July 2013
District Financial Management Plan
Rotary District 6270
District 6270’s Financial Management Planestablishes the procedures for the administration of accounts for The Rotary Foundation(TRF) Grant Funds, transferring custody of those account(s), the document retention requirements for TRF Grant Funds, the procedure for storing those documents, the creation of an Audit committee, the report of the Audit committee as to the use of grant funds, the method of reporting and resolving misuse of Grant Funds.
ACCOUNTS FOR TRF GRANT FUNDS
It shall be the duty of the District Treasurer to maintain a standard set of accounts on software approved by both the District Governor and the District Rotary Foundation Chair, which will include a complete record of all receipts and disbursements; and to maintain receipts for all expenditures over US $75 and a written explanation of any expenditures under $75 without receipts. The District will maintain a District Account, in accordance with applicable law, to be used only for TRF Grant Funds. The account shall be non-interest bearing. The name of the account will be “Rotary District 6270 Grant Account”. Grant Funds may not be deposited in an investment account. The District Treasurer will maintain all bank statements of income and expenses relating to this account. The account signatories will be the District Governor, the District Rotary Foundation Chair and the District Treasurer. The signature of the District Governor and the District Rotary Foundation Chair are required on every check and withdrawal fromthis account. Funds will be disbursed from this account, only as appropriate and as approved in the Grant Application, directly to Clubs, Rotarians, vendors and beneficiaries. Grant Funds not immediately disbursed must be kept in the established account without diversion, except for direct payment for grant activities or to return funds to TRF.
The Treasurer will maintain separate statements of income and expenses, noting any earnings and recoveries if applicable. The Treasurer will also maintain a general ledger on the above-referenced software that separates funds according to each project. The Treasurer will establish an inventory system, the same to be approved by both the District Governor and the District Rotary Foundation Chairfor the control of equipment and other assets that may be purchased with Grant Funds and the Treasurer will maintain records for no less than seven (7) years for items that are purchased, produced or distributed through grant activities. All grant activities, without exception, must be in accordance with local law. The Treasurer will perform monthly bank reconciliations and will sign and date the bank statement indicating the day and date when the reconciliation occurred.
TRANSFERRING THE CUSTODY OF THE
ROTARY DISTRICT 6270 GRANT ACCOUNT
The plan for transferring the custody of the District Grant Account in the event of a change in leadership is as follows: The District Governor and the District Rotary Foundation Chair, as well as the District Treasurer will be authorized signatories on the account. The District Treasurer will have no authority to sign a check unless and until either the District Governor or the Rotary Foundation District Chair is incapacitated or is rendered unavailable. During the month of June of each year the incoming District Governor and the incoming District Rotary Foundation Chair, if applicable, will sign the bank signatory forms to be effective on the first day of July next. After a District Governor’s or a District Rotary Foundation Chair’s termhas ended, he or she shall cause his or her signature to be removed as an authorized signature on the District Grant Account as soon as practicable.
DOCUMENT RETENTION
All documents required to be maintained by the District must be accessible
and available to the Rotarians of District 6270, District and Club Officers, project sponsors
including Boards of Directors of participating clubs and the District Rotary Foundation Grant Sub-Committee. The originals of such documents shall be maintained for a minimum of seven
(7) years. The documents that must be maintained and available to TRF for audit include, but are not limited to: all bank account information and copies of past bank statements and documentation of change in payee signatories, if any. Other documents that shall be retained include the terms and procedures of the District’s Financial Management Plan; a general ledger explaining and itemizing deposits and withdrawals; and the procedure for storing documents and archives.
PROCEDURES FOR STORING DOCUMENTS AND ARCHIVES
It shall be the duty of the District Treasurer to maintain all the above records generated during a given Rotary year; and within five (5) business days after the commencement of the succeeding Rotary year all the above referenced documents shall be transferred by the Treasurer to the then current District Governor. Any and all records as above described in the possession of the District Governor at the end of his or her term shall be likewise transferred to that Governor’s successor as soon as practicable after the commencement of the successor’s term.
In addition to the above described documents, the records and documents required to be retained include but are not limited to the Annual Report from the District Rotary Foundation Grant’s Audit Committee; copies of all liability insurance and/or copies of traveler’s insurance policies; copy of the District Qualification Application submitted to TRF; copy of the District Qualification approval letter from TRF; documentation of grant management and qualification training for qualified clubs; copies of qualified club MOUs (the same which shall show the date when the Club received qualification status), District Grant and district-sponsored Global Grant information, including copies of all proposals and applications for District Grants and District Sponsored Global Grants; copies of all Grant Agreements; copies of all reports submitted to TRF and information collected from Clubs and entities receiving District Grant Funds, including receipts and invoices for all purchases made with grant funds and any and all written or electronic correspondence related thereto.
DISTRICT 6270 ROTARY FOUNDATION AUDIT COMMITTEE.
Theincoming District Governor shall appoint the three (3) members of the District 6270 Rotary Foundation Audit Committee. The members of this Committee must be active Rotarians who are independent and financially literate, each being a member in good standing of a different Rotary club of District 6270, at least one of whom is a current District Officer, one of whom is a Past District Governor and at least one of whom shall have professional accounting and audit experience.
The term of the Audit Committee shall be three years. The Committee may not include: members of any grant project committee or members ofDistrict Rotary Foundation Grant Sub-Committee; the DRFC Chair, the District Governor Elect, the immediate Past District Governor, or the District Governor; nor any member of the District Finance Committee,nor any Rotarian who is, or plans to be, a project contact or a recipient of grant funds during the term of the Audit Committee.
The District Rotary Foundation Audit Committee must examine all the expenditures of the Grants Account to insure that funds were used for the intended purpose, that proper records were maintained, and that a system of controls over expenditures has been in place. The examination should include: i) the selection of a sample of disbursements and reconciliation to supporting documentation; ii) a review of the full listing of expenditures to insure funds were expended in a manner consistent with the terms and conditions of the grant award; iii) identification of the purchasing procedure used; and iv) a review of the bank reconciliations to confirm that they were prepared correctly and that the opening balances match the financial records of the grant activities and bank statements.
The District Rotary Foundation Audit Committee shall make a written report of its findings to the Clubs of District 6270 within three (3) months of the completion of each Rotary year. In addition, the District Rotary Foundation Audit Committee shall verify, in its report, that the District is adhering to the document retention requirements as herein described.
REPORT ON USE OF GRANT FUNDS
The District Treasurer shall provide a report annually at a District Meeting to which members of all clubs are invited or eligible to attend which includes a breakdown of expenditures for each project that received funding and the names of Districts, Clubs, and individuals to which grant funds were distributed. This report shall also include the Report of the District Rotary Foundation Grants Audit Committee review and shall be published within three (3) months of the completion of each Rotary year. The financial information on Grants shall be included in the Governor’s monthly letter and/or, at the discretion of the Governor, on the District website.
METHOD FOR REPORTING AND RESOLVING MISUSE OF GRANT FUNDS
All reports of misuse of Grant Funds will be tracked, investigated and resolved by the District Rotary Foundation Audit Committeewith additional members appointed as appropriate by the District Governor and/or the District Rotary Foundation Chair. The procedures used will be as follows:
All reports of misuse of Grant Funds must be signed by one or more individuals involved or having any knowledge of the District’s grant activities. The District Rotary Foundation Audit Committee will conduct an investigation into all reports of misuse of grant funds.
The District Rotary Foundation Audit Committee will acknowledgereceipt of the written report of misuse in writing, a copy of which receipt will be delivered to the person or persons making the report, the District Governor and the District Rotary Foundation Chair. The District Rotary Foundation Audit Committee will conduct an investigation and produce written progress reports not less than monthly after its receipt of the report of misuse and the District Rotary Foundation Audit Committee shall produce its final written report within ninety (90) days of its receipt of the report of misuse unless an extension of thirty days or less for such filing is authorized by the District Governor for good cause. This report shall be submitted to the District Governor and to the District Rotary Foundation Chair then in office and to the District Governor and the District Rotary Foundation Chair during whose terms the Report of Misuse was filed and to the person or persons who made the Report of Misuse. In the event that the District Rotary Foundation Audit Committee determines that there was misuse or irregularities in any grant related activity, the Final Report must be submitted to The Rotary Foundation, with the District Rotary Foundation Audit Committee’s determination as to how the District should act to fairly and equitably resolve the situation.
District Financial Management Plan (July 2013)