Financial Management of Grant Funds Rotary ... - ClubRunner

mailboxcuckooManagement

Nov 10, 2013 (3 years and 9 months ago)

49 views

FINANCIAL
MANAGEMENT

OF GRANT FUNDS


ROTARY FOUNDATION

OBJECTIVES


To familiarize Rotarians with the
expectations and requirements of the
donors and to assist clubs to achieve
compliance with expectations and
requirements.


DONOR’S EXPECTATIONS



Assurance that donated funds are spent
effectively and for the intended purpose
of the grant.



Encourage donors to continue giving to
Rotary.


DONOR’S CONCERNS
















Supervision of projects by Non
-
Rotarians
(Rotarians provide
assurances of Honesty, Integrity, Leadership, Capacity and
completion of projects)



Mismanagement of funds



Lack of participation by Rotarians



Lack of project sustainability beyond grant funds (
Rotarians
provide Leadership, Business Acumen, and success to project)




WARNING



Notify the Foundation of any irregularities or change in
the purpose or conditions of the grant.



Seek written authorization before any change is
implemented



The Foundation will investigate any irregularity or
material change noted in the reports



WARNING










Failure to comply with the requirements of the
grants and or the Foundation could result in:


1)
Demand of funds to be returned

2)
Demand the mismanaged portion to be returned

3)
Suspension of the Club from receiving grants up
to 5 years

4)
Destroying the
Goodwill

of the community, the
reputation of the club and its members to
effectively manage grant funds







RESPONSIBILITIES OF ROTARY CLUBS




Effective Management of Project Funds



Misuse of funds



Poor or improper investment of funds



Assure Rotarian capacity and leadership


Completion


Sustainability






If project is to be implemented by a third party,
provide to the Rotary Club assurances of its
capacity to implement the project successfully.
Project funds remains in the custody of Rotarians.



ORGANIZE PROJECT IMPLEMENTATION




Establish/Select an Implementation Committee
of Rotarians (
Rotarians provide assurance and
guarantee of success
)




Set clearly the grant goals/purpose



Set milestone/post to monitor implementation


Set guidelines for


Purchasing


Payments


Accounting Records


Reporting



ORGANIZE PROJECT IMPLEMENTATION


Set guidelines for completion of project


Changes


Delays


Trouble Shooting



Set clear responsibilities


ORGANIZE PROJECT IMPLEMENTATION








Manage the project according to


Best business practice


The Four Way Test


Best Accounting Practices




To demonstrate transparency, no conflict of interest



To assure compliance with grant purpose and conditions.



To provide adequate
evidence

of compliance



To provide timely, meaningful reports of the project and
management of funds.





BEST BUSINESS PRACTICE



Bank accounts should be


Authorized by the club


Clearly identify club and project


All payments made by
cheques


Cheque

require the signature of 2 Rotarians (
involved in
project)


Bank accounts should be reconciled monthly. Retained.



Ledgers, Journals or Program should be open




BEST BUSINESS PRACTICE



Purchase



Bids should be obtained for major purchases (min. 3)


Bids should be presented to the project committee


Minutes of meeting should at minimum detail


Compliance of Bids to request as to quality, price, time &
service


Selection and award to successful bidder



Authorization of purchase


BEST BUSINESS PRACTICE



Receipt of Goods/Service



Issue properly authorized Purchase Order


Upon receipt of Good/Service


Proof of


Verification and certification of good/service



Purchase Order


quality, quantity and price


Proper authorization for payment


Photos


BEST BUSINESS PRACTICE



Payment


Present payment request with the following attachments.


Project Committee Approval


Purchase Order


Proof of receipt


Proof of verification and certification


Photos


2 Rotarians must sign
cheque



Obtain receipt of payment and make copies of all attachments for


Project Report


Club Report


Foundation Report


File


Record disbursement in Journal/Ledger/computer


Record receipt of donation. Make needed copies

BEST BUSINESS PRACTICE



Prepare Monthly Reports


Accounting Reports


Attach receipts, disbursements, etc.


Project Progress Report compared to mile post/goals of
implementation


Note exceptions and problems


Provide explanations


If needed seek guidance and help


(Rotary and Rotarian reputation are at stake)

BEST BUSINESS PRACTICE


Prepare Completion Report


Within 2 months of completion


If project is beyond 1 year, reports should be prepared at a
minimum of 12 months intervals

BEST BUSINESS PRACTICE




Retain records for Projects
for 5
years



Smile, you have provided adequate evidence to assure
the Donors, the Foundation, the Club, the Rotarians and
the Community that all project funds were


Managed effectively



Utilized to achieve the purpose of the grant