Problems of 2 NZEF
Appendix XII — STANDING INSTRUCTIONS FOR 2 NZEF — Regimental Funds
STANDING INSTRUCTIONS FOR 2 NZEF
HQ 2 NZEF
Ref: Q 77/17
26 Jan 45
To List ‘Z’
(Note: These Instructions cancel previous Standing Instructions (ref Q 77/17, of 12 Jun 43) and embody all Instructions and Orders issued up to and including 2 NZEF Orders Serial No. 215 of 1945).
(1) All Regimental Funds will be vested in the Commanding Officer which term for the purpose of these Instructions means the Officer Commanding the Unit for the time being.
(2) All moneys received for Regimental Funds will be lodged in the first instance with the Chief Paymaster 2 NZEF or Field Cashier in the field, and may be drawn on by requisition signed by the Commanding Officer.
(3) Subject to any special arrangement made with the Chief Paymaster, Units will notify the NZ Pay Office or Field Cashier as the case may be of amounts they wish to draw in cash at the same time as they requisition for pay.
(4) Units so desiring may for their own convenience withdraw portions of the money held by the Chief Paymaster and lodge same to the credit of a current account at Barclay's Bank. Care must be taken that the bank holds specimen signatures of Officers operating on the account. COs will advise the Audit Branch 2 NZEF when such accounts are opened, and when they are closed. Other Funds must Not be mixed with Regimental Funds in the bank account.
(5) The Commanding Officer will decide in what manner the fund is to be spent, bearing in mind that it is intended for improvements in the general welfare of the men. Funds will not be used for the purchase of stores or equipment which normally form part of equipment tables, nor for office appliances, etc., nor will such funds be used in any circumstances to make good shortages of Imprest Moneys, Postal Receipts, Mess Funds or any other separate accounts. Cash payments to individuals of the unit will not be permitted.
(6) Regtl Funds are in fact a trust fund controlled by the CO, and to expend this money on items similar to those mentioned in para (5) above is to exceed the limits of the purpose for which they may be applied.page 316
(7) The principle to be followed, therefore, is to spend freely, but not wastefully from funds, whilst still exercising strict control over the purposes to which the funds are applied in order to ensure that they are in fact used for improvements in the general welfare of the men as a whole.
(8) In all matters affecting Regimental Funds, HQ 2 NZEF is the final authority, and all questions in respect of expenditure from such funds will therefore be addressed accordingly. On the other hand Audit Branch 2 NZEF may well be consulted regarding methods of accounting, etc.
(9) Money required to enable Units to purchase Sports gear or Sports trophies, or to meet incidental expenses for competitions, will normally be provided from the Regimental Funds of the Unit. Application may, however, be made for grants from National Patriotic Funds in the case of:
Special competitions arranged by Bde Gps.
Small Units which for any special reason have not sufficient financial resources.
Applications for any such grants should be made to the Sec., Welfare Committee, HQ 2 NZEF, and should include sufficient information to enable a decision to be made promptly. The state of Regimental Funds in 2 NZEF as a whole is kept under review, and arrangements are made to ensure that funds are maintained at a sufficiently high figure.
(10) All Regimental Fund accounts whether with the Chief Paymaster or in Barclay's Bank are subject to audit by the Audit Branch of 2 NZEF.
(11) Units in CMF requiring payments to be made in Middle East will forward with NZEF Form 147 when applicable, the relative invoice for the supply or service rendered. When paid, the voucher, together with the invoice, will be returned to the Unit, and thus be available to support the quarterly Accounts submitted for Audit Board's action.
Regimental Funds Account
(12) The CO of the Unit is responsible for the proper application of Regimental Funds. He may delegate the responsibility for recording transactions and for the general management of the funds to a subordinate officer or to a Unit Committee. Such delegation however will not relieve the CO of his responsibility for the proper administration and use of the funds.
(13) When a change of duty occurs, and the exigencies of the Service permit, the Offr ic Regimental Funds will write up his accounts to the date of the change, will sign the cash book and will obtain from the incoming officer ic Regimental Funds a receipt for the cash, equipment and books, etc., handed over. The same procedure will be followed when there is a change of CO.
(14) In the event of Regimental Funds Accounts, records, stock, equipment or cash being lost through enemy action or any other cause Commanding Officers will, when necessary, convene Courts of Enquiry to determine the facts. The findings of such Courts of Enquiry will be submitted to the appropriate HQ (i.e., HQ 2 NZEF, HQ 2 NZ Div, or HQ NZ Maadi Camp) for any action that may be necessary. A copy of the findings will be forwarded by the HQ concerned to the Audit Branch 2 NZEF for reference and retention.page 317
(15) Advances to Unit Canteens from Regimental Funds, in order to purchase initial stocks, must be repaid as quickly as possible from Canteen profits as they accrue, thus minimising the risk of Regimental Funds suffering if canteen stocks or cash are lost through any cause.
Cash Book and Voucher Files
(16) Cash Book and Voucher files will be maintained as part of the accounts.
The Cash Book records particulars of receipts and expenditure. A simple specimen page is attached as Appendix ‘A’.1 Sufficient description should be entered against each payment to disclose fully the nature of the transaction and the relevant voucher referred to by its number.
Additional columns will be inserted on both sides of the Cash Book in the case where Units have a current Bank Account, and also columns can be added, if desired, for assembling the same type of transactions (both receipts and payments)—see alternative specimen page, Appendix ‘B’.2
The totals of these columns are then readily available for compiling the Summary of Receipts and Payments referred to in Para (20).
All vouchers supporting payments, e.g., receipted bills, should be numbered and filed. These numbers will be entered in the Cash Book against the respective entries.
Vouchers will be initialled by the Officer-in-Charge of the Regimental Funds accounts before submission to Unit Audit Boards, and by CO before audit by Audit Branch 2 NZEF. Vouchers for messing and other purchases from natives or from the markets in instances where proper receipts are quite unobtainable should be endorsed by the CO or Officer i/c Regimental Funds as follows: ‘Above goods have been received, the prices are fair and reasonable, and the money was actually expended.’
Receipts and Payments Account and Balance Sheet
(19) Receipts and Payments Account and Balance Sheet will be prepared quarterly for presentation to Unit Audit Board or as required by Audit Branch 2 NZEF.
Receipts and payments account will show in summarised form the receipts and payments as entered in the Cash Book.
The account will commence with the balance of cash and the Chief Paymaster's account balanced from the last period to which will be added the receipts for the period. On the payments side will appear in summarised form, the payments for the period, the account being finally balanced by the insertion of the cash in hand and Chief Paymaster's credit at the end of the period. See specimen Receipts and Payments Account, Appendix ‘C’.3
(21) The Balance Sheet should be submitted to the Audit Branch 2 NZEF in its simplest form after being signed by the CO and will show cash and Paymaster's balances and all outstanding amounts due to or from the Regimental Fund. Assets such as equipment need not be valued and included in the Balance Sheet, but a list of such items will accompany the balance sheet, page 318 certified by the CO as being in possession of the Unit on the date of the Balance Sheet. A certificate signed by the CO will also be submitted that the cash on hand was verified by inspection. See specimen Balance Sheet, Appendix ‘C’.
(22) For the information of the Unit, the CO will, as soon as possible after completion of the quarterly Unit Audit Board action, publish in Routine Orders a Balance Sheet (including a list of assets) and a simple statement of the receipts and payments for the period under review.
Unit Audit Board
(23) Every three months COs will assemble an Audit Board of not fewer than three representatives of all ranks of the Unit to examine the Regimental Funds Account in accordance with para (19).
(24) This Board will examine all vouchers, check entries in Cash Book, satisfy itself that all assets and liabilities required to be shown are in the Balance Sheet and that the cash credits are actually available.
(25) When the Board has completed its Audit it will rule off and certify the cash book.
(26) When the exigencies of the service permit the CO will submit within 21 days of the last day of each quarter to HQ 2 NZEF, HQ 2 NZ Div, or HQ NZ Maadi Camp (whichever is appropriate), a certificate that the Unit Audit Board's action has been duly completed.
(27) After the regular three-monthly audit of the Regimental Funds Accounts, all books of accounts, supporting vouchers and relevant documents will be deposited with Unit Records at NZ Base Kit Sec.
(28) It is also recommended that in the event of a Unit leaving for a field of active operations, Regimental Funds Accounts, etc., should in any case be deposited at the Base. It will be realised that by doing so the possibility of such documents being lost is greatly minimised.
Audit Branch 2 NZEF
(29) This Branch will from time to time call for the books of the Regimental Funds Account.
(30) All documents laid down in paras (16) to (21) will be prepared and completed up to the date laid down. When asked for they will then be forwarded to the Audit Branch 2 NZEF, those mentioned in paras (20) and (21) being forwarded in duplicate.
(31) The Regimental Fund balances of 2 NZEF Units, which are disbanded, will be paid to Chief Paymaster 2 NZEF, who will hold such balances for general distribution.
(32) Where there are special circumstances, such as the transfer of a considerable number of men from the disbanded unit direct to another unit, the CO of the disbanded unit may make recommendations to HQ 2 NZEF as to the disposal of balances. Action will then be taken as directed by HQ 2 NZEF.page 319
(33) An inventory of Regimental Fund Equipment, etc., held, will be prepared and submitted to HQ 2 NZEF for instructions as to disposal.
(34) Final accounts will be prepared in accordance with the provisions of these Instructions and these, together with supporting documents will be submitted by the OC of the disbanded Unit to the Audit Branch 2 NZEF for Audit.
(35) See also Standing Instructions for 2 NZEF ‘Disbandment of Units’.
Unit Funds other than Regimental Funds
(36) In the case of units which have canteen or other private funds within the unit (as distinct from Regimental Funds) the following instructions will apply.
(37) The CO of a unit will be responsible for the proper application of such unit canteen and other private funds, and he will ensure that proper accounts and records are kept of all transactions.
(38) The CO will institute a frequent check on the cash and stocks held by the canteens, and cause returns of sales and stocks to be submitted to him regularly.
(39) When a change in the management of a canteen occurs, the outgoing committee will prepare accounts to the date of the changeover and the incoming committee will sign a receipt for the cash and stocks taken over.
(40) The CO will every three months appoint a Unit Audit Board of not fewer than three representatives of all ranks of the unit.
(41) The Board will examine all vouchers, check entries in the Cash Book, satisfy itself that all assets and liabilities required to be shown are in the Balance Sheet and that cash credits and stock on hand in canteens are actually available.
(42) When the Board has completed its audit it will submit a report to the CO on the result of the audit.
(43) For the information of the unit, the CO will as soon as possible after completion of the quarterly audit Unit Audit Board action, publish in Routine Orders a Balance Sheet (including a list of stock and assets on hand), and a simple statement of the receipts and payments for the period under review.
(44) Providing the exigencies of the service permit, the CO will submit within 21 days of the last day of each quarter to HQ 2 NZEF or HQ 2 NZ Div (whichever is appropriate) a certificate that the Unit Audit Board's action has been duly completed.
(45) For the purposes of this Order quarters will end on 31 Mar, 30 Jun, 30 Sep, 31 Dec.
1 Not reproduced.
2 Not reproduced.
3 Not reproduced.