MINISTRY OF BASIC & SECONDARY EDUCATION MOBSE PROJECTS COORDINATION UNIT IDA PROJECT THE GAMBIA

Transcription

1 Public Disclosure Authorized Ministry of Basic and Secondary Education - The Gambia Public Disclosure Authorized Public Disclosure Authorized MINISTRY OF BASIC & SECONDARY EDUCATION MOBSE PROJECTS COORDINATION UNIT IDA PROJECT THE GAMBIA AUDIT REPORT FOR THE YEAR ENDED 31 ST DECEMBER 2017 AFRICAN CENTRE OF EXCELLENCE - ACE PROJECT ID: P Public Disclosure Authorized AUGUSTUS PROM AUDIT. TAX. ADVISORY. REGISTERED AUDITORS 3 KAIRABA AVENUE 3 RD FLOOR CENTENARY BUILDING SERREKUNDA, KSMD THE GAMBIA JULY 2018

2 Contents Page 1 General Information 2 2 Project Background 3 3 Audit Objective & Scope 4 4 Internal Controls Summary of the PMU 8 5 Compliance Review with Laws, Regulations & Financing Agreement 8 6 PMU s Responsibilities to the Project Financial Statements 9 7 Audit Report on the ACE Project 11 8 ACE Special Account Statement 14 9 Appendix to the ACE Project Financial Statement Appendix A Withdrawal Application 18 Appendix B List of Ineligible Expenditure 19 Appendix B Project Fixed Asset Register 20 Appendix C Budget Variance Report Management Letter Report 23 1

3 1. General Information 1.1. Staff of the Project Management Unit (PMU) Abdoulie Sowe Alhagie Bah Ebou Serign Gaye Haddy Jack Addison Gomez Haddy Sanneh- Gibba Deputy Project Manager Project Financial Controller Construction Program Manager Donor Coordinator Procurement Officer Admin Assistant 1.2. Bankers Central Bank of The Gambia ECOWAS Avenue Banjul The Gambia 1.3. Financiers The World Bank International Development Association H Street Washington DC USA 1.4. Financial Auditor Augustus Prom Audit. Tax. Advisory. Registered Auditors 3 Kairaba Avenue 3 rd Fl. Centenary Building Serrekunda, KSMD P.O Box 587, Banjul The Gambia. 2

4 2. Background The World Bank Group (the Bank) has been supporting the Government of The Gambia in its development efforts since the early 1970s. The Gambia government has received the Grants from the IDA for the African Higher Education Centre of Excellence Project. IDA 54120, IDA H930 of USD 3 million was approved on the 5 th June 2014 to finance the Africa Higher Education Centre of Excellence Project (ACE) and will be completed by 31 st December The development objective of the Higher Education Centers of Excellence Project for Africa is to support the recipients to promote regional specialization among participating universities to deliver quality training and applied research. The project has two components. The first component will strengthen 19 centers of excellence in selected higher education institutions to provide high quality graduates and applied research to address specific regional development challenges. The second component, enhancing regional capacity, evaluation and collaboration has the following three sub-components: (i) (ii) (iii) Enhancing regional capacity and evaluation which will be financed through a regional International Development Association (IDA) to the Association of African Universities (AAU). Project facilitation in Nigeria will finance project implementation support and facilitation of the National Universities Commission in Nigeria; and Enhancing demand driven regional education services in The Gambia will finance the provision of higher education services to the Gambia s students, faculty and civil servants. 3

5 3. Audit Objectives & Scope 3.1. Audit Objectives The overall objective of the audit of the Project Financial Statements is to enable the auditor to express a professional and independent opinion (s) on the financial position of the Projects for the year ended and to ensure that the funds disbursed to the Special Project Accounts have been used in accordance with the Project s objectives. The Scope of the Audit is limited to the Special Accounts of the PMU as stated in the audit contract including the SOEs (Withdrawal Applications). The auditor should assess whether the Project s Special Account Statements have been prepared in accordance with Generally Accepted Accounting Principles and give a true and fair view of the operations of the PMU s Special Project Accounts. Any material deviations from these principles and the impact of such departures on the Project Special Account Statements as presented should be stated. The audit should also enable the auditor to assess compliance with the provisions of the Project Grant Agreements. The Project Accounts (books of account) provide the basis for the preparation of the Special Account Statements and are established to reflect the financial transactions in respect of the PMU s activities, as maintained by the PMU. They are also responsible for maintaining adequate internal controls and supporting documents for all transactions. The audit will be conducted in accordance with International Standards on Auditing (ISA), as promulgated by the International Federation of Accountants (IFAC) and will be including such tests and auditing procedures as the auditor considers necessary under the circumstances. 3.2 Scope of the Audit As stated above, the audit is being carried out in accordance with International Standards of Auditing (ISA) and includes such test and controls, as the auditors consider necessary under the circumstances Internal Control Systems The audit firm is to assess the Internal Control systems of the PCU. This would include aspects such as adequacy and effectiveness of accounting, financial and operational controls, and any needs for revision; level of compliance and established policies; plans and procedures; reliability of the accounting system, data and financial reports; 4

6 methods of remedying weak controls or creating them where there are none; verification of assets and liabilities; and integrity, controls, security and effectiveness of the operation of the computerized system. The audit report for each fiscal year ended must cover the following: (a) All Bank funds have been used in accordance with the conditions of the Grants Agreement with due attention to economy and efficiency and only for the purposes for which the funds was provided; (b) Counterpart funds where applicable have been provided and used in accordance with the conditions of the Loan Agreement. (c) Goods and services financed have been procured in accordance with the Loan Agreement and in accordance with the World Bank Procurement Policies and Procedures. (d) All necessary supporting documents, records and accounts have been kept in respect of all Project activities. Clear linkages should exist between the books of account and the Project Financial Statements presented to the Bank as well as level of disbursement and physical completion stage. (e) Where special accounts have been used, they have been maintained in accordance with the provisions of the Loan Agreement and in accordance with the Bank s rules and procedures. (f) Comment on whether the school improvement grants have been disbursed according to the grant procedures described in the implementation manual and the duly indentified beneficiaries have received the funds to which they are entitled; (g) The Project Financial Statements have been prepared in accordance with (IFRs/IAS) issued by the International Accounting Standards Board and give a true and fair view of the financial position of the Projects as at 31 December 2017 and of its receipts and expenditures for the period ended. (h) The audit firm has carried out a comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions and ensure safe custody of Project financed assets. 5

7 3.3 Project Financial Statements The project financial statements should include: (a) Special Account Statement (b) (c) (d) (e) (f) Reconciliation between the amounts shown as received by the project and those shown as being disbursed by WB as an annex; A statement of comparison between actual expenditures and budget estimates; Notes accompanying the PFSs; List of Project Fixed Assets List of Project Ineligible Expenditure 3.4 Quality Control & Documentation Procedures The auditor shall apply International Standards on Auditing (ISA 220), and therefore required to do the following: (a) (b) (c) (d) Obtain relevant information to evaluate circumstances and relationships that create threats to independence; Evaluate information on identified breaches which create threat to independence of the audit engagement; Take appropriate action to eliminate such threats or reduce them to an acceptable level by applying safeguards; Document conclusions on independence of the engagement. 6

8 3.5 Management Letter Report The auditor shall prepare a Management Letter Report to: (a) Give comments and observations on the accounting records, systems and controls that were examined during the course of the audit; (b) (c) (d) (e) Identify specific deficiencies and areas of weakness in systems and controls that have come to our attention and make recommendations for their improvement; Report on the degree of compliance to applicable National Laws & Regulations and each of the financial covenants of the Financing (Grant) agreements and give comments on internal and external matters affecting such compliance; Communicate matters that have come to attention during the audit that might have a significant impact on the implementation of the project; Bring to attention any other matters that the auditor considers pertinent; 7

9 4. Summary of Audit Results Internal Controls We have assessed the overall internal control environment of as Satisfactory. This was based on the outcome of tests of components of the project s control environment assessed as follows: - Details Control Consciousness Segregation of Duties Management & Supervision Competence of Personnel Protection of Fixed Assets Accounting & Protection of Records Results Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory 5. Compliance with Laws, Regulations & Financing Agreement We performed tests of the Project s compliance with certain provisions of law and regulations and the Financing agreement. However, our tests disclosed no instances of material non-compliance with the laws and regulations and the loan agreement. Our objective was not to verify overall compliance with laws and regulations etc. 8

10 6. Statement of the PCU s Responsibilities to the Financial Statements It is the responsibility of the Projects Coordinating Unit (PCU) at the Ministry of Basic and Secondary Education (MOBSE) to prepare the project financial statement which gives a true and fair view of the state of affairs of the projects for each year. In preparing these Financial Statements, the PCU is required to; Select Suitable Accounting Policies and apply them Consistently; Make judgments and estimates that are reasonable and prudent; and Ensure compliance with IDAs loan agreements and disbursement guidelines. Ensure that accepted accounting principles have been followed, subject to any material departures disclose and explained in the Financial Statements. The financial statements consist of the following; 1. Special Account Statements 2. Statement of Uses of Funds 3. Appendices to the Financial Statements The PCU responsible for keeping proper accounting records which disclose with reasonable accuracy at any time, the financial position of the project and to ensure that the special account statements comply with the loan agreement. They are also responsible for safeguarding the assets of the project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. They should also provide all relevant information necessary for the performance of the audit. 9

11 AUDITORS REPORT ON THE AFRICAN CENTRES OF EXCELLENCE (ACE PROJECT) FOR THE YEAR ENDING 31 st DECEMBER

12 AUGUSTUS PROM AUDIT.TAX.ADVISORY. 3 Kairaba Avenue P O Box 587, The Gambia - Telephone (220) / / Fax (220) admin@augustusprom.com 7. Auditor s Report on African Centre of Excellence (ACE) to Members of The Project Management Unit- MOBSE Government of The Gambia- IDA Auditor s Opinion We have audited the Special Account Statement for the year then ended, and notes to the Financial Statements including Accounting Policies applicable to the Project. In our opinion, all external funds have been used in accordance with the conditions of the Project Agreements, goods and services have been procured in accordance with the Project Agreements. In our opinion, proper books of accounts have been kept with adequate internal controls. The ACE Project Special Account Statement gives a true and fair view of the financial position of the ACE Project as at 31 st December 2017, prepared in accordance with World Bank Donor guidelines and on IPSAS Cash basis of accounting. Basis of Opinion We conducted our audit in accordance with International Standard on Auditing (ISAs). 0ur responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the financial Statements section of our report. We are independence of the Company in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in The Gambia and we have fulfilled our other responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 11

13 Responsibilities of Management and those charged with governance for the Financial Statements Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IPSAS Cash Basis Accounting, and in the manner required by the Project Agreement and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project s ability to continue as a going concern, disclosing, as applicable, matters related to going concern operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Projects s financial reporting process. Auditors Responsibilities for the Audit of Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intention omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. 12

14 Conclude on the appropriateness of management s use of the going concern basis of accounting and basic on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt on the Institute s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the Institute to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Institute s financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal con We also provide those charged with governance with a statement that we have complied with relevant ethical requirement regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significant in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. The Engagement Partner on the audit resulting in this independent auditor s report is Mr Augustus F. Prom. 13

15 9.1 IDA USD Special Account Statements Africa Centre of Excellence (ACE) Project For the year ended 31 December 2017 Year ended Year ended Cumulative 31 Dec st Dec 2016 Inception to 31 st Dec 2016 USD USD USD Opening balance 592, ,916 - Receipts IDA funds (See Page 18) 558,061 1,306,619 2,612,180 Total Funds Available 1,150,132 1,707,535 2,612,180 Expenditures by Category Goods - 30,406 64,019 Consultancy Services 2,696 2, ,160 Operating Cost 97, , ,234 Training & Workshop 804, ,044 1,865,004 Foreign Exchange Differences (1,886) (1,886) Total Expenditures 905,483 1,115,464 2,367,531 Receipts over Expenditures 244, , ,649 ======== ======== ======== 14

16 Represented by: Special Account balance 244, , ,649 ======== ======== ======= 15

17 9.2 Statement of Uses of Funds Africa Centre of Excellence (ACE) Project Expenditure by Component For the year ended 31 December 2017 Year ended Year ended Cumulative 31 Dec st Dec 2016 Inception to 31 Dec 2017 USD USD USD Strengthening African Centre of Excellence Enhancing Regional Capacity, Evaluation & Collaboration 905,483 1,115,464 2,369,417 Foreign Exchange Differences - (1,886) (1,886) 905,483 1,115,464 2,367,531 ======= ======== ======== 16

18 9.3 Appendices to the ACE Special Account Statement Appendix A Appendix B Appendix C Appendix D Withdrawal Applications & Reconciliations Ineligible Expenditure Fixed Asset Register Budget Variance Report 17

19 Appendix A- Withdrawal Reconciliation Source Year App No. App. Amount Disbursed by Donor (USD) Amount Recognized in the Project Financial Statements (USD) Reconciliation Differences (USD) IDA , ,061 - Total 558, ,061 - The Withdrawal Applications above has been reconciled to the Project Financial Statements and there was no difference between the financials and the amount disbursed by the donor. 18

20 Appendix B Ineligible Expenditure Year ended Cumulative 31 Dec 2017 Inception to 31 Dec 2017 USD USD Ineligible expenditure - - ===== ===== 19

21 Appendix C Fixed Asset Register Account Fixed Assets Description Loc. Date Identification number Location Original Value Printers HP Laser Jet 700 Printer Yira May-15 ACE/HP Printer /8 Accounts PCU 260, HP Laser Jet 700 printer May-15 ACE/Hp Printer / 9 HR 260, Computer 1 Latop Computer /05/2016 ACE/ Laptop/2016/01 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/02 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/03 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/04 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/05 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/06 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/07 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/08 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/09 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/10 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/11 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/12 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/13 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/14 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/15 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/16 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/17 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/18 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/19 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/20 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/21 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/22 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/23 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/24 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/25 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/26 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/27 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/28 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/29 MoHERST

22 30 Latop Computer /05/2016 ACE/ Laptop/2016/30 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/31 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/32 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/33 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/34 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/35 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/36 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/37 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/38 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/39 MoHERST Latop Computer /05/2016 ACE/ Laptop/2016/40 MoHERST Total 1,280,

23 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project Appendix D Budget Variance Report Budget Variance Report Details Actual Budget Variance USD USD USD Expenditures Strengthening African Centre of Excellence Enhancing Regional Capacity, Evaluation 905, ,400 (636,083) & Collaboration 905, ,400 (636,083) ======== ======= ======== 22

24 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project MANAGEMENT LETTER REPORT FOR THE YEAR ENDED 31 st DECEMBER

25 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project IN-CONFIDENCE Ref: AP/C/839/18/(02) 16 th July 2018 The Members (GOTG/MOBSE-PMU/IDA-World Bank) Thro: The Project Manager-PCU Ministry of Basic and Secondary Education Willy Thorpe Place Building Banjul, The Gambia Dear Sir, INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) PROJECTS ACE MANAGEMENT LETTER REPORT FOR THE FOR YEAR ENDED 31 st DECEMBER 2017 We have completed the audit of the project s financial statements for the ACE project for the year ended 31 st December 2017 and wish to bring to your attention the following audit observations which came to light during the course of the audit exercise with suggestions and recommendations for possible systems, controls and compliance improvement as necessary. These observations with their recommendations for improvement are based on the review and assessment of the project s financial reports, books of accounts, records, internal controls system and procedures, performance of accounting personnel, procurements, payroll, compliance to the financing agreements and applicable national laws etc. For your information, the purpose of the audit is to enable us to express our professional opinion on the Special Accounts Statements presented to us to audit by the PMU at MOBSE. The audit should not be relied upon to disclose all defalcations or other irregularities that may exist in the system. However, if such exist and were discovered during the course of the audit, they would have been disclosed. We wish to thank the staff of the Project Management Unit and for the cooperation accorded to us during the audit exercise. Should you require any information, please do not hesitate to contact us. Yours Faithfully, 24

26 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project PRIORITISATION OF AUDIT FINDINGS The objective of the management letter report is to give added value to the client by communicating appropriately to those charged with governance and management, recommendations for systems and operational improvement based on observations gathered during the course of the audit. The management letter is used to communicate with those charged with governance focusing on the following: Weaknesses noted within the internal controls system that could lead to material losses or misstatements in the financial statements; Efficiencies to be made, to improve the overall performance of the organization; Failure to comply with policies, laws & regulations, financing conditions, service rules and other laid down procedures; Systems and Compliance issues to be addressed which would enable the audit to be successfully completed within the required time-frame. The findings which are stated in the management letter are grouped into a system of grading to enable those in charge of management to better prioritize on the implementation of recommendations emanating from audit findings. The audit findings raised into 3 different grades. The grades are as follows: Grade 1 These are findings that are highly significant and the urgent involvement of management is required for their resolution; Grade 2 These are finding that may have a significant impact on the controls or compliance environment resulting to a negative impact on operations within the organization; Grade 3 These are findings which are less significant than Grade 1 and 2 but still need attention. 25

27 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project TABLE OF CONTENTS No. Description Pages 1 Manual Accounting System 27 2 Expenses Fuel Management 28 3 Imprest System 29 4 Review on Previous Year Findings 31 26

28 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project 1. MANUAL ACCOUNTING SYSTEM 1.1 OBSERVATION GRADE 1 During the audit, we noted that the Tompro accounting system was unable to generate the Financial Statements as a result Excel was used to generate the Project Financial Statements as at 31 st December IMPLICATION The project maintains an accounting system which is unable to generate Financial Statement defeats the purpose of having an accounting system. Preparing Financial Statements using excel could lead to errors or irregularities occurring which could go undetected during the Financial Statement preparation stage. 1.3 RECOMMENDATION We recommend that management should ensure that the accounting system is looked into to ensure that the Accounting Package will be able to generate project financial statements which are in line with good practice. 1.4 MANAGEMENT RESPONSE The Tompro Accounting had been a very old version and because the contract with the vendor also expired a long time ago, technical services in terms of correction of malfunctions was not available. The lead us to maintain a parallel system using excel. However, I am confident that this will be behind us since we upgraded the system to a latest version in June of 218. We have almost completed uploading all the financial on the new program without much problems. 27

29 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project 2. EXPENDITURE FUEL MANAGEMENT 2.1 OBSERVATION GRADE 1 Upon our review on the fuel expenditure, we noted that a fuel log book is not maintained to monitor the purchases and the distribution of fuel. 2.2 IMPLICATION A log book not maintained means that a trail cannot be established from the purchases of fuel to the delivery. It further makes us question how the purchase and the distribution of fuel is monitored to ensure there are no irregularities occurring. 2.3 RECOMMENDATION We recommend that a fuel log book should be developed and maintained which is in line with good practice. 2.4 MANAGEMENT RESPONSE. We have however noted your recommendations about maintaining a log book for the use of the fuel at the Ministry of Higher Education Research Science and Technology (MoHERST) and will endeavor to implement it going forward. 28

30 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project 3. IMPREST SYSTEM GRADE OBSERVATION During our review on the imprest system of the project, we noted poor duty segregation in the imprest process. The same person that is given the Cash to implement the activity, is the same person that distributes the cash for implementation and then is the same person that retires back to the project on the funds given. We noted the following imprest cash given out for activity implementation; PV no Imprest Amount USD Person Cash Given Person Distributing Person Retiring 5 8,048 Yusupha Touray Yusupha Touray Yusupha Touray 6 6,760 Yusupha Touray Yusupha Touray Yusupha Touray 15 7,774 Yusupha Touray Yusupha Touray Yusupha Touray Furthermore we noted instances in which imprest were not retried for up to 11 months by personnel implementing activities which is not in line with good practice. As follows; PV no Imprest Amount USD Date Imprest was given Date Imprest was retired Duration 5 8, Months 6 6, Months 15 7, Months 29

31 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project We further noted that there is no deadline given to personnel implementing in which they are to implement and retire back to the project. 3.2 IMPLICATION Having one person being involved in the whole process from cash collection, to distribution to retirement is not in line with good practice. Irregularities could occur which could go undetected leading to financial losses to the project. Having imprest amounts for long duration is not in line with good practice. Activity deadlines not being given to implementing personnel to implement and then retire back could lead to late implementation of activities which could have an impact on project implementation. 3.3 RECOMMENDATION We recommend that there should be another personnel involved in the process which would further improve on the imprest system and minimize the risk of irregularities occurring. There should be deadlines given for the implementation and retiring back to the project. 3.4 MANAGEMENT RESPONSE Management will ensure that, in future, when implementing officers are given imprests for activity implementation, another payment will not be made without the previous one retired satisfactorily. 30

32 4. REVIEW ON PRIOR YEAR MANAGEMENT LETTER POINTS AUDIT PERIOD DETAILS AUDIT OBSERVATION IMPLEMENTATI ON STATUS AUDITORS REMARKS 2016 Purchase of Laptops A. Distribution of Laptops We requested for the distribution of the laptops to reconcile to the students on the ACE Program but this was not provided. All we were Implemented This issue has been addressed by management. provided was with 3 s stating the names of the Students that received the laptops. We further noted an from Lamin K Fatty dated 24 th April 2016 acknowledging receiving a dell laptop when Lenovo laptops were supplied as per delivery note. There was inadequate hand over evidence. B. Closing Stock of Laptops Being Implemented This issue is being addressed by management. During discussions it was mentioned that there were some laptops that were not distributed and it was in stock. We were shown stock in hand but we were unable to reconcile if that is the correct amount to be in stock because there was no list showing what was given and the amount to be available in hand. Being Implemented This issue is being addressed by management. C. Damaged Laptops During our verification of the physical stock in hand, we noted certain boxes that were open and the batteries and chargers were removed. Upon further discussion with staff on ground, it was mentioned 3 laptops have damaged batteries and chargers. Our

33 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project concern is that this was within the supplier warranty period because 28.3 of the Contract between MOBSE and the supplier states that Warranty is a period of 12 months from date of supply and there was no claim against the warranty. Furthermore, section 26.1 states that the inspection and tests of the machines should be conducted by IT Unit planning. This was not done for these machines Retirements A. Retirement Form During our review on retirements, we noted that retirement forms are not attached to retirements to easier monitoring and linking the documents to the actual expenditure. Implemented This has been addressed by management. B. Retirement Attachments We are still yet to be provided with the following retirements; Date Details Amount (USD) Graduate Tracer Study 16, Supp. For Tracer Study 21,214 We further requested for a Generator log book which would records the hours run for the generator but it was confirmed to us that such details are not maintained by management. 32

34 Ministry of Basic and Secondary Education The Gambia Project Coordination Unit IDA Projects ACE Project 2015 Accounting System Manage ment response During our review on the Financials provided for review, we noted that the TOMPRO accounting system was not reconciling to the Quarterly Financial Report prepared in Excel. A new and the latest Tompro software has been installed in June which is believed will address this issue Being Implemented This is yet to be addressed by management. Management is still having issues with the Tompro System. A new and the latest Tompro software has been installed in June which is believed will address this issue 33

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