Appendices 5.

3 to audit instruction for partner organisations /Valid since 1 January 2005 (Revised in June 2007)

Checklist for assessment of the partner organisations financial management

This checklist is an aid for the assessment of the partner organisations financial management. It is to be considered as an aid and is not comprehensive. 1. Current recording 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 Is the accounting systematically arranged? general ledger Is the accounting chronologically arranged? journal Is reconciliation regularly done, what reconciliation, is it adequate? Does the external reporting (income and balance reports, project reports, annual accounts) match the reports drawn from the financial system? Is the accounting up to date? Is it possible to follow the course of the operations, results and position? Is the verification number series uninterrupted? Do the verifications meet the requirements regarding what is intended, who the counterpart is (supplier etc), date, what amount? Are there any self-written verifications, and to what extent? Is accounting material stored in a secure manner?

2. Accounting system 2.1 2.2 2.3 2.4 Is the financial system reliable? Is a standardised accounting system used? Does the accounting system provide the right information? Can the accounting system handle reporting at project level, that is are projects financed by Sida separately accounted for?

3. Internal control and management 3.1 3.2 Check which routines are available, assessment of accuracy and completion Is the division of labour well thought out (for example division of responsibility payment instructions of funds)?

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3.3 3.4 3.5 3.6 3.7

Has an authorisation order been established, is it followed? Has a delegation order been established, is it followed? Check warrants; do two people jointly have the right to sign for to the organisations bank account? Organisation schedule How is the Board/Managements control and leadership, what basis is used for decision making?

4. Legal entity 4.1 4.2 Is the organisation registered in the country? Take notice of annual report, audit report and audit memorandum

5. Personnel 5.1 5.2 What education and experience do the personnel who work with financial management have? Is there an authorised payroll?

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