Background and context
The department GDK manages a substantial portfolio of MFA programmes and projects with approx. 350 active grants and an annual disbursement frame of approx. DKK 2 billion. The portfolio has increased rapidly in recent years, which during 2023 has caused a backlog of engagements where financial monitoring visits have not been carried out. The engagements due for financial monitoring visits have been identified through a risk-based approach comprising of an assessment of the size of grant, number of grants, quality of reporting as well as other element influencing the overall risk.
Purpose
The purpose of the assignment is to provide financial consultancy support to GDK. GDK has identified five engagements where a financial monitoring visit need be conducted. Some of the financial monitoring visits might be part of reviews being conducted. In order to complete the financial monitoring visits, GDK is requesting the support of a consultant.
Objective
The consultant will support with the following outputs:
-Prepare 5 financial monitoring visits to be conducted during 2024
-Conduct 5 on-site financial monitoring visits of grantees incl. necessary visits to sub grantees/local partners
-Prepare a report for each financial monitoring visits which clearly outline observations and findings and which include recommendations in relation to any findings identified during the financial monitoring visit.
-Present observations, findings and recommendations to grantee and MFA-staff for possible feedback and inclusion in the final report for the financial monitoring visit.
Scope of work
The financial monitoring visit will assess the adequacy, transparency and quality of the financial management setup, systems and procedures of five selected grantees. It will also provide a sample of any country offices and local partners, and how the set-up contributes to the achievement of the results. This includes, but is not limited to, assessment of:
1.Financial systems and procedures (incl. budgeting, accounting, auditing and reporting). The degree to which the current financial management setup promotes the overall objectives of the organisation and obligations in the agreement with the MFA.
2.Overall quality of financial audits, adherence to applicable audit standards and organisational capacity to follow-up on findings.
3.Internal control and quality assurance procedures and systems, including division of financial management responsibilities, segregation of duties, and flow of funds.
4.Time registration systems and cost allocation mechanism.
5.Budgeting, budget monitoring, accounting and reporting systems and procedures, including financial monitoring of funds delegated to country operations and local partners and timely financial reporting.
6.Financial governance, competencies and staff to support financial processes and management.
7.Financial monitoring plans, systems and procedures, reporting and follow up, including financial monitoring of country offices and local partners. Considerations of a risk-based approach to monitoring.
8.Guidelines for partners, partner mapping, choice of partners, due diligence, monitoring of activities and local auditing
9.Compliance (donor guidelines); adherence to MFA guidelines
10.Adequacy of established procedures to promote Value for Money (economy, efficiency, effectiveness) throughout the value chain, including consideration on salaries, usage of activity specific technical assistance on all levels, administration costs, procurement, transparency, adaptability, reporting and environmental impact.
11.Transparency (openness in reporting, compliance with IATI reporting requirements, output based budgeting) and financial accountability.
12.Whistleblower-mechanisms and safeguarding guidelines, procedures and practices related to PSEAH, code-of-conduct and prevention of other forms of unethical behaviour of staff.
13.Anticorruption policies and practices, including established procedures for managing suspected irregularities and adherence to MFA guidelines.
14.Accountability and feedback mechanisms of interventions at all levels including beneficiaries.
During the assessment of the areas mentioned above, any recommendations and/or important findings in previous financial monitoring reports, process action plans, reviews, notes/comments from auditors, should be touched upon in order to secure due progress in any implementation of financial management initiatives.
Deliverables (output)
To conduct five financial monitoring visits.
Timing
The consultant will carry out the assignment over 10 months starting from 15 March 2024 with varying degree of intensity until 31 December 2024, with following milestones:
-By 1 July 2024 at least 2 out of 5 financial monitoring visits have been carried out.
-By 1 September 2024 at least 3 out of 5 financial monitoring visits have been carried out.
-By 1 November 2024 at least 4 out of 5 financial monitoring visits have been carried out.
-The aim is to complete the assignment fully by 31 December 2024.
Budget
The total budget may not exceed DKK 545.500 net of VAT.
Interested Consultants can request to get the instructions prepared for applicants by e-mail to the contact person stated below
Contact person: Jacob Strange-Thomsen
Contact:
•E-mail:
jacstr@um.dk
•Phone: 33920569
Criteria for selection: The three applicants with reference best suited for the assignment will be invited to submit a proposal.