Asset Management

The expectations of the Global Fund with respect to asset management are included in the LFA Financial Management & Systems (FMS) Assessment Tool.

The key questions identified in the Financial Management & Systems (FMS) Assessment Tool

 are:

1.      Is there a system of adequate safeguards to protect assets, including the Global Fund grant, from loss, fraud, waste and abuse?

2.      Will there be periodic physical inventories of fixed assets and stocks that are reviewed and compared to the fixed asset and inventory register, as appropriate, and discrepancies followed up and resolved?

3.      Are assets sufficiently covered by insurance?

4.      Does the nominated PR have necessary procedures and checks in place to ensure the safeguarding of assets held by sub-recipients?

It should be noted that Article 26 of the Grant Agreement which outlines the procedures for full or partial termination of the Agreement for any reason, requires that in Grant Close-out the PR shall:

         i.            ……..

       ii.            ……..

      iii.            Provide an inventory of all assets and receivables purchased with Grant funds;

    iv.            Provide a Close-out Plan (prepared in consultation with the CCM) for the use of all assets and services referred to in iii. above for the approval of the Global Fund.

The above requirement highlights the importance of the PR having an effective Asset Management System.