Grant Agreement
This Agreement is made between Tearfund, of 100 Church Road, Teddington, Middlesex,
TW11 8QE, UK, a charity registered with the Charity Commissioners for England & Wales
under number 265464 and ………………………………………………………………………(The Partner) on
…………………..(date)
This Agreement applies to all grants made to the Partner during the term of the
associated Partnership Covenant and should be read in conjunction with the Partnership
Covenant.
1. Implementation of projects
1.1 Adherence to plans
The Partner will make every effort to implement a project in accordance with the agreed
plan, timing of activities and budget as set out in the project proposal approved by
Tearfund.
1.2 Core Operating Policies
The following issues are of critical importance in the protection of the reputations and
operational freedom of Tearfund and its partners. The Partner will apply appropriate
policies in the planning and implementation of its activities and the management of the
organisation:
1.2.1 Protection of children and vulnerable adults - children and vulnerable adults
should be protected from physical, emotional and sexual abuse, exploitation and
neglect. Staff must be made aware of the potential threats to children and
vulnerable adults, the potential risk to our organisations from inappropriate
behaviour, and the action to take if any incident is discovered. Any substantiated
incident or public allegation involving staff or governors of the partner
organisation, or any allegation against Tearfund staff, volunteers or
representatives, must be notified without delay to Tearfund, within the boundaries
of confidentiality.
1.2.2 Fraud and bribery – the misuse of funds or other resources, or the
manipulation of accounting records, for personal gain or dishonest advantage to
the organisation is incompatible with our core values. The Partner must operate
appropriate systems to prevent such actions and any incident which is discovered
must be notified immediately to Tearfund.
1.2.3 Countering crime and terrorism - any kind of activity or use of funds for
bribes, or in breach of appropriate money laundering or exchange control
regulations, or anti-terrorism legislation, must be avoided and any concerns about
such activities affecting the Partner must be notified immediately to Tearfund.
2. Project funds:
2.1 Receipt of funds transferred by Tearfund
Tearfund’s formal approval of the Partner’s funding proposal will be evidenced by a
Payment Letter which will set out the schedule for transfer of funds and any additional
conditions to be applied to the grant.
The Partner will complete and return Tearfund’s standard receipt, which is attached to
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each Payment Letter, for all transfers of funds as soon as possible and not later than two
months after receipt.
2.2 Notification of other funding sources
Where a Tearfund grant represents partial funding of a project the Partner will inform
Tearfund of any other funding sources contributing to the project and advise of any
shortfall or surplus in funding within six weeks of the project commencement date or the
date of payment of the Tearfund grant if later.
2.3 Restricted funds
The Partner will treat the grant as a restricted fund and will only apply those funds for the
purpose for which they were given, as set out in the project plan and budget approved by
Tearfund.
Any capital equipment, including vehicles, computers or office equipment, purchased with
grant money provided by Tearfund will be treated as held in trust for the benefit of the
project to which the grant was given and on the conclusion of the project may only be
disposed of or transferred to another activity with Tearfund’s prior written approval.
2.4 Interest on grant money held by the Partner
Tearfund pays grants periodically in advance. The Partner may use any interest earned
on temporary balances for its general funds unless instructed otherwise.
Tearfund reserves the right to claim interest from the Partner on any grant money that is
returned, following any failure to implement a project, calculated from the later of the
date of receipt of the grant or the date of suspension of the project.
2.5 Exchange rate gains and losses
Exchange rate gains shall be used for the benefit of the project unless otherwise agreed
with Tearfund. Exchange rate losses may in the first instance be borne by the project but
must be reported to Tearfund.
3. Reporting:
3.1 Reporting format and schedule
The Partner will provide Tearfund with narrative and financial reports of the progress of
the project in a format consistent with Tearfund’s Reporting Guidelines. The reports will
be signed by a senior manager of the Partner and will describe both the progress towards
attaining the project’s purpose (objectives) relative to the agreed milestones, and the
actual spend of Tearfund grant monies against approved budget.
The reporting schedule will be set out in a Payment Letter accompanying the payment of
the grant and compliance with the schedule will be a requirement of this agreement.
Tearfund’s normal reporting guidelines may be over-ridden where institutional funding
has been obtained. In this case Tearfund will notify the Partner of any alteration to the
reporting requirements.
3.2 Audit requirement
The Partner shall provide Tearfund with a copy of its Annual Financial Statements, Audit
Report and Audit Management Letter, within six months of the Partner’s financial year
end unless otherwise agreed in writing.
Financial Statements shall be prepared and audited in a manner consistent with
International Accounting Standards and International Standards on Auditing.
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Tearfund reserves the right to participate in the choice of auditor.
Tearfund reserves the right to request an audit of the specific project financial reports
and records pertaining to a grant, when considered necessary.
The Partner shall retain all records and documents necessary for a financial audit for a
period of at least five years after the end of the financial year in question.
4. Changes to plans:
4.1 Changes to project budget or plan
In the event of a significant change of circumstances giving rise to the need to change
any part of the budget by more than 10% of the approved estimated expenditure, the
Partner must obtain the written consent of Tearfund to any proposed adjustment of the
project plan and budget before further expenditure of the grant. The proposed
adjustment will state clearly any change to the implementation timetable and milestones.
In the event that a project becomes impossible or impractical to complete, the Partner
will immediately notify Tearfund and suspend further expenditure.
4.2 Repayment of unused grants
In the event that an end of year financial report shows a significant under-spend against
the approved budget, Tearfund reserves the right to require repayment of the unspent
funds or, at its discretion, to require that the unspent funds are offset against approved
funding for the following year. In the event that the final report shows unspent budget
the Partner agrees to seek instructions from Tearfund as to how to deal with the unspent
funds, and recognises that Tearfund will normally request repayment within one month of
the submission of the report.
5. Monitoring and Evaluation:
5.1 Right of access
The Partner will grant Tearfund staff or their agents right of access to all staff, records,
office and project locations for the purposes of audit, monitoring, evaluation or publicity.
In exceptional cases Tearfund reserves the right to make unannounced visits where
allegations of fraud or mis-management have been made.
5.1.1 Any such activity will be within the parameters allowed by the Data
Protection Law.
5.2 Evaluation
For accountability and learning Tearfund selects a number of projects each year for
external evaluation according to set criteria. The partner is required to cooperate in the
planning and implementation of an evaluation, if selected, and in responding to the
recommendations in consultation with Tearfund staff.
6. Compliance
6.1 Failure to adhere to the terms of this Agreement could result in Tearfund withholding
further payment of funds, or in extreme cases, to terminate the partnership with a
requirement for the return of any unused funds.
6.2 This agreement is governed by the law of England and Wales.
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6.3 Nothing in this agreement shall be construed as creating a legal partnership within
the meaning of the Partnership Act 1890.
Signed on behalf of the Partner:
To be signed by either the Chair of the Board, the Legal Representative or other person
duly authorised by the Board (please attach a copy of the Board minute giving
authorisation).
Signature: ………………………………………………………………………………………………………………………………
Name: [please use capital letters]………………………………………………………………………………………..
Address: …………………………………………………………………………………………………………………………………
…………. ……………………………………………………………………………………………………………………………………
Position in organisation: ……………………………………………………………………………………………………….
Signed on behalf of Tearfund:
Signature:……………………………………………………………………………………………………………………………..
Name: ………………………………....................................................................................
Address:
100 Church Road, Teddington, Middlesex, TW11 8QE, United Kingdom
Position in Tearfund: Head of Geographic Area
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