ToR Annex 10

Terms of reference for the Implementation Consultant with regard to the

“Disposition Fund Procedure” of KfW

In the case of this project, the “Authorized party” of the disposition fund management is the
Paropkar Maternal and women’s hospital. The implementation consultant has an assisting
role.

If the Consultant is charged with assisting the Employer in the implementation of a Disposition
Fund in accordance with the Disposition Fund Procedure of KfW, he/she is responsible for the
quality assurance. In this role the Consultant shall assist the Employer in managing a
Disposition Fund including its (local) special account(s) and sub-account(s) according to the
Special Provisions and “General Terms for Disbursements under the Disposition Funds
Procedure” as stated in the Annex “Disbursement Procedure” to the Separate Agreement
between KfW and the Employer (the Separate Agreement).
For this purpose, the Consultant shall
▪ Verify that payments/bank transfers to special accounts, sub-accounts and contractors
are being effected according to supply and services contracts or other relevant contractual
agreements, that the value of such contracts does not exceed the amount specified in the
Special Provisions in the Annex “Disbursement Procedure” and supervise if payments to
local accounts are made based on a one-month forecast (if applicable).
▪ Assist the Employer in archiving or archive himself all documents concerning the special
account(s) and sub-accounts. These documents must be available anytime upon request
of KfW and of international auditors conducting an Assurance Engagement.
▪ Monitor expenditures and verify that expenditures are in line with a budget approved by
KfW. With regard to individual budget lines, deviations and/or changes must be approved
by the responsible project manager at KfW.
▪ Support the Employer in preparing disbursement requests and/or evidence on the use of
funds within the deadlines agreed upon with KfW based on the templates provided in the
Annex “Disbursement Procedures” and covering the respective accounting period
(usually four or six months) as stated in the Separate Agreement. This includes evidence
of use of funds in cases in which no replenishment of funds is requested. In particular, the
Consultant will verify the following documents which are to be submitted together with the
disbursement request:
- Statement of Expenditures (SoE) clearly presenting expenditures of the preceding
accounting period as well as planned expenditures for each budget line for the
following accounting period.
- Bank account statements for each special account and all sub-accounts (covering
the respective accounting period).
- Summary of bank account(s) (consistent to the accounting period as stated in the
SoE) for each special account and all sub-account(s) as well as an overall summary
of all funds still available in the accounts.

By counter-signing or electronically validating (via KfW E-Disbursement Platform if used) the

disbursement request the Consultant implicitly confirms that bank account statements of all
special accounts and sub-accounts have been checked against the amount of expenditures
presented in the SoE for the respective accounting period. The Consultant also confirms that
the information provided is correct and that relevant documents as evidence on expenditures
made via the special account(s) and sub-accounts have been provided by the Employer. In
particular, the Consultant will check and verify final balances of local accounts and petty cash.
 ToR Annex 10

In case expenditures have been made in another currency than EUR, the Consultant shall
illustrate and confirm the exchange rate applied (for the respective accounting period) for the
calculation of expenditures as presented in the SoE and summary of bank account(s).
▪ Verify that the amounts listed in the SoE, the Summary of bank account(s), the bank
account statements, and the replenishment request are congruent or else, if there are
deviations, provide an explanation satisfactory to KfW.
▪ Proactively inform KfW in a timely manner about possible delays of evidence of use of
funds including reasons.
▪ Support processes related to annual audits of the disposition fund by an independent
auditor on the basis of Terms of Reference provided by KfW. This includes ensuring that
the audit report is issued within the deadlines stipulated in the General Terms and
proactively informing KfW in a timely manner (including reasons) if the audit report is
delayed.
▪ Inform the Employer and KfW immediately if any issues related to the management of the
disposition fund occur.
▪ Consult the Employer and KfW with regard to closing any of the special and local / sub-
account(s).

In the end the Consultant shall explicitly confirm when signing or electronically validating the
disbursement request that
- The payments from the Disposition Fund have been made based on eligible contracts and
the enclosed Summary of Accounts and Statement of Expenditures have been completed
accurately and that all figures indicated are true and correct.
- Any further information and – to his best knowledge - confirmations contained in the
disbursement request and any supporting documents thereto are true and correct.