GFA Area - FUND AND GRANT MANAGEMENT SERVICES

Challenges

Fiscal and procurement manager for external aid funds

Whether provided as loans or grants, financial assistance plays an important role in development cooperation. As the funds provided are usually taxpayers’ money or third parties donations, accountability, transparency and operational efficiency in the financial management of the funds are crucial. Grants are direct financial contributions awarded as donations to national entities that are engaged in external aid activities. The national entities are responsible for managing and using the funds and for reporting on their use. Grants provide reimbursement of eligible costs incurred by the national entities that are deemed necessary for carrying out the agreed activities. Thus, donors want to ensure that grant recipients comply with the donors’ conditions regarding financial management.
However, the capacity of national entities is often not sufficient to ensure transparent, diligent and sound fund management. In such cases the donor appoints an external Fiscal and/or Procurement Agent, who acts on behalf of the national entity with own signatory rights or supports the latter’s capacity building towards sound management of external funds.

GFA concept and services

© IVAN | Fotolia/stock.adobe.com GFA has gained extensive experience as Fiscal and Procurement Agent in particular for the Millennium Challenge Corporation (>> MCC), the Global Fund to Fight Aids, Tuberculosis and Malaria, KfW and also the German Federal Ministry of Food and Agriculture with regards to its international agricultural industry promotion program.

As part of its work GFA provides a broad range of financial management and procurement services to ensure that all related activities comply with both the requirements of the grant agreement between the donor and the grant recipient, and the national regulations. We guarantee that effective controls are in place regarding the use of grant monies, that funds are protected from fraud and corruption, and that ineligible expenditures are avoided. Moreover, we make sure that all payments are justified and represent value for money, and that automated reporting is accurate and timely. In cases where the existing capacity of a national entity is not sufficient, GFA assists by providing oversight of the entity’s financial and procurement management. At the same time, our team enhances the national entity’s capacity through detailed risk analysis, assessment and improvement of guidelines or manuals, procedures and policies, as well as training and coaching of staff members.