Gwmaw Grant Policy

GOD WILL MAKE A WAY MINISTRIES GRANT MANAGEMENT POLICIES & INTERNAL FINANCIAL CONTROLS

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TABLE OF CONTENTS CHAPTER ONE 1.0 1.1 1.2 1.3 1.4 1.5

BACKGROUND PURPOSE AUTHORIZATION BOARD RESPONSIBILITY EXCEPTIONS CONSISTENCY OF FINANCIAL STANDARDS OF GWMAW

CHAPTER TWO 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8

PRE-GRANT POLICY PURPOSE DEFINITION PROPOSAL PROJECT BUDGET AND SCOPE REVISION PROJECT REPORTING REQUIREMENTS SIGNATORY TO GRANT AGREEMENT WORKING ASSUMPTION UPON SIGNING OF A GRANT AGREEMENT UNMITIGABLE CIRCUMSTANCES

CHAPTER THREE 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15

DEFINITIONS & GENERAL FINANCIAL GUIDELINES MANDATORY COSTSHARING VOLUNTARY COSTSHARING COMMITTED COSTSHARING COSTSHARING (COSTMATCHING) UNCOMMITTED COSTSHARING PERCENTAGE COSTSHARE (COSTSHARING EFFORT) COSTSHARING MONITORING ALLOWABLE COSTS (ALLOCABLE COSTS) UNALLOWABLE COSTS (DISALLOWED COSTS) DEPRECIATION COST DIRECT COSTS INDIRECT COSTS (FACILITIES & ADMINISTRATION (F&A) COSTS) PROJECT CLOSURE PROJECT COMPLETION DATE EQUIPMENT

3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 3.37 3.38 3.39 3.40 3.41 3.42 3.43 3.44 3.45 3.46 3.47 3.48 3.49 3.50 3.51 3.52 3.53 3.54 3.55 3.56 3.57 3.58 3.59 3.60 3.61 3.62 3.63

SUPPLIES GRANT PERIOD PROJECT INCOME PROJECT COSTS (ALLOCABLE COSTS) MINOR GRANT (DONATION) MODERATE SIZE GRANT (DONATION) MAJOR GRANT (DONATION) GRANT SUSPENSION GRANT CANCELLATION IN-KIND DONATIONS CASH DONATIONS CORE BUDGET PROJECT BUDGET INDIRECT COST (FACILITIES AND ADMINISTRATION) RATE RECOVERED INDIRECT COST RATE UNRECOVERED INDIRECT COST RATE ELECTRONIC FUNDS TRANSFER (WIRE TRANSFER) BANK CHARGES RATE DEDICATED PROJECT BANK ACCOUNT AUTHORIZED BANK ACCOUNT SIGNATORIES ANNUAL AUDITING OF BOOKS OF ACCOUNTS REMUNERATION STAFF EFFORT CHARGED (STAFF EQUIVALENT TIME) MINOR PROJECT MEDIUM SIZED PROJECT MAJOR (BIG/LARGE) PROJECT PROJECT MANAGEMENT EFFORT (PME) AUTHORITY TO INCUR EXPENSES (AIE) BUDGET OVER-RUN BUDGET NARRATIVE (JUSTIFICATION) NEGOTIATED VENDOR DISCOUNT. LIST OF APPROVED (ENDORSED) VENDORS LIST OF APPROVED PRICES BILL OF QUANTITIES FIRM PRICE QUOTATION (QUOTE) APPROVED MILEAGE CLAIMS RATE. MONITORING AND EVALUATION COST RATE PROJECT CADRE RECRUITMENT COST RATE FUNDRAISING COST RATE PROJECT TRAINING COST RATE MAXIMUM STARTING TIME (MST) MAXIMUM CLOSEOUT TIME (MCT) EXTERNAL AUDITORS FEE RATE (EAFR) AUTHORIZED INDIRECT COST (AICR) RATE CONFLICT OF INTEREST ANNUAL APPROVED SALARIES AUTHORIZED EMPLOYEE BENEFIT RATE (AEBR) ANNUAL SALARY INCREMENT RATE

3.64 3.65 3.66 3.67 3.68 3.69 3.70 3.71 3.72 3.73 3.74 3.75 3.76 3.77 3.78 3.79 3.80 3.81 3.82 3.83 3.84 3.85 3.86 3.87 3.88 3.89 3.90 3.91 3.92 3.93 3.94 3.95 3.96 3.97 3.98 3.99 3.100 3.101 3.102 3.103 3.104 3.105 3.106 3.107 3.108

ANNUAL SALARY INCREMENT DATE IN-KIND DONATIONS PERCENTAGE SKILLED LABOUR DONATIONS UNSKILLED LABOUR DONATIONS BUDGET VARIANCE PERCENT AUTHORIZED EXTERNAL CONSULTANT CHARGE RATE AUTHORIZED MINIMUM BENEFICIARY CONTRIBUTIONS RATE (AMBCR) VERIFIED COMMITTED COMMUNITY COSTSHARING PROJECT DISSEMINATION GUIDELINES RELOCATION ALLOWANCE STAFF BENEFITS MAXIMUM PROJECT SALARY & BENEFITS CHARGE RATE EFFORT DISTRIBUTION GUIDELINES FOR CEO AND SENIOR MANAGERIAL STAFF LEAVE ALLOWANCE CHARGE RATE INDIRECT COST SHARING BETWEEN VARIOUS PROJECTS OVERTIME STAFF EFFORT COST RATE PROJECT COMMUNICATIONS COST RATE OVERHEAD COST GUIDELINES EXISTING PROJECTS EFFORT DISTRIBUTION GUIDELINES PROJECT EFFORT DURATION RATES BENEFICIARY SPONSORSHIP COST (IN KENYA SHILLINGS) MARKET APPARENT INTEREST RATE CONTINGENCIES COST RATE PETTY CASH VAT DEPRECIATION COST RATE MAINTENANCE COSTS INSURANCE COST RATE THIRD PARTY CONTRIBUTIONS FISCAL YEAR GWMAW SUBSCRIPTIONS COST RATES. BUDGET NARRATIVE (JUSTIFICATION) PROJECT ADMINISTRATIVE INTENSITY GUIDELINES ON HOW TO CHARGE FOR COSTS PROJECT RESULTS AND DISSEMINATION GUIDELINES PER DIEM PAYMENT GUIDELINES FINANCIAL DISCLOSURE STATEMENT ALLOCABLE COST (PROJECT COST/DIRECT COST). DOUBLE COUNTING (DUPLICATING COST) AUTHORIZED MINIMUM COSTSHARE PERCENTAGE PROJECT SELECTION CRITERIA PROJECT SUSTAINABILITY GUIDELINES PROJECT DELIVERY EFFICIENCY GUIDELINES PROJECT ACCOUNTABILITY AND TRANSPARENCY GUIDELINES PROJECT BENEFICIARY SELECTION GUIDELINES

CHAPTER FOUR 4.0 4.1 4.2 4.3 4.4 4.5 4.6

FINANCIAL REPORTING POLICY PURPOSE RESPONSIBILITY FREQUENCY OF REPORTING PERFORMANCE REPORT RECORD RETENTION AND ACCESS FINANCIAL AUDITING

CHAPTER FIVE 5.0 5.1 5.2 5.3

PROPERTY MANAGEMENT POLICY PURPOSE DEFINITION INSURANCE COVERAGE

5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12

REAL PROPERTY (AND PROPERTY WHOSE VALUE EXCEEDS 1000 DOLLARS). GENERATION OF INCOME USING PROJECT PROPERTY. REPLACEMENT OF PROJECT PROPERTY NO LONGER REQUIRED PROJECT EQUIPMENT KEEPING OF EQUIPMENT RECORDS SAFE KEEPING OF EQUIPMENT AND OTHER PROPERTY TRANSFER OR RETURN OF PROJECT PROPERTY TO THE SPONSOR. INTANGIBLE PROPERTY PROPERTY TRUSTEES

CHAPTER SIX 6.0

PROCUREMENT POLICY

6.1 PURPOSE 6.2 DEFINITION 6.3 CONTRACTUAL RESPONSIBILITY 6.4 BRIBERY IN PROCUREMENT 6.5 CONFLICT OF INTEREST 6.6 OPEN INVITATION OF SUPPLIER COMPETITION 6.7 CATEGORIES OF PURCHASES 6.8 LIST OF ENDORSED SUPPLIERS OF SMALL PURCHASES 6.9 PRICE QUOTATIONS AND AWARDS OF TENDERS FOR LARGE PURCHASES 6.10 GENDER MAINSTREAMING IN THE PROCUREMENT OF TENDERS FOR LARGE PURCHASES 6.11 PREPARATION OF PROCUREMENT INSTRUMENTS 6.12 PREPARATION OF BUDGET PROPOSALS

CHAPTER SEVEN 7.0

PROJECT INCOME UTILIZATION POLICY

7.1 PURPOSE 7.2 DEFINITION 7.3 SOURCES OF PROJECT INCOME 7.4 OWNERSHIP OF PROJECT INCOME 7.5 USES OF PROJECT INCOME 7.6 REPORTING RESPONSIBILITY OF THE PROJECT INCOME 7.7 PROJECT INCOME EARNED AFTER THE END OF THE PROJECT OR SPONSORSHIP PERIOD. 7.8 COMPUTATION OF PROJECT INCOME 7.9 NO LONGER NEEDED PROJECT EQUIPMENT AND SUPPLIES CHAPTER EIGHT 8.0

DIRECT PROJECT ADMINISTRATION COST CHARGING

8.1 8.2 8.3 8.4 8.5 8.6 8.7

PURPOSE IDENTIFICATION OF THE DIRECT PROJECT ADMINISTRATION COSTS CEILING DIRECT PROJECT ADMINISTRATION COST BUDGET JUSTIFICATION ADMINISTRATIVE INTENSITY ADMINISTRATIVE CHARGING CHECK LIST PROJECT ADMINISTRATION COST SHARING

CHAPTER NINE 9.0

COST SHARING POLICY

9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11

PURPOSE DEFINITION COMMITTED COST SHARING BUDGET COST SHARING BUDGET ACCOUNT COST SHARED DIRECT COSTS COST SHARED INDIRECT COSTS FACILITIES AND ADMINISTRATION COSTS ACCOUNTING FOR COST SHARING UNALLOWABLE COST SHARING FUNDING OF COSTSHARING ACCOUNT REVISION OF COSTSHARING BUDGET

9.12 9.13 9.14 9.15 9.16 9.17 9.18

REPORTING COST SHARING VOLUNTARY COSTSHARING BY GWMAW COSTSHARE BUDGET OVER RUNS OFFICE RENT CHARGING GUIDING PRINCIPLES IN GWMAW COST SHARING SOURCES OF FUNDS FOR COSTSHARED EXPENSES USE OF THE PROJECT INCOME IN THE CONTINUED FUNDING OF THE PROJECT

CHAPTER TEN 10.0

PROJECT CLOSEOUT POLICY

10.1 10.2 10.3 10.4 10.5

PURPOSE DEFINITION CLOSEOUT PERIOD CLOSEOUT RESPONSIBILITY FINANCIAL PROJECT REPORT

CHAPTER ELEVEN 11.0

BOARD OF DIRECTORS GRANT MANAGEMENT POLICY

11.1 11.2 11.3 11.4 11.5 11.6 11.7

PURPOSE MANAGERIAL STRUCTURE FINANCIAL MANAGEMENT POLICY PROJECT PROPOSAL FORMATION PROPOSAL COSTS ALLOWABILITY AND ALLOCABILITY GRANT MISAPPROPRIATION FINANCIAL MONITORING AND REPORTING RESPONSIBILITIES

CHAPTER TWELVE 12.0

TERMS OF SERVICE FOR GWMAW STAFF

12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9

GRADES DUTIES OFFICIAL HOURS OVERTIME SALARY SCALES INCREMENTAL DATE ALLOWANCES OTHER CADRE OF EMPLOYMENT TERMINATION OF EMPLOYMENT

12.10 12.11 12.12

SICK LEAVE MATERNITY LEAVE NORMAL LEAVE

CHAPTER ONE 1.0

BACKGROUND

1.1

Purpose

The purpose of these grant management policies are to ensure that there is consistency and uniformity in the preparation, administration and reporting of the core and project budgets of GWMAW. 1.2

Authorization

These policies are issued under the Authority of the Board of Directors of God Will Make A Way (GWMAW) Humanitarian Ministries. The policies were approved by the Board on 8 December 2008 and came into effect immediately. The policies were revised by the Board on _________________________ and ________________. Since then there have been no other revisions. Certified as the correct position by the Secretary to the Board. Albert Kenyani Inima Date: 7 March 6, 2009 Board Seal _______________________________________ 1.3

Board Responsibility

The Board of GWMAW will review the implementation of these financial policies from time to time, and will provide interpretation of the policy requirements in order to give efficient implementation to the coordinator and staff.

1.4

Exceptions

Except as provided in these policies, all budgets of GWMAW will be made in accordance with these policies. Exemptions will only be made where a sponsor explicitly specifies requirements that differ from the standards provided in these policies, and where such justification is necessary to proceed with the programs of GWMAW. In all other cases the implementing staff of GWMAW shall not specify additional or inconsistent requirements, except as provided in these policies. 1.5

Consistency of financial standards of GWMAW

A main purpose of these policies is to ensure that the costs incurred for the same purpose under like circumstances shall be consistent between various projects undertaken by GWMAW. The same costs shall not be charged as both direct and indirect costs.

CHAPTER TWO 2.0

PRE-GRANT POLICY

2.1

Purpose

The purpose of this policy is to guide the process of GWMAW entering into agreement with project sponsors. 2.2

Definition

The pre-grant period is the period between the submission of a project proposal to the donor and the date the agreement signed between GWMAW and the sponsor to provide a grant is honored. 2.3

Proposal

Board approval is required before submission of a proposal to a potential sponsor. To guide this process all proposals shall bear the following points:-

(a) A Board of Directors seal to signify approval of the proposal by the Board. (b) A statement to confirm the project budget has been prepared in accordance with the Grant Management Policies of GWMAW. (c) A statement to confirm the project proposal has been prepared in accordance with the Strategic Plan and Annual Plan of Operation of GWMAW. (d) A statement about the bank account and signatories who will operate the requested grant. (e) An obligatory declaration by an authorized official of the Board of Directors to confirm that these details have been verified. The declaration shall read:“With my signature below, I confirm the truth and accuracy of the information given in this application. I, the undersigned, confirm that I’m entitled to represent GWMAW and this project.” Name ________________________________________________ Signature _____________________________________________ Position ______________________________________________ Date _________________________________________________ 2.4

Project budget and scope revision

In the event that the proposed project budget and scope is revised by the sponsor, the Board, or the Executive Committee, sitting on its behalf, shall convene to decide on the implications of the revision to GWMAW, and whether or not to accept to enter into an agreement with the sponsor of the project. 2.5

Project reporting requirements

The Board of Directors of GWMAW shall confirm that adequate project reporting requirements are in place before signing the agreement to accept the grant from a sponsor. Nonetheless, where a sponsor’s financial reporting requirements are not specified, the grant management policies of

GWMAW shall prevail. 2.6

Signatory to grant agreement

The signatory to the grant shall be the Board of Directors, as embodied in the person of the Chair, or by the coordinator on delegated authority from the Board, or by both. 2.7

Working assumption upon signing of a grant agreement

Upon signing the grant, GWMAW shall proceed to implement the project on the assumption that the sponsor shall not impose any additional conditions that may conflict with those already given, unless it is otherwise mutually agreed upon by both parties. The terms and conditions of the signed agreement shall be binding to both parties. 2.8

Immitigable circumstances

GWMAW may request the sponsor to revise the project budget in the event that immitigable circumstances have occurred, such as:(a) Over delay in the disbursement of the grant resulting in dishonored agreements with vendors of the project. (b)

Foreign exchange fluctuations.

(c)

Natural disasters that affect the scope of the project.

CHAPTER THREE 3.0

DEFINITIONS & GENERAL FINANCIAL GUIDELINES

3.1

Mandatory Cost sharing

This is the cost sharing demanded by a project sponsor as a condition for obtaining a donation.

3.2

Voluntary Cost sharing

This is the cost sharing offered by GWMAW in a project that has not been made a condition by other sponsors of the project. This is also the cost sharing offered by GWMAW over and above that demanded by the other sponsors of a project. 3.3

Committed Cost sharing

This is the cost sharing that has been approved and budgeted for by the Board of Directors of GWMAW. 3.4

Cost sharing (cost matching)

This is the sharing of GWMAW in the project budget with the other sponsors. Also referred to as self-sponsorship or own cost bearing. Comprises of in-kind or cash participation of GWMAW in the project. 3.5

Uncommitted Cost sharing

This is the cost sharing of GWMAW in a project over and above the level approved by the Board of Directors. This is the necessary to offset contingencies and other immitigable that may occur during the execution of the project. 3.6

Percentage Cost share (cost sharing effort)

This is the percentage of the project budget being funded from the internal resources of GWMAW. This is the also known as cost sharing effort. 3.7

Cost sharing monitoring

The keeping of records to ensure that committed cost share percentage of GWMAW, both cash and in-kind, is utilized on the project. 3.8

Allowable costs (allocable costs)

These are the Project costs that are permitted for funding by the donor of a project. 3.9

Unallowable Costs (Disallowed Costs)

Project costs that a donor of a project prohibits from utilization of their donated funds.

3.10

Depreciation cost

This is the cost that must be factored into the project to enable equipment being used to be replaced at the end of their working life. 3.11

Direct Costs

These are the labor and material costs that are expended on the project to produce the desired objectives (benefits). 3.12

Indirect Costs (Facilities & Administration (F&A) Costs)

The costs that are borne by GWMAW on maintaining its own equipment and meeting its own administrative overheads as a result of participation in a project, and which may not be explicitly allocable to the project. 3.13

Project Closure (Closeout/wrap up/conclusion/end)

This is the process of ensuring that all administrative activities including financial accounting have been completed by both GWMAW and the sponsor of a project before concluding the project. 3.14

Project Completion date

The date on which all work for the project is completed, and the project sponsorship ends. 3.15

Equipment

Defined by GWMAW as any non-expendable supply having a lifetime of more than one year and an economic value of not less than 10 dollars (lower limits may be permitted to comply with a donor requirements). 3.16

Supplies

Defined by GWMAW as any expendable supply, or property having a lifetime of less than one year or an economic value of less than 10 dollars (higher limits may be used to meet specific donors? requirements). 3.17

Grant Period

The period during which committed funding is expected to come from the

sponsor of the project. 3.18

Project Income

This is the income generated by GWMAW as a result of a project. 3.19

Project Costs (allocable costs)

These are all allowable costs of a project as approved in the project proposal and contractual agreement with the project sponsor. 3.20

Minor Grant (donation)

This is defined by GWMAW as all donations not exceeding 10 dollars in a year (come from minor donors). 3.21

Moderate Size Grant (donation)

This is defined by GWMAW as all donations of amounts ranging from 10 dollars to 100 dollars per year. 3.22

Major Grant (donation)

This is defined by GWMAW as all donations of an annual amount exceeding 100 dollars (come from major donors) per year. 3.23

Grant Suspension

The temporary withdrawal of a donor until certain pre-agreed conditions have been met. 3.24

Grant Cancellation

This is the termination of a grant by a sponsor due to gross violation of pre-agreed conditions. 3.25

In-kind donations (sponsorship/contributions)

These are the contributions of labour, space or materials as part of your participation in the project. 3.26

Cash donations (sponsorship/grant/contributions)

Donations of cash to GWMAW to meet its core or project budget. 3.27

Core budget

The administrative budget of GWMAW. 3.28

Project budget

The budget necessary for GWMAW to undertake development projects in its constituency. 3.29

Indirect Cost (Facilities and administration) Rate

A percentage charged to the project budget to cover the indirect costs of GWMAW on a project. Currently, stands at 10%, with a minimum of 10$. 3.30

Recovered Indirect Cost Rate

The portion of the indirect costs that the project sponsors have agreed to fund. 3.31

Unrecovered Indirect Cost Rate

The portion of the indirect costs that will not be funded by the project sponsors, but have to be met by GWMAW as own cost sharing. 3.32

Electronic funds transfer (wire transfer)

A computerized transfer of the grant to the account of GWMAW. 3.33

Bank Charges Rate

The charges levied on the withdrawals and the deposits of a grant by the bank. Currently standing at 11% or a minimum of 10$. 3.34

Dedicated Project Bank Account

A bank account set aside for the purpose of managing the grant from a given sponsor. 3.35

Authorized Bank Account Signatories

Those persons authorized by the Board of Directors of GWMAW to operate its bank accounts. 3.36

Annual auditing of books of accounts

The checking of statements of expenditure to ensure compliance with the financial policy of GWMAW and its sponsors. 3.37

Remuneration

The salaries and benefits approved by the Board of GWMAW for payment to its staff, volunteers or consultants. 3.38

Staff Effort Charged (Staff Equivalent Time)

The estimated percentage of the time a staff will devote to a given project. Staff week is equal to 40 hours. 3.39

Minor Project

Defined by GWMAW as a project whose duration is less than one year and budget is less than 5,000 dollars. 3.40

Medium Sized Project

Defined by GWMAW as a project whose budget is between 5000 and 10 000 dollars, and duration is less than 3 years. 3.41

Major (big/large) Project

Defined by GWMAW as a project whose budget is more than 10 000 dollars. 3.42

Project Management Effort (PME)

Defined by GWMAW as the effort expended by senior managers on a project to ensure its successful delivery. GWMAW MPDE guidelines are:· Minor projects (20%, or a maximum of 2 hours per day) · Medium projects (25% or a maximum of 3 hours per day) · Large projects (more than 4 hours per day) 3.43

Authority to Incur Expenses (AIE)

Permission by the Board to make purchases of labour or materials, pending the arrival of funds. 3.44

Budget Over-Run

Expenditure beyond the level provided for and agreed by the project sponsors. 3.45

Budget narrative (justification)

An explanation of the calculation as well as the basis of the various items in the budget. 3.46

Negotiated Vendor Discount.

The savings made on the project budget as a result of GWMAW negotiating for special prices below the going market prices. Regarded to be a part of own cost haring. 3.47

List of approved (endorsed) vendors

The list of vendors approved by the Board of GWMAW for the supply of project commodities. 3.48

List of approved prices

The list of commodity and service prices approved by the Board of GWMAW for a given quarter of the year. 3.49

Bill of quantities

The list of materials required to undertake a given project. 3.50

Firm Price Quotation (quote)

A guarantee by the supplier to offer goods or services at an agreed amount if purchases are made in the defined period and quantities. 3.51

Approved mileage claims rate.

The travel and transportation costs rates approved for charging on projects by the Board of GWMAW. Currently stands at 40 shillings per kilometer.

3.52

Monitoring and Evaluation Cost Rate

The maximum rate approved by the Board of Directors of GWMAW for charging for M & E on projects. Currently the M & E charge rate are:· · ·

Minor projects (5%, or a maximum of 1000 dollars). Medium projects (10%, or a maximum of 2000 dollars). Major projects (a maximum of 15%).

M&E costs must be justified by a narrative. 3.53

Project cadre recruitment cost rate

The maximum rate approved by the Board of GWMAW for charging recruitment costs associated with project personnel and volunteers. Currently the recruitment cost rates are: · · ·

Minor projects (2%, or a maximum of 200 dollars). Medium project (2%, or a maximum 500 dollars). Major projects (maximum of 3%).

3.54

Fundraising Cost Rate

The maximum rate approved by the Board for charging for project budget fundraising costs. Currently the fundraising cost rates are:· Minor projects (5%) · Medium projects (5%) · Major projects (5%) 3.55

Project training cost rate

The maximum rate approved by the Board of GWMAW for charging for training of project beneficiaries. The current project training cost rates are:· Minor projects (10%) · Medium projects (10%) · Major projects (10%) These rates do not apply to capacity building projects in which training is the main component. 3.56

Maximum Starting Time (MST)

The maximum preparation time approved by the Board before the official

commencement of the sponsored project. Currently, the MST rates are:· Minor projects (2 months) · Medium projects (3 months) · Major projects (6 months) 3.57

Maximum Closeout Time (MCT)

The maximum time required to bring a project to a conclusion as approved by the Board of GWMAW. Currently, the MCT rates are:· · ·

Minor projects (2 months) Medium projects (3 months) Major projects (3 months)

3.58

External Auditors Fee Rate (EAFR)

The maximum rate approved by the Board to pay for the preparation of books of accounts for a sponsored project. The current EAFR are:· · ·

Minor projects (150 dollars) Medium projects (300 dollars) Major projects (1000 dollars)

3.59

Authorized Indirect Cost (AICR) Rate

The maximum cost rate percentage approved by the Board for charging on the project budgets. The current AICR is 10%. 3.60

Conflict of Interest

The participation in decision making on a matter in which you have personal stakes. GWMAW does not allow for conflict of interest. 3.61

Annual Approved Salaries

The staff salaries for a given year as approved by the Board of Directors of GWMAW. 3.62

Authorized Employee Benefit Rate (AEBR)

The percentage of the salary approved by the Board to be paid as staff benefits. Currently the AEBR is 25%. AEBR covers housing, commutation, medical, and life insurance.

3.63

Annual Salary Increment Rate

Rate of annual increase of salary as approved by the Board. 3.64

Annual Salary Increment Date

Date upon which salaries are adjusted upwards as approved by the Board. The current annual salary increment dates are 1 July and 1 January. 3.65

In-kind donations percentage

Percentage of project budget that will be funded through donations of space, labour and materials made to a project by GWMAW, or other project sponsors and the project beneficiaries. 3.66

Skilled labour donations

Donations of unpaid skilled manpower to a project at rates approved by the Board. 3.67

Unskilled labour donations

Donations of unskilled labour to a project at rates approved by the Board of GWMAW. 3.68

Budget Variance Percent

The difference between expenditure and the approved budget expressed as a percentage. 3.69

Authorized External Consultant Charge Rate

The maximum rate at which to charge for consultants as approved by the Board. The current rates are:· · ·

Minor projects (one consultant, 2 months, 1000$) Medium projects (one consultant, 3 months, 3 000$) Big projects (two consultants, 3 months, 10 000$)

3.70

Authorized Minimum Beneficiary Contributions Rate (AMBCR)

The minimum contribution of the beneficiaries to the project budget as

approved by the Board. The current rate is 5%. 3.71

Verified Committed Community Cost sharing

Committed cost sharing expected from the beneficiary as verified from any of the following:· · ·

Community leader meeting with GWMAW Minutes of community group meeting Bank accounts of community group

3.72 Project Dissemination Guidelines Guidelines given by the Board to ensure the lessons learned are shared with stakeholders. The guidelines are meant to direct the choice of dissemination media. 3.73

Relocation Allowance

The maximum cost of relocating a staff from one station to another at which he will be based on a full-time basis. Also means the cost of relocation of a new staff. The current allowance rate is at 100% of the staff basic monthly salary. 3.74

Staff Benefits

Extra allowance paid to a staff to cater for housing, medical, travel and insurance. 3.75

Maximum Project Salary & Benefits Charge Rate

Maximum percentage of project budget that can be used on salaries and benefits as approved by the Board. The current rates are:· · ·

Minor projects (25%) Medium projects (20% - 25%) Big projects (20%)

3.76

Effort Distribution Guidelines for CEO and Senior Managerial Staff

The effort of CEO will be distributed as follows:20% - new programs 80% - existing programs (to be shared on a pro-rate basis taking into account the project budgets).

Staff effort is calculated at 8 hours per day on a 20-day working month (160 hours). The hour effort is charged at monthly salary divided by 160. 3.77

Leave allowance charge rate

All staff are entitled to one month leave. During the leave staff are entitled to earn their full salary and benefits. An extra allowance of 50% of basic salary is paid as leave allowance. 3.78

Indirect cost sharing between various projects

Guidelines from the Board to direct the sharing of F & A costs between various on-going projects. The present guidelines are:20% - Devoted to the search for new projects 80% - Devoted to existing projects and shared on a pro-rata basis taking into account project budgets. 3.79 Overtime staff effort cost rate The Board recommended cost rate for payment of overtime staff effort. The Board approved current rates are 125% of the regular equivalent staff payment rate. 3.80

Project Communications Cost Rate

Maximum annual rate to be charged for the purpose of reporting the project results and lessons learnt to the stakeholders. The current guidelines are:· · · · · · · · · · · · ·

Internet medium ( 5 00$) TV (1 000$) Radio ( 5 00$) Newspapers (1 000$) Workshops (10 000$) Board meetings (5 000$) AGM (10 000$) Printed booklets and publications (5 000$) Outdoor advertising (1 000$) Direct mail (1 000$) Video recording (1 000$) Photography (500$) Telephone (10 000$)

3.81

Overhead Cost Guidelines

Maximum annual rates to be spent on overheads as approved by the Board. The current guidelines are:· · · · · · · · · · ·

Security (1 200$) Legal charges (1 000$) Insurance (1000$) Bank charges (1% of the grant) Depreciation of office equipment (25% per year) Electricity bills (1 200$) Water bills (1 200$) Telephone (1 200$) Rent (10 000$) Postal box charges (20$) Entertainment/celebration (500$)

3.82

Existing projects effort distribution guidelines

The distribution of effort of the staff and management of GWMAW as directed by the Board. The current guidelines are:Evangelism ( 30%) Capacity building (20%) Humanitarian Services (30%) ICT (10%) Evaluation ( 10%) 3.83

Project effort duration rates

Maximum rates recommended by the Board for charging on field projects. Current rates are:Minor projects (Start up (2 months), Execution (9 months), Commission (3 months), Closure (2 months)). Big projects (Start up (6 months), Execution (3 years), Commission (1.25 year), Closure (3 months)). Medium projects (start up (3 months), Execution (2 years), Commission (6 months), Closure (3 months)). 3.84

Beneficiary Sponsorship Cost (in Kenya Shillings)

The maximum recommended sponsorship costs by the Board for project beneficiaries are:· · · · · · · · · · · · · · ·

Child sponsorship ( 1,000/- p.m.) Secondary school fee assistance per student (25 000/- p.a.) Anti-Retroviral Therapy (6 000/- p.a.) Family food assistance per person ( 20/- per day) Water project per person served (1 000/-) Microloan scheme per person (20 000/-) Tool bank per person (1 000/-) Medical assistance per person (200/- p.m.) Clothing assistance per person (500/- p.a.) Housing assistance per family ( 12 000/- p.a.) Non-formal training school (1 000 000/-) Bus transport fare assistance ( 2/- per kilometer) Per diem per project beneficiary ( 1 000/- per day) Community leader honorarium (1 000/- per day) Field office rent (5 000/- p.m.)

3.85

Market Apparent Interest Rate (i)

The current market interest charge rate is 19%p.a. Market Inflation Rate (i) The current market inflation rate is 22% p.a. Endowment growth rate Income from endowments to GWMAW calculated at the real market interest rate. 3.86

Contingencies Cost Rate

Where the Board has approved the project to have unforeseen contingencies, they will be charged at a maximum of 1% of the total project budget. 3.87

Petty Cash

The maximum petty cash kitty shall be 15 000/- replenishable on completion. 3.88

VAT

VAT charges shall be calculated at 18% of the price of material and equipment supplies. Tax Collection Salaries and benefits shall include a tax computation (to be considered at 20% unless otherwise specified). 3.89

Depreciation Cost Rate

Depreciating equipment is cost at a depreciation rate of 25% p.a. if its lifetime is 4 years or less, and 15% if the lifetime is 4 to 10 years. Equipment of a lifetime of over 10 years is depreciated at 10% p.a.

3.90

Maintenance Costs

The annual maintenance costs of moving equipment such as vehicles are charged at a maximum of 10% of its value. 3.91

Insurance Cost Rate

Insurance is calculated at a maximum of 10% of the cost of the equipment. 3.92

Third Party Contributions

The value of contributions made by the other sponsors. Third party contributions may be in the form of cash, real property, equipment, labour, supplies and expendable property. 3.93

Fiscal Year

The reporting year for GWMAW. Currently the reporting year is August to September. 3.94

GWMAW subscriptions cost rates.

The current maximum rates approved by the Board are:·

Minor projects (200$)

· ·

Medium Projects (400$) Big projects (800$)

3.95

Budget narrative (justification)

An explanation of how the various budget items were calculated, their justification, basis and where the funding will come from. 3.96

Project Administrative Intensity

To ensure the proper management of projects, the Board of GWMAW classifies projects as follows:(a) Projects requiring highly intensive project administration. Such projects require the employment of dedicated project managers to run them on a day-to-day basis. (b)

Projects that require intensive project administrative

Such projects require at least 50% effort of a senior administrative staff of GWMAW, such as Coordinator or Project Director. (c)

Moderate Administrative Intensity Projects

Such projects require 25 ? 50% effort of a senior administrative personnel. To ensure effective project delivery, GWMAW allocates a minimum of 25% effort of senior administrative staff to all the projects it undertakes. 3.97

Guidelines on how to charge for costs

GWMAW charges costs on the basis of project size and administrative intensity as follows:(a) Employ additional staff or commit senior staff at 100% effort for large projects and projects requiring highly intensive administration. (b) Deploy CEO or senior staff at over 50% effort on medium sized projects or projects requiring intensive administration. 3.98

Project results and dissemination guidelines

The Board of GWMAW guidelines for project result dissemination are:-

· Minor projects (dissemination should reach a minimum of 100 people) · Medium projects (dissemination of results should reach a minimum of 500 people) · Large projects (dissemination of results should reach a minimum of 1000 people) 3.99

Per diem payment guidelines

Per diem may be paid where staff is on the field more than 50 kilometers away from home station or at which accommodation is necessary up to 5 days in a month. If accommodation is required longer than 5 days, the staff should instead be paid a salary at a rate of 10% higher for the period of stay at the station. The per diem rate should be calculated at the following rate:Senior Staff Junior staff Volunteers 3.100

( 2 000 to 3 000/- per day) ( 1 000 to 1 500/- per day) ( 1 000/- per day )

Financial disclosure statement

A comprehensive description of GWMAW?s financial management practices for both direct and indirect budgetary costs. 3.101

Allocable Cost (project cost/direct cost).

Defined by GWMAW as a cost that can be identified to be specifically related to a project. 3.102

Double Counting (duplicating cost)

The listing of the same cost on more than one project. 3.103

Authorized Minimum Cost share Percentage

The minimum voluntary cost share percentage in a project budget as authorized by the Board of Directors of GWMAW. The sum total voluntary contribution by GWMAW as well as the project beneficiaries. The current value is 15%. 3.104

Project Selection Criteria

Guidelines approved by the Board as the minimum standards for GWMAW to

participate in a project. The current guidelines are:(a) The Project will help to achieve the objectives of the strategic plan of GWMAW. (b) The authorized minimum cost share percentage of 15% has been committed. (c) At least one senior administrative officer will be deployed to the project at a minimum staff effort of 25%. 3.105

Project sustainability guidelines

The guidelines provided by the Board as the minimum to judge the future sustainability of a project. The current guidelines are:(a) Financial Sustainability · The project is able to meet its running costs (administrative and equipment maintenance costs). · GWMAW will continue to associate with the project for at least one year after donor support is stopped. (b)

Managerial sustainability

· Future management of the project has been identified, developed and deployed. (c)

Environmental sustainability

· The project impacts on soil, water and air are known and are minimum, or mitigable. · The returns from the project outweigh the costs. (d)

Future growth prospects are good

· The technology introduced by the project is appropriate. · There is an extensive stakeholder interest in the project (both local and global). · The Government has demonstrable interest in this type of project. (e) · ·

Social sustainability The project mainstreams gender parity. The project is supported by the local leadership.

3.106

Project delivery efficiency guidelines

The guidelines provided by the Board to judge the efficiency of delivery

of a project. The current guidelines are:(a) · · ·

Financial budget administration Budget variance (0 to 10%) Excellent Budget Variance (10 to20%) Good Budget Variance (more than 20%) Poor

(b) · · ·

(c) · · ·

Time administration Variance (0%to 10 %) Excellent Variance (10 to 20%) Good Variance (more than 20%)? Poor

Delivery of project impact success indicators Variance (0 to 10 %) Excellent Variance (10 to 20%)50%) Good Variance (more than 20%) Poor

(d) Project staff performance as assessed by Board will be classified as excellent, good or poor. 3.107

Project accountability and transparency guidelines

The minimum guidelines provided by the Board to ensure transparency and accountability in the management of project grants and in the delivery of the projects. The current guidelines are:(a) The Board of Directors has approved the project and its budget. (b) The CEO of GWMAW is responsible for the overall supervision of the project. (c) All financial records have to be written, and should be retained for a period of 5 years after the completion of the project. (d) There should be assigned person or committee on every project who should monitor and record any observable risk, change or conflict brought about as a result of the project. (e) All incidents occurring that may need a revision of the project budget should be communicated to the Board for deliberations with the project sponsors. (f) Project progress reports should be submitted on time to the Board of Directors and to the sponsors. 3.108

Project beneficiary selection guidelines

The minimum guidelines provided by the Board to ensure effectiveness, transparency and inclusiveness in the selection of the beneficiaries of a project. The current guidelines are:(a) The beneficiaries demonstrate interest in the project by committing to it cash or in-kind donations of not less than 5% of the total budget. (b) GWMAW has taken effort to ensure gender balance in the participants of a project. (c) Potential beneficiaries have not been discriminated out on the basis of tribe, religion, health status or political affiliation. (d) All attempt has been made to serve the most needy, disenfranchised and deserving cases first. (e) All attempt has been made to disseminate the project methodology widely to the needy who could not be financially supported on the project.

CHAPTER FOUR 4.0

FINANCIAL REPORTING POLICY

4.1

Purpose

The purpose of this policy is to set forth the procedures for monitoring and reporting the financial management of a grant given to GWMAW. 4.2

Responsibility

GWMAW is responsible for the financial management, monitoring and evaluation of sponsored grants and external sub-contracts of the same. 4.3

Frequency of reporting

Unless specified otherwise by a sponsor, GWMAW shall provide quarterly financial reports. The annual project reports shall be done not more than 90 calendar days after the grant. The final financial report shall be done not more than 90 calendar days after the completion of the project. 4.4

Performance report

Financial reports shall be accompanied by project performance reports specifying, as a minimum:(a) Actual project achievement when compared to the project goals and objectives. (b) Reasons why the project goals were not met. (c) An explanation of any budget and performance variance. 4.5

Record retention and access

(a) Subject to article 4.5 (b) below, GWMAW shall retain financial records for a period of 5 years after the completion of the project. (b) If any litigation, claim or audit is started before the expiry of the 5-year record retention period, the financial records shall be retained until all the litigation, claims or audit findings involving the records have been resolved and relevant action taken. (c) Records for real estate shall be retained for a period of 5 years after they have been disposed off. (d) Project sponsors shall have the right of timely and unrestricted access to any books of accounts, financial documents or other records pertinent to the projects sponsored. This right also includes timely and reasonable access to GWMAW personnel for the purpose of interview and discussion regarding financial management. The right of access to the personnel of GWMAW is not restricted to the record retention period of 5 years, but shall last as long as financial records are retained. 4.6

Financial auditing

All projects undertaken by GWMAW, whether minor or major, shall be subject to external financial auditing.

CHAPTER FIVE 5.0

PROPERTY MANAGEMENT POLICY

5.1

Purpose

The purpose of this policy is to outline a uniform set of standards that will govern the acquisition, maintenance and disposal of property by GWMAW, using grants provided by sponsors. 5.2

Definition

(a) Property is defined as the things possessed by GWMAW. (b) Expendable supplies are defined as things having a unit price of less than 10 dollars, or a lifetime of less than 4 years. (c) Non-expendable supplies are defined as things having a unit price of more than 10 dollars and a lifetime of more than 4 years. (d) Real property is defined as land or buildings owned by GWMAW. 5.3

Insurance Coverage

GWMAW will provide an insurance cover not exceeding 10% of the real property, or property whose unit price is more than 1000 dollars during the project period. 5.4

Real property (and property whose value exceeds 1000 dollars).

(a) The title deed of any real property acquired as a result of a grant shall be vested in GWMAW. (b) GWMAW shall obtain approval of the project sponsor before disposing of real property that is no longer required. (c) Proper sale procures to provide for competition that will ensure adequate proceeds from the sale of property that is no longer required shall be followed. 5.5

Generation of income using project property.

(a) Unless specified otherwise by a sponsor, GWMAW may use project equipment to generate extra project income. (b) GWMAW shall not charge outsiders a fee that is less than the market value for using project property. 5.6

Replacement of project property

The present project property may be sold and the proceeds added to the funds required to replace the property (trade-in). 5.7

No longer required project equipment

With the approval of the sponsor, property that is no longer required may be disposed off and the proceeds used to:(a) (b) (c)

Fund the project Sustain the project Fund other activities of GWMAW.

5.8

Keeping of equipment records

GWMAW will maintain accurate records of the property bought using grants which shall include the following as a minimum:(a) Equipment make, model, serial number and date of manufacture. (b) A description of the equipment purpose and function. (c) Acquisition date (d) Condition of the equipment. (e) Current market value and method used to estimate this value. (f) Anticipated equipment disposal date and salvage value. 5.9

Safe keeping of equipment and other property

(a) GWMAW will take all necessary caution to prevent any equipment acquired from being stolen, damaged, lost or vandalized. In particular, GWMAW shall provide adequate security arrangements for project equipment. (b) GWMAW shall provide for maintenance to ensure project equipment and other property is kept in good repair. 5.10

Transfer or return of project property to the sponsor.

Where a sponsor insists that project property bought using their grant be returned to them or be transferred to other donor sponsored projects, such transfer shall be done at the expense of the donor, and the donor shall compensate GWMAW of all expenses incurred in such property transfer or return. 5.11

Intangible Property

(a) The sponsors of GWMAW shall have the right to freely reproduce, publish or otherwise use the results of the project sponsored to advance their purposes. However, any royalties or income accruing from the copyrights of the results of the project shall be the property of GWMAW. (b) GWMAW will specify to sponsors any trade information for which confidentiality may be necessary for the continued existence of the project. 5.12

Property trustees

For the time being, the Board of Directors of GWMAW shall act as the trustees of the property owned by GWMAW.

CHAPTER SIX 6.0

PROCUREMENT POLICY

6.1

Purpose

The procurement policy is provided to ensure that GWMAW will procure supplies and other property in a manner that is efficient, transparent and accountable. 6.2

Definition

GWMAW defines procurement to be the purchase or acquisition of any supplies or property, for which payment is made in cash or in-kind. 6.3

Contractual responsibility

The Board of Directors of GWMAW is the responsible authority regarding the procurement and the attendant contractual obligations entered into with suppliers of materials and services procured using donor funding. Therefore, matters regarding procurement disputes, contractual violations or claims are to be referred to the Board for settlement. 6.4

Bribery in procurement

The officers, employees or agents of GWMAW shall neither solicit nor accept any bribe, favour or anything of monetary value from vendors of services or goods to GWMAW. Any officer, employee or agent found to have violated this proviso shall be dismissed from service of GWMAW. 6.5

Conflict of interest

No officer, employee or agent of GWMAW shall participate in a decision-making process on a matter in which they have a personal interest. Such officer, employee or agent shall be required to state their stake in the matter, and shall absent themselves from decision-making on the matter. Any discovery that an office, employee or agent participated in a matter in which there was clear conflict of interest shall lead to immediate dismissal from service to GWMAW. 6.6

Open invitation of supplier competition

GWMAW shall encourage, to the maximum extent practical, open and free

competition in the procurement of goods and services. To facilitate this process, GWMAW shall draft specifications, requirements and statements of work so as to invite bids or requests for proposals from vendors. GWMAW will award tenders to the bidder whose offer is the most responsive to the solicitation and the most advantageous to GWMAW on price and quality. To guide this process (a) GWMAW will maintain a list of endorsed suppliers of goods and services from which small purchases may be made. (b) shall invite quotations from other suppliers for goods or services whose unit price exceeds 500 dollars (big purchases). 6.7

Categories of purchases

Goods or services whose unit price is 500 dollars or less are to be regarded to be small purchases. Goods or services whose unit price is more than 500 dollars are defined by the Board of Directors of GWMAW to be big purchases. 6.8

List of endorsed suppliers of small purchases

For goods whose unit price is less than 500 dollars, GWMAW may make purchases from the vendors offering the lowest price from the list of vendors approved by the Board for the year. The Board of Directors shall each beginning of the year issue an endorsed list of suppliers from which such purchase shall be made. The current list of endorsed suppliers of small purchases comprise of:(a) (b) (c) (d) (e) (f)

Uchumi Supermarkets Nakumatt Supermarkets Tusker Mattress Supermarkets Text Book Center Seal Honey 3 star hotel

(g) Magic Stores 6.9

Price quotations and awards of tenders for large purchases

For goods or services whose unit price is in excess of 500 dollars, the Board of GWMAW recommends the solicitation of quotations based on comprehensively written requests for proposals, and the awards of tenders to the bidder who offers the best value based on price and quality. A minimum of 3 quotations shall be required from which a decision to make a purchase shall be based. For goods or services worthy over 3 000$ per unit price, solicitations

shall be placed in an advertisement in a national newspaper. 6.10

Gender mainstreaming in the procurement of tenders for large purchases

The Board of GWMAW recommends that positive efforts be made to utilize, to the full extent possible, women-owned and youth-owned businesses in the supply of tendered goods and services. 6.11

Preparation of procurement instruments

All requests for proposals and bids shall be in written form, specifying, as a minimum:(a) Clear descriptions of the technical details of the goods and services required or being offered. (b) The requirements which the bidder must fulfill in order to be evaluated for the bid. (c) A clear description of the technical requirements needed in order to offer satisfactory performance. (d) Special features such as make, brand, or model required. (e) A statement requiring vendors to supply goods and services that will protect the environment. (f) Prices quoted should be guaranteed for a minimum period of 3 months. (g) Provide, where possible, a sample of the product. 6.12

Preparation of budget proposals

The prices quoted in project proposals shall be those that are approved by the Board of Directors on the quarterly list of endorsed prices.

CHAPTER SEVEN 7.0

PROJECT INCOME UTILIZATION POLICY

7.1

Purpose

This policy establishes the procedure for accounting for income generated as a result of the project grant.

7.2 Definition Project income is defined by GWMAW as that income generated during the project period as a result of the project grant. 7.3

Sources of project income

Project income sources include, but are not limited to, the following:(a) Income that accrues from the sale of project publications. (b) Refunds and rebates obtained from the governments on taxes, such as VAT refunds. (c) Price discounts obtained from vendors. (d) Interest earned on bank depositories. (e) Income earned from the sale of project services. (f) Cash awards or prizes earned to recognize project excellency. (g) Sale of no longer required project equipment and supplies. (h) Training fees charged to the project beneficiaries. (i) Consultancy fees charged by the project. (j) Cost waivers obtained from the Government or suppliers of goods and services. (k) Local currency gains over foreign currency. (l) Recovery of funds obtained after bank account reconciliations, financial auditing or debt settlements to the accounts of GWMAW. Any funds paid in excess of the amount entitled constitutes a debt to GWMAW and is repayable. (m) Income earned from royalties, copyrights, patents, trademarks and licence fees. (n) Christian offerings and tithing to the project. (o) Appreciation of the value of the materials procured using the grant during the project period (if the material is disposed of). (p) Shares and bonds acquired as a result of the project. (q) Rental charges from use of project buildings, equipment or tools. 7.4

Ownership of Project Income

Unless specified otherwise by a project sponsor, the income earned as a result of a project shall be the property of GWMAW. 7.5

Uses of Project Income

Project income shall be used for one or more of the following ways:(a) Added to the funds committed to the project by GWMAW as its own cost share effort. (b) Added to the chest to fund the continued existence of the project

after the withdrawal of the sponsor. (c) Used to fundraise for additional grants to the project. 7.6

Reporting Responsibility of the Project Income

GWMAW shall account to the project sponsor for the income earned in whole or in part as a result of the grant provided. 7.7

Project income earned after the end of the project or sponsorship period.

GWMAW shall have no obligation to the project sponsor regarding the project income earned after the expiry of the project period. 7.8

Computation of Project Income

The costs incurred in the generation of the project income shall be deducted from the gross project income to determine the actual project income, unless the sponsor has paid for these costs. 7.9

No longer needed project equipment and supplies

With the approval of the sponsor, no longer required equipment or supplies shall either (a) be disposed off at the going market prices, and the proceeds used to sustain the future of the project (b) be used by GWMAW on other projects.

CHAPTER EIGHT 8.0 DIRECT PROJECT ADMINISTRATION COST CHARGING POLICY 8.1

Purpose

The purpose of this policy is to provide guidelines on those expenses that shall be treated as being direct administrative costs that are chargeable (allocable) to a sponsored project. 8.2

Identification of the Direct Project Administration Costs

Project administration costs shall include costs of using existing facilities as well as the additional administrative effort necessitated by a sponsored project. The facilities include office equipment, transport

vehicles, communications, buildings and field equipment that are owned by GWMAW or by the project beneficiaries. Additional administrative effort may be incurred by GWMAW that can be directly charged to the project in the area of activity planning, resource mobilization, project implementation, commissioning, evaluation and follow up. 8.3

Ceiling

Direct project administration costs shall not be charged at a ratio above the maximum authorized ratio, except by express approval of the Board of Directors and the project sponsor. The authorized maximum administrative budget ratio are 20% for minor projects and 25% for major projects. 8.4

Direct Project Administration Cost Budget Justification

Project proposals with an administration cost budget shall provide a clear justification statement narrating:(a) A clear description of the expenses, items and services that are to be charged to the project. (b) How those expenses relate to the objectives of the project. (c) The time period during which the expenses will be incurred. (d) The total anticipated administrative costs. (e) The ratio of the administrative cost to the total budget of the project. (f) A statement explaining whether the project is a minor or major project, administratively intensive or not intensive. (g) All other information that may be necessary in justifying the direct administrative costs. (h) A statement to show compliance with the sponsor requirements regarding administrative charging. 8.5

Administrative Intensity

Administration charging shall be done on the basis of intensity of activity. For the purpose of charging, projects shall be divided into 2 groups, namely minor and major projects. Major projects require the deployment of extra administrative and support staff to meet the goals of the project. To meet the needs of these staffs extra facilities may need to be purchased. Major projects shall be those projects having a budget of over 10 000 dollars. Minor projects shall be those projects having a budget of less than 5 000. The budget narrative for a major project shall include the following statement:

?This project is major, as defined in the Administration Charging Policy Rule 8.5 of GWMAW, and meets the sponsor requirements. The project is major because:(a) (b) (c) (d)

Quantity of work required (describe the scope) Quality of work required (describe the scope) Duration (Describe) Budget (Describe)

The project will require extra administrative and support staff to meet the goals of the project in the following areas: (Describe). (Ensure the personnel charged to the project are used for providing services specific to the project and not for the general support of GWMAW).? 8.6

Administrative Charging Check List

Project administrative charging should ensure that:(a) The items or services to be charged on the project administration budget have been properly identified and directly contribute to the specific objectives of the project. (b) The cost of the items or services are reasonable and do not exceed the ceiling levels provided by the Board of GWMAW or by the sponsor. (c) The project has been properly justified as being minor or major. (d) The item or service costs are allowable by the donor or Board of Directors of GWMAW. (e) The extra administrative effort required, and for which sponsorship is requested, is significantly higher than the routine level of such services as is already being provided by the staff. (f) A line budget justification has been given to show how the administrative cost was calculated and its compliance with GWMAW and donor policies. 8.7

Project Administration Cost Sharing

Project administration costs shall be considered to be a part of the cost shared budget where:(a) The administration costs do not meet the conditions for direct charging as described in this policy. (b) The project sponsor specifically disapproves the administrative costs expense. (c) The expense will still be incurred in the execution of the project, whether or not the sponsor pays for it. (d) The administration expense can be funded through in-kind donations of labour and materials.

(e)

The cash required to fund the expense has been approved by the Board.

CHAPTER NINE 9.0

COST SHARING POLICY

9.1

Purpose

The purpose of this policy is to accurately define cost sharing, identify the items that can be cost shared and those that cannot be cost shared in GWMAW administered project grants. The policy also establishes how the cost sharing budget shall be monitored and evaluated. 9.2

Definition

Cost sharing is the portion of the project budget paid for by GWMAW, the project beneficiaries and, other third party sponsors, and which is not expected from the present sponsor. Cost sharing is of 2 types:· Mandatory cost sharing, which is the cost sharing demanded by the sponsor as a condition for participation in the given project. · Voluntary cost sharing, which is the cost sharing given by GWMAW whether the sponsor demands it or not. 9.3

Committed Cost Sharing Budget

GWMAW shall prepare and obtain approval for the cost sharing budget from the Board of Directors. The Board shall append its seal on the budget, as well as a narrative, as a sign of approval of the committed cost sharing budget. Committed cost sharing budget should include both direct and indirect costs. The Board shall prepare a cost sharing authorization certificate to show its binding commitment to cost share in the project, as well as verification of the cost sharing budget. The certificate should indicate whether the cost sharing offer is mandatory or voluntary. 9.4

Cost Sharing Budget Account

In order to ensure the committed cost sharing budget is sponsored, a separate account shall be maintained for own cost sharing. Cost shared expenses shall be charged on this account. Expenditures on cost shared account shall require normal certification and approval by the Board.

The records for cost sharing shall be subject to the same retention period as those of the sponsored account. 9.5

Cost Shared Direct Costs

GWMAW may cost share in a project by contributing staff or volunteer labour, whether skilled or unskilled. Such contribution should indicate the salaries and fringe benefits in the cost share budget. Committed staff effort on various projects shall not exceed 100% of the staff effort. Care shall be taken to ensure that the effort committed to a project by the project manager staff shall not be less than 25%. Staff travel costs may be treated as GWMAW cost sharing. 9.6

Cost Shared Indirect Costs

GWMAW will not offer for cost sharing equipment, unless such equipment already exists. Such available equipment shall be used to perform the project at no direct cost to the sponsor. Where a project requires the acquisition of extra equipment, or materials such a cost shall be charged as a direct cost to the project. GWMAW does not cost share in the purchase of such extra equipment, which must be fully paid for by the project sponsors. 9.7

Facilities and Administration Costs

F & A costs are incurred any time GWMAW performs a project. F & A costs must be identified and calculated even where a sponsor does not re-imburse for this cost. Where a sponsor re-imburses, F & A costs should be split into direct and indirect costs, and be charged to the project. 9.8

Accounting for cost sharing

Proper records of accounts of cost shared effort should be kept for project accounting and auditing. Effort hours contributed should be logged and work done accounted for. Authorization and supervision should be provided for cost sharing account. 9.9

Unallowable cost sharing

The Board of GWMAW disallows the following items for cost sharing in sponsored projects:-

(a) F & A costs in excess of 25% of the project costs. (b) Costs that are disallowed by the project sponsor for cost sharing. (c) Salaries and benefits above the rates that have been expressly permitted by the Board of Directors. (d) Costs that have already been borne by other sponsors of different projects undertaken by GWMAW (duplicated cost sponsorship) (e) Depreciation costs of the equipment provided by the sponsor. (f) GWMAW does not cost share budget overruns with the sponsor 9.10

Funding of cost sharing account

Cost sharing account or vote are created by the Board of Directors. The cost sharing accounts should be fully funded by the time the project ends. 9.11

Revision of cost sharing budget

If the proposed budget is revised by the sponsor, then a revision may be necessary on the cost-sharing budget. This matter should be discussed and be agreed upon by the sponsor. 9.12

Reporting Cost Sharing

GWMAW is responsible for providing information to show that it has fulfilled the cost sharing commitments it made to the sponsor. This information will be provided in a cost sharing report. In order to do this effectively, GWMAW should properly document, monitor and evaluate the cost sharing account. In particular, the actual cost sharing budget should be computed to see how it compares with the estimated or projected budget. 9.13

Voluntary cost sharing by GWMAW

As a demonstration of our commitment to undertaken projects, GWMAW principal project staff or staffs will donate at least 20% of their salary and benefits to the projects undertaken by GWMAW. This donated effort will be shared on a pro-rata basis among the projects undertaken by the organization. The effort contribution by GWMAW on a project shall not be less than 10% of the project labour budget. 9.14

Cost share Budget Over runs

Any budgetary overruns incurred, except in extra-ordinary circumstances, shall be borne by GWMAW and will be regarded to be a part of its cost sharing in the project.

9.15

Office rent charging

Office rent will be charged on the project as direct F and A costs. When more than one project are on-going, the rent will be split among these projects on a pro-rata basis. 9.16

Guiding Principles in GWMAW cost sharing

The cost-sharing offered by GWMAW shall follow the following guidelines. The cost sharing shall:(a) Be verifiable by the Board (b) Not be duplicated among various projects (c) Be reasonable in amounts (d) Be unrecoverable cost sharing (e) Be committed cost sharing (f) In case of property, be the value of the property after accounting for its depreciation and remaining life. (g) In the case of labour from staff, volunteers or consultants, shall be necessary labour needed to do the project efficiently. Cost sharing rates shall be charged at the salary and benefit levels approved by the Board. (h) In case of expendable supplies, the estimated reasonable value of the supplies at the obtaining market rates assessed in a way approved by the Board. (i) In case of a project requiring the construction of a building, the total value of the land shall be considered to be cost sharing. (j) In case of donated own office space or building, the depreciation for the building shall constitute cost sharing, provided this value does not exceed the fair rental value of comparable space as established by the Board for the same locality. (k) In case of hired equipment, the hire charges calculated at a fair rate obtaining in the market. (l) Be documented and accounted for in the same manner as the sponsored costs. 9.17

Sources of funds for cost shared expenses

GWMAW cost share budget shall be either for labour or material costs. The budget shall be funded either in cash or in-kind. Labour cost share shall be funded in-kind by donating efforts of staff, volunteers or consultants. Except for volunteers whose labour shall be donated at 100% effort, all other labour donations shall be at less than 100% effort. GWMAW cash participation in the labour budget shall be restricted to (a) the recruitment and maintenance costs of project

volunteers (b) the funding of short-term external project consultants such as evaluators, auditors, trainers and project facilitators. Material cost share shall be funded in-kind through the use of existing space, supplies, tools and equipment. Cost sharing shall be funded through Board donations, other sponsors, project beneficiary contributions, project income, price discounts, tax exemptions, bank interests, investments, endowments, service charges and cash gifts. 9.18 Use of the project income in the continued funding of the project Project income is that income that accrues as a result of participating in a project. This income can be used to fund part of the project, or for the future funding of the project continuation.

CHAPTER TEN 10.0

PROJECT CLOSEOUT POLICY

10.1

Purpose

The purpose of this policy is to guide the project closeout process. 10.2

Definition

The closeout period is the period between the project completion date and the day GWMAW submits the final project report to the project sponsor. 10.3

Closeout period

Unless specified otherwise by a project sponsor, the project closeout period shall be a maximum of 90 calendar days. 10.4

Closeout responsibility

It is the responsibility of GWMAW to liquidate all the project grant obligations during the project closeout period. GWMAW shall pay any pending debts on the grant before the project is closed. Any refunds of excess funds shall be returned to the project sponsor during this period.

10.5

Financial project report

A major requirement shall be the writing and submission of the final project report and financial audit during the project closeout period.

CHAPTER ELEVEN 11.0

BOARD OF DIRECTORS GRANT MANAGEMENT POLICY

11.1

Purpose

The purpose of this policy is to enable the Board of Directors of GWMAW to provide adequate oversight in the management of sponsored grants. 11.2

Managerial structure

(a) The top decision making organ at GWMAW shall be the Board of Directors. (b) Members to the Board shall be appointed by the partner organizations, and shall serve for a renewable period of 2 years. (c) The Board of Directors shall comprise of not less than 9 members who bring in skills in finance, banking, engineering, medical, evangelism, law and trade. (d) The day to day administration shall be vested on the coordinator. (e) All members of Board of Directors, Coordinator, staff and volunteers shall be hired on written job descriptions. (f) The Board shall have regular meetings at an interval of 3 months. (g) Minutes of the meetings shall be recorded. (h) At each meeting, time will be allocated to discussing previous meetings to ensure that agreed resolutions have been adhered to and explanations given for any variance. (i) In accordance with the Bible, decisions on any matter shall be taken by consensus. 11.3

Financial Management Policy

(a) The Board shall establish the financial management policies of GWMAW. (b) GWMAW will operate bank accounts with signatories approved by the Board. (c) All bank withdrawals shall be upon written authorization. (d) GWMAW shall hire staff with the skills to perform the functions of the organization. 11.4

Project proposal formation

(a) GWMAW will provide a 5 year strategic plan from which project proposals will be originated. (b) The Board of Directors of GWMAW shall approve all project proposals for submission. (c) The Board, or its authorized members, shall have the authority to enter into project agreement with sponsors. 11.5

Proposal costs allowability and allocability

(a) GWMAW will have written financial policies to ensure that costs allocated to project proposals are reasonable and allowable. (b) The Board of Directors will verify that proposals have followed the grant management policies of the organization. (c) The Board shall work to ensure that the projects are delivered at the lowest possible cost (on a per capita basis). 11.6

Grant misappropriation

In the event of grant misappropriation, the Board shall take legal action to ensure the loss is compensated for, and the culprits are severely punished. 11.7

Financial monitoring and reporting responsibilities

(a) GWMAW shall work to ensure, as much as possible, that projects are delivered on budget. (b) The Board of Directors shall examine financial records of sponsored projects. The financial instruments to help the Board shall include cash reconciliation statements, cash flows, budget compliance reports, budget variance justification and acquired equipment reports. (c) GWMAW shall use both the accrual method and the cash methods of accounting. (d) Sponsored projects shall be subjected to external financial audits at a minimum frequency of one audit per year and maximum frequency of 2 audits per year. (e) Quarterly Board meetings will be conducted on sponsored projects to share experiences, consider project progress, finances and to train staff to ensure maximum implementation efficiency.

CHAPTER TWELVE 12.0

TERMS OF SERVICE FOR GWMAW STAFF

12.1

Grade

Appointment of staff will be upon one of the following grades:(a) Junior support staff (b) Senior support staff (c) Junior administration staff (d) Senior administration staff 12.2 Duties The duties of staff shall be specified in their letters of employment. 12.3

Official hours

The working week of GWMAW shall be Monday to Friday, on each day starting at 8.00am and ending 5.00pm, with a lunch break of one hour at 12.00 to 1.00pm (40 hour week). 12.4

Overtime

When authorized, staff may work outside of the official working hours at a salary or allowance rate exceeding the official hour rate by 25%. 12.5

Salary scales

(a) Junior support staff £8340 x £100 - £8820 (b) Senior support staff £8600 x £150 - £10,000 x £200 - £15000 (c) Junior administration staff £15000 x £200 - £30000 (d) Senior administration staff £25000 x £300 - £60000 The Board of Directors shall decide the point of entry of new staff, which shall be communicated in the letter of appointment. 12.6

Incremental date

The salary incremental date shall be 1 July or 1 January annually. Employees shall first complete six months of probation before a salary

increment is effected. In the case where an employee has not completed 6 months before 1 July, the incremental date shall be 1 January. 12.7

Allowances

Fringe benefits are payable to members of staff of GWMAW at such rates as are determined by the Board of Directors. The following allowances are currently in force (2005). (a) Fringe benefits to cover housing and travel are paid at a rate of 25% of the salary. (b)

Responsibility allowance

Coordinator 10% of basic salary p.a. Program Director 10% of basic salary p.a. Treasurer 10% of basic salary p.a. (c) · · · (d) · · · · (e)

Mileage and commuter allowance For travel within Kenya by own car ? 40 shillings per kilometer. For travel by car, economy ticket rates shall apply. Commuter allowance shall be paid at 2000/= per month Daily subsistence allowance in Kenya (per diem) Junior Senior Junior Senior

support staff ? support staff ? administrative staff administrative staff

1000/= 1500/= ? 2000/= ? 3000/=

Daily subsistence allowance outside Kenya

Travel and subsistence allowance outside Kenya shall be payable at the rates applicable at any time in Kenya in the Kenya Public Service. (f)

Leave allowance

Leave allowance shall be payable at the rate of 50% of the basic salary. (g)

Gratuity

Gratuity shall be paid at the rate of one month basic salary for every year worked on a sponsored project.

(h)

Group medical insurance

GWMAW shall provide group medical insurance for its staff. 12.8

(a)

Other cadre of employment

Volunteer cadre

Volunteers shall be employed for a maximum period of 2 years. Volunteers shall be paid 20000/= p.m. to cater for housing, travel, meals and medical care. (b)

Casual labourers

Casual labourers shall be paid at the rate of 150% of the minimum wage authorized in Kenya. (c)

Consultants

Consultants may be hired for a maximum of 3 months in a year to perform specialized service to GWMAW. 12.9

Termination of employment

A member of staff may resign from his/her post by giving notice of 1 month or by paying in lieu of notice a sum of money equivalent to one month’s salary. 12.10

Sick leave

Sick leave may be granted up to 45 days on full salary upon production of a medical certificate, and a further 45 days on half salary. After that the case shall need to be reviewed by the Board. 12.11

Maternity leave

Maternity leave may be granted for up to 3 calendar months on full salary. 12.12

Normal leave

All staff are entitled to an annual leave of 20 working days.