1. SKILLS DEVELOPMENT FACILITY
ORIENTATION OF GRANTEES IN FINANCIAL REPORTING AND ACCOUNTABILITY FOR SDF GRANT
13th APRIL 2018

2. Introduction Purpose of the presentation
Have common understanding of SDF financing and accounting for the grants
Roles and obligations of grantees (implement the grant and account for funds)
Roles of SDF (Ensure financing and accountability for grants)
Guiding principles – (economy, efficiency and effectiveness)
Legal Requirements and financial Guidelines for management of the grant (FA, PFM Act 2015, Audit Act 2008, POM, Grant Agreement)
Financing and accountability requirements (details in slides)
Ineligible expenditure (details in slides)
Accountability challenges so far encountered

3. General implementation guidelines
This grant is money that has been borrowed from World Bank to support private sector through skills enhancement.
Delegated to PSFU to implement through grants to private sector enterprises.
There are guidelines for donor(WB) and government of Uganda which must be adhered to
Detailed financial management guidelines: WB financial management guidelines, public finance management Act, Audit act, grant agreement, project operations manual, financing agreement among others
Funds must be used for intended purpose to ensure Economy, Efficiency, Effectiveness ‘’value for money’’

4. General implementation guidelines
The implementation of this matching grant shall be guided by Project Operations Manual(POM). Manual is available on website(
The grant agreement is designed basing on POM.
It is therefore important for grantees to be conversant with sections of grant agreement
Any deviations from this agreement are not allowed unless they are provided for in contract and prior approvals obtained from PSFU.

5. General implementation guidelines cont’
Sections in agreement: period, total amount, budget, reporting, record keeping, monitoring, report, assets, environment issues, corruption, conflicts, termination e.t.c
Reporting: monthly reports are expected within 10 days after end of the month or based on reporting requirement stipulated in the grant agreement.
Record keeping: records are expected to be kept for seven(7) years after closure of the grant.
Assets(equipment): if a grant make contribution toward assets to enhance training ,Assets must be identified with SDF Logos/engraved.
Disposal of such assets must take place upon written approval from SDF.

6. General implementation guidelines cont’
You are expected to implement within agreed timelines given that your reports are a prerequisite for SDF to get funding from the World Bank
In place we have due diligence consultants, world Bank monitoring team, M& E firm, OAG, auditors who may choose to visit any of you to check on progress. You are therefore expected to implement all activities in grant and within agreed timelines.
It is important to follow the grant agreement and spend within agreed budget lines

7. Payment methods
1.Advance payment: part payment of a particular percentage on total grant amount based upon agreed deliverables
A good financial system in place which demonstrate segregation of duties
An active bank statement for the last six (6) months’
Experience in managing a grants of amount equivalent to current grant
Audited financial reports for atleast one year, additional project deliverables
Recommendation-open up a dedicated account or not

8. Payment methods cont’s
2.Reimbursement: means repaying the money already spent
Fulfilling grant agreement terms
Submission of satisfactory accountabilities
Funds are spent on eligible activities
Satisfactory M & E report
Submission of end of project report
Note. The last installment shall be a reimbursement
3.Direct payment: SDF makes payment to service providers or suppliers on behalf of the grantee

9. Payment methods cont’s
Conditions for direct payment
Evidence of proper procurement and contractual obligations with a service provider or supplier and request to SDF to make direct payment to such service provider or supplier
Special cases where large procurements are undertaken as part of project skills enhancement and a grantee requires large sums of money on first request
If the grantee fails financial capability assessment to manage SDF funds 
Possibility of fraud or miss-use of SDF funds exhibited in the first accountability submitted

10. Requests for funds
Fund requests must be submitted officially in writing on the grantee’s letter head to SDF. In instances where letter heads are not available, the request letter should bear the grantee’s stamp.
Contents of the request
Name of the grantee, Grant number assigned by SDF, Date
Cash at hand that SDF provided at the time the request was prepared, Description of the purposes for which the funds will be used, Currency in which the disbursement is requested
Amount requested, Banking information
Signature, Name and title of the person making the request and period for which the requested funds will be used.
Must be stamped
Cash expenditures above one million (1,000,000)

11. Ineligible expenditure
Ineligible expenditure: are expenditures not supported under SDF
Expenditures prior to agreement approval and after agreement a period
Expenditures on activities not included in the budget
Sub-contracting without approval (Sub grantee)
Capital expenditures/items or assets not related to training
Payment for facilitation to a media personnel or company apart from fees for media company
Expenditures on alcohol.
Expenditure for demonstration places like purchase of land, ploughing, weeding, hiring land e.t.c
Expenditures without receipts, requisitions, acknowledgements

12. Ineligible expenditure cont’s
Budget re-allocations without prior approval by SDF
Transport allowance to trainees
Transport and travel in other cases: only as per governing rates
Perdiem in other cases only as per governing rates
Allowances, honorarium to officers financed under the project
Re-allocation of funds across budget lines are not accepted without prior clearance from SDF
Purchase of equipment above 10% and equipment which are not related to skills enhancement
Using other suppliers other than those in the quotations/pro-forma invoices attached on the request for funds without genuine explanations

13. Eligible expenditures
Description
Percentage allocation (100%)
Remarks
Training materials 15
Training tools/tool kits
Trainers fees(fees, transport, e.t.c) 20
Shs.100,000 per day
Safety gadgets 5
Meals and venue
maximum Shs.10,000 per person
Equipment 10
In-kind contribution
Certification costs
M & E

14. Procurement procedures
The purpose of procurement procedures is to ensure that:
Procurements are made to the maximum extent possible on a practical, open and freely competitive basis.
The grant recipient obtains the maximum value for money on all its procurements of goods and services.
Procured goods and services are delivered in the correct quantity and quality and in a timely manner.
Procurement methods for SDF grantees
Shopping
Direct contracting

15. Procurements cont’s Shopping.
This shall follow the request for quotations procedures as defined in the PPDA Act and Amendment regulations subject to the provisions in National Competitive Bidding(NCB)
Direct contracting. This is where an entity does not go through other bidding procedures because of limited time or having a specialized procurement.
Any requests for procurement will be prepared and approved within grantee procurement guidelines.
Direct procurement for grantees is not allowed unless supported and in any other case,
procurement above Shs.500,000 (five hundred thousand shillings) must be supported with at least three (3) invoice to ensure competition.

16. Procurement cont’s required documents and accountability
Requisition duly signed
Payment vouchers
Pro-forma invoices/quotations
Invoices
Delivery note
Goods received note if any
Supplier receipts/copies of EFT
Photo graphs of items for tools and equipment
List of equipments (item,Serial No., Amount
Technical verification of items procured(infrastructures, equipment etc)

17. Accountabilities challenges
Poor book keeping and records.
Expenditures out of approved budget lines.
Too much cash transactions
Changes in payment plan.
En-eligible expenditures, receipts not headed, forged receipts, disco receipts
Field Monitoring reports
Changing procurements without minutes and SDF approval
Buying equipment which are not for skills enhancement

18. Accountability challenge continues
High prices from actual market prices exhibited in accountability
Poor report writing of the training progress.
Occurrence of technical changes in the budget and trainer during the grant application without form information from SDF head and grant specialist.
Absence of evaluation reports for trainers
Paying training without a trainer requesting for funds and technical report

19. Accountability procedures continues
Trainer’s fees payment: verifiable out put
Other costs for trainers e.g. transport, accommodation, airtickets (economy) etc must be supported by accountabilities
Tax issues in regards to trainer’s fees
It is also important to seek approval in-case of remaining budget balances.
Trainees attendance registers
ESCROW account in case you require over 50% advance
Exchange losses not catered for

20. Expected accountability
Official bank statement indicating movement of SDF funds and own funds well high lightened
List of equipment purchased (Item, Serial No., Amount), beneficiaries of tool kit
Minutes of project implementation committee on all procurements/service providers
Original vouchers/Invoices/receipts/Acknowledgement
Original daily attendance lists (Training dates, names, IDs, signature, telephone numbers)
Training report (activities, budget performance and accountability, on site photos)
 official submission of accountability on letter head
Accountability file must be well organized

21. Accountability continues
Accountability must be submitted officially to PSFU on grantee headed letter and stamped.
Only original accountability documents(receipts) shall be accepted by PSFU.
It is advisable that grantee shall remain with photo copies of such documents
Registration of suppliers details on line: – TIN

22. Grantee payment plan Copy of signed agreementNo
Description
Deliverables 1
30% advance
Copy of signed agreement
Copy of MOU with the trainer.
Inception report by Trainer (training plan and modules)
Budget for requested costed items (30%)
Final list of the trainees with individual telephone number and employee/national ID number
Proforma invoices of the following: (Tools/Materials/equipment/meals/Venue) 2
Accountability report for the 1st instalment complete with attachments.
Narrative progress report by grantee
Training Report by consultant
Attendance lists of trainees and pictures of the training activity
Proof of atleast 30% of own contribution payment 3
40%-after implementation
Accountability report for the total project budget/End of project financial report
End of project narrative report.
Proof of 70% own contribution payment.
Final M&E consultant report

23. Trainer’s payment planNO
PERCENTAGE PAYMENT GIVEN TO GRANTEE BY SDF
PERCENTAGE PAID TO TRAINER BY THE GRANTEE
TRAINER PAID AFTER THE FOLLOWING DELIVERABLES 1
1st Instalment (20%)
40%
Inception report by Trainer (actual training plan, methodology and modules)
Initial commencement of the training activities
60%
Continued training / complete the first phase of training activities
Report endorsed by Grantee
Request for payment 2
2nd Instalment (40%)
30%
Acknowledgement receipt of the previous money disbursed for the first instalment
Continued training activities
70%
Continued training activities with attendance lists of trainees and pictures of the training activity
Training Report endorsed by Grantees 3
3rd/Last Instalment (40%)
100%
Acknowledgement receipt of the previous money disbursed for the second instalment
End of project training report
M&E report by the grantee

24. Bank Statement transactions
CASH BOOK
Date
Payee
Description
Document no/cheque no etc
Receipts
Payments
Balance
X?? 
 disbursement from SDF  X  -
 XX
 Cash
 meals
 XY
 Training fees
 XZ  Z
 Etc

25. Budget performance Funds Expenditure Report
GPeriodrantee name…………………………….No…………………………….Date………………
……………………………………………..
SN.
Activity/budget line
Approved Budget amount
Actual expenditure
Variance
Reasons for the variance 1
Training fees 2
Tools 3
Materials 4 ……
Total

26. Accountability guidelinesNo
Item
Description
Source Documents required
Mode of Payment 1
Training Materials
Materials used by trainees during practical training
Quotation LPO, Delivery note, Goods received note, Invoices, receipts, Bank Statements
Direct payment to supplier by SDF upon request and submission of the supporting documents by the training firm
Reimbursement to the training firm 2
Tool Kits/gargets
Training safety and protective gargets used by trainees
Quotation LPO, Delivery note, Goods received note, Invoices, Receipts, Bank Statements 3
Accommodation & Meals
This includes housing and meals provided by the training Firms
Daily register Signed by each trainee , invoices by the firms/service providers
Reimbursement to the training firm with supporting documents

27. Administration issues
Administrative procedures
Administration issues No
Item
Description
Deliverables 1
Progress Report
Narrative overall activities undertaken by interns ,photos during training sessions must be attached
Complete narrative report signed and stamped by the grantee, 2
Cash expenditure report
This includes the breakdown of the expenditure as approved with in the budget and original supporting documents
Expenditure Supporting documents and proof of variances 3
Trainee register
These Documents include among others daily and weekly training activities executed by the trainees
Weekly report signed both by trainee and trainer. 4
Attendance lists
Daily attendance of trainees
Daily attendance sheets Signed by trainees. In addition to general contents of attendance sheet , must also include a column for male and Female. 5
Budget performance report
Includes approved activity budget, actual expenditure, variances and reason for the Variance.
Complete financial break down as approved in the budget signed and stamped by the grantee,

28. THE END THANK YOU VERY MUCH MWEBALE NNYO, ASANTE SANA, XIE XIE
We meet as strangers, grow into a big family that is not divided by color, religion, politics & cultures. We are grateful for such an enriching opportunity, words cannot express it all.
THANK YOU VERY MUCH
MWEBALE NNYO, ASANTE SANA, XIE XIE