Good financial practices

2. Good financial practices

3. Organisation • Financial information session also to be planned for local partner institution • Locally: Flemish promoter or admin staff member at Flemish university or if cost-benefit is favourable, VLIR-UOS • In Belgium during visit of local partner: by VLIR-UOS or Flemish university • Come to firm agreements about finances in advance • Who monitors local project budget and how? • Who approves project expenditures? • Who pays invoices and checks payments? • No changes to payments to persons (allowances, personnel costs, etc) without prior approval

4. Financial procedures for project management should be drawn up • These procedures and arrangements should be approved • Make sure a sturdy internal control system is included (segregation of duties, purchase process, etc) • Come to firm agreements before project launch on: • Frequency and conditions of fund transfers from Flemish to local university • Frequency of financial reporting to Flemish university and submission of receipts • Minimum requirements for receipts, etc • Finances of VLIR-UOS projects should preferably (at least in part) be managed by financial dept of local institution (e.g. accountancy, payments), mirroring fin mgmt of other projects financed by third parties

5. Minimum requirements for VLIR-UOS Local bank account • Separate local bank account must be opened for VLIR-UOS project • At a reliable, recognised bank (for advice contact BTC, Belgian Embassy, etc) • Account holder must be local partner institution (never private person) • At least two persons who have to sign together with power of attorney on account • These persons must be authorised to represent local institution (e.g. local promoter and local co-promoter)

6. Accounts • Double entry bookkeeping preferable • More than simply completing the VLIR-UOS excel reports • VLIR-UOS excel reports should preferably be exported directly from local accountancy software • Figures reported to VLIR-UOS must match figures in accounts (North and South) • Use of financial dept of local institution (preferred) or (part time) qualified accountant specifically appointed for project

7. Budgets • Final project budget, as approved by VLIR-UOS, must be split into North and South budgets • North budget: expenditure to be paid from Flemish bank account (e.g. scholarship to Flemish university, travel costs and per diem for the Flemish promoter visiting the partner institution, etc.) • South budget: expenditure to be paid from local bank account (e.g. local operating costs, local personnel costs)

8. Financial project management considerations • Transfer funds to South in accordance with South budget • Recommendations: • Only after receipt of tripartite agreement signed by local partner • No large amounts at once (except where considerable project costs are to be paid by local partner in near future) • Only a third (second) instalment if first instalment is (partly) accounted for with regard to Flemish institution • Submit proper receipt for all expenditure • Clearly number and classify all receipts • Properly manage local budget • Keep a proper record of all advances to persons • Always check applied exchange rate stated on local bank statements

9. Close project financially with local partner at project end via final settlement (stating approved local expenditure and advances to local institution)

10. Receipts • All purchases: supplier’s tax invoice (external invoice) obligatory • Payments to persons (allowances, fees, salaries, etc): signed employment contract or signed service contract • Per diem: receipt signed by beneficiary • Declarations under oath: very exceptional, for small amounts only, approved by person with some responsibility in project • NEVER pro forma invoices (quotations)