidated in Agresso at HQ level, not at Field Office level.
NB! Be aware that when accounting in Agresso, you have to report salary advances as an
expense in your audit statement C-4.3.
P.11. DSA/per diem

The DSA is intended to cover expenses for meals, taxies, newspapers, refreshments etc.
NorCross follows the IFRC rates (high, medium, low) as specified for each country. DSA/per
diem will be calculated and paid out from HQ. DSA/per diem shall never be paid out locally
to staff that get their salary paid from HQ. Non-expats/local staff cannot receive per diem, but
allowance can be given. Allowance has to be accounted as travel expenses.
P.12. Working advance

Working advances can be given both to delegates and to local employees for purchases and
travel expenses. The working advance should be within the threshold set for the said Field
Office.
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ledger account for advances in the NorCross balance (group 17). There will be one general
ledger account for each currency used. When accounting in Agresso working advances are to
be posted at the specific 17xx account. Working advances must be reconciled and specified
every month. Previous working advance must be liquidated before new advance can be paid
out. 17xx-accounts are established with fixed currency. Be aware that advances have to be
liquidated in exact amount both in local currency and in NOK.
The holder of the working advance has 3 working days to hand in the expense report after the
completion of the mission/purchase the working advance was meant for. The expense report
must contain all the supporting documents and any remaining cash. Each receipt must be
glued to a piece of paper and ordered by date. Each receipt should have a written explanation
and reason for the expense in English. Any expenses for meetings, such as food and drinks,
should specify the number of people who attended and be accompanied by a signed list of
participants. Non-eligible costs and improperly documented costs cannot liquidate the
working advance and the holder will still be responsible for this amount until satisfying
explanation and documentation is received.
P.13. Accruals
For most NorCross Field Offices, NorCross Accounting Unit will establish a specific general
ledger account for accruals in the NorCross balance (group 24).
Accruals for substantial expenses which are not yet invoiced have to be done by the end of
tertiary and the end of the year. Remember to reset accruals in the beginning of next
period/year and to post agio/disagio.
Accruals in regards to supplementary services invoices from the Federation will be handled at
HQ. NorCross offices which have a supplementary service agreement with a National Society
are themselves responsible to ensure relevant accruals.
P.14. Purchases
All purchases funded by Norwegian funds should observe NorCross “Procurement Guidelines
in the Field”. Reference is made to Chapter 8 in the Operational Manual, the Procurement
Guidelines themselves (8.2), and the corresponding templates. The Procurement Guidelines
give detailed information on required documents and procedures. Contracts or purchases
should not be divided in order to avoid specific requirements within the Guidelines. Before
paying make sure to control the following:
 That the calculations of the invoice are correct (prices, quantity, arithmetic operations,
etc.) and in accordance with the purchase order and/or contract.
 That Proof of Receipt of Goods is given - in case of purchases from suppliers
 That the quantity received matches those stated in the invoice. This can also be done
through a Goods Received Note (GRN) from the person receiving the goods.
Purchase expenses should have the following documentation attached:
 The purchase order, contract or cash request for the expense or advance
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 The original invoice or expense claim; a receipt of payment

 The relevant quotation (from the three quotations) for purchases/services between
5.000 – 50.000 NOK (or equivalent in local currency).
 The Comparative Bid Analysis for the three quotations between 5.000 – 50.000
NOK (or equivalent in local currency).
 For purchases above 50.000 – NOK please see the Procurement Guidelines for
other documentation required.
 Signed exemption form (when relevant)
 Documentation related to advance given/settled (if relevant)
 For Service Contracts: Contract and invoice, and if relevant with the PAID stamp
or Official Cash Receipt.
Part payments (according to contract or supply) must be clearly marked in such a way that
they can be traced to the contract (re. traceability). In operations with several large contracts a
system must be put in place in order to ensure the relation between payments and contracts.
This is to avoid overpayment.
Receipts must be given by the provider of the service. In the event that this is not possible,
you must fill in an evidence of expenditure form. These expenses must be within the threshold
set for the Field Office. The form must specify in detail the costs incurred (e.g. the number of
meals provided or the number of items received, taxi service, etc.). The form should be signed
both by the person who received the money and the person who paid the money.
Workshops, meetings and representation: When accounting for these costs make sure to
use the proper accounts for each type of expenses. Travel costs are to clearly state who
travelled and the distance travelled. Invitations, programs/agendas and participation lists
should be attached when relevant. Upon purchase of food or when refunds for meals are given
the recipes/documentation should clearly specify who attended the meal.
Major purchases (when invoiced) are preferably to be paid from Oslo. This is to avoid agio
income/costs connected to transfer of funds and reduce risk of possible exchange loss. The
booking can however be done in the Field Office although it is paid from Oslo. (HQ can book
these expenses directly from Oslo too, if that is practical).
NB! Be aware that the latter might lead to some challenges when it comes to reconciliation. If
in doubt, ask for advice from HQ Accounting Unit.
P.15. Assets and inventories

According to the Norwegian Accounting Act all purchases of goods/assets with a value of
more than NOK 15.000 and a durability more than 3 years should be classified and posted as
fixed assets and be depreciated periodically.
In the international programmes NorCross will however never classify these as fixed assets
and depreciate them. This is partly because it is difficult to estimate durability in the field and
partly because NorCross reports these as expenses to the back-donor. Assets will mostly be
posted to accounting group 63, 64 and 65.
24
Updated April 2016
Based on the above it is important that NorCross at all times has full control over the
assets/inventories in the Field Offices and the delegate’s residence and that inventory is
regularly conducted. All equipment purchased should be entered into the inventory list and be
labelled with the NorCross inventory code. Goods should be insured – and payment of the
insurance should be part of the project budget/accounts.
For goods purchased with Norwegian funding for National Society programmes NorCross
should ensure that the goods are entered into the National Society assets list and managed and
depreciated according to their procedures.
Income from sales of assets purchased with NorCross funds shall always be credited to the
said programme. If the programme is ended the funds may have to be returned to NorCross
(re MFA/Norad requirements).
NorCross inventory list is to be continuously updated and reported to HQ twice a year (primo
January and August) before the interim and the annual audit. Please see the template in the
Operational Manual.
NorCross ERU equipment stored at IFRC regional warehouses (presently in Kuala Lumpur,
Panama City, Nairobi (and Dubai)) should be monitored and stock taken as of 31.12. This is
to include quantities, descriptions and unit prices. These stocks are presently accounted at
account 1468 in Agresso.
P.16. Reconciliation
It is important that reconciliation of all balance accounts is done every month and bank
statements are sent to HQ Accounting Unit together with the reconciliation by the 10th of
every month. The reconciliation must be done according to the templates set up by the
Accounting Unit at HQ and clearly explain differences. All reconciliations are to be
controlled and signed by the Regional Finance Manager/Country Representative. In case of
non-liquidated postings action has to be taken. For the closing of the annual accounts, there
will be a specific deadline. This will be announced by the Accounting Unit at HQ.
P.17. Supplementary services invoices in Ibistic and splitting of costs

An integration agreement has to be signed with the Federation when NorCross works under
their legal basis. In order to determine what services are requested from the Federation a
Country Request Form has to be filled out by each office specifying services to be provided.
This is the basis for the IFRC supplementary services invoices. NorCross field personnel are
to verify and approve the supplementary services invoices received from HQ on a monthly
basis. Some NorCross offices work under the legal umbrella of the NS. In these cases such
invoices will come from the NS.
Upon receipt, the invoice must be reviewed and the legibility of each amount verified. IFRC
is to be requested if further supporting documents are needed. If any error or mistakes are
discovered, a correction claim should be sent by e-mail to the IFRC finance person. In the
next month’s invoice make sure that the IFRC has made the proper corrections as requested.
25
Updated April 2016
The invoice should be split in Ibistic according to type of costs and charged to the correct
account, cost centre and activity number. Make sure you get the necessary input from the
NorCross Finance Manager on what activity number each cost should be charged to.
The supplementary service invoice usually includes three types of costs; direct costs (e.g.
shared offices and services (SOSC)) direct third party costs (e.g. bank charges, delegate
housing, national staff, and salary), and indirect costs (PSSR). The latter should be charged to
account 6762. National Society staff salary should be posted to account 5973. Bank charges
should be charged to account 7770.
Q. Closing procedures
NorCross financial reports are done monthly, tertiary (every fourth months), and annually.
The level of reporting varies with the highest level for the annual report. Deadline for closing
of the books will be announced by the Accounting Unit. The deadline will vary depending if it
is a monthly, tertiary or annual report. For the monthly reports the deadline is very short and
the last posting is usually by the 2nd or 3rd in next month. The following procedures have to
be observed:
Monthly and tertiary
 All postings for the period has to be done
 Result and balance need to be controlled
 Reconciliation of bank account, petty cash, advances and accruals
NB! Before the monthly closing, please check that you have posted bank fees, interest etc.
Annually
 Reconciliation of all balance accounts
 Check income and expense accounts
 Check result of activity
 For NorCross funds, the interests should not be treated as part of the funds for the
operation. The interests should be registered as an income and classified as financial
income class 8
Please note: In some instances NorCross HQ might want to do some corrections on your
accounts. In that case NorCross HQ will either do the postings with your transaction type and
send you the voucher by mail or ask you to do the correction.
At end of year closing we recommend that you check if there should be any transactions with
another transaction type than the attribute value for your Field Office Code.
Q.1. Accounting in Agresso

You can post until deadline. Be aware of the time difference between Norway and your
country. Reconciliations are to be sent to the Accounting Unit at HQ as soon as possible after
deadline.
Q.2. Accounting in Excel
26
Updated April 2016
The Excel file has to be sent by e-mail to Regional Office/HQ according to set deadlines.
Hence it is important that you are up-to-date with the accounting before the end of the month.
It might be that you do not get the last transactions and bank fees posted before you close, but
it is much better that these transactions get posted next month rather than Regional Office/HQ
not getting the file before the monthly books are closed. In that case none of that month’s
transactions will be posted in Agresso. Offices that have very few transactions per month may
have permission to send their accounting sheet every second or forth month. This has to be
agreed with HQ Accounting Unit. The accounting documents have to be sent to Regional
Office/HQ with DHL or other equivalent transport agency as soon as the month is closed.
Reconciliations are a part of the Excel file, and bank statements have to be sent to Regional
Office/HQ as soon as they are ready from the bank.
R. Reporting
As soon as the books are closed the reporting will take place at HQ (monthly, tertiary, or
annual). The Regional Finance Managers comment on the status/deviation at activity level.
The report is reviewed by NorCross’ management for control and comments.
The Regional/Country Representative should monthly be presented with the financial report
for the Field Office based on the standard report in Agresso. NorCross representatives usually
have access to WebInfo and can themselves produce a WebInfo report. WebInfo gives a quick
predefined report. Beware that WebInfo is only updated every night, and therefore postings
done will not show before the next day. As an accounting person we strongly recommend that
you use the Agresso inquires when providing reports to the NorCross representatives. The full
version of Agresso will give you a much more flexible and informative report. Agresso
general ledger transactions updates immediately, while balance tables takes 3-5 minutes
before they are updated.
Agresso has several standard predefined reports and enquiries. They are found under
“Agresso financials/General ledger/Enquiries/Balance tables/”. The reports can be set up per
Field Office Code or jointly for Field Office/HQ. The most relevant standard reports are:
Utland-restmidler Rev Budsjett: This report gives the sum totals for revised budget, income
and expenses per activity, as well as the financing of these. This report is suitable for the
monthly report to be presented to the Reg/Country Rep.
Utland –forbruk/restmidler: This report gives the full information on income and expenses
per activity.
Field report (Utl restmidl): This report gives the full information on income and expenses for
the portfolio of the activities per Field Office Code. When you use this enquiry you have to
select the relevant currencies for your field office. Be aware that you can only set up the query
for one currency at a time.
If you need reports other than the standard field report, HQ can help design reports/enquiries
for different use.
27
Updated April 2016
Offices accounting in Excel sheet have to require financial reports from HQ.
S. Closing of Field Office
Meeting should be adjourned when a decision is taken to close a Field Office. The
Accounting Unit is to take part. The need for a project visit is to be considered based ont he
complexity of the setup. Preparations should be started as soon as possible. For issues that has
to be considered see the Exit Checklist.
--- 000 ---
28
Updated April 2016
EPILOGUE
T. Epilogue on the Norwegian Act of Accounting

The Norwegian Act of Accounting as well as the Bookkeeping Act has a number of
regulations. Here is a brief introduction to the main rules and regulations (in italics):
T.1. Obligation to keep accounts

Foreign enterprises engaged in activity in Norway or on the Norwegian Continental Shelf and
who are liable for tax in Norway, have a statutory obligation to keep accounts, cf. the
Accounting Act section 1-2. Enterprises with an obligation to keep accounts must prepare
annual accounts and an annual report each financial year; cf. the Accounting Act section 3-1.
The Bookkeeping Act applies to all enterprises and persons that are obliged to keep accounts
pursuant to the Accounting Act cf. the Bookkeeping Act section 2. Transactions that are
material to the assets, liabilities, income and expenses of an enterprise, with an obligation to
keep accounts, must be registered in an accounting system. The accounting system must
specify all the registered information on which the amounts in the statutory reporting are
based. The registration shall include all information that is material to the preparation of the
annual accounts and other financial reporting that follows from the law or regulations.
T.2. The Accounting Act chapters 3 to7

The Accounting Act chapters 3 to 7 deal with annual accounts and annual reports,
fundamental accounting principles and generally accepted accounting practice, rules for
valuation, the profit and loss account, balance sheet, cash flow statement and notes. For
enterprises that have their taxes assessed by the Central Office - Foreign tax Affairs, statutory
financial reporting includes the form RF-1045 Extract of Accounts. It is important that the
accounting system is organised in such a manner that it enables this form to be filled in
correctly.
T.3. Auditing
The Auditors Act contains detailed provisions concerning the auditing duty, the authorisation
of auditors, the duties of auditors and the requirements that apply to the performance of the
auditors’ duties.
According to this Act, all foreign enterprises with a statutory obligation to keep accounts
pursuant to the Accounting Act are obliged to have a Norwegian auditor (a registered public
accountant or state authorised public accountant) according to the Auditors Act section 2-1.
The obligation to have a Norwegian accountant does not apply if the operating revenue
(which is liable for tax according to Norwegian domestic law) is less than NOK 5 million. If
the operating revenue exceeds NOK 5 million an obligation to have a Norwegian accountant
applies the year after their revenues exceed the amount mentioned.
29
Updated April 2016
U. Epilogue on Donors
Special issues with regards to accounting of funds from MFA and Norad and EU.
Knowledge on the funding source for each project is necessary in order to account correctly.
Make sure you always know the revised budget, the funding source and the requirements
attached to the funding for each activity.
U.1. Norad funded projects: (re chapter 13 in the OM)

The accounting of Norad funded projects, have the following characteristics:
 Norad requires a minimum of 10% own funding in all projects.
 Funds can be reallocated between the programmes under the Cooperation Agreement
between Norad and NorCross, based on availability and needs.
 Forecast: In September through November a forecast for the estimated expenditures of
the annual grant is done at HQ. Your input may be requested. This is in order for the
HQ to make necessary reallocations between projects funded by Norad. Both
anticipated over- and under- expenditure must be reported to HQ at the earliest
convenience (for instance in connection with the cash requests) in order to do the
necessary funding and budgeting reallocations in time.
 Internal reallocations between budgets in two or more Norad funded projects can be
done in the field as long as the sum total of the relevant budgets is not altered. HQ
must still be informed, as it is only at HQ levels that corrections with regards to the
financing part shall be made.
U.2. MFA funded projects: (re chapter 12 in the OM)

MFA funding is either based on multi-year agreements or single grants. For multi-year
agreements a multi-year contract is signed. Single grants from MFA are valid for 12 months
from the date of the grant. If the project has started the implementation before the grant is
given, the grant can cover expenses that have already been charged to the project (e.g.
amounts advanced from own funds) as long as it is relevant to the application/happened after
the start of the operation to which funding was sought. The accounting of MFA funded
projects, have the following characteristics:
 No own funding is required by the MFA. Exceptions can be made.
 The grant from MFA is linked to the activity number, which reflects the year the grant
was received. Sometimes grants are received towards the end of the year and therefore
run from one year to the next. This means that MFA funds can be partly spent in one
fiscal year and partly in the next.
 At the end of the year, any unused MFA funds are carried over to the next year. A
budget must be made (at HQ) for the exact amount of the balance carried over. The
activity number remains the same as in the previous year and is linked to this funding
until it is fully spent (hence there can be a 13 activity number open for accounting in
14).
30
Updated April 2016
U.3. EU funded projects: (re chapter 14 in the OM)
1. DG ECHO (Humanitarian Aid):

DG ECHO projects are normally between 3 and 15 months. When implementing a project
please stay in close contact with DG ECHO Technical Assistant in the field and NorCross HQ
(geographical desk) in case of changes relevant for the project as it has been approved by DG
ECHO (including changes in budget). NorCross senior adviser on EU can be consulted on a
general level.
 Normally DG ECHO requires own funding of minimum 15%
 For urgent decisions ECHO may grant up to 100% funding
 The implementation period of an ECHO project is limited by the implementation
period of a financing decision (ref. manual).
 DG ECHO may allow for flexibility for adjustments in budget between budget lines
and/or between activities as long as the total direct costs remain unchanged. All
changes in budget are subject to prior agreement with NorCross HQ and DG ECHO.
 Please note that all invoices related to the ECHO project (even in case of co-funding)
must be clearly marked and filed.
 The Agresso/NS voucher text should be stated in English.
 In all correspondence with DG ECHO the ECHO project code must be mentioned.
2. EuropeAid (Development Aid)
 For development projects the European Commission always requires own funding
 Multi annual framework/projects
 European Commission delegation in the field often manages the allocation of
resources.
31
V. Epilogue – Currency balance accounts for NorCross Field Offices
Cost Field
Account Description Norwegian Description English Bank Account No. Curr.
centre Office
ASIA (Omar Kayani)
Afghanistan (Nooria Hussaini)
17727 Forskudd Afghanistan AFA Advances Afghanistan AFA 523 HT AFA
19025 Kasse Afghanistan USD Petty Cash Afghanistan USD 523 HT USD
19026 Kasse Afghanistan AFA Petty Cash Afghanistan AFA 523 HT AFA
19275 Bank Afghanistan USD Bank Afghanistan USD 0528102008662500 523 HT USD
19276 Bank Afghanistan AFA Bank Afghanistan AFA 0528101008662501 523 HT AFA
Pakistan (Anam Wahab)
17782 Forskudd Pakistan Advances Pakistan 523 HP PKR
19078 Kasse Pakistan Jacobabad Petty Cash Pakistan Jacobabad 523 HP PKR
19079 Kasse Pakistan Jamshoro Petty Cash Pakistan Jamshoro 523 HP PKR
19081 Kasse Pakistan Islamabad USD Petty Cash Islamabad USD 523 HP USD
19082 Kasse Pakistan Islamabad PKR Petty Cash Islamabad PKR 523 HP PKR
19083 Kasse Pakistan Karachi PKR Petty Cash Pakistan Karachi PKR 523 HP PKR
19281 Bank Pakistan USD Bank Pakistan USD 05 8601739 02 523 HP USD
19282 Bank Pakistan PKR Bank Pakistan PKR 08 8601739 09 523 HP PKR
24097 Avsetninger Pakistan Accruals Pakistan 523 HP n/a
Vietnam (Nguyen Duy/Nguyen Giang)
17748 Forskudd, Vietnam VND Advances Vietnam VND 531 HV VND
19048 Kasse Vietnam VND Petty Cash Vietnam VND 531 HV VND
19248 Bank Vietnam VND Bank Vietnam VND 90000908402 531 HV VND
19249 Bank Vietnam USD Bank Vietnam USD 37000908401 531 HV USD
24048 Avsetninger Vietnam VND Accruals Vietnam 531 HV VND
ASIA - Recovery
Philippines (Jem Escatron)
17767 Forskudd Filippinene PHP Advances Philippines PHP 531 HD PHP
17768 Forskudd Filippinene USD Advances Philippines USD 531 HD USD
19007 Kasse Filippinene PHP Petty Cash Philippines PHP 531 HD PHP
19008 Kasse Filippinene USD Petty Cash Philippines USD 531 HD USD
19287 Bank Filippinene PHP Bank Philippines PHP 004530186450 531 HD PHP
19288 Bank Filippinene USD Bank Philippines USD 104530184660 531 HD USD
24098 Avsetninger Filippinene Accruals Philippines 531 HD n/a
Nepal (Suman Khatri)
17729 Forskudd Nepal NPR Advances Nepal NPR 531 HR NPR
17730 Forskudd Nepal USD Advances Nepal USD 531 HR USD
19031 Kasse Nepal NPR Petty Cash Nepal NPR 531 HR NPR
19032 Kasse Nepal USD Petty Cash Nepal USD 531 HR USD
19231 Bank Nepal NPR Bank Nepal NPR 01000687412 531 HR NPR
19232 Bank NepalUSD Bank Nepal USD 01000687455 531 HR USD
24032 Avsetninger Nepal Accruals Nepal 531 HR n/a
2743 Merverdiavgift Nepal Tax Nepal 531 HR NPR
32
Updated April 2016
MENA (Rana Kabalan)

Lebanon (Lody Mahfoud)
17738 Forskudd Libanon LBP Advances Lebanon LBP 522 HO LBP
17739 Forskudd Libanon USD (John Wanyoro Kibua) 522 HO USD
19038 Kasse Libanon LBP Petty Cash Lebanon LBP 522 HO LBP
19039 Kasse Libanon USD Petty Cash Lebanon USD 522 HO USD
19238 Bank Libanon LBP Bank Lebanon LBP 0140118698900 522 HO LBP
19239 Bank Libanon USD Bank Lebanon USD 1140118698900 522 HO USD
24038 Avsetninger Libanon Accruals Lebanon 522 HO n/a
Yemen (Lody Mahfoud)
17740 Forskudd Yemen YER Advances Yemen YER 522 HY YER
17741 Forskudd Yemen USD Advances Yemen USD 522 HY USD
19040 Kasse Yemen YER Petty Cash Yemen YER 522 HY YER
19041 Kasse Yemen USD Petty Cash Yemen USD 522 HY USD
19240 Bank Yemen YER Bank Yemen YER 0002-311556-001 522 HY YER
19241 Bank Yemen USD Bank Yemen USD 0002-311556-002 522 HY USD
24040 Avsetninger Yemen Accruals Yemen 522 HY n/a
Syria (Lody Mahfoud)
19037 Kasse Syria SYP Petty Cash Syria SYP 522 HZ SYP
19236 Bank Syria EUR Bank Syria EUR 0080498358EUR003 522 HZ EUR
19236 Bank Syria SYP Bank Syria SYP 0080498366SYP003 522 HZ SYP
Cost
Account Description Norwegian Description English Bank Account No. Curr.
centre
AFRICA (Ingrid Kristiansen)
Kenya (John Wanyoro Kibua)
17716 Forskudd Kenya KES Advances Kenya KES 521 HK KES
17717 Forskudd Kenya USD Advances Kenya USD 521 HK USD
17719 Forskudd Kenya USD Advances Kenya USD 521 HK USD
19013 Kasse Kenya KES Petty Cash Kenya KES 521 HK KES
19014 Kasse Kenya USD Petty Cash Kenya USD 521 HK USD
19265 Bank Kenya KES Bank Kenya KES 0104210007 521 HK KES
19266 Bank Kenya USD Bank Kenya USD 0104210015 521 HK USD
24093 Avsetninger Kenya Accruals Kenya 521 HK n/a
Sudan (John Wanyoro Kibua)
19021 Kasse Sudan USD Petty Cash South-Sudan SSD 521 HS usd
19023 Kasse Sudan SDG Petty Cash South-Sudan USD 521 HS sdg
South-Sudan (John Wanyoro Kibua)
17720 Forskudd Sør-Sudan SSD Advances South-Sudan SSD 521 HL SSD
17723 Forskudd Sør-Sudan USD Advances South-Sudan USD 521 HL USD
19017 Kasse Sør-Sudan SSD Petty Cash South-Sudan SSD 521 HL SSD
19018 Kasse Sør-Sudan USD Petty Cash South-Sudan USD 521 HL USD
19273 Bank Sør-Sudan USD Bank South-Sudan USD 0200000010862 521 HL USD
19274 Bank Sør-Sudan SSD Bank South-Sudan SSD 0200000010854 521 HL SSD
24094 Avsetninger Sør-Sudan Accruals South-Sudan 521 HL n/a
33
Updated April 2016
Madagascar (John Wanyoro Kibua)

17790 Forskudd Madagaskar MGA Advances Madagascar MGA 521 HF MGA
19289 Bank Madagaskar EUR Bank Madagascar EUR 521 HF EUR
19290 Bank Madagaskar MGA Bank Madagascar MGA 521 HF MGA
24090 Avsetninger Madagaskar MGA Accruals Madagascar MGA 521 HF MGA
AMERICAS (Ricardo Mendoza)
Panama (Johanna Acella)
17731 Forskudd Panama USD Advances Panama USD 532 HN USD
19030 Kasse Panama Petty Cash Panama USD 532 HN USD
19230 Bank Panama, USD Bank Panama, USD 0150446058 532 HN USD
24096 Avsetninger Panama Advances Panama USD 532 HN USD
Colombia (Johanna Acella)
17777 Forskudd Colombia Advances Colombia 532 n/a
19277 Bank Colombia COP Bank Colombia COP 078331436 532 COP
19278 Bank Colombia USD Bank Colombia USD USD
Cuba (Johanna Acella)
17734 Forskudd Cuba CUC Advances Cuba CUC 532 CUC
19034 Kasse Cuba, CUC Petty Cash Cuba CUC 532 CUC
19233 Bank Cuba NOK Bank Cuba NOK 1503.35.87667 532 NOK
Guatemala (Johanna Acella)
17725 Forskudd Guatemala GTQ Advances Guatemala GTQ 532 GTQ
19015 Kasse Guatemala GTQ Petty Cash Guatemala GTQ 532 GTQ
19267 Bank Guatemala GTQ Bank Guatemala GTQ 0272029767 532 GTQ
19268 Bank Guatemala USD Bank Guatemala USD 0272029734 532 USD
Honduras (Johanna Acella)
17743 Forskudd Honduras HNL Advances Honduras HNL 532 HNL
17744 Forskudd Honduras USD AdvancesHonduras USD 532 USD
19043 Kasse Honduras HNL Petty Cash Honduras HNL 532 HNL
19243 Bank Honduras HNL Bank Honduras HNL 532 HNL
19244 Bank Honduras USD Bank Honduras USD 532 USD
24043 Avsetninger Honduras Accruals Honduras 532 n/a
Haiti (Ralph Dorcelys)
17714 Forskudd Haiti HTG Advances Haiti HTG 532 HH HTG
19011 Kasse Haiti USD Petty Cash Haiti USD 532 HH USD
19012 Kasse Haiti HTG Petty Cash Haiti HTG 532 HH HTG
19027 Kasse Haiti Petit Goave USD Petty Cash Haiti Petit Goave USD 533 HH USD
19028 Kasse Haiti Petit Goave HTG Petty Cash Haiti Petit Goave HTG 534 HH HTG
0485-1722-
19260 Bank Haiti USD Bank Haiti USD 00898536 532 HH USD
0350-1021-
19261 Bank Haiti HTG Bank Haiti HTG 00953886 532 HH HTG
24095 Avsetninger Haiti Accruals Haiti 532 HH n/a
34
W.Epilogue on accounts
This epilogue is meant to act as a detailed guide to where you should post different costs
should you be in doubt. In the chapter on Chart of accounts above there is an overview of the
different account classes. The classes are divided into ten accounting groups. You will find
the Chart of accounts for the field in the Operational Manual chapter 6.
The following accounting groups are used in the reports for the international department:
32 Various incomes
46 Consumption of good related to projects
50 Wages and salaries to employees
53 Other reportable remuneration
54 National insurance and pension costs
58 Public refunds related to labour
59 Other personnel costs
60 Depreciation and write-downs

61 Freight and transport costs
63 Cost related to premises
64 Rental of machinery, fixtures and fittings
65 Tools, fixtures and fittings
66 Repair and maintenance
67 External services
68 Office costs, printed material etc.
69 Telephone bills and postage
70 Costs related to means of transport
71 Cost and allowances related to travel
73 Sales costs, advertising and entertainment
74 Membership dues and gifts
75 Insurance, guarantee and service costs
77 Other expenses
78 Losses etc.
87 Cash contributions
805 Interest incomes
806 Foreign exchange gains
816 Foreign exchange losses
35
Updated April 2016
W.1. Income (accounting class 3)

The main income in international projects comes from the Ministry of Foreign Affairs (MFA),
Norad, ECHO and other donors together with transfers from tied-up equity capital made by
fund-raising etc. These incomes are the basis for financing the projects and they are always
planned and budgeted from HQ before the projects starts. All income to the projects is done at
HQ level and shall never be posted as income at field level. (See section about financing of
projects)
NB! Direct income in the projects shall however be posted as income locally. This kind of
income can be gifts and donations, smaller locally contributions, cost sharing, participation
fees or sales of goods. This kind of incomes should be posted at class 3, usually at accounting
group 31 and 32 in the chart of accounts.
NB! Please be aware of the conditions related to selling of property and equipment in the
MFA/Norad contracts. If property/equipment is sold the income shall be credited to the
programme (alternatively repaid to NorCross if the programme does not continue). These
conditions are included in § 11in the Partnership Agreement. The most correct account to use
for this kind of income is 3290.
The most used accounts are:
3190 Sales of goods (income)
3220 Participation fee (income)
3230 Income from another RC, IFRC, ICRC
3290 Various incomes
W.2. Goods for use in the programmes (accounting group 46)

In the reports, NorCross separates direct costs and indirect costs. NorCross uses specific
accounts for project costs especially related to ERU and other specific projects. Examples of
these costs are food, blankets, tents, etc. which are handed out to beneficiaries or equipment to
implement the project. This type of cost have to be posted at class 4, accounting group 46 in
the chart of account. It is classified at class 4, which is the class for sales costs, because this is
a sort of cost that can be recognised as direct costs that is necessary for the project to reach its
basic purpose.
NB! In accounting class 6 and 7 there are also accounts for some of the same type of costs,
but in these accounting classes are used for indirect cost and this must not be mixed with
direct costs at class 4.
W.3. Payroll and personnel costs (accounting class 5)

All payrolls for delegates are handled from HQ. Salary advances have to be reported to HQ
and will be deducted from the monthly salary payment.
It is important that personnel cost for Norwegian delegates who are taxable in Norway are
reported to HQ. Various personnel costs shall be posted at class 5 accounting group 59.
Included here is also all costs related to delegate housing.
36
Updated April 2016
NB! Delegate housing expenses must not be mixed with costs related to premises at
accounting group 63.
Salaries for local staff are usually paid by the IFRC; the ICRC or the NS and invoiced
NorCross. This is paid out according to contracts. This should be posted at account 5975.
Other personnel costs related to local staff must also be posted at accounting group 59.
NB! Please note that accounts 5000-5899 are for payroll only and shall never be used in field
accounting.
W.4. Costs related to premises (accounting group 63)

All costs related to office premises, warehouses etc. as rental, electricity, water etc. are to be
posted at accounting group 63. Be aware that workstation costs invoiced from IFRC/ICRC or
NS shall be posted in this group as well, at account 6394.
W.5. Machinery, fixtures and fittings (accounting group 64, 65 and 66)
Accounting group 64, 65 and 66 relates to various costs as machinery, IT, inventory,
furniture, maintenance of office equipment and service contracts for such.
See assets/fixed assets and be aware that purchases posted at many of these accounts should
also be registered in the Field Office inventory list. Remember to register sale and disposal of
assets in the inventory list as well as the purchasing.
W.6. External service (accounting group 67)

Accounting group 67 includes consultants, service bureau and audit. Be aware that there are
special regulations for the approval to use consultants. See “Regulations for Financial control
in the Norwegian Red Cross”.
NB! Service fee to IFRC/ICRC/NS shall be posted at account 6762, not at accounting group
87.
W.7. Office costs (accounting group 68)

Accounting group 68 is used for all kind of office consumables and printed material related
to running of the office.
Subscriptions for newspapers, periodicals etc for the office are to be posted on account 6840.
NB! Subscriptions for employees delivered to their home address must be posted at
accounting group 59.
W.8. Telephone (accounting group 69)

All use of all kinds of telephone and internet lines is to be posted in accounting group 69.
NB! Be aware that purchasing of telephones, cell phones and telephone equipment must be
posted at account 6593.
W.9. Costs related to means of transport (accounting group 70)
37
Updated April 2016
All costs related to vehicles and use of vehicles should be posted at accounting group 70.
Be aware that account 7000 – Fuel shall only be used for fuel for cars.
NB! Fuel for generators etc. has to be posted at accounting group 63 if it is used in office
premises and 59 if it is related to delegate housing.
W.10.Travel costs and allowances (accounting group 71)

This accounting group have a long list of accounts with very similar texts. It is important to
know who has travelled and how this person is related to NorCross since the accounts for
travel costs is related to different groups of travellers. There are separate accounts for travel,
accommodation and food. Very often an invoice/receipt can contain both accommodation
and food. This has to be specified in the invoice or receipt and posted at the respective
accounts.
NB! Some accounts in this group are for specific taxable payments and shall usually not be
used in field.
It is very important that you always specify names and title for all participants and
purpose/occasion when it comes to travel, accommodation and food/drink. If it is a special
occasion, work-shop, meeting, gathering, etc. you have to specify this as well.
NB! Every person who receives a food allowance must sign the form for food allowance
7140 – Travel expenses HQ employees
7141 - Travel expenses representatives/non-employees
7143 - Travel expenses delegates
71431 - Travel expenses local staff
71432 - Travel expenses NS employees and volunteers
7160 - Reimbursement of actual travel costs (invoices attached)

7170 – Refreshments served at meetings/events
NB! Remember that receipts for food and refreshments shall state who was served. If it is a
bigger event, you can attach a participation list to the receipt/invoice.
W.11.Selling, advertising and representation (accounting group 73)

This is a type of costs that is very rare in international projects. It is mostly related to
marketing. Some of the accounts here can seem to be suitable for some of your expenses, but
make sure to be aware of the headline for this accounting group before you post anything
here.
W.12.Subscriptions, membership fees and gifts (accounting group 74)

Participation fees for courses and seminars are to be posted on account 7405.
On account 7420 only external gifts or contributions can be posted (e.g. formal visits etc.)
NB! Gifts to employees shall be posted at account 5900.
W.13.Contributions (accounting group 87)

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Updated April 2016
NorCross contributions to the IFRC, the ICRC and the NSs are posted here. This type of
contributions will mainly be transferred and booked at HQ. If you need to post anything in
this accounting group, clarify with HQ Accounting Unit beforehand. 8720 stipulates that
NorCross HQ expects to receive an audited financial report from the recipient of the funds.
NB! Service fee to the IFRC/ICRC are not a contribution and shall not be posted here. Use
account 6762 – Service agreement IFRC/ICRC/NS.
W.14.Finance income and expenses (accounting group 80 and 81)

This accounting group contains both finance income and expenses such as agio/disagio and
interests.
8060 – Agio (foreign exchange gain)
8160 – Disagio (foreign exchange losses)
That’s it!
39
Updated April 2016
User manual for Agresso
If you have problems with saving your bookings in the new version of Agresso, it is because
you have to change your personal settings. You have all done this when you started to use
Agresso first time, but it’s easy to forget so here is how you do:
1. Open the Agresso window for booking of vouchers

2. On the menu line select “File” and “View options”
3. Select “Auto Keep” in the right bottom corner of the window you get up.
4. Registering of vouchers should now work as you are used to from before.
40
Updated April 2016
41
Updated April 2016
X. Agresso/Unit4 Query on NorCross Activity Result/Balance
Basis for C 4.2- Statement of income and expenditure per activity.

This query is set-up to accommodate the needs of the Field Office reporting in regards to the
audit report C 4.2- Statement of income and expenditure per activity.
1. Start Unit4/Agresso
2. Open up the following path Agresso Financials - General Ledger – Balance Tables
3. Open the query NorCross Activity Result/Balance
3
42
Updated April 2016
4. When you have opened the query NorCross Activity Result/Balance.

You will get the following screen
43
Updated April 2016
5. Press F7 to enter parameters to get up the window where you set the search criteria for the query
6. Fill in the following parameters:
a. Activity– activity number. This query is for one activity only. If you have more than one activity you should do one query per
activity.
b. Field Office Code – the two letter field office code.
c. Period –year and month from when you want to start the query.
d. Period –year and month for when the query should end.
7. When the parameters are filled in press OK
44
Updated April 2016
8. After pressing OK the query will generate a report. This report will include the activity that you entered for the field office code.
45
Updated April 2016
9. The query shows each group of accounts for each activity. We therefore recommend
that you use the navigation controls. This will compile or expand the query. You will
find the navigation control on the top of your navigation bar. You can also use the
following commands
CTRL+ F6 – compile or CTRL + F7 - expand
10. If you compile the query you will get an overview resembling the C 4.2- Statement of
income and expenditure per activity. As required this report is in NOK.
46
Updated April 2016
11. To export the result to Excel follow these simple steps

Press the reports button on your navigation bar
12. Choose to export - browser
47
Updated April 2016
13. You will get the following report in Excel.
48
14. Exporting the file in Excel browser version will keep some of the functionality from
UNIT4/Agresso
You can navigate through the different levels by using the numbers 1-6 on the left.
49
Updated April 2016
Y. Agresso/Unit4 Query on NorCross Activity Result Currency
Basis for C 4.3- Statement of income, expenditure and balance by currency

This query is set-up to accommodate in the needs on field office reporting in regards to the
audit report C 4.3- Statement of income, expenditure and balance by currency
15. Start Unit4/Agresso
16. Open up the following path Agresso Financials, - General Ledger – Balance
Tables
17. Open the query NorCross Activity Result Currency
3
50
Updated April 2016
18. When you have opened the query NorCross Activity Result Currency you will get the following screen
51
Updated April 2016
19. Press F7 to enter parameters to get up the window where you set the search criteria for the query.
20. Fill in the following parameters:
a. Currency –the currency code. This query is for one currency. If you have more than one currency you should do one query per
currency.
b. Field Office Code – the two letter field office code.
c. Period –year and month from when you want to start the query
d. Period –year and month for when the query should end
21. When the parameters are filled in press OK
52
Updated April 2016
22. After pressing OK the query will generate a report. This report will include all activities for your chosen field office code and currency.
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Updated April 2016
23. The query shows each group of accounts for each activity. We therefore recommend that you use the navigation controls. This will
compile or expand the query. You will find the navigation control on the top of your navigation bar. You can also use the following
commands
CTRL+ F6 – compile or CTRL + F7 – expand.
24. If you compile the query you will get an overview resembling the C 4.3- Statement of income, expenditure and balance by currency.
54
Updated April 2016
25. To export the result to Excel follow these simple steps.

Press the reports button on your navigation bar.
26. Choose to export - browser
55
Updated April 2016
27. You will get the following report in Excel.
56
28. Exporting the file in Excel browser version will keep some of the functionality from
UNIT4/Agresso.
You can navigate through the different levels by using the numbers 1-6 on the left. We
recommend level 5 for the report.
57
Z. Step by step – Ibistic Invoicing system – Acceptance and approval
All NorCross Oslo invoices are to be processed electronically in the invoice system Ibistic. It is therefore crucial that the invoices has the
correct address; Norges Røde Kors, PB 2967, 7438 Trondheim. This is applicable both for paper and electronic invoices.
Paper invoices is sent to Norges Røde Kors, PB 2967, 7438 Trondheim

Electronic invoices are sent to invoice.2967@kollektor.no
The format of the invoice must be in PDF or TIFF
For the invoice to reach the right person the reference should contain the following. Name of the person and/or NorCross employee
number. If you are a NorCross HQ employee and don’t know your employee number, please contact supportregnskap@redcross.no
How to log on:

a) Internet site: https://services.ibistic.net or the Ibistic button under tools at the NorCross intranet, Korsveien
b) Username: your NorCross e -mail address (kari.nordmann@redcross.no)
c) Password: the first time your profile is created in Ibistic you will receive your password from the NorCross Accounting Unit.
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Updated April 2016
Processing Invoices for acceptance (attestant)
When you log in you will get the following main menu. To process the invoice choose the one saying “For acceptance”
59
Updated April 2016
2. Processing an invoice:
a) To start filling in the correct information press the icon resembling a sheet.
b) Your invoice will now show in a separate screen. Make sure that the information, amount etc are correct.
c) To start to fill in information for the posting, press the pencil under Code
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Updated April 2016
NB! Please note that some invoices can be downloaded – click on the Download attachment
If you want to add extra documentation into the system before sending it to approval – use the function found under Accounting Note
d) After clicking on the pencil you will now have activated the information field for the posting of the invoice.
The following has to be filled in:
Document text: Fill in a short description of the cost – what it is. Use English or Norwegian. This text will be transferred into
Agresso/Unit4
Konto (Account): Fill in the right account. Press the magnifying glass and choose the account. If you are uncertain use the chart
of accounts or look in the Finance and Admin Manual for hints and tips.
Kostnadssted (Cost Centre): fill in the cost centre. Press the magnifying glass and choose cost centre.
Aktivitet (Activity): fill in the correct activity code. Press the magnifying glass and choose the activity. Remember that the
activity code is related to the cost centre.
e) To save press the diskette ( the black square)
How to split an invoice into several lines?

The easiest way to split an invoice is to change the gross amount to the amount you want. When you press save, a new line will appear
with the remaining amount.
3) How to forward an invoice or part of an invoice for approval or further acceptance
If any of the lines are supposed to be sent to another person for acceptance or approval, follow these steps
a) Tick off the box in front of the line.

b) Click on Forward You will now get a new menu line.
c) Action. “Send to another acceptor” or “Confirm acceptance and send to another approver”. Here you choose if you are
forwarding the invoice to another acceptor or sending it for approval.
d) Select Office/ cost centre
e) User. Write the first name or short name of the person you want to forward the line/invoice and press the magnifying glass. You
can also press the magnifying glass and the system will suggest who to send it to, based on Cost Centre in the previous step.
f) Write a Comment in the comment field.
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Updated April 2016
g) Click on Execute
4) What happens if I press reject acceptance or reject approval?
If you press the reject approval/reject acceptance the invoice will not be returned to the person that sent it to you. The invoice will go
back to the NorCross Accounting Unit and they will have to resend you the invoice.
If the invoice is not for you. Use the reject approval/reject acceptance button. Please write a comment to the NorCross Accounting
Unit in the comment field.
5) I have split an invoice into several lines and it is wrong

You can reverse a split of an invoice as long as there are no comments on the lines.
Use the undo split button.
6) I sent the invoice to the wrong person

Contact the person and ask them to send the invoice back to you as an acceptor. If the invoice have first been forwarded to an approver,
it is only the ones with authority to approve that can change the invoice.
7) I need to start over again It’s a mess!
Contact the NorCross Accounting Unit. They will be able to retrieve your invoice and reset it.
8) How to add/remove deputy when absent
a) Choose «My Settings” from the main menu.

b) Choose Deputy ”
c) To add or remove a deputy click on the pencil in front of Invoice acceptance
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Updated April 2016
d) Click on the add person. If you want to remove a deputy, then tick of the box in front of the person’s name and choose remove
selected
e) Use the serch field and find the person you want to be your deputy. Then click on the add button
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Updated April 2016
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65

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Finance and Accounting

Annex 6.2 to the Operational Manual

Developed by: Accounting Unit

B. Set up for the accounting

C. Official accounting requirements and NorCross regulations for financial

ISO – Code/ Year NorCross

D.1. Attributes and relations in Agresso

Accounting group Account

Balance accounts Result accounts

H. Advances, Deposits and Accruals

Advances: can be given as working advances to National Societies, as individual personal

K. Approved budgets and Eligibility of Costs

M.4. Updating and frequency

It is important that the documentation is understandable. If it is in a language other than

M.8. Secure keeping

M.9. Cash basis accounting vs. accruals principle accounting

N. Cash requests and cash flow

O. Transfer of Funds from HQ

O.1. Accounting in Agresso

O.2. Accounting in Excel

P. Routines and working habits

P.1. Booking in open periods

P.2. Signatures and authorisation

P.3. Vouchers which are not yet registered

P.4. Currency and exchange rate

The exchange rates used in Agresso can be found at DnB website.

P.5. Agio/disagio and currency differences

P.6. Bank management and check book

P.7. Petty cash

P.9. Salary for local staff

P.10. Salary advances

P.11. DSA/per diem

P.12. Working advance

 The original invoice or expense claim; a receipt of payment

P.15. Assets and inventories

P.17. Supplementary services invoices in Ibistic and splitting of costs

Q.1. Accounting in Agresso

Q.2. Accounting in Excel

S. Closing of Field Office

T. Epilogue on the Norwegian Act of Accounting

T.1. Obligation to keep accounts

T.2. The Accounting Act chapters 3 to7

U.1. Norad funded projects: (re chapter 13 in the OM)

U.2. MFA funded projects: (re chapter 12 in the OM)

U.3. EU funded projects: (re chapter 14 in the OM)

1. DG ECHO (Humanitarian Aid):

MENA (Rana Kabalan)

Madagascar (John Wanyoro Kibua)

60 Depreciation and write-downs

W.1. Income (accounting class 3)

W.2. Goods for use in the programmes (accounting group 46)

W.3. Payroll and personnel costs (accounting class 5)

W.4. Costs related to premises (accounting group 63)

W.6. External service (accounting group 67)

W.7. Office costs (accounting group 68)

W.8. Telephone (accounting group 69)

W.9. Costs related to means of transport (accounting group 70)

W.10.Travel costs and allowances (accounting group 71)

7160 - Reimbursement of actual travel costs (invoices attached)

W.11.Selling, advertising and representation (accounting group 73)

W.12.Subscriptions, membership fees and gifts (accounting group 74)

W.13.Contributions (accounting group 87)