BACKGROUND
A Spot-checks forms one element in the risk management program for ensuring the validity of
NGO claims. The other elements are the accreditation process for NGOs that occur on a one-year
cycle and the access and audit provisions of the Head Agreement.
OBJECTIVE:
• To report on the adequacy of financial management and associated systems, procedures
and records employed by the NGO in managing program/projects receiving funds from
Donors.
NGOs selected for spot-checks would normally be given five working days’ notice before the arrival of the Spot check team.
Objective:
1. Emphasis is placed on establishing the existence of appropriate financial management systems and procedures, project management records and data that will substantiate claims from the NGO.
2. Particular attention should be paid to the internal control systems such as procedure manuals and risk management plans, that support the NGO’s systems.
3. Where possible, NGO personnel should assist accessing information on systems and records during the Spotcheck.
4. Once the existence of appropriate systems has been established, examinations are to be undertaken of the NGO’s supporting documentation relating to specific claims (purchase orders/invoices, time sheets, leave records, movement requisitions, or exchange rate calculations).
Our Approach
In consultation with the NGO under review, the Spotcheck will incorporate as necessary the
following:
• Review the relevant program/project files and claims paid by Donors;
• Review relevant documentation held by the NGO;
• Examination of the NGO financial accounting management systems and relevant
documentation associated with the preparation and management of the claim/project.
• Discussions with appropriate NGO personnel; and
• Correlation of the results of the Spotcheck in the form of a report.
Actual Spotcheck
Emphasis to be placed on establishing the existence of appropriate financial systems and procedures, project management records and data that will substantiate claims from the NGO. Particular attention should be paid to the internal control systems in place that support the NGO’s different systems.
• NGO personnel should assist accessing information on systems and records during the Spotcheck.
• Once the existence of appropriate systems has been established, examinations are to be undertaken of the NGO’s supporting documentation relating to the specific claim/acquittal (purchase orders/invoices, time sheets, leave records, movement requisitions, or exchange rate calculations).