District and Club Qualification Updated 7-17-17

Under the new grants process, both districts and clubs assume greater responsibility for the management of grants. The Rotary Foundation has established requirements for both districts and clubs to be considered “qualified,” and those requirements must be met on an annual basis. The District qualification standards are guaranteed by a committee made up of the District Governor, the District Foundation Chair and the Grants Committee Chair.

The individual club qualification standards are guaranteed by the club president and club president-elect each year through a document called the Club Memorandum of Understanding (MOU). The main purpose of the MOU is to demonstrate to the club and its members that grants are a club responsibility and not solely the responsibility of the club’s “grants person” or three-person committee. Each year the president and president-elect are asked to sign the MOU by March 15 to ensure that the club will be eligible for Rotary Foundation funding during the upcoming Rotary year.

District Qualification What does it mean for the district? Requirements by the Rotary Foundation to provide consistency throughout the Rotary world and ensure that Foundation funds are spent correctly District responsibility for funds for district-sponsored and club-sponsored grants Disclosure of potential conflicts of interest and cooperation with operational audits Specific responsibilities for District Foundation Chair, Grants Committee Chair, and new position of Stewardship Chair

District must maintain a district account to be used only for Rotary Foundation grant funds (this has been done through the Grants Committee that now has a Treasurer as one of its officers) District agrees to develop financial management plan to deal with dispersal of funds (funds for club grants, district-sponsored grants, contingencies, and scholars) District must provide grant management and qualification training for all clubs interested in receiving grant funds (this is what you are doing now; a list of all qualified Rotarians can be found on the district website under DaC-DB committees)

Retention of documents Reports to clubs on use of all district designated funds (done through an annual report at the District Conference and through the Grants Bulletin sent out to all Rotarians on a regular basis) Adherence to all reporting requirements and investigating any claims of misuse of grants funds (a new position Stewardship Chair has been added to the District Grants Committee to assist in this monitoring)

Club Qualification Requirements 1. Terms of Qualification Upon successful completion of the qualification requirements, the club will receive qualified status for a period of one year—renewable. By entering into this agreement and receiving Rotary Foundation grant funds, the club understands and confirms that the club, as an entity, is responsible for the use of grant funds, regardless of which individual(s) controlled the funds.

The club must disclose any potential conflicts of interest and must comply with the Conflict of Interest Policy for Grant Participants as outlined in section 7.030 of the The Rotary Foundation Code of Policies (also part of District 5220 Conflict of Interest Policy found on the District website). The club must cooperate with all district and Rotary Foundation audits.

2. Club Leadership Responsibilities for Qualification At least three club members must be appointed to manage club qualification and ensure that stewardship measures and proper grant management practices are implemented for all Rotary Foundation grants. The club must establish a succession plan for the transfer of grant records to ensure retention of information and documentation.

The club president-elect and at least two other club members must attend grant management and qualification training arranged by the district. That’s what you are doing by going through this training process. Each year, the new president-elect must receive this training plus any “new” members of the club committee. At all times, there must be at least three club members who have received this training. Training only has to be done once.

3. Financial Management The club must maintain a club-controlled bank account to be used only for Rotary Foundation Global Grant funds in accordance with applicable laws. (This requirement does not apply to most clubs, only those who do a Global Grant in which the funds are managed from the United States and not the host club in the country where the project is taking place). Two Rotarian signatories are required on checks and withdrawals.

The club must create a financial management plan that includes measures to: Maintain a standard set of accounts Maintain separate statements of income and expenses. Maintain a general ledger that separates funds according to each project. Inventory of equipment and items purchased. Monthly bank reconciliations.

4. Document Retention The club must create a club documents archive to maintain original documents for a minimum of five years or longer, including but not limited to: Documents related to qualification; All records and documentation of policies and procedures related to the club MOU. (Note: Both of these are kept by the district.)

Documents related to grants, including: Original documents for all grants; Copies of proposals and applications; Copies of grant agreements; Copies of all reports; Receipts and invoices for all purchases; Written or electronic correspondence.

Documents must be stored in a known location that is accessible to club Rotarians and must be provided to The Rotary Foundation or the district upon request or in the case of an audit.

5. Report on Use of Grant Funds The club must report on the use of grant funds as outlined in the Terms and Conditions for Rotary Foundation District Grants and Global Grants. Requirements include returning unused funds; maintaining receipts and bank statements; meeting district or Rotary Foundation timelines for filing progress and/or final reports.

6. Method for Reporting and Resolving Misuse of Grant Funds The club must report any potential misuse or irregularities in grant-related activity to the district. When unsure, it is always best to ask questions of district officials rather than assume everything is OK.

7. Authorization and Agreement The club Memorandum of Understanding is a legal document between the club and the district. By signing this agreement, the club president and president-elect are authorizing it, which enters the club into a legal agreement with The Rotary Foundation to abide by all Foundation and Rotary International policies.

Congratulations. You have completed Grants Qualification Training Congratulations!!!! You have completed Grants Qualification Training. You only have one more step to do. Complete the form included in this section of the District website and either mail it or e-mail it to the appropriate address. Please include any questions you may have had in going through the training or any area where you feel there is a need for additional clarification. Our continuing goal is to update the information so that it remains a valuable tool for Rotarians. Thank you for your participation.