What happened:
The consolidated audit for one of NCA’s cooperation partners in Malawi had reservations.
What did we do:
NCA investigated the auditor’s reservations and discrepancies were found. We requested a forensic audit to be done by an external audit company. Based on the findings in this forensic audit the forensic audit was expanded to also include the two previous years. The result of the investigations showed fraud and weak internal control systems at the partner. The Norad-supported projects lacked sufficient documentation for the amount of NOK 375 217. This amount has been repaid by NCA to Norad.
What did we learn:
This incident underlines the importance of consolidated audited financial statement from our partner organisations. This requirement enabled this fraud to be identified.