KEB, Alm.del - 2013-14 - Bilag 31: Materiale til brug i forbindelse med åbent samråd den 23. oktober 2013

REPORT ON ASSESSMENT OF FINANCIAL AND ADMINISTRATIVE PROCEDURES OF GGGI INACOORDANCE WITH RECOMMENDATION 8 OF the DANIDA APPRAISAL NOTE OF FEBRUARY 20111.According to recommendation 8 of the Danida Appraisal Report regarding Danish Support toGlobal Green Growth Institute (GGGI) “The Danish Embassy in Seoul should assess the financial andadministrative procedures of GGGI before disbursing any funds. Subsequently, a first instalment ofan inception period of six –eight months can be disbursed based on an approved budget and work-plan for the period. The rest of the funding should depend on the outcome of the inception reviewwhere overall strategy, work plan and budget will be assessed. The staff policy of GGGI could beassessed a part of an inception review.”2.To undertake the above assessment the undersigned together with Mette Ekeroth, First Secretary,on 5thSeptember 2011 met with the CEO of GGGI, Rick Samans, the Director of finance , Mr.Suyoung Choi, The Director of Administration and Management, Mr. Alexander Fisher, Ms. Ha SunSung, Senior Program Manager, finance Unit, as well as Partner of Ernst &Young Han Young, Mr.Hyung Woo Kim.During the meeting Mr. Hyung Woo Kim presented a detailed Treasury Manual and InternalControls” developed by Ernst & Young for GGGI based on requirements of both Korean publicorganisations and multinational companies.The Treasury Manual and Internal Controls comprised the following deliverables:1) Treasury Policy1-1) Implementation Guideline on Receipt and Disbursement1-2) Guideline for Payment of Expenses and Travel Expenses1-3) Implementation Guidance for Accounting Closing1-4) Guideline for Internal Audit2)Guideline for Compilation of budget

3) Guideline for Fixed Asset Management4) Guideline for Accounting System Management Evaluation5) GGGI Accounting Manual6) Regulations for Overseas Office Management6-1) Guideline for Overseas Office Management6-2) Accounting guideline for Overseas Offices6-3) Guideline for Education Assistance for Expatriate Children6-4) Guidelines for Overseas Offices’ Management of Local Employees

6-5 Guideline for the Management of Overseas Company HousingIn addition to the very detailed Treasury Manual and Internal Controls for the Department ofFinance a summary was produced for all staff. An internal web-based system for financialmanagement in support of oversight on the part of GGGI Headquarters was being implemented.GGGI CEO informed that the Management Team of GGGI would take a decision on the TreasuryManual and Internal Controls documents within the next two weeks.Also the CEO of GGGI referred to the proposal to the Board of Directors for establishing an AuditSub-CommitteeThe Embassy stressed the importance of ensuring that all staff both at headquarters and at OverseasOffices received sufficient training in the Treasury Manual and Internal Controls as well as theelectronic financial management system.3.With regard to the Human Resources situation the CEO of GGGI presented a paper stating the staffadditions since June 1, 2011. In total 11 new persons had been hired including the Director forAdministration and Management and the Senior Program Manager, Finance Unit.4. As far as administrative procedures is concerned the CEO of GGGI stressed that this was work inprogress particularly since the arrival of the Director for Administration and Management. A salarypolicy based on the UN system was in place and being used when hiring new staff.Furthermore a number of projects were being initiated in this field including:a) Language policyb) Personnel Evaluationc) Travel Policyd) Pensionse) Performance-based bonusf)Housing

The Embassy stressed the importance of developing an organisational manual comprising allrelevant administrative procedures. Furthermore the Embassy stressed the need for a filing systemfor essential documents.5. The CEO of GGGI also presented a short paper outlining the key elements of the 2011 Workprogram and the budget for 2011. Furthermore the Embassy received a copy of invitation to tenderfor consulting services in 1) supporting the implementation of the organization’s strategic plan anddesign of its management team operating process, including with respect to Results BasedManagement ;2) developing best practice core operating processes across major programdepartments; and 3) developing GGGI’s donor and country program reporting system.

6. It is the Embassy’s assessment that much progress has been made especially with regard tofinancial procedures since the Appraisal in February 2011. When the Treasury Manual and InternalControls has been approved by GGGI’s Management Team, GGGI’s financial procedures will in theview of the Embassy live up to international standards.The Embassy therefore approves the disbursement of ½ the annual Danish contribution for 2011 ofUSD 2,5 mill. as soon as the GGGI in writing informs the Embassy of the approval of the TreasuryManual and Internal Controls as presented by Ernst & Young with possible adjustments.Furthermore the Embassy recommends that GGGI initiates a comprehensive training program in theManual for all staff.While progress is being made with regard to administrative procedures, the Embassy recommendsthat GGGI speeds up the development of an organisational manual comprising all relevantadministrative procedures and involves the staff actively in this process with a view to have itcompleted as soon as possible and before the end of 2011.Furthermore the Embassy recommends that GGGI initiates development of a simple filing systemcomprising all essential documents.Seoul, 6thSeptember 2011