EPIP AUDIT INTERVENTION PLAN 2018/2019 OUTLINE OF

Transcript:EPIP AUDIT INTERVENTION PLAN 2018/2019 OUTLINE OF:
EPIP AUDIT INTERVENTION PLAN 2018/2019 OUTLINE OF THE PRESENTATION EPIP Summary of Findings Audit Intervention: Current Projects Audit intervention: New Projects (Future) EPIP summary audit Findings for 2017/2018 Non-disclosures in the Departmental Financials Project bank balances at the end of the financial year not recorded as pre-payments Irregular expenditure at the project level not disclosed in DEA’s financials Interest earned in projects not disclosed as additional revenue to DEA Unrelated costs such as marketing and others incurred at project level are included in infrastructure cost in the Department’s books Operational findings No PPE or WIP is disclosed in the project financials SCM processes not followed at project level No evidence that Service Providers/Suppliers were rotated on appointment Disclosure findings Monthly report to finance to be improved to include project bank balances The project audit templates to be reviewed to ensure that PPE and/or WIP, Bank Balances, Interest earned, fruitless, wasteful and irregular expenditure are disclosed for further disclosure in the Departmental financials The above to be included in the consolidated AFS by the Principal auditor Training of Implementer Accountants and Panel of Auditors Operational Findings Procurement planning and reporting templates to be developed and complied to Implementers will be required to develop procurement plans and monthly reports Officials and Implementers to be trained on SCM Conduct quarterly thorough admin inspections to ensure compliance Quarterly procurement reports to be submitted and signed off by the Directors EPIP will ensure that each Implementer advertises locally for establishment of panels and that service providers are rotated Deviations to be approved with proof of having tested the market No payment shall be processed by the PPM’s without the prerequisite proof of SCM having been followed based on source documents Audit Intervention measures on Old Contracts Issued before 31/03/18 Option 1 Appoint auditors from the panel as internal auditors rather than external auditors to ensure compliance AG comes as an external auditor Option 2 Two pronged approach to the appointment of auditors Appointment of auditing firms from the panel in the form of accountants to ensure compliance Appointment of auditing firms from the panel as external auditors Mid-term Audit: Proposed Approach AUDIT INTERVENTION ACTION PLAN Panel of service providers for different categories (construction, project management, built environment professionals and training) were established following Treasury Regulation 16 A (SCM) Service providers to be appointed using quote system as independent contractors (not Implementing Agents) Specifications per project