Prepared by:
Approved by:
Date Adopted:
Date Approved:
Date Revised:
Mojisola Orekoya, Ag HOD, Grants Dept.
Charles Olalekan Mensah, Deputy Chief of Party/MD
December 20, 2010
January 04, 2011
November 01, 2011
AN ADDENDUM TO THE EXISTING STANDARD OPERATING PROCEDURES AND
POLICIES
This is intended to complement the existing Standard Operating Procedures (SOP) and
to accommodate additional grants that may arise from time to time from Global Fund.
FINANCE
OPENING OF BANK ACCOUNTS
 Separate Bank Accounts would be opened for the operation of this grant.
The Grant would have both Dollar and Naira Accounts
 The Head Office Accounts would be used for operations of the Grants.
 In-flow into the Grant Accounts would be through the USD (Domiciliary)
Accounts.
 Instructions would be given to the Bank to convert to Naira on need basis
and proceeds would be credited to the Naira Accounts accordingly as
standard with the current practice. Uncommitted funds shall be deposited
in an interest bearing account and interest earned shall be reported to the
funding agency for reprogramming.
 Where necessary, Naira Accounts would also be opened at our various
regional offices outside Abuja with the agreed Bank branch closest to the
Regional Office – This would be at Jos, Lagos, Benin, Kano and FCT.
These accounts would be set up by the bank at Abuja and nominated
Account officers at the various branches of the affected regions would be
advised to us by the Bank.
MAINTENANCE OF CASH BOOKS AT IHVN AND BANK RECONCILIATION
 Separate cash books shall be maintained in-house for each of the
accounts opened at the Bank for both the USD and NGN accounts.
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The Regional offices shall maintain separate cash books for the bank
accounts specifically opened for the regional operations.
Entries shall be made in the cash books as transactions are processed
and the books balanced daily with a view to carrying out a bank
reconciliation exercise at the end of every month.
Payment vouchers with bold inscription of “Global Fund Round 9 Grant”
shall be designed for all cash and cheque expenses in respect of the
Grant. This shall be the only document with which entries can be made in
the cash book.
OPERATIONS/APPROVING AUTHORITIES
 The Office Directors or in exigencies, any other person so directed by the
Chief of Party and/or the Deputy Chief of Party/Managing Director shall
have authority to approve expenditure on the Grant up to and including
the sum of =N=500,000 or its Dollar equivalent .
 Any expenditure in excess of =N=500,000.00 or its Dollar equivalent will
have to be approved by the Chief of Party or the Deputy Chief of
Party/MD.
 Expenses are to be approved on the designed payment voucher for
Global Fund operations and these vouchers are to be filed in their serial
and date order. Full description of the expenditure should be boldly
printed on the payment voucher supported with appropriate invoices
and/or receipts.
 All global fund operation expenses are to be initiated by the Department
implementing the activity and this should not be mixed or combined with
any other project expenses. Expenses once approved within the
Department should be passed to Finance for processing.
 All expenses to be disbursed should be checked by Grant Accountant
against the budget to confirm if such fall within the budgetary provisions
before approval is obtained.
 Existing SOP on cash receipts and disbursements for IHVN shall be fully
complied with for all Global fund transactions.
 PEPFAR applicable Per Diem rates will apply to all travels
 A separate Payment Vouchers file is to be maintained by the Finance
Office for the TB Round 9 Grant.
 Currency of payments to all SRs shall be agreed upon.
 All IHVN SOPs and Policies shall be applicable to the operation of the
grant.
REPORTS AND MONTHLY RETURNS
 The Finance Office shall collate all in-flows and expenditure latest by the
15th of every new month and prepare a report in the prescribed format for
submission to Local Funding Agency (LFA).
 The Compliance Office shall validate accuracy and authenticity of all
reports before they are passed to Finance Director to sign-off.
 The report shall be supported with the monthly cash book; copy of bank
statement from the bank and duly prepared Bank reconciliation
statement.
 Separate files shall be maintained by the Finance Office for monthly
returns and reports on Round 9 TB Grants.
GRANTS
SUB-RECIPIENTS
SELECTION OF SUB RECIPIENTS
IHVN in the course of selecting Sub recipients (SR) shall undertake the following
steps:
 Advertise for the position in at least 2 widely read newspapers in Nigeria
specifying the following minimum conditions/criteria to be met;
i. The SR must be fully registered with Corporate Affairs
Commission
ii. The SR must be 100% indigenous
iii. Must have be in existence and operation for a minimum of 3 years
iv. Must have grant management experience
v. Must have a well-defined organizational chart
vi. Must be able to provide evidence of up-to-date remittance of staff
PAYE and other withholdings
 Place same information on its Website: www.ihvnigeria.org
UPON SELECTION
IHVN will conduct/review the following areas:
I.
Audited financial reports of the SR
II.
Organisational capacity to carry out the program
III.
Existing organogram
IV.
Procurement and Supply Chain Management System (PSCM)
V.
The existing Standard Operating Policies and Procedures
(SOPAP)
VI.
Strategic Information (SI) on the past program executed
VII.
Information Technology Capacity (ITC)
VIII.
Assets Management System (ASM)
IX.
General office Administration
AWARD OF CONTRACT
 A notification letter of award shall be communicated to the SR upon
successful selection
 There shall be Letter of Agreement spelling out the relationship between
IHVN and each of the sub-recipients
 The Letter of Agreement shall spell out in clear terms the budgetary
allocation for the yearly programme
 The letter of Agreement will spell out the program deliverables and
targets
 The Letter of Agreement should only be signed and witnessed by the
responsible officers of the organizations/sub recipients
 Application for take- off grant upon signing of LOA and completing the
Fund Request Form (FRF) shall be sent to IHVN
 Opening of dedicated bank accounts by SRs.
SUBMISSION OF PROGRAM AND FINANCIAL REPORTS
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Sub recipients are expected to send in monthly program and financial
reports latest by the 7th of the following month as spelt out in the Letter of
Agreement
Sub recipients shall be reimbursed on a quarterly basis upon satisfactory
review and performance
Sub recipients shall prepare and submit quarterly financial reports within
21 days after the end of the quarter to IHVN Office in the agreed format
provided by IHVN Finance Office
In addition to the quarterly financial reports, sub recipients shall also
prepare annual financial returns/reports not later than 60 days after the
accounting year
GUIDELINES FOR REIMBURSEMENT
 Previous advance must be 75% retired before qualifying for the next
advance
 On no occasion should Sub Recipients exceed the budget. No
justification whatsoever shall be acceptable
 All expenses must be duly authorized and approved by a responsible
officer
 All expenses must be supported with original and verifiable supporting
evidence/documents
 Expenses must be relevant to the program. Expenses considered
irrelevant shall be disallowed
 Expenses on purchase of capital items/assets must be agreed upon
before procurement.
COMPLIANCE/AUDIT REVIEW
 There shall be quarterly and ad-hoc visits to the SRs for review of
financial transactions
 There shall be constant review of SRs’ Policies and Procedures
 IHVN compliance/Internal Audit may ask to visit SRs’ sites for program
implementation and monitoring
GRANTS ADMINISTRATION
Travels
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All grants shall be administered in line with their specific requirements.
Where such grants are indifferent or silent as to specific
conditions/requirements, IHVN existing Policies shall presume to apply.
All travels and travel costs shall be calculated in line with IHVN existing
policies; using existing and approved Hotel and Per Diem rates.
Where a particular grant requires the use of Daily Sustenance Allowance
(DSA), the applicable rate shall be as contained or provided for in the
approved budget or as specified by the PR of any particular grant where
IHVN is an SR.
In an event where the approved DSA is grossly insufficient in a particular
trip, an extra N8,000.00shall be provided for augmentation. However,
such circumstances mustbe communicated to management for approval.
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Note further that in such circumstances, the actual hotel bills must be
retired.
All DSA shall not be subject to any form of retirement.
OVERHEAD APPORTIONMENT

Basis of apportionment on all administrative overheads/costs shall be on
the percentage of grant’s contribution to the total grants portfolio. The
only exception to the rule shall be if management considers a grant to be
insignificant in nature and has negligible administrative demand, a fixed
amount (it could be in absolute figure or in form of a
percentage)considered rational by management shall apply.
FINANCIAL MONITORING
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Financial update provided by IHVN Finance office shall be jointly
reviewed before final submission to the donor/Implementing Partners.
Grant Office shall be responsible for quarterly monitoring and review of
financial status for control purpose
PROCESS FOR CHANGE OF ESTABLISHED BUDGET
This shall be done in line with donor’s policy and requirements. However, where donor
policy is silent on budget modification, IHVN shall follow these processes:
i. Get the PI to initiate the process of budget modification through the office of the
Chief Executive Officer
ii. Submit budget modification to the donor’s office through IHVN’s grant office
iii. Get approval from the donor on the modification before disbursement.
IF SUB RECIPIENT OR IMPLEMENTING SITES WHERE IHVN IS PRINCIPAL
RECIPIENT
i.
ii.
iii.
iv.
SR/Implementing site shall write through her Program Coordinator/Project
Coordinator to IHVN stating areas where budget adjustments should take place.
The only premise for budget modification to come up will be that the SR/site has
implemented the program for the first quarter and it became obvious that survival
of the program may be threatened if budget was not modified.
Such letter upon receipt by IHV shall be reviewed by management together with
Key Program Officers but such review shall be subject to:
a. Donor’s policy which shall form the bedrock of any modifications
b. Available resources provided by the donor because no
modification shall be carried out outside the funds made available
for the cost category
IHVN”s position/approval shall be communicated to the SR/Implementing site
through her Grant Department of such modifications with necessary offices
advised of the revised budget if any.
Any changes or modifications communicated to SR/Implementing sites through
any other means outside Grant Department shall be null and void.
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