SKILLS DEVELOPMENT FACILITY

1. SKILLS DEVELOPMENT FACILITY ORIENTATION OF GRANTEES IN FINANCIAL MANAGEMENT AND ACCOUNTABILITY FOR SDF GRANTS 7TH AUGUST 2019 ROYAL SUITES HOTEL-KAMPALA

2. Introduction Dear SDF grantees and the general public, this is to inform you that all our grants are free of charge. SDF team or any other persons are not supposed to charge you any fee or seek any favours from you in order to process your files or access grants. In case anybody asks you for money or consideration, call directly our Executive Director’s hotline on 0772601646 or check our website to forward your complaints at www.sdfuganda.org/complaints. You can also contact Head SDF-Ms.Ruth Biyinzika Musoke on 0754713312 or rbmusoke@psfuganda.org.ug

3. Purpose of the presentation • Have common understanding of SDF financing and accounting for the grants • Roles and obligations of grantees (implement the grant and account for funds) • Roles of SDF (Ensure financing and accountability for grants) • Guiding principles – (economy, efficiency and effectiveness) • Legal Requirements and financial Guidelines for management of the grant (FA, PFM Act 2015, Audit Act 2008, POM, Grant Agreement) • Financing and accountability requirements (details in slides) • Ineligible expenditure (details in slides) • Accountability challenges

4. General implementation guidelines • This grant is money that has been borrowed from World Bank to support private sector through skills enhancement. It is public money not free of charge. • The implementation of this matching grant shall be guided by: • Project Operations Manual available on website-www.sdfuganda.org • The grant agreement • It is therefore important for grantees to be conversant with sections of grant agreement • Any deviations from this agreement are not allowed unless they are provided for in agreement and or prior approvals obtained from PSFU.

5. Sections/Clauses in the agreement • Specific objectives, Expected output, trainees • Period of the Agreement: start date and end date(extension one month in advance) • Agreement Amount and Payment terms, Contributions: • Financial Reporting: monthly reports are expected within 10 days after end of the month or based on reporting requirement stipulated in the grant agreement • Record keeping: records are expected to be kept for seven(7) years after closure of the grant. • Assets(equipment): if SDF makes contribution toward purchase of assets to enhance training ,such assets must be identified with SDF Logos/engraved. Disposal /replacement of such assets must take place upon written approval from SDF. • Audit and procurement section., Budget re-allocations

6. General implementation guidelines cont’ • You are expected to implement within agreed timelines given that your reports are a prerequisite for SDF to get funding from the World Bank • In place we have due diligence consultants, world Bank monitoring team, M& E firm, OAG, auditors who may choose to visit any of you to check on progress. • You are therefore expected to implement all activities in grant and within agreed timelines. • It is important to follow the grant agreement and spend within agreed budget lines

7. Sharing experiences on financial systems within our organizations Assume you have received money from SDF to start a particular training: Describes procedures that you will perform to ensure that money is obtained from the bank so as to start training?

8. Disbursement/Payment methods 1.Advance payment: Part payment of a particular percentage on total grant amount based upon agreed deliverables e.g 30%, 30% and 40% 2.Reimbursement: means repaying the money already spent 3.Direct payment: SDF makes payment to service providers or suppliers on behalf of the grantee Note. The last installment shall be a reimbursement

9. Payment methods cont’s Conditions for direct payment • Evidence of proper procurement and contractual obligations with a service provider or supplier and request to SDF to make direct payment to such service provider or supplier • Special cases where large procurements are undertaken as part of project skills enhancement and a grantee requires large sums of money on first request • If the grantee fails financial capability assessment to manage SDF funds  • Possibility of fraud or miss-use of SDF funds exhibited in the first accountability submitted

10. Deliverables for the First disbursement • Notice of Award and Letter of Acceptance. • Signed Agreement. • MoU with service providers/Trainers (signed, stamped, amount, outputs. Period) • Budget and Work Plan for 1st phase of implementation. • Detailed approved budget for the SDF grant and grantee contribution. • Proforma invoices from suppliers • List of trainees(Name, NIN, Telephone numbers) • Official Request for 1stdisbursement. • Training manual • Copy TIN and certificate of registration • Bank account details (must be similar to TIN or Registration name if not then affidavit) • Evidence of registration on IFMS • Having attended orientation organised by SDF.

11. Procedure to register on IFMS • Enter and click on this link:http://41.202.233.98:222/ or type in google search MOF Supplier/Employee e-Registration • You will find "Welcome to Employee/Supplier eRegistration • Click on “new registration” or “registration amendment” depending on whether your you are registered on IFMS • Youwillbe directed toapage that asksfor your Party Type:Select supplier or Employee depending on your status. THEN enter TIN form URA

12. Procedure to register on IFMS • Enter a code generated from the system to your email used to during reg. for the TIN. • Select MoFPED, Skills Development Project leading to the next screen • Follow prompts until you complete registration. • Ensure all mandatory field of the page are filled and/or refreshed

13. Ineligible expenditure Ineligible expenditure: are expenditures not supported under SDF • Expenditures prior to agreement approval and after agreement a period • Expenditures on activities not included in the budget • Sub-contracting without approval (Sub grantee) • Capital expenditures/items or assets not related to training • Payment for facilitation to a media personnel or company apart from fees for media company • Expenditures on alcohol. • Expenditure for demonstration places like purchase of land, ploughing, weeding, hiring land e.t.c • Expenditures without receipts, requisitions, acknowledgements • Receipts that don’t show supplier contacts, name, address e.t.c

14. Ineligible expenditure continued • Budget re-allocations without prior approval by SDF • Transport allowance to trainees • Transport and travel in other cases: only as per governing rates • Night allowances in other cases only as per governing rates (UNDP partner rates-DSA, overnight) • Allowances, honorarium to officers financed under the project • Re-allocation of funds across budget lines are not accepted without prior clearance from SDF • Purchase of equipment not related to skills enhancement • Using other suppliers other than those in the quotations/pro-forma invoices attached on the request for funds without genuine explanations • Allowances, honorarium, fees, salary to officers on the project, public servants or trainers who are gov’t workers.

15. Eligible expenditures (window two)

16. Expected accountability • Official bank statement indicating movement of SDF funds and own funds. • List of equipment purchased (Item, Serial No., Amount), beneficiaries of tool kits/inputs • Minutes of project implementation committee on all procurements/service providers • Original vouchers/Invoices/receipts/Acknowledgement • Original daily attendance lists (Training dates, names, NIN, signature, telephone numbers)-verification of trainees through phone calls. • Training report (activities, budget performance and accountability, on site photos) • official submission of accountability on letter head • Accountability file must be well organized

17. Payments to Consultants/Trainers • Signed agreement/MOU specifying modules, work-plan, amount, period etc • Daily attendance sheets for any workshops held • Proper invoice and receipts • Workshop reports • Summary of evaluations of trainerand trainees • Other costs during implementation e.g. transport, accommodation, air tickets (economy) e.t.c must be supported by accountabilities • Paying of Withholding tax on any amount above One million cumulatively

18. Procurement cont’srequired documents and accountability • Requisition duly signed • Payment vouchers • Pro-forma invoices/quotations • Invoices • Delivery note • Goods received note if any • Supplier receipts/copies of EFT • Photo graphs of items for tools and equipment • List of equipments (item,Serial No., Amount • Technical verification of items procured-functioning report (infrastructures, equipment etc)

19. Accountability continues • Accountability must be submitted officially to PSFU on grantee headed letter and stamped. • Only original accountability documents(receipts) shall be accepted by PSFU. • It is advisable that grantee shall remain with photo copies of such documents • Registration of suppliers details on line:

20. M&E experiences You are a staff or field officer and you want to go for field monitoring activities. Describe the procedures that you would take to ensure that tou have successful M& E activities. How could M& E activity costs be accounted for?

21. Procurement procedures The purpose of procurement procedures is to ensure that: • Procurements are made to the maximum extent possible on a practical, open and freely competitive basis. • The grant recipient obtains the maximum value for money on all its procurements of goods and services. • Procured goods and services are delivered in the correct quantity and quality and in a timely manner. Procurement methods for SDF grantees • Shopping • Direct contracting

22. Procurements cont’s Shopping. This shall follow the request for quotations procedures as defined in the PPDA Act and Amendment regulations subject to the provisions in National Competitive Bidding(NCB) Direct contracting. This is where an entity does not go through other bidding procedures because of limited time or having a specialized procurement. • Any requests for procurement will be prepared and approved within grantee procurement guidelines. • Direct procurement for grantees is not allowed unless supported and in any other case, • procurement above Shs.500,000 (five hundred thousand shillings) must be supported with at least three (3) invoice to ensure competition.

23. PRACTICLE ASPECTS ON ACCOUNTABILITY • Salient features of an accountability; • Cash expenditure report – Summary form of the cash book. Showing expenditure as per the bank statement. Fully signed and stamped. • Budget Performance report - Showing the Budgeted Amount Vs the Actual expenditure. • Bank statements - Stamped. • Requisitions, Vouchers, receipts, acknowledgments, goods received notes, delivery notes, procurement minutes, quotations, etc • Reports; Trainers, Grantee progress report, M&E report. • Attendance and distributions lists for inputs, T-shirts etc

24. Receipt-sample

25. Invoice

26. Sample requisition

27. Sample payment voucher

28. ASSET REGISTER TEMPLATE

29. ATTENDANCE LISTS FORMARTActivity…………………Date…….Venue……

30. Budget performance report Funds Expenditure Report • Grantee name…………………………….No…………………………….Date……………… ……………………………………………..

31. Bank Statement transactions

32. Features of Good quality report • Training report • Progress report

33. Administrative procedures Administration issues

34. Accountability guidelines

35. THE END We meet as strangers, grow into a big family that is not divided by color, religion, politics & cultures. We are grateful for such an enriching opportunity, words cannot express it all. THANK YOU VERY MUCH MWEBALE NNYO, ASANTE SANA, XIE XIE