Together with the narrative progress reports, the Legal Holder is expected to submit financial reports on a regular basis while the project is being implemented. In technical terms, these financial reports are Receipts and Payments Accounts, which is why we call them Statements of Receipts and Payments . As a rule, these statements should be structured clearly according to the items Payments and Receipts of the project contract, and in particular according to the enclosure Detailed Breakdown of Costs, if this was provided. The statement of Receipts and Payments serves to show the current financial situation of the project and is expected to ensure adequate accountability and transparency. As a consequence, all disbursements to the project are closely linked to whether we have received accurate and up-to-date statements of Receipts and Payments before. Delays in the provision of these Statements may lead to delays in disbursements.

1. Structure
Kindly structure your financial report in accordance with the Receipts and Payments plan of our project contract, if enclosed, according to the “Detailed Breakdown of Costs”.

2. Start of project activities
With your first report, please inform us on the precise starting date of the actual project implementation.

3. Budget Plan
Please always let us have an updated budget plan for the forthcoming period of 3 to 6 months. The grant will be released in instalments to the extent actually needed within a period of 3 to 6 months.

4. Local contribution
For projects supported by KZE, please note that a local cash contribution or third party contribution, if agreed upon, should be raised. Should this contribution only be raised towards the end of the project kindly inform us as soon as possible. The ratio of the contributions of the financing parties have been laid down in the project contract. In case of any difficulties, please inform us about the reasons punctually. In this context, please also be reminded that the approved grant of Misereor/KZE is the maximum amount in EURO, which could be released. The individual disbursements are also depended on the fulfillment of the agreed local contribution and 3rd parties
contributions.

5. Separate Bank Account
A special separate bank account must be opened and kept for the project. The funds for the project will be transferred to the Legal Holder or a designated third party.

6. Up-to-date financial reports
Generally the first instalment can only be released when the project actually starts. Before further payments can be transferred, we always require an up-to-date financial statement of all Receipts and Payments of the project. Since funds for a maximum of 3-6 months only can be advanced, this financial statement should reach us at least every 3-6 months. In this context, we also kindly ask you to inform us on any changes in the budget plan beforehand, so that we can react on it according to our requirements.

7. Interest gained
All interest gained from our or any other funding contributions to the project has to be used for the project and must be shown separately in the statements of Receipts and Payments (cf. Art. 11.).

8. “Acknowledgement of Receipt“
Please confirm receipt of each instalment on our form "Acknowledgement of Receipt" and let us have the bank exchange voucher (cf. General Agreement, Art. 11.).

9. Audited financial statements (for projects funded by Katholische Zentralstelle only)
Twice a year, an audited project report by an independent registered Certified Public Accountant must be provided. You should inform the auditor of the Receipts and Payments plan of the approved project (project contract Sections 3. 'Payments' and 4. 'Receipts') and the audit report should be prepared in accordance with the approved cost items (cf. Detailed Breakdown of Costs, or project contract Section 3. 'Payments'). We require that you conclude a contract with the auditor using the enclosed standard auditing contract.

10. Reserve
If the grant includes a reserve for unforeseen expenses, cost increase and exchange rate fluctuations, please note the related information given in the Special Agreement under 'Miscellaneous provisions'. Whether this amount will be released will be considered at the end of the funding period if you have submitted a special application for it.

11. Final financial statement
On completion of the project (cf. Art. 13. of the General Agreement) please let us have your (audited) final statement of Receipts and Payments.

For construction measures supported by KZE/ Misereor, kindly refer to our guidelines ‘Special Rules concerning Building Projects’.

Please do not hesitate to contact us if you need further clarification. Thank you very much for your attention, and we wish you every success.