Fiduciary risk and due diligence CSO assessments


KPMG has been involved in conducting due diligence assessments for different DFID programmes including DFID Kenya, Somalia, and UK. These assessments are usually pre-grant focused, and involve a holistic assessment of systems and processes, while others have been focused on the challenges of remote management, humanitarian programmatic operations, and on governance and peace-building activities. All assessments consider the potential grantee’s systems, policies and processes with regards for: governance; risk management; finance; procurement; human resource management; programmatic delivery and monitoring and evaluation; environmental standards; and child protection.


Assessments for Trademark East Africa (TMEA)


Partners KPMG has been contracted as a long-term (2009 - 2014) custodian and service provider for TMEA, which is funded by a basket of donors. This has involved, amongst other work, identifying, understanding and proposing appropriate mitigation measures to address fiduciary risks identified within TMEA and the CSO organisations that TMEA supports – and providing internal training to enable this fiduciary risk management to be performed. During 2011 and 2012 to date we have conducted over 60 due diligence assessments, fiduciary risk assessments, and due diligence expenditure verifications of CSOs, together with assessments of ministries, agencies and private sector organisations.


Conducting participative CBO assessments for Vi-Agroforestry


KPMG supported Vi-Agroforestry to review their approach to identifying and engaging partner Community Based Organisations (CBO). KPMG then supported Vi-Agroforestry to develop a CBO organisational assessment tool, to rapidly assess the organisational capacity of over 20 CBO implementing partners across East Africa, and subsequently to facilitate the participative development of individual organisational strengthening action plans.

Impact: Organisational Assessments

Impact: Organisational Assessments

Rigorous organisational assessments are an essential baseline for effective risk management. KPMG’s team conducts 80-100 assessments per year that are used to inform donor funding decisions. For example, for one grant-making organisation, we have completed 50+ assessments. 50% of the assessed potential grantees were rated as presenting a high or substantial fiduciary risk and either not contracted, or contracted with conditionalities and/or at a lower grant amount. Had the grant-maker contracted without information from our assessment, there is likely to have been a higher risk of financial loss.