2011 RRFC Institute

StewardshipStewardshipHeather Fosburgh

Department Manager, Stewardship

Miri Kanemoto,Supervisor, Stewardship

What is stewardship?

The careful and responsible management of something entrusted in one’s care

Oversight

The Stewardship Department reports to Rotary International Legal Services and supports the

programs of The Rotary Foundation

• Reporting• Qualification• The Rotary Foundation Cadre• Allegations and Auditing• Stewardship Trainings

Stewardship OverviewStewardship Overview

Reporting

Fulfills government requirementsImproves Rotary’s charitable status rankingImproves donor relations

World Reporting

A district level analysis Reflects a snapshot of grant activity by districtOctober and April Grants that are in paid, funded, or reported status

World Reporting CalculationsWorld Reporting Calculations

Number of up to date, open grants x 100 =

Percentage Total number of open grants

Trustees’ expectation is 100% Minimum requirement is 70%

World Reporting TrendsWorld Reporting Trends

World Reporting Compliance Over Time

60%

65%

70%

75%

80%

85%

90%

Report Warning LettersReport Warning Letters

Keep clubs and districts informed of grant projects with overdue reports

Prepare clubs and districts to meet world reporting requirements

Series of LettersSeries of Letters

15 months Grant is overdue

18 months Warning about website posting

21 months Posted on website

24 months Reminder that next step is termination

30 months Termination

How to assist your districtsHow to assist your districts

Remind districts to request File Activity ReportsEncourage districts to create their own system to track the grantsContact the district leadership to follow up on overdue grantsAssist in coordinating communication with partner sponsor

Educate districts on the importance of reporting

Future Vision Qualification

District Qualification• Online qualification process• Implementation of district Memorandum

of Understanding (MOU)

Online Qualification Process

DG, DRFC, and DGE must complete the online process

Districts reauthorize qualification every year

A qualified district keeps its status as long as reauthorization is completed by 31 July

Implementation of District MOUImplementation of District MOU

Establish a succession plan

District bank account with two signatories

Financial management plan

Document retention system

Report annually to member clubs

Create a system to investigate reports of misuse

Qualify member clubs

Future Vision QualificationFuture Vision Qualification

Club Qualification• Attendance at grant management

seminar• Implementation of club MOU

Grant Management Seminar

• District arranges the seminar• DRFC tracks attendance at this seminar for

club qualification • Must be conducted every year

proper grant management is key to good stewardship

Implementation of Club MOUImplementation of Club MOU

Club member must be appointed to manage qualification

Establish a succession plan for transfer of grant records and bank account

Establish a financial management plan

Establish a document retention system

Report on the use of grant funds

Report any misuse of grant funds to the district

How to prepare non-pilot How to prepare non-pilot districtsdistricts

Become familiar with the new program• Resources on the website • Incorporate FV information into trainings

Begin implementation of MOU requirements• Bank accounts • Financial management plan

TRF Cadre of Technical AdvisersTRF Cadre of Technical Advisers

Rotarians who:Provide technical expertise to assist TRF TrusteesEvaluate the implementation of on-going projectsAssist Rotarians in planning and implementing projects

Location vs. AssignmentsLocation vs. Assignments

TRF Cadre of Technical AdvisersTRF Cadre of Technical Advisers

Recruitment Needs:Africa (all technical areas)Spanish speaking auditors from North America Portuguese, Korean, Japanese speaking auditorsPortuguese speaking WSE and HealthFrench speaking Agriculture/Food ProductionFuture Vision Areas of Focus

AllegationsAllegations

Reports of wrongdoing relating to Foundation grants from any source

Process of InvestigationProcess of Investigation

Review evidence and grant files

Contact district or zone leadership

Contact club leadership, suppliers, etc.

Review by TRF Trustees

Common AllegationsCommon Allegations

Diversion of funds

Ineligible contributions

False documentation

Conflict of interest

Random AuditsRandom Audits

Half a percent (0.5%) of paid grants in the Rotary year

Conducted by cadre auditors

A proactive measure to ensure proper stewardship and grant management

Common Audit FindingsCommon Audit Findings

Funds turned over to cooperating organization

Lack of participation

Lack of financial documentation

Insufficient financial management

Lack of signage

Insufficient project planning

Deviations from project budget resulting in ineligible expenses

Questions?