Internal Controls and Financial Management Policies

Indirect Cost Allocation Plan

Since More Gardens Fund does not have a negotiated indirect cost rate agreement, we utilize a consistent methodology to ensure that indirect costs are allocated fairly and at the most favorable rate possible. Our process follows established guidelines for nonprofit financial management and aligns with best practices in cost allocation.

Step 1: Identify Indirect Cost Categories Indirect costs are identified as expenses that are not directly attributable to specific projects but are necessary for overall organizational operation. These typically include:

Administrative costs (e.g., executive director services, financial oversight)
Office space rent and utilities
Insurance
Accounting and audit services
Office supplies
Technology and software support

Step 2: Calculate the Indirect Cost Rate To determine our indirect cost rate, More Gardens Fund follows this calculation method:

Indirect Cost Rate (%) = (Total Indirect Costs / Total Direct Costs) x 100

This method ensures that indirect costs are proportionally allocated based on project expenses, promoting financial transparency and accountability.

Step 3: Allocation to Programs and Projects

Each project budget incorporates a percentage of indirect costs aligned with the calculated rate.
When preparing budgets for grant applications or contracts, we apply the calculated indirect cost rate unless funders have predetermined guidelines.
We regularly review and adjust our indirect cost rate to reflect changes in organizational expenses and operational needs.

Financial Management Systems

More Gardens Fund maintains a robust financial management system designed to provide accountability over project funds, property, and other assets. This system tracks all income and expenses, ensures spending aligns with grant requirements, and safeguards organizational resources. The system includes internal controls, regular financial reporting, and clear documentation protocols to ensure financial accountability.

Personnel Policies

More Gardens Fund's personnel policy outlines fair and equitable treatment for all individuals involved with the organization. This includes:

Pay Rates & Benefits: Clearly defined contractor rates, stipends, and benefits based on project scope and industry standards.
Time and Attendance: Procedures to document work hours, especially for grant-funded activities.
Leave: Policies on acceptable leave types and request processes.
Discrimination: Commitment to maintaining a discrimination-free environment for all employees, contractors, and volunteers.
Conflict of Interest: Clear guidelines on disclosing potential conflicts and ensuring impartial decision-making, aligned with NIH and NSF requirements.

Conflict of Interest Policy

More Gardens Fund’s Conflict of Interest Policy requires all staff, contractors, and board members to disclose potential conflicts. The policy outlines procedures for addressing conflicts, including recusal from decision-making when necessary. The policy is compliant with 42 CFR Part 50 Subpart F and 45 CFR Part 94 standards.

Subrecipient Labor and Benefit Charges

To ensure accurate reporting, More Gardens Fund requires:

Detailed Timesheets documenting work hours charged to specific grants.
Percentage of Effort Reporting to ensure labor costs align with the employee's or contractor’s project contributions.

Travel Policy

More Gardens Fund’s travel policy outlines:

Advance Approval for travel expenses.
Cost Controls to ensure travel is cost-effective.
Required Documentation such as receipts and travel logs to confirm the appropriateness of expenses.

Purchasing Procedures

More Gardens Fund’s purchasing policy ensures:

Competitive Pricing through multiple bids where applicable.
Approval Controls to prevent unauthorized purchases.
Documentation of all purchase decisions to ensure transparency and accountability.

Inventory Management for Government Property

More Gardens Fund’s inventory system includes detailed tracking of:

Purchase Date
Cost
Vendor
Description
Serial Number
Location
Ultimate Disposition Data

This process ensures accountability for government-funded assets.

Financial Review and Accountability

More Gardens Fund’s financial accountability practices include:

Independent Financial Review conducted by My Paper Pusher.
Separation of Duties to prevent any individual from having full control over financial transactions.
Budget Controls to prevent exceeding approved limits.
Documentation of Disbursements to ensure funds are used appropriately.
Monthly Bank Reconciliation to verify financial records align with bank statements.
Payroll Audits to ensure labor charges align with program budgets.

Time Control System

More Gardens Fund requires detailed documentation of paid time, including timesheets and effort reporting to ensure project-specific labor costs are accurate and compliant with funding requirements.

Procurement Procedures

More Gardens Fund’s procurement process emphasizes competitive pricing, appropriate approvals, and documented purchasing decisions to ensure responsible spending practices.

Authorization and Approval System

More Gardens Fund’s approval system ensures:

Capital Equipment Expenditures are reviewed and approved before purchase.
Travel Expenses are pre-approved to ensure they meet budgeted guidelines.

Asset Management

More Gardens Fund maintains:

Detailed Capital Asset Records for tracking equipment, tools, and materials.
General Ledger Balancing to ensure inventory matches financial statements.
Property Disposal Procedures to ensure controlled removal of obsolete or excess assets.
Periodic Physical Inventory Checks to confirm inventory accuracy.

Nondiscrimination and Civil Rights Compliance

More Gardens Fund has a strict policy to ensure all organizational activities are conducted without discrimination, following U.S. Federal Civil Rights requirements.

Cash Forecasting Process

More Gardens Fund implements a forecasting process to predict cash flow needs, ensuring the organization draws funds only when required, minimizing the time between fund drawdown and disbursement.

System for Award Management (SAM)

More Gardens Fund maintains current, accurate information on the System for Award Management (SAM) website, with active registration through January 1, 2026.