Project Financial Management

1. OFRA Project inception workshop Project Financial Management 27/11/2013, NAIROBI, KENYA By Diana Nyamu

2. A. OBJECTIVES • To outline the project financial management responsibilities of the project team members • provide an overview of the project financial management systems and procedures necessary to ensure the success of the project • Outline the process for making funds request and disbursement of funds for project activities • Outline the process for spending project funds • To outline the financial reporting requirements of the project

3. B. BASIC PROJECT TEAM ROLES • Ensure adherence to the financial management guidelines • Ensure that grant funds are used in accordance with the budgets approved for the project • Safeguarding the resources used in project implementation • Planning and budgeting for project activities • Providing accurate, clear and timely reports and accountabilities of expenditures • Maintain adequate records for all project transactions

4. C. GENERAL GUIDELINES • All grant funds shall be managed from a designated bank account • The grant funds shall be used solely for the charitable purposes of the project • All equipment, materials and assets financed by the proceeds of the grant shall remain property of the financier, and shall be registered under the name of the respective National Research Institution and shall be used solely for purposes of the project • The financier, upon completion of the project, shall transfer ownership of such equipment, materials and assets to the institution's authorities such that they remain property of the National Research Institution • Any unused grant funds or income earned on the grant funds shall be returned at the end of the grant period • Goods and facilities funded by the proceeds of this grant shall be appropriately secured through relevant insurance

5. D. FUNDS MANAGEMENT1. Requirements for initial transfer • Fully signed project implementation agreement • Establishing a designated bank account for management of the project funds with a reputable bank • Appointment of the National Principal Investigator and a dedicated finance person for the project • Provision to the grantee by the Sub-grantee of the names and specimen signatures of authorised signatories to the project account • Duly filled and signed disbursement request

6. a. Conditions for replenishments 2.Replenishment of project funds • Requests for replenishments shall be done when at least 75% of the previous funds has been spent and accounted for • Replenishments shall be done against accountability documentation for expenditures not against obligations or commitments or budgets • There will be no reimbursement of expenditures exceeding the amount of approved budget. • Processing Period – at least 2 Weeks required from the date • of receipt of fund request

7. b. Documents required for replenishment • Financial report/ accountabilities for the previous disbursement with supporting documents. Support documents include ( but not exclusive to) the tender minutes, request for quotation letters, quotations, invoices and receipts • Duly completed and signed disbursement request form • c. Receipt of funds • CABI will transfer funds directly to your project account as identified in your PI appointment letter. The funds destination account shall not be changed unless fresh instructions signed by the same authority that gave the original bank instructions • The partner will then be required to complete a funds receipt acknowledgement form, confirming receipts of these funds and send the form back to CABI.

8. E. TRANSACTION EXECUTIONa. General guidelines • Separate accounting records for the project must be maintained . • All financial transactions must comply with the project agreement • Supporting documentation must be adequate for expenditures to be valid for recognition • Expenses must be monitored against activities and budgets.

9. b. Procurement procedures • Transparency: to ensure that the process is as competitive as possible and best value for money is obtained as costs are minimised • Purchasing is done within the budget, unless due authority is sought from the financier • Procurement committee

10. d. Exchange rates • In order to make a request for replenishment of the project account, eligible expenditure incurred and paid for in local currency should to be converted into the currency of the project account (USD). • The partners are encouraged to use the rate of conversion used as given in transfer of funds from the USD bank account to the local currency bank account. • The exchange rate should also be indicated in the report

11. F.REPORTING a. Reporting guidelines • Its important that all due reports are submitted in time • The reports must be forwarded in the standard formats given • Interim financial reports are due semi-annually and not later than a fortnight after the end of each reporting period. The first interim report is due before 15th Jan 2014 covering the period from inception to 31st Dec 2013. • The final financial reports shall be submitted at the end of the project not later than two months after the end of the project. It shall cover the entire period of the grant. • All financial reports shall signed by the Principal Investigator and the project Finance Officer, stamped, certified and presented with a cover letter on the official letter head of the institution • All accounting records related to the project as well as copies of reports submitted shall be retained for at least five years after the end of the project

12. b. Contents/documents of financial report • The financial report should include: • Summary financial report • Detailed financial report • Capital equipment report

13. G. AUDIT • The process of carrying out the audit shall be advised in due course once fully outlined

14. 4. TEMPLATES

15. Detailed financial report

16. Funds disbursement form

17. End • THANK YOU