Partnership Due Diligence Assessment Tool

Statement

Peter Hewitt Care for Africa Foundation Inc (CfA) intends to apply for membership of the Australian Council for International Development (ACFID).  It is an ACFID requirement for CfA to have The Partner Due Diligence Assessment Tool in place and CfA endorses this requirement. 

This document is designed to determine whether our partner or prospective partner and our key people (Board members, senior management and people controlling and managing funds that we have provided) are operating in accordance with standard beliefs of good practice and international norms. It provides a list of questions that can be asked or answered through various means including by looking at the organisation’s website, marketing materials, policies, annual reports, key governing documents and through site visits and discussions. It includes two sections, covering a basic organisational assessment and an assessment covering the on-ground program(s) and operations, and service run by the third-party organisation. 

Organisational Assessment 

  1. Legally Registered and Duly Licensed Ways to Verify

1.1 Is the organisation registered as a local or international not for profit entity in the country of operation? 

Yes          No 

• Certified copy of the constitution 

• Certified copy of the constitution 

1.2 Is the program(s) and operations appropriately registered or licensed to operate residential services for children?

Yes         No 

• Certificate of Registration 

• Copy of license 

• Memorandum of Understanding 

  1. Governance Ways to Verify

2.1 Does the organisation have a formal governing instrument? 

Does the constitution/governing instrument include articles that address: 

Yes         No 

Constitution
• By-laws
• Articles of association 

2.2 Appointment and termination of board members 

Yes         No 

 

2.3 Charitable purpose and status as a not for profit organisation 

Yes         No 

 

2.4 Distribution of assets in the case of dissolution 

Yes         No 

 

2.5 Does the entity have a documented board appointed in accordance with the constitution? 

Yes         No 

• Copy of board structure as officially recorded with government 

2.6 Does the board meet regularly and function according to the constitution

Yes         No 

• Organisational records 

• Verbal confirmation 

2.7 Are there any obvious conflicts of interest that could impact governance? 

Yes         No 

• Board Conflict of Interest Register 

• Check for board independence from staff 

• Check to see if board members are related to the director/s 

2.8 Is the organisation currently involved in any litigation or subject to serious complaints or investigations? 

Yes         No 

• Include clause requiring disclosure in partnership agreement 

• Online search 

  1. Financial Controls Ways to Verify
    1. Does the organisation have controls in place to manage the risk of fraud and/or misappropriation of funds and or in connection with terrorism financing at least as strong as that adopted by CfA? 

Yes         No 

• Finance Policy

• Risk Management Policy

• Annual Reports
• Audited Reports 

This should include at minimum: 

3.2 A bank account in the organisation’s name 

Yes         No 

 

3.3 A requirement for two signatories to withdraw funds 

Yes         No 

 

3.4 A clear operational budget and means of recording and tracking expenses against the budget 

Yes         No 

 

3.5 A transparent process for recording gifts and donations 

Yes         No 

 

3.6 A requirement to obtain and keep original receipts for expenditure 

Yes         No 

 

3.7 A transparent financial reporting process 

Yes         No 

 

3.8 Periodic audits of accounts 

Yes         No 

 

3.9 Does the organisation publish or make available annual reports which include financial statements? 

Yes         No 

• Annual Report 

• Website check 

3.10   Does the organisation check against partners against the prohibited entities listings

Yes           No

  • Check against the DFAT ‘Consolidated List’ of persons and entities subject to targeted financial sanctions imposed by resolution of the UN Security Council, and the Attorney-General’s Department ‘List of Terrorist Organisations’ as per Division 102 of the Criminal Code 1995.  CfA Australia will not engage with any individuals or entities that appear on those lists.

3.11 Check the organisation’s partners and key people (Board, senior management and people controlling and managing funds you have provided) against the DFAT consolidated list and the Criminal Code list of terrorist organisations.

Yes           No

  • Financial Wrongdoing Policy

3.12 Does the organisation have in place controls to manage the funding of terrorists and criminals

Yes           No

  1. Financial Wrongdoing Policy
  1. Child Protection Ways to Verify

4.1 Does the organisation have a written child safeguarding policy (otherwise called a child protection policy) in place?

Yes       No

• Child Safeguarding/ Protection Policy

  1. Compatibility Ways to Verify

5.1 The vision and mission of the organisation is clear to all volunteers and staff; they are also clear about what individual projects are trying to achieve

5.2 The organisational vision, mission, values and culture align with your own and these values are evidenced in their practice

Yes         No 

When asked about the organisation’s vision and mission, and a project’s purpose and goal, different staff give consistent answers 

  1. Technical and Organisational Capacity Ways to Verify

6.1 The organisation can clearly identify who the target community or target group are that they work with.

6.2 It has a sound understanding of the culture and people of the target community

Yes         No 

Discussions with relevant staff reveal a good understanding of the community that is not only based on assumptions or subjective opinions but primary and secondary research as well as experience 

6.3 It has networked with other organisations that are working in this area (either geographical or issue-based) and is not repeating the work of others in the community.

6.5 Its approach has been developed in line with accepted good practice and local and international law. 

6.6 It has the relevant technical expertise/staff for the type and scope of work they’re doing.

Yes         No 

Yes         No 

Yes         No 

Discussions with staff confirms that their approach meets accepted good practice in the sector which you’ve researched independently 

6.7 The organisation invests into its staff’s capacity to professionally carry out their duties

Yes         No 

Discussions reveal that learning and training opportunities have been provided to staff and that a plan is in place to intentionally build staff capacity 

6.8 The local target community was involved in determining the activities of the project

Yes         No 

Discussions about how the project was conceived will reveal whether or not the community had a meaningful voice in their design. 

6.9 The local community is involved in implementing and evaluating the project

Yes         No 

Discussions about how the activities are run day to day will reveal the communities’ ongoing involvement. It is important to remember that whilst paid staff of the project may come from the community, it is not satisfactory if they are the only members of the community involved in designing or implementing the project. 

6.10 The organisation can describe how it monitors and evaluates its projects

Yes         No 

Discussions reveal that they have a formal process for monitoring their work and the staff can provide previous monitoring and evaluation reports for you to look at the quality of the information they are collecting. 

  1. Reputation

7.1 The organisation and its leadership are spoken well of within the community

7.2 It has a positive working relationship with the appropriate government authorities

7.3 It collaborates with other people who work in this area of development

7.4 Other well-respected organisations that work in this area of development view their approach, work and staff positively

7.5 It is not currently involved in any litigation or disputes.

Yes         No 

Yes         No 

Yes         No 

Yes         No 

Discussions with the local community and the broader civil society community 

Discussions with the organisation

7.6 It has not received any negative media attention or public accusations against the organisation or its leadership.

Yes         No 

Discussions with the organisation 

Findings and Decision Making

Based on the information obtained, consider the following questions as you make a decision about partnership: 

  • Are you confident the organisation is operating in accordance with national laws, international norms and good practice principles? 
  • Are there any areas of concern and can those concerns be addressed? If so how? 
  • Do you need to seek more information or clarity from your prospective partner or do more research yourself before you can make an informed decision? 
  • Are you confident a partnership with this organisation will allow you to meet all legal and regulatory requirements imposed on your charity? 
  • Do you have the capacity to sufficiently monitor this partnership to ensuring ongoing compliance? 
  • Are there any serious concerns or risks to children that need to be reported and addressed? 
  • Should this partnership be recommended to your board for approval or renewal? 

CFA_D4.V2 Partnership Due Diligence Assessment Tool.
Effective Date: 20 September 2020
Approved By: Board of Management.

Controlled Document — Printed Versions are not controlled. CFA