Club Memorandum Of Understanding Resources A Guide To

club memorandum of understanding resources: =========================================== a guide to implementing the club mou ==========

Club Memorandum of Understanding Resources:
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A Guide to Implementing the Club MOU
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Use this guide in conjunction with the Club MOU Worksheet.
MOU Section 1: Club Qualification
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To participate in Rotary Foundation Global and Packaged grants, the
club must agree to implement the financial and stewardship
requirements in this memorandum of understanding (MOU) provided by The
Rotary Foundation (TRF) and to send at least one club member to the
district’s grant management seminar each year. The district may also
establish additional requirements for club qualification and/or
require its clubs to be qualified in order to participate in Rotary
Foundation District Grants. By completing these requirements, the club
becomes qualified and eligible to participate in the TRF grant
program.
A.
Upon successful completion of the qualification requirements,
the club will be qualified for one Rotary year.
B.
To maintain qualified status, the club must comply with this
MOU, any additional district requirements, and all applicable
TRF policies.
C.
The club is responsible for the use of funds for club-sponsored
grants, regardless of who controls the funds.
D.
Qualification may be suspended or revoked for misuse or
mismanagement of grant funds involving, but not limited to:
fraud; forgery; membership falsification; gross negligence;
endangerment of health, welfare, or safety of beneficiaries;
ineligible contributions; use of funds for personal gain;
undisclosed conflicts of interest; monopolization of grant funds
by individuals; report falsification; overpricing; acceptance of
payments from beneficiaries; illegal activities; use of grant
funds for ineligible purposes.
E.
The club must cooperate with any financial, grant, or
operational audits.
Summary
Rotary clubs have significant responsibility for grant administration,
so they must establish measures to ensure compliance with Foundation
policies and avoid misuse and mismanagement of grant funds. Applying
such measures enables clubs to maintain their qualified status for
participation in Foundation grants.
Rectangle 2
Best Practices
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Share the MOU with all club members involved in Foundation grants.
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Perform an annual review to make sure the club is meeting MOU
requirements.
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Send more than one club member to a grant management seminar.
MOU Section 2: Club Officer Responsibilities
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The club officers hold primary responsibility for club qualification
and the proper implementation of TRF grants.
Club officer responsibilities include:
A.
Appointing at least one club member to implement, manage, and
maintain club qualification
B.
Ensuring that all TRF grants adhere to stewardship measures and
proper grant management practices
C.
Ensuring that all individuals involved in a grant conduct their
activities in a way that avoids any actual or perceived conflict
of interest
Summary
Although club officers may assign tasks to other club members, it is
the president and president-elect who are responsible for ensuring
compliance with the MOU, including implementing policies and
procedures for qualification and grant management.
Conflicts of Interest
Mismanagement of grant funds can occur when there is a conflict of
interest. A conflict exists if a Rotarian or associate (family member,
friend, acquaintance, colleague) could benefit financially or
personally from the grant award or activities. Financial benefits
include receiving grant funds for being a project manager or vendor;
personal benefits include receiving a promotion, business referrals,
or a boost in social standing.
Conflicts of interest can negatively affect project activities, future
grant funding, and donations to the Foundation. Further, even perceived
conflicts of interest that do not involve any actual benefit can
affect future funding and donations. Perceived conflicts of interest
must be identified and disclosed to clarify Rotarians’ involvement.
A conflict of interest, either actual or perceived, does not
automatically disqualify a Rotarian from participation in Rotary
grants. Eligibility is determined on a case-by-case basis.
Rectangle 4
Best Practices
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Clearly delineate the roles and responsibilities related to club
qualification, assigning each role to the club member most
qualified for it.
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Assign a past primary grant contact to conduct reviews of open
Foundation grants as a way to ensure that stewardship measures and
grant management practices are being followed.
MOU Section 3: Financial Management Plan
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The club must have a written financial management plan to provide
consistent administration of grant funds.
The financial management plan must include procedures to
A.
Maintain a standard set of accounts, which includes a complete
record of all receipts and disbursements of grant funds
B.
Disburse grant funds, as appropriate
C.
Maintain segregation of duties for handling funds
D.
Establish an inventory system for equipment and other assets
purchased with grant funds, and maintain records for items that
are purchased, produced, or distributed through grant activities
E.
Ensure that all grant activities, including the conversion of
funds, comply with local law
Summary
Oversight requirements for Foundation grant funds go beyond those for
funds from most private or corporate sources. Following a financial
management plan is essential to proper oversight, good stewardship,
and consistent administration of grant funds.
TRectangle 5 he financial management plan should include detailed,
club-specific procedures that are reviewed regularly.
Best Practices
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Involve Rotarians who have an accounting or auditing background in
the development of the financial management plan.
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Provide a detailed, easy-to-understand plan, so that even
Rotarians without a financial background can follow it.
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Compare your plan with those of other clubs, and share best
practices.
Financial Management Plan Worksheet
Procedure
Implementation
Current procedure
Suggested improvements
1. Maintain a standard set of accounts that includes a record of all
receipts for and disbursements of grant funds.
Prepare a spreadsheet for recording funds received from the Foundation
and other sources — each expenditure on a separate line and labeled
with a transaction number. Label original invoices and receipts with
the same number and save them. Send a copy of the spreadsheet and
supporting documents to the project partner.
2. Disburse grant funds.
For a global grant, pay vendors two weeks after receiving an invoice.
Pay with cash only if a traceable payment method is not available.
3. Maintain segregation of duties for handling funds.
Have one person approve the grant expenditures and two other people
write and sign the check.
4. Establish an inventory system for equipment and other assets
purchased with grant funds, and maintain records for items that are
purchased, produced, or distributed through grant activities.
Record each item, along with its price and current owner, on a
spreadsheet, and save the original invoices and receipts in the grant
file in the club’s document file. Send a copy of the records to the
project partner.
5. Ensure that all grant activities, including the conversion of
funds, comply with local law.
Designate someone to be responsible for this oversight.
MOU Section 4: Bank Account Requirements
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In order to receive grant funds, the club must have a dedicated bank
account that is used solely for receiving and disbursing TRF grant
funds.
A.
The club bank account must
a.
Have a minimum of two Rotarian signatories from the club
for disbursements
b.
Be a low- or noninterest-bearing account
B.
Any interest earned must be documented and used for eligible,
approved grant activities, or returned to TRF.
C.
A separate account should be opened for each club-sponsored
grant, and the name of the account should clearly identify its
use for grant funds.
D.
Grant funds may not be deposited in investment accounts
including, but not limited to, mutual funds, certificates of
deposit, bonds, and stocks.
E.
Bank statements must be available to support receipt and use of
TRF grant funds.
F.
The club must maintain a written plan for transferring custody
of the bank accounts in the event of a change in signatories.
Summary
Clubs must maintain a low- or no-interest bank account for each open
club-sponsored grant, to be used solely for receiving and disbursing
grant funds. By establishing a separate account, clubs can better
manage the oversight and recordkeeping for grant funds.
If the club must use an existing account because local law prohibits
establishing a separate grant account, ensure that grant funds are
properly tracked.
In addition, clubs must have a succession plan for the signatories on
the account to ensure a smooth transition of information and
documentation when signatories change.
Rectangle 6 Best Practices
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If payments are made electronically by one person, maintain a
paper trail showing that the payment was approved by at least one
other signatory.
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Request grant funds only when a project is ready to be implemented
so that the funds do not sit idle in a bank account.
*
Use a checking account that records disbursements and document
transactions on bank statements.
MOU Section 5: Report on Use of Grant Funds
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The club must adhere to all TRF reporting requirements. Grant
reporting is a key aspect of grant management and stewardship, as it
informs TRF of the grant’s progress and how funds are spent.
Summary
Clubs must fulfill all Foundation reporting requirements for
club-sponsored global grants and packaged grants. Clubs must submit
progress reports every 12 months from the time a grant is paid until
the final report is accepted, and a final report within two months of
completing the grant project. Failure to file reports can lead to a
club’s exclusion from participation in Rotary Foundation grants.
Clubs must also fulfill their district’s reporting requirements for
district grants. The district is responsible for reporting the use of
funds to the Foundation.
Rectangle 8 Best Practices
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Keep a list of due dates for the club’s reports, and designate
someone to monitor the process.
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Make sure that reports are written as the project is implemented.
MOU Section 6: Document Retention
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The club must establish and maintain appropriate recordkeeping systems
to preserve important documents related to qualification and TRF
grants. Retaining these documents supports transparency in grant
management and assists in the preparation for audits or financial
assessments.
A.
Documents that must be maintained include, but are not limited
to:
1.
Bank information, including copies of past statements
2.
Club qualification documents, including a copy of the signed
club MOU
3.
Documented plans and procedures, including:
a.
Financial management plan
b.
Procedure for storing documents and archives
c.
Succession plan for bank account signatories and
retention of information and documentation
4.
Information related to grants, including receipts and
invoices for all purchases
B.
Club records must be accessible and available to Rotarians in
the club and at the request of the district.
C.
Documents must be maintained for a minimum of five years, or
longer if required by local law.
Summary
Clubs must establish a system for retaining documents related to
qualification and Rotary Foundation grants. The system can be a
combination of electronic and physical files that best fits the needs
of the club. Documents that must be retained include bank statements,
receipts, and procedures relating to the MOU.
Maintaining documents helps clubs comply with local law, ensure
transparency, and prepare for grant reporting, audits, and financial
assessments. It also enables the club to quickly respond to requests
from the Foundation, the district, and individual Rotarians.
Rectangle 7
Best Practices
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Maintain physical files in a single location.
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For easy sharing, create electronic copies that can be emailed or
placed on a shared network.
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Back up electronic files regularly on a CD, flash drive, or secure
website.
*
Keep extra copies in a location separate from the originals.
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Use a free online storage service that allows documents to be
uploaded and accessed remotely so that files can be shared and
edited by more than one person.
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Design a document retention system that works best for your club.
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Adapt the sample file lists and share them with other clubs.
Sample File Lists
Documents needed for club qualification
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Copy of signed club MOU
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Financial management plan and related procedures
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Bank information
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Account details
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Bank statements
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List of signatories
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Bank procedure for changing signatories
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Legal documents
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General ledger and statement of accounts
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Document retention procedures
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Succession plans
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Correspondence on qualification
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Other documents
Documents needed for district, global, and packaged grants
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All grant correspondence, including email
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Beneficiary documentation, including:
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Community assessment
*
Agreements
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Vendor documentation, including:
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Quotes for materials
*
Agreements
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Scholar documentation, including:
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Receipts and invoices
*
Agreements
*
Vocational training documentation, including:
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Receipts and invoices
*
Agreements
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Grant-related documentation, including:
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Bank statements
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Quotes from vendors
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Receipts and invoices
*
Inventory list
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Photos
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Information related to district grants, including:
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Fund requests or applications
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Quotes from vendors
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Receipts and invoices
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Reports
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Other information required by the district
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Other documentation
MOU Section 7: Reporting Misuse of Grant Funds
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The club must report any potential and real misuse or mismanagement of
grant funds to the district. This reporting fosters an environment in
the club that does not tolerate the misuse of grant funds.
Summary
The misuse or mismanagement of grant funds, whether potential or
substantiated, must be reported to the district. Districts must
actively work to prevent misuse and mismanagement, and to investigate
any allegations.
Districts should establish guidelines for conducting investigations
fairly and consistently, but because each situation is unique,
procedures might need to be adjusted as an investigation proceeds.
Districts should forward all reports of misuse or mismanagement to The
Rotary Foundation, which will work with the district and club to
resolve the matter.
Rectangle 9 Best Practices
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Involve several club members in the grant to ensure transparency.
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Create a process for reporting misuse or mismanagement of funds
and make it known to all members.
10
Implementing the Club MOU (May 2013)