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 by 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 by the appropriate authority |
| 12 | Confirm the contract has been recorded in the commitment register |
| 13 | Confirm all payments are supported by an authentic progress payment certificate, prepared by the contract specified technical supervisor , and
fall within the payments schedule of the contract |
| 14 | Confirm the payment is supported by 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 by 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 by the people concerned. Try to attend a pay parade). |
| Post-award – [record the project chronology] | |
| 11 | Inspect evidence of adequate contract monitoring and supervision by the appropriate authority |
Source; Offices of the Directors of Audit OECS Countries Harmonized Audit Manual (2009)
