Due diligence in Grant funds

One of the emerging trends in award of research grants from external funders has been the completion of the due diligence questionnaire. The donor often asks for submission of a due diligence questionnaire within very strict timelines. The Directorate of Grants Management (DGM) therefore works with the grantee to provide accurate and timely responses to the potential funder.

Due diligence is a standard of Care that a reasonable person or business is required to take before entering into an agreement with another party. It is usually administered in form of a questionnaire and involves teams in interdisciplinary research that are based in different organizations. The due diligence questionnaire enables the partners and funding agencies to understand the grantees organization work environment. Researchers the world over have an obligation to undertake research in an ethical, fair and equitable manner. The questionnaire checks for measures put in place to enhance the research and provides assurance that funds will be used appropriately.

The increasing focus on due diligence is attributed to the wide and complex research landscape that many organizations and researchers work in. The funder therefore uses the due diligence to ascertain that the partnership will be successful. There are many areas of assessment in a due diligence questionnaire. The questionnaire is often focused on the governance and control of an organization, the financial stability of an organization and the ability of an organization to deliver on proposed research activities.

In the governance section, the questionnaire asks for the organization status in

1. Management of fraud, bribery, corruption, money laundering and slavery
2. Presence of internal controls of management
3. Presence of risk management policies
4. Research governance and assurance processes
5. Scientific Misconduct

In financial Stability, the questionnaire checks for aspects on

1. Financial Management
2. State of Internal and External Audit
3. Value for Money – Presence of Procurement policies
4. Finance policies, procedures and systems
5. Presence of separate bank accounts for grants
6. Other sources of income

In the ability of the organization to deliver, the questionnaire checks for

1. Past performance on similar projects
2. Staff Capacity and Capability
3. Infrastructure available and program management for research
4. Monitoring and management of the grants
5. Training policy
6. Equality and diversity
7. Data Management
8. Openness and publications transparency

The due diligence questionnaire also seeks to establish the appreciation of marginalized groups and people with disability (differently abled) in national practices, standards and policies. In organizations where these groups are not given any special consideration, the due diligence questionnaire requires the grantee to mediate for the same with their institution before award of a grant.

Another aspect that the due diligence questionnaire lays focus on is the ability of the research products to be equally beneficial to the funder as it is to the recipient of the research funding. The due diligence questionnaire promotes equitable partnership.

If your donor request for completion of the due diligence questionnaire, contact DGM via

email on grants.management@jkuat.ac.ke or visit our offices at the Old COHRED Building next to Chapex Office number 27