Cheque Payment Authorization Form (Ghana)

A Cheque Payment Authorization Form in Ghana grants documented consent to the action it describes, on the conditions it states.

The legal framework governing cheques in Ghana is the Bills of Exchange Act 1961 (Act 55), which adopted and adapted the English Bills of Exchange Act 1882 for Ghanaian conditions. Section 73 of Act 55 defines a cheque as a bill of exchange drawn on a banker, payable on demand. A cheque is a negotiable instrument under Ghanaian law, meaning it can be transferred by endorsement and delivery to a holder in due course who takes it free of most defects in title. The BoG regulates payment systems in Ghana, including cheque clearing, through the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS), which operates the automated cheque processing infrastructure across Ghana's banking system.

A Cheque Payment Authorization Form serves as an internal control mechanism distinct from the cheque instrument itself. The form documents: the identity of the payee; the purpose of the payment; the amount in figures and words; the account to be debited; and the names and signatures of the authorised signatories who approve the payment before the cheque book is accessed. Many banks licensed by the BoG — including GCB Bank, Absa Bank Ghana, Ecobank Ghana, Stanbic Bank Ghana, and Fidelity Bank Ghana — require their corporate customers to maintain dual-signatory mandates for current accounts, so the authorization form records compliance with the bank mandate and provides the documentary basis for the annual audit.

A Cheque Payment Authorization Form in Ghana must be distinguished from a cheque requisition form, which requests that a cheque be prepared, and from a payment voucher, which records that a payment has already been made. The authorization form is the approval step between the requisition and the actual payment — it is the document that an auditor examines to confirm that each payment was properly approved before the cheque was drawn.

The Public Financial Management Act 2016 (Act 921) and the accompanying Public Financial Management Regulations 2019 (LI 2378) require all public institutions in Ghana to maintain written payment authorizations as part of their internal financial controls. The Controller and Accountant-General's Department (CAGD) enforces these requirements across central government entities, making the cheque payment authorization form a mandatory document for government bodies across Ghana's 16 administrative regions. A Payment Receipt for Ghana is a related document issued after payment has been made, confirming receipt of the funds by the payee. The authorisation form also serves as an internal control document that finance departments retain for audit purposes under the Financial Administration Act 2003 (Act 654), confirming every cheque issued has a documented approval trail.

A Cheque Payment Authorization Form in Ghana is needed in the following situations.

When a company incorporated under the Companies Act 2019 (Act 992) issues cheques from its bank account at a BoG-licensed bank, the company's finance policy will typically require a written authorization from the Chief Financial Officer (CFO), Managing Director, or an authorised committee before a cheque is drawn. The authorization form documents the approval and provides an audit trail for ICAG-registered auditors reviewing the company's internal controls at the end of each financial year.

When a government ministry, department, or agency (MDA) in Ghana disburses funds by cheque, the Public Financial Management Act 2016 (Act 921) and Public Financial Management Regulations 2019 (LI 2378) require written payment authorizations by the designated Authorising Officer before any payment is made. The Controller and Accountant-General's Department (CAGD) enforces these controls across central government entities in Ghana.

When an NGO registered with the Department of Social Welfare and incorporated under the Companies Act 2019 (Act 992) makes payments to suppliers, contractors, or beneficiaries by cheque, the authorization form provides the documentary basis for compliance with donor reporting requirements and for the annual audit by an ICAG-registered auditor. International donors — including development finance institutions operating in Ghana — typically require evidence of written payment authorizations as part of grant reporting.

When a company operating a dual-signatory bank mandate at a BoG-licensed institution draws a cheque, both signatories must sign the cheque, and the authorization form records the prior approval by both authorised persons together with the stated purpose of the payment. The form protects both signatories by documenting that the payment was made with proper organisational authority.

When a Chama, susu group, or informal savings and credit cooperative in Ghana holds a bank account and makes cheque payments to members or suppliers, a cheque authorization form creates an internal record of who approved the disbursement and for what purpose, reducing disputes among members and supporting transparency in the management of group funds.

Parties handling cheques in Ghana should retain completed authorization forms for a minimum of six years, consistent with the limitation period under the Limitation Act 1972 (Act 54) for simple contract claims, and to support any audit or investigation by the Ghana Revenue Authority (GRA) or internal auditors. An Invoice Template for Ghana is a related document that should accompany the authorization form as supporting evidence of the payment obligation.

A Cheque Payment Authorization Form in Ghana under the Bills of Exchange Act 1961 (Act 55) must contain the following essential elements to function effectively as an internal control document.

Organisation Details: The full legal name of the organisation or company drawing the cheque, its company registration number (if incorporated under the Companies Act 2019, Act 992) issued by the Office of the Registrar of Companies (ORC), and its registered address must appear at the top of the form. For government MDAs, the ministry or department name and the head of entity's designation must be included. These details identify the legal entity authorising the payment and are required by the bank for account verification.

Date and Cheque Reference: The date on which the authorization is given and the proposed cheque number — from the cheque book issued by the BoG-licensed bank — must be recorded. Section 73 of the Bills of Exchange Act 1961 (Act 55) requires a cheque to be dated, and the authorization form date should correspond with or precede the cheque date. Discrepancies between the authorization date and the cheque date can raise audit queries about the timing of the approval.

Payee Details: The full legal name of the payee — whether an individual (with Ghana Card number issued by the National Identification Authority (NIA) for significant payments), a company (with ORC registration number), or a government body — must be stated clearly. The payee's bank account details at a BoG-licensed institution should be included for cross-verification against the payment instruction.

Payment Amount: The amount must be stated in both figures and words, in Ghana Cedis (GHS) or the applicable currency. Discrepancies between figures and words on a cheque are resolved in favour of the words under section 9(2) of Act 55. The authorization form must match the amount written on the cheque to prevent unauthorised alterations after the form has been approved.

Purpose of Payment: A concise description of the purpose — invoice number, contract reference, description of goods or services, or nature of the obligation being discharged — must be recorded. This field is critical for the audit trail required under the Public Financial Management Act 2016 (Act 921) for public bodies and for internal control compliance in private organisations.

Supporting Documents: The form should list and reference the supporting documents attached — invoice, purchase order, contract, or delivery note — so that the authorising signatories can verify the validity of the payment before approving. The Ghana Revenue Authority (GRA) may request these documents during a tax audit to verify that payments represent legitimate business expenses deductible under Act 896.

Authorised Signatories: The form must be signed by the designated authorising officers — typically two signatories in accordance with the bank mandate held at the BoG-licensed bank. The forms-legal.com Cheque Payment Authorization Form template includes signature fields for two authorised signatories with their names, titles, and the date of approval, consistent with the dual-control requirements applied by most banks in Ghana and mandated by the Public Financial Management Regulations 2019 (LI 2378) for public bodies. Internal audit requirements under the Financial Administration Act 2003 (Act 654) mean that finance teams at both public and private institutions must retain signed cheque authorisation forms for a minimum of six years. The Ghana Revenue Authority (GRA) may request these records during tax compliance reviews. Best practice is to store originals in a secure filing system cross-referenced with the organisation's ledger entries, while digital scanned copies are maintained in the accounting software. The Bank of Ghana (BoG) Payment Systems and Services Act 2019 (Act 987) reinforces that payment instruments must be supported by documented internal approvals, protecting the organisation against claims of unauthorised disbursement.