Annex 2. Risk consideration checklist Risk Consideration No. Indicator High risk Significant risk Moderate risk Low risk Indicator risk level Comment 1 The annual budget contains all significant government expenditures, including relevant donor contributions No Yes 2 Budget and performance Budget decisions are only nominally debated. Little consideration of previous performance is into account when setting future budgets. Budget decisions are fully debated with assistance from expert committees. Full consideration of previous performance is taken into account when setting future budgets. 3 Budget execution Government historically does not execute budgets as planned. Government historically executes budgets as planned, but there are significant exceptions. Government historically executes budgets as planned with limited exceptions. Government historically executes budgets as planned without exceptions. 4 To what extent are internal controls and Procedures are frequently Procedures are generally Procedures are generally Always.
qualifications necessary to discharge their duties. and qualifications necessary to discharge their duties. whether staff have the skills and qualifications necessary to discharge their duties. necessary to discharge their duties. 15 Financial systems Financial systems only capture and report on the most basic financial data, and this is frequently unreliable. System maintenance and performance is generally poor. Financial systems only capture and report on the most basic financial data. While there are system maintenance and performance problems, generally the system is stable. Financial systems are adequate for most but not all data capture and reporting needs. They are reliable and properly maintained. Financial systems are adequate for data capture and reporting needs. They are reliable and properly maintained. 16 Environmental conditions Natural disasters or significant events regularly occur that displace citizens and resources. Natural disasters or significant events that displace citizens and resources rarely or never occur. 17 Exchange rate volatility Foreign exchange rates fluctuate Foreign exchange rates fluctuate significantly on a Foreign exchange rates have remained Foreign exchange rates do not fluctuate significantly.
significantly on a daily basis. weekly or monthly basis. relatively consistent, with the exception of significant fluctuations. 18 Existence of a market Black market is prevalent and influential in the country. Black market exists and has significant influence in the country. Black market exists in the country, but effective actions are being taken to eliminate or limit its influence in the country. Black market may exist but does not have an influence in the country. 19 <Any specific items identified by agency> Examples: Inflation, reliability of statistics bureau, parliamentarian control, unemployment rate, transparency of
This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. Assessment Questionnaire Subject area Yes No N/A Low risk consideration Risk points Remarks/comments 1. Implementing partner 1.1 Is the IP legally registered? If so, is it in compliance with registration requirements? Please note the status/registration of the entity. Retain copies of registration documents if available. IP is registered in the country where the programme operates and is current with registration/reporting requirements. 1.2 Has the IP received United Nations resources in the past? If so, provide details of amounts, from which agency and for what purpose. IP has received United Nations resources in the past and no issues were encountered with utilizing these funds. 1.3 Does the IP have statutory reporting requirements? If so, are they in compliance with such requirements? Please describe. The IP is compliant with applicable statutory requirements.
3.3 Is the IP’s accounting/finance function staffed adequately to ensure sufficient controls are in place to manage agency funds? If so, please describe. The IP’s accounting/finance function is staffed adequately to ensure sufficient controls are in place to manage agency funds. 3.4 Are accounting/finance staff familiar with United Nations procedures related to cash transfers (specifically the HACT framework)? If so, please provide details. The accounting/finance are familiar with United Nations procedures related to cash transfers (specifically the HACT framework). 3.5 Are there vacancies in positions considered key? If so, provide the estimated date of appointment. The IP does not have any vacancies in positions considered key. 3.6 Are staff frequently transferred to other departments, offices, countries, etc.? If so, what is the estimated frequency? IP staff are not frequently transferred to other departments, offices, countries, etc. 3.7 Does the IP have training policies for accounting/finance staff? Are necessary trainings undertaken? If so, please describe. The IP has training policies for accounting/finance staff, which are undertaken as planned. 3.8 Has there been significant turnover in the past five years? If so, has the rate improved or worsened? Does it appear to be a problem? If so, what is the IP doing to address this issue?” The IP has not had significant turnover in the past five years. 3.9 Does the IP perform background verification/checks on all new accounting/finance and management positions? If The IP performs background verification/checks on all new
alternative practices for processing new are in place, please provide a brief description. accounting/finance and management positions. 3.10 Does the IP have a defined and documented internal control framework? Is this framework consistent with international standards? If so, please describe. Total number of questions in subject area: 10 Number of questions marked ‘N/A’ in subject area: Total number of applicable questions in subject area: Total number of risk points: Organizational structure and staffing overall risk assessment: Divide total number of risk points by total number of applicable questions in subject matter section. This amount should be rounded as detailed on page 1 of this checklist and assigned an overall risk rating. 4. Accounting Policies and Procedures 4a. General 4.1 Does the IP have an accounting system that allows for proper recording of financial transactions from United Nations agencies, including allocation of expenditures in accordance with the respective components, disbursement categories and sources of The IP has an accounting system that allows for proper recording of financial transactions from United Nations agencies, including allocation of expenditures in
4c. Budgeting system 4.11 Do the IP’s budgets lay down physical and financial targets? The IP’s budgets lay down physical and financial targets. 4.12 Are IP budgets prepared for all significant activities in sufficient detail to provide a meaningful tool for monitoring subsequent performance? IP budgets are prepared for all significant activities in sufficient detail to provide a meaningful tool for monitoring subsequent performance 4.13 Are actual expenditures compared to the budget with reasonable frequency? Are explanations required for significant variations from the budget? Actual expenditures are compared to the budget with reasonable frequency, and explanations are required for significant variations from the budget. 4.14 Are approvals required to significant variations from the budget? Approvals are required prior to significant variations from the budget. 4.15 Does the IP have a designated individual(s) responsible for preparation and approval of budgets related to agency funding? The IP has a designated individual(s) responsible for preparation and approval of budgets related to agency funding. 4.16 Are procedures in to plan activities, collect information from the units in charge of the different components and prepare the budgets? If so, please describe. Procedures are in place to plan activities, collect information from the units in charge of the
guide activities and ensure staff accountability. 4.26 Do procedures exist to ensure that only authorized persons can alter or establish a new accounting principle, policy or procedure to be used by the IP? The IP has procedures in place to ensure that only authorized persons can alter or establish a new accounting principle, policy or procedure. 4.27 Are there written policies and procedures covering all routine financial management and related administrative activities? Are these accessible? Please describe. There are accessible written policies and procedures covering all routine financial management and related administrative activities. 4.28 Do policies and procedures clearly define ‘conflict of interest’ and ‘related party transactions’ (real and apparent) and provide safeguards to protect the organization from them? If so, please describe. The IP has well-defined policies and procedures for ‘conflict of interest’ and ‘related party transactions’ (real and apparent) that provide adequate safeguards to protect the organization from them. 4.29 Are manuals distributed to appropriate personnel? If so, please describe the manuals and the personnel who receive them. Manuals are distributed to appropriate personnel. 4f. Cash and banks 4.30 Are there authorized signatories on the bank accounts that will be used for United Nations resources? How many The IP has signatories on the bank accounts that will be used for United Nations resources
9.22 Does the IP regularly check ‘market’ prices for goods and services purchased? If so, describe the frequency and process. The IP regularly checks ‘market’ prices of goods and services purchased. 9.23 Does the IP conduct public bid opening for formal procurement methods (invitation to bid and request for proposal)? What is the composition of public bid opening committees? The IP conducts public bid opening for formal procurement methods. 9.24 Does the IP have a well-defined process in place to ensure a secure and transparent bid and evaluation process? If so, describe the process. The IP has a well-defined process in to ensure a secure and transparent bid and evaluation process. 9.25 Does the IP establish long-term agreements with suppliers on a tender process? The IP establishes long-term agreements with suppliers based on a tender process. 9.26 Are long-term agreements reviewed/retendered? If so, how frequently? Please describe. Long-term agreements are reviewed and retendered. 9f. Awarding of contracts 9.27 When a formal invitation to bid has been issued, does the IP award the procurement contract to the qualified bidder whose bid substantially conforms to requirements set forth in the solicitation documentation and offers the lowest cost? The IP awards procurement contracts to qualified bidders whose bids substantially conform to requirements set forth in the solicitation documentation and offer the lowest cost.
Sample of Expenditures. This is a minimum requirements template. It may be modified to include additional sections. Sample expenditure description and voucher number Sample amount reported Documentation exists to support expenditure in accordance with IP’s applicable rules and procedures and agreements with the agency? (Y/N) – document the evidence reviewed Activity is related to expenditure in accordance with work plan? (Y/N) – document the line item in the budget or work plan Expenditure has been reviewed and approved in accordance with IP’s applicable rules and procedures and agreements with the agency? (Y/N) – document the level of review and approval Expenditure was reflected on a certified FACE form submitted to the agency and in IP’s accounting records and bank statement? (Y/N) Supporting documents are stamped ‘PAID from XXX indicating which agency funded the transaction or coded to and recorded in a UNICEF specific fund? (Y/N) Expenditure was recorded in the IP’s accounting records and reflected in a certified FACE form in the period in which it was incurred(Y/N) Price paid for goods or services against United Nations agreed standard rates (if readily available) and according to budget finding sample expenditures: Total expenditures reported on FACE forms during period under spot check: Percentage coverage: (Total sample expenditures divided by total expenditures reported on FACE forms during period under spot check)