National Human Resource Development Fund (NHRDF)

As per the Memorandum of Association of the Company, Accounts and Fund of the Company are subject to audit of Comptroller and Auditor General (C&AG). In addition to that, external auditor will be appointed as prescribed by the Company law. Audit of the NHRDF Fund Recipients:

The NHRDF will ensure all fund recipients are properly audited to ensure that –

1. the recipient organizations are properly using the accounting system in relation to NHRDF fund;
2. the recipient organizations are meeting the financial requirements/standards as set in the agreement/MoU between NHRDF & fund recipients;
3. Appropriate internal control is in place and functioning properly.

The fund recipients must provide the NHRDF or any other organization nominated and authorized on its behalf, the access to any location where the contract is being implemented. They will also be required to provide access to all relevant books of account, supporting documents, financial information or other necessary data to verify that the project is being implemented in compliance with the conditions of project agreement. These documents should be kept in original form (as the case may be in electronic form) for a period of five years. The fund recipient’s standard accounting and control procedures will be in a form that allows for NHRDF to verify the use of its fund. If an external auditor has been appointed to conduct audit, the recipient organization will inform the exact location of the project or any other relevant information to the auditor. The very focus of such audit shall be –

a. Verifying whether the relevant vouchers or supporting documents are consistent with the conditions set in the project contract;

b. Examining whether the expenditures made from the NHRDF fund fall within the agreed expenditure/budget items as laid down in the project agreement;

c. Checking whether the NHRDF fund is being utilized for purposes agreed in the contract;

d. Checking whether the payments are being made based on original vouchers and with authorization of the personnel vested with such authority;

e. Verifying the accuracy, reliability and actual status of the accounts by checking all related books;

f. Checking whether the procurements are being made in conformity with the provisions of Public Procurement Rules and Procedures;

g. Checking whether warehouse/store inventories have been kept, and inconsistencies have been followed;

h. Checking whether the transactions are being made through bank account(s) opened specifically for the purpose of receiving and utilizing NHRDF fund as agreed in the contract;

i. Checking whether the bank account(s) opened for transaction of NHRDF fund is regularly reconciled;

j. Verify whether the physical equipment/assets purchased with NHRDF fund are extant; and

k. Checking whether the Customs Duty, VAT, and Tax deductions are made in compliance with the rules and regulations of the Government of Bangladesh.