Introduction

HOPE 2020 is a non-governmental, non-political, non-religious local NGO established in 2004 with the general objectives of improving the life of the rural communities through providing potable water, hygiene and sanitation services; introducing modern irrigation systems; increasing the rural community’s awareness on HIV/AIDS prevention; providing the necessary care and support for orphans and vulnerable children; reducing gender inequality through women empowerments and contributing its part to environmental protection.

Its head office is located in Addis Ababa City Administration and currently it is operating in Tole, Woliso and Sadden Soddo weredas in South West Shewa Zone and soon expands its geographical operational areas to different weredas of Oromia and Amhara regional states.

In order to meet the changes emanating from internal and external situations, it is essential for an organization to have a clearly defined and up-to-date administrative manual. Among all other things, nothing affects organization’s ultimate success or failure more fundamentally than how well its management team sets the organization’s long-term direction, develop effective strategic moves and approaches, and implements what needs to be done internally to produce good day in and day out strategy execution.

Indeed, strategy and good strategy execution are the trust worthiest signs of good management. As a result clear guidance integrated to the day-to-day administration activities of the organization is a prime importance in discharging its responsibilities. It becomes necessary to revise and amend the previous administrative regulations of the association in order to harmonize it with the rapid expansion of the association in its geographical operational areas, integration of different programs and with the revised labor laws of the country. The revised manual decentralizes the administrative structure of the association and enables the management of the organization to give similar decisions at all levels of managerial positions. It also enables all the employees of the organization to have a clear understanding of their rights and duties.

Hence, to achieve the ideal goals of HOPE 2020, it is of prime importance that all employees and management of the organization fully understand and stipulate to the consistent application of the policy and procedures contained herein. This manual shall be made available to all employees of the association free of charge and strict adherence to the manual is of paramount importance.

Article 1
(Definition of Terms)

• Association /organization/ means HOPE 2020
• Employee/worker is a person hired by the association
• Contract of employment is agreement signed between the association and a worker or employee
• Permanent employee is a worker employed for indefinite period of time
• hild refers to a person whose age is below 18 years. 
• Orphan is a child who has lost his or her mother and/or father.
• Vulnerable Child a child considered vulnerable if he/she is living in a household where the household head is chronically ill, widowed, elderly, a child, disabled, is living in a household    with orphaned children, and/or if the child himself/herself is disabled or abandoned.
• Orphans and Vulnerable Children: A child is considered OVC if he/she is living in a household where the household head is chronically ill, widowed, elderly, a child, disabled, is living in   a household with orphaned children, if the child himself/herself is disabled or abandoned, and/or if she/he has lost one or both of her/his parents

Article 2
(The Association)

HOPE 2020 is a non-political non-sectarian and a not for profit humanitarian association established in accordance with Article 404 of the Ethiopian Civil Code on 21 November 2004.Therefore, any support it receives in cash or in kind from any organization or government or groups or individuals shall be used for the sole purpose of contributing to the government’s effort to alleviate poverty in the country.

Article 3
(Emblem of the Association)

The emblem of the association shall consist on a white ground the name of the association written in English on the left side and in Amharic on the right side in blue. In between the English and Amharic names, there are two flowers the stems of which are crossing each other and above the crossing point written the year of establishment of the association and below is the year 2020. Blue color reflects the association’s goal to provide potable water to the rural community by the year 2020.The green color indicates protecting the environment so that the community lives in a clean and health atmosphere.

Article 4
(Name of the Association)

The name of the Association is HOPE 2020.

Article 5
(Address of the Association)

For legal purposes, the address of the organization is Addis Ababa City Administration Kerkos Sub City Kebele o2 House no 730.

Article 6
(Legal Personality)

The association is legally registered and licensed by Federal Democratic Republic of Ethiopia Ministry of Justice. It has an operational agreement with Federal Government Food Security Disaster Prevention and Preparedness Commission /FSDPPC/ and Oromia Regional Sate FSDPPC and shall sign with Amhara Regional State FSDPPC when necessary.

Article 7
(Objectives of the Association)

The general objectives of the association are to:

• Improve the rural community’s access to potable water, use of water resources and promote alternative development technology
• Decrease the rural community’s exposure to various diseases by promotion of hygiene education and environmental sanitation
• Reduce the rural communities’ dependence on rainfall by introducing modern irrigation systems
• Reduce the spread of HIV/AIDS to rural community through community mobilization and provide the necessary care and support for Orphans and Vulnerable Children /OVC/
• Contribute to gender equality by integrating gender issues in all its programs and fighting harmful traditional practices and activities
• Protect the environment through community mobilization and raising and distribution of seedlings for reforestation programs
• Promoting alternative basic education and adult functional literacy to the rural community
• Participate in different income generating activities to mobilize resources for implementing its programs and reduce dependence on donors

Article 8
(Membership)

• The association consists of its founders and of the members who have joined the association after approved by the General Assembly
• Any person who is above 18 years of age and who accepted the objectives of the association can become member of the association
• Members of the association shall pay monthly membership contribution, the amount of which shall be decided by the General Assembly
• All members have equal rights to elect or to be elected
• Membership rights shall not pass to the heirs of the associate
• Members may contribute any voluntary services to the association
• There shall be no benefit for being member of the association, membership is only on humanitarian basis

 Article 9
(Gender Issues)

• There shall not be discrimination on employment and payment on the basis of sex. In case of equal points during recruitment, woman candidate shall    be given priority
• Women shall not be assigned to a type of work that is harmful to their health
• A pregnant women shall not be assigned to night work or overtime work
• A pregnant women shall not be transferred from her permanent place of work during her pregnancy period or until three months after delivery
• The employment contract of pregnant women shall not be terminated during her pregnancy or until four months of her confinement

 Article 10
(Advocacy Policy of the Association)

• Taking the rural community as the main target group of its development programs
• Promoting good governance in its operational areas
• Promoting social auditing and creating sense of ownership in the community
• Promoting community initiatives in their development endeavors
• Developing good partnerships and networking with all stakeholders
• Adhering to the government policies in eradicating poverty in rural areas
• Mobilizing resources from the community itself than depending on donors
• Majority of its program beneficiaries shall be women

Article 11
(Organizational Structure of the Association)

 

 

Article 12
(The General Assembly: Powers and Functions)

The General Assembly:

• Is the supreme power of the association.
• Elects/appoints/dismisses Chairperson, Vice Chairperson, Auditor,  Secretary & Board   Members from members of the General Assembly
• Decides on major policy issues of the association
• Discusses and approve annual physical and financial plans
• Discuss and approve audit and annual accomplishment reports
• Decide on membership question
• Dismiss members from the association
• Discuss and decides on Board reports
• Approve or amend the administrative Manual of the association
• pprove change in address of the Association’s head office and opening of branch offices
• Invite external auditors, discuss and approve their reports 
• Decide on dissolution of the association
• Its members shall include founding members, board members, and other delegated members

 Article 13
(Powers and Functions of the Chairperson, Vice Chair Person, Auditor, and Secretary of the General Assembly)

[ The Chairperson ]

• Is responsible to the General Assembly
• Summons and lead General Assembly meetings
• Shall follow-up the implementation of regulations adopted and decisions passed by the General Assembly
• Shall forward audit reports and annual accomplishment reports approved by the General Assembly to donors and relevant government organs

 [ The Vice Chairperson ]

• Is responsible to the chairperson
• Shall replace the chair person in his absence
• Shall carryout responsibilities entrusted to him by the chairperson

[ The Secretary ]

• Is responsible to the chairperson
• Shall prepare General Assembly meeting agenda with the chairperson
• Record minutes of the General Assembly meetings
• Keep properly records of the General Assembly
• Forward decisions of the General Assembly to relevant organs

[ The Auditor ]

• Is responsible to the General Assembly
• Shall audit and inspect the accounts of the General Assembly
• Shall submit financial & physical reports to the General Assembly every FY

Article 14
(Decisions and Rules of Procedures of the General Assembly)

• The General Assembly shall hold one session a year unless and otherwise summoned for emergency cases
• Emergency sessions shall be summoned upon written and signed request of 10% of members of the General Assembly
• The General Assembly shall establish ad hoc election committee that constitutes three members during elections with in the General Assembly itself.
• The ad hoc election committee shall set election procedures and once approved by the General Assembly conduct the election
• The presence at a meeting of 51% of the members of the General Assembly constitutes a quorum. When quorum is not full, a second summon shall be     made and decisions be made only on issues stated on the summon by a majority vote of the members present and voting    
• In case the number of members of the association rises beyond conducting meeting of the General Assembly, the meeting shall be held through special representation. The representation shall be decided by the General Assembly in the memorandum of the association
• Decisions of the General Assembly shall be by a majority vote of the members present and voting. In case of equal votes, the group supported by the chairperson shall prevail

Article 15
(The Board of Directors)

• The Board of Directors is responsible to the General Assembly
• The Board of Directors shall have five members
• The Board chairperson and vice chairperson shall be elected by Board of  Directors         
• The General Manager shall serve as Board secretary without voting right

 Article 16
(Powers and Functions of the Board of Directors)

• The Board of Directors shall elect/appoint/dismiss General Manger for the association
• It shall present to the General Assembly policy decisions initiated by the management team for final approval
• The Board of Directors shall follow up the proper implementation of decisions of the General Assembly and the association’s annual plan of operation
• Verify the financial and material resources of the association against its   plans and raise funds to implement its programs.
• Submit proposal on the opening of branch offices of the Association  to the General Assembly for decision and approval
• Discuss on accomplishment reports of the management team and submit reports to the General Assembly
• Present short-term, medium-term and long -term physical and financial plans of the association to the General Assembly for decision and approval
• Prepare personnel administrative rules for of the association
• Prepare administrative rules for the management team
• Decide on emergency call of the General Assembly

Article 17
(Powers and Functions of the Board Chair person, Vice Chair Person, and Secretary)

[ The Board chairperson ]

• Lead Board of Directors meetings
• Submit decisions of the Board of Directors to the General Assembly 
• Submit for approval to the General Assembly policy issues, Strategies and other instructions prepared by Board of Directors
• Is responsible to the Board of Directors and General Assembly
• Instruct the General Manger on implementation of decisions passed by the Board of Directors and General Assembly
• Supervise and follow up performance of the Management Team of the association
• Instruct the General Manager to forward audit reports and  accomplishment reports to relevant organs
• Except audit report, submit annual reports to the General Assembly

[ The Board Vice chairperson ]

• Shall replace the chair person in his absence
• Shall carryout responsibilities entrusted to him by the chair person

[ The Secretary ]

• Is responsible to the Board of Directors
• Prepare Board of Directors meeting agenda with the chairperson
• Record minutes of the Board of Directors meetings
• Keep properly records of the Board of Directors

Article 18
(Decisions and Rules of Procedures of the Board of Directors)

• The Board of Directors shall have four sessions in a year unless and  otherwise summoned for especial meetings
• Emergency sessions shall be summoned by the Board Chairperson or General Manger of the association
• The presence at a meeting of 51% of the members of the Board of Directors constitutes a quorum. When quorum is not full, a second summon shall be made and decisions be made by members present
• Decisions of the Board of Directors shall be by a majority vote. In case of equal votes, the group supported by the chairperson shall prevail.
• Board members shall serve for four years and no Board Member shall be elected for more than two terms.
• Board members shall serve without salary

Article 19
(The General Manager: Powers and Functions)

[ The General Manger of the Association ]

• Is responsible to the Board of Directors
• Is the official and legal representative of the association
• Shall sign contracts on behalf of the association and correspond on behalf of the association and appoint an agent
• Operate the bank account and sign cheqe of the association jointly with Finance Head
• Implements decisions passed by the General Assembly and Board of Directors
• Shall submit policy issues, annual physical and financial work plan of the association to Board of Directors
• Submit quarterly and annual and quarterly physical and financial accomplishment reports of the association to the Board of Directors
• Design strategies and means of securing funds for achieving the objectives of the association
• Except the finance head and cashier, present candidates for managerial positions to the Board
• Including the finance head and cashier and other personnel, shall follow-up and supervise to ensure the day to day implementation of the activities of    the association
• Make managerial decisions with regard to activities of the association
• If he is member of the association, he shall not have voting power  to approve his initiatives or decisions of lower organs under his guidance during General Assembly meetings
• Perform other duties entrusted to him by Board of Directors

Article 20
(Powers and Functions of Finance Head of the Association)

Under the responsibility of the General Manager, the Finance Head of the Association will:

• Ensure that the association’s revenue and expenditure are properly recorded and documented
• Ensure that the financial flow of the association is inline with the modern accounting principles and relevant laws of the country
• Jointly operate bank accounts of the association with the General Manager
• Ensure finance documents are properly recorded and kept

Article 21
(Functions of Cashier of the Association)

Under the responsibility of the General Manager, the Cashier of the Association:

• Shall receive income of the association
• Shall deposit income of the association in the association’s bank account and properly keep the receipts
• Shall keep petty cash the amount of which is not more than Birr 5,000.00 (five thousand).
• Reconcile revenue and expenditure accounts with the finance head
• Shall hold bank cheque of the association 
• Shall effect payment upon joint signature of then Finance head and General Manager

Article 22
(Powers and Functions of Auditor of the Association)

Under the responsibility of the General Assembly, the Auditor of the Association:

• Ensure the authenticity of financial and physical properties of the association
• Ensure that the activities of the association is in line with its administrative manual
• Submit annual audit reports to the General Assembly

Article 23
(Source of Income of the Association)

The source of income of the association is:

• Membership contribution
• Fund raising
• Donations by organizations, groups or individuals
• Income Generating Activities by the Association

Article 24
(Fiscal Year)

• The association’s official Fiscal Year is from January 1st to December 31st
• External Auditors are invited every Fiscal Year to audit the accounts of the association

Article 25
(Era of the Association)

• The association is established for an unspecified period of time.

Article 26
(Dissolution and liquidation of the association)

• The General Assembly may at any time dissolve the association when supported by 75% of members of the association
• The debts of the association shall be paid over from assets of the association
• Any balance from the payment of debts shall be handed over to the  relevant government authority

Article 27
(Accounting system and procedure)

• The accounting system and procedure of the association shall be based on the Generally Accepted Accounting Principle/GAAP/
• The system will stick to memorandum of the association, relevant Proclamations and regulations of the government and agreements signed between      the association and donors
• The accounting task will generally be carried out at head office level until branch offices require to establish their own accounting system
• Establishing accounting system and opening Bank accounts to branch office shall be decided by Board of Directors
• Until they open bank accounts branch offices shall process their financial flow through written financial requests to the head office, the effected amount has to be settled before another financial request is processed
• All transaction shall be reordered immediately after they are effected

Article 28
(Financial Transaction Formats)

The financial transaction formats of the associations shall be:

• Pre numbered cash payment voucher.
• Pre numbered cash receipts voucher.
• Cash request voucher.
• Ledgers and subsidiary ledgers.
• Daily payment summary voucher.
• Petty cash report and request.
• Petty cash suspense voucher. (Advance)
• Pay roll sheet

Article 29
(Income Collection)

• All income collected either in the form of cash or cheque has to be recorded immediately upon receipts of the cash on cash receipts voucher with all particulars dully indicated therein.  The original goes to payee and the 2nd copy goes to account unit whilst the 3rd copy remains with the pad
• All such collection shall be deposited in bank account of the association immediately or early in the next day
• Collection shall be done by cashier of the association
• The cashier shall produce copy of receipts and bank deposit slip to the accounting unit as soon as possible.
• Unless and otherwise specifically authorized by the General Manager Cash shall not be used before it is deposited in Bank.

Article 30
(Recording)

• The accounting section shall record all transaction on the appropriate journal, ledger and subsidiary ledger immediately after the completion of the accounting cycle to their proper place.
• Receipts of liquid cash and cheque shall be recorded on General Journal in their appropriate column with all details
• Monthly transaction such as income and expense shall be posted to ledgers and subsidiary ledgers as per the chart of accounts
• Donation in kind shall be recorded in the their monetary value but to avoid complication it should indicate that it is a monitory value not liquid cash or cheque.
• The accounting unit shall report to General Manager about financial transaction monthly
• The accounting unit should file all transaction properly along with relevant source documents attached that evidence the payment.

Article 31
(Cheque)

• Cheque pads shall be thoroughly examined if they are properly numbered before received from Bank.
• Cheque pads shall be collected from Bank by the General Manager
• Cheque pads shall be handed over to the concerned official in writing upon a signature of acknowledgment for receipt.
• Only one cheque pad shall be used at a time.
• Issuance of new cheque pads shall only be after receiving the used cheque pad
• The new cheque pads shall be checked to be sure that everything is in order before issuing the cheque pad.
• Cheque shall be issued and used in their chronological order from  Smaller number on words
• Cheque register book shall be used to record movement of cheque pads

Article 32
(Petty Cash)  

• The amount of petty cash fund maintained shall not be more than 5000 /five thousand/ ETB
• Petty cash shall be maintained by the cashier of the association and shall be replenished when 75% of the fund maintained is utilized.
• Cashier shall be entitled to cashier allowance of ETB 50.00 per month as cash indem
• The finance head, to make sure that the petty cash operating system is operating properly, shall conduct surprise cash count
• All petty cash payment should be substantiated with valid receipts or with the signature of payee on the payment voucher
• All payment from petty cash held as suspend has to be settled with in one week of the date of receipt.
• All petty cash payment should be prepared on payment voucher and approved by a concerned official prior the petty cashier effects payment.
• The petty cashier shall prepare a summarized report of the consumed petty cash in two copies to the finance head of the association
• Before replenishment of the petty cash the accounts unit should investigate the authenticity of the supporting documents presented by the cashier.
• When the cashier and accounts unit agreed on the petty cash report they shall sign on both copies and keep the original for accounts unit and copy to     cashier as evidence of settlement.
• Accounts unit records all petty cash transaction on daily base to proper journal

Article 33
(Purchase)

• Purchase shall be conducted by a purchase committee established by the General Manager
• The committee shall consist three members including the purchase officer
• Purchase may be conducted by the purchase officer up to three thousand ETB
• Any purchase the amount of which exceeds three thousand ETB shall be effected through gathering the necessary Performa from potential suppliers
• The association may select three potential suppliers at the beginning of each FY to present Performa when necessary

Article 34
(Bank Reconciliation and Financial Statement)

• Bank reconciliation shall be prepared every month as per bank statement.
• A person who has not access to journal, ledger and preparation of cheque for payment shall prepare bank reconciliation.
• The reconciliation shall be performed as per the format stipulated for the purpose according to this accounts manual.
• Deposits that should appear on the bank statement, but not omitted have to be investigated with the bank.
• Cheque not presented to bank with in six months shall be reversed.
• The bank statement shall be taken as a source document to record bank service charge.
• Financial statement shall be prepared once a year immediately after the end of the fiscal year
• Financial statement of the organization shall mean balance sheet and Income and expediter statement
• The accounting unit at the end of each fiscal year shall produce Balance sheet and income and expenditure statement to Board of Director, donors and other interested parties
• The statement shall annex supporting description regarding donation, unsettled work advance, advance given to branch offices and other related information.

Article 35
(External Audit)

• Board of director shall appoint external auditors for inspecting the financial activity of the association
• Audit may be conducted at the end of each fiscal year.
• Audit shall be performed mainly at head quarter level and if need be at branch office level too

Article 36
(Chart of the Accounts and codes)

The chart of accounts shall have the following five major categories and account code                       

• Assets
• Liabilities
• Income
• Expense
• Fund balance

This chart of accounts shall only be implemented after the approval of board of director

[ Effective date ]

• This administrative manual of the association shall be effective from the first day of August two thousand and seven