AssuranceAssurance

Assurance: What & Why?Assurance: What & Why?

• Awareness of partner’s internal Awareness of partner’s internal controls and financial management controls and financial management practicespractices

• Determination whether funds were Determination whether funds were used for the purposes intendedused for the purposes intended

• Checking accuracy of partner’s Checking accuracy of partner’s reporting on the use of funds to reporting on the use of funds to ensure expenditure is true and fairensure expenditure is true and fair

Key PrinciplesKey Principles

Frequency and Scope of the assurance Frequency and Scope of the assurance activities depend on the level of activities depend on the level of identified risks and amount of cash identified risks and amount of cash transferstransfers

Invest more in assurance activities for Invest more in assurance activities for “weaker” partners“weaker” partners

Assurance: How to do it?Assurance: How to do it?

• Scheduled auditsScheduled audits• On-site reviewsOn-site reviews

Spot checksSpot checks Special audits to address specific Special audits to address specific

weaknessesweaknesses

• Programmatic assuranceProgrammatic assurance Field monitoringField monitoring Annual reviewsAnnual reviews

Scheduled AuditScheduled Audit Timing: Once a cycleTiming: Once a cycle

Who gets audited:Who gets audited:• Every partner receiving more than $500,000 Every partner receiving more than $500,000

per cycleper cycle

Who does the Audit?Who does the Audit?• Supreme Audit InstitutionSupreme Audit Institution• Public accounting firmPublic accounting firm

UN Agency could commission an audit UN Agency could commission an audit (CPAP Clauses)(CPAP Clauses)