Donor Agency Funded Projects

Donor agencies fund two types of projects i.e. Directly Executed Projects (DEX) and Nationally Executed Projects (NEX). In Donor Agency-Funded Projects, the Implementing Partner assumes responsibility for ensuring the adequacy of their overall supervision and management. It is responsible for making sure that an adequate and reliable system of internal control is built into the project.

The agencies are accountable to the donors for the quality, timeliness and effectiveness of the services they provide and the activities they carry out as well as for the use of funds provided to them. The accountability of agencies refers to:

  • Substantive accountability for the conducting of all project activities – whether implemented by them directly or by other organizations on their behalf;
  • Financial accountability for all funds provided to them for projects;
  • Custodial accountability for all equipment, vehicles and other such assets entrusted to them – whether purchased by an executing agencies using donor agency advances or reimbursements, or purchased directly by agencies on behalf of an executing agencies.

Project Assurance Services

Lochan & Co provides the following services to development sector

  • Financial Certifications & Audits
  • Management Audits
  • Funded Projects Audits
  • Performance Audits
  • System Development
  • Legal Assistance

Value Added Solutions

Our audit strategy is to work with the project management to build quality into the processes that control financial reporting and key risks facing the projects. We are always specific in findings and recommendations and describe fully the reason or cause for any irregularities or departures from established procedures.

The experienced professionals at Lochan & Co use a multi-phased approach to help you build a solid internal controls system. Our multi-phased approach is designed to assess and document your agency’s internal controls.

  • Planning
  • Assess design effectiveness
  • Assess operating effectiveness
  • Ongoing monitoring and testing


Lochan & Co helps the clients:

  • Independent opinion on the project financial statements and that these give a true & fair view of the financial position.
  • Assure the adequacy & timeliness of financial, management & operational information.
  • Confirmation on Internal Control System for its existence effectiveness and adequacy.
  • Validation of compliance with the terms of the project agreement and applicable laws and regulations.