VOCATIONAL EDUCATION AND TRAINING AUTHORITY

Transcription

1 VOCATIONAL EDUCATION AND TRAINING AUTHORITY The audit was conducted between April and August 2012 The scope of the audit covered procurements for the FY 2011/2012 amounting to T.shs 8,535,520,000/= out of this T.shs 5,359,920,000/= were for Goods; T.shs 1,155,000,000/= for Works; T.shs 415,500,000/= for Consultancy Services; T.shs 1,605,100,000/= for Non Consultancy Services and T.shs 1,566,000, for disposal of assets, which had been processed by the time of the audit. Overall compliance of Vocational Education and Training Authority (VETA) was 82% using 13 performance indicators. The scores for the 13 indicators were as follows: Establishment and composition of the TB [100%]; Establishment and Composition of PMU [95%]; Independence of functioning of AO, TB, PMU, User Department and Evaluation Committees [80%]; Preparation of APP [82%]; Approvals [77%]; Advertisement of Bid opportunities [100%]; Publication of awards [36%]; Time for Preparation of Bids [91%]; Method of Procurement[96%]; Use of Standard Tender Documents [100%]; Records Keeping [60%]; Quality Assurance [75%] and Contracts Implementation [74%]. Key Findings a) Establishment and composition of Tender Board: Tender Board has been established and composed of eight (8) members including the Secretary in accordance with Section 28 (1) and Second Schedule of PPA, It was also evidenced all members had attended training on Public Procurement Act 2004 and its Regulations. Scores for Establishment and Composition of Tender Board 100% b) Establishment and Composition of PMU: PMU has been established in accordance with Section 34 of the PPA It was composed of five (5) staff and headed by a person with sufficient academic qualification and experience in procurement function. However, PMU do not consist of other technical specialist staff contrary to Section 34 (2) of PPA, Scores for establishment and composition of PMU 95% c) Functioning of AO, TB and PMU and User Department: There was interference of functions, powers and responsibilities of individual organs of the AO, TB and PMU. The respective organs were not acting independently contrary to Section 38 of the PPA 2004 which requires each organ to operate independently. Some member of TB and PMU staff participated in evaluation of tenders.

2 Scores for Functioning of AO, TB and PMU 80% d) Preparation of Annual Procurement Plan: The APP for financial Year 2011/2012 was appropriately prepared using the templates issued by PPRA. However, the APP had 37 implemented contracts out of planned contracts. Furthermore, there were availability of unplanned procurements implemented which were not shown in APP, implying that the plan was not directly linked to the budget as stipulated under Section 45(e) of PPA Scores for preparation of APP 82% e) Approvals: Most of reviewed contracts received compulsory approvals in various processes i.e. advert and tender document, shortlist of suppliers/contractors, recommendation of awards and variation order. However, there were no minutes that approved any negotiation plan for all negotiations executed by VETA contrary to Regulation 95 or 66 of GN 97 and GN 98 of 2005 respectively. Scores for Approvals 77% f) Advertisements of Tenders: All contracts reviewed under open bidding were advertised publicly in accordance with Section 61(3) of PPA of 2004 and Regulation 80 (5) of GN No. 97 of Scores for Advertisements of Tenders 100% g) Publication of Awards: VETA publicized 8 contract awards only in TPJ for FY 2010/2011 out of 22 contracts executed according to July 2011 report. There was no evidence provided that notifications of awards were sent to PPRA for publication into Procurement Journal and Website contrary to Regulation 21(3) of GN 97 of Scores for Publication of Awards 36% h) Time for Preparation of Bids: Most of the contracts reviewed evidenced that bidders were given adequate time to prepare and submit their bids as stipulated in the third Schedule of GN 97 of However, there were four Requests for Quotations reviewed which not comply with the stipulated time stated in the Third Schedule of GN 97 of 2005 and Regulations 80(6) and 84(1) of GN. No 97 of Scores for Time for Preparation of Bids 91%

3 i) Methods of procurement: Most of the contracts reviewed used appropriate procurement methods including WB (Donors) guidelines. However, two contracts under competitive quotations exceeded threshold for shopping method contrary to the Second Schedule of GN 97 of Scores for Methods of procurement 96% j) Use of standard tender Documents: All procurements reviewed used appropriate Standard Bidding/contract Document prepared and issued by PPRA as stated in Regulation 83 (3) of GN No. 97 of Scores on the use of standard tender Documents is 100% k) Record Keeping: There was no single contract with complete records as required by procurement record system contrary to Regulation 19 of GN. No 97 of The missed information were: annual procurement plan, minutes of tender board that approved the contract, clarifications, progress reports, summary of evaluation to TB, delivery reports, some negotiation and payment records. Scores for Record keeping is 60% l) Quality Assurance and Control: The Accounting Officer appointed Inspection and Acceptance Committees for the delivered goods and prepared inspection reports. However, there was no availability of quality assurance plan formed and Projects managers for Services rendered contrary to Regulation 122 of GN No. 97 of Scores for Quality Assurance 75% m) Contract Management and Implementation: There were no adequate measures taken to ensure proper procurement contracts management was done. PMU was not provided with feedback in contract management. There were no progress reports and handing over reports to ensure, goods, works and service contracts were implemented as per terms and conditions of the contract. In addition, final inspection reports were not made available. Liquidated damages were not deducted for late completion of works and late delivery of goods. Inspection and performance reports were not available to evidence that payments were done in accordance with the terms of contracts. Scores for Contract Management and Implementation 74%

4 Recommendations In view of the above observations, the provisions of the PPA 2004 and its Regulations made under it, the PE should adhere to and attention should be on the following recommendations:- a) The AO should ensure that there are technical specialists in PMU as required by Section 34 (2) of PPA 2004; b) The PE should ensure there is no interference of functions. PMU and TB should not participate in the evaluation of tenders c) The PE should ensure that APP is properly prepared and directly linked to the budget. The APP should also be adhered to; d) The PE should ensure that all approvals are sought from respective organs at each stage of procurements including approvals of any negotiation plans which has specific objective parameters before being carried out; e) The PE should ensure all contracts are disclosed to public in accordance with Regulation 97 (12) of GN No. 97 of 2005 and 67 (3) of GN No. 98 of The same to be submitted to PPRA for publications into Procurement Journal and Website as required by Regulation 21(3) of GN 97 of 2005; f) The PE should ensure that procurements made under quotations are provided with adequate time to enable bidders prepare and submit their quotations; g) The PE should ensure that appropriate methods of procurement are used and contracts are within limits of application as required by Second Schedule of GN 97 and GN 98 of 2005; especially on procurements made under competitive quotations method; h) PMU should maintain and archive all records of procurement and disposal process i.e. copies of APP, minutes of TB that approved the contract progress repots summary of evaluation to TB, delivery reports, payment records and some of the negation reports should be kept and be available within the PMU office at any time and;

5 i) The PE should ensure that the quality assurance and control plan is put in place for work projects executed and Supervisors/Project Managers are appointed. j) The PE should ensure proper management of procurement contracts. PMU should be provided with handing over reports should be prepared. Final inspection reports should be made available and liquidated damage should be effected for all late completion of works and lat delivery of goods.