Description of process
Funds transfer regionally
The transfer of funds from the head office to the country office will be initiated by the HOGM based on the request of the country office. A regional transfer of the funds will take place only if: 1) minutes of the evaluation meeting and 2) copies of the award agreements are submitted to the REC head office.
A separate REC bank account for local grants payments must be established for each country office. In addition to the COCD and the financial administrator, the REC's executive director and financial manager should have signing authority on the account. Two signatures are required to authorise a funds transfer.
The grants are transferred in the currency of the donation from the head office to the country offices.
Funds transfer nationally (for country office comments)
When the required documents are received, the grant payment can be authorised by the COCD. Funds are transferred from the country office's currency (if applicable) account to the NGO's bank account. The grantee must also have a bank account. Bank transfer fees are paid by the REC. Grant awards should not be disbursed in cash or by check.
Otherwise, payment is denominated in the local currency and follows the local regulations. The COGM initiates the grants transfer. The transfer requires at least two authorised signatures, one from the country office director, the other from the financial administrator. A copy of the bank transfer order should be mailed to the NGO. All transaction records and documentation should be placed in the grantee’s file. (finance comment)
The disbursement schedule agreed in the award agreement reflects the nature of the project, the project's duration, and the timing of expenses. There are a number of options for disbursement schedules, such as:
The first payment is disbursed upon receipt of the signed award agreement. Subsequent payments are disbursed upon receipt of progress or final reports.
From this moment on the grants liability report should be sent to the head office Finance Department on monthly basis.
Task |
Responsibility |
Days |
Head office Finance Department transfers the funds to country offices. |
COGM |
|
Transfer funds (first instalment) to awarded NGOs. |
COGM |
|
Update the grants management system. |
COGM |
|
Send the grant liability report to the head office. |
COFO |
|
Related policies
Administration manual for the funds transfer to the offices.
Supporting docs
Financial