Financial control and anti-corruption
Trust is good, but control is even better – this is especially true when ensuring that all donations are used for the purpose, for which they were intended. That is why the work of Kindernothilfe is subject to comprehensive internal and external financial controls. This also applies to our local partner organisations, with which we implement our projects on the ground.
Kindernothilfe’s anti-corruption code acts as guidelines for the prevention of corruption within Kindernothilfe and its partner organisations. One other important element in the fight against corruption is the ombudsperson. He/she acts independently of the organisation, investigating any information received wherever there is justified suspicion of corruption in connection with the work of Kindernothilfe.
Kindernothilfe’s anti-corruption code acts as guidelines for the prevention of corruption within Kindernothilfe and its partner organisations. One other important element in the fight against corruption is the ombudsperson. He/she acts independently of the organisation, investigating any information received wherever there is justified suspicion of corruption in connection with the work of Kindernothilfe.
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Control of Kindernothilfe Luxembourg
Internal controls
Internal controls and appropriate internal control systems ensure that working procedures comply with proper standards, that laws and regulations are adhered to, and corrupt and corrupt behaviour is prevented.
External audit
The working operations and management of Kindernothilfe, its partners and the supported organisations and projects are regularly audited by independent bodies. These presuppose proper bookkeeping and accounting, comprehensive financial reporting and the preparation of Annual Financial Statements that are audited and certified by independent auditors. Internal control mechanisms are also part of these audits. The basic rules for bookkeeping, accounting and for the preparation of Financial Reports and Annual Financial Statements of partners, project implementers and from the projects, themselves, are set out in the KNH guidelines that are currently valid. Control of how funds are used at partner, project implementer and project level can also be carried out at any time.
Internal controls and appropriate internal control systems ensure that working procedures comply with proper standards, that laws and regulations are adhered to, and corrupt and corrupt behaviour is prevented.
External audit
The working operations and management of Kindernothilfe, its partners and the supported organisations and projects are regularly audited by independent bodies. These presuppose proper bookkeeping and accounting, comprehensive financial reporting and the preparation of Annual Financial Statements that are audited and certified by independent auditors. Internal control mechanisms are also part of these audits. The basic rules for bookkeeping, accounting and for the preparation of Financial Reports and Annual Financial Statements of partners, project implementers and from the projects, themselves, are set out in the KNH guidelines that are currently valid. Control of how funds are used at partner, project implementer and project level can also be carried out at any time.
Control of local partners
1. Project control and support
Kindernothilfe is, thereby, concerned with the pursuit of two key aspects in its work: firstly, we must ensure that the projects receiving funding actually bring about lasting improvements to the living situation of children, their families and communities. Secondly, efforts must be made to ensure that project funds are used effectively and efficiently. To achieve this, Kindernothilfe has developed a system comprising the following components:
2. Project proposal
For each new project an application must be submitted, including information about the partner implementing the project, the goals and target groups, monitoring, risks and financing. All applications are checked: the responsible international department checks the content and technical aspects, while the controlling department scrutinises the finances.
3. Contractual basis
The co-operation agreement is the basis for working co-operation with partners and projects. This contract has two parts: a general part stipulates both the rights and obligations, while a special part delineates agreements on goals and priorities.
4. Annual planning
All projects and partners must submit a plan including goals, indicators, plans and activities as well as a budget. Such a plan is a prerequisite for a project to receive funds. No payments will be made without appropriate planning.
5. Confirmation of receipt
Receipt of payment must be confirmed in writing (date, amount in euros and in local currency).
6. Project progress report
Projects should report on progress. All projects receiving an annual amount of more than 75,000 euros must submit a report every six months including information regarding any deviations from the agreed plan and budget.
7. Project visits
Regular visits are made to projects and partners. Kindernothilfe staff evaluate the design, management and progress of a project. They also review bookkeeping, financial management and accounting. They run workshops to improve the quality of work. If projects do not use funds as agreed or, even, embezzle them, those responsible will be held accountable (repayment of funds but, if necessary, criminal prosecution).
8. Annual Report
All projects must submit an Annual Report. This should provide information about activities and the accomplishment of goals. Successes should be presented but so, too, should difficulties and problems. The Annual Report serves as the basis for the project report, which is sent to all sponsors annually.
9. Annual Financial Statements
All projects and partners submit Annual Financial Statements (balance sheet, profit and loss account). These must be audited by an independent auditor and contain an audit report (with certification). All Annual Financial Statements are evaluated. Random samples are subject to comprehensive scrutiny. If the Annual Financial Statements are not available on time, fail to meet the required standard or are not awarded an unqualified certificate, payments will not be made until the deficits concerned are remedied.
Kindernothilfe is, thereby, concerned with the pursuit of two key aspects in its work: firstly, we must ensure that the projects receiving funding actually bring about lasting improvements to the living situation of children, their families and communities. Secondly, efforts must be made to ensure that project funds are used effectively and efficiently. To achieve this, Kindernothilfe has developed a system comprising the following components:
2. Project proposal
For each new project an application must be submitted, including information about the partner implementing the project, the goals and target groups, monitoring, risks and financing. All applications are checked: the responsible international department checks the content and technical aspects, while the controlling department scrutinises the finances.
3. Contractual basis
The co-operation agreement is the basis for working co-operation with partners and projects. This contract has two parts: a general part stipulates both the rights and obligations, while a special part delineates agreements on goals and priorities.
4. Annual planning
All projects and partners must submit a plan including goals, indicators, plans and activities as well as a budget. Such a plan is a prerequisite for a project to receive funds. No payments will be made without appropriate planning.
5. Confirmation of receipt
Receipt of payment must be confirmed in writing (date, amount in euros and in local currency).
6. Project progress report
Projects should report on progress. All projects receiving an annual amount of more than 75,000 euros must submit a report every six months including information regarding any deviations from the agreed plan and budget.
7. Project visits
Regular visits are made to projects and partners. Kindernothilfe staff evaluate the design, management and progress of a project. They also review bookkeeping, financial management and accounting. They run workshops to improve the quality of work. If projects do not use funds as agreed or, even, embezzle them, those responsible will be held accountable (repayment of funds but, if necessary, criminal prosecution).
8. Annual Report
All projects must submit an Annual Report. This should provide information about activities and the accomplishment of goals. Successes should be presented but so, too, should difficulties and problems. The Annual Report serves as the basis for the project report, which is sent to all sponsors annually.
9. Annual Financial Statements
All projects and partners submit Annual Financial Statements (balance sheet, profit and loss account). These must be audited by an independent auditor and contain an audit report (with certification). All Annual Financial Statements are evaluated. Random samples are subject to comprehensive scrutiny. If the Annual Financial Statements are not available on time, fail to meet the required standard or are not awarded an unqualified certificate, payments will not be made until the deficits concerned are remedied.