Accreditation Process Highlights Key Takeaways NDRMF Accreditation results

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Accreditation Process Highlights & Key Takeaways

Accreditation Process Highlights & Key Takeaways

NDRMF Accreditation results for Non Govt. Entities Phase – I (Aug- Nov. 18) q

NDRMF Accreditation results for Non Govt. Entities Phase – I (Aug- Nov. 18) q First call for Accreditation was floated on 2 nd of August 2018 through NDRMF website. Due date for submission was 30 th of August 2018 with subsequent proposals submission on 20 th of September 2018. q Over all forty five (45) entities applied for accreditation with NDRMF. Subsequently evaluation process was initiated based on submissions from non govt. entities. q Out of forty five (45) only nineteen (19) entities qualified as accredited with NDRMF. Details are as follow: Accreditation Results Total Applicants 45 Total No. of Accredited Entities Disqualified on Eligibility Criteria Disqualified on Scoring 19 23 3 Total No. of Disqualified Entities 26 The minimum threshold to qualify - overall score of 2. 1 to 3.

NDRMF Accreditation results cont’d… q Accredited entities have been further assessed for risk identification

NDRMF Accreditation results cont’d… q Accredited entities have been further assessed for risk identification in weak areas. Risk mitigation plan shall be executed with these entities to address the gaps before qualifying as FIPs of NDRMF. q During evaluation process certain gaps were identified in applicants submissions i. e. In Accreditation Criteria & Risk Assessment Proforma, answers were marked as “yes” without providing relevant documents. q Few examples are given for further clarity.

Eligibility Criteria & Reference Documents Key takeaways A. Registration Status The Organization is legally

Eligibility Criteria & Reference Documents Key takeaways A. Registration Status The Organization is legally registered under any of the following legal regimes: [Mark the relevant registration in column 1 as ‘X’ and mention whether the current registration status is active/suspended/expired in column 2] a) Companies Ordinance 1984 or Companies Act 2017 X Active/ Suspended/ Expired Attach as per checklist given in Acc. Proforma b) Societies Registration Act 1860 Voluntary Social Welfare Organizations Ordinance 1961 Trusts Act 1882 Economic Affairs Division, Government of Pakistan By means of treaty or other agreement that acts as a charter with Government of Pakistan [for UN Agencies] Companies Ordinance 1984 or Companies Act 2017 Societies Registration Act 1860 X Active/ Suspended/ Expired Attached as per AP checklist X Active/ Suspended/ Expired Attached as per AP checklist c) d) e) f) g) h)

Eligibility Criteria Cont’d… B. Financial Management The Organization confirms to following conditions: [Choose the

Eligibility Criteria Cont’d… B. Financial Management The Organization confirms to following conditions: [Choose the relevant answer in column 1 and mention National Tax Number (if applicable) in column 2 along with status i. e. active or inactive] Registered with Taxation Department Yes/No NTN # Active/Inactive a) Exemption for Tax(s) b) c) d) Last three (03) years audited financial statements Audit was carried out by a Chartered Accountancy Firm from State Bank of Pakistan’s Panel of Auditors under Category ‘A’ and having ‘Satisfactory’ rating under the Quality Control Review Programme managed by the Institute of Chartered Accountants of Pakistan Commitment of availability of counterpart financing i. e. 30% (in cash) for the proposed project Ref. Certificate Attach as per checklist given in Acc. Proforma Checklist Yes/No Exemption Certificate(s) Exemption Certificate attached Yes/No From 2015 -2016 -20172018 etc. Statements attached as per APCL Yes/No Audit Firms names Attachments as per Checklist Yes/No Attached as per AP Checklist

Procurement Management Criteria D. Procurement Management An entity has been evaluated in terms of

Procurement Management Criteria D. Procurement Management An entity has been evaluated in terms of its institutional strength/Capacity based on following procurement Criteria: q Regulatory Framework q Bidding Processes q Participation Processes q Evaluation and Award Criteria q Complaints Management/ Grievance Redressal Mechanism

Procurement Management & Accreditation Proforma filling D 1. Regulatory Frame work [Choose the relevant

Procurement Management & Accreditation Proforma filling D 1. Regulatory Frame work [Choose the relevant answer in column 1 and in case of answer as “No”, mention alternate, however, equal mechanism if exists any in column 2] a) b) Are separate & exclusive policies, rules, regulations, procedures, guidelines that govern the procurement processes & responsibilities in place? Is precedence clearly established? Are they adequately recorded/documented in the form of Manual detailing all procedures for the correct administration of procurement policies, rules, regulations, procedures or guideline besides organizing the hierarchy? Yes/No Refer to Proc. Policy placed in folder No. 6 Yes/No Refer to Proc. Manual placed in folder No. 6 c) Are all policies, rules, regulations, procedures or guidelines easily accessible to everyone including general public, at no cost? Yes/No i. e. Displayed on Official Website (link attached) etc. d) Does the Framework adequately cover to carry out procurement of Goods, Works, and Services (including consulting services) using guidelines/rules/processes of more than one sources of funds/donors? Yes/No Ref. to Proc. Manual/ folder #6/pages 1 -5 e) Do the rules promote fair competition and extend level playing field to all the prospective bidders? Yes/No Ref. to Proc. Policy/ folder #6/pages 8 -9 g) Do the policies, rules, regulations, procedures, guidelines or Manual regularly reviewed and updated? Yes/No Refer to Proc. Policy versions with dates etc. placed in folder #6

Procurement Management & Accreditation Proforma filling D 2. Bidding process [Choose the relevant answer

Procurement Management & Accreditation Proforma filling D 2. Bidding process [Choose the relevant answer in column 1 and in case of answer as “No”, mention alternate, however, equal mechanism if exists any in column 2] a) Is open competitive bidding a default method of procurement? b) c) d) e) f) g) Yes/ No Ref to Proc. Policy/ folder No. 6/ mention thresholds if any Are other methods of procurement also allowed/adopted under given conditions as an Refer to Proc. Manual page no. / folder alternate to competitive bidding process and an unambiguous level of hierarchy is Yes/No No. 6 given in the procurement framework? Are appropriate standards for resorting to international competitive bidding, if Ref. of Proc. policy. Page no. / ICB Yes/No mandated, provided? methods/ bidding docs etc. Is invitation for bids properly advertised in newspaper and uploaded on Website link/ published tender Yes/No organization’s website/international website/business magazines etc. ? advertisement copies etc. Is sufficient time [such as 15 days for national competitive bidding and/or 30 days for Yes/No Ref. to Proc. Policy/ folder #6/pages…. international competitive bidding], provided for the bidders to respond? Does the bidding documents contain necessary information such as name & address of official for obtaining bidding documents & clarifications by prospective, eligibility Yes/No Ref. to Proc. Policy/ folder #6/pages…. criteria, nature of procurement activity, date, time & place for pre-bid meetings, bid submission & opening? Does the organization require bidders, including international, to get themselves Yes/No Ref. to Proc. Policy/ folder #6/pages registered with it through a defined mechanism for taking part in a bidding process?

Procurement Management & Accreditation Proforma filling D 2. Participation process [Choose the relevant answer

Procurement Management & Accreditation Proforma filling D 2. Participation process [Choose the relevant answer in column 1 and in case of answer as “No”, mention alternate, however, equal mechanism if exists any in column 2] a) b) c) d) e) f) g) h) Do the rules require incorporation of sufficient information in tender documents to enable the submission of responsive bids/proposals and to establish the basis for a transparent evaluation & award process? Does the organization have prescribed Standard bidding documents for procurement of goods, works and services? Yes/No Ref. Proc. Policy /tender docs /folder No. 6 Yes/No Refer to Proc. policy/ Tender docs. sample/ folder No. 6 Are standard and mandatory set of clauses or templates that are reflective of the Yes/No legal framework, used in bidding documents? Do the rules advocate/encourage development of generic specifications (which are not restrictive in nature, like use of brand names in specifications) and refer to Yes/No international standards where possible? Are bids publically opened immediately after the closing time for the receipt of Yes/No bids, on the same date? Do the rules sufficiently cover the maintenance of records of proceedings of bids Yes/No openings and their availability for review? Are bids invited in sealed envelopes and are appropriate security measures in Yes/No place for safe custody & controlled access to bids? Do electronic bidding processes exist? If yes, are the processes or systems highly secured with respect to access control. Does the system provides long term Yes/No record-keeping and auditing functionality? Ref. bidding docs T&C template. Ref. to Proc. Manual/ folder #6/pages…… Ref. Proc. Policy/ folder #6/pages ……

Procurement Management & Accreditation Proforma filling D 4. Evaluation and Award Criteria [Choose the

Procurement Management & Accreditation Proforma filling D 4. Evaluation and Award Criteria [Choose the relevant answer in column 1 and in case of answer as “No”, mention alternate, however, equal mechanism if exists any in column 2] a) b) c) d) e) f) g) h) Does the regulatory framework prohibit the use of evaluation criterion(s) that is not prescribed in the bidding documents? Do the rules stress upon devising an objective criteria in quantifiable terms? Do the rules give adequate importance to the quality and regulate how price and quality are to be considered to achieve value for money? Do the rules allow seeking clarifications which should not change the substance of bid, from the bidders for making an objective evaluation of the bids? Do the rules require dissemination of evaluation results to public? Yes/No Ref. Proc. Policy/bidding docs /evaluation criteria/folder No. 6 Yes/No Refer to Proc. policy/ evaluation criteria/ folder No. 6 Yes/No Ref. docs. Yes/No Ref. P. Policy/bidding docs template/ evaluation sheets/folder #6/pages Yes/No Does the organization have standard contract agreement(s) for goods, Yes/No works and services? Does the contract agreement template(s) adequately cover the legal as well as Yes/No regulatory framework? Are the conditions of contract generally consistent with internationally acceptable Yes/No practices? Ref. Proc. Policy/ acceptance/regret letters/ website link/folder #6/page. . Ref. Template contracts/ folder #6/pages …… Ref. Template contracts/T&Cs/ folder #6/pages …… Ref. Template contracts/ folder #6/pages ……

Procurement Management & Accreditation Proforma filling D 5. Evaluation and Award Criteria [Choose the

Procurement Management & Accreditation Proforma filling D 5. Evaluation and Award Criteria [Choose the relevant answer in column 1 and in case of answer as “No”, mention alternate, however, equal mechanism if exists any in column 2] a) b) c) Do the organization’s rule acknowledge bidders’ right to lodge compliant/grievance? Is there a well-defined mechanism for handling of compliant by a body/committee that is independent of procurement committee and do that body/committee have an authority to grant remedies? Do the rules provide chance of representation to a complainant? d) Do the rules establish timeframes for issuance of decisions by the organization and the administrative review body? e) Do the rules require proper dissemination of the Complaint/Grievance Management mechanism for public awareness? Yes/No Ref. GR policy/folder No. 6/ Website Link where GRM is displayed for public awareness

Accreditation Documents Submission Format Folder 1 Eligibility Folder 2 Experience Folder 3 Organizational Structure

Accreditation Documents Submission Format Folder 1 Eligibility Folder 2 Experience Folder 3 Organizational Structure Folder 4 Legal and Regulatory Regime Folder 5 Financial Management & Internal Control Folder 6 Procurement Management Folder 7 Environment & Social Safeguards Folder 8 Gender & Inclusion Folder 9 Additional Documents if any

Reference Documents Checklist The following is an exhaustive list of reference/supporting documents which the

Reference Documents Checklist The following is an exhaustive list of reference/supporting documents which the organization will invariably provide/submit with their application/request for accreditation Sr. #. Documents Checklist Experience: folder: 2 1 List of Completed Projects in Last Three Years as per the template provided at Annex – I List of Donors worked with by the Organization with details of their financial assistance 2 Eligibility: folder 1 3 Legal Registration Certificate along with Memorandum of Associations, Forms (such as Form 29, Form A) etc. , where applicable 4 MOU with Economic Affairs Division (where applicable) 5 Registered with Taxation Department [In case of exemption(s), exemption certificate(s) and/or charter/MOU with Government of Pakistan allowing exemption of taxes such as UN Agencies] 6 Last three (03) years audited financial statements 7 Profile of Audit Firm 8 Financial Resources, comprising of Working Capital supplemented by credit line statements or overdraft facilities and others, to meet the precondition of Grant Financing by NDRMF

Reference Documents Checklist Organization Structure: folder 3 Policy and procedures (Operational) Manuals 9 Organogram

Reference Documents Checklist Organization Structure: folder 3 Policy and procedures (Operational) Manuals 9 Organogram 10 Functions, roles & responsibilities of various departments 11 Core Competences 12 Institutional Strength 13 Samples of administrative forms 14 Regulatory & Legal Regimes: folder 4 Vision, mission, and/or values statements 15 By-laws or Articles of Incorporation 16 Details of members of Governing Board/Council/Body/ Management 17 Terms of reference for Governing Board/Council/Body/ Management and its members 18 Proceedings of Governing Board/Council/Body/ Management meetings 19 Labor policy 20 Statutory reports 21 Financial Management& Internal Controls: folder 5 Financial Manual 23 Accounting Journals 24 Chart of Accounts 25 26 27 28 29 30 Payment Vouchers Staff Training Plan Signatory policy/authority matrix Formats for Budget with budget tracking sheet Financial Reports such as monthly reconciliations, Quarterly Unaudited Financial Statements etc.

Reference Documents Checklist Procurement Management: folder 6 32 Procurement policies, rules, regulations, procedures, guidelines

Reference Documents Checklist Procurement Management: folder 6 32 Procurement policies, rules, regulations, procedures, guidelines 33 Procurement Manual 34 Procurement Plan 35 Standard Bidding Documents 36 Standard Contract Agreement (if not provided in bidding document) 37 Standard Notices for inviting bids/proposals/expressions of interest 38 Staffing Capacity &their Capacity Building Plan 39 Composition of Procurement Evaluation Committee(s) Reporting Formats such as Bid Evaluation Reports, Technical Proposals Evaluation Reports, Combined 40 Evaluation Reports, Approval of Evaluation Reports 41 42 43 Standard Reports for dissemination of evaluation results Procedures for Complaint Management Policies for, (i) avoiding Conflict of Interest, and (ii) detection of fraud & corruption Environment & Social Safeguards Folder 7 44 Policy and procedures manuals Gender: folder 8 45 Gender policy, strategy, action or operational or implementation plan 46 TORs of designated or dedicated staff for gender 47 Anti-harassment policy and implementation procedures Examples of projects implemented for which, gender and social analysis conducted, efforts made to meet women’s needs, gender specific risks identified and mitigation measures undertaken, and benefitted both 48

Key takeaways on Accreditation application documents submission order : 1. Accreditation Application duly filled,

Key takeaways on Accreditation application documents submission order : 1. Accreditation Application duly filled, signed and stamped with proper documents’ references. 2. Concept notes submission 3. Duly signed & filled reference documents Checklist. 4. Reference documents i. e. policies/manuals/certificates/financial statements etc. in respective folders as per reference documents checklist

Organizational Structure , Legal & Regulatory Regime A. Organizational Structure has been evaluated on

Organizational Structure , Legal & Regulatory Regime A. Organizational Structure has been evaluated on following Criteria; whether the Organization have: q Defined roles & responsibilities of various departments? q Compliance with statuary requirements? q Defined Vision & Mission Statements q Registered with respective authority(ies)? q Reporting structures & Job Descriptions

Organizational Structure, Legal & Regulatory Regime B. Legal & Regulatory Regime Legal & regulatory

Organizational Structure, Legal & Regulatory Regime B. Legal & Regulatory Regime Legal & regulatory Regime has been evaluated on following Criteria; Whether the Organization have: q Governing Board? q Defined roles & responsibilities of Board(s) and Executives /Management? q Terms of Reference for Board Committees? q Documented criteria for selecting, electing or replacing any Board Member? q Term of Board Member? q Role of Board in strategic planning, developing & approving policies, budgets and financial statements etc.

Organizational Structure, Legal & Regulatory Regime Deficiencies in documents submitted by applicants The main

Organizational Structure, Legal & Regulatory Regime Deficiencies in documents submitted by applicants The main areas of deficiencies include; q defined internal communication mechanisms not in place q Policy and procedures (Operational) Manuals missing q Functions, roles & responsibilities of various departments q Samples of administrative forms not provided. q audit and other statutory reports, reviewed and approved by the Board/Council/Governing Management not provided q term limit exists for a person to complete/remain as member of the Governing Board/Council/ Body/Management not mentioned in the policy. q Proceedings of Governing Board/Council/Body/ Management meetings not provided

Financial Management & Internal Controls D. Financial Management & Internal Controls Criteria ü Entities

Financial Management & Internal Controls D. Financial Management & Internal Controls Criteria ü Entities are evaluated on following criteria with respect to their Financial management & internal controls: q Financial Policies and Procedures q Internal Controls q Financial Documentation and Reporting q Financial Planning and Sustainability

Financial Management & Internal Controls REFERENCE DOCUMENTS REQUIRED TO BE SUBMITTED ü Legal Registration

Financial Management & Internal Controls REFERENCE DOCUMENTS REQUIRED TO BE SUBMITTED ü Legal Registration Certificate along with Memorandum of Associations, Forms (such as Form 29, Form A) etc. , where applicable ü MOU with Economic Affairs Division (where applicable) ü Registered with Taxation Department [In case of exemption(s), exemption certificate(s) and/or charter/MOU with Government of Pakistan allowing exemption of taxes such as UN Agencies] ü Last three (03) years audited financial statements ü Financial Resources, comprising of Working Capital supplemented by credit line statements or overdraft facilities and others, to meet the of Grant Financing by NDRMF ü Financial Manual of the Organization. ü What type of accounting system does the organization use? How is the system implemented? Is the Organization using accounting software (Sample Accounting Journals, Chart of Accounts, Payment Voucher) ü Finance Staff Training Plan & Orientation ü Signatory policy/authority matrix ü Formats for Budget with budget tracking sheet ü Financial Reports such as monthly reconciliations, Quarterly Unaudited Financial Statements.

Financial Management & Internal Controls D. Financial Management & Internal Controls Criteria ü Entities

Financial Management & Internal Controls D. Financial Management & Internal Controls Criteria ü Entities are evaluated on following criteria with respect to their Financial management & internal controls: q Financial Policies and Procedures q Internal Controls q Financial Documentation and Reporting q Financial Planning and Sustainability

Financial Management & Internal Controls DISCREPANCIES FOUND DURING ACCREDITATION CRITERIA AND RISK ASSESSMENT ü

Financial Management & Internal Controls DISCREPANCIES FOUND DURING ACCREDITATION CRITERIA AND RISK ASSESSMENT ü Documents were not presented in organized manner as per the Accreditation Criteria and Risk Assessment Form (ACRAF). ü Though most of the entities provided answer as “YES” on ACRAF Form, however, did not submit supporting documents. ü CA Firm hired by the entity for audit, qualify satisfactory quality control review (QCR) rating of ICAP but is not in State Bank category rating ‘’A’’. ü The document submitted with ACRAF were not referenced in accordance with the serial numbers mentioned in the application form. ü An entity scored well in Accreditation Criteria and Risk Assessment, nonetheless, they could not obtain satisfactory rating in financial analysis based on the annual audited financial reports. ü Documents in support of Financial Resources such as Working Capital supplemented by credit line statements or overdraft facilities and others, were not provided. ü Audited financial statements up to 2017 were provided whereas audited financial statement for the year 2017/2018 remained unavailable.

Financial Management & Internal Controls FINANCIAL ANALYSIS OF AUDITED FINANCIAL STATEMENTS The entity is

Financial Management & Internal Controls FINANCIAL ANALYSIS OF AUDITED FINANCIAL STATEMENTS The entity is obligated to prove their financial strength through submission of details regarding Working Capital supplemented by credit line statements or overdraft facilities or others related documents. Financial analysis/ strength is carried out based on above documents as well as audited financial statements accordingly.

Thank You

Thank You