Provision of Consultancy Services to Conduct Technical Audit of … · 2015-08-13 · THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WATER Provision of Consultancy Services to Conduct

THE UNITED REPUBLIC OF TANZANIA

MINISTRY OF WATER

Provision of Consultancy Services to Conduct Technical Audit of the Water Sector

Development Programme for the FYs 2010/11 & 2011/12

Inception Report

Submitted by:

UPIMAC Consultancy Services Ltd, Plot 133, Kiira Road, Kamwokya P.O Box 24744 Kampala - Uganda

Tel: +256-414-530694 Email: [email protected]

Web: www.upimac.org

December 2012

http://www.upimac.org/

Technical Audit of the Water Sector Development Programme for the Financial Years 2010/11 and 2011/12

Inception Report

Contents

Acronyms i

CHAPTER 1: INTRODUCTION 1

1.1 Background 1

1.2 Objectives of the Technical Audit 1

1.3 Scope of Work 2

CHAPTER 2: APPROACH AND METHODOLOGY 6

2.1 Technical Approach 6

2.2 Methodology 12

CHAPTER 3: WORK PLAN 25

CHAPTER 4: OUTPUTS 28

CHAPTER 5: TEAM COMPOSITION AND TASK ASSIGNMENT 29

5 Organization and Staffing 29

CHAPTER 6: ANNEXES 30

6.1: Schedules for Entities to be sampled 30

6.2 Data Collection Tools 32

6.3 Field Reporting Format 50


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Acronyms

BWB Basin Water Boards

BWO Basin Water Offices

CAG Controller Audit General

CB Capacity Building

CBG Capacity Building Grant

CBP Capacity Building Plan

CC City Council

CWSSP Community Water Supply and Sanitation Programme

DAWASA Dar es Salaam Water and Supply and Sanitation Authority

DAWASCO Dar es Salaam Water Supply and Sanitation Company

DC District Council

DCC Dar es Salaam City Council

DDCA Drilling and Dam Construction Agency

DDSP District Development Support Programme

DSM Dar es Salaam

DUWS Division of Urban Water Supply

DUWSAs District Urban Water and Sanitation Authorities

DWR Division of Water Resources

DWSTs District Water and Sanitation Teams

EIA Environment Impact Assessment

ESIA Environmental and Social Impact Assessment

ESMF Environmental and Social Management Framework

EWURA Energy and Water Utilities Regulatory Authority

FY Financial Year

GoT Government of Tanzania

IAs IEs

Implementing Agencies Implementing Entities

IWRM Integrated Water Resources Management

JWC Joint Water Commission

JWSR Joint Water Sector Review

KASHWASA Kahama Shinyanga Water Supply and Sanitation Authority

LG Local Government

LGAs Local Government Authorities

LLGs Lower Local Governments

LUWASA Lindi Urban Water Supply and Sanitation Authority

M&E Monitoring and Evaluation

MC Municipal Council

MCS Maji Central Stores


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MORUWASA MOU

Morogoro Urban Water Supply and Sanitation Authority Memorandum of Understanding

MoW Ministry of Water

MTEF Medium Term Expenditure Framework

NAWAPO National Water Policy

NP National Project

NPs National Projects

NWSDS National Water Sector Development Strategy

O&M Operations and Maintenance

OVC Orphans and Vulnerable Children

PMU Programme Management Unit

PS Permanent Secretary

RAP Resettlement Action Plan

RPF Request For Proposal

RS Regional Secretariat

RSs SWAP

Regional Secretariats Sector Wide Approach to Planning

RUWASA-CAD Rural Water Supply and Sanitation Capacity Development

RWSS Rural Water Supply and Sanitation

RWSSP Rural Water Supply and Sanitation Programme

RWST Regional Water and Sanitation Team

TB Tender Board

TC Town Council

ToRs Terms of Reference

UWSA Urban Water and Sewerage Authority

VFM Value for Money

WASH Water Sanitation and Hygiene

WB World Bank

WDMI Water Development and Management Institute

WDMI Water Development and Management Institute

WRM Water Resources Management

WRMA WSWG

Water Resources Management Act Water Sector Working Group

WSDP Water Sector Development Programme

WSSAs Water Supply and Sanitation Authorities


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CHAPTER 1: INTRODUCTION

1.1 Background

The Ministry of Water (MOW) is implementing a Water Sector Development Programme (WSDP) in a phased approach from 2006–2025, with phase 1 having been extended from June 2012 – 2014. The WSDP is a consolidation of three sub-sector programmes, namely: Water Resources Management; Rural Water Supply and Sanitation; and Urban Water Supply and Sewerage, since 2007. The programme includes also strengthening and building capacity of sector institutions to effectively support implementation of the WSDP. The WSDP is being implemented through a Sector Wide Approach to Planning (SWAP), to minimise overlaps and duplication of efforts in water resources management and development, as well as in water supply and sanitation service delivery. Unlike in the past where water sector activities were implemented through discrete projects and sub-programmes in selected areas, this programme is simultaneously implemented in all Local Government Authorities (LGAs), Basin Water Offices (BWOs), and invariably all Water Supply and Sanitation Authorities (WSSAs) in the country. The Memorandum of Understanding (MOU) signed between the Government of the United Republic of Tanzania (GoT) and Development Partners (DPs) contributing to the Water Sector Basket Fund as well as the Programme Implementation Manual (PIM) provides for the Government to facilitate the carrying out of and annual technical audit (value for money, procurement and safeguards) by an independent consultant under terms of reference that are acceptable to the WSWG and DPs. The MOU further provides that the independent consultant be appointed through a competitive process in accordance to the procedures set forth in the MOU and the Programme Implementation Manual. It is in this aspect that M/s UPIMAC Consultancy Services has been procured to undertake the audit. In addition, the Technical Audit Report is to be submitted by MOW to the Development Partners no later than six months after the end of the fiscal year to which the report relates. The first technical audit covering the fiscal years 2007/08, 2008/2009 and 2009/2010 was completed in December 2010. However, the report resulting from this assignment is rather late and will cover FYs 2010/11 and 2011/12.

1.2 Objectives of the Technical Audit

The overall objectives of carrying out a Technical Audit are to assess the performance of the WSDP funded projects and whether they conform to MOU and Implementation Manual and identify any overlaps and duplication of efforts in all sub-sector programmes and activities in order to: i) determine whether the allocated resources are being spent cost-effectively and for the

intended purpose by all implementing agencies (IAs) including MOW and its Agencies ; ii) assess compliance of implementation of the programme activities to provisions of the

Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF); review a list of category A projects and adequate implementation of ESIA/ESMP and RAP in line with the WB safeguard policies;


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iii) review adherence to the agreed procurement procedures and processes and value for money aspects, including training and capacity building activities, as well as the outcome of procurement processes and whether these constitute value for money;

iv) assess the performance of each implementing entity (IE), identify the underlying reasons in case of under-performance or non-compliance; and

v) Recommend appropriate mitigation measures that need to be taken.

1.3 Scope of Work

The Consultant will make all necessary arrangements to provide a professional opinion on the cost-effective and compliance to agreed WSDP implementation and funds utilization. Against this background, the Consultant has suggested any necessary revision and/or amendment of these TOR to provide a professional opinion. The Consultant has put in place all organizational and logistical arrangements ready to implement this assignment. The consultant has reviewed the project implementation plan, procurement plan, Interim Financial Report, etc. to check the planning, budgeting, procurement, financial management procedures and propose any remedial measures. The consultant has also reviewed the results framework, monitoring & evaluation methodologies, and outcome/output indicators as well as the actual project performances. The Consultant has taken into account technical audit results of the WSDP technical audit for the three fiscal years 2007/08, 2008/09 and 2009/10, the CAG Special Audit Report and Financial Audit Reports, as well as any other relevant fiduciary and safeguard related reports. The Consultant has paid particular attention to those areas which have been identified as weak or risk areas in the audit reports. The review will cover: (i) MoW and its Agencies (Drilling and Dam Construction Agency-DDCA, Maji Central Store, and Water Resources Development Institute-WRDI), and DAWASA; (ii) not less than 20% of RSs, BWOs, NPs and Regional WSSAs; and (iii) not less than 10% of LGAs District towns and Other Small Towns WSSAs. For each of the selected Implementing Agency (IA), the audit will cover a minimum of 20% of transactions/contracts executed during the FY 2010/11 and 2011/12. The consultant is aware that the percentage may be increased relative to number of transactions or contracts executed during the period under review. For instance, where a number of transactions/contracts are less than five, all of them will be reviewed. The Consultant has taken a sample from: 132 LGAs, 9 BWOs, 19 Regional WSSAs, 109 District and other small town WSSAs, 21 RSs and 7 NPs. The Consultant is to assess training and capacity building activities financed and implemented under component 4 “institutional development and capacity building” or under the components 1, 2 or 3 of WSDP. In addition, the Consultant is to assess if the financing of any kind of allowances was in conformity with defined WSDP and Tanzanian rules/regulations as well as relevant Financing Agreements. The Consultant is to provide a sound professional judgment if expenditures for capacity building, training, workshops, seminars and related allowance payments were cost-effective and in conformity with existing rules and regulations and recommend where necessary revisions to WSDP guidelines or rules. The technical audit is to provide a professional assessment on the proper use and justification of the financing of “incremental operational costs” using both GoT and the


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Basket Funds in the framework of the WSDP. The Consultant will analyze the various incremental costs where appropriate and determine what actually should be considered as incremental costs. The Consultant shall visit sites and shall contact relevant persons to verify the level of physical completion, quality of works, standard of materials used, and where appropriate the level of community engagement and management capacity, and note any other characteristic relevant to establish a value for money assessment for the selected sample representing WSDP activities. Specifically, the technical audit is going to cover all aspects/components of the WSDP, addressing the following three thematic aspects: Value for Money Assessment

i) Review the physical and financial progress and identify any incompatibilities, reasons thereof and suggest any remedial measures;

ii) Assess the appropriateness of both the contract prices for consultancy services as well

as of the designs prepared for both rural and urban settings; iii) Assess the appropriateness of the contract price to the works and goods as per

designs and specifications; iv) Assess the project preparation / design process against professional standards

(planning and technical expertise involved, participation of relevant stakeholders, conformity with relevant strategies, plans and policies);

v) Assess the appropriateness of selected technologies in urban and rural water supply

schemes in terms of (i) cost effectiveness, (ii) beneficiaries consultation for design selection and financial/in-kind contribution to investment/O&M costs, and (iii) sustainability of invested schemes;

vi) Assess the quality of operation and maintenance and its impact on sustainability; vii) Assess conformity of construction work to the design and specification; viii) Assess the value of works as contracted and the value of works actually executed; ix) Assess the quality of completed works; x) Assess quality of community mobilisation and training, and arrangements for

operation and maintenance and their adequacy for sustainable services delivery; xi) Assess the effectiveness of supervision by the Consultants, and the Implementing

Entities and where appropriate by the Communities; xii) Regarding the assessment of technical assistance, training and other forms of capacity

building measures the Consultant will assess if the provided training and/or capacity building measure was in conformity with existing job descriptions and defined functions of the respective staff. This assessment will include the judgement on the


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cost-effectiveness (Where there are better options to provide such training or to access the required expertise).

xiii) Review the overall planning, budgeting and fund release procedures as well as actual

performances. Propose any remedial measures to tackle bottlenecks. xiv) Review the effectiveness of the results framework, M&E procedures and

outcome/output performance indicators as well as their use for actual investment planning.

xv) Assess the accuracy of the list of signed contracts, the contract prices (including

Addenda), adherence to payment schedule as well as payment status in comparison with procurement and financial management related reports.

Procurement Assessment

Procurement audit will focus on both elements which have not been a subject of “prior review” and those which have been subject to “prior review” and should cover the following:

i) Verify adherence to the WSDP procurement procedures and processes and value for money aspects. In this regard, verify the procurement and contracting procedures and processes followed by the implementing entities in order to determine whether the procurement and contracting arrangements were carried out in accordance with Government Procurement Act. (2004) and its provisions and the WSDP PIM;

ii) Provide a professional opinion on compliance with the general guiding principles of

economy and efficiency, equal opportunities, transparency, fairness and verify technical compliance, physical completion and price competitiveness (value for money) of each contract in the selected sample, and whether these processes resulted in cost effective procurement of quality goods and services. Assess if the WSDP unit costs for works, goods and consultancies were competitive and justified (also against those occurring in a similar context of other MDAs);

iii) Review the process and criteria used to award contracts under the WSDP and verify

whether approval by relevant authorities was sought and secured; contract execution was adequately monitored and goods were supplied in the right quantities and as per specifications, works completed according to the technical standards using specified materials, and consultants’ outputs delivered timely and are of adequate quality and are commensurate with the contract price paid to consultants;

iv) Review all contract variations to ascertain approval by relevant authorities and

adherence to agreed procedures;

v) Review relevant invoices/fee notes received and approved from suppliers and scrutinise relevant contract records;

vi) Review the conformity of the tender board in terms of composition and adherence to

defined tendering procedures;


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vii) Review the capacity of implementing entities to carry out procurement and to manage contracts in line with defined rules and professional standards. Comment on the quality of procurement and contracting and identify reasons for delays, if any. Determine whether adequate systems are in place for procurement planning, implementation and monitoring. Verify whether documentation is maintained as per required standards;

viii) Validate mitigation measures recommended during assessing the capacity of the

implementing entities to carry out procurement and confirm mitigation measures taken;

ix) Provide a professional opinion on the overall procurement performance at the central

(MoW, DAWASA) and other IAs; and

x) Review the overall preparation, updating and monitoring of the Procurement Plan in coordination with the planning, budgeting, Work Plan and fund transfer processes.

Safeguards Assessment

i) Assess the preparation and implementation of environmental mitigation measures and

the extent to which environmental and social impacts of civil works executed are monitored as outlined in the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF);

ii) Assess the quality, compliance, and timeliness of the preparation and execution of the Environmental and Social Impact Assessment (ESIA) Reports and the Environmental and Social Management Plans (ESMPs) as well as Resettlement Action Plans (RAP) for category A sub-projects that have been prepared and implemented (or being implemented) in line with the World Bank safeguard policies.

ii) Assess relevance and appropriateness of programme financed interventions to the

beneficiaries/communities/schools in addressing priority needs and alleviating water and sanitation problems of each respective community;

iii) Assess the beneficiaries’ perceived benefits and satisfaction derived from the WSDP

supported investments; iv) Assess the extent to which beneficiary communities interact with implementing

entities during preparation and implementation of WSDP supported measures/projects and the extent to which these interactions have impacted on improvements and sustainability of services;

v) Assess the ability and willingness as well as status of actual contribution of beneficiary

communities to; (i) contribute in cash and in kind towards construction of their water supply facilities, (ii) pay for the water and sanitation to cover O & M costs of their facilities and (iii) affordability of the water supply and sanitation service for the poor ;

vi) Assess beneficiaries’ involvement/participation in concept, design, construction and

management of their water and sanitation sub-projects.


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CHAPTER 2: APPROACH AND METHODOLOGY

2.1 Technical Approach

Our understanding of the technical audit is that the assignment will cover key areas such as: procurement assessments, value for money assessment and safeguards assessment. Procurement assessment will test application of the basic principles of procurement and disposal; selection methods of procurement and management of the procurement requisition and approval; invitation for solicitation, evaluation process; selection for award; contract approval and management; procurement documentation including bidding documents and contract documents; monitoring, control and transparency covering such issues as confidentiality, ethics and conflict of interest; antifraud and anti-corruption; post review and audit, protest and complaint process as well as procurement reporting. The approach will be to focus on the technical, financial and social aspects of each of the sampled contracts with the intention of measuring their value generating capacity under the headings of economy, efficiency, effectiveness and social safeguards i.e. the four (4) Es which define Value for Money. Financial audit will be guided further by the Finance and Accounting Regulations of Government. Value for Money Audit will focus on financial issues, costs and savings plus considering such issues like quality, technical aspects of the service and value. Value for Money (VfM) is about providing economic inputs into an efficiently organized system or structure for producing effective services. Therefore, with increasing demand for accountability coupled with increasing resource constraints, the need to account to the public that funds have been spent for the purpose it was intended for becomes inevitable and hence the need for VfM assessment. The value for money approach will involve an analysis of objectives of each contract and the inputs which should lead to conclusion on economy; then the approach will look at the link between inputs; processes and outputs which analysis should determine efficiency, analyze the entire process up to achievement of outcomes which then determines the effectiveness and finally an analysis of social safeguards issues or concerns on each of the sampled investments. In undertaking this assignment, the Consultant will adopt a participatory approach involving consultations and constructive engagement with all key stakeholders at all levels namely; officials from MoW including the staff of WSDP, MoF, sector ministries, Council, Ward and Village/Mtaa Officials and elected representatives, beneficiaries, community members, private sector providers and any other relevant persons identified during the progress of the assignment. The approach will ensure assessment of ownership, general understanding of the processes, roles and relationships, perceptions as a basis for improving coordination and achievement of the WSDP objectives. This participatory and consultative approach will ensure effective communication with all the stakeholders at all levels especially the ministry of water and irrigation at the centre and implementing agencies at the lower level. We shall build team spirit to achieve common understanding of the assignment at hand, emphasizing the roles and responsibilities of each


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and having regular communication and sharing of findings, transfer of knowledge through sharing as well as receiving and jointly agreeing on programmes of work. Generally, the approach to undertaking the audit will be outlined in the Notification of Audits, which shall be sent in advance to the auditees. The above approach to VfM assessment should lead the Consultants to identifying weaknesses in the way present procedures are applied and be able to provide recommendations and way forward. The approaches suggested above recognize international best practices as enshrined in the Governments own laws, procedures and regulations regarding procurement of goods and services where the following key principles are followed:

- Ethics and fair dealing - Accountability and transparency - Equity or social safeguards - Fair competition and; - Value for money

Proposed Audit Sample: The consultant, according to ToRs will sample 20% of RS, BWOs and Regional WSSAs and 10% of LGAs and district towns and Other Small Towns WSSAs. The sampling criteria at this level will include geographical coverage, programme component coverage and comprehensiveness of the ToRs. Other consideration include; contiguity – the consultant has ensured that neighbouring IAs are scheduled in the same cluster for the purpose of easing accessibility and saving on movement time between IAs, and cost effectiveness – to minimize costs, the consultant has scheduled IAs paying attention to their proximities for ease of access. For each selected entity or agency the audit will cover a minimum of 20% of transactions/contracts executed in any of the financial years where an IA was not audited, sampling of contracts will go beyond the stated two (2) FYs to include prior contracts to FY 2010/11. The sampling criteria for the individual contracts sampled will include; type and nature of investment undertaken, on-going and completed projects, size of the budget, targeted number of beneficiaries, mode and level of procurement, performance under previous audit and rural/urban set up and value for money. The Consultant in Table 1 below has proposed the number of entities to be sampled for audit the details of which are presented forthwith.


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Table 1: Proposed Audit Sample

Entity Numbers Nationally

Proposed number for Auditing

RSs 21 6

BWOs 9 2

NPs 7 2

Regional WSSAs 19 5

LGAs 132 14

DUWSAs 109 12

TOTAL 297 41

The Consultant will also cover MoW and its agencies; Drilling and Dam Construction Agency – DDCA, Maji Central Store, and Water Resource Development Institute – WRDI, and DAWASA plus the sampled entity. Tables 2 to 7 below indicate the sample space for all entities from which the sample is selected. Table 2: Regional Secretariats

No. RS No. RS No. RS

1 Arusha 8 Kilimanjaro 15 Mwanza

2 Coast 9 Lindi 16 Rukwa

3 Dar es salaam 10 Manyara 17 Ruvuma

4 Dodoma 11 Mara 18 Shinyanga

5 Iringa 12 Mbeya 19 Singida

6 Kagera 13 Morogoro 20 Tabora

7 Kigoma 14 Mtwara 21 Tanga

Table 3: LGAs

No. LGA No. LGA No. LGA 1 Longido DC 45 Korogwe DC 89 Musoma DC

2 Meru DC 46 Korogwe TC 90 Musoma MC

3 Arusha DC 47 Lushoto DC 91 Tarime DC

4 Arusha MC 48 Muheza DC 92 Rorya DC

5 Ngorongoro DC 49 Mkinga DC 93 Serengeti DC

6 Karatu DC 50 Tanga CC 94 Bunda DC

7 Monduli DC 51 Pangani DC 95 Sumbawanga DC

8 Hai DC 52 Manyoni DC 96 Sumbawanga MC

9 Moshi DC 53 Singida DC 97 Mpanda DC

10 Moshi MC 54 Singida MC 98 Mpanda TC

11 Rombo DC 55 Iramba DC 99 Nkasi DC

12 Mwanga DC 56 Sikonge DC 100 Ileje DC

13 Same DC 57 Igunga DC 101 Mbozi DC

14 Siha DC 58 Nzega DC 102 Mbeya DC

15 Kiteto DC 59 Tabora DC 103 Mbeya CC

16 Babati DC 60 Tabora MC 104 Rungwe DC

17 Babati TC 61 Urambo DC 105 Kyela DC

18 Hanang DC 62 Shinyanga DC 106 Chunya DC

19 Mbulu DC 63 Shinyanga MC 107 Mbarali DC

20 Simanjiro DC 64 Bukombe DC 108 Makete DC

21 Kondoa DC 65 Kahama DC 109 Mufindi DC

22 Chamwino DC 66 Maswa DC 110 Kilolo DC

23 Kongwa DC 67 Bariadi DC 111 Iringa DC


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24 Mpwapwa DC 68 Meatu DC 112 Iringa MC

25 Bahi DC 69 Kishapu DC 113 Njombe DC

26 Dodoma MC 70 Bukoba DC 114 Njombe TC

27 Kilosa DC 71 Bukoba MC 115 Ludewa DC

28 Morogoro DC 72 Karagwe DC 116 Songea DC

29 Morogoro MC 73 Muleba DC 117 Songea MC

30 Mvomero DC 74 Biharamulo DC 118 Mbinga DC

31 Kilombero DC 75 Misenyi DC 119 Namtumbo DC

32 Ulanga DC 76 Ngara DC 120 Tunduru DC

33 Kinondoni MC 77 Chato DC 121 Kilwa DC

34 Temeke MC 78 Kibondo DC 122 Liwale DC

35 Ilala MC 79 Kasulu DC 123 Lindi DC

36 Bagamoyo DC 80 Kigoma DC 124 Lindi MC

37 Kibaha DC 81 Kigoma/Ujiji MC 125 Nachingwea DC

38 Kibaha TC 82 Geita DC 126 Ruangwa DC

39 Kisarawe DC 83 Sengerema DC 127 Masasi DC

40 Mkuranga DC 84 Misungwi DC 128 Newala DC

41 Rufiji DC 85 Kwimba DC 129 Tandahimba DC

42 Mafia DC 86 Magu DC 130 Nanyumbu DC

43 Handeni DC 87 Mwanza CC 131 Mtwara DC

44 Kilindi DC 88 Ukerewe DC 132 Mtwara-Mikindani MC

Table 4: DUWASAs & Small town WSSA

No. Authorities No. Authorities No. Authorities

1 Babati 38 Kiomboi 75 Mvomero

2 Bahi 39 Kisarawe 76 Mwanga

3 Bariadi 40 Kongwa 77 Nachingwea

4 Bukoba 41 Korogwe 78 Namanyere

5 Bunda 42 Kyela 79 Namtumbo

6 Chamwino 43 Lamadi 80 Nansio

7 Chato 44 Lindi 81 Nanyamba

8 Chiwambo 45 Liwale 82 Ngara

9 Chunya 46 Longido 83 Ngorongoro

10 Gairo 47 Ludewa 84 Ngudu

11 Geita 48 Lushoto 85 Njombe

12 Hanang 49 Mafia 86 Nkasi

13 Handeni 50 Mafinga 87 Nzega

14 Himo 51 Magu 88 Orkusmet

15 Ifakara 52 Mahenge 89 Pangani

16 Ikwiriri 53 Makambako 90 Rufiji

17 Ilula 54 Makete 91 Rujewa

18 Iramba 55 Malampaka 92 Same

19 Isaka 56 Mangaka 93 Sengerema

20 Itumba-Isongole 57 Manyoni 94 Serengeti

21 Kahama 58 Masasi 95 Sikonge

22 Karagwe 59 Masoko 96 Simanjiro

23 Karatu 60 Mbalizi 97 Singida

24 Kasulu 61 Mbinga 98 Songe

25 Kasumulu 62 Mbozi 99 Sumbawanga

26 Katesh 63 Mbulu 100 Tarime

27 Kibaigwa 64 Mhunze 101 Tukuyu


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28 Kibaya 65 Mikumi 102 Tunduma

29 Kibiti 66 Misungwi 103 Turiani

30 Kibondo 67 Mkuranga 104 Ukerewe

31 Kigoma 68 Mlowo 105 Ulanga

32 Kilindi 69 Mombo 106 Urambo

33 Kilindoni 70 Monduli 107 Urkesumet

34 Kilolo 71 Mpanda 108 Ushirombo

35 Kilombero 72 Mugumu 109 Vwawa

36 Kilosa 73 Muheza

37 Kilwa 74 Musoma

Table 5: Basin Water Offices

No. BWO No. BWO No. BWO

1 Wami/Ruvu Basin 4 Lake Victoria Basin 7 Internal Drainage Basin

2 Pangani Basin 5 Lake Tanganyika Basin 8 Ruvuma Basin

3 Rufiji Basin 6 Lake Nyasa Basin 9 Lake Rukwa Basin

Table 6: Urban Water and Sewerage Authorities No. UWSA No. UWSA No. UWSA

1 Bukoba UWSA 8 Tanga UWSA 15 Sumbawanga UWSA

2 Musoma UWSA 9 Kigoma UWSA 16 Mbeya UWSA

3 Mwanza UWSA 10 Tabora UWSA 17 Lindi UWSA

4 Moshi UWSA 11 Singida UWSA 18 Songea UWSA

5 Arusha UWSA 12 Dodoma UWSA 19 Mtwara UWSA

6 Shinyanga UWSA 13 Morogoro UWSA 20 DAWASA/DAWASCO

7 Babati UWSA 14 Iringa UWSA

Table 7: National Projects

No. NP No. NP

1 Makonde 5 Chalinze

2 Handeni Trunk Main 6 Wanging’ombe

3 Mugango/Kiabakari 7 KASHWASA

4 Maswa

The proposed sample will cover 41 entities plus all agencies. The Consultant will use 4 teams to undertake the audit 3 of which will cover entities outside Dar es Salaam. Each team will spend 2 days to cover an entity depending on the nature, size, complexity and geographical location of the investment sampled. Team 4 will be based in Dar es Salaam and will sample Ministry of Water Division/Departments and Water Resource Management Institute Dar es Salaam. Below are the proposed 41 entities to be sampled;

1. Regional Secretariats 1) Kagera 2) Mwanza 3) Kilimanjaro 4) Tanga 5) Lindi 6) Coast


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2. Basin Water Offices

1) Internal Drainage Basin Water Office 2) Rufiji Basin

3. Urban Water & Sewerage Authorities

1) Tanga UWSA 2) Lindi UWSA 3) Bukoba UWSA 4) Mwanza UWSA 5) DAWASA

4. National Projects

1) Handeni Trunk Main 2) Maswa National Project

5. District Urban Water Supply Authorities

1) Nansio DUWSA 2) Ngudu DUWSA 3) Mhunze DUWSA 4) Himo DUWSA 5) Mwanga DUWSA 6) Mombo DUWSA 7) Korogwe DUWSA 8) Handeni DUWSA 9) Kilwa DUWSA

10) Masoko DUWSA 11) Korogwe DUWSA 12) Mkuranga DUWSA

6. Local Government Authorities

1) Bukoba MC 2) Bukoba DC 3) Sengerema DC 4) Mwanza CC 5) Maswa DC 6) Moshi MC 7) Moshi DC 8) Same DC 9) Tanga CC 10) Lindi MC 11) Rufiji DC 12) Kisarawe DC 13) Kibaha TC 14) Bagamoyo DC


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2.2 Methodology

The proposed methodologies have been derived from the understanding of the terms of reference, our experience on similar assignments and knowledge of the local environment under which the projects for audit are implemented. In addition, the methodologies are also informed by internationally acceptable best practices for undertaking technical audits. Meetings: Various meetings will be held before, during and after completion of field work;

(i) Preparatory Meeting At the commencement of the assignment, the Consultant will hold a meeting with the client to harmonize the understanding and coordination of the assignment. The meeting will involve MoW headed by the Director Programme Coordination Unit as the supervisor of the assignment. The Consultant has provided a list of documents required to start the assignment.

(ii) Progress Meetings The Consultant will present to the client progress reports and draft report on the conduct of the assignment highlighting any emerging issues that require real-time actions if any.

Literature Review: Review of documents will be a continuous process and will involve but not limited to the following key documents;

List of documents to be reviewed

Project Appraisal Document, Internal audit guide for LGA/CMO auditors, Project Implementation Plan, Financial Management Manuals, WSDP I Operational Manual for components I,II,III,IV WSDP I Implementation and Operations Guide DCA, revised MoU between the DPs and GoT. WSDP Procurement Plan WSDP Environmental and Social Management Framework Water Sector Status Reports Public Finance Act 2001 Public Procurement Act 2004 WSDP Internal Audit Reports WSDP Financial Audit Reports Mid Term Review Reports Water Resources Management Act 2009 WRM Act 2009 The Energy and Water Utilities Regulatory Authority Act Cap. 414 LG Authorities (Urban) Act No.7 (1987) LG Authorities (District) Act No.8 (1987) LG Authorities (Finance) Act No.9 (1987) The Dar es Salam Water and Sewerage Act No.20 (2001) The Environmental Management Act No. 20 (2004) Water Supply and Sanitation Act No. 12 (2009) Land Legislation.


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In addition to the list of documents above, the Consultant will require the following key infrastructure documents

- WSDP technical audit for 2008/9 and 2009/10 - Annual WSDP reports - List of funded projects - Contract documents for sampled projects - M&E Reports - Financial reports - Project implementation plan - Progress and Annual reports - Annual audit results for two FYs - Detailed accounts for funds transferred received and accounted for

At project level, the following documents/information will be needed:

- Service provision Agreements - List of project staff especially coordinators - Tender documents for sampled projects - Evaluation reports for each sampled project - Complete set of contract documents including financial and technical proposals - List of committee members at facility level where applicable

Data Collection Tools: The Consultant will use key study tools in conducting the technical audit of the sampled investments attached as Annex 6.2. The tools will cover data collection areas such as planning, financial or technical areas of investment such as springs, dams, buildings etc. Technical Audit: This constitutes the main work of the audit and it will be based on site visits to the agencies and sampled projects. The Consultants will use focused group discussions with auditees especially facility management committees at community level, structured interviews with key staff for the agencies implementing the projects and ministry programme staff. The Consultant will sample and review contract documents, procurement documents at project and agency level. Under technical audit, the main areas will be assessed namely; procurement, value for money and safeguards. Site visits will be carried out and physical inspection of facilities undertaken. A range of activities will be carried out and will include:

- Tender Boards (TBs) and Procurement Management Units will be reviewed and their respective capacities assessed. Therefore, the role of implementing agencies will be reviewed;

- Assess whether IAs prepare Annual Procurement Plans and follow them in undertaking procurement activities if not why;

- Assessing whether relevant approvals were secured from the appropriate authorities and whether they were respected. Special reference will be made to the relevant laws, regulations and manuals for purposes of cross checking;

- Determining whether proper terms of reference for each contract were prepared and by the right technical persons. Check whether the TOR were obtained from the PRRA in accordance with PPA 2004;


Inception Report 14

- Checking whether proper bidding documents were used in each procurement including checking the method used in procurement and if the evaluation criteria was fair and competitive;

- Determining whether there was transparency and fairness in the entire procurement process by checking whether;

Tenders were advertised

Queries were responded to

Enough time was provided to bidders to prepare and submit their bids.

- Checking whether the procedure for receiving and opening tenders was transparent including the handling of tender documents

- Checking whether negotiations were conducted in accordance with the PPA 2004 and its regulations, letters of awards were issued by a competent authority and if copies of the contracts were signed by a competent authority

The Consultant will also check if copies were sent to the appropriate authorities as required;

- Checking whether tender evaluations were conducted in accordance with the evaluation criteria specified in the bidding documents and if the decision of the tender boards were appropriately implemented;

- Checking whether the submissions of reports to PPRA as well as other relevant information are in accordance with the PPA 2004 and its regulations PPR, 2005;

- The Consultant will verify whether goods and services were supplied or provided according to the required specifications and technical standards;

- Then the Consultant will assess the efficiency of contract administration focusing particularly on the:

Quality control

Price fluctuations

Time overruns

Contract addenda

Dispute resolution

Payment delays -checking the cost of tendering for each contract including:

The cost of preparing tender documents

Sitting allowances of Tender boards

Income secured for the sale of tender documents and lastly;

Advertisement costs The Consultant will fully assess the implementing agencies capacities against set procurement standards for each of the procurements and examine the internal control measures in place and make appropriate recommendations where necessary The Consultant will note such weak areas as:

- Poor record keeping and therefore lack of appropriate documents - Absence of procedures among PMU staff and other key officials - Commencement of contracts before securing formal approvals and putting the

agency and contractors at risk - Unauthorized signatures and therefore unauthorized payments - Mix-up of duties, roles and responsibilities - Poor minuting and records keeping - Poor or lack of display of tender documents as required in LGAs


Inception Report 15

- Corruption tendencies and un-authorized payment methods The Consultant will test whether the regulations, procedures and practices have been applied as required. Value for Money Analysis of Sampled Investments The consultant in determining Value for Money, reference will be made to factors namely; objectives, impact, outputs, inputs and activities. Value for Money will be determined by independently assessing the extent to which an IA/IE operated efficiently, effectively and with due regard to economy taking into consideration equity/social safeguards factors. The following figures will be compiled, for each of the investments sampled for the audit:

1. Budget Cost (BC) - the amount that appeared in the MTEF Budget, or the Engineer’s Estimate;

2. Contract Price (CP) - the amount which defined the financial consideration or award cost; and

3. Actual Cost (AC) - the final total amount paid for the construction/investment including addenda or Variations approved.

Economy (E1) Economy is concerned with minimising the cost of resources used for an activity, having regard to appropriate quality; the Consultant will capture information on the actual and budgeted cost where ever the information will be available. The scoring for each investment for Economy will be subjected to the following evaluations:

Economy Score Economy Tests

BC/AC % CP/AC %

Best (3) More than 95% More than 95%

Good (2) >85 – 95 % >85 – 95%

Fair (1) 75 – 85% 75 – 85%

Poor (0) <75% <75%

Efficiency (E2) Efficiency relates to the process through which a project/ activity/ investment underwent and is defined within five stages/processes detailed below. (i) Planning and Approval Process; The Consultant will review the IA’s or IE’s approved Development Plans to assess whether the implemented investments were identified / conceptualized involving beneficiary communities in accordance with budgeting and planning procedures as the case may be. (ii) Procurement Process; The procurement process applied for each sampled project/investment will be reviewed including: Advertisement / Notification; tender documentation; Evaluation; and other relevant auditable records up to the awards and /or termination of contracts.


Inception Report 16

(iii) Implementation Process; Site visits will be conducted for sampled projects to check on the quality of works, workmanship, assess the level of supervision and monitoring; quality control measures; and existence of reports on progress of work to assess the supervision capacity both for urban and rural settings. (iv) Payment Process (Financial Management); The Consultant will review documents, receipts; allocations, disbursement and accountability of funds under the program and assess whether the payment process was in accordance with financial and accounting regulations of the IA/IE. (v) Commissioning / Handover Process and sustainability concerns; A check will be done on whether final inspections were made for completed works and whether the works were publicly handed-over as a way of promoting transparency and accountability and hence community ownership. Ascertain whether sustainability issues have been properly addressed and the role of the beneficiaries. Each of the sampled projects will then be scored for the five processes above with each process earning 1 mark making a total of 5 marks. Each investment will be scored as having 0, 1, 2 or 3 points corresponding to poor, fair, good or best collectively for the five processes. Therefore the total score for efficiency will be converted to a possible 3 points. Effectiveness (E3) The effectiveness of a project/ activity/ investment will be determined on three parameters:

(i) Quality of Finished Works The Consultant will check whether standards / specifications were followed; check quality of materials and tests; and quality of workmanship.

(ii) Utilization of Finished project

An assessment of the investment usage will be done from site visits; if for example a water supply system was abandoned, therefore not effective and water supply functioning but water pressure is low and somewhat effective.

(iii) Maintenance Arrangements/ Considerations A field assessment of the condition of the investments to determine the level of maintenance arrangements in place such as replacement of faulty gate valves, grass cutting around the water facility etc will be made. A check will be made on O&M costs budgeted and executed for sampled investments.

Each of the sampled investments will then be scored for the three parameters above with each parameter earning 1 mark making a total of 3 marks. The effectiveness rating sores will be 0 for poor; 1 for fair; 2 for good; and 3 for best. Equity/Social Safeguards (E4) The equity or social safeguards level of an investment is determined by checking whether considerations of cross-cutting issues were put to consideration e.g. for the disabled (for buildings, consider ramps, for toilets, anchors); environmental assessments conducted, beneficiary communities involvement in project design, implementation; gender and Governance. In summary the following parameters shall be looked at:

Environmental aspects Gender issues


Inception Report 17

Beneficiary involvement as well land acquisition and compensation processes

Each of the sampled investments will then be scored for the three parameters above with each parameter earning 1 mark making a total of 3 marks. The social safeguards rating sores will be 0 for poor; 1 for fair; 2 for good; and 3 for best. Value for Money Rating This will be rated basing on 4 measures:

The quality of the investment arising out of the economy assessment; The efficiency with which projects were executed from planning, to implementation

through to post implementation including O&M and sustainability concerns; The extent to which the investment met its objectives (effectiveness). The equity / social safeguards considerations.

VfM will be computed according to the following formula:

VFM = E1 + E2 + E3 + E4, and is rated as 10 - 12 points = Best 7 - 9 points = Good 4 - 6 points = Fair 0 – 3 points = Poor

The maximum score for each of the four Es is out of 3. The maximum VfM score therefore will be 12. Table 8: A summary table for VfM Rating will be adopted as below:

Parameter Calculation Value

Maximum Value

Remarks

Economy Budget Amount = Contract Amount = Actual Cost = %ntage within Budget =

3

Efficiency Planning & Approval Process =

Procurement Process = Implementation Process = Payment Process = Hand-over Process =

3

Effectiveness

Quality of finished works =

Level of Utilisation = O&M (Sustainability) =

3

Equity / Social Safeguards

Environmental aspects

Gender

3


Inception Report 18

issues

Beneficiary involvement

VfM Total 12

A pronouncement for the VfM rating will thus be made basing on the ranges of scores above. Value for Money Analysis for CBG and Institutional Strengthening Activities Apply the same VFM formula as for projects/investments above with similar ratings. In particular; Economy (E1) Economy of capacity building activities is determined against the following:

planned and approved budget; actual expenditure; Items of expenditure (training materials, facilitation costs and participants’

allowances). Each activity is then scored as having 0, 1, 2, or 3 points corresponding to poor, fair, good and best .Therefore the total score for economy is out of a possible 3 points. Efficiency (E2) The efficiency of the CB activities is determined against the following;

Planning and Approval Process:

Capacity needs assessment / report

Allocation of capacity building grant

Capacity building schedule and budgets

Capacity activity profiles

Approval of capacity building activities Procurement Process for Capacity Building Activities

Advertisement / notification;

Tender documentation;

Evaluation; award;

Mode of implementation/facilitation Implementation Process

Notification of participants / communication;

Implementation / delivery of CB activity;

Participation in CB activities, number of participants, gender and environmental considerations, political leaders and technical staff, other interest groups

CB activity reports and their quality Financial Management / Payment Process

Review of documents, receipts;

Allocation, disbursement and accountability of funds under the program

Evaluation and Action planning

CB activity evaluation;

Action plan or mechanism for follow up activities


Inception Report 19

Each activity is then scored as having 0, 1, 2 or 3 points corresponding to poor, fair, good or best collectively for the five processes. Therefore the total score for efficiency should be out of a possible 3 points. Effectiveness (E3) The effectiveness of Capacity Building Activities should be determined on the basis of the following:

Benefits of the Capacity Building Activities in terms of enhanced functionality of the respective Units /Departments,

increased adherence to systems and regulations;

Improved planning, allocation, implementation and

Management of project resources. Existence of a follow-up mechanism for trainees or CB activity beneficiaries; Utilisation of retooling component/ items where applicable.

Each activity is then scored as having 0, 1, 2 or 3 points corresponding to poor, fair, good or best collectively for the three issues. Therefore the total score for effectiveness should be out of a possible 3 points. Equity / Social Safeguards (E4) The equity or social safeguards level of each activity is determined by checking whether:

Considerations of Gender, Environment, Youth, the disabled and disadvantaged were made.

Relevance and appropriateness of training intervention to the beneficiaries / communities.

Beneficiaries perceived benefits arising from the training. Each of the sampled training activity or re-tooling will then be scored for the three

parameters above with each parameter earning 1 mark making a total of 3 marks. The

social safeguards rating sores will be 0 for poor; 1 for fair; 2 for good; and 3 for best.

Value for Money Rating of Capacity Building Activities To determine the final Value for Money rating for each Capacity Building Activity, the rating for each in respect of efficiency, effectiveness, economy and equity/social safeguards is given a score as 3 for best, 2 for good, 1 for fair, and 0 for poor. Therefore a total maximum score will be 12. The final Value for Money rating of that CB activity is therefore based on the formula: VfM = E1 + E2 + E3 + E4, and will be rated as; 10 – 12 points = Best 7 – 9 points = Good 4 – 6 points = Fair 0 – 3 points = Poor A pronouncement on whether the activity achieved its intended purpose will be made with the respective backing. The Consultant will prepare an audit plan which will outline a structured approach to VfM assessment. The approach will ensure both a consistency approach across auditors employed and also ensure that all issues are fully covered including:

- A review of the physical and financial progress and identify and shortfalls, reasons thereof and suggest the way forward;


Inception Report 20

- An assessment of the appropriateness of the contract price to the works, goods and services as per design, specifications and standards

- An assessment of the project design process against profession standards, planning and technical expertise involved, participation of relevant stakeholders, conformity with relevant strategies, plans and policies

- An assessment of the conformity of construction work to the design and specifications;

- An assessment of the value of works as contracted and the value of works actually executed;

- An assessment of the quality of completed works; - An assessment of the level of involvement of the communities i.e. the quality

of community mobilization and training , and arrangements for operation and maintenance and their adequacy for sustainable service delivery;

- An assessment of the effectiveness of supervision by implementing entities, consultants and where necessary by the communities;

- A review of the provided training/capacity building activities its cost effectiveness and their conformity with existing job descriptions;

- A review of the overall planning, budgeting and fund release procedures against actual performances and providing a way forward where necessary;

- A review of the effectiveness of the results framework, monitoring and evaluation procedures and the outcome /output performance indicators as well as their application for actual investment planning.

Procurement Assessment The Consultant under this assessment will aim at determining whether the procurement processes that were applied on the project were transparent and accountable and whether they provide adequate competition and fairness to ensure cost effectiveness. The consultant will also review the individual investment budgets and work plans and relate them to the actual disbursements to ensure that there was no discrepancy among the unit costs that were used to prepare the tender documents to ascertain whether they were realistic given the market conditions at the time. The consultant will then assess whether the procedures in place were fully applied and whether or not through these processes the capital expenditures were incurred in a cost effective manner and also ascertain the base on which these costs were based at the design stages. Through physical inspections on sites, observations and interviews, the consultant will carry out qualitative and quantitative assessments analyze the data and information collected to obtain an opinion on each projects capital expenditure. The consultant will start with an assessment of procedures from the start and how they have evolved overtime and the implications on the investments under audit. The consultant will particularly audit the accounting and reporting arrangements in place by focusing on the quality of the reports and traceability of data like unit costs of infrastructure projects and capacity building. All sampled projects will be audited based on their tender and contractual documents, site observations and interviews. Specific activities under this assessment will include:


Inception Report 21

o Verification of adherence to the sector procurement procedures, the WSDP provisions and processes and the value for money aspects. The consultant will also determine whether procurement and contracting arrangements were carried out in accordance with the Government Procurement Act (GPA) 2004, World Bank Procedures, sector specific requirement etc. Obtain a professional opinion on compliance with the general guiding principle of economy and efficiency, fairness, transparency and price competiveness of each of the sampled contracts analyze the unit costs of works, goods and consultancies if they were competitive and fair. The consultant will then determine whether these processes resulted in cost effective procurement of goods and services and hence value for money.

o Audit the process and criteria for contract awards under the WSDP and verify whether appropriate approvals by a competent authority were obtained prior to contract execution and whether these contracts were properly managed and monitored as per specifications. The consultant will also inspect the quality of completed works and review consultant’s reports to see if they were supplied on time and the right quantities and standards.

o Assess how contracts were managed and if there were variations how was the approval handled in relation to the set procedures and what actually caused the variations

o Analyze the invoices/feed notes received and approved for payment o Review functionality and composition of PMUs and Tender Boards and

adherence to tendering regulations and procedures; review the process of developing a procurement plan.

o Undertake a review of the capacity of the implementing agencies to carry out procurement and manage contracts based on procedures and regulations. Assess whether adequate systems are in place to ensure planning, management and monitoring of contracts and ascertain whether proper book keeping is in place to safeguard the relevant documents

o Check if past recommendations on weak areas identified were implemented and if not why

o Then make an opinion on the overall procurement performance at all levels and determine the procurement risk rating since the last audit. Capacity gaps will be determined at all levels and appropriate recommendations on the way forward made.

Safe guards Assessment

The Social audit for all the sampled contracts will be conducted within a human rights and people centric perspective. The aim of this assessment will be to ascertain whether the design and implementation of the sampled projects took into account the necessary environmental and social safe guards at community level. The consultant is aware that the objective of these social safeguards is to promote peoples participation and ownership, prevent and mitigate undue harm to communities and their environment in the development process and will


Inception Report 22

therefore assess whether the planned and implemented projects under audit meet the social safeguards regarding the environment, natural habitats, forests and cultural resources, gender and beneficiary participation. The consultant in this assessment will attempt to ascertain whether the beneficiaries were provided a platform for participation in project design which is key in building ownership among local populations. The consultant will also establish whether the Environmental Impact Assessment (EIA) were carried out for the sampled projects as this guides decision making to ensure that project options under consideration are sound and sustainable and that potentially affected people have been properly consulted and issues of conflict especially on land have been properly addressed. The consultant will further establish whether cultural resources were carefully taken care of during design, implementation, and post implementation of projects. Cultural resources are important as sources of valuable historical and scientific information as assets for economic and social development and as integral parts of people’s cultural identity and practices hence project design and implementation should address such concerns. In addition, the consultant will take keen interest during this audit to establish if the implemented projects took into account the conservation of bio-diversity as well as the numerous environmental services and products which the rich natural habitats provide to local people. Safeguards for gender equity will also be addressed to ensure that People with Disability (PWD), Youth, and Women all have access to services, facilities and infrastructure created. From the above analysis, the consultant will among others address the following:

- The actual environmental and social performance of the sampled projects during design, construction and implementation to ascertain whether the recommended mitigation measures were put in place and whether this was not done, suggest remedial measures.

- The nature of the ESIA process whether participatory or not for each project undertaken plus the scope of the technical studies and processes adopted. How communication, dissemination and consultations were held. Whether the stakeholders especially Women, Youth, the disabled were involved. The role of LGs, Civil society and religious institutions will be analyzed as these normally act for and on behalf of the marginalized members of the community.

- The consultants will also establish whether specific social indicators of success were developed and are currently being used by the stakeholders for each of the projects. What procedures or arrangements are in place to assess the effectiveness of the project

- Establish whether the Information Education and Communication (IEC) activities have contributed towards the use of the provided water and sanitation services and whether these services have actually resulted in any impact on the hygiene behaviors among community members

- Establish whether the water and sanitation facilities are sustainable i.e. are the communities able to afford the cost and is Operation and Management (O&M) provided for? Are the facilities being utilized as envisaged? And are


Inception Report 23

they well maintained? Does the water facilities created satisfy the people’s needs in terms of service level?

- Are there clear arrangements for managing and maintaining the water facilities i.e. are there appropriate arrangements for hygienic use of the facilities and for future maintenance? Are services available in the community for O&M like minor repairs and supply of spare parts like pumps, bolts etc?

- What management structures, monitoring and evaluation mechanisms have been put in place to ensure that the created facilities are utilized for benefit of the community and are continuously improved? Are there mechanisms for securing or obtaining community views and feed back to ensure proper management of the facilities at community level? Who is involved? Are consumers/project beneficiaries involved?

- In ascertaining value for money, the consultant will further establish the link between payment of contracts at various levels of construction and certification of project deliverables.

- The consultant will also establish what reporting arrangements exist for Monitoring and Evaluation (M&E) of project effectiveness and ascertain whether lessons learnt are shared and fed into the design of current of future projects.

- Establish at facility level, what agreements are in place between the community members (users) and the relevant organizations e.g. WSBs.

- Establish the human capacity gaps as far as management of facilities are concerned and make appropriate recommendations to improve quality of service delivery.

- Presence of strong community structures to ensure that plant breakdowns like water pumps, taps etc and new connections or repairs are put in place. Assess the legal states of these community Committees, agreements in place regarding their operations e.g. WSBS.

- Analyze the impacts of resettlement and issue of conflict where applicable.

Reporting The consultant will prepare a report which will cover the key areas of audit namely; procurement assessment, value for money assessment and safeguards assessment and the report will include the following:

- A summary of findings, lessons learnt, conclusions and recommendations

- Detailed findings on procedures, processes, documentation for procurement and contracting

- Compliance with the various laws, regulations e.g. PPA 2004 - Key issues considered during the audit such as contract prices,

specifications and standards - Recommendations for improvements in weak areas identified - Actions on previous audit recommendations to date


Inception Report 24

Below is the proposed content list of the draft report as a major output of this assignment.

Table of Contents

List of Abbreviations Acknowledgements Definitions of Technical Terms Executive Summary Chapter 1: INTRODUCTION 1.1 Background 1.2 Assignments Objectives 1.3 Scope of Work 1.4 Tasks Chapter 2: ASSIGNMENT METHODOLOGY 2.1 Technical Approach 2.2 Methodology CHAPTER 3: TECHNICAL AUDIT FINDINGS 1.1 Value for Money Assessment

1.2 Procurement Assessment 1.3 Safeguards Assessment

CHAPTER 4: Outstanding Issues and Management Responses and Challenges Faced CHAPTER 4: CONCLUSION AND RECOMMENDATIONS 4.1 Conclusion 4.2 Recommendations Annexes


Inception Report 25

CHAPTER 3: WORK PLAN

The work plan has been derived from the analysis and understanding of the terms of reference, the approach and methodology for undertaking the assignment. The consultant has put into consideration the major activities to be undertaken namely;

i. Preparatory Activities Preparatory activities will include startup meetings with Ministry of Water (MoW) officials and WSDP staff; literature review, arranging for logistics and appointments both at the center and implementing agency level, finalizing and testing data collection tools, sampling of entities and field schedules to guide movement and generate the inception Report. This is expected to be concluded in the first two (2) weeks of commencement of the assignment.

ii. Field visits Technical audit is planned to be carried out over a period of 4 weeks. Four teams will be sent out in the field to carry out focus group discussions, structured interviews, and physical inspections and will comprise: a procurement specialist, water and sanitation engineer/water resource engineer, sociologist and environmentalist. The teams on a daily basis will relay data and information from the days’ work to the secretariat in Dar-es-salaam to allow for immediate data processing and analysis and validation on a cumulative basis. This will enable the secretariat to prepare for the generation of the draft report.

iii. Draft report Two weeks after fieldwork, the consultant will prepare and submit a draft report to the client. A review meeting will be organized with MoW to discuss the preliminary audit findings. Comments will be incorporated from the meeting and a stakeholder’s workshop organized 2 weeks after submission of the draft report. The draft report will summarize our findings.

iv. Stakeholders workshops After submitting the report to MoW, the consultant will expect the Ministry to circulate the report to all key stakeholders. The Consultant will prepare a presentation summarizing the findings for presenting to the stakeholders workshop. The consultant expects the participants to be drawn from the following:

- Ministry of Health and Education, PMO-RALG - Representatives of the DPs - WSDP officials both technical and financial managers - Implementing agencies and entities - Selected water sector based NGOs and - Selected community members drawn from selected facility management

committees The Consultant expects the client to arrange and finance the workshop and to send out invitations for participants. This activity will take place within 2weeks after submission of the draft report.


Inception Report 26

v. Final Report After the stakeholders’ workshop, the consultant will incorporate the comments and submit the final draft report to MoW. This activity will be done in one week after the stakeholders’ workshop. The consultant will then expect the client to approve the report in one week and a Final Report will be printed for final submission. From the focus group discussions, desk reviews, site visits and interviews under the key areas of technical audit. Recommendations, conclusions and lessons learnt will be included for improving the performance of the WSDP. Where necessary the consultant will suggest the best possible ways to address the weak areas. The report will outline the key strength and weakness under the current implementation arrangements and suggest ways of improvement so as to achieve the programme objectives, sector goals, MKUKUTA targets and the Millennium Development Goals (MDGs). The recommendations will also target the structures in place and how best to streamline the relationships, roles and responsibilities where necessary. Comment on the staff strength under the WSDP, Tender Board, Programme Management Units (PMUs) and where possible identify the capacity gap and make clear recommendations on how to address the gaps. All activities will be concluded within the specified timeframe of twelve (12) weeks as indicated in the ToRs. The workflow chart in Figure 1 below shows the activities to be undertaken, expected outputs and proposed dates.


Inception Report 27

Fig. 1: Work flow Chart

PREPARATORY ACTIVITIES

Meetings, Literature Review, Arrange

Logistics/Appointments, Collection of

key documents

TECHNICAL AUDIT

Visit relevant offices and carryout

interviews, hold meetings, visits

sampled investments and

communities

REPORT WRITING

Draft report, review meeting and Final

Report

Meetings with key Client

Inception Report

Field Visits/Physic Inspection

Stakeholder Workshop

Draft Report/ Technical

Review Meeting

Final Report

9rd Dec 2012 – 4

th

Jan 2013

19th Dec 2012

7th – 25

th Jan 2013

8th Feb 2013

13th Feb 2013

18th Feb 2013

Activities

Outputs Proposed Dates

IN

TE

RN

AL

QU

AR

IT

Y C

ON

TR

OL

AN

D A

SSU

RA

NC

E


Inception Report 28

CHAPTER 4: OUTPUTS

The Consultant understands that the main outputs for this assignment shall be: an Inception Report; a draft report on technical audit of agencies and entities for sampled contracts; presentation of findings to a stakeholders’ workshop and a final report after incorporating comments from the stakeholders workshop. The Consultant will submit ten (10) copies of each report as well as a soft copy on CD.

(a) Inception Report, is submitted within two (2) weeks of commencing the assignment and gives a brief outline of the methodology, detailed work plan and activity schedule, time schedule for visits to the selected entities, team composition and staff assignment, reporting schedule, tentative table of content of draft report and other key issues regarding the execution of the assignment;

(b) A Draft Report on technical audit in entities covering all issues described under the scope of work and tasks will be submitted within 9 weeks of commencing the assignment.

(c) Stakeholders Workshop will review the draft report and give comments in a one-day workshop.

(d) A Final Report on technical audit incorporating comments from the stakeholders’ workshop following their review of the draft report, will be submitted within five 12weeks of commencing the assignment.

(e) The Consultant shall submit ten (10) hard copies of each report as well as a soft copy on CD to the client.


Inception Report 29

CHAPTER 5: TEAM COMPOSITION AND TASK

ASSIGNMENT

5 Organization and Staffing

The Consultant has deployed a team that has the required skills to successfully deliver and meet the expectations of the client. Our team deployment is intended to ensure that the MoW receives quality and timely outputs and that all key stakeholders are adequately involved in the study. Local capacity building will be an integral part of the team deployment. Selection and deployment has been done in such a way that there is a reasonable mix of local and international consultants. The Consultant has deployed experts based on past experience of similar assignments and has accordingly deployed them to perform in areas of their skills and experiences. Shown in Figure 2 below is the proposed organization structure and staffing:

Fig. 2: Project Organization Structure

MOW

Team Leader

TEAM OF EXPERTS

2 Water and Sanitation Engineers 2 Procurement Specialists 2 Sociologists 2 Environmentalists 1 Water Resource Engineers 1 Statistician 1 Economist/Financial Analyst 1 Auditor/Performance Audit

Secretariat

UPIMAC BOARD


Inception Report 30

CHAPTER 6: ANNEXES

6.1: Schedules for Entities to be sampled

Team 1: Kagera RS, Bukoba UWSA, Bukoba MC, Bukoba DC, Nansio DUWSA, Ngudu DUWSA, Maswa NP, Maswa DC, Mhunze DUWSA and Wami/Ruvu Basin

Dates Region Entity Duration/ days

Sat 5th – Sun 6th Jan 2013 Travel 2

Mon 7th – Thu 10th Jan 2013 Kagera Kagera RS, Bukoba UWSA, Bukoba MC, Bukoba DC

4

Fri 11th Jan 2013 Mwanza Sengerema DC 1

Sat 12th – Sun 13th Jan 2013 Weekend 2

Mon 14th - Wed 16th Jan 2013 Mwanza Mwanza RS, Mwanza UWSA, Mwanza CC

3

Thu 17th Jan 2013 Mwanza Nansio DUWSA 1

Fri 18th Jan 2013 Mwanza Ngudu DUWSA 1


Mon 21th – Tue 22nd Jan 2013 Shinyanga Maswa NP, Maswa DC 2

Wed 23rd Jan 2013 Shinyanga Mhunze DUWSA 1

Thu 24th Jan 2013 Public Holiday 1

Fri 25th Jan 2013 Singida Internal Drainage Basin Water Office

1

Sat 26th Jan 2013 Travel to Dar 1

Total Days 22

Team 2: Kilimanjaro RS, Moshi MC, Moshi DC, Himo DUWSA, Mwanga DC, Same DC, Mombo DUWSA, Korogwe DC, Korogwe DUWSA, Handeni Trunk Main, Handeni DC, Tanga CC, and Tanga UWSA



Mon 7th – Wed 9th Jan 2013 Kilimanjaro Kilimanjaro RS, Moshi MC, Moshi DC

3

Thu 10th Jan 2013 Kilimanjaro Himo DUWSA 1

Fri 11th Jan 2013 Kilimanjaro Mwanga DC 1


Mon 14th Jan 2013 Kilimanjaro Same DC 1

Tue 15th Jan 2013 Tanga Mombo DUWSA 1

Wed 16th – Thu 17th Jan 2013 Tanga Korogwe DC, Korogwe DUWSA 2

Fri 18th Jan 2013 Tanga Handeni Trunk Main 1


Mon 21st Jan 2013 Tanga Handeni DC 1

Tue 22nd – Wed 23rd Jan 2012 Tanga Tanga CC, Tanga UWSA 2

Thu 24th Jan 2013 Travel to Dar 1

Total Days 20


Inception Report 31

Team 3: Lindi RS, Lindi MC, Lindi UWSA, Kilwa DUWSA, Masoko DUWSA, Rufiji Basin, Rufiji DC, Mkuranga DUWSA, Kisarawe DC, Kibaha TC, Bagamoyo DC, Coast RS and DAWASA/DAWASCO



Mon 7th – Wed 9th Jan 2013 Lindi Lindi RS, Lindi MC, Lindi UWSA 3

Thu 10th – Fri 11th Jan 2013 Lindi Kilwa DUWSA, Masoko DUWSA 2


Mon 14th – Tue 15th Jan 2013 Coast Rufiji Basin, Rufiji DC 2

Wed 16th Jan 2013 Coast Mkuranga DUWSA 1

Thu 17th Jan 2013 Coast Kisarawe DC 1

Fri 18th Jan 2013 Coast Kibaha TC 1


Mon 21st Jan 2013 Coast Bagamoyo DC 1

Tue 22nd Jan 2013 Coast Coast RS 1

Wed 23rd Jan 2013 Dar es Salaam

DAWASA/DAWASCO 1

Total Days 19

Team 4: Ministry of Water Division/Departments, Water Resource Management Institute Dar es Salaam, DPs, MoEVT, MoHSW, PMO-RALG and key stakeholders

Dates Entity/Division

Mon 7th Jan 2013 MoW Programme Coordination Team

Tue 8th Jan 2013 MoW - Water Resource division, Urban Water Supply & Sanitation Division, Rural Water Supply Division and component managers

Wed 9th Jan 2013 MoW - Policy & Planning Division, Safeguard Department and Procurement Unit

Thu 10th Jan 2013 MoW –

Fri 11th Jan 2013 Water Resource Management Institute Dar es Salaam, Drilling and Dam Construction Agency

Mon 14th Jan 2013 MoEVT, MoHSW and PMO-RALG

Tue 15th Jan 2013 Development Partners (World Bank and water sector working group chair)

Wed 16th Jan 2013 Focus Group Discussion – key stakeholders


Inception Report 32

6.2 Data Collection Tools


MINISTRY OF WATER

Technical Audit of the Water Sector Development Programme for FYs 2010/11 and

2011/12

– Field Data guide

A: Key Definitions

Technical Audit is a technical evaluation of an organization, system, process, enterprise, project,

product or a person. It can also be defined as an engineering view point audit in each stage of

planning, designing, costing and execution of public works construction and should usually conclude

whether there was loss of public money or not viz how much money was wasted or misspent because

of engineering mistakes?

A Value for Money Audit (VfM) audit is a systematic, purposeful, organized and objective examination

of government / institutional / individual activities. It provides the decision makers with an assessment

tool on the performance of these activities; with information, observations and recommendations

designed to promote answerable, honest and productive institutions; and encourage accountability

and best practices.

The scope of a VFM exercise includes the examination of economy (E1), efficiency (E2), cost-

effectiveness (E3) and environmental / social safeguards of institutional activities (E4); procedures to

measure effectiveness; accountability relationships; protection of public assets; and compliance with

authorities and regulations.

Project/Activity Site Information

Location of interview site:

Region: ____________

Implementing Agency: ____________


Inception Report 33

Location (Department, agency, ward or village): ____________

Type of Setting: 1=Rural 2=Urban

B: Releases of Water Funds

Issue

No.

Objective / Issue Response Remarks (for any

deviations,

exceptional)

1 Check the bank statements for the 2 FYs of the Account

in use and ascertain amount of funds received by the

agency or entity.

Funds received:

Amount ……………..

2 Check for disbursements of the amounts (note dates

when transfers were made and to where- operational

accounts). Ascertain delays and causes (Account

name:

Account number:

Funds received:

Dates and amounts)

3 Is there a complete inventory of completed projects 1=Yes 2=No

C: Sampling

Financial Year Total number

planned

Development

investments

Total number of

completed

investments

No. of sampled

investments

(20%)1

2010/11

2011/12

Financial Year Total number

planned CBG

investments

Total number of

implemented CBG

activities

No. of sampled

activities (20%)

2010/11

1 If the number of transactions or contracts implemented is less than 5, sample all of them.


Inception Report 34

2011/12

D-1: Planning Process Guidelines

Issue

No.

Objective / Issue Response Remarks (for

any deviations,

exceptional)

1 From the Medium Term Expenditure Frameworks /

Plans and Budgets check if the sampled projects

implemented were planned , budgeted and approved

(Note: minutes and dates of approval of the MTEF)

A)Planned

B) Budgeted

C)Approved

Was the results framework, M&E procedures used for

investment planning?

1=Yes 2=No

3=Not Available

2 Note whether there was bottom –up participation

involving beneficiaries in concept and design (date and

reference no.)

1=Yes 2=No

3=Not Available

3 Is the location of the project appropriate to meet the

needs of the target group?

1=Yes 2=No

3=Not Available/No

information

4 Was there a project design and drawings report of

professional standard?

1=Yes 2=No

3=Not Available/No

information

5 Was the design economical, practical and user friendly

(appropriateness of technologies un urban and rural

water supply schemes?

A) Economical

B) Practical

C) User friendly

1=Yes 2=No

3=Not Available/No

information

6 Did the design report address Social Safeguards

(HIV/AIDs, gender, environment, Occupation Health

and Safety, in line with ESMF and RPF)?

A) Included HIV/AIDS interventions

B) Included both women & men

C) Considered the disabled persons

D) Considered environment e.g. garbage disposal

1=Yes 2=No

3=Not Available/No

information


Inception Report 35

E) Considered health & safety

7 Assess the quality, compliance and timeliness of

preparation and execution of ESIA reports, ESMPs and

RAP for category A sub-projects

D-2: Procurement Process Guidelines

Issue

No.


any deviations,

exceptional)

1 Tender Board duly constituted and approved as per tendering procedures?

2 PMU properly established & functional as per Public Procurement Act 2004

1=Yes 2=No

3=Not Available/No

information

3 Were there Annual Procurement Plans for the FYs and

were they approved, Monitored in accordance with

planning, budgeting, work plan and funds transfer?

1=Yes 2=No

3=Not Available/No

information

4 Of the sampled projects, how many were executed under

the force account and those contracted? Calculate the

percentage.

5 Note any reasons of using force on account

6 Was the bidding method for contracted projects adopted by the Tender Board? (note date, minutes)

1=Yes 2=No

3=Not Available/No

information

7 Was the standard bidding document in place? 1=Yes 2=No

3=Not Available/No

information

8 Public notice to tender? advertisement 1=Yes 2=No

3=Not Available/No

information

9 Register of tenders received 1=Yes 2=No

3=Not Available/No

information

10 Records of tender opening 1=Yes 2=No

3=Not Available/No

information

11 List of bids rejected 1=Yes 2=No

3=Not Available/No

information

12 Technical Evaluation Committee (TEC) properly appointed and TB Awards based on TEC

1=Yes 2=No

3=Not Available/No


Inception Report 36

Issue

No.


any deviations,

exceptional)

recommendations. information

13 Notification of award of tender 1=Yes 2=No

3=Not Available/No

information

14 a Approval of draft contract by the relevant authorities sought?

1=Yes 2=No

3=Not Available/No

information

14 b Were there contract variations and were approvals sought?

15 Signed contract 1=Yes 2=No

3=Not Available/No

information

16 Force account materials:

Where materials are obtained from pre-qualified

suppliers; were the request for quotes and order for

materials transparent, fair and maximize value for

money?

1=Fair 2=Not fair

3=Not Available/No

information

17 Feedback from procurement staff or other officials

interacted with e.g. Engineer; on duration of procurement

process

1=Good 2=Not

Good 3=Not

Available/No

information

18 How can the delays be mitigated?

19 a Is procurement unit using any Management Information

system (MIS) or any computer software to manage its

procurement processes?

1=Yes 2=No

19 b If yes, what is the name of the MIS or computer software

used?

20 Assess the Capacity of Implementing Agencies to

carryout procurement – (Annex list of auditees and their

qualifications). Any mitigation measures taken?

D-3: Implementation Process Guidelines

No.


deviations,

exceptional)

-1- Design Consultant


Inception Report 37

No.


deviations,

exceptional)

-2- Amount of Contract

-3- Supervising Consultant

-4- Amount of Contract

1 Works Contractor ( Name)

2 Letter of Contract Award (date, approved by,) 1=Yes 2=No

3=Not

Available/No

information

3 Contract sign date

4 Commencement date (a) planned and (b) actual

5 Contract duration

6 Completion date (a) Planned and (b) actual %ntage time

progress

7 Contract Original amount

8 Contract revised amount

Was the Contract amount appropriateness to the design?

9 Amount certified/paid to-date ( actual payments) %ntage

progress

10 Was there a work programme for the project 1=Yes 2=No

3=Not

Available/No

information

11 Was the programme followed?

If not followed why?

1=Yes 2=Not

followed 3=Not

Available/No

information

12 What is the physical progress of works (%)

13 Was there a project/ Investment committee in place? 1=Yes 2=No

3=Not

Available/No

information

14 Was the Project /Investment committee functional? (minutes

and reports)

1=Functional

2=Not

functional

3=Not

Available/No

information


Inception Report 38

No.


deviations,

exceptional)

15 Were all the following documents / records related to the

contract available?

A. General Specifications B. Particular / special specifications C. Drawings D. B.O.Qs E. Performance Security F. Advance payment guarantee

1=Yes 2=No

3=Not

Available/No

information

16 Contract undertaken in accordance with the following.

A. Specifications compliance B. Drawings compliance C. Programme updates D. Instructions E. B.O.Qs compliance F. Joint Measurements G. Certificates prepared and signed by Engineers /

Supervisors, Contractor etc

1=Yes 2=No

3=Not

Available/No

information

17 Performance of the contractor/consultant/supplier

Were there any variation orders? 1=Yes 2=No

3=Not

Available/No

information

Was the contract completed within the specified completion

period in the contract?

1=Yes 2=No

3=Not

Available/No

information

Were there any disputes/claims? 1=Yes 2=No

3=Not

Available/No

information

Were there any penalties for delays? 1=Yes 2=No

3=Not

Available/No

information


Inception Report 39

No.


deviations,

exceptional)

Was there any work instructed to be redone? 1=Yes 2=No

3=Not

Available/No

information

Was there any work that was carried out during the Defects

liability period?

1=Yes 2=No

3=Not

Available/No

information

Was the design appropriate in terms of:

a) Cost effectiveness

b) Meeting the needs of the beneficiaries

c) Sustainability

1=Yes to a

great extent; 2=

Yes, but to a

limited extent;

3=Not sure

4=Not

appropriate

5=Not sure

18 Mitigation of environment, health and safety and

Community involvement

A. Do the specifications include mitigation of environment, health and safety?

B. Did the B.O.Qs address issues like restoration of borrow pits, H&S issues?

C. HIV/AIDs awareness (reports, condoms) D. Was the community involved in the

implementation of the project?

1=Yes 2=No

3=Not

Available/No

information

19 Quality Control processes

A. Were quality tests conducted? (Material testing, field testing, visual etc)

B. Were the tests properly recorded? C. Were the tests analysed and approved?

(Accepted / Rejected) D. Workmanship inspection / status reports in

place?

1=Yes 2=No

3=Not

Available/No

information

20 Were the works properly measured on completion and

payment certified as per contract?

A. Works instructed? B. Works approved? C. Final inspection conducted? D. Substantial completion certificate issued? E. Snag list generated and corrected? F. Final acceptance certificate? G. Environmental compliance certificate? H. Final statement of account?

1=Yes 2=No

3=Not

Available/No

information

Outstanding Technical Observations


Inception Report 40

Note if any, take and insert pictures to support the observations that will directly lead to remedial works or that may lead to early deterioration of the works as a guide, check for but not limited to: Buildings

• Cracked floors

• Detached splash aprons/ (verandas??)

• Dampness

• Cracked walls and ceilings (major/structure if a pencil can go through; minor hairline or use personal judgement)

• Sagging and Wapping of timber facia boards

• Workmanship on electrical and sanitary fittings

• Thickness of glazing and roofing sheets as opposed to specifications

• Doors and Window sizes and material used or timber type as opposed to specifications

• Window stays, latches and door stoppers

• Is the building in use?

• Features that lack to make the facility fully usable and yet not provided for in the scope of works Water Points

• Flow of water, taste and smell for water points; colour; workmanship of water source cement works; drainage for unutilised water (safe discharge)

• Assess the level of usage for finished water projects Access Roads to Buildings or Water Supply Points

• Broken culvert pipes, headwalls and wing walls;

• Thickness of gravel applied in sections as compared to specifications;

• Check for drainage arrangements e.g. Mitre drains

• Bush and vegetation growth

Review of Quality of Works

This will involve an assessment of workmanship based on finishes, fixtures and fittings and any

external works visible to the Assessors. The quality of materials used in construction will also be

visually assessed basing on the nature of defects sighted. Comment on the quality of finished works

(workmanship), e.g. completed access road length, any culverts installed, their sizes, drainage

structures, quality and thickness of gravel used, riding surface / vehicular speeds, quality of water

source facility, etc; adherence to standards and specifications. Illustrative pictures will be taken as

necessary. Also check for tests conducted by the contractors and supervisors.

Quantities Verification (For verifiable bills)

Bill Item

( sample)

Brief Description Unit Quantity

(Original +

VO)

Quantity

Certified and

paid for

Ref:_____

Quantity

as per

Audit

exercise

Remarks

Review of Supervision of Works


Inception Report 41

The team will inspect visitor’s books and site diaries where available to assess the frequency of supervisors on sites. Progress reports will be reviewed as well as site meeting minutes to assess the effectiveness of supervision. D-4: Payment Process Guidelines M/s …………………… presented fee notes or certificates or invoice for goods which were paid as follows:

Fee note or

Certificate No.

Work packages /stage of

works

Amount paid WHT Date Paid

Total payments to-date

Compliance to Regulations, Existence of Records and Controls in Place

Issue No. Objective / Issue Response/

Information/ data

Remarks (for

any deviations,

exceptional)

1 Was all expenditure on Investments having

necessary supporting documents?

1=Yes 2=No 3=Not

Available/No

information

2 Are all statutory deductions made? (Government

taxes, retentions, etc for each payment

certificate?)

1=Yes 2=No 3=Not

Available/No

information

3 Do the Statement of Accountability submitted on

a quarterly basis reconcile with the expenditures

recorded by the agency / entity

1=Yes 2=No 3=Not

Available/No

information

4 Are all payments to contractors /suppliers properly

reconciled against contractor’s or supplier

submittals supported by agreed measurements of

work or receipts and certified accordingly?

1=Yes 2=No 3=Not

Available/No

information

5 Was the payment schedules of the contract

adhered to?

1=Yes 2=No 3=Not

Available/No

information


Inception Report 42

Provide comments on payments made under this contract based on the above findings {followed / did

not follow the financial and accounting regulations and internal controls were adhered

to………………………….}

Did it take more than 30 days to pay approved

certificates?

1=Yes 2=No 3=Not

Available/No

information

Were certificates appropriately signed by: Project

Supervision and/or Engineer, Accounting Officer,

Finance Officer, Auditor?

1=Yes 2=No 3=Not

Available/No

information

If an advance payment was made, was it backed

by security guarantees / appropriate references?

1=Yes 2=No 3=Not

Available/No

information

Were all completed projects recorded in the

Assets register including the source of funds?

1=Yes 2=No 3=Not

Available/No

information

Direct

labour

force

accounts

Have all payments for force account works been

posted to the relevant project account?

1=Yes 2=No 3=Not

Available/No

information

Were all materials bought for force account been

received and kept in stores?

1=Yes 2=No 3=Not

Available/No

information

Have all force account materials, taken from

stores, been properly signed for?

1=Yes 2=No 3=Not

Available/No

information

Have all payments for manpower been accounted

for?

1=Yes 2=No 3=Not

Available/No

information

In case there were delays or problems in

procurement, what were the associated

problems?

A)Lack of manpower

B)Lack of computers

C)Lack on

understanding on some

procurement

procedures

D) Others (Specify)

……


Inception Report 43

Other General Financial Issues

Issue

No.

Objective / Issue Response/

Information/ data

Remarks (for any

deviations,

exceptional)

1 Does the system of internal checks and balance

exist?

1=Yes 2=No 3=Not

Available/No

information

2 Is the internal system effective in design and

operation to ensure the early detection of and

prevention of misuse, fraud, misappropriation and

misapplication?

1=Yes 2=No 3=Not

Available/No

information

3 Which areas of significant inefficiencies exist in

the system?

Suggest necessary remedial measures.

Are you using any Management Information

System (MIS) or any computer software to

manage financial records?

1=Yes 2=No

If yes, what is the name of the MIS or software?

…………………………

If yes, when (Month and Year) did you start using

the software

Month …………….

Year ……………….

D-5: Commissioning / closeout

Was the project commissioned and handed over to users? (Check documentary evidence of hand

over, photography, plaque or commissioning blocks etc).

D-6: Ownership, utilization and Sustainability arrangements

Issue

No.


deviations,

exceptional)

1 Project Ownership

Did the community contribute to project cost Cash or

in Kind?

1=Yes 2=No

3=Not Available/No

information


Inception Report 44

Issue

No.


deviations,

exceptional)

To what extent were the beneficiaries involved in

design and implementation?

1=Yes, to a great

extent 2=Yes, to a

limited extent;

3=Not involved;

Interviewer should interact with a sample of about 5

different users of the facility and access the level of

user satisfaction

1=Highly satisfied

2=satisfied; 3=Not

decided

4=Not satisfied

5=Highly satisfied

If not satisfied, what are the main reasons for not

being satisfied?

2 Project Utilization (perceived beneficiary

satisfaction)

Is the project used for the intended purpose? 1=Yes 2=No

3=Not Available/No

information

Is there any misuse of the facilities e.g. using a public water source for personal use?

1=Yes 2=No

3=Not Available/No

information

Is there any restriction to the use of the facility?

1=Yes 2=No

3=Not Available/No

information

Does the project benefit the intended target group?

1=Yes 2=No

3=Not Available/No

information

Assess the level of usage for finished project 1=Well utilized;

2=Not fully

utilized; 3= Not

utilized

3 Sustainability arrangements

Are maintenance plans in place? 1=Yes 2=No

3=Not Available/No

information

Are maintenance funds provided for in the budget?

1=Yes 2=No

3=Not Available/No

information


Inception Report 45

Issue

No.


deviations,

exceptional)

Are maintenance funds budgeted sufficient for the activity?

1=Yes 2=No

3=Not Available/No

information

Does the community contribute towards O&M?

1=Yes 2=No

3=Not Available/No

information

What management arrangements are in place to ensure proper Operation and Maintenance?

Is there a similar project implemented in the nearby locality that could have been merged with this particular one?

1=Yes 2=No

Name the project mentioned above …………………..

What challenges/fears do you have in regard to sustainability of this facility?

What recommendations do you suggest for better services in future?

D-7: Social Safeguards / Equity or Cross-cutting issues

Check for the following:

For all projects, check whether environmental screening was conducted; are there EIA? How are the

social impacts of civil works executed monitored? Assess the quality, compliance and timeliness of

EIAs.

For building constructions, establishment of ramps to enable People with Disabilities (PWD) to access

the facilities e.g. public toilets, presence of anchors in one of the stances; and clear demarcation of

female and male stances to address the gender issues. Other environmental and sanitation aspects

e.g. air-tight manholes, planting of tree and flowers.

For road constructions, establishment of pedestrian walkways, humps for speed control, proper

drainage systems applied, pedestrian crossings, restoration or make use of gravel or murram borrow

areas, etc.

Drainage outlets from water points to avoid ponding hence encourage mosquito breeding and other

environmental hazards.


Inception Report 46

Under Capacity Building Grant (CBG), Social safeguards issues considered include: gender balance

in trainings held, course content (covering issues for the youth, disabled, environment, HIV/Aids etc),

access to equipment purchased under retooling by agency or entity officials (men & Women).


Inception Report 47

E: CAPACITY BUILDING GRANT (CBG)

Training Title _____________________________________________________

Sector __________________________________________________________

CDG Funds Approved/released for activity _______________________ against

Budget__________________

Contract Price________________ Actual expenditure________________

Dates held ______________________________ (Fill in a similar template in case of more than 1

training was held over FY2010/2011 & FY 2011/2012)

Where was training held? 1=In Tanzania 2=Out of the country

If held out of the country, give reasons

__________________________________________________________

Audit

Objectives Information source and Review Activity

Comments/r

emarks

Planning

Was a CNA prepared? 1=Yes 2=No

Was the CNA report satisfactory? 1=Yes 2=No

Were capacity gaps comprehensively identified?

Training in conformity with exiting job descriptions?

1=Yes 2=No

Was it participatory (Agency staff, Entity staff,

statutory bodies, civil society organisations etc)

1=Yes 2=No

Was it bottom-up? 1=Yes 2=No

Was there prioritization of CBG activities? 1=Yes 2=No


Inception Report 48

Audit


Comments/r

emarks

Do the activities match available funds/budgets? (

Realistic budget for CB activities)

1=Yes 2=No

Agency/Entity

capacity to

handle

procurements

efficiently

Are there procurement guidelines (PPA 2001/4,

Regulations on selection and employment of

consultants sample bidding documents, Evaluation

forms, contracts etc

1=Yes 2=No

Are they being used? 1=Yes 2=No

Is there an identifiable system in place to expedite

procurements?

1=Yes 2=No

Is there a procurement plan for each FY? 1=Yes 2=No

Is there a list of pre-qualified

suppliers/contractors/service providers?

1=Yes 2=No

Training /

Implementation

Did the training programme target the appropriate

categories?

1=Yes 2=No

Was the training appropriate for the participants? 1=Yes 2=No

Were Training methodologies appropriate for the

trainees?

1=Yes 2=No

Were training materials appropriate? 1=Yes 2=No

Are reports of facilitators and participant evaluation

available?

1=Yes 2=No

Did all target trainees attend? 1=Yes 2=No

Was the selection of participants’ gender- sensitive? 1=Yes 2=No

How many male/female attended? Male ……

Female…….

Were the capacity needs of the disadvantaged

groups (women, youth, people with disabilities,

elderly, displaced people, migratory communities etc)

considered?

1=Yes 2=No

Financial

Accounting

Were payments executed in accordance with

financial and accounting regulations?

1=Yes 2=No

Were all financial reports for CBG utilisation

submitted and on time?

1=Yes 2=No


Inception Report 49

Audit


Comments/r

emarks

Were all funds received been accounted for to the

MoW?

1=Yes 2=No

Was the training cost effective?

Confirmation of Audit exercise

Site Visit, Measurements and Observations / Clarifications were conducted on ____________ in the

Presence of:

Name Designation Signature

1.__________________ _________________ __________________

2.__________________ _________________ __________________

3.__________________ _________________ __________________


Inception Report 50

6.3 Field Reporting Format


MINISTRY OF WATER

Technical Audit of the Water Sector Development Programme for FYs 2010/11 and

2011/12 – Agency/Entity Report

___________ AGENCY/ENTITY

SUMMARY OF VALUE FOR MONEY AUDIT RANKING OF INVESTMENTS FOR

S/N Finan Activity Total Sector LG E12 E23 E34 E45 VfM6 Rating Remarks

2 Economy test (BC/AC%) total score = 3

Best (3) - More than 95%

Good (2) - >85 – 95%

Fair (1) - 75 – 85%

Poor (0) -<75%

3 Efficiency (E2) Total score = 3

Planning / approval process

Procurement process

Implementation process

Payment process (Financial Management)

Commissioning / Hand-over process

4 Effectiveness (E3) Total score = 3

Quality of the finished works

Utilization of the utility

Operation and Maintenance arrangements

5 Social Safeguards (E4) Total score = 3

Environmental aspects

Gender issues

Beneficiary involvement

6 VfM = E1 + E2 + E3 + E4, total score of 12 rate as:


Inception Report 51

cial

Year

/

Investme

nt

Spent

Tshs

Level

1.

2.

3.

Total/Av

erage

1. Introduction

1.1 Audit Schedule

The Audit in ……………………..Agency/ Entity was conducted according to the

following schedule.

DATE TIME ACTIVITY

Arrived in ………………… Agency/Entity

Briefed the officials present

Conducted the audit exercise.

Conducted the audit exercise.

De-briefing (Exit) meeting

1.2 Reception by the Agency / Entity

1.3 De-briefing (Exit) Meeting

1.4 Challenges Faced

2. Technical Audit Findings

10 – 12 points = Best; 7 – 9 points = Good; 4 – 6 points = Fair; and 0 – 3 points =

Poor


Inception Report 52

Sampling Criteria

--------------------------- Agency / Entity during the period under review implemented a total

of …….investments and ………………….CBG activities. In selecting activities for review and

audit the following criteria was adopted: (refer to ToRs on sampling)

Financial

Year

Total number of completed investments 7 No. of sampled investments (20%)

2010/11

2011/12

Financial

Year

Total number of implemented CBG activities No. of sampled activities (20%)

2010/11

2011/12

2.1 Construction of Water Supply xxxx

Consultancy Services for Design and Supervision of Water Supply xxx (or if no Consultant, then directly go to Contractor or Service Provider).

Contract Data

Scope of Work

The requirement was for Consultancy Services for Design and Supervision of

……………………………………………………………………………………………………………

……………………………………………………………………………………….

Planning and Approval Process

Procurement Process

7 Only completed investments should be a priority to sample although uncompleted projects could also be

evaluated


Inception Report 53

Pronounce on whether the acts were followed or flawed.

Implementation Process

(Insert relevant pictures quoting site, location etc) Payment Process

Commissioning / Handover Process

Operation and Maintenance arrangements

Social Safeguards /Equity or Cross-cutting Issues Considerations

Value for Money Analysis

Outstanding Issues and Management Responses

(Should be part of exit meeting minutes –signed)


Inception Report 54

ANNEXES

Annex 1: List of Officials that Attended the Briefing Session

Serial

No

Name Title Qualifications &

other relevant

training

Telephone

Contact

1

2

3

4

5

6

7

8

9

10

Annex 2: List of Key Agency/Entity Informants

Serial No Name Title Qualifications &

other relevant

training

Telephone Contact

1

2

3

4

5

6


Inception Report 55

Annex 3: List of Officials that Attended the Exit Meeting

Serial

No

Name Title Qualifications &

other relevant

training

Telephone

Contact

1

2

3

4

5

6

7

8

9

10

Documents

Provision of Consultancy Services to Conduct Technical Audit of … · 2015-08-13 · THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WATER Provision of Consultancy Services to Conduct