EITI Primer (2).pdf Jun. 2014 | Page 13

WHAT ARE THE FACTORS THAT SHOULD BE CONSIDERED IN THE RECONCILIATION PROCESS? 1. An assessment of the comprehensiveness and reliability of the data 2. The coverage of the reconciliation exercise 3. An assessment of whether all reporting entities provided the requested information 4. An identification of those who failed to report, and whether such failure has a material impact on the comprehensiveness of the report. 5. An assessment of the audited financial statements of the reporting entities for the years covered by the report 6. Recommendations on how to improve the reporting process what is the process for validation? Upon a country’s submission of EITI report, the international board shall procure a validator who will examine the report and the process of EITI implementation employed by the country. Validation is the process by which the country is given an impartial assessment of whether EITI implementation in the country complies with EITI standards. In the validation process, the validator is required to assess a country’s compliance with the EITI requirements such as: 1. Effective oversight by the MSG; 2. Timely publication of EITI reports; 3. Contextual information about the extractive industries; 4. Comprehensive EITI reports; 5. Credible assurance process applying international standards; 6. Comprehensible EITI reports; and 7. Actions taken by the MSG on lessons learned and how it reviewed the outcomes and impact of EITI implementation. Validation can have any of the following results: 1. The country meets the standards and is declared a compliant country; 2. It fails to meet the standards but gains significant progress, in which case, it will undergo a second validation; or 3. It fails to meet the standards and no significant progress was seen, in which case, the country will be delisted. EITI Primer.indd 13 8/14/13 4:31 PM