Sub-Grant Risk Assessment

SUB-RECIPIENT RISK ASSESSMENTRISK WEIGHT CALCULATION SHEET

(Prioratizing monitoring activities to the sub-recipients)

Q. Groups Q. Sections Q. Catagories

PRE-AWARD ASSESSMENT

Financial Management 30Section (G) Accounting Records 48.00 Section (H) Banks, Payments and Receipts 45.00 Section (F) Budgeting and Financial Reporting 27.00

120.00

Human Resources Management 15Section (I) Payroll and Salaries 32.00 Section (E) Personnel Management 37.00

69.00

Logistics & Administration 5Section (K) Audit Management 16.00 Section (L) Travel Management 20.00

36.00

Organization Information 15Section (B) Lead Control Environnent 23.00 Section (A) Organization Management 37.00

60.00

Procurement & Supply Chain 20Section (J) Fixed Assets 26.00 Section (M) Procurement Management 32.00

58.00

Program Management 15Section (D) Associates/consortium Partner Management 19.00 Section (N) Monitoring and Evaluation 18.00 Section (C) Program Management 20.00

57.00 100 400.00

DESK REVIEW ASSESSMENT

Overall Desk Review 100

Section (A) General Assessment 22.00

Section (B) Organizational Capacity 19.00 Section (C) Overall Fiscal Assessment 22.00 Section (D) Organization's Performance 32.00 Section (E) Monitoring / Audit Assessment 21.00

100 116.00

Group Weight %

Risk Impact

SUB-RECIPIENT RISK ASSESSMENTRISK WEIGHT CALCULATION SHEET


12.00 11.25 6.75 30.00

6.96 8.04 15.00

2.22 2.78

5.00 5.75 9.25 15.00

8.97 11.03

20.00 5.00 4.74 5.26 15.00

100.00

18.97

16.38 18.97 27.59 18.10

100.00

Section Weight %

SUB-RECIPIENT RISK ASSESSMENTRISK SCORE SHEET


SR-1 SR-2

Q. Sections Q. Catagories RISK SCORE RISK % RISK SCORE

PRE-AWARD ASSESSMENTSection (A) Organization Management 9.25 8.25 89%Section (B) Lead Control Environnent 5.75 5.25 91%Section (C) Program Management 5.26 4.47 85%Section (D) Associates/consortium Partner Management 5.00 4.21 84%Section (E) Personnel Management 8.04 7.39 92%Section (F) Budgeting and Financial Reporting 6.75 6.50 96%Section (G) Accounting Records 12.00 12.00 100%Section (H) Banks, Payments and Receipts 11.25 11.25 100%Section (I) Payroll and Salaries 6.96 6.96 100%Section (J) Fixed Assets 8.97 8.97 100%Section (K) Audit Management 2.22 2.22 100%Section (L) Travel Management 2.78 2.78 100%Section (M) Procurement Management 11.03 11.03 100%Section (N) Monitoring and Evaluation 4.74 4.74 100%

100.00 96.02 96%

DESK REVIEW ASSESSMENTSection (A) General Assessment 18.97 16.38 86%Section (B) Organizational Capacity 16.38 11.21 68%Section (C) Overall Fiscal Assessment 18.97 18.97 100%Section (D) Organization's Performance 27.59 27.59 100%Section (E) Monitoring / Audit Assessment 18.10 18.10 100%

100.00 92.24 92%

OVERALL ASSESSMENT 200.00 188.26 94%

Risk Wighet

SR-2

RISK %

SUB-RECIPIENT RISK ASSESSMENT(Prioratizing monitoring activities to the sub-recipients)

PART-1 : PRE-AWARD ASSESSMENT QUESTIONNAIRENO responses indicate risk

Q. SL Key Questions Weight Risk Score

Sec-A ORGANIZATIONAL MANAGEMENT 9.25 1 Is the organization being audited annually? 3 1 0.75

2Does the organization have a clear and up to date organizational chart? 2 1 0.50 Was the organizational chart revised in the last 12 month? 2 1 0.50

3 1 1 0.25

4Is there a written personnel manual? 2 1 0.50 Was the personnel manual revised within last 12 months period? 2 1 0.50

5Is there a written “Policies and Procedures Manual”? 2 0 - Was the “Policies and Procedures Manual” revised within last 12 months period? 2 1 0.50

6What is your current total grant portfolio in US $? (Up to 2 Million USD) 1 1 0.25 What is your current total grant portfolio in US $? (2-5 Million USD) 2 0 - What is your current total grant portfolio in US $? (Above 5 Million USD) 3 1 0.75

7

1 1 0.25

2 1 0.50

3 1 0.75

8 Is your organization involved in any lawsuits? 3 1 0.75

OverallAdditional Comments & Observation: Satisfactory 1 1 0.25 Additional Comments & Observation: Moderate / Need Improvement 2 1 0.50 Additional Comments & Observation: Not - Satisfactory 3 1 0.75

37 8.25

Sec-B LEAD CONTROL ENVIRONMENT 5.75

1 3 1 0.75

2 3 1 0.75

3 2 0 -

4 2 1 0.50

5 Are there proper authorization controls and are these being practiced? 2 1 0.50

6 3 1 0.75

7 2 1 0.50


23 5.25

Sec-C PROGRAM MANAGEMENT 5.26

1 3 1 0.79

2 2 1 0.53

3 2 1 0.53

4 2 1 0.53

5 3 0 -

6 2 1 0.53


20 4.47

Risk Impact (HML)

Y=0 N=1

Are lines of authority and reporting clearly written down and communicated to staff?

What is your anticipated other fundings during the life of this project (Up to 2 Million USD)What is your anticipated other fundings during the life of this project (2-5 Million USD)What is your anticipated other fundings during the life of this project (Above 5 Million USD)

Is the organizational structure of the team adequate and appropriate for the program?Is the organizational leadership aware of Conflict of Interest policies of the Global Fund?Is the budget review, approval and revision process clearly defined and well understood by all?Are the key staffs aware of the agreement terms and conditions, GFATM policies, SCUSA policies on grants?

Are there acceptable levels of record keeping assuring that transactions and events are properly recorded?Are there acceptable levels of safeguards over access to and use of assets and records against harm, loss, misuse or unauthorized alteration?

Is there satisfactory organizational structure of the team responsible for managing the Programs.Is there established and satisfactory management decision making process and the funding operations/mechanisms for suppliers and consortium partners.Does the organization have adequate capacity and history for successfully managing the associate/consortium partners?Are human resources, infrastructure and management commitment and oversight adequate to support activities proposed under the program?Do the key individuals responsible for implementing the program have written job descriptions that incorporate responsibilities for such implementation?Does the organization have adequate number of technical professionals with requisite expertise?

Sec-D ASSOCIATE/CONSORTIUM PARTNER MANAGEMENT 5.00

1 2 1 0.53

2 2 1 0.53

3 1 1 0.26

4 2 1 0.53

5 3 0 -

6 3 1 0.79


19 4.21

Sec-E PERSONNEL MANAGEMENT 8.04

1

Does management have a complete list of all staff employed? 3 1 0.65 How many employees are working in your organization? (Up to 100) 1 1 0.22 How many employees are working in your organization? (100 to 300) 2 1 0.43 How many employees are working in your organization? (300 to Above) 3 1 0.65

2 List the names and titles of the five highest paid employees: 0 1 -

3 3 1 0.65

4 3 0 -

5 Is the staff compensation consistent across organization? 2 1 0.43 6 Are written job descriptions for all staff in effect and updated on regular basis? 2 1 0.43

7 3 1 0.65

8 3 1 0.65

9 Do the organization use attendance sheets (and time sheets if applicable) for all staff? 3 1 0.65

10 2 1 0.43

11 1 1 0.22


37 7.39

Sec-F BUDGETING & FINANCIAL REPORTING 6.75

1 2 1 0.50

2 1 1 0.25

3 1 1 0.25

4 Are budget revisions done on regular basis to new funding, income or loss? 2 1 0.50 5 Are cash flow projections prepared and planned? 2 1 0.50 6 Are regular financial reports presented to management and board of trustees? 3 1 0.75

7 2 1 0.50

8 3 1 0.75

9 2 1 0.50

10 1 0 -

Are all the key assessment areas covered in the assessment of associate/consortium partner?Please elaborate on the associate/consortium partner selection, assessment and grant negotiation. Are the systems and processes adequate and effective?Are the key capacity building, technical assistance and other supports to associate/consortium planned by the organization is satisfactory?Does the organization have necessary tools and resources for associate/consortium partner performance monitoring, evaluation, risk assessment and internal control assessment?Is the organization’s fund disbursement mechanism adequate? Is it capable of making timely disbursements?Is the financial and management information system sufficient to ensure the availability and integrity of financial and programmatic data from the associate/consortium partner? Will this system enable the lead to adequately track associate/consortium partner expenditures?

Does the organization follow an open and transparent recruitment policy? (Advertising, interviews, checking references)?Are written employment contracts provided for each employee before starting employment?

Is a personnel file kept for each employee with details of employment history including employment contract, salary revisions, job description and performance evaluations?Is a written salary scale in effect, applied to all employees and updated on regular basis?

Does the organization make adequate and appropriate financial provisions for severance and any other retirement funds?Does the organization do regular training workshops for all staff at all levels and share ideas to improve the performance of the organization?

Does the organization prepare an annual budget and does the board of trustees approve it?Does management insure that all expenditures are authorized and fall within the approved budget guidelines?Does management review and closely monitor year to date expenditures vs. approved budget on regular basis, and explain any variances?

Are financial reports prepared within a reasonable time? What is the time frame for finanical reporting?Are financial reports signed, dated and mathematically accurate, and do they agree with the organization’s financial records (trial balance and budget)?Are grant financial reports prepared in accordance with grant requirements and format (monthly, quarterly and annually)?Is the leadead well rated among its current donors/lenders with regards to timeliness and relevance of its reports?

11 2 1 0.50


27 6.50

Sec-G ACCOUNTING RECORDS 12.00 1 Are qualified staffs managing the accounting department? 2 1 0.50 2 Is there a computerized accounting system in use? 2 1 0.50 3 Is there an updated chart of accounts? 2 1 0.50 4 Is there a cash register listing all cash and check payments on daily basis? 3 1 0.75 5 Does the ledger include all account transactions of the organization? 3 1 0.75

6 What is the financial record retention timeframe? Is donor requirement followed? 2 1 0.50

7 1 1 0.25

8 1 1 0.25

9 1 1 0.25

10 2 1 0.50

11 3 1 0.75

12 Do opening balances agree with prior period ending balance? 3 1 0.75 13 Are all vouchers recorded and posted to the ledger on regular basis? 3 1 0.75 14 Are all vouchers filed with all original supporting documents chronologically? 2 1 0.50 15 Are the books closed at the end of each month? 3 1 0.75

16 3 1 0.75

17 3 1 0.75

18 3 1 0.75


48 12.00

Sec-H BANKS, PAYMENTS AND RECEIPTS 11.25

1 3 1 0.75

2 Are checkbooks kept in safe place? 3 1 0.75 3 Are all checks signed by at least two signatories? 3 1 0.75 4 3 1 0.75 5 Do voided checks say “Void” on them? 3 1 0.75

6 1 1 0.25

7 3 1 0.75

8 Is the NGO familiar with or operating electronic/automated banking, EFT etc? 0 1 -

9 2 1 0.50

10 2 1 0.50

11 2 1 0.50

12 Is excess cash of day-to-day requirements kept in interest bearing accounts? 3 1 0.75 13 What are the petty cash limits and control procedures? Are they adequate? 2 1 0.50

14 3 1 0.75

15 Are all payment vouchers supported by relevant documentation and stamped “paid”? 3 1 0.75

Are annual accounts prepared within a reasonable time and available for external audit?

Is there a Chart of Accounts that can include the GFATM grant and does it provide the necessary level of detail to effectively monitor expenditure in a timely manner?

What basis of accounting – cash, accruals etc – is being used by the lead and comment on whether it is appropriate for the grant?Is the financial management system computerized and if so what software is in use and is it appropriate for the task? If not computerized (1) are there plans to do so, and (2) are the existing manual systems capable of handling the anticipated volume of transactions under the GFATM grant?If computerized accounting systems exist, is there a process for carrying out regular back-ups and will they be kept off the premises?Can the Accounting system support the production of financial reports, including statements of Cash Flow, Income & Expenditure and Balance Sheet in a timely and relevant way?

Does the trial balance include all account balances and do total debits equal total credits?Is the trial balance the base for preparing financial reports and do figures agree with it?Are adjustments made at the end of reporting periods and do they include prepaid and accrued expenses?

Are all accounts in the name of the organization and included in the organization’s accounting records?

Do you have any restriction to sign blank checks?

Are details of each check recorded on the checkbook slip including the balance of the bank account?Are bank reconciliations accurately prepared on a monthly basis, checked and approved by a chief accountant or manager?

What are the average, standard, maximum and minimum time requirements for completing the whole process of initiating and clearing a payment? Is it more than 15 days?Are outstanding checks followed up closely, making sure they do not exceed thirty days?Is the NGO compliant with the Global Fund requirement to deposit funds in interest bearing account?

Are pre-numbered receipts with the name of the organization used to record all receipts?

16 Are all payments properly coded to the proper budget line item and grant? 3 1 0.75


45 11.25

Sec-I PAYROLL & SALARIES 6.96 1 Are all staff on the payroll records? 3 1 0.65

2 Does the gross salary on the payroll sheet match the salary in employee’s contract? 3 1 0.65

3 3 1 0.65

4 Are payroll sheets checked and counter-signed by the organization’s director? 3 1 0.65

5 3 1 0.65

6 3 1 0.65

7 3 1 0.65

8 Are original monthly timesheets filed separately and kept in safe place? 2 1 0.43

9 3 1 0.65


32 6.96

Sec-J FIXED ASSETS 8.97 1 Is a fixed asset register maintained with a listing of all currently existing assets? 3 1 1.03

2 3 1 1.03

3 Is the register updated regularly to include all purchases and or disposals of assets? 2 1 0.69

4 Does an authorized person approve all asset purchases and disposals? 3 1 1.03 5 Are assets properly safeguarded and covered with adequate insurance? 2 1 0.69 6 Is there proper control for maintenance and use of assets? 2 1 0.69 7 Is there a physical count of assets done at least annually? 3 1 1.03

8 2 1 0.69


26 8.97

Sec-K AUDIT MANAGEMENT 2.22 1 Are the financial statements audited by independent auditors? 3 1 0.42

2 2 1 0.28

3 3 1 0.42

4 Is there an internal audit department/unit? Is the unit independent and effective? 2 1 0.28


16 2.22

Sec-L TRAVEL MANAGEMENT 2.78 1 Are there written travel policies and procedures? 3 1 0.42

2 3 1 0.42

3 3 1 0.42

4 2 1 0.28

5 3 1 0.42

Overall

Additional Comments & Observation: Satisfactory 1 1 0.14

Does the organization ensure that all staff time sheets are properly filled and signed by both staff and the supervisor before payroll calculation?

Does the organization use employee time sheets as the basis for charging salaries to different grants?Is the payroll paid by bank transfer to individual bank accounts OR if not possible, by check in the name of each staff member?Are there procedures in place to insure correct calculation of salaries including adjustments to unpaid leave, overtime and withholdings?

Are taxes and withholdings paid to the ministry of finance on time, and are records of such payments kept on file at all times?

Does the register include all required information about each asset (ID Number, cost, purchase date, condition, serial number, funding source)?

Is the LEAD aware of the Global Fund and SCUSA requirements on ownership of assets?

What guidelines/ Auditing Standards/salutatory requirements are to be complied with in contracting and performing audits? Are they satisfactory?What were the outstanding (open) audit recommendations during the last 3 years, if any? How were the recommendations resolved? Are all the recommendations settled timely?

Do the policies address mode of transport, classes, entitlements/limits, perdiem, lodging, meals, incidentals etc.? Are the policies and practices consistently adhered to?What are the applicable policies in case of overseas travels? Is it satisfactory?

What are the applicable policies in case of use of personal vehicles? Is it satisfactory?

How do the travel request, authorization, and trip report operate? Are they adequate?

Overall Additional Comments & Observation: Moderate / Need Improvement 2 1 0.28 Additional Comments & Observation: Not - Satisfactory 3 1 0.42

20 2.78

Sec-M PROCUREMENT 11.03 1 Are all items procured necessary for grant implementation? 3 1 1.03

2 3 1 1.03

3 Are all procured items authorized by responsible person prior to procurement? 3 1 1.03

4 3 1 1.03

5 2 1 0.69

6 3 1 1.03

7 3 1 1.03

8 Is a receipt voucher or certificate issued listing all items received? 3 1 1.03 9 Does an official tax invoice in the name of the organization support all purchases? 3 1 1.03


32 11.03

Sec-N MONITORING & EVALUATION (M&E) 4.74

1 3 1 0.79

2 2 1 0.53

3 3 1 0.79

4 2 1 0.53

5 2 1 0.53


18 4.74

100.00 400 96.02

Are clear and accurate specifications for all procured items included in the tender document?

Does the organization obtain written quotations form at least 3 supplies before selection?Are there clear lines of authority for each and every person involved in the procurement process (checks and balances)?Does a procurement committee (or, senior management team) review and select the offers?Are offers with lowest prices usually selected, and if not, is written justification provided?

Please describe the existing M&E setup within the organization. Is it adequate and well staffed and in keeping with the program?Are there appropriate tools, systems and guidelines available for proper functioning of M&E activities?

Has the LEAD monitored and evaluated the results of the Programs under the Existing Grant(s) in accordance with the M&E Plan(s) approved by SCUSA (including frequency of data collection, agreed methods of measuring results, agreed methods of evaluating activities, completion of required baseline studies etc.)?

Has the LEAD reported results against the indicators and targets as agreed upon in the workplan and Performance Framework? Has the LEAD provided appropriate comments for the variance between the results and targets set in the Performance Framework?Has the M&E system used by the LEAD been appropriate for the purposes of reporting regular, timely and reliable results? Please provide your overall assessment of the LEAD’s strengths of M&E systems, is it reliable and adequet?

SUB-RECIPIENT RISK ASSESSMENT(Prioratizing monitoring activities to the sub-recipients)

PART-2 : DESK REVIEW QUESTIONNAIREYES responses indicate risk

Q. SL Key Questions Weight Risk Score

Sec-A GENERAL ASSESSMENT 18.97 1 1 1 0.86 2 Is the type of sub-recipient organization for-profit? 2 1 1.72

3 3 1 2.59

4 1 1 0.86

5 2 1 1.72

6 3 0 -

7 3 1 2.59

8 3 1 2.59

9 Is the organization awarded with any special contract conditions? 2 1 1.72

10 2 1 1.72

22 16.38

Sec-B ORGANIZATIONAL CAPACITY 16.38 1 Does the organization have multiple active SC grants? 2 1 1.72 2 Does the organization have multiple donor grants for similar type of projects? 3 0 - 3 Does the organization have multiple donor grants for different projects? 1 1 0.86

4 3 0 -

5 2 1 1.72

6 2 1 1.72

7 3 1 2.59

8 3 1 2.59

19 11.21

Sec-C OVERALL FISCAL ASSESSMENT 18.97 1 Has the organization frequently been untimely in the drawn down of funds? 3 1 2.59

2 3 1 2.59

3 Has the organization returned (lapsed) significant unspent funds? 3 1 2.59 4 Does the organization have a large amount of budget carryover? 3 1 2.59

5 2 1 1.72

6 3 1 2.59

7 3 1 2.59

8 2 1 1.72

22 18.97

Sec-D ORGANIZATION’S PERFORMANCE 27.59 1 Was the sub-recipient application incomplete? 2 1 1.72

2 3 1 2.59

3 3 1 2.59

4 3 1 2.59

5 3 1 2.59

6 Does the organization have significant staff turnover? 2 1 1.72

Risk Impact (HML)

Y=1 N=0

Is this organization a Local Organization (Not a foreign organization)?

Is there any complexity associated with the grant award (sensitivity of the work and/or extensiveness of the governing regulations)?Is the organization located in a different city (but accessible) than Dhaka? Does the organization work in remote (difficult to get to) areas like far-off coastal area or hill tract? Does the organization have an indirect cost allocation plan or a negotiated indirect cost rate? Is the program unusually complex (e.g., program, funding, matching requirements)?Is there a potential organizational or individual financial conflict of interest exist in this organization?

Is this organization has been awarded propotionately higher percentage of total grant than other partners?

Is the organization new to operating or managing grant funds (has not done so within the past three years)?Is this type of program new for the organization (has not managed within past three years)?Does the organization have any independent source of funding (like funding from sister concern, business, micro-credit operation)?Does the organization have proven inability / inefficiency to deliver project within budget and on schedule? Does the organization have inadequacy of staffs experienced with this type of program activity?

Are there significant variations between expenditures and the budget? (Review last six FSR)

Are the organization’s fiscal statistics outside of tolerance or trends (e.g., much more expenditures on supplies than average)?Has the organization had difficulty meeting matching / maintenance of effort requirements?Were there any misstatements in the financial status reporting that approach a material amount? Does the organization keep its accounting records manualy and without maintaining any standard accounting manual?

Has the organization typically been untimely in responding to program/fiscal questions?Have any other entities (other organizations, auditors, staff employed by the organization, SC program and grant monitoring staff etc.) alerted us of potential risk areas related to this organization?Is organization currently or previously been suspended or debarred or any of its cost disallowed?Has the organization been defaulted / discontinued / terminated from any SC grant with in previous five years?

7 Is there a history of: 0 1 - 8 2 1 1.72 9 3 1 2.59

10 3 1 2.59

11 3 1 2.59 12 Is the degree of management effort higher to ensure that - 0 1 - 13 2 1 1.72 14 3 1 2.59

32 27.59

Sec-E MONITORING/AUDIT ASSESSMENT 18.10

1 3 1 2.59

2 3 1 2.59 3 Are there any unresolved monitoring findings with this organization? 3 1 2.59

4 3 1 2.59

5 Are there any citizen complaints against this organization? 3 1 2.59

6 3 1 2.59

7 3 1 2.59

21 18.10

– unsatisfactory performance?– financial instability;– an inadequate management system that does not meet the standards mandated in grants; – failure to comply with the terms and conditions of previous sub-awards

– program requirements are met– costs are controlled according to budget boundary2

Have more than last three funding cycles passed since the organization had an on-site monitoring visit?Were there any significant findings / violations in the prior monitoring visits?

Has it been more than one year since the sub-recipient received a single audit (If A133 applicable)?

Has the organization received audit findings from SC GARS within last two years indicating weakness in internal control?Has the organization received an unqualified opinion on the financial statements or internal control system from any external auditor?

Documents

Sub-Grant Risk Assessment