RELATIONSHIP BETWEEN DWS AND IMPLEMENTING AGENCIES

The relationship between DWS and the implementing agencies is defined as that of Principal and Agent.This means that whatever the agent does so far as it represents the principal unless proven otherwise, the principal takes full responsibility

REASONS FOR QUALIFICATION ON RBIG COMMITMENTS

• Copies of contracts with contract values signed between the I/A and the contractors were not readily available at the Principal’s offices

• Copies of variation orders together with signed documentation confirming that both the Principal and the Agent agreed on the v/o were not available

• Payments made to the I/A without reconciliations –(e.g) There was no system to ensure that payment a certificate is matched against a contract (over/double payment can happen)

• Where there is co-funding there was no documentation and process to be followed that relates to the apportioning of costs

REASONS FOR QUALIFICATION ON RBIG COMMITMENTS cont…..

• There are instances where we had gaps in the sequence of payment certificates. (e.g) there is certificate 1 and2, 3 is missing you have 4 then 5 is missing. (Accuracy and completeness)

• There are instances where we had all payment certificates but because the Auditor General could not determine from which payment voucher no. or journal no. the payment was made, AG could not prove whether the department paid indeed.

RELATIONSHIP BTWEEN DWS AND IMPLEMENTING AGENCIES

• Auditor General could not confirm the completeness of our schedule – meaning that there was no confirmation in writing from the I/A that contracts captured in our schedule are accurate ( There are not over/under stated)

CORRECTIVE MEASURES

• The department must have all copies of signed contracts with values that the agencies have entered into.

• Department must have all copies of v/o’s and all documentation

• Copies of variation orders together with signed documentation confirming that both the Principal and the Agent agreed on the v/o must be made available.

CORRECTIVE MEASURES cont…

• As a matter of urgency the department must reconcile payments against the contracts.

• Where there is co-funding, the process should be clearly documented including matters that relate to finances. ( The percentage split should be recorded for ease of calculation) - Failure to do this can lead to unauthorized expenditure

CORRECTIVE MEASURES cont…

• At the end of the Financial year the I/A must confirm in writing that what is captured in our schedule for commitments is correct. ( This is important for accuracy and completeness)

IMPORTANT TO NOTE

Contracts entered into between the contractor and the subcontractor do not/ shall not form part of our commitments. ( If such contracts are brought in they will misrepresent commitments)

THANK YOU