ZHRC/HTI Financial Management Training

Session 5: Development Partner Relations and I-TECH Per Diem Policies

Learning Objectives

• By the end of this session, participants will be able to:

• List common terms and conditions for receiving development partner funding

• List recommended practices for producing development partner reports

• Describe I-TECH policies for receiving funds

• List key features of I-TECH per diem policies

Development Partner Relations and Reporting:

Key Financial Principles

Accountability

• Demonstrate to development partner that their funds have been used for the purposes for which they were intended

• Key reference documents for guidance on reporting• Original funding application and guidelines• Contract or agreement that was signed by

both parties• Memorandum of Understanding (MOU)

Common Terms and Conditions for Development Partner Funding

• Progress reports

• Scope and designation

• of funds

• Budget line items

• Accounting method

• Bank accounts

• External audit

• Administrative

• Overhead and allowable costs

• Depreciation policy

Development Partner Reporting (1)

• Development partners require organizations todemonstrate financial soundness before grantinga release of funds

• Development partner reports often include a budget compared to actual summary, along with a written report on the status of activities

Development Partner Reporting (2)

• Recommended practices for producing development partner reports: • Meet reporting deadlines• Produce accurate and verifiable figures• Explain significant variances• Keep the development partner informed of

potential problems• Request advice from development partners

Procedures to Access Funds fromI-TECH and I-TECH Per Diem

Policy

Procedure for Disbursement of Funds

In order for ZHRCs/HTIs to receive funds from I-TECH, the following preparations are needed:

1.ZHRC/HTI needs a bank account where I-TECH funds can be deposited

2.A focal person at the ZHRC/HTI needs to be designated. The focal person will be a signatory on the bank account and primary point of contact for I-TECH communication

3.A person needs to be designated to prepare the budget for I-TECH-funded activity

Procedures to Receive Funds (1)

• A budget per activity must be prepared, accompanied by an Advance Request form showing:

• Activity date• Amount needed• Activity code• Activity heading

• Prepared budget with actual expenditure

• The above should be approved by the ZHRC/HTI focal person prior to submitting it to I-TECH

Procedures to Receive Funds (2)

• Budget and request form must be sent to I-TECH ZHRC Program Manager

• I-TECH Program Manager will approve after full satisfaction of all necessary procedures and submit to I-TECH Finance Director

• I-TECH Finance Director will also approve

• Final approval is then needed by I-TECH Country Director

I-TECH Per Diem Policy

• I-TECH follows the Government of Tanzania policy on per diem

• Proof of salary scale is needed in order to receive the highest per diem payments

• Note: for baby sitters, I-TECH will not provide any allowance

I-TECH Coverage on Transport for Participants (1)

• Transit allowance is paid only if a participant has travelled more than six hours

• I-TECH advocates the cheapest means of transport, therefore I-TECH does not reimburse taxi charges.

• Reimbursement for airfare can only be given if the request is made in advance

I-TECH Coverage on Transport for Participants (2)

• To and from charges are reimbursed upon submission of valid tickets

• In case of fuel reimbursement, the participant must have prior approval from I-TECH Country Director or Operations Director

Recording Per diem & Transport Payments

• Should be a transport/per diem payment voucher duly signed by each participant upon receiving money

• Bus tickets should be collected and attached to the payment voucher

• Per diem disbursed as per number of days of training attended

• Travelling day’s per diem disbursed according to eligibility

Procedures for I-TECH Reconciliations

• Must be done within 48 hours after training

• All necessary documents must be signed by the ZHRC focal person, then forwarded to the I-TECH ZHRC Program Manager

• ZHRC Program Manager will forward to I-TECH Finance Director and finally the Country Director for approval

• Returned cash should be submitted to I-TECH Finance department immediately

Group Work: Itemized Budget for Training/

Action Items for Receiving Funds

Key Points (1)

• Terms and Conditions of development partner funding generally include: producing regular progress reports, following international accounting standards, and having a bank account

• For ZHRCs/HTIs to receive funds from I-TECH, a focal person at ZHRC must be designated who will be a signatory on bank account used for funding, and also be a primary point of communication with I-TECH

Key Points (2)

• I-TECH follows the Government of Tanzania per diem policy

• It is important to know and follow I-TECH per diem policies and procedures to ensure that funds are available in time for activities