Financial Compliance Assessment at TechnoServe Kenya

Project Objectives:

• Create a more competitive food processing sector that generates inclusive economic growth in Ethiopia, Kenya, Tanzania, and Zambia.
• Core activities include:
  • Building the capacity of food processors to become more competitive through one-onone technical assistance and sector wide training;
  • Working with processors committed to improving SHF sourcing schemes and reaching BOP markets, and
  • Bringing together financial institutions to help broaden financing options for the sector.

Background:

• Cooperative Agreement 7200AA18CA00008 signed March 14th, 2018 and funded by USAID has been implemented in four countries for the past five years. The project was extended to end next March 2024. In preparation for the close out of the project, it has been identified the need to complete a compliance financial assessment for the period of March 2021- December 2022 to review the project’s financial records for this period and obtain an independent opinion about the finance compliance status of the project.

Purpose:

• The assessment has three primary purposes; examine and determine whether the project financial records are consistent with generally accepted accounting principles, in compliance with
• TechnoServe’s internal controls and applicable donor’s requirements, including but not limited to costs allowability, allocability and reasonableness as per applicable provisions of the award agreement.
• The assessment should provide an opinion about the compliance status with requirements such as financial reporting requirements, reporting host government taxes, travel costs – including

compliance with Fly America Act, compliance with direct and indirect allocation and with restriction for the use of funds as applicable.

• Additionally, the assessment should provide assurance that the project’s financial statements are free of misrepresentation and an independent opinion about the compliance financial status of the project.

Assessment:
The assessment should cover the following:

• Compliance with the terms and conditions of the award agreement.
• Financial Reporting requirements.
• Specific cost principles of the award agreements.
• 2 CFR 200 and 2 CFR 700.
• Source and Nationality.
• Travel Costs principles.
• Fly America Act Restrictions.
• Reporting Host Government Taxes.

Compliance with TechnoServe’s financial policies and guidelines as well as with local
applicable laws and regulations.

• Procurement policy and guidelines.
• Assets management policy and processes.
• Cash management.
• Supporting document for accounting transactions.
• Advances and reconciliations.
• Travel costs expenses/reimbursement.
• Any other applicable local law and regulation.