ACTIVITY NARRATIVE REMAINS UNCHANGED FROM FY 2008.

TITLE: CDC Audit, Review, and Financial Technical Assistance for Partners

NEED and COMPARATIVE ADVANTAGE:

Assessments of cooperative agreements and partners should be integrated in the USG/CDC's continuous

monitoring, analysis, and review of programs and partners, as it is a key factor in achieving agency

missions, and results. CDC Tanzania will award a contract to conduct a program-specified audit of nine

Government of Tanzania (GOT) funding recipients' internal control systems and accounting and fiscal

management practices to ensure adequate stewardship of USG funds, Additionally the contractor will

provide ad-hoc technical assistance in areas where changes are needed. The goal is to improve Tanzania's

capacity to coordinate, implement, and manage HIV/AIDS programs and to enhance transparency and

accountability of USG funds in order to ensure sustainability and local ownership of PEPFAR programs.

Currently in Tanzania both USAID and the Department of Defense

have long standing, agency specific internal mechanisms to undertake similar auditing activities.

ACCOMPLISHMENTS:

CDC Tanzania executes annually over $40 million in cooperative agreements to partners in Tanzania in

most program areas through PEPFAR. CDC offices in Zimbabwe and Zambia have conducted audits of its

partners to assess financial management and internal control and to provide technical assistance in these

areas. This initiative was well received by CDC, partners, and the government of Zimbabwe and Zambia.

To this end, CDC proposes a similar initiative in Tanzania.

ACTIVITIES:

A. Audit and Review: CDC will conduct an audit and review of GOT partners' financial management and

internal control practices to identify strengths and weaknesses and to assist partners in bridging the gap to

effectively monitor them. Audit and review provides the assurances that weaknesses in the design or

operation of programs or controls that could adversely affect the partner's ability to meet its PEPFAR

targets would be detected in a timely manner and prevented. The initiative's goal is to improve Tanzanian

capacity to coordinate, implement, and manage HIV/AIDS programs effectively and efficiently, thus helping

to ensure sustainability and local ownership of PEPFAR programs.

Each audit and review will be based upon the tenets of international accounting standards and principles

with the aim of providing constructive advice to CDC, and its funding recipients. The contractor will: i) assist

GOT cooperative agreement recipients to organize financial records in a standardized format; ii) certify the

use of funds awarded to recipients in terms of the cooperative agreement and applicable laws, and

regulations; iii) generate financial and program performance reports with recommendations; and iv) prepare

and submit reports of recipient payment schedules, financial expenditures and spending, and control

practices.

Audit reports are expected to include: i) auditor's opinion if records and reports show consistency of all

textual information per the terms of the cooperative agreement; ii) assurance that the textual information is

consistent with evidence obtained by the auditors; iii) verification of the accuracy of the financial statements

and the underlying accounting reports; and iv) auditor's opinion of the sensitivities which affect the financial

stability of the entity and the appropriateness and adequacy of the organization's systems of control.

B. Technical Assistance: In addition to conducting the audit and review, the contractor will provide technical

assistance to GOT grantees based upon the findings to ensure that programs reach goals and targets in a

sustainable manner. These include: i) recommendation on improvements to management policies, and

procedures; ii) recommendation on internal controls to safeguard the loss of information, money, and other

resources in order to achieve targets and objectives and eliminate irregularities; iii) assessment of areas of

risk and recommendations to minimize exposure to internal and external risk; iv) assurances that

mechanisms are in place to monitor and review all business transactions.

Either CDC GAP through an umbrella mechanism or CDC Tanzania directly will compete and execute the

contract for the services listed above. It is envisaged that in the first year the audit and review will be on

nine GOT cooperative agreement recipients with a focus on government partners, This could be expanded

in subsequent years.

LINKAGES:

CDC currently executes and administers over $40 million annually in cooperative agreements to a variety of

partners, across all of Tanzania in most program areas of PEPFAR. CDC has a long standing and close

relationship with these entities. This audit, review, and the provision of technical assistance will further

strengthen these linkages by addressing possible financial management and internal control issues and

creating consistent and accurate financial systems and effective internal controls. This technical assistance

will also increase Tanzanian partner's capacity to effectively and efficiently manage programs which will

further strengthen linkages. Also written records and documentation will address issues of staff turnover in

both the USG and partners.

CHECK BOXES:

Local Organization Capacity Building: This proposed audit, review and technical assistance provides the

assurances that weaknesses in the design or operation of programs or controls that could adversely affect

the partner's ability to meet its PEPFAR targets would be detected in a timely manner and prevented. The

initiative's goal is to improve Tanzanian capacity to coordinate, implement, and manage HIV/AIDS programs

effectively and efficiently, thus helping to ensure sustainability and local ownership of PEPFAR programs.

M&E: A separate monitoring and evaluation proposal is not included as the entire initiative is to conduct an

audit and review of cooperative agreement recipients. This audit and review will additionally assist in data

collection, storage and reporting through the review and establishment of financial management practices

and internal controls.

Activity Narrative: SUSTAINAIBLITY: The initiative's goal is to improve Tanzanian capacity to coordinate, implement, and

manage HIV/AIDS programs effectively and efficiently, thus helping to ensure sustainability and local

ownership of PEPFAR programs. This project will assist GOT grantees in strengthening the financial and

control mechanisms in order to safeguard against loss and achieve goals. Additionally, this audit and

review process will have a clear and well-defined documentation process that contains an audit trail,

verifiable results, and specify document retention periods to create sustainable historical institutional

knowledge for future use. This is critical for establishing and replicating a system in light of high staff

turnover at both the USG and partners.

New/Continuing Activity: Continuing Activity

Continuing Activity: 16437

Continued Associated Activity Information

Activity Activity ID USG Agency Prime Partner Mechanism Mechanism ID Mechanism Planned Funds

System ID System ID

16437 16437.08 HHS/Centers for To Be Determined 8027 8027.08 IP Audit

Disease Control &

Prevention

Emphasis Areas

Human Capacity Development

Estimated amount of funding that is planned for Human Capacity Development

Public Health Evaluation

Food and Nutrition: Policy, Tools, and Service Delivery

Food and Nutrition: Commodities

Economic Strengthening

Education

Water

Table 3.3.18: