FINANCIAL MANAGEMENT AND PROCUREMENT. 1. To the extent applicable, Contractor/Consultant shall adhere to the principles and standards governing federal grant distribution as set forth in the OMB Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (2 CFR Part 200).
FINANCIAL MANAGEMENT AND PROCUREMENT. PROFONANPE has expertise in working with donor funds and has a good track record in implementing or co- implementing 36 programmes and projects using sound financial management practices. The PROFONANPE Directorate of Administration and Finance adheres to policies and procedures that meet donor agencies’ requirements. For this project, it will be responsible for fiduciary aspects and will be accountable for all financial and investment activities. With regard to accounting policies and procedures, the principal regulatory framework for the project’s financial management will comprise: (a) Peru’s laws governing budget and financial management for the private sector; and (b) the operating manuals and norms of PROFONANPE, which include acceptable accounting policies and procedures. The tailor-made administrative management integrated system (Sistema Integrado de Gestión Administrativa) of PROFONANPE enables the recording of the entity’s transactions through the use of international accounting standards. Financial statements are prepared using the accrual basis of accounting and the standard chart of accounts accepted in Peru. A specific bank account, in United States dollars, is set up for the project and resources are changed to local currency GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 53 OF 101 according to the project’s requirements. PROFONANPE does not have an internal audit department. However, it has a control specialist, reporting to the Director of Administration and Finance, in charge of: (a) checking all payment support documents and ensuring compliance with the donor’s hiring and procurement conditions; (b) checking compliance with terms of contracts for the procurement of goods and services, in regard to deliverables, deadlines, service conformity, amounts and characteristics or delivered goods or equipment, work assessments, and work progress reports; and (c) ensuring payment vouchers comply with tax regulations. Furthermore, PROFONANPE has an internal audit committee designated by its Board of Directors that follows and controls an external auditing process. In addition, the administrative staff of PROFONANPE has established periodic and spot-check reviews (in situ) of programmes’ and projects’ accounting and financing procedures. The purpose of these reviews is to verify the accuracy of the documents and to ensure that agreed activities have been implemented using internal regulations. The budget for travel and per diems is consistent with the ...
