1. Martin Ward, District Rotary Foundation Chair Elect
Here we go again – more Rotary alphabet soup – What the heck is an MOU?
To start with it’s short for “Memorandum of understanding” – a setting down of the rules.
Understanding the MOU

2. Understanding the MOU Between Rotary and our District,
Between the District and our Clubs
Review the major points
What the District agreed to
What your club is agreeing to
What are the responsibilities
What are the potential penalties
This is undoubtedly a dry session, but what I would like to do is help you understand how serious The Rotary Foundation is about stewardship of the monies it has received in donations.
AND – what obligations that places on us in terms of using monies given to us in the grants.
Firstly, there are 2 MOUs:
one between the District and Rotary International – and – one between the District and the Club.
You don’t really care about the one between the District and Rotary International much, but knowing a little about it might help you understand why our District Foundation Committee seems a little picky from time-to-time. Essentially there are strict rules to ensure that money is spent appropriately.
The MOU between the District and Clubs that wish to participate in Grants in the Rotary year - that’s the one that
your club needs to qualify for (your doing that today), and
to sign (your president-elect will do that during the President Elect Training process) –
I’d like to take a few minutes to review the major points of these MOUs – specifically:
What the District agreed to with The Foundation,
What you club is agreeing to with the District,
What your responsibilities are, and
What are the potential penalties.
Understanding the MOU

3. TRF – District MOU Qualification Responsibility Club Qualification
District is responsible
District must comply with TRF policies
Qualification may be suspended or revoked
District must comply with audits
Responsibility
Club Qualification
The District must Qualify to be able to participate in Rotary Foundation Grants.
A district is responsible for the use of funds for district-sponsored grants, regardless of who controls the funds – and even if the recipient club has been terminated.
A district must comply with all TRF policies.
Qualification of the district (and all clubs in the district) may be suspended due to mismanagement of funds or other failures.
A district must comply with audits.
Responsibility - district governor, district governor-elect, and district Rotary Foundation committee chair shall hold primary responsibility. These 3 individuals must each qualify individually by passing a test to prove they know the rules, and they take personal responsibility – that is why we take compliance seriously – I’m sure Tony, Jim and Doug agree with me on this.
Club Qualification – is the responsibility of the District.
The key take away here is this:
The Rotary Foundation is serious about stewardship of its funds - If one club is not compliant, for whatever reason, all other, current and future, club and district, grants are in jeopardy.
That is why we run these seminars annually and why club qualification is so important to us.
TRF – District MOU

4. District – Club MOU Qualification Responsibility
Foundation Grant Management Seminar
Compliance with TRF & District policies
Sign the MOU
Responsibility
Management
Stewardship
Avoid Conflict of Interest
The Rotary Foundation prepares an MOU that clubs must sign to qualify.
There is also a rule, from The Rotary Foundation, that states: “at least one club member must attend the district’s grant management seminar each year” to qualify for Global Grants.
Many Districts, including ours, extend that rule to cover qualification for District Grants – and we recommend that at least 2 people from a club attend the seminar.
With the MOU, the club agrees to the similar items agreed to by the District:
A club is responsible for the use of grant funds, regardless of who controls the funds.
A club must comply with all TRF, and District, policies.
A club must comply with audits.
Qualification of the club may be suspended due to mismanagement of funds and a long list of other potential problems.
Responsibility lies with the club officers who must:
Appoint someone to manage the grant,
Ensure adherence to stewardship practices,
Avoid any actual, or perceived, conflicts of interest.
District – Club MOU

5. District – Club MOU Bank Account Reporting Requirements
Financial Management Plan
Separate Bank Account
Reporting Requirements
TRF Reporting
Document Retention
Reporting Misuse
A separate bank account as well as a documented financial management plan are requirements for Global Grants.
Both are also recommended for District Grants – but with simple projects involving minimal invoices and payments, a separate bank account is not required for District Grants.
The MOU also details that clubs must take reporting seriously – and complete it in a timely fashion.
Grant reporting is a key aspect of grant management and stewardship – and the club must adhere to all TRF reporting requirements.
Club records must be retained and must be transparent to club members.
If misuse or mismanagement of grant funds is suspected, it is the club’s responsibility to report it to the District Rotary Foundation Chair.
Reporting is key: <<click for next slide>>
District – Club MOU

6. Reporting Requirements
“The club must adhere to all TRF reporting requirements. Grant reporting is a key aspect of grant management and stewardship …”
“The club must adhere to all TRF reporting requirements. Grant reporting is a key aspect of grant management and stewardship …”
Failure to report in a timely fashion affects much more than your one grant – it can potentially affect all grants for all clubs in the district.
We cannot overstress how important it is to have your reports – for both District and Global grants – submitted on time.
Just one example is:
- A late report on a District Grant can delay, or prevent, the release of funds from The Foundation for the following year’s District grants. At the very least this means that projects depending on grants in the following year may be delayed or potentially become ineligible for the grant.
Reporting Requirements