Donor Compliance and Financial Reporting (ECHO, USAID, FCDO) Training Course

This intensive 5-day training course provides a comprehensive and practical exploration of Donor Compliance and Financial Reporting, with a specific focus on the stringent requirements of major humanitarian and development donors such as the European Civil Protection and Humanitarian Aid Operations (ECHO), the U.S. Agency for International Development (USAID), and the UK's Foreign, Commonwealth & Development Office (FCDO). Navigating the diverse and often complex financial regulations, reporting formats, and audit expectations of these key funders is crucial for any organization seeking to secure and retain international grants. This program will equip participants with the essential knowledge and practical skills to ensure meticulous compliance, maintain financial integrity, and deliver accurate and timely reports that build donor trust and facilitate continued funding.

The course goes beyond generic accounting principles, focusing on the specific operational implications of donor guidelines within humanitarian and development contexts. Through interactive case studies, hands-on exercises in budget management, expense tracking, and report preparation, and in-depth discussions on managing audits and preventing fraud, attendees will learn to interpret complex grant agreements, establish robust internal controls, mitigate financial risks, and communicate financial performance effectively to major donors. Whether you are a finance officer, grants manager, program coordinator, internal auditor, or a senior leader in an organization receiving international grants, this program offers an unparalleled opportunity to master the critical aspects of donor compliance and financial reporting for ECHO, USAID, and FCDO.

Duration: 5 days

Target Audience:

  • Finance Managers and Accountants of NGOs/CSOs
  • Grants and Contracts Managers
  • Project Managers and Coordinators
  • Compliance Officers and Internal Auditors
  • Program Directors and Senior Leadership in Donor-Funded Organizations
  • Business Development and Resource Mobilization Professionals
  • Legal Counsel working with Grant Agreements
  • Professionals aspiring to work with international donor funding

Objectives:

  • To provide a comprehensive understanding of the compliance frameworks and financial reporting requirements of ECHO, USAID, and FCDO.
  • To equip participants with the skills to effectively interpret and apply donor regulations across the project lifecycle.
  • To understand best practices in budgeting, expense tracking, and documentation to ensure audit readiness.
  • To develop proficiency in preparing accurate, timely, and compliant financial and narrative reports for major donors.
  • To explore strategies for managing donor audits, preventing fraud, and fostering a culture of financial integrity.

Course Modules:

Introduction

  • The evolving landscape of international development and humanitarian funding.
  • The critical importance of donor compliance and financial accountability.
  • Overview of major donors: ECHO, USAID, and FCDO – their scale and influence.
  • Common challenges in managing multi-donor grants and ensuring compliance.
  • Course objectives and an outline of the modules.

Understanding Donor Grant Agreements and Compliance Fundamentals

  • Key Elements of Grant Agreements: Scope of work, budget, timelines, special conditions, and legal clauses.
  • General Donor Principles: Value for Money (VfM), accountability, transparency, risk management.
  • Understanding Terms and Conditions: Differentiating between grants, cooperative agreements, and contracts.
  • Cross-Cutting Compliance Issues: Safeguarding (PSEA), anti-corruption, environmental standards, gender equality.
  • Importance of donor manuals and guidelines.

Financial Planning and Budgeting for Donor Funds

  • Developing Compliant Budgets: Aligning costs with donor formats and allowable expenses.
  • Cost Principles and Allowability: Direct vs. indirect costs, administrative overheads, cost-sharing/matching.
  • Budget Flexibility and Modifications: Understanding donor rules for budget revisions and reallocations.
  • Forecasting and Cash Flow Management: Managing liquidity in line with donor disbursement schedules.
  • Preparing multi-year budgets for strategic planning.

USAID-Specific Financial Requirements

  • 2 CFR 200 (Uniform Guidance): Key principles for grants and cooperative agreements (allowable costs, subrecipient monitoring, procurement).
  • Automated Standard Application for Payments (ASAP) and Payment Management System (PMS): USAID's financial management systems.
  • Financial Reporting Formats: SF-425 (Federal Financial Report) and other specific reports.
  • Subaward Management: Due diligence and monitoring of subrecipients for USAID grants.
  • Key audit requirements for USAID-funded programs (e.g., A-133/Single Audit equivalents).

ECHO-Specific Financial Requirements

  • ECHO Model Grant Agreement (MGA): Key provisions, budget categories, and financial annexes.
  • Single Form Reporting: Narrative and financial reporting through ECHO's standardized format.
  • Eligibility of Costs: Specific rules on eligible expenses, per diems, and administrative costs.
  • Simplified Cost Options: Flat rates and lump sums where applicable.
  • Flexibility in budget reallocation and non-substantial changes without prior amendment.

FCDO-Specific Financial Requirements

  • FCDO Accountable Grant Agreement (AGA): Structure and critical financial clauses.
  • Value for Money (VfM) Principles: Demonstrating economy, efficiency, effectiveness, and equity in spending.
  • Financial Reporting Formats: Quarterly financial reports, annual statements, final financial reports.
  • Key FCDO Policies: Zero-tolerance for fraud, bribery, sexual exploitation and abuse (PSEA).
  • Requirements for robust financial controls and safeguarding of funds.

Documentation, Record-Keeping, and Internal Controls

  • Audit Readiness: Maintaining comprehensive and organized documentation for all transactions.
  • Supporting Documents: Receipts, invoices, bank statements, payroll records, procurement documents.
  • Internal Control Systems: Segregation of duties, authorization matrices, physical controls.
  • Financial Policies and Procedures: Ensuring written policies are in place and followed.
  • Best practices for managing electronic and physical records.

Donor Audits, Fraud Prevention, and Continuous Improvement

  • Types of Donor Audits: Financial, compliance, performance, special audits.
  • Preparing for an Audit: Documentation review, staff readiness, understanding audit scope.
  • Common Audit Findings and Disallowances: Identifying and rectifying recurring issues.
  • Fraud Prevention and Detection: Red flags, whistleblowing mechanisms, investigative procedures.
  • Implementing audit recommendations and fostering a culture of continuous financial improvement.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

Donor Compliance And Financial Reporting (echo, Usaid, Fcdo) Training Course in Kenya
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