Financial Management of Grant Funds Rotary Foundation. To familiarize Rotarians with the expectations and requirements of the donors and to assist clubs to achieve compliance with expectations and requirements. Objectives.
To familiarize Rotarians with the expectations and requirements of the donors and to assist clubs to achieve compliance with expectations and requirements.
Assurance that donated funds are spent effectively and for the intended purpose of the grant.
Encourage donors to continue giving to Rotary.
Supervision of projects by Non-Rotarians and for the intended purpose of the grant.(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)
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
Failure to comply with the requirements of the grants and or the Foundation could result in:
Demand of funds to be returned
Demand the mismanaged portion to be returned
Suspension of the Club from receiving grants up to 5 years
Destroying the Goodwill of the community, the reputation of the club and its members to effectively manage grant funds
Effective Management of Project Funds the Foundation could result in:
Misuse of funds
Poor or improper investment of funds
Assure Rotarian capacity and leadership
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.
Establish/Select an Implementation Committee of Rotarians ( the Foundation could result in: Rotarians provide assurance and guarantee of success)
Set clearly the grant goals/purpose
Set milestone/post to monitor implementation
Set guidelines for
Set guidelines for completion of project the Foundation could result in:
Set clear responsibilities
Manage the project according to the Foundation could result in:
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.
Bank accounts should be the Foundation could result in:
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
Purchase the Foundation could result in:
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
Receipt of Goods/Service the Foundation could result in:
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
Payment the Foundation could result in:
Present payment request with the following attachments.
Project Committee Approval
Proof of receipt
Proof of verification and certification
2 Rotarians must sign cheque
Obtain receipt of payment and make copies of all attachments for
Record disbursement in Journal/Ledger/computer
Record receipt of donation. Make needed copies
Prepare Monthly Reports the Foundation could result in:
Attach receipts, disbursements, etc.
Project Progress Report compared to mile post/goals of implementation
Note exceptions and problems
If needed seek guidance and help
(Rotary and Rotarian reputation are at stake)
Prepare Completion Report the Foundation could result in:
Within 2 months of completion
If project is beyond 1 year, reports should be prepared at a minimum of 12 months intervals
Retain records for Projects the Foundation could result in: 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
Utilized to achieve the purpose of the grant