3.2. Fulfilling contract obligations

Risks

• Documentation may look correct, but the results are not in line with the expected objectives.

Good practice

• Discuss consequences if the partner did not comply with the obligations (for example penalties).

Risks

• The auditor does not have access to the necessary documentation/information to properly assess the activities conducted by the partner.
• Independency of audit company is not ensured.

Good practice

• Check that the partner kept the required documentation and makes it available to the auditor.
• Ensure that the chosen audit firm has a proven track record. To do this, refer to the list of firms approved by donors, conduct market research, check references and CVs, etc

Risks

• The procurement process conducted by the partner was not in line with the agreed rules posing a risk of fraud or corruption, which could result in allegations against Helvetas.
• Helvetas is involved in the process but is not able to act, namely there is no leverage or there are other hurdles (personal dependencies, sanctions are not clearly stipulated) to require retendering or impose sanctions.

Good practice

• As part of previous steps in the process, Helvetas should have ensured that the partner met the minimum standards and implementing the partnership as agreed. The risks should have been transferred, if the partner was imposed by the donor, for the conduct of the procurement process.
• If issues were identified during the procurement by the partner, Helvetas should have raised them with the partner and where possible ask corrective measures (including retendering).
• Discuss consequences if the partner did not comply with the obligations (for example penalties).

Risks

• Helvetas does not have access to the necessary documentation/information to properly close the project.

Good practice

• Get all the available documentation from the partner. If there are missing documents, consider a note to the file documenting and explaining the difficulties encountered in this project.
• Execute the final payment only upon fully met obligations by the partner (correct procurement process and deliverables according to the agreement).
• Discuss consequences if the partner did not comply with the obligations. Use the warranty period, activate bank guarantee, or apply penalties.