Collaborative Network of Persons Living with HIV

GF Round 9 Phase 2 Audit Results

April 20, 2015
No Priority
1 medium

Audit Finding
Reports not submitted in accordance with Grant
Agreement

Detailed Observations
Article XI of the Sub-Recipient Agreement states
that quarterly financial and technical reports
should be submitted 21 days after the end of the
quarter. We found that the reports were
submitted late for the first two quarters of 2014

medium

Lack of recruitment procedures

We noted that the SR does not have recruitment

procedure in place. Without a transparent and
documented recruitment procedure, there is a
risk that the SR does not hire the most competent
staff member cannot demonstrate that the
recruitment process was fair and transparent.

low

Lack of staff appraisal

medium

Lack of evidence of approval of invoices

high

Financial Management Weaknesses

high

weakness in bank and cash management

high

written contracts are not in place

medium

lack of back up procedures

medium

fuel costing monitoring

Management Response
We agree with finding which was a result of
unpreparedness to submit those reports in the forms
provided to us by the PR. C-NET+ staff needs appropriate
trainign to meet this obligation.

Note that our Policy and Procedures Manual (annex 1) in

pages 18 and 19 cearly state the recruitment process if
any post is opens at C-NET+. In addition C-NET+ values
the expertise in HR of our partner agencies and in the
past when we have invited persons form parter agencies
(for example country rep of PASMO) to aid us in the
interview process.
We noted the SR does not have a system of staff Note that our Policy and Procedures Manual (annex 1) in
appraisal. Without a staff appraisal process it is
pages 8 and 9 describes the system of staff appraisal and
difficult to keep staff member motivated and in while this is stated in our manual it was not
line with entity objectives. It is also necessary to implemented in 2014.
identify capacity for development and training
needs.
We noted that expenditure is authorised and
C-NET+ agrees with the observation
verified by local staff, then by the Executive
Director. However, the Executive Director is not
always in Belize and his approval was not
evidenced on the supporting documents in some
cases. In these cases there was therefore
insufficient evidence that costs had been
authorised by the Executive Director.
1. There is no formal accounting system (a basic C-NET+ agrees with the observation but lacks the proper
Excel system is used);
human resource that has experince in a formal
accounting system.

Recommendtions
We recommend CNET+ to take appropriate
measure in order to be able to comply with
the reporting requirement, in particular,
quarterly submission of FACE forms and
annual Financial and Programmatic. These
reports are important in order for UNDP to
adequately manage his obligations as a PR.
We recommend that the SR implements
adequate recruitment procedures in order to
ensure that the best candidate is identified
and that a fair and transparent hiring process
can be demonstrated.

C-NET+ will make sure to update our Policy and

procedures manual to include our common
practice of including the expertise in HR of
partner agencies in the selection processes of
staff and will make sure that the process is
properly documented and filed for verification at
request.
We recommend that the SR carries out staff C-NET+ will ensure to properly calendarize the
appraisals to ensure training needs are
frequency and date of staff appraisal for 2015 and
identified and to ensure that staff work
this will be properly filed in the staff's files and
towards the goals of the entity.
availabel for verification when requested. In
addition we will ensure to close this gap for the
2014 period.
We recommend that the SR ensures that the C-NET+ will ensure that recommendation is
approval of senior staff members is
implemented immediately to properly document
evidenced on all invoices. If the Executive
approval of invoices.
Director is not in Belize, approval by email
can be given and the email can be printed
out and attached to the supporting
document to evidence approval.

We recommend the SR to ensure that the

financial management system is improved to
esnure that all transactions are correctly
recorded under the appropriate Project and
budget line and that supporting documents
2. Cheque numbers are not mentioned on the list C-NET+ agrees with the observation
are duly referenced and can be linked to a
of expenditure. It is therefore difficult for the SR
transaction on the bank statement.
We
to link project expenditure to a transaction on a
also recommend that the SR implement an
bank statement;
adequate budget management system
3. The project code and budget line are not
C-NET+ agrees with the observation
enable
to
monitor
closely
project
costs
and
mentioned on the supporting documents;
budget consumption in a timely manner and
4. There is no budget management system in
C-NET+ agrees with the observation but lacks the proper with sufficient details.
place;
human resource with this expertise.
5. A paid stamp is not used.
C-NET+ agrees with this observation

1. There is no dedicated bank account;

2. The lack of coding means that it is difficult for

the SR to link transactions on bank statements to
supporting document;
3. There are no monthly bank reconciliations
carried out;
4. There is no funds reconciliation or statement
of cash position;
5. There is no cash flow forecast.
Services that were provided to CNET were
conducted by individuals without having a
contract in place. These individuals services
were acquired for training the staff at CNET+.
Risks associated with a lack of a contract can
range from non-performance of duties, no
evidence for legal recourse, and no legally
binding agreement. Individuals that perform
training either have a working relationship with
the SR or they are recommended through their
other CNETs partners and contacts.
The SR could not demonstrate that it has data
back-up procedures in place. There is therefore a
risk that project data could be lost in the event of
a disaster.

Note that the Heritage Bank Account was used

exclusively for GF at the request of PR. All our other
finances are carrie dout at Atlantic Bank.
C-NET+ agrees with observation

C-NET+ agrees with the observation

Action Plan
Focal Point
C-NET+ will make sure to have enough time to
Erika Castellanos
submit reports on a timely manner and will seek
guidance/training from the PR in the filling out of
forms and the expected reports in order to meet
our obligations.

We recommend that the SR notes the

payment reference on each supporting
document and to perform monthly bank
reconciliations and periodic funds flow
reconciliations in order to reconcile amounts
paid and amounts reported and claimed to
the donors and to determine the project
cash balance.

Erika Castellanos

Due Date
Dec. 2015

Jul-15

Erika Castellanos May-15

Board of Directors

Santiago Campos

immediately

C-NET+ will seek to acquire a proper accounting Erika Castellanos Dec. 2015
system and the funds to be able to hire personnel Board of Directors
with the expertise.
C-NET+ will ensure to implement immediately
the mention of cheque numbers on the list of
expenditures.

Santiago Campos

immediately

C-NET+ will ensure to adopt the practice of

Santiago Campos
documenting the project code and budget line in
all supporting documents.
C-NET+ will seek financing and trainign to have a Erika Castellanos
proper management system in place.
C-NET+ will procure a paid stamp to use in
Erika Castellanos
accordance with recommendations.

immediately

Santiago Campos

Dec. 2015
Aug-15

in place

C-NET+ will need to seek proper training to carry Erika Castellanos

out this activities since at the moment their in no
HR with this expertise or if possible hire someone
with this expertise which is dependant in the
availability of funding

Dec. 2015

We recommend that the SR creates proper

contracts with individuals providing services
so as to make clear the deliverables
expected and the legal relationship.

C-NET+ will ensure to seek training to be able to Erika Castellanos

make proper contracts, keep contacts of providers
and properly document the procurement process
following what is outlined in our policy and
procedures manual.

Sep-15

We recommend introduces data back-up

procedures. These procedures should
include regular back-up of system data and
storage of the back-up copy in a secure
location away from the main SR office.
We recommend that the SR improves the
management of fuel costs by either:
Adding relevant information on the
supporting documentation to enable to
make a clear link between receipts and
project activities; Organise a system of
vehicle logbook with record of each travel
made and monitoring of average monthly
fuel consumption.

C-NET+ will research and adapt the best possible

back up procedure for the organziation

Santiago Campos

Aug-15

C-NET+ will implement both recommendations to Erika Castellanos

ensure proper monitoring of fuel cost

Aug-15

C-NET+ agrees with the observation

C-NET+ agrees with the observation
C-NET+ agrees with the observation but would like to
note that the consultants hired were payed directly by
PR and we failed to question if a contract should be
signed with us or directly with PR who made direct
payment for this services. In additon C-NET+ needs to
acquire knwledge in the ellaboration of contracts.

C-NET+ agrees with the observation

We noted that fuel costs were only supported by C-NET+ agrees with the observation
a receipt from a gas station, which just noted the
amount paid. These receipts were duly
authorised by the SR but there was no
explanation as to what travel and activity the fuel
costs are related to. There is no car logbook,
there is no travel or mission order stating who is
travelling, how and when.