Club Memorandum of Understanding Resources:

Transcription

1 Club Memrandum f Understanding Resurces: A Guide t Implementing the Club MOU Use this guide in cnjunctin with the Club MOU Wrksheet. MOU Sectin 1: Club Qualificatin T participate in Rtary Fundatin Glbal and Packaged grants, the club must agree t implement the financial and stewardship requirements in this memrandum f understanding (MOU) prvided by The Rtary Fundatin (TRF) and t send at least ne club member t the district s grant management seminar each year. The district may als establish additinal requirements fr club qualificatin and/r require its clubs t be qualified in rder t participate in Rtary Fundatin District Grants. By cmpleting these requirements, the club becmes qualified and eligible t participate in the TRF grant prgram. A. Upn successful cmpletin f the qualificatin requirements, the club will be qualified fr ne Rtary year. B. T maintain qualified status, the club must cmply with this MOU, any additinal district requirements, and all applicable TRF plicies. C. The club is respnsible fr the use f funds fr club-spnsred grants, regardless f wh cntrls the funds. D. Qualificatin may be suspended r revked fr misuse r mismanagement f grant funds invlving, but nt limited t: fraud; frgery; membership falsificatin; grss negligence; endangerment f health, welfare, r safety f beneficiaries; ineligible cntributins; use f funds fr persnal gain; undisclsed cnflicts f interest; mnplizatin f grant funds by individuals; reprt falsificatin; verpricing; acceptance f payments frm beneficiaries; illegal activities; use f grant funds fr ineligible purpses. E. The club must cperate with any financial, grant, r peratinal audits. Rtary clubs have significant respnsibility fr grant administratin, s they must establish measures t ensure cmpliance with Fundatin plicies and avid misuse and mismanagement f grant funds. Applying such measures enables clubs t maintain their qualified status fr participatin in Fundatin grants. Share the MOU with all club members invlved in Fundatin grants. Perfrm an annual review t make sure the club is meeting MOU requirements. Send mre than ne club member t a grant management seminar. 1

2 MOU Sectin 2: Club Officer Respnsibilities The club fficers hld primary respnsibility fr club qualificatin and the prper implementatin f TRF grants. Club fficer respnsibilities include: A. Appinting at least ne club member t implement, manage, and maintain club qualificatin B. Ensuring that all TRF grants adhere t stewardship measures and prper grant management practices C. Ensuring that all individuals invlved in a grant cnduct their activities in a way that avids any actual r perceived cnflict f interest Althugh club fficers may assign tasks t ther club members, it is the president and presidentelect wh are respnsible fr ensuring cmpliance with the MOU, including implementing plicies and prcedures fr qualificatin and grant management. Cnflicts f Interest Mismanagement f grant funds can ccur when there is a cnflict f interest. A cnflict exists if a Rtarian r assciate (family member, friend, acquaintance, clleague) culd benefit financially r persnally frm the grant award r activities. Financial benefits include receiving grant funds fr being a prject manager r vendr; persnal benefits include receiving a prmtin, business referrals, r a bst in scial standing. Cnflicts f interest can negatively affect prject activities, future grant funding, and dnatins t the Fundatin. Further, even perceived cnflicts f interest that d nt invlve any actual benefit can affect future funding and dnatins. Perceived cnflicts f interest must be identified and disclsed t clarify Rtarians invlvement. A cnflict f interest, either actual r perceived, des nt autmatically disqualify a Rtarian frm participatin in Rtary grants. Eligibility is determined n a case-by-case basis. Clearly delineate the rles and respnsibilities related t club qualificatin, assigning each rle t the club member mst qualified fr it. Assign a past primary grant cntact t cnduct reviews f pen Fundatin grants as a way t ensure that stewardship measures and grant management practices are being fllwed. 2

3 MOU Sectin 3: Financial Management Plan The club must have a written financial management plan t prvide cnsistent administratin f grant funds. The financial management plan must include prcedures t A. Maintain a standard set f accunts, which includes a cmplete recrd f all receipts and disbursements f grant funds B. Disburse grant funds, as apprpriate C. Maintain segregatin f duties fr handling funds D. Establish an inventry system fr equipment and ther assets purchased with grant funds, and maintain recrds fr items that are purchased, prduced, r distributed thrugh grant activities E. Ensure that all grant activities, including the cnversin f funds, cmply with lcal law Oversight requirements fr Fundatin grant funds g beynd thse fr funds frm mst private r crprate surces. Fllwing a financial management plan is essential t prper versight, gd stewardship, and cnsistent administratin f grant funds. The financial management plan shuld include detailed, club-specific prcedures that are reviewed regularly. Invlve Rtarians wh have an accunting r auditing backgrund in the develpment f the financial management plan. Prvide a detailed, easy-t-understand plan, s that even Rtarians withut a financial backgrund can fllw it. Cmpare yur plan with thse f ther clubs, and share best practices. 3

4 Financial Management Plan Wrksheet Prcedure Implementatin Current prcedure Suggested 1. Maintain a standard set f accunts that includes a recrd f all receipts fr and disbursements f grant funds. 2. Disburse grant funds. 3. Maintain segregatin f duties fr handling funds. 4. Establish an inventry system fr equipment and ther assets purchased with grant funds, and maintain recrds fr items that are purchased, prduced, r distributed thrugh grant activities. 5. Ensure that all grant activities, including the cnversin f funds, cmply with lcal law. Prepare a spreadsheet fr recrding funds received frm the Fundatin and ther surces each expenditure n a separate line and labeled with a transactin number. Label riginal invices and receipts with the same number and save them. Send a cpy f the spreadsheet and supprting dcuments t the prject partner. Fr a glbal grant, pay vendrs tw weeks after receiving an invice. Pay with cash nly if a traceable payment methd is nt available. Have ne persn apprve the grant expenditures and tw ther peple write and sign the check. Recrd each item, alng with its price and current wner, n a spreadsheet, and save the riginal invices and receipts in the grant file in the club s dcument file. Send a cpy f the recrds t the prject partner. Designate smene t be respnsible fr this versight. imprvements 4

5 MOU Sectin 4: Bank Accunt Requirements In rder t receive grant funds, the club must have a dedicated bank accunt that is used slely fr receiving and disbursing TRF grant funds. A. The club bank accunt must a. Have a minimum f tw Rtarian signatries frm the club fr disbursements b. Be a lw- r nninterest-bearing accunt B. Any interest earned must be dcumented and used fr eligible, apprved grant activities, r returned t TRF. C. A separate accunt shuld be pened fr each club-spnsred grant, and the name f the accunt shuld clearly identify its use fr grant funds. D. Grant funds may nt be depsited in investment accunts including, but nt limited t, mutual funds, certificates f depsit, bnds, and stcks. E. Bank statements must be available t supprt receipt and use f TRF grant funds. F. The club must maintain a written plan fr transferring custdy f the bank accunts in the event f a change in signatries. Clubs must maintain a lw- r n-interest bank accunt fr each pen club-spnsred grant, t be used slely fr receiving and disbursing grant funds. By establishing a separate accunt, clubs can better manage the versight and recrdkeeping fr grant funds. If the club must use an existing accunt because lcal law prhibits establishing a separate grant accunt, ensure that grant funds are prperly tracked. In additin, clubs must have a successin plan fr the signatries n the accunt t ensure a smth transitin f infrmatin and dcumentatin when signatries change. If payments are made electrnically by ne persn, maintain a paper trail shwing that the payment was apprved by at least ne ther signatry. Request grant funds nly when a prject is ready t be implemented s that the funds d nt sit idle in a bank accunt. Use a checking accunt that recrds disbursements and dcument transactins n bank statements. 5

6 MOU Sectin 5: Reprt n Use f Grant Funds The club must adhere t all TRF reprting requirements. Grant reprting is a key aspect f grant management and stewardship, as it infrms TRF f the grant s prgress and hw funds are spent. Clubs must fulfill all Fundatin reprting requirements fr club-spnsred glbal grants and packaged grants. Clubs must submit prgress reprts every 12 mnths frm the time a grant is paid until the final reprt is accepted, and a final reprt within tw mnths f cmpleting the grant prject. Failure t file reprts can lead t a club s exclusin frm participatin in Rtary Fundatin grants. Clubs must als fulfill their district s reprting requirements fr district grants. The district is respnsible fr reprting the use f funds t the Fundatin. Keep a list f due dates fr the club s reprts, and designate smene t mnitr the prcess. Make sure that reprts are written as the prject is implemented. 6

7 MOU Sectin 6: Dcument Retentin The club must establish and maintain apprpriate recrdkeeping systems t preserve imprtant dcuments related t qualificatin and TRF grants. Retaining these dcuments supprts transparency in grant management and assists in the preparatin fr audits r financial assessments. A. Dcuments that must be maintained include, but are nt limited t: 1. Bank infrmatin, including cpies f past statements 2. Club qualificatin dcuments, including a cpy f the signed club MOU 3. Dcumented plans and prcedures, including: a. Financial management plan b. Prcedure fr string dcuments and archives c. Successin plan fr bank accunt signatries and retentin f infrmatin and dcumentatin 4. Infrmatin related t grants, including receipts and invices fr all purchases B. Club recrds must be accessible and available t Rtarians in the club and at the request f the district. C. Dcuments must be maintained fr a minimum f five years, r lnger if required by lcal law. Clubs must establish a system fr retaining dcuments related t qualificatin and Rtary Fundatin grants. The system can be a cmbinatin f electrnic and physical files that best fits the needs f the club. Dcuments that must be retained include bank statements, receipts, and prcedures relating t the MOU. Maintaining dcuments helps clubs cmply with lcal law, ensure transparency, and prepare fr grant reprting, audits, and financial assessments. It als enables the club t quickly respnd t requests frm the Fundatin, the district, and individual Rtarians. Maintain physical files in a single lcatin. Fr easy sharing, create electrnic cpies that can be ed r placed n a shared netwrk. Back up electrnic files regularly n a CD, flash drive, r secure website. Keep extra cpies in a lcatin separate frm the riginals. Use a free nline strage service that allws dcuments t be upladed and accessed remtely s that files can be shared and edited by mre than ne persn. Design a dcument retentin system that wrks best fr yur club. Adapt the sample file lists and share them with ther clubs. 7

8 Sample File Lists Dcuments needed fr club qualificatin Cpy f signed club MOU Financial management plan and related prcedures Bank infrmatin Accunt details Bank statements List f signatries Bank prcedure fr changing signatries Legal dcuments General ledger and statement f accunts Dcument retentin prcedures Successin plans Crrespndence n qualificatin Other dcuments Dcuments needed fr district, glbal, and packaged grants All grant crrespndence, including Beneficiary dcumentatin, including: Cmmunity assessment Agreements Vendr dcumentatin, including: Qutes fr materials Agreements Schlar dcumentatin, including: Receipts and invices Agreements Vcatinal training dcumentatin, including: Receipts and invices Agreements Grant-related dcumentatin, including: Bank statements Qutes frm vendrs Receipts and invices Inventry list Phts Infrmatin related t district grants, including: Fund requests r applicatins Qutes frm vendrs Receipts and invices Reprts Other infrmatin required by the district Other dcumentatin 8

9 MOU Sectin 7: Reprting Misuse f Grant Funds The club must reprt any ptential and real misuse r mismanagement f grant funds t the district. This reprting fsters an envirnment in the club that des nt tlerate the misuse f grant funds. The misuse r mismanagement f grant funds, whether ptential r substantiated, must be reprted t the district. Districts must actively wrk t prevent misuse and mismanagement, and t investigate any allegatins. Districts shuld establish guidelines fr cnducting investigatins fairly and cnsistently, but because each situatin is unique, prcedures might need t be adjusted as an investigatin prceeds. Districts shuld frward all reprts f misuse r mismanagement t The Rtary Fundatin, which will wrk with the district and club t reslve the matter. Invlve several club members in the grant t ensure transparency. Create a prcess fr reprting misuse r mismanagement f funds and make it knwn t all members. 9