Subrecipient Risk Assessment | Financial Questionnaire
Organization Name:
Type of Organization:
For example, non-governmental organization (NGO), U.S. or non-U.S. university, for-profit
Title of the RFP:
Date Submitted:
Section 1. PATH Subrecipient Risk AssessmentAbout this Assessment
PATH policy requires that PATH use this assessment to determine the level of risk associated with every existing or potential subrecipient (“Applicant”) before issuing a subaward.
To complete this assessment, the Applicant must complete the Financial Questionnaire, provided below. PATH project administrators will then score the questionnaire and determine the Applicant’s risk level.
This process helps PATH understand the level of risk involved in granting a subaward to a particular organization. An organization classified as High Risk can still be granted a subaward, but PATH must be aware of the level of risk involved. A High-Risk organization will require higher levels of monitoring and capacity-building.
Instructions to Applicant
• Every Applicant that applies for funding from PATH must complete and submit this questionnaire and required attachments before receiving funding.
• The questionnaire must be completed by the financial manager of the applicant organization.
• To complete the questionnaire, first read each statement/requirement in the boxes below. Then, decide whether it applies to your organization. If it applies, click to select the “YES” box. If it does not apply, select “NO.”
• If you select “NO,” please explain how your organization can address the statement/requirement in another way. Type your answer in the “Additional information” box.
• This questionnaire and other requested documents must be submitted electronically as scanned versions of original documents as relevant.
• Do not type anything in the grey “Assessment” column.
Statement/requirement (mark “YES” or “NO”) / YES / NO / Assessment (For PATH use only) /1. Your organization has received at least one grant or award from an organization that is not based in your country. This answer may include grants or awards from PATH. / ☐ / ☐ / ☐0 ☐3 ☐5
Additional information:
______
2. Do you agree with following statement: Your organization has never been denied funding, formally sanctioned, or listed as “high risk” for financial reasons by a donor. / ☐ / ☐ / ☐0 ☐8 ☐ 15
Additional information: ______
3. Your organization has the capacity to submit detailed financial reports in English. / ☐ / ☐ / ☐0 ☐3 ☐5
Additional information: ______
4. Your organization has a written cash management policy or procedures that govern how cash is handled in your office. / ☐ / ☐ / ☐0 ☐8 ☐15
Additional information: ______
5. Your organization has a dedicated accountant or finance manager responsible for monitoring organizational funds. / ☐ / ☐ / ☐0 ☐3 ☐5
Additional information: ______
6. Your organization has a formalized process to account for funds provided through a grant without mixing the funds with money from other sources. / ☐ / ☐ / ☐0 ☐5 ☐10
Additional information: ______
7. Your organization has finance policies in writing. / ☐ / ☐ / ☐0 ☐5 ☐10
Additional information: ______
8. Your organization has the capacity to retain, in a searchable format, financial reports for three years after the close of a grant. / ☐ / ☐ / ☐0 ☐8 ☐15
Additional information: ______
9. Your organization has its financial statements reviewed by an independent public audit firm. If “YES,” please provide a copy of your most recent audited financial report with this questionnaire. / ☐ / ☐ / ☐0 ☐5 ☐10
Additional information: ______
10. Your organization has the capacity to pay all applicable taxes under relevant national laws. / ☐ / ☐ / ☐0 ☐5 ☐10
Total score
11. (Optional) Please include any information in this space (not provided already) that you feel would help PATH better understand your financial procedures and capacity. You may consider providing the following documents as attachments: Tax certificate or equivalent document, most recent annual balance sheet or audit report, organizational finance manual.
Section 2. Additional information required for PATH-CVIA funded projects
In addition to the scored risk assessment in Section 1, PATH, as primary recipient of funding from sponsors, must confirm that subrecipients adhere to sound financial, administrative and accounting principles in order to ensure proper usage of donor funds. This section provides basic information as it pertains to requirements for use of PATH-CVIA funds and includes specific questions related to subrecipients’ systems and prior experience.
I. Accounting Records / Reporting Requirements:
(a) A separate accounting record or ledger should be used to record PATH-CVIA grant income and expenses (i.e. job-costing system).
(b) The information in the accounting records should be used to complete periodic (i.e. monthly or quarterly) financial reports. The accounting system should support the generation of financial reports that can compare actual amounts spent against the approved budget.
(c) Accounting records should include but are not limited to a general ledger, cash disbursements and receipts journals, sub-ledgers, check registers and source documents such as invoices, checks, timesheets and logbooks.
(d) Salaries and Wages: Salaries must be based on documented payrolls approved, in writing, by a responsible official of the recipient organization. Unless otherwise agreed-upon with PATH-CVIA, timesheets should be maintained for each employee whose salary is charged to the agreement.
Please answer the following questions:
1. Your organization has an accounting system that will account for direct project expenses separately; specifically, that the PATH-CVIA project expenses will be uniquely identified and tracked:
Yes No
1a. If “No”, explain how your organization tracks and allocates costs by project and/or donor:
2. Your organization allocates personnel costs to projects through a timecard system:
Yes No
2a. If “Yes”, indicate whether the timecard system is automated or manual:
Automated Manual
2b. If “No”, explain how labor is tracked and allocated to various projects:
3. Personnel allocations are based on which of the following:
Actual efforts spent on project activities: (i.e. after-the-fact timecards or documentation)
Budgeted effort: (i.e. level of effort as per approved project budget)
Other (please describe): Describe: ______
3a. How frequently are personnel costs posted to the project books?
Monthly Quarterly Other: please describe: ______
4. Your organization has policies establishing practices and procedures that allow for a regular reporting of actual-vs.-budgeted variances: Yes No
5. Are project expenses and financial reports reviewed for accuracy, completeness, and budget compliance by appropriate individual(s) familiar with the project activities, e.g. project manager, PI?
Yes No
II. Past Funding Source(s): PATH-CVIA receives funding from private sources (primarily the Gates Foundation), multilateral (UNITAID, Gavi, Global Fund), and governmental sources (U.S. Agency for International Development). The following questions relate to your organization’s prior experience with these funding institutions.
Please answer the following questions:
1. Our organization has previously received grant funding from an external source:
Yes No
1a. Your organization has previously received funding from the Gates Foundation, either as a primary recipient or a subrecipient: Yes No
2. Our organization has previously received funding from a United States government agency or multilateral funding agency, either as a primary recipient or a subrecipient:
Yes No
2a. If “Yes”, indicate funding source/sources: _
III. Indirect Costs: Indirect costs provided to subrecipients are subject to donor guidelines and restrictions. These guidelines vary depending on the donor. PATH-CVIA will advise your organization which donor guidelines are applicable to this project.
PATH-CVIA conforms to all applicable donor restrictions and ensures that any requirements are passed-through to subrecipients. In the event that indirect costs are allowed, your organization must be able to support the amounts charged. Those amounts represent actual costs that the recipient incurs but are not directly related to a specific project and may not exceed any donor cap. Typically, the rate would cover costs such as rent, utilities, accounting, and administrative support staff to name a few. Adequate support of the rate would consist of the following: a current negotiated indirect cost rate with an international organization; a current audit report of your indirect cost rate prepared by a qualified, independent auditor; evidence that the rate charged to the PATH-CVIA project is also being charged to agreements with other donors; a schedule of annual costs included in the rate compared to total direct costs for all organizational activities.
Please answer the following questions:
1. Indirect costs are included in the proposal budget: Yes No
If “Yes”, answer all questions in this Section. If “No”, skip to Section IV.
1a. If “Yes”, indicate the substantiating documentation provided along with the proposal budget:
NICRA Audited financial statements from the last 3 years Audited schedule of indirect costs Other (describe below)
2. Your organization has an established indirect cost system in place: Yes No
2a. If “Yes”, indicate the current indirect rate:
2b. If “Yes”, is the indirect system verified by independent auditors: Yes No
2b.i If “Yes”, please attach a breakdown or calculation of how this rate has been determined and include any necessary comments below.
2b.ii If “No”, describe how indirect costs are managed:
3. Does your organization have an established Negotiated Indirect Cost Rate Agreement (NICRA) with a United States governmental agency or other international agency? Yes No
3a. If “Yes”, indicate which agency
IV. Audit
1. What are the beginning and ending dates of your organizations’ fiscal year?
2. Does your organization have policies establishing practices for regular audits conducted by outside agencies as well as a system for addressing any findings? Yes No
2a. If “Yes”, who performs the audit and how often?
2b. If "Yes”, what types of audit(s) are performed (check all that apply):
Single Audit (A-133) Audits of financial statements
Program-specific audits Other
If “Other”, please specify type ______
V. Financial Points of Contact: Please indicate your organization’s key financial points-of-contact as it pertains to the proposed project:
Budget Contact: e-mail:
Financial Reports Contact: e-mail:
Payments/Accounts Receivable: e-mail:
I certify that the information in Sections 1 and 2 above are true of my organization to the best of my knowledge.
Signature of Authorized Official Date
Name, Title