1. STEWARDSHIP & FINANCIAL MANAGEMENT
Stewardship Seminar

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

3. STEWARDSHIP & FINANCIAL MANAGEMENT
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.

4. 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

5. 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 for future projects

6. STEWARDSHIP & FINANCIAL MANAGEMENT
Project Accounts
A separate bank account should be established for each grant project
Project account must be a club/district-controlled account
Non-interest bearing account recommended
At least two signatories required
Grant funds must remain in the project account
QUESTIONS:
Are there any local laws or structural issues within Thailand that would make it difficult to meet the requirements for project accounts?

7. 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
NOTES:
For district grants, clubs are not required to establish separate bank accounts to receive district disbursements, however, it would be a best practice to ensure that it is easy for the district to account for the funds when the clubs submit their financial documentation to confirm project expenses.

8. 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

9. 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
NOTES: When seeking competitive bids, the prices quoted should be from the same brand and model, otherwise, the prices are not directly comparable. Should there be more than one model considered, separate quotes should be sought.

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

11. STEWARDSHIP & FINANCIAL MANAGEMENT
Payments
Payments should be made by check
Do not make any payments that others are unaware of.
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

12. 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

13. STEWARDSHIP & FINANCIAL MANAGEMENT
Sample Ledger

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

15. 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

16. 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

17. 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

18. 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
When reporting on DDF, the report will include:
a breakdown of expenditures for each project that received funding and the names of districts, clubs, and individuals who received grant funds
Also, the district and all member clubs must adhere to all TRF reporting requirements.

19. 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
The qualification process requires districts to track, investigate, and resolve reports of misuse or mismanagement of
grant funds. By creating a plan before any allegations of misuse are made, the district can apply procedures
consistently and foster an environment that does not tolerate misuse of funds.
The purpose of this training is to ensure that all clubs are aware of Rotary’s stewardship and grant management expectations. We hope that there are no instances of allegations or misuse of funds, but know that there is a zero tolerance policy. Misuse and mismanagement of funds will not be accepted. All allegations will be immediately reviewed and reported to TRF.

20. 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
Strategies for investigating allegations:
When receiving an allegation, make sure that as much information is collected as possible. This may include following up with grant sponsors, or others involved with the project to provide additional information and/or documentation.
If contacting clubs, districts, or individuals involved, ensure that the allegations are handled fairly and without bias. This may involve confirming their privacy (as distinct from confidentiality) in following up on claims. We’re not assuming guilt, but all allegations must be taken seriously and investigated.
If specific claims are made, verify the claim if possible.
Once all information has been gathered, report any findings to The Rotary Foundation.

21. 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
Each allegation is unique, and may require different means to verify claims being made, but here are some examples:
If concerns are raised about the costs of items purchased, you can conduct a cost comparison with comparable products or services
If submitted in the application, review the competitive bidding proforma invoices
If concerns are raised with the receipts or invoices submitted for a project, you can:
Request copies of cancelled checks, wire transfers, credit card statements for comparison
Search for the vendor listed on the receipt to see if they exist, or compare the contact information provided on the documentation
If the vendor exists, ask them to confirm issuance of the invoice/receipt, or ask for a copy to compare the one that was submitted by the project sponsors

22. 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:
Examples:
If concerns are raised about donated items
Conduct an onsite verification.
Compare what was promised in the grant application, to what was purchased
Confirm whether items donated were received by beneficiaries/are in working order
If further guidance is needed, feel free to contact Rotary Stewardship:

23. STEWARDSHIP & FINANCIAL MANAGEMENT
Resources
District Memorandum of Understanding
Grant Management Training Leader’s Guide
Guide to Global Grants (Manual)
Foundation-related courses in the Learning Center of Rotary website,
RRFC, Zone 6B, Rafiq Ahmed Siddique,
AARFC, Zone 6B, Wichai Maneewacharakiet
TRF Staff

24. STEWARDSHIP & FINANCIAL MANAGEMENT
Financial Management Plan
Keep track of grant funds
Promote transparency to all involved
Safeguard against misuse
NOTES:
Establishing a district or club financial management plan is a requirement for qualification. Club/district sponsors should follow their financial management plan, which should outline the points previously covered: disbursing funds properly during project implementation, keeping financial records, and managing a club or district-controlled bank account.
Handout sample club/district financial management plans

25. STEWARDSHIP & FINANCIAL MANAGEMENT
Questions?