DFID commissions all of its programming activities to be compliant with the best practice programme delivery framework – the Smart Rules. All programmes must be compliant with the Smart Rules which are designed to accord with the public financial management legislation for grants and, where applicable, with EU procurement regulations for private sector contracts.
Before DFID authorises any payments to awarded grants and/or contracts, due diligence assessments or competitive tendering procedures are undertaken to assess the relative strengths and weaknesses of the potential recipient organisation. This will include assessing governance procedures and the recipient’s own capabilities of oversight and audit of sub-partners. We also test a range of additional qualitative standards such as their capabilities in financial management, programme management, environmental/social responsibility, safeguarding and ethical trading.