Project Audit

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Project Audit

    What is Project Audit in GMSTop

    NGOs partners receiving funds from CBPF are subject to external audit by the Fund. The external audit is an oversight mechanism and an essential component of the accountability framework. It enhances the transparency and sound financial management of resources allocated through CBPFs.

    Steps of Project AuditTop

    The Project Audit module reflects and hosts the following steps in the audit process - from the triggering of the Audit until the finalization of the audit and project closure.

    a. Triggering of audit:Once the final financial report is approved by FCS, the audit is triggered in the GMS. The HFU will receive an email notification, and can make contact with the auditing company to launch the process.
    b. Review and finalization of audit report: The process of review and finalization of the audit report takes place offline, without involvement by FCS Finance. The HFU should review the draft audit report, and liaise with auditors if analysis and/or recommendations are not of sufficient quality. The HFU should also review the partner’s management response to the audit, and ensure it is satisfactory.
    c. Management Response action plan: If the finalized audit report contains critical/high risk findings and/or recommendations, it is mandatory for the HFU to agree with the partner a plan of actions to address these findings. The HFU can draw up a similar plan also for non-critical findings/recommendations, but it is not mandatory. The action plan should include: a) actions, timeframe, person responsible in the partner agency and HFU.
    d. Receipt by FCS Finance: The finalized audit report, partner’s management response and action plan must be shared with FCS Finance through the GMS. FCS will review, and initiate the closure of the project. This means either triggering the refund of unspent/ineligible balance from the partner (if any), Disbursement of any additional funds, or the closure of the project.

    Screen shots of a project undergoing auditTop

    After receiving the audit report from the auditing company, the HFU will fill in the Audit info section and upload the audit report in the Document section and click on the Send Audit report to FCS Finance button.

    On clicking the Send Audit Report to FCS Finance button, the HFU will be prompted to type in ‘Comments for project in "Audit Ongoing"’.
    Also check the checkbox wherein the HFU is held accountable for the audit report being submitted. Also need to select the appropriate action for which the audit report is being submitted for.
    Click the Yes button to submit the audit report.

    FCS finance on receipt of the audio report, would finalize the report by clicking on the appropriate button depending on whether the report has been submitted for project closure, project refund or final disbursement.