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NATIONAL AUDIT OFFICE

Ref: HC 127/324/01/ Part I (7)

Clerk of the National Assembly.; National Assembly Building Reg Pye Lane Banjul

AUDIT OF STRENGTHENING OF THE

11 July 2016

PUBLIC ACCOUNTS AND PUBLIC ENTERPERISES COMMITTES OF THE NATIONAL ASSEMBLY (PAC/PEC) PROJECT

FOR THE PERIOD 1 FEBRUARY 2015 TO 31 JANUARY 2016

Following the conclusion of the audit of Strengthening of the PAC/PEC Project of the National Assembly, we are pleased to submit our audit report.

The audit observations contained in this report are based on the examination of funds received from the World Bank for the implementation of the Project.

~ Senng Mass Jallow For: Auditor General

Cc: Permanent Secretary, Ministry of Finance and Economic Affairs Permanent Secretary, Ministry of Works, Construction and Infrastructure & National Assembly Matters . ./

Independence Drive, Banjul, The Republic of The Gambia

Phone: (+220) 4228 289 Fax:(+220) 4224192, Email: nao@gamnet.gm

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Contents

1.0 Introduction ...... ................................................................................................. 2

2.0 Background ..... .............................................................. ................................... 2

3.0 Scope of Audit ..................................................................... ..... ........ ............. ... 3

4.0 Status of Funds ................................................................................................ 3

5.0 Audit Opinion ........................... ... ...................................................................... 4

6.0 Review of Project Progress .............................................................................. 7

7.0 General Review of Project Internal Control ...................................................... 8

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1.0 Introduction

With reference to the prov1s1ons of the engagement letter referenced Ref: HC127/324/01/Part 1/ (4) dated 23 June 2015, we conducted the audit of Strengthening of Public Accounts & Public Enterprises Committee for the year ended 28 February

2016.

1.1 Background

The International Bank for Reconstruction and Development ("World Bank") has approved a grant to the tune of $609,650.00 to the National Assembly of The Gambia's Public Account and Public Enterprises Committee in the year 2014.

The aim of the support is to strengthen the institutional capacities of the committee is the areas of Public Financial Management (PFM) in the country's drive to building a consolidated and robust economic and budget management system.

The project seeks to complement the Government of the Gambia's 'Public Financial Management Comprehensive Reform Strategy' (2010-2014) designed to strengthen the oversight role of the legislature as well as support the National Assembly's 'Strategic and Investment Plan' (2011-2014).

The Project entails the three components;

i. Strengthen the Institutional and Technical Capacity of PAC/PEC.

This component aims to enhance the knowledge and competence base of legislators in terms of understanding of inherent issues and mechanisms of public expenditure accountability of both of ex-ante and ex-paste issues relating to performance and budgetary appropriation process respectively especially for those with limited understanding of financial management issues.

It also encompasses establishment of support channel from individuals with the requisite technical base capable of giving appropriate support and guidance.

It focuses on three key activities of (i) Development of a handbook and reference manual on budget process, public accounts policies and review procedures; (ii) Provision of continuous specialised training and technical guidance for staff and members of PAC/PEC; (iii) Collaboration with other Parliamentary oversight bodies in the sub region for establishing mutually beneficial exchange and training programs.

ii. Enhancing Public Access to PAC/PEC Oversight Work

This component deals with the development of a mechanism for making available to the general public the works of the PAC/PEC as well as other outputs of its works. This will include approaches such as sensitisations on public accountability issues, public hearings of audit findings as well as other means which seeks to ensure that the general public is kept informed.

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To this end the activities such as revamping of the Assembly's website with special focus on the PAC/PEC activities.

iii. Annual Audit Component

This will cover cost of annual audit of the Project's three year lifespan of the Project activities. The audit, as approved by the World Bank, will be conducted by the National Audit Office or its appointee in accordance with the ToR of the Bank.

1.2 Scope of Audit

The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAis) as well as the Government of the Gambia's Financial Instructions for the Implementation of the Budget Management and Accountability Act (FI). The audit accordingly included such tests of accounting records, internal controls and other procedures as were considered necessary for the due performance of this audit. The audit was limited to the funds disbursed to the Project by the International Bank for Reconstruction and Development (World Bank).

Our audit focused on the activities for the period 1 February 2015 to 31 January 2016 and was designed to:

• Assess the Project's Internal Control System; • Review the Project progress; • Examine the regularity of procurement and contracting activities with regard to

transparency and competitive tendering;

2.0 Status of Funds

According to the approved Project Document presented to us for audit, the total grant approved for the programme is $609,650 covering three years from February 2014 to January 2017.

The current status of the funds is illustrated below:

Total Undisbursed B/F:

Balance B/F Total Disbursement (for the period) Balance Available

Total Expenditure (for the period)

Balance C/F

Total Undisbursed

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$47,938.84 $309,130.00 $357,068.84

$257, 556.66

$99, 502.02

$418,050.00

$108,420.00

3.0 Audit Opinion

I. Certification of Statement of Expenditure (CDR)

We have audited the accompanying Statement of Expenditure of the Project Strengthening of PAC/PEC.

Management is responsible for the preparation of the statement and for such internal control as management determines is necessary to enable the preparation of a statement that is free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on the statement based on our audit. We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAis). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the project's preparation of the statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the project's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the presentation of the statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the statement of expenditure, presents fairly, in all material respects the expenditure of $257, 556.66 incurred by the project for the period 1 February 2015 to 31 January 2016.

II. Certification for Statement of Assets

We have audited the accompanying Statement of Assets for the Project. The statement is the responsibility of the management of the project. Our responsibility is to express an opinion on the statement based on our audit.

We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAis). These standards require that we plan and perform our audit to obtain reasonable assurance on whether the statement is free from material

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misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the statement. We believe our audit provides a reasonable basis for our opinion.

In our opinion, the statement of assets and equipment presents fairly, in all material respects the expenditure of $56, 956.11 incurred for assets and equipment held by the project as at 31 January 2016.

Ill. Certification of Statement of Cash Position

We have audited the accompanying statement of cash of the project as at 31 January 2016.

Management is responsible for the preparation of the statement for project and for such internal control as management determines is necessary to enable the preparation of a schedule that is free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on the statement based on our audit. We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAis). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the project's preparation of the statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the project's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the presentation of the statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion, the attached Statement of cash position presents fairly, in all material respects bank balance amounting to $99,502.62 as at 31 January 2016.

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Auditor's Name: National Audit Office (The Gambia)

Auditor's Signature: ... --~~---~ ·-· ·· ... .. . ~ ~; ~J /.

Date of the Auditor's Report: 11 July 2016

Auditor's Address: Independence Drive, Banjul

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4.0 Review of Project Progress

As per the progress reports we reviewed , all planned activities have been implemented as per planned. The status of implementation for the last quarter of 2015 is tabled below

4th QUARTER 2015

Project Component & Activity Output Indicator

Activity: 1.2

i) Specialized training & technical guidance for staff and members of PAC/PEC

ii) Course on budget analysis financial oversight parliamentary oversight. Parliamentary centre, Ghana

Activity: 1.3

WAAPAC conference

Activity: 2.1

Study tour regional parliaments learn practices

to 30 PAC/PEC Members, SMS and

to staff visited the best parliament of Ghana,

Kenya and Sierra Leone

Training on budget analysis and financial oversight

5 PAC/PEC members trained on budget analysis and financial oversight at the parliamentary centre in Ghana

Partake WAAPAC conference accountability

in 5 PAC/PEC participated

on regional conference Togo

member at

PAC held in

Sensitization form for media, Sensitisation Over 300 participants sensWsed on PAC/PEC oversight responsibility on public accountability

CSos and general public workshop conducted

Sub Total

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Cost US$

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134,013.39

52,423.55

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21 ,020.43

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4,080.60

211,537.97

5.0 General Review of Project Internal Control

During the review, we noted that the Project through Project Management developed the basic books of prime entry as well as ledger analysis system which enable the preparation of statement of income and expenditure. The control environment was also found to be adequate in ensuring that risk of collusion is averted as all the different levels of Project management are usually involved during procurement process.

During the review no management issues have come to our attention.

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STRENGHTENING OF PAC/PEC PROJECT

P144005

Income & Expenditure Statement for the Financial Year

Balance B/F

Income

Transfers

Total Income

Expenditure

Goods/Services

Training

Total Expenditure

Ending 31th January 2016

US$

47,938.84

309, 130.00

357,068.84

82, 171.14

175, 395.68

257, 566.82

STRENGTHENING OF PAC/PEC PROJECT Project ID P144005

No. I ITEM

1. I Canon Heavy duty Photocopier

2. I Canon Office Photocopier

3. I HP laserjet Colour Printer

4. I HD Projector

5. I Dell Desktop Computer

6. I Dell Desktop Computer

7. I Dell Desktop Computer

8. I Dell laptop

9. Dell laptop

10. Dell laptop

ASSET REGISTER 2016

SERIAL No. I REFERENCE I COST ($)

FWG77755 I WB/PACPEC/PhC1 I 7,228.91

NZS24251 I WB/PACPEC/PhC2 11,501.00

CN39F121FT I WB/PACPEC/PR1 11,410.65

QSV1308 I WB/PACPEC/Proj1 I 2,439.76

FVQ7GY1 I WB/PACPEC/DskC1 11,182.23

1XX7GY1 I WB/PACPEC/DskC2 11,182.23

65TQD02 I WB/PACPEC/DskC3 11,182.23

78QF502 I WB/PACPEC/LAP1 11,250.00

HFQF502

H9WF502 J?XIB!PACPEC/~-::r::s~~ ~ THE~ / A {if tl' r-

11.

{* \ ~

Dell Lapto~~~~o~ WB/PACPECII\AP4 1

w,itJ?>~'bo * o£ ... ~-· \\ \\_ ___ k.\. ~\~ \ ~'-f ;;b /..' J

CONDITION

Good

Good

Good

Good

Good

Good

Good

Good

Good

Good

Good

LOCATION

Printing Unit

Committee Secretariat

Project Coordinator

Project Coordinator

Project Coordinator

U:l~

S'~ ~f. C~IL Deputy Clerk legislative Business

Hon. Speaker Chair - PAC/PEC

Hon. Majority Leader Vice Chair- PAC/PEC

Hon. Minority leader PAC/PEC Member

Clerk of the National Assembly

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12. Dell Laptop I42VG502 I WB/PACPEC/LAP5 11 ,250.00 I Good I Project Coordinator •

13. Dell Laptop 8C88502 WB/PAC PEC/LAP6 1,250.00 Good Mr. Marabi Hydara Committee Clerk

14. I Dell Laptop I MN82502 I WB/PACPEC/LAP7 11,250.00 I Good I Mr. Sainey Konteh Committee Clerk

15. I Dell Laptop I H4KL502 I WB/PACPEC/LAP8 11 ,250.00 I Good I Mr. Modou Sillah Committee Clerk

16. I Dell Laptop 18MKT502 I WB/PACPEC/LAP9 11 ,250.00 I Good I Ms. Fatou Sanyang Committee Clerk

17. I Dell Laptop I 24JK502 I WB/PACPEC/LAPlO 11 ,250.00 I Good I Mr. Alieu Demba Audio Technician

18. Mini Van WB/PACPECNAN1 27,347.31 Good Driving Pool

19. Video Camera Recorder 4-564-964-01 WB/PACPEC/CAM1 981.79 Good Camera Unit (HD Sony Camcorder, Triood & 2 32G Memory)