Adopted in 2014, it supersedes the previous framework adopted in 2005. The revised framework represents a shift from assurance for cash transfers derived from project level controls and audits towards a method of assurance derived from risk/system-based assessments and audits. In essence, it reaffirms a shift from a control-based to a risk-based management approach. The revised Framework provides added clarity on the integrated suite of assurance activities (financial audits, internal control audits, special audits, programming visits and spot checks) to be performed based on the results of macro and micro assessments.
Scheduled audit: These refer to systematic and independent examination of data, statements, records, operations and performances of a partner. A scheduled audit is either an internal control audit which is conducted for Partners which are rated “Low” risk and “Medium” risk or a financial audit which should be conducted for all other Partners including non-assessed Partners.
Periodic on-site reviews (spot checks) are performed to assess the accuracy of the financial records for cash transfers to the IP and the status of programme implementation (through a review of financial information), and to determine whether there have been any significant changes to internal controls. The spot check is not an audit hence, the extent of expenditure testing is generally lower than what would be undertaken during an audit. Spot checks should be completed prior to the operational and financial closure of the project to ensure supporting documents are still available for review and any adjustments required in Quantum are made.