RotaryClub of: Club Name
CLUBQUALIFICATIONMEMORANDUMOFUNDERSTANDING
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THEROTARYFOUNDATION
1.Club Qualification
2.Club Officer Responsibilities
3.Financial Management Plan
4.BankAccount Requirements
5.Report on Use of Grant Funds
6.Document Retention
7.ReportingMisuse of Grant Funds
1.Club Qualification
ToparticipateinRotaryFoundationglobalandpackagedgrants,theclubmustagreetoimplementthefinancialandstewardshiprequirementsinthismemorandumofunderstanding(MOU)providedbyTheRotaryFoundation(TRF)andtosendatleastoneclubmembertothedistrict’sgrantmanagementseminareachyear.Thedistrictmayalsoestablishadditionalrequirementsforclubqualificationand/orrequireitsclubstobequalifiedinordertoparticipateinRotaryFoundationdistrictgrants.Bycompletingtheserequirements,theclubbecomesqualifiedandeligibletoparticipateintheTRFgrantprogram.
A.Upon successful completion of the qualification requirements, theclub will be qualifiedfor oneRotary year.
B.Tomaintain qualified status, the club must comply with this MOU, any additionaldistrictrequirements, and all applicable TRF policies.
C.Theclub is responsible for the use offunds for club-sponsored grants, regardless of who controlsthe funds.
D.Qualification may be suspended or revoked for misuse or mismanagement of grant fundsinvolving, but not limited to: fraud; forgery; membership falsification; gross negligence;endangerment of health, welfare, or safety of beneficiaries; ineligible contributions; use of fundsforpersonal gain; undisclosed conflicts of interest; monopolization of grant funds by individuals;report falsification; overpricing; acceptance of payments from beneficiaries; illegal activities; useof grant funds for ineligible purposes.
E.Theclub must cooperate with any financial, grant, or operational audits.
2.Club OfficerResponsibilities
Theclub officershold primary responsibility for club qualificationand the proper implementationof TRF grants.
Club officer responsibilities include:
A.Appointingat least one club member to implement,manage, and maintain club qualification
B.Ensuring that all TRF grants adhere to stewardshipmeasures and proper grant managementpractices
C.Ensuring that all individuals involved in a grant conduct their activities in a way that avoids anyactual or perceived conflict of interest
3.FinancialManagement Plan
Theclub musthave a written financial management plan to provide consistent administrationof grant funds.
The financial management plan must include procedures to
A.Maintaina standard set of accounts, which includes a complete record ofall receipts anddisbursements of grant funds
B.Disburse grant funds, as appropriate
C.Maintain segregation of duties for handling funds
D.Establishan inventory systemfor equipment andother assets purchased with grant funds, andmaintain records for items that are purchased,produced,or distributed through grant activities
E.Ensurethat all grant activities, including the conversion of funds, comply with local law
4.Bank Account Requirements
Inorder to receive grant funds, theclubmust have a dedicated bank account that is used solely for receiving anddisbursingTRF grant funds.
A.Theclub bank account must
1.Have a minimumof two Rotarian signatories from the club for disbursements
2.Bea low- or noninterest-bearing account
B.Any interest earned must be documented and usedfor eligible, approved grant activities, orreturned to TRF.
C.Aseparate account should be opened for each club-sponsoredgrant, and the name of the accountshould clearly identify its use for grant funds.
D.Grant funds may not be deposited in investment accounts including, but not limited to, mutualfunds,certificates of deposit, bonds, and stocks.
E.Bank statementsmust be available to support receipt and use of TRF grant funds.
F.The club mustmaintain a written planfor transferringcustody of the bank accounts in the event ofa change in signatories.
5.Report on Use of Grant Funds
Theclub mustadhere to all TRF reporting requirements.Grant reporting is a key aspect of grant managementand stewardship, as it informs TRF of the grant’s progress and how funds are spent.
6.Document Retention
Theclub mustestablish and maintain appropriate recordkeepingsystemsto preserve important documentsrelatedto qualification and TRF grants.Retaining these documents supports transparency in grant managementand assists in the preparation for auditsor financial assessments.
A.Documents that must be maintained include, but are not limited to:
1.Bankinformation, including copies of past statements
2.Club qualification documents includinga copy of the signed club MOU
3.Documented plans and procedures, including:
a.Financial management plan
b.Procedure for storing documents and archives
c.Successionplan for bank account signatories and retention of information anddocumentation
4.Information related to grants, including receipts and invoicesforall purchases
B.Club records must be accessible and available to Rotarians in the club andatthe request of thedistrict.
C.Documents must be maintained for a minimum offiveyears, or longer ifrequired by local law.
7.ReportingMisuse of Grant Funds
Theclub mustreport any potential and real misuse ormismanagement of grant fundsto the district. Thisreportingfosters an environment inthe club that does not tolerate the misuse of grant funds.
Authorization and Agreement
Thismemorandum of understanding is an agreement between the club and the district and acknowledgesthat the clubwill undertake measuresto ensure the proper implementation of grant activities and propermanagement of Foundation grant funds.By authorizing this document, the club agrees to comply with allof the conditions and requirements of the MOU.
Onbehalf of the Rotary Club of Club Name the undersigned agree to comply withall of the conditionsandrequirements of theMOU for Rotary year2018/19and will notifyRotary International District 6080 of any changes or revisions toclub policies and proceduresrelated to these requirements.
ADDENDUMFOR CLUBSRECEIVINGDISTRICTFLEXGRANTSONLY:
For clubsonlyreceivingDistrictFlexGrantfunds, thefollowing itemslisted inthis Memorandumof Understandingarenot required:
3.WrittenFinancialManagementPlan (howeveritems3.A;3.B.;3.C;3.D;3.E representgoodgrant managementproceduresand shouldbe followed)
4.BankAccountRequirements
6.A.3.a.FinancialManagementPlan
6.A.3.c.Successionplanfor bankaccountsignatories