Partners doing bookkeeping. (Source: Partners of Kindernothilfe)

Financial accountability

Trust is good, but careful supervision is so much better – and this is particularly true when it comes to ensuring that all donations are used for their intended purpose. Kindernothilfe conducts comprehensive internal and external audits, as do our local partner organisations that work with us to conduct projects on site.

The Kindernothilfe Anti-Corruption Code of Conduct serves as a policy for preventing corruption within Kindernothilfe and among its partner organisations. Ombudspersons are equally important in combating corruption. They act independently of the organisation and gather information whenever there are reasonable grounds to suspect corruption connected with Kindernothilfe projects.

  • Kindernothilfe’s monitoring approach

    1. Internal monitoring

    Internal monitoring and suitable internal supervision systems ensure that workflows proceed correctly, laws and regulations are respected and corrupting and corrupt behaviour is prevented.This includes process-independent monitoring carried out by Kindernothilfe internal auditors, as well as the monitoring of the Executive Board by the supervisory body. The Kindernothilfe Diaconic Corporate Governance Code, approved in 2007, is designed to contribute to this effort. It defines how the Association’s bodies cooperate with each other and how the Executive Board is monitored.

    2. External audits

    Kindernothilfe’s operational and financial management, its partners, project partners and projects are regularly audited by independent bodies. This requires accounting standards and financial statements, comprehensive financial reporting and the preparation of an annual financial statement that is audited and tested by an independent auditor. Internal monitoring mechanisms are an integral part of these audits. Fundamental principles of accounting and compiling financial statements, financial reports and annual reports by partners, project partners and projects are explained in the relevant valid KNH guidelines. It is also possible to conduct random audits on the use of funds at the partner, project partner and project levels.

    3. Effective monitoring thanks to a clear division of responsibilities

    Kindernothilfe’s Statutes and relevant rules of procedure stipulate a clear division of responsibility among the organisation’s bodies. The members of the Association elect the Board of Trustees, which appoints the full-time members of the Executive Board, and advises and supervises them. Furthermore, Kindernothilfe has introduced a modified version of the Good Governance Code of the Protestant Agency for Diaconia and Development, which specifies the distribution of responsibilities, and requires that the Executive Board present its annual and budget planning to the Board of Trustees for approval.

  • Monitoring local partners

    1. Project supervision and assistance

    Kindernothilfe pursues two key objectives here: First, it ensures that the funded projects steadily improve the living conditions of children, their families and communities. Second, it safeguards that project funds are used effectively and efficiently. To achieve this, Kindernothilfe has developed the following key components:

    2. Project application

    Every new project requires a proposal that includes information on the project partner, goals, target groups, monitoring, risks and financing. All applications are reviewed: from a content-related and a professional perspective by the relevant international division; and from a financial perspective by the controlling department.

    3. Contractual basis

    A cooperation agreement defines the collaboration with partners and projects. This contract contains a general section with rights and obligations, and a special section that covers agreements on goals and areas of focus.

    4. Annual plan

    All projects and partners have to present a plan with goals, benchmarks, requirements and activities along with a budget. This plan is mandatory to receive funding. No payments will be made without a plan that meets all requirements.

    5. Acknowledgment of receipt

    A written acknowledgment of receipt of payments is required (date, amount in euros and in the local currency).

    6. Progress report

    Projects should report on their progress. All projects that annually receive more than €75,000 must present semi-annual reports that provide information on deviations from plans and budgets.

    7. Project visits

    Projects and partners are regularly visited. Kindernothilfe staff evaluate project progress, design and management. They also audit the accounting, financial management and financial statements. Furthermore, they conduct workshops to improve the work. If projects fail to use funding as agreed, or even misappropriate funds, those responsible will be held accountable (repayment of funds and, in some cases, legal prosecution).

    8. Annual report

    All projects are required to present annual reports that include information on activities and whether objectives have been met. These reports are supposed to illustrate both successes and difficulties/problems. The annual report serves as the basis for the project report that is sent to all sponsors every year.

    9. Annual financial statement

    All projects and partners are required to submit annual financial statements (balance sheet, profit-and-loss statement) that must be reviewed by an independent auditor and include an audited report. All annual financial statements are evaluated and comprehensive audits are conducted randomly. If an annual financial report is not submitted in a timely manner, fails to meet the required standards, or does not include an unqualified auditor’s opinion, no payments will be made until these shortcomings are remedied.

  • The Kindernothilfe ombudsperson

    Dr. med. Jürgen Hower
    (Paediatrics and Adolescent Medicine)
    Nachtigallental 3
    45478 Mülheim an der Ruhr


Who we are

Who we are

Kindernothilfe is a non-governmental organisation founded in Germany in 1959. We partner with local non-governmental organisations in 32 countries in Africa, Asia, Latin America and Eastern Europe to realize and protect child rights.

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Our Project Partners

Our Project Partners

We implement our projects exclusively via local project partners, because we strongly believe in their local expertise and ability to reach out to most vulnerable and marginalized target groups.

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How we evaluate our projects

How we evaluate our projects

Knowing what works: Evaluations are key in optimizing the collaboration between Kindernothilfe and its partners. We jointly gather and analyse lessons learned.

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