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Example Grant Agreement Grant # 1234LHRC: 1. The Purpose of The Project

This grant agreement is between LHRC Mangoland (NGO) and the Japanese International Foundation (Donor) to provide legal advice services in target communities. The Donor will provide USD 54,954 to the NGO from July 2009 to June 2010. The agreement specifies requirements for financial reporting, procurement, auditing, and termination to ensure proper use and accounting of grant funds.

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100% found this document useful (1 vote)
106 views3 pages

Example Grant Agreement Grant # 1234LHRC: 1. The Purpose of The Project

This grant agreement is between LHRC Mangoland (NGO) and the Japanese International Foundation (Donor) to provide legal advice services in target communities. The Donor will provide USD 54,954 to the NGO from July 2009 to June 2010. The agreement specifies requirements for financial reporting, procurement, auditing, and termination to ensure proper use and accounting of grant funds.

Uploaded by

Fifi Adi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Example Grant Agreement

Grant # 1234LHRC

The Parties to this agreement are LHRC Mangoland (henceforth “the NGO”) and the Japanese
International Foundation (JIF) (henceforth known as “the Donor”).

The conditions of this agreement are set forth below:

1. The Purpose of the Project


1.1 The purpose of the project is to contribute to the provision of legal advice services to
those who have little or no access to legal representation, by delivering appropriate,
effective and sustainable support within specific target communities.
1.2 To strengthen the capacity of the NGO to implement the project, the Donor undertakes
to provide support to the NGO through technical support.

2. Amount & Time Periods


1.1 The Donor hereby agrees to grant USD 54,954 to the NGO to carry out the activities as
described in the Project Proposal and work plan. Funds granted are available to
programme expenditures as shown in the Grant Budget, Attachment A.
1.2 The effective period for the grant is from 01 July 2009 through to 30 June 2010.
1.3 Any expenditure incurred before or after the effective period of the grant is not
allowable.

3. Obligations and Disbursements


3.1 Disbursements will be quarterly in arrears following the submission and approval of the
monthly Financial Report and the quarterly Narrative reports by the NGO.
3.2 Disbursements will only be made once this agreement is signed and against an
approved Budget and work plan for the project and upon completion of a Disbursement
Request Form.

4. Banking Facilities
4.1 The NGO will maintain a separate project bank account and shall not use the Donors
funds for any other purpose other than those agreed in the Budget.

5. Fixed and Capital Assets


5.1 Capital equipment, such as vehicles (including motorcycles), computers and computer
accessories, and other light capital equipment purchased under this project agreement,
will be treated as restricted to the use of the project.
5.2 Vehicles purchased under this project agreement must be Japanese.
5.3 The NGO agrees to maintain an assets register of all items valued over USD 1,000 and
other light capital equipment such as cameras and cell phones regardless of initial
value.
5.4 The asset register must include the following asset details: description, specific
identification (e.g. serial number), date of purchase, original value including VAT
where applicable, location and/or identity of user.
5.5 On conclusion of the project, these assets may only be disposed of or transferred to
another project with the Donor’s prior written approval.

6. Procurement

Sample grant agreement


6.1 The NGO will obtain a minimum of three quotations for orders of all items valued over
USD 1,000, from reputable, independent suppliers to secure, to the best of the NGO’s
ability, value for money. The quotations should be discussed and authorised by the
procurement committee with final choice based on price, quality, delivery, and after
sales terms.
6.2 The NGO will retain all original quotations documents for inspection and document the
procurement procedures followed.
6.3 Purchases of alcohol are strictly forbidden.

7. Financial Record Keeping


7.1 All financial reports and statements are to be prepared in accordance with generally
accepted cash accounting principles.
7.2 All original receipts, paid bills and financial records substantiating grant expenditures
must be submitted with the Financial Report. The Donor will retain copies of all
receipts for their records.

8. Financial Reporting Requirements


8.1 The NGO will submit a Monthly Financial Report to the Donor by the 15th day of the
month after the month end for the previous month’s expenditure, following the
specified format.
8.2 Financial Reports will include project budget line items and reporting of expenditures
against budget items.
8.3 Financial reports will also include amounts provided by the Donor and other donors in
the cost of the project.
8.4 Financial reports will include exchange rate used for converting local currency into
USD.
8.5 A financial report will be submitted by the NGO at the end of the project.

9. Programme Reporting Requirements


9.1 The NGO will submit Quarterly Narrative Reports to the Donor which will be due on
the 15th day of the month following the end of a quarter following the guidelines
provided by the Donor.
9.2 A final narrative report will be submitted by the NGO at the end of the Project. This
will include findings from project review or evaluation.

10. Auditing
10.1 The Donor requires independently audited accounts and auditors reports within three
months of the end of the NGO’s financial year, or project year if this is different.
10.2 The annual audited accounts should be signed by the senior representative (a board
member where one exists) of the NGO and include an income and expenditure
statement, a balance sheet, notes to the accounts and the auditor’s report. Where there
are no local accounting standards, accounts should comply with the International
Accounting Standard (IAS) and must be audited in accordance with the International
Standards of Auditing.
10.3 The donor reserves the right to carry out an independent project audit at any time up to
10 years after the date of the date of submission of the final Financial Report.
The Donor must inform the NGO in writing 15 days prior to the commencement of the
audit.

Sample grant agreement


10.4 Subject to local accounting requirements, the NGO will retain all documentation
relevant to an audit for ten years after the final financial settlement of the project. These
may include:
 expense ledgers related to the project
 all invoices and receipts for expenses
 all bank statements, showing receipt of funds from the Donor and disbursement on
project activities
 proof of exchange rates used
 all original staff contracts, monthly payroll and timesheets
 all original hire contracts, including property rent and vehicle lease agreements
 all original documents pertaining to tendering and awards for supply contracts
 all original inventory lists and final stock counts for stored items

11. Obligations and Modification


11.1 The NGO agrees to expend the funds granted by the Donor, in accordance with the
agreed budget and programme of activities. Any modifications to the agreed budget or
to the agreed programme of activities must have written authorisation by the Donor.
11.2 In the event of staff recruitment for the programme the Donor has the right to appoint a
representative to the selection panel.
11.3 Funds disbursed but not expended will revert back to the Donor upon completion of the
grant period or termination of the agreement.

12. Termination
12.1 The Donor may terminate this Agreement by giving the NGO ten days notice in writing
if it is determined that the NGO is not following the Terms and Conditions of this
agreement or if it is deemed necessary by the Donor. The NGO may terminate this
agreement by giving the Donor ten days notice in writing.
12.2 In the event of termination, the Donor reserves the right to take such action as may be
necessary to recover any obligated funds or unauthorised expenditures.

13. Liability
13.1 The Donor does not assume liability for any claims for damages arising out of this
grant.

14. Attachments
14.1 All attachments to the Grant agreement are hereby incorporated as part of the
Agreement.

 Attachment A – Budget

[Signatures sheet follows here....]

Sample grant agreement

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