What is Advance Requisition Form?
In NGO world, most of expenditures are generally spent by field workers to complete projects of NGO. And thus Project Advance is playing major role in accounting of NGO. This is the area where it needed more Internal Control and Check. One of the handy tool is Advance Requisition Form. It tells Accountant or Finance person that how much advance require for project expenses and other overheads in next month.
What items to be included in Advance Requisition Form?
As such no thumb rule on standard format of Advance Requisition Form, however following information must be there in good Advance Requisition Form.
- Heading : Advance Requisition Form for ___________ month
- Name : Field Staff / Project Officer
- Location : Field Office Name
- Particulars (Showing Project Activities and overheads)
- Amount (If advance required for both FC and Non-FC project, it should mention separately)
- Accountant’s Remarks and Signature
- Approves Remarks and Signature
- Summary of Advance Account (Showing Last Month Balance + Current Month Advance – Current Month Expenditure = Closing Balance)
Standard Format of Advance Requisition Form
Download from here standard Format of Advance Requisition Form. This is a specimen copy, you can customized according to your organization’s need and internal control system.
Importance of Advance Requisition Form
- Get clear cut idea how much fund needs for next month.
- For which activities funds are needed?
- To compare last month expenses to last month advance requisition.
- Cumulative Advance Balance can easily trace out.
- It is wonderful tool of Control Mechanism
- It is very useful document for monthly program planning
- For Accountant, Advance Requisition Form helps for Fund Management Planning
One of the general myths regarding Advance Requisition Form is that Management personnel, heading any project, need not require to prepare it. Irrespective of size of NGO, this is one of the best instrument to establish and maintain Internal Control System.