- Disallowed Cost: USD 35,000.00
Incomplete documentation. There was no sufficient documentation to prove proper procurement procedures were followed as well as items were distributed to final beneficiaries. There were no supporting documents provided to show how the procured NFI were used/ distributed
For any NGO, this is not what you would want to see in any Project Audit.
To avoid such losses it’s important to ensure that the organization maintains documentation during and after grant management.
It’s important to also note that some donors have special requirements on how long documentation should be maintained after the grant comes to an end.
Some include:
The United States Agency for International Development (USAID) requires grantees to retain documentation for a period of three years. The documentation must be retained in a secure location and must be accessible for audits and reviews to demonstrate the proper use of funds and achievement of project goals upon request by the USAID.
Document retention requirements for EU-funded projects may vary depending on the specific program or funding instrument. However, in general, organizations receiving EU funds are expected to maintain complete and accurate records for at least five years from the end of the project. These records should cover financial, administrative, and programmatic aspects of the project.
The Gates Foundation is a prominent philanthropic organization that supports various global health and development initiatives. While their document retention requirements may vary, grantees are typically expected to retain records related to the use of grant funds and project outcomes for a specified period. These records may be subject to audits and reviews.
Here are some of the reasons why it is important to maintain documentation during and after grant management include:
- Compliance with regulations: In order to remain in compliance, grant agreements frequently involve a number of conditions that must be followed. These specifications could cover things like presenting consistent reports, supplying proof of spending, and fulfilling deadlines. Grantees can show that they are complying with the terms of the grant agreement and avert penalties by retaining documentation.
- Progress tracking: The ability to effectively monitor grant operations and the advancement of stated objectives is made possible through documentation. The grantor may be expected to receive updates on a regular basis on how the money are being used and the results attained. It is simpler to create accurate and timely reports with detailed records. This might help identify any areas where the project is lagging or for making changes to the project plan as needed.
- Results demonstration: Tracking the impact of programs sponsored by grants is made easier with documentation. Organizations can show the successful outcomes and results obtained with the grant monies by providing well-documented data and progress reports. When looking for potential financing sources in the future, this evidence may be helpful.
- Relationship-building to encourage donor retention Building confidence and credibility with donors, partners, and stakeholders involves maintaining thorough documentation. It demonstrates how well-organized, accountable, and dedicated the organization is to attaining the objectives stated in the grant request.
- Risk management: A grant-funded project’s risks can be managed via documentation. If problems do occur, having records can help with analysis and decision-making to reduce risks and guarantee project success.
- Audits: The donor or other organizations may conduct audits of grantees. Documentation can be utilized to speed up the audit procedure and show that the grant money was applied properly.
- Legal Protection: Well-documented records can be used as proof to support the organization’s position in the event of disagreements or legal concerns relating to grant activity. Additionally, it can defend the company from unfounded allegations.
Here are some examples of documentation that should be maintained during grant management:
- Grant agreement: In order to make sure that all requirements are being followed, it should be kept on file and periodically reviewed.
- Project plan: The grant-funded project’s goals, objectives, schedule, and budget are described in detail in the project plan. It ought to be updated frequently to account for adjustments made to the project.
- Financial records: It is important to keep track of all grant-related costs. Invoices, receipts, and bank statements are examples of this.
- Meeting minutes: Minutes of all meetings pertaining to the grant-funded project should be kept. Making decisions and monitoring progress can both benefit from this.
- Reports: Grantees are typically required to submit regular reports to the donors. These reports should document the progress of the project and the results that have been achieved.
- Other documents: This include correspondences, amendments to agreements, Proposals submitted, baseline surveys, assessments, visibility information and other grant related documents
By maintaining documentation throughout the grant management process, grantees can protect themselves from compliance issues, track progress, demonstrate results, and manage risks.