Monica Sawyer, Legal Advisor, World Bank - GFDRR

Due Diligence
&
Fiduciary Requirements
Mônica Sawyer
Counsel, World Bank
msawyer@worldbank.org
202-473-6116

Due Diligence
Assess the managerial competence and fiscal
accountability of the prospective grant recipient:
• Is the recipient has capacity to carrying out the work described in the
proposal?
• Are systems in place to ensure that grant funds will be managed
within the terms and conditions of the grant agreement?
• Are there established governance structure and good management
systems (procurement standards), financial systems (accounting
and disbursement) and staff?
• Is there evidence of mismanagement or fraud and abuse in the
organization’s recent history?
• Is the organization’s legal status current?

Due Diligence
Review the proposal and budget for internal consistency and for
compliance with SSC Guidelines
• Is the proposed budget appropriate and sufficient for carrying out the
project described?
• Do line items need to be adjusted to reflect effort or materials
necessary to carry out tasks?
• Is sufficient justification provided for the budget line items, and does
it support the work plan laid out in the proposal?
• Are cost assumptions in accordance with Bank policies?
• Does the budget include overhead/indirect cost? If so, could the
organization find another source for this cost?

Requirements
Memorandum of Understanding between partners
• Common objectives;
• Activities to be carried by each partner;
• Implementation of work plan
Budget
• Include detail by components/activities

Fiduciary Requirements
Legal Agreement
Standard Conditions document is part of the Grant Agreement
Project execution (Art II)
• Objectives;
• Project monitoring, reporting and evaluation;
• Financial management (interim financial reports);
• Procurement (World Bank Guidelines).
Withdrawal of Grant Proceeds (Art III)
• Eligible expenditures
• Withdrawal conditions

Reference Materials
The CD in your package includes the important documents that are part
of the legal agreement, namely:
– Standard Conditions to Grants made out of various funds; and
– Procurement Guidelines (for goods, works and services).
Additionally the following reference material is important for managing
the grant funds:
– Disbursement Guidelines;
– Interim Financial Management Report model, and
– Monitoring and Evaluation information.