NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

To avoid conflict of interest, neither the Project Coordinator, nor the members of the Permanent Commission for the on-going audit of project activities, nor the independent auditor can be a member of the board of the NGO responsible for project execution. The Project Coordinator answers to the Board, to the Permanent auditing commission, and to the independent auditor.

The Permanent Commission for the on-going audit of project activities answers to the Board of the NGO responsible for project execution and the the independent auditor.

The independent auditor answers to Donors and to the Board of the NGO responsible for project execution.

Part 05.08 Statutesof the NGO responsible for project execution of the Model provides for two different auditing levels.

“THE 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.”

“THE INDEPENDENT AUDITOR

Article 21

The activities of the auditing commission for the on-going audit of project activities are placed under the control of an independent auditor named by the Board of Directors, at the proposal, where appropriate, of project donors.

The independent auditor is nominated for the period of project execution.

Article 22

The independent auditor answers to the Board of Directors and to donors and funding institutions. He/she has full rights of inspection without notice of all of the accounts and documents of the Associations relating to the execution of the project.

Article 23

The independent auditor is paid, if payment is required, by the Association and/or by donors and funding institutions”

In practice, funds contributed by partners and funding institutions are paid into a capital account directly controlled by the NGO for project execution. The project coordinator (nominated by the Board of the NGO for project execution) applies to the Board for the funds needed to be transferred from time to time to the executive accounts of the projects. The Project Coordinator can make small payments from the executive accounts without further formality. For payments from the executive accounts between [amounts] the Coordinator must obtain the co-signature of the Chairperson of the Project NGO or other person nominated for the purpose. For payments over [amount] the executive accounts , the Project Coordinator must obtain permission from the Board of the NGO for project execution.

On-going control of accounts during execution.

The NGO responsible for project execution, the Permanent Commission for the on-going audit of project execution, and the independent auditor can carry out on-going checks on project activities at any time, including the point of transfer of funds from capital accounts to executive accounts, and during examination of applications for the payment of larger amounts.

1. Research.

On one page, explain the difference between the role of the Permanent Commission for the On-gong audit of project activities and the of the independent auditor.

2. Opinion.

Based on your personal experience, and taking the nature of integrated development projects into account, make a list on one page of the main problems you would expect the members of the Permanent Commission for On-going audit of project activities would have to face.

3. Opinion.

On a second page, explain how you would expect the auditing commission to solve the problems.

4. Opinion.

Make a two--page comparison between the auditing procedures foreseen for integrated development projects and those used in the three most important development projects in your chosen area (if necessary, in your country). Write first a short introduction to the problem, a very short presentation of the system for integrated development projects, and then three sections for each of the chosen projects. End your work with a detailed conclusion.

◄ ►

◄ Eighth block : Economic aspects.

◄ Eighth block : Project costs.

◄ Main index for the Diploma in Integrated Development (Dip. Int. Dev.)

◄ List of key words.

◄ List of references.

◄ Course chart.

◄ Technical aspects.

◄ Courses available.

◄ Homepage Bakens Verzet

"Money is not the key that opens the gates of the market but the bolt that bars them."

Gesell, Silvio, The Natural Economic Order, revised English edition, Peter Owen, London 1958, page 228.

“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58^th annual NGO Conference, United Nations, New York 7^th September 2005.

This work is licensed under a Creative Commons Attribution-Non-commercial-Share Alike 3.0 Licence.