The Fund Operator is responsible for setting up appropriate management and control systems, which shall ensure the respect of the principles of accountability, economy, efficiency and effectiveness.
It is essential for the Fund Operator to have an internal management and control system that provides reasonable assurance of achieving the objectives of the programme.
Within six months of the signing of the Programme Implementation Agreement, the Fund Operator shall submit to the FMO, based on a template provided by the FMO, a detailed description of the management and control systems, covering in particular:
- Programme management and control set-up.
- Procedures for the selection of projects and contracting.
- Systems and procedures for financial reporting from project promoters, verifications, payments to projects, and audits.
- Data collection and storage and reporting systems [vdHCF1] and procedures for result reporting from project promoters, including the descriptions of projects and the qualitative narrative and quantitative indicator reporting, and for monitoring for results. For guidance on establishing a data collection system, please refer to Annex F: Fund Operator responsibilities for results data.
- Systems for preventing, mitigating, detecting, reporting on and remedying suspected or actual cases of irregularities.
- Systems to maintain full accurate and systematic records and accounts of the programme.
The description should:
- Present and explain to the FMO how the requirements of the Programme Implementation Agreement will be implemented in practice by the FO. The FMO determines whether the description meets the requirements stipulated in Article 4.2 of the Programme Implementation Agreement.
- Be used as a manual of procedures for the Programme staff.
- Be a living document that can be updated and improved when and if needed.
The FMO may provide comments to the management and control system description within 6 months of its submission or commission an auditor to review for compliance with the requirements set out in the Programme Implementation Agreement.
The FMO may suspend payments to the programme if it deems that the management and controls systems description fails to meet the principles of accountability, economy, efficiency and effectiveness and/or the key requirements listed in Article 4.2 of the Programme Implementation Agreement.