GAAP Matrix

Issue Risk and Rating Mitigating Actions AlreadyTaken or Included(and Estimated Cost*)3. Delayed ULB auditsand the neglect ofkey auditobservations (High)4. Failure of projectprogress reports tomatch financialdisbursements withphysical progress(Moderate)Only those ULBs that haveup-to-date audits with keyaudit observationsaddressed will be eligible toparticipate in the projectand receive subloans andgrantsAdditional Mitigation ActionsProposed, Responsible Agency (andEstimated Cost*)CDMA to help hiring andmanagement of CA firms ($500,00)Internal auditors or third partyinspectors will certify concurrentlythe expenditure incurred by the ULBsand verify physical progress. (part of$1.2 M). ULBs will address auditfindings promptly, or risk suspension.Schedule and Milestonesof GAAP Actions*This has been agreed andis being applied.Third party inspectors willbe hired upon start ofproject.F. CompliancewithEnvironmental andSocialSafeguardsNon-compliance withenvironmental andsocial frameworksafeguards, causingadverse impacts andnon-sustainability ofthe sub-projects(Moderate)Social and environmentalsafeguard framework to bedistributed toimplementation agenciesand design consultantsSafeguard specialists at MSU.Capacity building for the ULB / MSUstaff on environmental and socialsafeguards;Environmental and social audits toidentify remedial measures;Strict monitoring by MSU andindependent inspectors;Invite citizen participation in publicconsultation and GrievanceRedressal SystemSafeguard specialists to beon board by negotiations;GRMS system to becomeoperational in Yr 1.Broad capacity building tobe part of CapacityEnhancement TA