Common use of Accounts and Financial Reporting Clause in Contracts

Accounts and Financial Reporting. The Recipient shall maintain separate financial records in respect of the Grant and shall prepare financial statements in accordance with international accounting standards or other accounting standards acceptable to IFAD, as agreed with IFAD in advance, and in line with the IFAD Handbook for Financial Reporting and Auditing of IFAD-financed projects.16 The Recipient shall submit interim certified SOEs, signed by an Authorized Signatory on a semi-annual basis, within forty-five (45) days of the end of the six (6) month period. A final certified SOE for the totality of eligible expenditures incurred by the Project shall be submitted by the Grant Closing Date, segregating the winding-up expenditures incurred between the Project Completion Date and the Grant Closing Date. SOEs shall disclose the sources and uses of funds spent to finance the Grant activities, specifying whether the expenditures were funded in cash or by contributions in kind. SOEs shall consolidate the expenditures incurred by the Recipient and by sub-grantees, if any. Income generated from advance withdrawals of the Grant (if any) will be disclosed in the SOEs and audit reports submitted to IFAD. SOEs submitted to IFAD shall be in the currency of the Agreement. IFAD shall not accept SOEs submitted in any other currency. The Recipient shall have its institutional financial statements audited on a yearly basis in accordance with international auditing standards or other auditing standards acceptable to IFAD. In accordance with the IFAD Handbook for Financial Reporting and Auditing of IFAD-financed Projects, the Recipient shall ensure that the audit covers the entire Project Implementation Period. If the total amount of the Grant is less than or equal to two hundred United States Dollars (USD 200 000), the Recipient shall submit to IFAD a Statement of Responsibility on the SOEs presented to IFAD. Both the institutional audited financial statements and the Statement of Responsibility on the SOEs must be submitted to IFAD within six (6) months of the end of the Recipient's Fiscal Year. A final Statement of Responsibility on the final SOE must be submitted by the Recipient to IFAD by the Grant Closing Date. If the total amount of the Grant is more than two hundred thousand United States Dollars (USD 200 000) or equivalent, the Recipient shall provide a separate Audit Opinion on SOEs presented to IFAD, which may be either annexed to the institutional audited financial statements or submitted separately. Both the institutional audited financial statements and the Audit Opinion on SOEs must be submitted to IFAD within six (6) months of the end of the Recipient’s Fiscal Year. A project-specific Audit Opinion on the final SOE must be submitted to IFAD by the Grant Closing Date. In case the Project Implementation Period is less than or equal to eighteen (18) months a single Audit Opinion on the final SOE covering the entire period may be submitted by the Grant Closing Date. IFAD may engage independent auditors of its choice to audit the accounts relating to the Grant. IFAD may finance the cost of such audit by withdrawal from the Grant proceeds.