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Project Finance and Administration

By Wilfredo A Reyes

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Organization and Coordination

Finance Officer’s Role in Relation to the Project and Project Staff

Team Approach with Regards to Budgeting, Day-to-Day Operations and Financial Reporting

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Budgeting

Concepts – Budget Proposal, Budget Team, Budget Preparation

Basic Structure of Project Budgets – RAP, CAP, Equipment, Project Advisor, International Travel

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Budget Sample

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Banking

Project Bank Account

Mode of IDRC Remittance – Telegraphic Transfer or Bank Draft in Foreign Currency

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Accounts Staffing

Who will be assigned to maintain the project’s accounting records and what qualifications are required

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Project Disbursements

Expense approval – by project leader

Cheque approval – official signatories; preferably two signatures

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Project Accounting

Accounting System and Procedures – Hiring, Purchase Requisitions, Travel etc

Accounting Records – Appropriate Books of Accounts, Supporting Documents

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Financial Report

Uses – Progress Reporting; Budgetary Control

Contents – Format, Reporting Period, Actual Expenses

Estimated Expenses for the Next Payment Period

Implications of Inappropriate and Delayed Reports

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FR1

 

Project Title*:

IDRC Grant Number*:

Institution Name:

Working Currency: Currency of Bank Account:

Commencement Date:

Report No.:

Period of Actual Expenses: to

Period of Expense Forecast:to

Certification by the Institution:

Name of Project Leader Signature

Name/Title of Authorized Financial Officer Signature

Date

*The grant agreement contains this information.BA200207E

Project Information Summary (FR1)

dd/mm/yydd/mm/yy

We hereby certify that this financial report, and all its schedules, correctly and fairly reflect the expenses of the project, and more specifically the portion supported by IDRC. No expenses charged against the IDRC grant have been, or will be, recovered from another donor.

dd/mm/yy

If parallel and / or local contributions have been made to this project, please complete and return form FR5 (Notice of Receipt of Parallel Funds and Disbursement of Local Contributions).

dd/mm/yy dd/mm/yy

1Pick currency here Pick currency here

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FR2Use this format to report expenses for each budget category of your grant agreement (Number sheets 2a to 2h)

PersonnelBudget item

(List allowable expenses as per the agreement)

Totals 0 0.00 0 0

Detailed Expense and Forecast Worksheets (FR2)

For the next period

For remaining periods

Forecast of ExpendituresBudget vs. Expenses

Budgeted amount for this period

Expenses Variance

*This should correspond to a general ledger account in the recipient’s book of accounts or, where details are warranted, to a line item under an account.

Explanations and comments (mandatory if the variance total is more than 10%):

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FR3

Personnel 0 0 0 0Consultants 0 0 0 0Evaluation 0 0 0 0Equipment 0 0 0 0Travel 0 0 0 0Training 0 0 0 0Research Expenses 0 0 0 0Indirect Costs* 0 0 0 0

Totals 0 0 0 0

0.0%

0 0

BA200207E

Expense and Forecast Summary (FR3)

Budget vs. Expenses Forecast of Expenditures

Budgeted amount for this period

Expenses VarianceFor the next

periodFor remaining

periodsBudget category

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FR4Date

(dd / mm / yy)

Payment 1:

Payment 2:

Payment 3:

Payment 4:

Payment 5:

Payment 6:

Payment 7:

Payment 8:

Total 0

Cash Exchange Form

Date

Amount received from IDRC (before bank charges)* in Amount transferred in (currency

of project)Rate of Exchange

(dd / mm / yy) ??? ???

Transaction 1:Transaction 2:Transaction 3:Transaction 4:Transaction 5:Transaction 6:Transaction 7:Transaction 8:Transaction 9:Transaction 10:Transaction 11:Transaction 12:Transaction 13:

Balances in accounts: 0.00 0.00Plus interest earned:

Plus other income received:

Closing balance: 0.00 0.00

*Note: Bank charges must be treated as expenses under the Indirect Cost category.

BA200207E

0 0

Cash Receipts and Foreign Exchange (FR4)Payment Receipt Form

Please ignore the following section: Cash Exchange Form.

Opening balance =>

Amount received from IDRC(before bank charges)*

Currency in which the funds were received and held

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FR5Section 5A — Parallel funds

Date of contract

(dd / mm / yy) Amount Currency

Note:

Section 5B — Local contributions estimates (for information only)

Project period Estimated amount CurrencyYear 1Year 2Year 3Year 4Year 5Total for project 0

BA200207E 0 0

Local contributions represent cash amounts expended by the recipient from its own resources, from private grants, or from grants received from local, provincial, or national authorities for the purpose of the project. In-kind contributions such as salaries of regular staff, equipment, infrastructure, and overhead costs should not be included.

Funds pledged in signed contract

This form must be submitted if the IDRC grant was conditional on specific amounts of parallel funding being received from other donors (see Section A10.2 d of the Memorandum of Grant Conditions, or Section A6.2 d of Research Support Grant Agreement). Use this form to record all donor contributions during the life of the project.

Parallel funds represent contributions by other international funding agencies (or foundations) for the purpose of the project, whether or not stipulated in Attachment C of your grant agreement (MGC or RSGA).

Notice of Receipt of Parallel Funds and Disbursement of Local Contributions (FR5)

Name of donor(or acronym if well known)

Donor contact(Name of person)

Each time you complete this report, please list all contributions received since the start of the project. Please use an

additional sheet if you need more space.

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IDRC Financial Analysis

Approach – Variance Analysis, Cash Position, Observations

Results – Payment, Clarifications

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Budget Revisions

Horizontal Transfer

Vertical Transfer

New Line Items

Sources of Fund Transfers

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Budgetary ChangesYear 1 Year 2 Total

Salaries – Research Assistant $200 $200 $400

Research Expenses –

Casual Labour 100 80 180

Field Supplies 80 70 150

Total $380 $350 $730

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Salaries – Research Assistant $250 $150 $400

Research Expenses –

Casual Labour 130 50 180

Field Supplies 90 60 150

Total $470 $260 $730

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Recipient Contributions

Concepts – Not a Must, but Project Proposed will be Given More Weight so that Interest and Commitment to the Research is Shown

Release of National and Local Contributions

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IDRC Payments

Payments within the First Year

Interim Payments

Final Payment

Emergency Payment

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Milestone

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Milestone notes

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Payments1. Initial $50,000

2. Auto 60,000

3. Reports 30,000

4. Auto 40,000

5. Reports 30,000

6. Auto 20,000

7. Final 10,000

Total $240,000

1 – 6 $230,000

Expenses 235,000

Final Payment $ 5,000

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Foreign Exchange Fluctuations

Importance of Local Currency Budget – Basic for Measuring Exchange Difference

Exchange Gain – May be Ploughed Back to Project for Reallocation

Exchange Loss – Budget Savings Sometimes Provide Cover