KOTTONERA FOUNDATION

APPROVAL OF FUNDS POLICY

 

Version 3.0

DATE – 14 08 2024

 

APPROVAL OF FUNDS POLICY

Effective:    14 of AUGUST 2024

Policy Owner: Kottonera Foundation Chairman Approved by: Board of Governors

 

 

Revision History
Last Revised Date:	Last Revised By:	Last Approved By:	Revision Description:
20/10/2022	Kottonera Foundation Chairman
30/03/2023	Kottonera Foundation Chairman	Kottonera Foundation Chairman	Stricter Regulations
14/08/2024	Kottonera Foundation Chairman	Kottonera Foundation Chairman	Stricter Regulations

 

1.     INTRODUCTION

 

1.1. This document will be considered to be the official Approval of Funds Policy, intended for internal use and administration.

 

1.2.This Policy document has been approved by the Board of Governors and the Chairman, and has become effective forthwith.

 

2.     POLICY STATEMENT, PURPOSE AND SCOPE.

 

2.1.This Policy outlines the principles and guidelines for the approval by the Foundation to grant funds to sponsor events and support projects and initiatives of a cultural, capital, religious, philanthropic, sports, educational, social or civic nature or in support of other deserving causes.

 

2.2.This policy is designed to ensure compliance with relevant Regulations namely the Regulations for The Approval of Events Sponsorship and the Regulations for The Approval of Projects and Initiatives.

 

3.     ROLES AND RESPONSIBILITIES

 

3.1. It will be the responsibility of the Board of Governors to take complete ownership and implement this policy once the appropriate approval is obtained from the Foundation’s Chairman, to impart knowledge about it and its related procedures to the respective departments within the Foundation. This document will also help the Kottonera Foundation to monitor and ensure that the policy is effectively and consistently implemented in order to portray and provide a transparent, homogenous, unbiased and fair treatment of all individuals and entities who interact with the Foundation.

 

 

4.     DEFINITIONS

 

4.1.The following is a list of definitions for terms used throughout this policy.

·     Beneficiary – means the individual or entity applying for funds in accordance with this policy.

·     Board or Board of Governors – means the Board of Governors of the Kottonera Foundation;

·     Chairman – means the Chairman of the Kottonera Foundation

·     Foundation – means, the Kottonera Foundation

·     Fund – means the Cottonera Projects and Initiatives Fund intended for events sponsorship and rehabilitation opportunities.

·     Regulations – means the Regulations for the Approval of Projects and Initiatives and/or the Regulations for the Approval of Events Sponsorship, as the case may be.

 

5.     COTTONERA PROJECTS AND INITIATIVES FUND

5.1. The Foundation shall have a Fund, known as the Cottonera Projects and Initiatives Fund which shall be administered and managed by the Foundation.

5.2.The Fund is intended to be used by the Foundation to sponsor events and support projects and initiatives and rehabilitation opportunities of a  cultural, capital, religious, philanthropic, sports, educational, social or civic nature or in support of other deserving causes.

5.3. The Foundation shall administer and manage the Fund responsibly and in accordance with this Policy and the Regulations.

5.4. The Foundation shall ensure that any funds from the Fund are granted for the following purposes;

i.               Religious, philantrophic and social;

ii.             Educational and civic nature;

iii.           Sport and recreational

iv.            Cultural

v.             Capital projects and restoration.

 

6.     FUND BENEFICIARIES

6.1. All individuals and/or entities who satisfy the requirements of this Policy and/or the Regulations are eligible to receive funds in accordance with the scope of this Policy.

6.2. The beneficiaries of such funds shall include:

i.               Private individuals;

ii.             NGOs registered with the Registrar of Voluntary Organisations, in terms of Chapter 492 of the Laws of Malta;

iii.           Sports Organisations duly registered with Sports Malta, in terms of Chapter 455 of the Laws of Malta; 

iv.            Bodies corporate set up in accordance with Chapter 386 of the Laws of Malta;

v.             Clubs, civic, cultural, educational and religious organisations.

vi.            Specific groups and boards set up for the purpose of organising the event in respect of which funding is requested;

vii.          Any other entity which the Board may deem eligible accordingly.

 

7.     PARAMETERS OF FINANCING.

7.1. In order to ensure that the funds are disbursed and shared by as many beneficiaries as possible, any proposed projects and initiatives can only be considered for financing only if:

i.               Financing needs are “one-off” in nature and do not include any recurring financial commitment to support the project;

ii.             Total contribution towards any proposed project by the Foundations does not exceed Euro 50,000;

iii.           Applications are to commit themselves to co-finance their project by a minimum of 25% (per centum) of its total cost;

iv.            Agreements of a maximum two-year duration are to be entered into to fund the projects.

v.             The funds requested are intended for a public purpose. No funds will be granted in support of a business venture. The Foundation reserves its right to refuse effecting payment for specific goods and/or services procured by the Beneficiary, at its sole discretion.

 

8.     APPLICATIONS AND SELECTION PROCESS.

8.1. Any Prospective Beneficiaries, are to submit the relevant application as indicated in ANNEX I and ANNEX II, to the Foundation for consideration.

8.2. All applications shall be received and processed by the Adjudication Section within the Foundation.

8.3. Following submission of Applications, the Chairman/Board shall appoint a selection committee which will be tasked with vetting all applications and conducting allnecessary verifications in accordance with this Policy and the Regulations. The selection committee shall make recommendations as to whether an application is to be accepted or refused.

8.4. The Selection Committee shall be composed of three (3) members, chosen from and within the Foundation.

8.5. The members of the Selection Committee shall declare any conflicts of interest and sign any documentation which may be deemed necessary.

8.6. Once selection and verification process is completed by the selection committee, the committee shall make a recommendation for approval or refusal, which shall be communicated to the Chairperson for final approval or refusal. 

8.7. All refused applications shall be communicated in writing to the respective applicants.

8.8. Once an application has been approved, a Agreement (ANNEX III) is to be signed between the Foundation and the prospective beneficiary, outlining all obligations of the beneficiary.

 

9.     POST AGREEMENT OBLIGATIONS

9.1. All beneficiaries whose applications has been favourably accepted, shall enter into an Agreement with the Foundation, in accordance with clause 8.8.

9.2. Agreement for event sponsorship.

9.2.1.     All events for which funding has been approved, shall be completed and finalised within six (6) months from the date of signing of the Agreement.

9.2.2.     In the event that the event is not completed within the stipulated timeframe as indicated in clause 9.2.1, the Foundation shall proceed to withdraw the financial commitment or any subsequent balance, as the case may be.

9.2.3.   The Adjudication Section within the Foundation shall monitor and ensure that all time-frames imposed are respected and adhered to by the Foundation. The Adjudication Section shall, without undue delay, inform the Chairperson of any potential breaches prior to the expiry of the time-frames indicated in clause 9.2.1.

9.2.4.     In the event of any breach as indicated in clause 9.2.2., a withdrawal letter is to be sent to the Beneficiary. 

9.2.5.     The Foundation shall ensure that the Beneficiary provides two/three quotes from suppliers prior to the transfer of payment, to ensure transparency and the best price for services and/or goods. The Quotes are to be submitted along with the application.

9.2.6.    Payment shall only be made by the Foundation to the beneficiary upon completion of the Project. The Foundation shall ensure that fiscal receipts are submitted by the beneficiary according to the Value Added Tax Act, Malta, before effecting any payments.

9.3. Agreement for rehabilitation opportunities.

9.3.1.     All projects for which funding has been approved, shall be completed and finalised within two (2) years from the date of signing of the Agreement unless the beneficiary is unable to complete the project within the said time-frame due to justified reasons. In such case, the beneficiary shall, without undue delay, inform the Foundation of any delays in completion and request an extension of the deadline from the Foundation.

9.3.2.     In the event that the project is not completed within the stipulated timeframe as indicated in clause 9.3.1, the Foundation shall proceed to withdraw the financial commitment or any subsequent balance, as the case may be.

9.3.3.   The Adjudication Section within the Foundation shall monitor and ensure that all time-frames imposed are respected and adhered to by the Foundation. The Adjudication Section shall, without undue delay, inform the Chairperson of any potential breaches prior to the expiry of the time-frames indicated in clause 9.3.1.

9.3.4.     In the event of any breach as indicated in clause 9.3.2., a withdrawal letter is to be sent to the Beneficiary.

9.3.5.     The Foundation shall ensure that the Beneficiary provides two/three quotes from suppliers prior to the transfer of payment, to ensure transparency and the best price for services and/or goods. The Quotes are to be submitted along with the application.

9.3.6.     Payment shall only be made by the Foundation to the beneficiary upon completion of the Project. The Foundation shall ensure that fiscal receipts are submitted by the beneficiary according to the Value Added Tax Act, Malta, before effecting any payments.

 

 

 

                                                                                                                            ANNEX I

 

 

COTTONERA PROJECTS AND INITIATIVES FUND

 

EVENTS SPONSORSHIP

 

APPLICATION FORM

 

                                                                                                                                 ANNEX II

  

COTTONERA PROJECTS AND INITIATIVES FUND

 

REHABILITATION OPPORTUNITIES

 

APPLICATION FORM

 

ANNEX III 

               Grant Agreement