GCRF Due Diligence A Case Study Jennifer Stergiou July 2017 - - PowerPoint PPT Presentation

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Apr 18, 2023 214 likes •309 views

ARMA Good Practice Exchange GCRF Due Diligence A Case Study Jennifer Stergiou July 2017 Before GCRF Historically risk assessment only undertaken where there was a perceived need 2014 The one that got away Internal audit

SLIDE 1

ARMA Good Practice Exchange GCRF Due Diligence – A Case Study

Jennifer Stergiou July 2017

SLIDE 2

Before GCRF……

Historically risk assessment only undertaken where there

was a perceived need

2014 – The one that got away
Internal audit recommended strengthening risk review

process

New risk review process mandated by financial regulations

from Aug 2015:

➢ Risk review for all applications and awards ➢ Light touch process for low risk funders – the “declaration” ➢ Risk scoring & red flag issues (automatic escalation) ➢ Escalation / Approval levels for different types of risks

Mitigating actions

SLIDE 3

Risk types:

Financial
Operational
Location
Governance
Reputation

Red flag issues:

Credit check issues
Previous operational issues
High risk countries
Conflict of interest
Risk to the University’s

reputation, as identified by the PI

SLIDE 4

Credit checks

Date of incorporation
Date accounts last filed (tool calculates whether

late/overdue)

Working capital positive or negative
Are accounts audited and if yes is audit opinion

qualified?

Recommended credit limit (tool compares to

contract value or value to the specific partner)

SLIDE 5

High risk countries:

High risk of corruption
Lack of robust & transparent accounting practices
Economic sanctions
Money laundering concerns
Financing of terrorist activity
Export control risk

SLIDE 6

GCRF

Risk review dashboard process as normal, PLUS
The Leeds Due Diligence Questionnaire
Standard text for RCUK Assurance questionnaires

setting out UOL approach

Contracting process
Pre and post award finance guidance in

development

SLIDE 7

Leeds questionnaire

1. Legal status of the organisation
2. Corporate governance of the organisation
3. Financial controls
4. Income
5. Research grant management
6. Costs
7. Travel and subsistence
8. Accountings systems
9. Audit
10. Sub contracts, partner organisation, consortium and collaborative

agreements

11. Conflict of interest
12. Declaration and authorisation to retain/share responses

SLIDE 8

Then what? What if responses to questionnaire are not provided before the research starts? What if responses to the questionnaire are not satisfactory?

SLIDE 9

Pre and post award finance guidance

Receipts? Verifying costs The cost of conducting due diligence Partner authorisation

f costs