Está en la página 1de 13

AUDIT PROGRAM

Value for Money Audit

Audit Area: Utilization of the 20% Development Fund for Infrastructure Projects
Sub Area: Construction/rehabilitation of roads and bridges
Audit Period: January to December, 2007

Audit Criteria:

1. Project/s should be in accordance with Joint Memo Circular No. 1 of the DILG & DBM;
2. Project/s should be in consonance with the Annual Investment & Development Plan of the
agency;
3. Project/s should be properly identified and prioritized according to the needs of
constituents;
4. Projects should have Program of works and detailed cost estimates;
5. Procurement of materials and labor should be in accordance with the Government
Procurement Reform Act (RA 9184) to ensure regularity, transparency, economy,
efficiency and effectiveness;
6. Program funds and resources were utilized/acquired at lowest acceptable cost with due
regard to appropriate quantity and quality, time and adequate supply. (economy )
7. Program results/output are attained, i.e. construction /rehabilitation of roads and bridges
(efficiency); and
8. Project/s should be implemented in accordance with the goal or objectives of the program
(effectiveness), i.e easy transport of products, less transportation cost, reduced travel
time, and mobility/accessibility of transporting from one place to another.

Audit Objectives:

1. To determine whether infrastructure projects funded through the 20% Development Fund are
clearly defined, prioritized and implemented in accordance with the goals and objectives of the
LGU and in compliance with existing guidelines of regulatory bodies.
2. To ascertain the relevance and necessity of the projects in terms of the overall Annual
Investment Plan and on the priorities and needs of the constituents through the Local
Development Council.

3. To determine whether the resources needed in implementing the projects are included in the
Annual Procurement Plan (APP) and that the procurement process was in accordance with the
provisions of RA 9184.

4. Program funds and resources were utilized/acquired at lowest acceptable cost with due
regard to appropriate quantity and quality, time and adequate supply (Economy)

5. To ascertain whether the projects were implemented as planned and in accordance with the
performance criteria/standards set by the LGU (Efficiency).

6. To determine whether the construction and rehabilitation of roads and bridges were
accomplished in accordance with detailed engineering plans, program of works and implemented
within the prescribed period or schedule (Economy and Efficiency).

7. To determine whether the construction of new and rehabilitation of existing roads and
bridges resulted to easy transport of products, lesser transportation cost, accessibility of people
going to and from places, reduced travel time and eventually resulted to better/improved living
and economic condition of the people. (Effectiveness).

Possible Risks Identified:

1. Projects implemented may not be in accordance with the needs and priorities of the end-
users or beneficiaries;

2. Project cost may be unreasonable and disadvantageous to the government;

3. The program/activities for infrastructure development in the AIP/20% Development Plan


may not be aligned with the prescribed guidelines of regulatory bodies such as DILG-DBM, thus
affecting management efficiency and effectiveness; and

4. Projects may not be properly planned, executed and monitored, thus impacting on economy,
efficiency and effectiveness.
Audit Procedures:

Specific Audit Man-


Objectives Audit Procedures WP Ref. Assigned to days
1. To determine whether1.1 Obtain a copy of each of
infrastructure projects the following:
funded out the 20%
Development Fund are a. Annual Budget for the
clearly defined, 20% Development Fund
prioritized and
implemented in b. Annual Investment Plan
accordance with the
goals and objectives of c. 20% Development Plan List of Priority
the LGU and in Infrastructure Projects
compliance with d. LDC Councilfor CY 2007
existing guidelines of Resolution/Minutes of the
regulatory bodies. Meetings

1.2. Identify from the Annual


Investment Plan (AIP), 20%
Development Plan and the
Annual Budget, theList of Projects not
infrastructure projects aligned with the
approved by the LGU for DBM-DILG Joint
implementation for the year. Circ. No. 1
1.3. Determine if the
approved projects are among
the identified priorities of the Interview notes.
LGU based on the objectives
set.
1.4. Determine if the
prioritized projects of the
LGU are aligned with the
guidelines of the DBM/DILG
(Joint Circular No. 1, dated
September 20, 2005).
1.5. Validate, through
interview, the reasons for non-
compliance with the DBM-
DILG guidelines.
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days
1.6. Issue AOM for non- AOM
compliance with the DBM-
DILG Joint Circular No. 1.

2. To ascertain the 2.1. Based on the Minutes ofList of Priority


relevance and necessitythe Meetings and the Local Projects of LDC
of the projects in terms Development Council (LDC)
of the overall Annual Resolution, determine the
Investment Plan and onpriority projects of the
the priorities and needs communities, constituents and
of the constituents project end-users.
through the Local2.2. Inquire if there is a
Development Council. Feasibility Study (FS) or
. actual survey of the needs of Review Checklist
the constituents prior to
preparation and approval of
the LDC Resolution and the List of LDC approved
AIP. If there is, review the FS priority projects not
and survey results as to included in the AIP
relevance and necessity.
2.3 Trace to the AIP/20%
Development Plan if the
projects embodied therein
were those approved by the
Local Development Council.
3. To determine whether3.1. Obtain copy of Annual
the resources needed in Procurement Plan (APP) and
implementing the Program of Works (POW) for
project are included in the construction/rehabilitation
the Annual Procurementof roads and bridges.
Plan (APP) and that the
3.2. Secure copies of covering
procurement process
Disbursement Vouchers.
was in accordance with
Check if the materials
the provisions of RA
procured are included in the
9184.
APP.
3.3. Check the accuracy of
computations of the POW and
supporting cost estimates.
3.4. Review the system of
short listing or accreditation
of prospective contractors.
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days
Secure list of accredited Re-computation sheet
contractors and copies of eligibility
requirements.
Review the processes
undertaken in the selection of
Flowchart
accredited contractors.
List of contractors
Look into the validity of the without accreditation
license issued by the Phil.
Contractors Accredited Board Audit Notes
(PCAB).
Check capability of the
prospective contractors to handle
the projects, in terms of key
personnel, equipment owned/leased
and financial condition.

3.5. Check if there is a budget


for the contract (ABC)
approved by the Local
Sanggunian.

3.6. Evaluate if the chosen


mode of procurement is
appropriate or not considering
the provisions of RA 9184.

Determine the manner of


procurement if it is in
accordance with the
provisions of RA 9184.

AOM
Check the authenticity of
the bid tenders.

Check if abstract of bids is


duly prepared and
approved by the BAC.
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days

Secure copy of Office


Order constituting the
BAC. Check if the BAC is
duly constituted and
convened for the purpose.

Secure Minutes of the


BAC Meetings or
Conferences to determine
if there is required quorum
in every phase of the
bidding process.

Check if the BAC


convened for the resolution
of award to the Lowest
Calculated Responsive
Bidder.

3.7 Issue AOM for


deficiencies noted.

4. Program funds and 4.1. Obtain status of project


resources wereaccomplishments to
utilized/acquired atdetermine if the reported
lowest acceptable costpercentage of completion, as
with due regard to inspected by the Internal
appropriate quantity andControl Unit, is actually
quality, time and undertaken and in accordance
adequate supply. with the approved program
of works. Review Checklist
Validated SWA
Audit Notes
Undertake contract
review.

Validate, through ocular TSO Inspection


Reports
inspection, to see the
extent of project
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days

completion.

Request the Technical


Services Office for further
review of the contract and
for determination of the
reasonableness of price.

4.2. Inform management of AOM


the deficiencies noted by the
TSO through issuance of
AOM.
4.3 For projects undertaken
by administration:
a) Validate or confirm if there
was adequate supply of
materials to be used and/or
labor /manpower to be
employed during the
execution of the projects.
b) Request from the project
engineer a flow diagram of
the planned activities as well
as the critical paths.
Investigate if there are timing
differences between the
procurement of materials and
the availability of appropriate
manpower resources to
implement the project and
from one activity to another.
Verify requests for work
suspension and
corresponding approval.
c) Determine economic
losses or wastage due to
timing differences.
d) Through ocular inspection,
verify if there is sufficient
and safe storage facilities for
construction materials
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days
procured to prevent wastage
or pilferage.
e) Calculate losses due to
pilferage, inappropriate
storage facilities or weak
control over the issuance of
materials.
4.4. Obtain management AOM
comments via AOM.
5. To ascertain whether 5.1. From the AIP, obtain the
the projects werefollowing:
implemented as planned a. Targeted number of roads
and in accordance with and bridges to be constructed or
the performancerehabilitated
criteria/standards set byb. Intended beneficiaries
the LGU. c. Intended scope of the
program/project
d. Standard within which the
results of the project can be
measured
e. Time table
5.2. Identify the monitoring
office for the project.
Request for copies of
progress or accomplishment
reports.
5.3. Validate the reported Comparative Schedule
accomplishments and of Program Criteria
compare with the versus Actual
criteria/standards set. Accomplishments

Check if the targeted


number of projects and
beneficiaries was met.

Determine if the projects


were completed within the
required period.

Determine if the projects


were constructed in the
intended areas or
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days

localities.

6. To determine whether For Projects Undertaken


the construction and through Straight Contract
rehabilitation of roads
and bridges were6.1 Secure copies of the
accomplished indisbursement vouchers for
accordance with detailedthe project from the first to
engineering plans,last billing.
program of works and
implemented within the
prescribed period or
schedule.

6.2Determine if the project/s Status Report on


were inspected and reported the Projects
as finished or completed byInspected by the
the agency within the ICU
timeframe as stated in the
contract.

6.3 Request for inspection


from the technical service
office to be assured that the
project was accomplished in
accordance with the program
of works and within the time
frame as stipulated in the
contract.
6.4 Prepare AOMs for AOM
deviations noted by the TSO
and request for comments,
justification or explanation
from the agency.
For projects undertaken by
administration (materials
procured by the agency and
another contract for labor is
entered into or labor is
provided by the agency
itself)
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days

6.5Secure the disbursement


vouchers covering the
payment of construction
materials.
6.6Obtain copies of program
of works and detailed cost
estimates for the project.
6.7 Determine if materials
purchased were in
accordance with the program
of works.
6.8Obtain copy of contract for
labor, if contracted
separately and ascertain if
what was programmed was
the same or lower than
what was contracted.

6.9 Determine if project was


accomplished within the
timeframe as stipulated in
the contract.

6.10 Inquire from the agency


the timeframe for the
completion of the project if
labor is provided by the
agency.

6.11 Secure copy of the


accomplishment report on
the infrastructure project.

6.12Request inspection from


TSO to validate the
reported accomplished
project by the agency.

6.13 Prepare AOMs for


deviations noted by the
TSO and request for
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days
comments, justification or
explanation from the
agency.
For projects where materials
were procured by the agency
with counterpart labor from
requesting agency.
6.14 Obtain copy of the
Program of works for the
project.

6.15 Secure the Disbursement


vouches covering the
purchase of materials.
6.16 Compare the program of Comparison of POW
works with the delivered versus POs
materials per purchase
order.

6.17 Verify/confirm if Summary of


construction materials were Confirmation
duly received by requesting Results
party and check if there is a
contract of agreement
between the agency and the
recipient as to the
timeframe or commitment
to accomplish the project.

6.18 Inquire from the agency if


there is a system of
monitoring the
accomplishment of projects
involved.

6.19 Secure certification from


the agency as to the
completion of projects as
monitored.

6.20 Request inspection fromTSO Inspection


the COA TSO to validate if Report
reported completed
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days
projects were accomplished
in accordance with the
program of works.

6.21Prepare AOMs based on AOM


the reports obtained from
the TSO and request for
comments, justifications
and clarifications from the
agency.

7. To determine whether 7.1 Obtain or secure from the List of projects and
the construction of new and agency a list of completed intended
rehabilitation of existing projects on the construction or beneficiaries
roads and bridges resulted rehabilitation of roads and
to easy transport of bridges.
products, lesser
transportation cost,
accessibility of people in
going to and from places,
reduced travel time and
eventually resulted to
better/improved living and
economic condition of the
people.

7.2 Conduct verification of


project site or location.

7.3 Conduct interview with the Survey


local residents, transportation Questionnaire
equipment owners/operators,
commuters, businessmen and
other people as to the effects of
the newly constructed or
rehabilitated roads and bridges.
Consider the situation or
condition before and after
project implementation.
7.4 Inquire from the
interviewees if the implemented
Specific Audit Man-
Objectives Audit Procedures WP Ref. Assigned to days
projects resulted to the
following:

Easier transport of their


products
Lesser transportation
cost and reduced travel
time
Mobility of the people
in coming to and from
their locality/destination
The projects eventually
uplifted or had
improved their
economic condition/

7.5Analyze and summarize Analysis of


results of interview considering Interview Results
the targets and performance
indicators of the LGU
management.

7.6 Convey results of audit to


Management and obtain their AOM
comments through Audit
Observation Memo.

Intereses relacionados