Appendix A

Guidelines for writing a review of the internal control system

The review must be submitted in 8.5 inches x 11 inches paper (letter-size) using 1
inch of margin for all sides, written in Times New Roman font size 11 with single
spacing. The review must contain the sections below.

Internal Control Weakness and Related Recommendations

#1 [Title of internal control weakness]

Observation

[Paragraph No.1]

Implication

[Paragraph No.2]

Recommendation

[Paragraph No.3]
Example

Internal Control Weakness and Related Recommendations

#1 Delay in reviewing and approving IP reports

Observation

We noted that quarterly reports submitted by the IP were not reviewed and approved on time.

Example: REMA quarterly report for quarter 1 was submitted on 17 October, 2014, however
as of 7 November 2014, no feedback had been provided.

Implication

This affects the release of disbursement to the IPs which may lead to delays in
implementation of planned activities.

Recommendation

Management should ensure that there is timely review of the quarterly reports so that
subsequent disbursements to IP’s are not delayed.

#2 No date on signing the MOU’s

Observation

The MOUs between Company X and the IPs require that the projects should start not later
than 15 days after the signing the agreement. We however noted that all MOUs with the IPs
are not dated.

Implication

It therefore makes it difficult to track whether the project kicked off on time or not.

Recommendation

Management should ensure that all (MOUs) grant agreements have a specific sign off date.

#3 Need for capacity building

Observation

We noted that the Finance Specialist is new to the position having come on board in the
month of June XXXX. A challenge was observed in the extraction of basic reports like the TB
and the GL.

Implication

Lack of knowledge may result to inefficiencies and ineffectiveness in handing the position.

Recommendation

Management should consider having a training for the Finance Specialist, especially on the
use of Smart IFMIS.
#4 Long outstanding payable

Observation

From our review of the payables incurred during the year XXXX, we noted long outstanding
payable to coffee break expenses amounting to PXXX, from an invoice dated XX July XXXX.
This payable was still outstanding as at XX December XXXX.

Implication

Inadequate follow up of accounts payable leading to accounts payable remaining outstanding

for an extended period of time.

Recommendation

Management should ensure all long outstanding payables are cleared in a timely manner.