Course Details

Training on Financial Management for USAID Funding

INTODUCTION

Managing financial aspects of USAID (United States Agency for International Development) funding is a crucial responsibility for organizations receiving grants or contracts. This course is designed to provide participants with a comprehensive understanding of USAID’s financial management regulations, practices, and reporting requirements. Participants will learn how to effectively manage the funds, ensure compliance with USAID regulations, and avoid common financial pitfalls. The course is particularly useful for financial officers, grant managers, and project coordinators in NGOs, international organizations, and other entities involved in development projects funded by USAID.

The course covers key topics such as financial reporting, cost principles, audits, internal controls, and the rules governing allowable and unallowable costs. By the end of the course, participants will be equipped to manage their USAID-funded projects more efficiently, ensuring accountability, transparency, and compliance with donor expectations.

Target Participants

This course is designed for individuals and organizations involved in managing USAID-funded projects. It is particularly beneficial for:

• Finance Managers
• Grant Managers
• Project Managers
• NGO and Non-Profit Staff
• Auditors and Compliance Officers
• Procurement and Logistics Officers
• Accounting Staff: Development Professionals
• Consultants and Advisors

COURSE DURATION

5 Days

COURSE OBJECTIVES

By the end of this course the participants will be able to:

• Understand USAID Financial Regulations: Gain a clear understanding of USAID’s financial regulations, including the Code of Federal Regulations (CFR), Federal Acquisition Regulations (FAR), and USAID Automated Directives System (ADS).
• Manage USAID Funds Effectively: Learn best practices for managing USAID funds, including budgeting, tracking expenses, and ensuring proper allocation of resources.
• Ensure Compliance with USAID Rules: Understand the requirements for compliance with USAID’s financial and administrative rules, including those related to cost principles, timekeeping, and allowable costs.
• Prepare Accurate Financial Reports: Learn how to prepare and submit accurate and compliant financial reports that meet USAID’s stringent reporting requirements.
• Implement Strong Internal Controls: Understand the importance of internal controls in the management of USAID funds, including fraud prevention, risk management, and audits.
• Navigate USAID Audits: Prepare for and manage USAID financial audits by understanding audit processes, documentation requirements, and common audit findings.
• Ensure Accountability and Transparency: Learn how to create and maintain transparent financial systems that enhance accountability to USAID and other stakeholders.

COURSE CONTENT

Module 1: Introduction to USAID Funding

• Overview of USAID and its Funding Mechanisms:
• Types of USAID funding: Grants, Cooperative Agreements, and Contracts.
• Understanding USAID’s project cycle and funding process.
• USAID Rules and Regulations:
• Overview of the Code of Federal Regulations (CFR) Part 200 (Uniform Guidance).
• Federal Acquisition Regulations (FAR) and USAID Automated Directives System (ADS).

Module 2: Financial Planning and Budgeting

• Developing a USAID-Compliant Budget:
• Budget structure and formats.
• Key cost categories: Direct and indirect costs, personnel, travel, equipment, and supplies.
• Cost Principles and Budget Flexibility:
• Understanding allowable and unallowable costs (OMB CFR Part 200, Subpart E).
• Budget modifications and reallocation of funds.
• Cost Share/Match Requirements:
• Defining and documenting cost-sharing contributions.
• Managing in-kind contributions and third-party cost-sharing.

Module 3: Cost Management and Financial Monitoring

• Tracking and Allocating Costs:
• Cost allocation methods: Direct vs. indirect costs.
• Setting up chart of accounts and general ledger specific to USAID funding.
• Timekeeping and Personnel Costs:
• Establishing a compliant timekeeping system.
• Accurately tracking labor costs and fringe benefits.
• Monitoring Expenditures:
• Techniques for tracking and monitoring project spending.
• Variance analysis: Comparing actual vs. budgeted costs.

Module 4: USAID Financial Reporting

• Preparing Financial Reports:
• Types of financial reports required by USAID.
• Understanding USAID SF-425 (Federal Financial Report) and other reporting formats.
• Ensuring Accuracy and Compliance in Reporting:
• Common errors in financial reporting.
• How to avoid compliance issues in report preparation.
• Cash Flow Management:
• Managing advance payments and reimbursements from USAID.
• Navigating USAID’s Payment Management System (PMS).

Module 5: Internal Controls and Risk Management

• Implementing Strong Internal Controls:
• Key components of internal control systems for USAID-funded projects.
• Safeguarding assets, managing cash, and controlling disbursements.
• Fraud Prevention and Detection:
• Identifying fraud risks in USAID funding.
• Steps to prevent and detect fraud, waste, and abuse.
• Risk Management in USAID Projects:
• Risk assessment processes and mitigation strategies.
• Developing risk management plans.

Module 6: USAID Audits and Compliance

• USAID Audit Requirements:
• Understanding USAID’s audit requirements for grants and cooperative agreements.
• Audit triggers: Single audit requirements (OMB A-133) and threshold considerations.
• Preparing for a USAID Audit:
• Documentation needed for audits.
• Best practices for audit preparation and managing audit findings.
• Common Audit Findings and Corrective Actions:
• Identifying typical audit issues in USAID-funded projects.
• Developing corrective action plans to address findings.

Module 7: Procurement and Sub-Awards Management

• USAID Procurement Guidelines:
• Overview of USAID procurement regulations and standards.
• Competitive bidding processes and ensuring fair competition.
• Managing Sub-awards:
• Sub-granting and subcontracting: Key compliance considerations.
• Monitoring and reporting requirements for sub-awardees.
• Procurement Documentation:
• Maintaining adequate procurement records and documentation.
• Compliance with procurement rules for allowable costs.

Module 8: Indirect Costs and NICRA (Negotiated Indirect Cost Rate Agreement)

• Indirect Cost Management:
• What are indirect costs? Understanding Facilities and Administration (F&A) costs.
• Calculating and managing indirect cost rates.
  • Preparing for closeout audits.
• Obtaining and Managing NICRA:
• How to apply for and negotiate a NICRA.
• Monitoring indirect costs and reporting to USAID.

Module 9: Closeout of USAID Awards

• Project Closeout Procedures:
• USAID’s project closeout timeline and requirements.
• Preparing final financial and programmatic reports.
• Disposition of Equipment and Property:
• USAID rules on the disposal or transfer of property purchased with grant funds.
• Ensuring compliance with property management requirements.

CERTIFICATION

Upon successful completion of this training, participants will be issued with a 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