Standard Audit Program on Procurement for Goods, Works and Services

Procurement and Audit notes revision

1. Main Activities Involved
This audit programme covers the expenditure on Goods, Works and Services through the procurement cycle.
2. Audit Objective
To ensure that all contracts (written or implied) are properly entered into and that they are correctly implemented.
3. Risks
The risk to the Entity of poor control over contracts is that goods will be paid for which were not ordered or received; that goods were not purchased with due regard to economy, efficiency and effectiveness and that contract execution did not deliver the quality, quantity, or benefits expected.

Audit Programme- Procurement Audit for Goods, Works and Services

Ref Audit Programme Procedures / Task
Pre-tendering     (including    needs    assessment,     planning    and

budgeting, definition of requirements and choice of procurement method and procedures)

1 Obtain the contract file, and through inspection of the Contract

Committee /Tender Board minutes and other documents confirm:

2 Adequate needs assessments were conducted the appropriate technical personnel and it is fully documented.
3 The definition of requirements was based on clear and complete

technical specifications.

Tendering (including the invitation to tender, evaluation and award;)
4 Based on the contract file (1) above, and through inspection of the Contract Committee

/Tender Board minutes and other documents confirm that Tender

Regulations were complied with regarding the following requirements : [ simultaneously record the project chronology]

5 The preparation and approval of specifications or Terms of Reference
6 Advertising the tender, or short-listing of suppliers/ contractors
7 Receipt, storage and opening the tender bids
8 Technical evaluation of bids
9 Evaluation of financial proposals
10 The contract negotiation, finalization and award

 

Post-award – (including contract management, order and payment)
11 Inspect evidence of adequate contract monitoring and supervision the appropriate authority
12 Confirm the contract has been recorded in the commitment register
13 Confirm all payments are supported an authentic progress payment certificate, prepared the contract specified technical supervisor , and

fall within the payments schedule of the contract

14 Confirm the payment is supported a contactors invoice, and all

internal approval processes have been completed

15 Ensure Progress payments reflect the deduction, where appropriate, of

retention fees

16 Confirm the expenditure has been correctly allocated, and is recorded in the vote book, and the commitment register
Contract Completion
17 Confirm that a project completion certificate has been completed the technical supervisor
18 Confirm any other key user or stakeholder has similarly signed a completion/acceptance certificate, and that issues of satisfactory quality and quantity have been addressed
19 Review the project evaluation report to ensure it was diligently completed, and to ensure that any serious issues have been escalated and dealt with at the appropriate level
20 Review the project chronology to ensure the time elapsed through the various stages of the project cycle were reasonable and efficient
21 Where applicable inspect the Output produced, and interview the users of the output.
Make an informed judgment [acknowledging technical limitations of the Auditor] as to whether the outputs appear to be “fit for purpose [FFP]”. If FFP appears questionable, escalate the matter through appropriate

channels and call for an independent technical inspection.

Fixed Assets Records
22 Where the contract has given rise to the acquisition or construction of

an asset(s), check that all details of the asset(s) have been fully recorded in the fixed assets register

Minor Works (Petty Contracts)
NB. Mainly the supply of casual labour – usually via a petty contract

voucher.

23 From Accounting Records (Expenditure) ensure that no payments are

made without the existence of a supporting Petty Contract Voucher.

 

24 Confirm the existence of adequate evidence that the work was actually completed.
25 From the Petty Contract Voucher confirm that there are signatures/ marks/ thumbprints of the casual labourers confirming hours worked and amounts paid. (NB. Examine these carefully to ensure they were made the people concerned. Try to attend a pay parade).
Post-award – [record the project chronology]
11 Inspect evidence of adequate contract monitoring and supervision the appropriate authority

Source; Offices of the Directors of Audit OECS Countries Harmonized Audit Manual (2009)

Procurement and Audit notes revision

 

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