STEWARDSHIP FINANCIAL MANAGEMENT Stewardship Seminar STEWARDSHIP FINANCIAL MANAGEMENT

STEWARDSHIP & FINANCIAL MANAGEMENT Stewardship Seminar

STEWARDSHIP & FINANCIAL MANAGEMENT Stewardship A donor who is confident that funds are used in an appropriate and responsible manner is more likely to give to the Foundation again. TITLE | 2

STEWARDSHIP & FINANCIAL MANAGEMENT Stewardship As Stewards of The Rotary Foundation, the Trustees must demonstrate to our donors that contributions were used appropriately. The Trustees rely on the integrity of Districts, Clubs and Rotarians engaged in project implementation to ensure that funds are used effectively for the purpose for which they were given. TITLE | 3

STEWARDSHIP & FINANCIAL MANAGEMENT Proper Financial Management = Stewardship of TRF Funds Project Sponsors must: • Treat TRF grant funds as a Sacred Trust • Ensure Transparency of financial transactions • Competent & thorough supervision of project • Use Standard Business Practices TITLE | 4

STEWARDSHIP & FINANCIAL MANAGEMENT A financial management system: • Demonstrates that funds were used effectively and efficiently • Helps the Foundation meet legal requirements • Provides transparency that maintains the integrity of RI and TRF • Embodies trust and opens the door future projects TITLE | 5

STEWARDSHIP & FINANCIAL MANAGEMENT Project Accounts • A separate bank account should be established for each grant project • Project account must be a club/districtcontrolled account • Non-interest bearing account recommended • At least two signatories required • Grant funds must remain in the project account TITLE | 6

STEWARDSHIP & FINANCIAL MANAGEMENT Project Accounts • Global Grants • Should be established and controlled by the sponsor, e. g. district sponsored grants overseen by the district, and club sponsored grants overseen by the primary sponsor club • District Grants • Bank account established by district, and disbursements made by district to the clubs TITLE | 7

STEWARDSHIP & FINANCIAL MANAGEMENT Use of Grant Funds • Determined by grant project committee • Committee ensures grant funds will be spent in accordance with the approved budget • “Collective Responsibility” Tip: Discuss project updates in weekly club meetings and record the minutes TITLE | 8

STEWARDSHIP & FINANCIAL MANAGEMENT Purchases • Bidding process / Request for proposals • During the budgeting stage • During the implementation stage • Goods or services purchased should be highest quality at the lowest price Tip: If in the implementation stage, the prices have changed since the budget for the project was approved by the Foundation, contact your grant coordinator and receive approval for the change in prices or quantity TITLE | 9

STEWARDSHIP & FINANCIAL MANAGEMENT Payments • Invoices need to be received for goods/services Tip: Do not make payments until you have received an invoice • Payments should be made directly to vendors Tip: If purchase has been made by another party, such as a cooperating organization, invoice must be received before payment/reimbursement is made TITLE | 10

STEWARDSHIP & FINANCIAL MANAGEMENT Payments • Payments should be made by check Tip: When cash payments are necessary, use a receipt book to record the expense at local markets and ask the vendors to sign the receipt Do not make any payments that others are unaware of. TITLE | 11

STEWARDSHIP & FINANCIAL MANAGEMENT Ledger of Project Activity Ledger should include (at a minimum): • • • Date of transaction Check number Payee Amount Purpose of transaction Signature of review TITLE | 12

STEWARDSHIP & FINANCIAL MANAGEMENT Sample Ledger TITLE | 13

STEWARDSHIP & FINANCIAL MANAGEMENT Inventory System • To track equipment and other assets purchased, produced, and distributed with grant funds TITLE | 14

STEWARDSHIP & FINANCIAL MANAGEMENT Inventory System Details • Mark the assets with proper RI logo • Number the assets • Maintain a listing of: – Asset # – Beneficiary/owner of asset – Location of asset TITLE | 15

STEWARDSHIP & FINANCIAL MANAGEMENT Document Retention • Bills and receipts should be obtained. • Documents should be filed systematically and cross-referenced in a ledger • Invoices substantiate the expenditure • Receipts substantiate the payment • Project records must be maintained for at least 5 years or as per laws of the country TITLE | 16

STEWARDSHIP & FINANCIAL MANAGEMENT Annual Financial Assessment • • • Examines expenditures of district sponsored grants Confirms all finances are conducted using standard business practices Reported to the clubs within 90 days of new year TITLE | 17

STEWARDSHIP & FINANCIAL MANAGEMENT Report on the use of Grant Funds The district will report to all clubs on the use of DDF by: • Providing a report annually at a district meeting • Including this information in the governor’s final monthly communication TITLE | 18

STEWARDSHIP & FINANCIAL MANAGEMENT Method for Resolving Misuse The district must: • Create a system to track reports of misuse and/or mismanagement. • Promptly investigate reports of misuse or mismanagement of grant funds • Report any potential or substantiated misuse or mismanagement of grant funds to TRF TITLE | 19

STEWARDSHIP & FINANCIAL MANAGEMENT Method for Resolving Misuse Strategies for investigations: • Collect as much information as you can from: • Club members • Vendors • Beneficiaries • Treat individuals involved fairly, without bias • Maintain confidentiality • Verify any claims, if possible • Report findings to TRF TITLE | 20

STEWARDSHIP & FINANCIAL MANAGEMENT Method for Resolving Misuse Examples of how to verify claims: • Concerns raised about costs • Cost comparison • Concerns raised about receipts or invoices • Review payment documentation • Conduct vendor verification • Contact the vendor to confirm issuance, or compare their receipts with the ones in question TITLE | 21

STEWARDSHIP & FINANCIAL MANAGEMENT Method for Resolving Misuse Examples of how to verify claims: • Concerns about project deliverables • Compare budgeted items to those purchased • Onsite verification If in doubt, contact RI Stewardship: Stewardship. Department@rotary. org TITLE | 22

STEWARDSHIP & FINANCIAL MANAGEMENT Resources • • District Memorandum of Understanding Grant Management Training Leader’s Guide to Global Grants (Manual) Foundation-related courses in the Learning Center of Rotary website, www. rotary. org • RRFC, Zone 6 B, Rafiq Ahmed Siddique, • rafiq@bol-online. com • AARFC, Zone 6 B, Wichai Maneewacharakiet • wichai@oiltek. co. th • TRF Staff TITLE | 23

STEWARDSHIP & FINANCIAL MANAGEMENT Financial Management Plan • Keep track of grant funds • Promote transparency to all involved • Safeguard against misuse TITLE | 24

STEWARDSHIP & FINANCIAL MANAGEMENT Questions? TITLE | 25