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Monthly Narrative Report on Cumulative Implementation Progress UNDP Monthly narrative report on cumulative implementation progress UNDP STAR project management and the Amalgamation Team 2nd PROGRESS REPORT To: United Nations Development Programme in Albania Grant Thornton Sh.p.k Rr.Skenderbej, Gurten building, Kati I II Rr: Sami Frasheri Kompleksi T.I.D, Shk. B, Floor 1 Tirana, Albania 10 000 Tirana Albania T +355 422 74832 F +355 422 56560 [email protected] www.granthornton.al 6 November 2015 Dear Sirs, In accordance with the Contact for Professional Services No. #07/2015 signed between Grant Thornton sh.p.k. and UNDP Albania "Provision of technical assistance services for replication of Due Diligence Developed Model for LGUs in Albania in the framework of Territorial and Administrative Reform Implementation" (‘the Project’) and the activities predefined within the scope of the project, herewith we provide you with the second Progress Report for the Project. The Report comprises the accomplished activities under the project for the month of October 2015, a list of the main issues identified, the results achieved under the project, the plan of the activities for the next months and an assessment of whether the deliverables will be issued in accordance with the project deadlines. With respect, Kledi Kodra, FCCA Managing Partner Chartered Accountants Member firm of Grant Thornton International Ltd Monthly narrative report on cumulative implementation progress to UNDP STAR project management and the Amalgamation Team 6 November 2015 Important Notice The Progress Report (‘‘the report’’) on the realization of the Project "Provision of technical assistance services for replication of Due Diligence Developed Model for LGUs in Albania in the framework of Territorial and Administrative Reform Implementation" (‘‘the Project’’), is prepared by Grant Thornton Sh.p.k on behalf of the Consortium of firms (“Grant Thornton” or “The Consultant”) according to the Contact for Professional Services No. #07/2015 signed between Grant Thornton sh.p.k and UNDP Albania. Grant Thornton Sh.p.k, on behalf of the Consortium Firms, is not accepting any kind of responsibility or obligation to any other party, but UNDP Albania (“the Client” or “UNDP Albania”) or the concerned parties whom are entitled to the content of the Report, as specified in the Agreement. Anyone relying on this document, with exception of the Client or the concerned parties who are entitled to the content of this Report, entirely or partially, undertakes the risk completely regarding the results shown in this document or its content on any grounds whatsoever. In the execution of this services and the preparation of this document, Grant Thornton does not undertake any kind of responsibility for the decisions of the Client, regarding the undertaking or not of any strategy or direction of activities. The Report and the expressed opinions are based on information obtained by the local government units working groups. Not limited to the above, Grant Thornton will not have any responsibility or obligation regarding the submitted information or explications on which this Report is based upon, if these are incorrect, incomplete or untrue. The Report is submitted only to UNDP Albania and should not be used, reproduced or distributed, directly or indirectly, to any other party, for any kind of purpose, without prior written consent from Grant Thornton. The results expressed in this Report can be completely understood only after reading the Report and the other documents, data, assumptions and limitations. Chartered Accountants Member firm of Grant Thornton International Ltd Monthly narrative report on cumulative implementation progress to UNDP STAR project management and the Amalgamation Team 6 November 2015 Content 1. Accomplished activities under the project for the month of October 2015 1 2. Main issues identified 4 3. Results achieved under the project during the second month of activities 8 4. Plan of the activities for the next months 10 5. Assessment of whether the deliverables will be issued in accordance with the projects deadlines 13 6. Appendix A 14 Chartered Accountants Member firm of Grant Thornton International Ltd Monthly narrative report on cumulative implementation progress to UNDP STAR project management and the Amalgamation Team 6 November 2015 Accomplished activities under the project for the month of October 2015 In accordance with the signed Contract, The Consultant during the realization of the Project for "Provision of technical assistance services for replication of Due Diligence Developed Model for LGUs in Albania in the framework of Territorial and Administrative Reform Implementation", has realized the activities as described below. The team of consultants has dedicated support and administrative resources at the Central Coordination Team level and Qark Team level. The project support and administration staff at both levels has and will be continuously liaising with field experts and projects management, thus facilitating the due diligence model execution in the field and timely reporting. The consultant is providing assistance to local working groups in their carrying out of the due diligence with respect to financial and operational aspects through the Help Desk implemented in the initial stages of the project. During the current month, The Consultant has been continuously reviewing the reported information with respect to financial and operational annexes. A more complete list of activities carried out in the 2nd month of the project follows: Activities realized in 2st month of the Project 1. Extensive review of the financial and operational information in each 384 Units. 2. With respect to review of the existing legal framework and assessing necessary amendments that allow the undertaking of measures for consolidating the systems, practices and different resources of local governments we have provided guidance to field experts to clarify issues encountered in the reporting process. 3. Continued providing assistance via Helpdesk to local working groups in their carrying out of the due diligence with respect to financial and legal operations including materials, report templates and pilot project work, answer to their questions, etc. 4. Continued providing oversight and progress monitoring on the region experts from the central level experts. 6. Continued providing field experts with operational, financial models and with relevant laws and legislation to adhere and refer to during the fieldwork. 7. Continued availing answers to frequently asked questions on help desk separately with respect to financial and operational issues in order to ensure the use of a consistent approach on the deliverables. 8. Monitored progress status with respect to gathering of financial statements of each LGU, Notes to the financial statements, controls and adjustments, financial models, financial control report vis-a-vis deadlines. 9. Monitored progress status with respect to gathering information of existing human resources of each LGU and their organizational structure, vis-a-vis deadlines. 10. Obtained summarized identified issues with respect to notes to the financial statements, controls and adjustments, financial model for LGUs and financial control report provided in the individual regions 11. Obtained summarized identified issues with respect to organizational structure, business processes and operational control reports provided in the individual regions 12. Enquired with treasury directory on the financial statements reported from the legal units, specifically on liabilities of LGUs and summary of available treasury amounts reported and guided the field experts to ensure reconciliation of figures reported. 13. Summarized liabilities reported to date from all units that have submitted the financial data in the financial model for LGUs. 14. Performed a quality review with respect to data reported in the organizational Monthly narrative report on cumulative implementation progress to UNDP STAR project management and the Amalgamation Team 6 November 2015 structure, business processes and operational control reports. The quality review consisted not only in the contents reported therein but also in ensuring a consistent and appropriate presentation in line with model patterns. This activity was performed at central level. 15. Performed a quality review with respect to the data reported in the financial, statements, notes to the financial statements and ensured completeness, accuracy and appropriateness of the date reported therein. 16. Mobilized a team of experts which is currently analyzing the functions and human resources, reported in organizational structure and business process annexes and is contemplating organizational structures for the new municipalities. The team is focusing on a functional gap analyses, including job descriptions, code of conduct and the development of a generic manual of policies and procedures. 17. Mobilized a team of IT experts to develop a business continuity plan. The experts are currently analyzing the information reported in business processes. 18. Mobilized a team of valuation experts from Grant Thornton in Macedonia and UK for the preparation of valuation methodology of land and buildings of the LGUs. The review process during October is being carried out on the operational aspects and financial aspects. On the operational reports of 384 Units: Regarding the annexes of the organizational structure the team of consultants performed a quality review focusing on the content and the presentation of annexes
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