Another Way (Stichting Bakens Verzet), 1018 AM
Edition 01: 06 November, 2009
Value : 06 points out of 18.
Work foreseen: 186 hours out of 504.
The points are awarded only after passing the consolidated exam for Section B : Solutions to the problems.
Value : 01 point our of 18.
Work foreseen: 36 hours out of 504.
The point is awarded only after passing the consolidated exam for Section B : Solutions to the problems.
Division of responsibilities. [14.00 Hours]
Third block : Exam. [ 4 hours per attempt]
Division of responsibilities. [14.00 Hours]
07. Cooperative for project execution. (At least 2 hours)
Section 06. The permanent cooperative for the management of the project structures of the Block 3 of the course covered the responsibilities of the Permanent Cooperative for the Management of the Project Structures.
It was seen that at a given point of time, the management of each structure created passes to the Management Cooperative. At what moment, exactly, does the transfer of responsibility take place ? Who makes the decision ? Who is responsible for the structures created but not yet operative ?
Read the 05.08 Statutes of the NGO responsible for project execution carefully.
Article 3 provides : «The association is created for the period of execution of the project which shall not exceed ten years.”
The time for the execution of each individual integrated development project is usually two years.
On one page explain in two paragraphs why you think a period of ten years and not two years is given as the duration of the cooperative for Project Execution. What would happen if project execution was under way at the expiry of the ten year period ? What would happen if project execution had still not started at the expiry of the ten year period ?
Look again at the following slide showing :
Article 10 of the statutes of the NGO responsible for project execution provides that the board of directors of the Execution Cooperative nominate the project coordinator.
According to article 15:
«The project coordinator is appointed for the duration of the project and is responsible for the execution of the project until transfer of the structures created to the management cooperative [name of the Cooperative].”
The project coordinator records the status of inventories, accounts, and budget documents submitted to the Board of Directors.
The project coordinator opens and operates all executive bank accounts including current accounts in the name of the project during the execution phase.
The project coordinator answers to the Board of Directors and informs the Audit Commission of his or her activities, payments and receipts.”
Articles 24 and 25 state:
“Article 24 “Sums withdrawn from the capital account are paid at the request of the project Coordinator into executive accounts of the project operated under the responsibility of the coordinator.
Article 25 : Withdrawals or payments greater than [amount] from the executive accounts of the project must be co-signed by the Coordinator and the Chairman of the Board of Directors.. Withdrawals or payments greater than [amount] are subject to specific authorisation of the Board of Directors.”
The project coordinator (or the coordination group) answers to the Board of the Cooperative for the execution of the project. The Board of Directors may be considered the «Parliament » for the execution of the project. The Coordinator (of the coordination group) is the «Government in charge of project execution ». The coordinator is independent, subject to certain limitations concerning payment of expenses.
On one page make an analysis of the advantages deriving from the separation of powers between the « Parliament » and the «Government ». Which possible disadvantages do you think the separation of powers could have ? Why ?
Look at the following slide showing the structures for the audit of integrated development projects. The drawing is subject to modification in accordance with preferences eventually expressed by donors.
Article 10 of the statutes of the NGO responsible for project execution provides that the Board of the Cooperative for Project Execution nominate
« an on-going auditing commission and , subject to the contents of these statutes, [define] its powers and tasks »
Articles 17-20 are about the powers of the Commission for the on-going auditing commission :
“Article 17 : The activities of the Association are placed under the control of an independent auditing commission. The auditing commission may include, by way of example, a former national auditor general (chairperson) ; accountants of the signatories, a representative of the regional association of NGOs , a representative of the National Federation of NGOs of the host country; a representative of the [Rural Development Ministry], a representative of the [Ministry of Finance].
The members of the auditing commission are elected by the Board of Directors in principle for the full period of project execution, subject however to annual review and confirmation by the Board.
Article 18 : The Board of Directors may only discharge the Auditing Commission on presentation and acceptation of the annual report and balance sheet of the Association for the year in question and of the final project accounts.
Article 19 : Payment, if required, of the members of the Auditing Commission is the responsibility of the signatories on an equal share basis.
Article 20 : The auditing commission answers exclusively to the Board of Directors. It has full rights of inspection without notice of all the activities relating to the execution of the project and of all accounts and documents of the Association.
On one page explain how the coordinator answers to the commission for the on-going audit of the accounts, and how you would see the commission operate. Do you think that the separation of powers provided in the Statutes is adequate ? If applicable, which improvements would you like to see brought to the statutes ?
You are chairperson of the commission for the on-going audit of the accounts of an integrated development project. On one page explain your relationship with the project coordinator, with the Board of teh Cooperative, and with the independent audit. Which checks would you carry out, and how often ?
The statutes of permanent cooperative for the management of the project structures and of the Cooperative for Project Execution, have been designed to combat corruption, bearing in mind the social control exercised at the tank- and well-commission levels.
The issue of corruption is dealt with in detail in section 6: Corruption of the fifth block How the structures described in the third block respond to some specific problems.
On one page make a summary of measures taken to prevent corruption. Do you think they are sufficient? Do you think they can be improved ? In that case, how ?
Once you have finished your exercises, proceed with the preparation of your Report on Section 2 of Block 3.
◄ Third block : Section 2 : Division of responsibilities.
This work is licensed under a Creative Commons Attribution-Non-commercial-Share Alike 3.0 Licence.