Spreadsheet: e33db9ca-6d79-4007-a21e-e403a0e26225
Sheet: LFA_Findings&Recommendations

[NAME] On-going Progress Review and Disbursement Recommendation
DISBURSEMENT REQUEST PERIOD
Grant number:
Progress Update - Reporting Period: |  | Cycle: |  | Number:
Progress Update - Period Covered: |  | Beginning Date: |  | End Date:
Progress Update - Number:
LFA-specific section:  LFA Findings & Recommendations
! Based on the information provided in the previous sections and your understanding of the grant, please summarise any important management issues, proposing a recommendation for each. NB: an issue is considered as 'important' if it impacts or is likely to impact program implementation and results.                                                                                                                                                                                                          ! Instead of repeating detailed descriptions of issues covered in other sections, it is acceptable to state the issue and reference the section containing the details.
Functional Areas |  | Description of Identified Issues  (in order of importance) |  |  | [NAME]  (in order of importance) |  |  |  | FPM Comments (to be completed upon receipt of the LFA-verified form)
Financial management and systems |  | Budgeted exchange rate used to translate cumulative expenditure  According to International Accounting Standards (IAS 21), an exchange rate that approximates the actual rate at the date of the transaction is often used for translation of transactions. An average rate for a week or a month might also be used for all transactions in each foreign currency occurring during that period. For the current quarter, transactions were appropriately translated at average rates on a monthly basis.  The cumulative expenditure for the year, on the other hand, was translated at the budget rate of D38.25 - € 1. |  |  | Recommendation    The PR should ensure that transactions are translated to the reporting/presentation currency using the rate that approximates the actual rate at the date of the transaction, and cash balances at the end of the period should be translated using the closing rate at the date of the end of the reporting period.
Financial management and systems |  | Long outstanding reconciling items noted in bank reconciliation statements   We identified long outstanding reconciling items amounting to €251 from review of the bank reconciliation statement for Round 8 Dalasi account as at 31 December 2010. Reconciling items are usually considered long outstanding and stale after a 6 month period. The items identified were mainly unpresented cheques which had been outstanding since March 2010. |  |  | Recommendation   We recommend that these unpresented cheques are reversed in the cash book as they may be stale and not accepted by the bank if presented.
Financial management and systems |  | Variances noted in budget and actual expenditure reported in EFR  We noted a variance of Eur 157,976  between the expenditure reported in the EFR of Eur 1,368,698 and the cumulative expenditure reported in the PUDR of Eur 1,526,224 for the period from 1 December 2009 to 31 December 2010.    We also noted a variance of Eur 64,104 between the budget amounts reported in the EFR of Eur 1,902,135 and approved budget in the grant agreement of Eur 1,838,031.   Subsequent enquiry revealed that the budget that the PR used was based on a revised budget which has not been approved by the GF. |  |  | Recommendation    We recommend that the PR review the EFR and resolve these variances for our final review.
Pharmaceutical & health product management |  | Potential shortage of during last quarter of Year 2 We noted during the assessment of the stock levels of condoms that the available stock as at 28 February 2011 will not be adequate to cater for the expected consumption for the whole of year.  This is based on the analysis below:  The stock of male condoms as at February 2011 was 488,160 and the monthly consumption in 2010 was 70,898. On the assumption that the 2010 monthly consumption pattern will continue in 2011, the existing stock of male condoms will only last for a maximum of 7 months, implying that by the end of September, the stock would have been exhausted.  A review of the PR's Year 2 budget shows that there is no budget for the procurement of condoms in Year 2. |  |  | We recommend that PR in collaboration with the National AIDS Secretariat should explore other avenues for funding to procure the additional condom requirements for the year.
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 |  |  |  | LFA_Findings & Recommendations
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Program management (including SR management)
Financial management and systems
Monitoring and evaluation
Pharmaceutical & health product management
Other management issues, including: PR capacity to develop quality programmatic and financial reports