Strengthening Operational Integrity in Complex Environments
Location: Aden, Yemen
Date: May – July 2024
Expert: Hazem Mansour
1. EXECUTIVE SUMMARY
In 2024, the Project in Yemen required a strategic Technical Assistance (TA) mission to fortify its financial and operational foundations. Operating in a high-risk conflict zone, the project faced challenges ranging from banking instability to internal control gaps.
Over a three-month period, I conducted a deep-dive oversight mission that successfully restructured the procurement department, audited 100% of personnel records, and modernized financial workflows. The result was a fully compliant, transparent, and resilient operational framework capable of meeting strict standards while maintaining continuity in a volatile environment.
2. THE CHALLENGE
Upon arrival, the project was navigating several critical vulnerabilities that threatened both its compliance and its efficiency:
- Systemic Risk: A lack of “Segregation of Duties” in procurement allowed single individuals to manage entire purchase cycles, creating a high risk for fraud or kickbacks.
- Compliance Gaps: HR documentation was inconsistent, with significant portions of personnel files missing or outdated, and travel per diems were being calculated incorrectly.
- Banking Volatility: Conflict between the Central Banks in Aden and Sana’a created a risk of “stopped payments” and limited the project’s access to stable financial channels.
- Manual Processes: Redundant manual voucher systems were slowing down payments and increasing the likelihood of administrative errors.
3. STRATEGIC INTERVENTIONS
A. Internal Controls & Procurement Reform
The most critical intervention was the complete restructuring of the procurement function to eliminate concentration of power.
- Segregation of Duties: I implemented a new matrix that separated the roles of the Procurement Officer (Requester) and the Operations Assistant (Bid Collector/Contract Issuer).
- Threshold Management: Lowered the field office procurement threshold to $5,000, ensuring that larger transactions received higher-level Home Office oversight.
- Ethics Training: Conducted workshops for 100% of the project staff on “Red Flag” detection, ethics, and the use of the reporting system.
B. Financial Oversight & Policy Alignment
I performed a forensic-level review of the project’s financial history to ensure every dollar was accounted for.
- Voucher Audit: Examined a 40% sample of the QuickBooks database (132 vouchers), identifying and correcting coding errors and miscalculations.
- Policy Correction: Identified that staff were being paid 100% per diem for travel days; I successfully realigned this to the policy of 75% payment, saving the project significant costs and preventing future audit findings.
- Workflow Automation: Transitioned the finance team to QuickBooks-generated vouchers, eliminating three redundant manual forms and cutting the payment approval cycle in half.
C. HR Compliance & Personnel Audit
To ensure the project was legally and operationally sound, I conducted a 100% audit of all 36 personnel files.
Compliance Findings & Remediation:
- 67% of Offer Letters were missing or outdated; these were immediately drafted and secured.
- 58% of Performance Objectives were missing; a new standardized template was implemented.
- 100% Compliance Achieved: Developed a “Mandatory Employee Checklist” that HR must now follow for every hire to ensure all employees’ documents including the certifications for Child Safeguarding and Ethics are always on file.
D. Risk Mitigation & Continuity
To protect the project from the ongoing banking crisis in Yemen, I facilitated a banking feasibility study.
- Strategic Banking: Vetted and recommended opening a secondary account with an Aden-based bank to bypass the restrictions imposed by the Sana’a-based banking headquarters, ensuring the project’s payroll and vendor payments remained uninterrupted.
4. KEY DELIVERABLES & OUTCOMES
| Area | Deliverable | Impact |
| Governance | Updated Operations & Grants Manuals | Aligned field operations with Yemeni law and organization Global standards. |
| Integrity | Duty Matrix & Fraud Training | Created a transparent system where no single person controls project funds. |
| Continuity | Aden Bank Assessment | Secured a stable financial pipeline in a conflict zone. |
| Efficiency | Digital Voucher Integration | Reduced administrative “back-and-forth” and improved audit readiness. |
5. CONCLUSION & THE PATH FORWARD
The project has transitioned from a high-risk operational state to one of structured transparency. By implementing rigorous internal controls and achieving 100% compliance in HR documentation, the project is now prepared for external audits and long-term scaling.
Future Roadmap:
- Cost Share Achievement: The next phase focuses on capturing $1.2M in cost-share contributions.
- Digitalization: Moving all physical records to a secure, digitized HR Management System (HRMS).
- Continuous Monitoring: Monthly reviews of the procurement duty matrix to prevent “internal control drift.”