EEP/Shiree

Concern Worldwide, and a management response on those observations was duly
communicated to the auditors.
NGO Independent External Audit
All 14 external audit reports as of 31 December 2015 have been completed and final report
duly submitted to DFID and NGO partners for the preparation of action plan and follow-up.
A draft ToR for the final audit of 14 Scale Fund partners has been prepared and finalised.
Appointment of external auditors has been finalised and the external audit will start in the
first week of August 2016.
Assets Management and Resource Control
The process of making a permanent handover of assets to 14 Scale Fund grantee was prepared
by the EEP/Shiree assets management team. A list of EEP/Shiree assets was prepared and
submitted to DFID in April 2016 for approval in May 2016.
The majority of assets under the custody of NGOs has been transferred to NGO partners for
further use for development activities.
A physical inventory of these assets will be completed by the external auditors during final
closure of NGO activities in August 2016.
Based on the assets disposal proposal, all EEP assets will be transfer/sold in consultation with
DFID. Assets under EEP/Shiree will be reallocated before project closure in September 2016.
Fraud Management
During the quarter, the outsourcing external auditors MABS J Partners submitted the
investigation report on Akota, the sub partner of Practical Action, Bangladesh (PAB).
Following this report, Akota and PAB were required to take the following actions as per
EEP/Shiree (DFID-GoB) and Practical Action financial rules and procedures:
• Refund the identified amount of BDT 259,560 and deposit it in the project bank account
by the latest 19 May 2016;
• Redistribute this amount to the identified beneficiaries by the investigation team by
May 30, 2016 (with the approval and supervision of Practical Action, Bangladesh);
• To undertake disciplinary action against the concerned staff of Akota associated with
this misappropriation;
• To end the Practical Action, Bangladesh (PAB) partnership contract with Akota,
which was done on 30 June 2016. There was no further extension of that contract.
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