stage ii accreditation review check list

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STAGE II ACCREDITATION REVIEW

CHECK LIST

Notes: For the purposes of assisting reviewers during Stage II (Step 1) accreditation review in their review of applications for accreditation, this checklist has been developed and integrated into the workflow of the Online Accreditation System (OAS). The standardised checklist has been created based on the Green Climate Fund’s (the Fund) fiduciary principles and standards, environmental and social safeguards, and gender policy, as well as the accreditation application form, which has been developed in accordance with document GCF/B.08/06 Application Documents for Submission of Applications for Accreditation as per decision B.08/06. The checklist may be amended by the Fund from time to time. No applicant entity or any other person may derive any rights, and the Fund shall accept no liability, from the publication of this checklist. In the event that an application is deemed to be incomplete, questions and/or requests for clarification are sent to the applicant entities during the review of applications.

Applicant Name Type of Entity Application Number Application Received On

http://www.gcfund.org/fileadmin/00_customer/documents/Accreditation/GCF_Initial_Fiduciary_Principles_and_Standards_20140619.pdf

http://www.gcfund.org/fileadmin/00_customer/documents/Accreditation/GCF_Interim_Environmental_and_Social_Safeguards_20140619.pdf

http://www.gcfund.org/fileadmin/00_customer/documents/Operations/Gender_Policy_Action_Plan.pdf

http://www.gcfund.org/fileadmin/00_customer/documents/MOB201410-8th/GCF_B.08_45_Compendium_fin_20141206.pdf

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INSTRUCTIONS TO REVIEWER The checklist for Stage II Accreditation Review is designed based on the Green Climate Fund’s fiduciary standards, Interim Environmental and Social Safeguards (ESS) and Gender Policy, and the Accreditation Application Form. The application form for accreditation for the Green Climate Fund is composed of the following sections:

I. Background and contact information of the applicant entity; II. Information on the ways in which the institution and its intended projects/programmes will contribute to furthering the objectives of the

Green Climate Fund; III. Information on the scope of intended projects/programmes and estimated contribution requested for an individual project or activity within

a programme; IV. Basic fiduciary criteria; V. Applicable specialized fiduciary criteria;

VI. Environmental and social safeguards (ESS); VII. Gender. The Stage II Accreditation Review focuses on sections IV to VII of the Accreditation Application Form Guidance to Accreditation Panel for Sections IV and V:

1. The response in column 3 would be based on a detailed analysis, the write-up on which can be incorporated in the area marked “Analysis/Notes/Observations/Comments.”

2. If adequate evidence is available then write a short summary/note describing how the entity meets the requirement. This summary/note

would be incorporated into the recommendation from the Accreditation Panel to the Board.

3. In case the entity does not meet the requirements of the Basic Fiduciary Standard or the applicable Specialized Fiduciary Standard(s), indicate the items for which information is incomplete/inadequate.

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4. The example given in the column “Remarks/Observations or points for discussions by Accreditation Panel, if any” is only illustrative. The actual situation may be different. Also for some of the points there could be multiple observations.

5. Create a list of queries/questions which seek the required information along with list of supporting documents required, in case the entity

has not met the requirements of the Basic Fiduciary Standard and the applicable Specialized Fiduciary Standard(s) in column 5. Guidance to Accreditation Panel for Sections VI and VII:

1. All applicant entities have to meet the Environmental and Social Management Systems (ESMS) requirements as defined in Performance Standard 1 (PS1) in the Green Climate Fund’s Interim ESS. The entire checklist below applies to entities applying through the normal process as well as the Adaptation Fund- and EU DEVCO-accredited fast track entities. The GEF-accredited fast track entities should only be evaluated against the items identified as applicable to such entities (i.e. gaps) since the GEF has already reviewed the content in the items in its accreditation and assessment processes.

2. Entities will be assessed against PS1 requirements which include the necessary systems and processes to identify and manage PS2-8 issues, if and when they arise on future projects/programmes.

3. At the time of recommending accreditation, the Accreditation Panel will specify the environmental and social risk category (i.e., Category A/Intermediation-1, Category B/I-2, or Category C/I-3) for which the entity has demonstrated an effective ESMS. Any conditions should also be specified.

4. The response in column 3 would be based on a detailed analysis, which is documented in the checklist in the space provided under “Analysis/Notes/Observations/Comments.”

5. If adequate evidence is available, document this in a short summary/note describing how the entity meets the requirement in column 4. This

summary/note will be incorporated into the Accreditation Panel recommendation to the Board.

6. If the entity cannot demonstrate compliance, document why in column 4.

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7. The examples given in column 1 of the types of evidence that might demonstrate compliance, if any, are illustrative and not exhaustive. The actual situation may be different and for some points there could be multiple types of evidence.

8. Create a list of queries/questions which seek the required information along with list of supporting documents required and incorporate the

same in column 5.

9. In the case that the Accreditation Panel cannot recommend an entity for accreditation, they shall note the specific areas where the ESMS is incomplete or insufficient to meet the Green Climate Fund’s standards.

E&S Risk Categories Category A: Activities with potential significant adverse environmental and/or social risks and/or impacts that are diverse, irreversible, or

unprecedented. High level of intermediation (I1): When an intermediary’s existing or proposed portfolio includes, or is expected to include, substantial financial exposure to activities with potential significant adverse environmental and/or social risks and/or impacts that are diverse, irreversible, or unprecedented.

Category B: Activities with potential mild adverse environmental and/or social risks and/or impacts that are few in number, generally site-specific,

largely reversible, and readily addressed through mitigation measures. Medium level of intermediation (I2): When an intermediary’s existing or proposed portfolio includes, or is expected to include, substantial financial exposure to, activities with potential limited adverse environmental or social risks and/or impacts that are few in number, generally-site specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of activities with potential significant adverse environmental and/or social risks and/or impacts that are diverse, irreversible, or unprecedented.

Category C: Activities with minimal or no adverse environmental and/or social risks and/or impacts. Low level of intermediation – I3: When an

intermediary’s existing or proposed portfolio includes financial exposure to activities that predominantly have minimal or negligible adverse environmental and/or social impacts.

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An Environmental and Social Management System (ESMS) is a set of management processes and procedures that allow an organization to identify, analyze, control and reduce the adverse environmental and social impacts of its activities and maximize any potential environmental and social benefits in a consistent way and to improve the environmental and social standing of the organization and its activities over time. Management Processes and Procedures covering:

i) A Policy ii) Identification of Risks and Impacts iii) Management Programme iv) Organizational Capacity and Competency v) Monitoring & Review vi) External Communications

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SECTION IV: Initial Basic Fiduciary Standards 4.1 Key administrative and financial capacities Underlying principles of the Fund’s initial basic fiduciary standards for administrative and financial capacities are:

a) Financial inputs and outputs are properly accounted for, reported, and administered transparently in accordance with pertinent regulations and laws, and with due accountability;

b) Information relating to the overall administration and management of the entity is available, consistent, reliable, complete and relevant to the required fiduciary standards; and

c) Operations of the entity show a track record in effectiveness and efficiency. Item 4.1.1 General management and administrative capacities Clear and formal definition of the main “corporate governance” actors of the entity and of their respective roles and responsibilities (for example, oversight authorities, audit committee, regulators, governing board, executive body, internal audit body, external audit body, etc.). Item 4.1.1 (a): Existence of adequate internal oversight bodies and transparent rules regarding the appointment, termination and remuneration of members of such committees Analysis/Notes/Observations/Comments:

Summary/Conclusions:

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Information Required: Names of internal oversight bodies established

Roles and responsibilities are adequately defined

Effective functioning of the bodies has been satisfactorily demonstrated For example: through meeting agendas, minutes or reports

Remarks/Observations or points for discussions by Accreditation Panel, if any For example: in terms of the adequacy/inadequacy of the established oversight bodies vis-a-vis the size and scope/complexity of the entity’s operations

Additional information, if any, required from entity

i) _________________

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) _________________ ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) _________________ ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) _________________ ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) _________________ ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.1 (b): A consistent, clear and adequately communicated organization chart available, which describes, as a minimum, the entity’s key areas of authority and responsibility, as well as well-defined reporting/delegation lines Analysis/Notes/Observations/Comments:

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Name of key function/Oversight Body

Organisation chart provided with reporting relationships of following key functions/Oversight Bodies

Is the reporting relationship satisfactory for independent functioning

Remarks/Observations or points for discussions by Accreditation Panel, if any For example: The reporting relationships support independent and effective functioning without “Conflict of Interest”


i) Audit Committee ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Ethics Committee ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Finance ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Internal Audit ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Others: _________________ ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.1 (c): A consistent and formal process to set objectives and to ensure that the chosen objectives support and align with the mission of the entity. Analysis/Notes/Observations/Comments:

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Information required

Status Are the processes/ outputs adequate/appropriate and clearly defined?

Remarks/Observations or points for discussions by Accreditation Panel, if any


i) Formal documented process for setting entity level long term and short term objectives

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Organisation has a strategic/long term plan

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Organisation prepares annual plans and corresponding budgets

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Process to ensure that the chosen objectives support and align with the entity’s mission is defined

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Clear linkages defined aligning objectives (long and short term) with entity’s mission

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.1 (d): Indicators to measure defined objectives and internal documents demonstrating that organization-wide objectives provide clear guidance on what the entity wants to achieve Analysis/Notes/Observations/Comments:

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i) Appropriate indicators/metrics for all key organisational objectives (long term and annual) defined

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Break-up of indicators/metrics for organisational objectives into departmental objectives undertaken

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Achievement of organisational/departmental objectives is supported by adequate action plans

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.1 (e): A general management plan that also includes processes to monitor and report on the achievement of set objectives. Analysis/Notes/Observations/Comments:

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i) Responsibilities for periodic monitoring and evaluation of plans are clearly defined

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Periodic evaluation of achievement of organisational objectives and expenditures is undertaken and results published

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Monitoring and evaluation of general management plan results in well-defined actions to correct variances

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Implementation of action plans in item (iii) above is regularly monitored

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.2: Financial Management and Accounting

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Item 4.1.2 (a): Financial statements follow the Generally Accepted Accounting Principles (GAAP) and are prepared in accordance with recognized accounting standards, such as the International Financial Reporting Standards (IFRS), or the International Public Sector Accounting Standards (IPSAS) in the case of public entities, or other equivalent standards. Analysis/Notes/Observations/Comments:


Information required Status Is the Accounting Standard used either GAAP/IFRS/IPSAS

Remarks/Observations or points for discussions by Accreditation Panel, if any. In case the Accounting Standard is different from those mentioned please comment on the acceptability of the Standard.


i) Has information on Accounting Standard used been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.2 (b): The entity has in place a clear and complete set of financial statements that provide information on: i) A statement of assets, liabilities and fund balances (statement of financial position); ii) A statement of financial performance (income and expenses/revenue and expenditure); iii) A statement of changes in financial position or a statement of changes in reserves and fund balances; iv) A statement of cash flows;

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v) A description of the accounting policies used explaining the accounting framework used; and vi) Appropriate notes and disclosures in annexes to the financial statements, in particular explaining the accounting framework used, the basis of

preparation of the financial statements, and the specific accounting policies that are necessary for a proper understanding of the financial statements.

Analysis/Notes/Observations/Comments: The external audit report would typically comment on the accounting policies/framework used and also on the appropriateness of notes and disclosures attached to the financial statements. The assessment of this item should be completed in response to these aspects on the basis of information provided in the external audit report.


Information required Status Are the information adequate/appropriate and clearly defined?



i) Statement of financial position (assets, liabilities and fund balances) provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Statement of financial performance (income and expenses/revenue and expenditure) provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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iii) Statement of changes in financial position (reserves and fund balances) provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Statement of cash flows provided ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.2 (c): Financial statements are reported periodically, consistent with previous reporting periods, and allow for comparison among reporting periods. Analysis/Notes/Observations/Comments: The external audit report would also have observations regarding the comparability (in terms of consistency over different reporting periods and accounting practices) of the financial statements. This item should be completed in response to these aspects on the basis of information provided in the external audit report.


Information required Status Are the information adequate/appropriate and clearly defined?



i) Information regarding the comparability of financial

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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statements in terms of consistency over different reporting periods and accounting practices is available

Item 4.1.2 (d): The entity uses accounting and financial information systems based on the accounting principles and procedures indicated in paragraph (a) above and how the accounting policies of the entity are adapted to the nature and complexity of its activities; Analysis/Notes/Observations/Comments: The external audit report would typically comment on the accounting principles and procedures and their suitability for the nature and complexity of the entity’s activities. This item should be completed in response to these aspects on the basis of information provided in the external audit report.


Information required Status Are the processes/outputs adequate/appropriate and clearly defined?



i) Brief details of Financial Reporting System (MIS) provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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ii) Financial reporting system contains list of key reports prepared

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Sample copies of major reports (as required in the MIS above provided).

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Suitability of accounting principles and procedures has been commented upon in the external audit report

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.2 (e): Transparent and consistent payment and disbursement systems are in place with documented procedures and clear allocation of responsibilities. Analysis/Notes/Observations/Comments:


Information required Status Are the processes/outputs adequate/appropriate and clearly defined?



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i) A documented payment and disbursement system(policies, procedures and Delegation of Authority) are available

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The procedures provide for a clear segregation of approval and disbursement responsibilities/authorities

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The entity has a system for periodic compliance check/audit of the payment and disbursement system

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Reports/evidence of compliance checks/audits of the system have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

The entity has also legal and operational capacity to receive international payments from the Fund’s Trustee and to make payments to the Fund’s Trustee: Item 4.1.2 (f): A track record in the preparation and transparent use of business plans, financial projections and budgets, and the

ability to continuously monitor performance and expenditure against these; and Item 4.1.2 (g): Resources, systems and procedures (including fiduciary accounts, as appropriate) are in place that ensure proper

financial reporting over the use of funding received from the Fund. These items have been covered in other sections and hence no separate analysis is required in this section. 4.1.3 Internal and external audit Item 4.1.3 (a): Independent audit committee

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i) An independent audit committee or comparable body is appointed and fully functional and oversees the work of the internal audit function as well as the external audit firm as it relates to the audit of financial statements, control systems and reporting.

ii) The audit committee or comparable body is guided and mandated by written terms of reference that address its membership requirements, duties, authority, accountability and regularity of meetings.

Analysis/Notes/Observations/Comments:


Information required Status Adequacy of the Committee and its functioning demonstrated



i) Composition of the Audit Committee has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) ToRs of the Audit Committee provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The Audit Committee has expertise and independence to ensure effective functioning for its given ToRs

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Audit Committee meets regularly ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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v) Agenda and minutes of Audit Committee meetings have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.3 (b): Internal Audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes (as defined by the Institute of Internal Auditors). Analysis/Notes/Observations/Comments:


Information required Status Adequacy/effectiveness suitably demonstrated



i) Internal audit function has a documented terms of reference or charter, reviewed and approved formally by senior management and the audit committee, that outlines its

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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purpose, authorized functions and accountability

ii) Internal audit function is carried out in accordance with internationally recognized standards such as those prescribed by the Institute of Internal Auditors or other equivalent standards

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Auditors and/or entities that provide internal auditing services adhere to ethical principles of integrity, objectivity, confidentiality and competency, which is supported by specific legal arrangements to this effect

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Internal audit function is independent and able to perform its respective duties objectively. It is headed by an officer specially assigned to this role with due functional independence, who reports to a level of the organization that allows the internal audit activity to properly fulfil its responsibilities

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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v) The chief audit officer shares information and coordinates activities with relevant internal and external parties (including external financial statement auditors) ensuring proper coverage and a minimization of duplication of efforts

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) The internal audit function disseminates its findings to the corresponding senior management units and business management units, which are responsible for acting on and/or responding to recommendations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) Internal audit function has a process in place to periodically monitor the response to its recommendations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

viii) A process is in place to monitor and assess the overall effectiveness of the internal audit functions, including periodic internal and external quality assessments

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ix) Audit plans for each of the past 3 years (evidence for item (v) above)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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x) Status of execution of the last 3 years’ internal audit plans

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

xi) Sample internal audit reports ⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

xii) Status of response to internal audit observations of last 3 years (evidence for item (viii) above)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

xiii) Periodic internal and external quality assessments for assessment/ monitoring of overall effectiveness of the internal audit function provided (evidence for item (ix) above)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.3 (c): External audit The external financial audit function ensures an independent review of financial statements and internal controls (as defined by the International Federation of Accountants (IFAC)). Analysis/Notes/Observations/Comments:


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i) Entity has appointed an independent external audit firm or organization

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) ToRs for external audit provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Work of the external audit firm or organization is consistent with the recognized international auditing standards such as International Standards on Auditing (ISA), or other equivalent standards

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) In cases where the entity is subject to external audits carried out by a national audit institution or other form of public independent inspection body, provisions should be made so that the external audits are guaranteed independence and impartiality, including through formal terms of reference

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Entity exhibits all necessary provisions and arrangements to ensure that an annual audit

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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opinion on the financial statements and/or, as appropriate, on all financial resources received from the Fund and administered by the entity, is issued by the external auditor and made public

vi) Complete external audit reports for the last 3 financial years have been provided (also refer to item 4.1.2 (b))

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) The external auditor makes regular reports of observations/recommendations with respect to accounting systems, internal financial controls, and administration and management of the organization.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

viii) Audits and management progress reports (actions taken on external audit observations/ recommendations) are reviewed by the audit committee or comparable body periodically

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ix) Status of management response to external audit observations/recommendations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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of previous years is reviewed and commented upon during annual external audits

Item 4.1.4: Control framework The Committee of Sponsoring Organizations (COSO) of the Treadway Commission defines internal control as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (a) Effectiveness and efficiency of operations; (b) Reliability of financial reporting; (c) Compliance with applicable laws and regulations. Analysis/Notes/Observations/Comments:





i) A control framework has been adopted. It is documented and includes clearly defined roles for management, internal

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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auditors, the board of directors or comparable body, internal oversight bodies, and other personnel

ii) The control framework covers the control environment (“tone at the top”), risk assessment, internal control activities, monitoring, and procedures for information sharing

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Control framework defines the roles and responsibilities pertaining to the accountability of fiscal agents and fiduciary trustees

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) At the institutional level, risk-assessment processes are in place to identify, assess, analyse and provide a basis for proactive risk responses in each of the financial management areas. Risks are assessed at multiple levels, and plans of action are in place for addressing risks that are deemed significant or frequent

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) The control framework guides the financial management framework

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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vi) Procedures are in place for identifying internal controls and assessing the details of the controls annually in core financial management areas

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) Provisions for regular oversight of the procurement function with consistent monitoring and follow-up on review reports evidence that a risk management process exists and allows management to identify, assess and address existing or potential issues that may hamper the achievement of the entity’s objectives (this is also covered in the Item on Procurement in the application form)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

viii) Sample recent procurement oversight/audit reports have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ix) Evidence of monitoring of the observations contained in the procurement oversight/audit report and appropriate

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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management response/actions has been provided

x) Duties are segregated where incompatible. Related duties are subject to a regular review by management; response is required when discrepancies and exceptions are noted; and segregation of duties is maintained between settlement processing, procurement processing, risk management/reconciliations, and accounting

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.1.5: Procurement Procurement processes in the applicant entity cover regular procurement relating to the general operations of the entity as well as procurement in the context of the implementation and execution of funding proposals approved by the Fund. These should include formal standards, guidelines and systems based on widely recognized processes and an internal control framework to ensure fair and transparent procurement processes. Analysis/Notes/Observations/Comments:


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Information required Status Adequacy/effectiv

eness suitably demonstrated



i) Formal internal guidelines and a procurement policy that promotes economy and efficiency in procurement through written standards and procedures that specify procurement requirements, accountability, and authority to take procurement actions

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Specific procurement guidelines are in place with respect to different types of procurement managed by the entity, such as consultants, contractors and service providers

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Complete documents for 2 separate major procurements undertaken in the recent past have been provided and demonstrate compliance to the entity’s procurement policies, guidelines and procedures

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Specific procedures, guidelines and methodologies as well as adequate organizational

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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resources for overseeing, assessing and reviewing the procurement procedures of beneficiary institutions, executing entities or project sponsors are in place

v) Assessment/review reports for overseeing, assessing and reviewing the procurement procedures of beneficiary institutions, executing entities or project sponsors provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) Procurement performance in the implementation of Fund’s approved funding proposals is monitored at periodic intervals, and there are processes in place requiring a response when issues are identified

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) Procurement records are easily accessible to procurement staff, and procurement policies and awards are publicly disclosed

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

viii) Evidence of transparent and fair procurement policies and procedures that are consistent with recognized international practice

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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ix) Entity has an accessible and transparent Procurement Dispute Resolution process

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

x) Data on procurement complaints handled in the last 2 years along with brief details of sample cases and their current status (including closure) provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.2: Transparency and Accountability Underlying principles are:

a) Protection and commitment against mismanagement and fraudulent, corrupt and wasteful practices; b) Disclosure of any form of conflict of interest (actual, potential or perceived); and c) Code of ethics, policies and culture that drive and promote full transparency and accountability.

Transparency and accountability are to be demonstrated through an effective combination of fully functional policies, procedures, systems and approaches. The following requirements outline the key standards to demonstrate fiduciary alignment with the above principles. Item 4.2.1: Code of ethics Analysis/Notes/Observations/Comments:

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i) Organization has in place a documented code of ethics that defines ethical standards to be upheld, listing the parties required to adhere to the standards, including employees, consultants, and independent experts; or alternatively, a set of clear and formal management policies and provisions are in place to define expected ethical behaviour by all individuals contracted or functionally related to the organization

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) All individuals with a functional and/or contractual relationship to the organization are made aware of such codes of ethics or policies/provisions as appropriate

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Evidence of communication (making all concerned aware in a structured manner) of the code/standards provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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iv) Organization has in place an ethics committee or has allocated such functions to other relevant bodies/committees within the organization. (This is also covered in items 4.1.1 (a) and 4.1.1 (b) of this document)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.2.2: Disclosure of conflict of interest Analysis/Notes/Observations/Comments:





i) Organization has a financial disclosure policy, or equivalent administrative provisions to this effect, that establishes the necessary financial disclosures of possible, actual, perceived or apparent conflicts of interest by

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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identified parties as appropriate. The policy, or equivalent administrative provisions, specifies prohibited personal financial interests and describes the principles under which conflicts of interests are reviewed and resolved. It should also describe sanction measures for parties that do not disclose such conflicts on a proactive basis where a conflict of interest is identified.

ii) Documented Conflict of Interest review and resolution procedures provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Examples/demonstration/evidence of practice where a Conflict of Interest has actually been reviewed and resolved provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.2.3: Preventing Financial Mismanagement - Capacity to prevent or deal with financial mismanagement and other forms of malpractice Analysis/Notes/Observations/Comments:

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i) Policy on Financial Management which also describes the various malpractices which may occur and prevention strategies

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Demonstrated experience and track record in accessing financial resources from national and international sources

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Evidence of tone or statement from the governing bodies or senior management of the organization emphasizing a policy of zero tolerance for fraud, financial mismanagement and other forms of malpractice by staff members, consultants, contractors, or from any other relevant party associated directly or indirectly with the general operations of the entity, and particularly in relation to

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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the implementation of approved funding proposals

iv) Avenues and tools for reporting suspected ethics violations, misconduct, and any kind of malpractice

⎕ Yes ⎕ No

⎕ Yes ⎕ No Example of a best practice: entity has a provision on its website, which is easily accessible/visible, for reporting violations.

i) _________________ ii) _________________

v) Policy/mechanisms protecting whistle blowers reporting violations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) Evidence of an objective investigation function for allegations of fraud and corruption, which includes procedures in the organization to process cases of fraud and mismanagement, undertake necessary investigative activities and generate periodic reports for information and follow-up by the ethics function. (This point is covered in detail in item 4.2.4)

⎕ Yes ⎕ No May not be assessed in this item

⎕ Yes ⎕ No May not be assessed in this item

i) _________________ ii) _________________

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vii) Brief details of general management policies which promote an organizational culture that is conducive to fairness, accountability and full transparency across the organization’s activities and operations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.2.4: Investigation function The investigation function provides for the independent and objective investigation of allegations of fraudulent and corrupt practices (using widely recognized definitions such as those agreed by the International Financial Institutions Anti-Corruption Task Force) in all operations of the entity as well as allegations of possible entity staff misconduct. Analysis/Notes/Observations/Comments:





i) The investigation function has publicly available terms of

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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reference that outline the purpose, authority and accountability of the function. This function may be assigned to a dedicated organizational component within the entity’s structure or to another organization.

ii) To ensure functional independence, the investigations function is headed by an officer who reports to a level of the organization that allows the investigation function to fulfil its responsibilities objectively

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The investigation function has published guidelines for processing cases, including standardized procedures for handling complaints received by the function and managing cases before, during and after the investigation process.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) The investigation function has a defined process for periodically reporting case trends. To enhance accountability and transparency, case trend reports and other information are made available to

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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senior management and relevant business functions to the extent possible

v) Data/information on cases of violation of code of ethics, fraud or corruption reported in the past 3 years along with current status of investigation/action

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 4.2.5: Anti-money laundering and anti-terrorist financing Analysis/Notes/Observations/Comments:





i) Anti-money laundering and anti-terrorist financing policy provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) “Know your customer” due diligence procedures to combat

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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money laundering and financing of terrorism provided

iii) Mechanisms to trace/monitor electronic transfer/wiring of funds provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Sample copies of recent reports on KYC due diligence undertaken

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) 2 copies of monitoring reports on electronic funds transfer prepared in the recent past

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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SECTION V: Specialized Fiduciary Standards The Green Climate Fund’s specialized fiduciary criteria refer to institutional capacities that will qualify the applicant entities to undertake specialized activities depending on the nature and scope of their mandate within the Green Climate Fund’s operations. 5.1 Project Management The underlying principles of the Funds Initial specialized fiduciary standards relating to project management are: a. Ability to identify, formulate and appraise projects or programmes b. Competency to manage or oversee the execution of approved funding proposals, including the ability to manage executing entities or project

sponsors and to support project delivery and implementation; and c. Capacity to consistently and transparently report on the progress, delivery and implementation of the approved funding proposal. Item 5.1.1 Project identification, preparation and appraisal Item 5.1.1 (a): Project preparation and appraisal Track record of capability and experience (including appropriate tendering procedures for project proposals) in the identification and design of projects or programmes within the respective jurisdiction (subnational, national, regional or international, as applicable). Analysis/Notes/Observations/Comments:


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Information required Status Are the polices/

procedures/ competencies/information clearly defined/ established, adequate/ appropriate and suitably demonstrated?



i) Copy of the entity’s project preparation framework/guidelines/procedures has been provided*

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Copy of the entity’s project appraisal framework/guidelines/procedures has been provided*

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Copy of policy or other document that outlines the entity’s project risk assessment (at the project preparation and appraisal stage) procedures/framework and developing appropriate risk mitigation/management strategies/plans has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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iv) 3 examples of project appraisals undertaken in the past 3 years (preferably climate change mitigation or adaptation projects) have been provided. The project documents demonstrate the entity’s capacity to: a. Effectively use the guidelines

for project preparation and appraisal

b. Assess project risks and integrate corresponding mitigation strategies/plans at the project preparation/appraisal stage

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

* Applicant shall demonstrate track record of capability and experience in appropriate tendering procedures for project proposals, where applicable. Item 5.1.1 (b): Capacity to clearly state project objectives and outcomes in preparing funding proposals and to incorporate key performance indicators with baselines and targets into the project design Analysis/Notes/Observations/Comments:


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i) The project guidelines and the project document formats provide for incorporating the project objectives and outcomes clearly in funding proposals

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The project guidelines and the project document formats provide for clearly stating key performance indicators with baselines and targets for the project into the project design itself

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Examples of projects undertaken in the last 3 years provided in item 5.1.1 (a) (iv) (or separate project documents provided) demonstrate that the project objectives and outcomes and key

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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performance indicators with baselines and targets are established at the project design stage

Item 5.1.1 (c): Ability to examine and incorporate technical, financial, economic and legal aspects as well as possible environmental, social and climate change aspects, and relevant assessments thereof, into the funding proposal at the appraisal stage Analysis/Notes/Observations/Comments:


Information required Status Are the polices/ procedures/ competencies/information clearly defined/ established, adequate/ appropriate and suitably demonstrated?



i) Copy of the entity’s project preparation

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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framework/guidelines/ procedure provides guidelines and templates for incorporating technical, financial, economic and legal aspects as well as possible environmental, social and climate change aspects, and relevant assessments thereof, into the funding proposal at the appraisal stage

ii) Examples of projects undertaken in the last 3 years provided in item 5.1.1 (a) (iv) (or separate project documents provided) demonstrate the entity’s capacity to examine and incorporate technical, financial, economic and legal aspects as well as possible environmental, social and climate change aspects, and relevant assessments thereof, into the funding proposal at the appraisal stage

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.1.1 (d): Appropriate fiduciary oversight procedures are in place to guide the appraisal process and ensure its quality and monitoring of follow-up actions during implementation Analysis/Notes/Observations/Comments:

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i) Framework/guidelines/procedures for undertaking Quality Review during project preparation and appraisal process

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Sample reports of the Quality Review undertaken during project preparation and appraisal process for 2 different projects (These reports should also include follow-up actions, if any, to be taken during the implementation of the project)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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iii) Procedures/formats for monitoring of follow-up actions during implementation

i) _________________ ii) _________________

iv) Sample reports of monitoring of follow-up actions (based on Quality Reviews) during implementation for 2 different projects

i) _________________ ii) _________________

5.1.2 Project oversight and control Item 5.1.2 (a): Operational systems, procedures and overall capacity to consistently prepare project implementation plans, including

project budgets, reporting guidelines and templates to be used by executing entities or project sponsors Item 5.1.2 (b): Operational capacity and organizational arrangements to continuously oversee the implementation of the approved

funding proposal in order to regularly assess project expenditure against project budget as well as to monitor and identify opportunities for improving project performance against its budget and timelines

Item 5.1.2 (c): Appropriate reporting capabilities and capacities to appropriately publish implementation reports Item 5.1.2 (d): Operational systems and overall capacity to conduct necessary activities relating to project closure, including due

reporting on results achieved, lessons learned and recommendations for improvement, as well as capacity to disseminate results and make key findings publicly available


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i) The entity’s policy and operational systems/ procedures in respect of preparation of project implementation plans, including project budgets, reporting guidelines and templates have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Implementation plans (which include project implementation plans, monthly/quarterly/ annual project budgets, reporting guidelines and templates) for 2 projects undertaken in the last 2 years have been provided to demonstrate the entity’s overall capacity for planning/overseeing

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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project implementation as defined in item (i) above

iii) Procedures/organizational arrangements for ongoing/continuous oversight of the implementation of the approved funding proposal to regularly assess project expenditure against project budget as well as to monitor and identify opportunities for improving project performance against its budget and timelines are defined and documented

i) _________________ ii) _________________

iv) Procedures and formats for periodic reporting/ publishing of status of project implementation/approved funding proposals during implementation phase have been provided

i) _________________ ii) _________________

v) Sample reports of implementation status for 2 projects currently under implementation have been provided

i) _________________ ii) _________________

vi) Policies and procedures relating to project closure, including due reporting on results achieved, lessons learned and

i) _________________ ii) _________________

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recommendations for improvement, as well as capacity to disseminate results and making key findings publicly available are defined and documented

Item 5.1.3: Monitoring and evaluation The monitoring function detects, assesses, and provides management information about risks relating to projects, particularly those deemed to be at risk. The evaluation function assesses the extent to which projects, programmes, strategies, policies, sectors or other activities achieve their objectives and contribute to the initial results areas of the Fund. The goal of evaluation is to provide an objective basis for assessing results, to provide accountability in the achievement of objectives, and to learn from experience (and to detect any deviation from project planning in the early stages) Item 5.1.3 (a): Monitoring Item 5.1.3 (a)(i): Operational and organizational resources are available to implement monitoring functions, policies and procedures

consistent with the requirements of the Fund’s monitoring and evaluation guidelines; Item 5.1.3 (a)(ii): The roles and responsibilities of the monitoring function are clearly articulated at both the project and

entity/portfolio levels. The monitoring function at the entity/portfolio level is separated from the project origination and supervision functions

Item 5.1.3 (a)(iii): Tools for reporting on project monitoring are available and monitoring results are periodically published Analysis/Notes/Observations/Comments:

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i) Policy or other document which gives an overview of the entity’s Monitoring and Evaluation function has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The structure of the entity’s Monitoring and Evaluation function including roles, responsibilities and competencies of the key personnel has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The policy and structure relating to monitoring and Evaluation clearly provide for a segregation of the monitoring function at the entity/portfolio level from the

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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project origination and supervision functions (independence of the M&E function)

iv) Procedures/tools and formats/templates for undertaking Monitoring and Evaluation are available

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) The Monitoring and Evaluation procedures provide for a comprehensive analysis of project expenditure compared to the project budget and a brief explanation of major variances

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) Recent sample monitoring and evaluation reports for 2 to 3 different projects have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) Evidence of the monitoring and evaluation reports being published in accordance with the entity’s policy on publishing of such reports is available

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.1.3 (b): Evaluation Item 5.1.3 (b)(i): Independent evaluations are undertaken by an established body or function as part of a systematic programme of

assessing results, consistent with relevant requirements and related Fund policies

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Item 5.1.3 (b)(ii): The evaluation function follows impartial, widely recognized, documented and professional standards and methods Item 5.1.3 (b)(iii): The evaluation body or function is structured to have the maximum independence possible from the organization’s

operations, consistent with the structure of the entity, ideally reporting directly to the board of directors or comparable body. If its structural independence is limited, the evaluation body or function has provisions that ensure transparent reporting to senior management

Item 5.1.3 (b)(iv): An evaluation disclosure policy is in place. Evaluation reports are disseminated as widely as possible, at a minimum to all parties directly or indirectly involved in the project or programme. To enhance transparency, reports are available publicly to the extent possible






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i) The entity has a documented policy for independent evaluation of project results

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The policy clearly defines the requirement (ensures) that the body or function undertaking such evaluations is completely independent of responsibility/ accountability for the project

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) In case of an in-house Evaluation body or function, the structure provides for maximum independence possible from the organization’s operations, consistent with the structure of the entity, ideally reporting directly to the board of directors or comparable body. If its structural independence is limited, the evaluation body or function has provisions that ensure transparent reporting to senior management

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Copies of the Terms of Reference (ToRs) for independent evaluation of 2 different projects have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) The independent evaluation policy and the ToRs provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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demonstrate that the Evaluation function follows impartial, widely recognized, documented and professional standards and methods

vi) 2 independent evaluation reports (at least one of these should be a final evaluation report) have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) The independent evaluation reports include an assessment of the entity’s capabilities in respect of project design, planning and oversight of project implementation

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

viii) The entity has an evaluation disclosure policy (either as a part of its evaluation policy or as a separate policy). The policy requires that the evaluation reports are disseminated as widely as possible, at a minimum to all parties directly or indirectly involved in the project or programme and are preferably available publicly to the extent possible to enhance transparency.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ix) Evidence that the evaluation reports are disseminated in

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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accordance with the stated policy has been provided

Item 5.1.4: Project-at-risk systems and related project risk management capabilities Note: Item 5.1.4 relates to requirements during project implementation and hence is different in its scope in item 5.1.1 (a)(iii) which relates to risk assessment at the project preparation and appraisal stage. Item 5.1.4 (a): A process or system, such as a project-at-risk system, is in place to flag early on when a project has developed problems that may interfere with the achievement of its objectives, and to respond accordingly to redress the problems Item 5.1.4 (c)(i): Risk assessment: Demonstrated capabilities to undertake the assessment of financial, economic, political and regulatory risks during the implementation stages Analysis/Notes/Observations/Comments: Examples of project problems addressed to demonstrate effectiveness of the system.


Information required Status Are the polices/ procedures/ competencies/info



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rmation clearly defined/ established, adequate/ appropriate and suitably demonstrated?

i) Process/procedures for project-at-risk system to flag problems during project implementation, that may interfere with the achievement of its objectives or lead to unintended negative consequences, at an early stage and to respond accordingly to redress the problems are defined and documented

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Examples of project problems identified and addressed (mitigation plans/actions) to demonstrate effectiveness of the system have been provided.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.1.4 (b): Availability of an independent risk management function differentiated from project implementation and project supervision responsibilities Analysis/Notes/Observations/Comments

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i) The Project at Risk System is independent of the project implementation and project supervision system

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Examples of reports/output from the Project at Risk System demonstrate that it works independently of the project implementation and project supervision system

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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Item 5.1.4 (c)(i): Risk assessment: Demonstrated capabilities to undertake the assessment of financial, economic, political and regulatory risks during the implementation stages Note: item 5.1.4 (c)(i) is covered under item 5.1.4 (a). Item 5.1.4 (c)(ii): Risk assessment: Demonstrated ability to integrate risk mitigation and management strategies into the funding proposal at all levels listed above, and to exercise such strategies during the implementation stage Analysis/Notes/Observations/Comments





i) Information on system/procedures within the

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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entity to ensure effective implementation of the planned risk mitigation strategies during project implementation, based on financial, economic political and regulatory risks identified during project implementation.

ii) Examples in the form of project monitoring reports and or audit reports which confirm effective implementation of the system/procedures at (i) above

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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5.2 Grant Award and/or Funding Allocation Mechanisms Item 5.2.1 (a): Transparent eligibility criteria and evaluation Item 5.2.1 (a)(i): The grant award mechanism is organized in a fully transparent manner that guarantees impartiality and equal

treatment to all applicants Item 5.2.1 (a)(iv): All stages are formally documented through standardized checklists and forms Analysis/Notes/Observations/Comments:





i) Grant award system/process is clearly defined and includes

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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defined roles and responsibilities including those of the Grant Evaluation Committee and the Grant Approval Authority

ii) There is a provision for formally documenting all stages of the grant award system/process through standardized checklists and forms

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The grant award system/process is adequately publicised and is available on the entity’s website

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Sample grant notices/call for proposals provided are comprehensive and the criteria for exclusion, eligibility, selection and awards is included in the call for proposals

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) These grant notices/call for proposals were adequately publicised to attract a wide range of potential grantees

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.2.1 (a): Transparent eligibility criteria and evaluation Item 5.2.1 (a)(ii): The evaluation process is based solely on the criteria for exclusion, eligibility, selection and award pre-announced

in the call for proposals Item 5.2.1 (a)(iii): Eligibility evaluation performed on the basis of the criteria stated in the call for proposals

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Item 5.2.1 (a)(v): There is an evaluation committee that: Item 5.2.1 (a)(v)(1): Evaluates the applications to make a recommendation for award and rejections in accordance with the pre-

announced criteria Item 5.2.1 (a)(v)(2): Works in accordance with the formal rules of procedure Analysis/Notes/Observations/Comments:





i) Composition of the Grant Evaluation Committee ensures both competence and independence to undertake evaluation and

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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decide/recommend award of grants

ii) Documented Terms of Reference (ToRs) for the Grant Evaluation Committee have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Sample grant award notices/call for proposals provided are comprehensive and the criteria for exclusion, eligibility, selection and awards is included in the call for proposals. This item is same as item 5.2.1 (a)(iv) and has been repeated here for ease of reference

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) For the sample grant award calls for proposal provided (item (iii)) above eligibility evaluation has been undertaken on the basis of the criteria stated in the call for proposals

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Based on the documents provided it can be concluded that the Grant Evaluation Committee evaluated the applications/made recommendations for award and rejections in accordance with the pre-announced criteria

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) Agenda and minutes of recent Grant Evaluation Committee

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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meetings have been provided and these demonstrate transparency and objectivity in decision making

vii) Based on the documents provided it can be concluded that the Grant Evaluation Committee works in accordance with the formal rules of procedure prescribed for it

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.2.1 (b): Grant award decision and procedures Item 5.2.1 (b)(i): The grant award decision is taken by the person or body who is legally authorized to sign grant agreements on behalf

of the body Item 5.2.1 (b)(ii): The grant award decision is based on the grant award proposal prepared by the evaluation committee. Item 5.2.1 (b)(iii): If the grant award does not follow the evaluation committee’s recommendation, the departing decision is adequately

justified and documented Item 5.2.1 (b)(iv): The grant decision states the following:

(1) Subject and overall amount of decision; (2) Name of beneficiaries, title of granted activity, grant amount awarded, and the reason(s) for this choice; and (3) Names of application(s) rejected and reason(s) for their rejection(s).

Note: with reference to item 5.2.1 (b)(i) above what is required is that the grant award decision be taken by the person or body to whom the appropriate authority has been delegated for this purpose. The grant agreements can be signed by anyone who has the authority to sign such agreements on behalf of the entity.


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i) Grant award system/process clearly defines the authority for taking decisions for award of grants

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) All the decisions for award of grants (based on sample evidence provided) have been taken by the persons or bodies with the requisite authority

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) All the decisions for award of grants (based on sample evidence provided) have been taken in accordance with the recommendations prepared by

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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the evaluation committee. In all cases provided where the grant award does not follow the evaluation committee’s recommendation, the departing decision is adequately justified and documented

iv) In all the cases of award of grant the decision includes the following information: a. Subject/project and overall

amount of grant b. Name of beneficiaries, title of

granted activity, grant amount awarded, and the reason(s) for this choice

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Evidence of the name(s) of the applicant(s) rejected and reason for their rejection(s) has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.2.1 (b)(v): Checks have been undertaken to guarantee that one and the same activity only results in the award of one grant to any

one beneficiary Item 5.2.1 (b)(vi): No grant is awarded retrospectively for activities already started or completed at the time of the application Item 5.2.1 (b)(vii): All applicants are notified in writing of grant award outcome Item 5.2.1 (b)(viii): Rejected applications result in rejected applicants receiving reason(s) for rejection with reference to the pre-

announced criteria

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i) The entity has checks/procedures in place to ensure or guarantee that one and the same activity only results in the award of one grant to any one beneficiary

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The entity has demonstrated compliance with the procedures at item (i) above in case of the grants awarded by the entity for

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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which information has been provided

iii) The entity has checks/procedures in place to ensure or guarantee that no grant is awarded retrospectively for activities already started or completed at the time of the application

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) The entity has demonstrated compliance with the procedures at item (iii) above in case of the grants awarded by the entity for which information has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) The entity has a policy/procedure for notifying all applicants in writing of grant award outcome. Evidence of compliance to such a policy has been provided.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) The entity has a policy/procedure for notifying all applicants whose applications have been rejected and for providing the applicant with the reason(s) for rejection with reference to the pre-announced criteria. Evidence of compliance to such a policy has been provided.

i) _________________ ii) _________________

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Item 5.2.2: Public access to information on beneficiaries and results Item 5.2.2 (a): Grant-awarding entity makes the grant award results public; Item 5.2.2 (b): Results made public within a reasonable timeframe following the grant award decision; Item 5.2.2 (c): The following information should be included (at a minimum):

(i) Name, address and nationality of the beneficiary; (ii) Purpose of the grant; and (iii) Grant amount awarded and, where applicable, the maximum co-financing rate of the cost.






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i) The entity has policies/guidelines for providing information to the public regarding its grant decisions. The policy/guidelines cover, inter alia: a) Type or content of

information to be provided b) Media/channels through

which information will be provided

c) Timelines within which the award information will be made public

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The information on award of grants contains the following information at least: a) Name, address and nationality

of the beneficiary b) Purpose of the grant c) Grant amount awarded and,

where applicable, the maximum co-financing rate of the cost

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Evidence of publication of grant award results for the past 3 grants made by the entity has been provided. The publishing of results is in line with the entity’s applicable policies/guidelines

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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Item 5.2.3: Transparent allocation of financial resources Item 5.2.3 (a): There is a system in place to provide assurance on the reality and eligibility of activities to be carried out with the

grant award as well as the legality of the underlying operations Analysis/Notes/Observations/Comments:





i) The entity has a documented framework/system for undertaking due diligence with clearly defined responsibilities

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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and applicable formats/templates for assessing the eligibility and capabilities of potential grant awardees

ii) The entity has systems/procedures/checks in place to provide assurance on the reality and eligibility of activities to be carried out with the grant award

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The entity’s procedures also include checking of the legality of the operations to be undertaken with the grant funds

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) The entity has provided evidence relating to grant awards which confirm that checks are conducted to get assurance on the reality and eligibility of activities and legality of the operations to be carried out with the grant award funds

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) For ensuring greater transparency in the use of funds by grantees the entity has a system of providing access to the public to information on the periodic progress of individual

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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projects including budget utilisation

vi) The entity has provisions for an annual/periodic independent review/external audit of its grant award activities.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) Copies of the independent review/external audit reports for the last 2 years have been provided (applicable if answer to item (vi) above is yes)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.2.3 (b): There is a system in place to recover funds unduly paid Item 5.2.3 (c): There is a system in place to prevent irregularities and fraud Item 5.2.3 (h): There are clear procedures about procurement rules the grant beneficiary is required to apply, if any Item 5.2.3 (i): There are procedures in place for the suspension, reduction, or termination of the grant if the beneficiary fails to

comply with its obligations Analysis/Notes/Observations/Comments:


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i) The entity has systems/procedures to undertake audits/checks of the expenditures made by the grantees

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The entity has defined suitable procedures for recovery of funds paid to the grantees, in respect of expenditures which are unauthorised or fall outside the scope of the funding for the project

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The right to conduct audits/checks along with the procedures for recovery of funds paid to the grantees, in respect of expenditures which are unauthorised or fall outside the scope of the funding for the

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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project are a part of the grant agreement document/annexes to the agreement/are clearly stated and communicated elsewhere

iv) Brief description of the entity’s policies and the system to prevent irregularities and fraud in the use of grant funds has been provided*

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Data on irregularities and frauds detected in the last 2 years has been provided*

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) Information on any action taken in case of any irregularities/frauds detected has been provided*

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) The entity has defined the procurement rules and procedures which the grant beneficiary is required to apply

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

viii) The need to follow the established procurement rules and procedures is a part of the grant agreement document/annexes to the agreement/is clearly stated elsewhere.

i) _________________ ii) _________________

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ix) The entity has defined suitable procedures for suspension, reduction, or termination of the grant in the event of the beneficiary failing to comply with its obligations

i) _________________ ii) _________________

x) The procedures for suspension, reduction, or termination of the grant in the event of the beneficiary failing to comply with its obligations is a part of the grant agreement document/annexes to the agreement/is clearly stated and communicated elsewhere

i) _________________ ii) _________________

* The information required for items iv to vi above may have been covered/provided in item 4.2 related to Transparency in the Basic Fiduciary Standards. Item 5.2.3 (d): The grant-awarding entity monitors the implementation of funded programme activities and supports beneficiaries

through counselling and advice Item 5.2.3 (e): There are sufficient possibilities for the beneficiary to contact the grant-awarding entity Item 5.2.3 (f): The grant-awarding entity carries out on-site visits to monitor the implementation of individual projects Item 5.2.3 (g): Those on-site visits are used to support the beneficiary, gather and disseminate best practices and establish/maintain

good relations between the awarding entity and the beneficiary entity Analysis/Notes/Observations/Comments:

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i) Monitoring and Evaluation of projects and/or grants may be very similar. Separate M&E frameworks/procedures for projects and grants are not required. M&E requirements for grants may be assessed on the basis of the framework/procedures provided for projects in items 5.2.1 (a) Monitoring and 5.2.1 (b) Evaluation. Similarly evidence of monitoring of implementation of

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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3 projects in the past 3 years provided for projects could also serve as evidence for grants. No additional/separate information required in case the information available in the items mentioned above is found to be adequate.

ii) Does the entity have a system (procedures and a structure) for supporting beneficiaries through counselling and advice during implementation of grant funded activities?

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) There are sufficient avenues/possibilities for the beneficiary to contact the grant-awarding entity (This information may be provided under item (ii) above and hence may be completed on the basis of that information)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) The grant-awarding entity carries out on-site visits to monitor the implementation of individual projects (This may be covered under item (i) above and hence may be completed on the basis of that information)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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v) Reports of site visits also demonstrate that these visits are used to support the beneficiary, gather and disseminate best practices and establish/maintain good relations between the awarding entity and the beneficiary entity

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.2.3 (h): There are clear procedures about procurement rules the grant beneficiary is required to apply, if any Item 5.2.3 (i): There are procedures in place for the suspension, reduction, or termination of the grant if the beneficiary fails to

comply with its obligations No separate matrix is provided for the above items as they are covered throughout the other matrices under item 5.2.3. Item 5.2.4: Good standing with regard to multilateral funding Analysis/Notes/Observations/Comments:


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i) Reports/Evidence relating to reviews undertaken or observations made by multilateral agency(ies) regarding their experience of the entity in handling of funds have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Independent evaluation reports (mid-term or final on closure of projects) commissioned by the multilateral agencies which include comments/observations on the performance of the applicant entity in respect of its handling of the project have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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5.3 On-lending and/or Blending Additional specialized criteria for on-lending and blending will apply for intermediaries and IEs that wish to use those financial instruments with the Green Climate Fund’s resources. The following list suggests possible on-lending and blending capacities for consideration during the accreditation process: Item 5.3.1: Appropriate registration and/or license from a financial oversight body or regulator in the country and/or internationally, as

applicable Note: This requirement will be checked as a part of the Stage I Institutional Assessment and Completeness Check and hence is not covered in this checklist. Item 5.3.2: Track record, institutional experience and existing arrangements and capacities for on-lending and blending with resources

from other international or multilateral sources Item 5.3.3: The creditworthiness of the institution making on-lending or blending arrangements Note: The requirements for items 5.3.2 and 5.3.3 have been combined into a single matrix below as both the points fall within the broad category of institutional standing. Although the availability of credit ratings will be checked at the Stage I Institutional Assessment and Completeness Check, other aspects of track record and creditworthiness, which to some extent are linked will need to be assessed at Stage II Accreditation Review. Analysis/Notes/Observations/Comments:


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i) Data for the last 3 to 5 years in respect of funds for On-lending and Blending, received and handled, from different international and multilateral funding sources has been provided Note: Data for 3 to 5 years may show some trends which may provide evidence whether the entity is gaining or losing the confidence of funding sources. This would provide another perspective on the entity’s track record and creditworthiness

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Project documents for 3 on-lending or blending projects, clearly stating the intermediaries

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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and sources of international and multilateral funding have been provided

Item 5.3.4: Due diligence policies, processes and procedures in place Analysis/Notes/Observations/Comments: On-lending and/or blending procedures





i) The entity has defined and documented

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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policies/guidelines/procedures for its On-lending and/or Blending operations and these have been provided

ii) The entity has a documented framework/system for undertaking due diligence with clearly defined roles and responsibilities and applicable formats/templates for assessing the capabilities of the recipient organisations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Sample due diligence reports (at least 2) in respect of its on-lending and/or blending operations have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ _________________

Item 5.3.5: Financial resources management, including analysis of lending portfolio of the intermediary Analysis/Notes/Observations/Comments:


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i) A document outlining the entity’s policy with respect to management of financial resources (this should cover resources for lending)has been provided Note: This may not be a separate policy document but may be a part of a larger policy on Financial Management

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Framework/procedures for evaluating an intermediary’s lending portfolio are defined and documented

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Recent reports with respect to an assessment of the lending portfolio of 2 different intermediaries have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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Item 5.3.6: Public access to information on beneficiaries and results Note: Information required for this item could be along the same lines as for item 5.2.3 for Grant Award and Funding Allocation Mechanisms. Analysis/Notes/Observations/Comments:





i) The entity has policies/guidelines for providing information to the public regarding its decisions on on-lending and/or blending

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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operations. The policy/guidelines cover, inter alia: a) Type or content of

information to be provided b) Media/channels through

which information will be provided

c) Timelines within which the award information will be made public

ii) The information on beneficiaries contains the following information at least: a) Name, address and nationality

of the beneficiary b) Purpose of the funding c) Funded amount with details

like rate, period, etc.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The information on results of projects contains the following information at least: a) Actual vs planned

results/outcomes b) Adherence to

budgets/cost/timelines c) Brief summary of project

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Evidence of publication of beneficiaries for the last 1 or 2 years has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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v) Evidence of publication of results of 3 projects in the past 3 years (preferably climate change mitigation and adaptation projects) has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.3.7: Investment management, policies and systems, including in relation to portfolio management Analysis/Notes/Observations/Comments:





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i) The entity has provided a copy of its investment management policy

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Guidelines/procedures for managing the entity’s investment portfolio have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Copies of 2 investment portfolio management reports prepared in the past 3 years (preferably the last 2 years annual portfolio management reports) have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.3.8: Capacity to channel funds transparently and effectively, and to transfer the Fund’s funding advantages to final beneficiaries Analysis/Notes/Observations/Comments:


Information required Status Are the polices/ procedures/ competencies/information clearly defined/



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established, adequate/ appropriate and suitably demonstrated?

i) The entity has systems/procedures/ checks in place which provide the required assurance that the funds provided by the entity are channelled transparently and used effectively

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The entity has a provision for an annual/periodic independent review/internal or external audit on the use of its funds

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The entity has provided reports/evidence which confirm that reviews/audits/checks are conducted in accordance with items (i) and (ii) above which confirm that the funds are channelled transparently and used effectively

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) The entity has provided data relating to at least 3 projects which provide evidence of the advantages to final beneficiaries of projects funded by the entity

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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Note: This would provide assurance that the entity has the capacity to use the Green Climate Fund’s funding for advantage of the final beneficiaries.

Item 5.3.9: Financial risk management, including asset liability management Item 5.3.10: Governance and organizational arrangements, including relationships between the entity’s treasury function and the

operational side Note: Capacity to manage financial risk is a part of the requirements of Internal Control. Accordingly, some of the information relevant for this item may have been provided in item 4.1.4 Internal Control in the Basic Fiduciary Standard. Analysis/Notes/Observations/Comments:


Information required Status Are the polices/ procedures/ competencies/information clearly defined/ established, adequate/



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appropriate and suitably demonstrated?

i) Financial risk management policies and procedures provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Brief details of major financial risk management strategies planned and implemented during each of the last 2 years provide (this may also be available in the risk management section under Internal Control Framework)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Analysis/report of the impact/effectiveness of the major financial risk management strategies implemented in the last 2 years provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) 2 samples of the minutes of recent meetings of the entity’s Asset and Liability Committee (ALCO) have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

v) Brief details of the relationship (working and reporting) between the treasury function and the operations have been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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vi) There is clear evidence of segregation of duties of the treasury function and operations

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 5.3.11: For intermediaries or Implementing Entities (IEs) that blend grant awards Item 5.3.11 (a): There are clear procedures about the grant award rules that the implementing partner is required to apply; or Item 5.3.11 (b): If the intermediary or IE uses its own rules, the minimum requirements are satisfactory Analysis/Notes/Observations/Comments:





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i) The applicant entity has clearly defined guidelines/rules/procedures which have to be followed by its implementing partners which undertake blending of grant funds. A copy of these guidelines/rules/procedures has been provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The applicant entity has systems/procedures in place to ensure compliance by an implementing partner to its guidelines/rules/procedures for blending of funds

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The applicant entity has provided evidence (reports) of its capacity to ensure compliance as above (item (ii)) to its guidelines/rules /procedures by its implementing partners

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) In case the applicant entity’s implementing partner or intermediary uses its own rules, applicant entity has an acceptable system for checking that the minimum requirements (as stipulated by its Implementing

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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partner or intermediary) are satisfactory

v) The applicant entity has provided evidence that its systems of checks mentioned above (item (iv)) are implemented effectively

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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SECTION VI: Environmental and Social Safeguards The accreditation review against the Green Climate Fund’s environmental and social safeguards (ESS) will focus on the applicant’s institutional Environmental and Social Management System (ESMS). The ESMS requirements are captured in Performance Standard 1 (PS1): Assessment of Management of Environmental and Social Risks and Impacts. Some entities may have a certified ESMS such as ISO 9001, ISO 14001, ISO 26000 or OSHAS 18000, etc. which is good but it is not a direct substitute. The level of detail and complexity of the ESMS and the resources devoted to it will depend on the level of impacts and risks of the project/programme to be financed; however, the end goal of the Green Climate Fund is to have a reasonable assurance that the entities have systems, processes and staff in place in order to be able to make consistent decisions on E&S issues in line with the Green Climate Fund’s ESS Item 6.1: Environment and Social Policy This policy should define the environmental and social objectives and principles that guide the organization to achieve sound environmental and social performance for the project or programme that will be financed by the Green Climate Fund and consistent with the Green Climate Fund’s Interim ESS (PS1) requirements. Note: The policy should provide an overarching definition of E&S objectives and requirements to ensure sound E&S performance, commitment to comply with applicable law, be consistent with the principles of the Performance Standards, indicate who will ensure conformance with the policy and be responsible for execution. Analysis/Notes/Observations/Comments:


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i) A formal E&S Policy, endorsed/approved by management provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) The policy includes a comprehensive statement of the E&S objectives and principles guiding the institution (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) ________________

iii) The policy states the E&S standards the institution adheres to including host country laws and laws implementing host country obligations under international law (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) The policy indicates who within the entity will ensure

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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conformance with the policy and be responsible for its execution (For category A and B)

v) In the absence of a formal policy (if answer to item (i) is “No”), a description of the specific institutional policies or processes related to the elements that would otherwise be included in an E&S policy have been provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) The policy is communicated to all levels/within the organisation and may be consulted publically (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vii) No policy required (For category C)

Note: while no policy is required for Category C entities, an entity may still opt to provide information on their E&S Policy if they have one.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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Item 6.2: Identification of Risks and Impacts The entity should have a process for identifying the environmental and social risks and impacts of a project/programme identified in the Performance Standards throughout the life of the project/programme. This process could be in the form of a procedure which guides staff in the steps to take during appraisal or due diligence as well as at other stages in the project/programme cycle for each new potential activity. For example, guidance could be provided in how to identify risks and impacts potentially in a variety of geographic settings, a variety of business sectors, and a variety of types of financing and could instruct staff on which tools to utilize such as full-scale environmental and social impact assessment (ESIA), a limited or focused ESIA, an environmental or social audit or risk/hazard assessment, or application of environmental siting, pollution standards, design criteria or construction standards. Analysis/Notes/Observations/Comments:





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i) An institutional process or procedure to guide staff in identifying the E&S risks and impacts of projects/programmes as they evolve over the project life. (For Category A, B, and C)

Note: This ESMS should be fully evolved and documented and integrated across the entity for Category A. For Category B, it may have areas that are operationally intact but need to be further documented and it may not be integrated across the entity but be more isolated to units or groups.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) A track record of applying this process that is consistent with PS1-8 (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) ________________

iii) A basic E&S risks and impacts identification procedure/process, which may be implemented by the relevant part of the organization is provided (For category C only)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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iv) If a risk categorization system is already used, an illustrative list of projects and descriptions from the past 3 years and their risk category, including an indication of who (position not person name) within the organization made the risk categorization determination is provided (For category A, B and C)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Note: For “ Track Record” of the requirements for identification of Risks and Impacts applicant entities would be required to provide actual project documents at the project preparation and approval stage, and during the project implementation stage which would demonstrate compliance to policies, use of the systems/procedures and provide evidence of competence to undertake/oversee/integrate these requirements. Item 6.3: Management Programme Consistent with the objectives and principles described in the entities policy, the entity should have a process to manage the mitigation and performance improvement measures derived from the risks and impacts identification process. This management programme could be a documented process, a tracking system, etc. that ensures that all of the actions that were identified are implemented in a timely manner. Advanced management programs may include performance indicators, targets etc. that can be tracked over time. Analysis/Notes/Observations/Comments:

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i) A documented institutional process for managing mitigation measures and actions stemming from the E&S risk identification process provided, distinguishing between different categories of risk (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 6.4: Organizational Capacity and Competency The entity has established and maintains an organizational structure that defines roles, responsibilities, and authority to implement the ESMS. Analysis/Notes/Observations/Comments:

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i) Organisational chart that identifies key units, departments, senior and line management personnel who are responsible for implementing the ESMS along with their authority and reporting lines has been provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Key E&S responsibilities as outlined in the organisational chart are adequately defined and

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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communicated (For category A and B)

iii) Evidence of adequate technical staff with direct responsibility for the project/programme performance having the knowledge, skills and experience necessary to understand and ensure implementation of PS1-8 has been provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Description of training and development programs for E&S and other relevant staff has been provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 6.5: Monitoring and Review The entity has established processes and procedures to monitor and measure the effectiveness of the management programme as well as compliance with any related legal and/or contractual obligations and regulatory requirements. Senior management has taken the necessary and appropriate steps to ensure the intent of the client’s policy is met, that procedures, practices, and plans are being implemented and are effective. Analysis/Notes/Observations/Comments:

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i) A monitoring/supervision process or procedure that instructs staff on how to systematically track completion of mitigation and performance improvement measures, including roles and responsibilities have been provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Evidence/reports of periodic performance reviews reported to Senior Management on the effectiveness of the ESMS have been provided (For category A and B)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Evidence of Senior Management taking the necessary steps to

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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ensure that the intent of the institutions policy is met and that procedures, practices and plans are implemented has been provided (For category A and B)

iv) Examples of how lessons learned from monitoring and evaluation have influenced the design/decisions concerning projects/programmes or have resulted in updates to the ESMS have been provided (For category A and B)

i) _________________ ii) _________________

v) Description of project monitoring process with respect to E&S requirements has been provided (For category C only)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

vi) Sample project monitoring reports with respect to E&S requirements have been provided. These reports may be specific for E&S or the E&S component may be included in the overall project monitoring reports (For category C only)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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Item 6.6: External Communication Entities have implemented and maintain a procedure for external communications that includes methods to (i) receive and register external communications from the public; (ii) screen and assess the issues raised and determine how to address them; (iii) provide, track and document responses, if any; and (iv) adjust the management programme, as appropriate. This is different from and is not intended to fulfil the PS1 Stakeholder Engagement requirements which are project/programme specific and will be examined post-accreditation during the funding proposal review stage. Note: The entity should develop and implement an external communications system at an institutional level, not just at the project level. Analysis/Notes/Observations/Comments:





i) The entity has avenues/channels, such as a provision on its website,

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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etc. to receive and register external communications (For Category A, B, and C)

ii) The entity has internal procedures and competencies to screen and assess issues raised and address issues, as needed (For Category A, B, and C)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) The entity has submitted a register of external inquiries/complaints received along with responses from the past 3 years provided (For Category A, B, and C)

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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SECTION VII: Gender Item 7.1: Demonstrate competencies, policies and procedures to implement the Green Climate Fund’s Gender Policy Analysis/Notes/Observations/Comments:





i) Gender Policy meeting Green Climate Fund requirements provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

ii) Procedures and practices to support the Gender Policy provided

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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iii) Competencies (qualification and/or experience) to implement the policy, policies and practices established

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

Item 7.2: Demonstrate experience with gender and climate change, including a track record of lending to both men and women Analysis/Notes/Observations/Comments:





i) Examples of 2 lending operations that specifically target women

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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among project/programme beneficiaries have been.

ii) Evidence to show that projects to which the entity lends have non-discriminatory practices in terms of benefits and remuneration for both men and women employees has been provided.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iii) Data on lending to women as compared to overall lending in the past 2 to 3 years has been provided.

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

iv) Examples for requirements related to gender and climate change

⎕ Yes ⎕ No

⎕ Yes ⎕ No

i) _________________ ii) _________________

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STAGE II ACCREDITATION REVIEW LOG

Date of completion of Stage II Accreditation Review

If ready for Recommendation, date of communication from Accreditation Panel to Board

If additional information required, date on which requirements sent from Accreditation Panel to applicant entity

Date on which required information received by Accreditation Panel from applicant entity

Assessment 1 Assessment 2* Assessment 3*

*If applicable Final Conclusion: ⎕ Recommendation can be forwarded by the Secretariat on behalf of the Accreditation Panel to the Board ⎕ Entity requires Readiness Support ⎕ Application required further information