Money reports lack support docs

By BRADLEY MARIORI
MANY provinces and districts continue to fail to provide appropriate supporting documents such as receipts, quotes and contracts for auditing purposes, Mamose acting regional director of the Auditor-General’s Office Caspar Kohun says.
Kohun said projects and contract management were an area of weakness across many districts and provinces. When this happened, he said, it often led to suspicion of fraud and misappropriation of services improvement programme (SIP) funds.
Kohun said some examples of missing documentation included invoices, payment vouchers, contractual agreements, certificates of completion, tender documents, quotations, bank reconciliations, development plans, project reports, fixed assets, registers and minutes of meetings. He said this translated to non-compliance with the requirements of the Finance Instruction and Public Finances (Management) Act and its impacts are an increased risk of irregularities, fraud and error with respect to the application of SIP funds.
In procurement and tendering, there were procedures established for the screening, selection and approval of service providers, Kohun said.
“Many of the districts and provinces fail to comply with these requirements due to lack of quotations, ineffective tender processes, poor selection of preferred suppliers or contractors, splitting of project costs to circumvent the procurement requirements and proper approvals or authorisation not being obtained,” he said.
“The impact is that there is increased risk that value for money is not being achieved by the provinces and districts due to competitive tender processes not taking place.
“Further, limited use of a competitive tender process increased the risk of irregularities and fraud.
“There appears to be limited processes in place to monitor the progress of projects or the performance on sub-contractors.
“Further, there is limited use of signed contracts to formalise the subcontracting relationship with service providers.”