The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Department of Transformation and Digitisation’s vendor management assessment from July 1, 2018 to June 30, 2019 has been given a rating of “unsatisfactory” by the Office of the Auditor General.

“Overall, we noted that there is a lack of governance surrounding the vendor and contract management process,” the OAG said in an audit tabled in the House of Assembly yesterday.

During their review, auditors made ten major findings. Their report says management were unable to provide documents related to policies and procedures for vendor selection.

“There is a risk that the lack of accessible and inadequate policies may result in the vendor selection process not being conducted in accordance with the written policies,” the report said. “This can result in inappropriate vendors being selected to supply goods or services without appropriate documentation and approvals.”

Auditors also noted contracts were not reviewed on a regular basis. “Management was unable to accurately track when payments were due in a accordance with contracts,” the report said. “This resulted in late fees being incurred. In one instance, there were six transactions which took place in 2017/2018 but were included in the 2018/2019 payment listing. These late fee payments related to two vendors in the amount of $63,357.94.”

Auditors said though they requested 25 contracts, only three were provided.

“It was noted as the contract owners moved from various ministries to DTaD, they were not appropriately handed over. We received some business-related information for other vendors, however, their contracts were not accessible at the time of review,” the report says.

Of contracts provided, only one met requirements.

Auditors noted risk funds may be needlessly disbursed if contracts are not maintained. They further found the department does not have a process to monitor vendor performance and service management to ensure contracts are being followed.

“This may result in DTaD paying for services which have not been provided. Further, this may result in vendors providing a quality of service that is not aligned with DTaD’s goals and objectives,”the report said.

When auditors requested supporting documents for 50 transactions, they were provided with only seven.

“When supporting documentation is not kept there is no audit trail to be followed to verify the validity and appropriateness of transactions,” the report says.

Auditors also found various transactions did not have appropriate approval.

Auditors also found that there was an inconsistent approach to the invoice entry and recording process, causing inconsistent or missing invoice details.

According to the report, a finance officer was sent to the department in 2019 to address issues relating to payments, procurement and vendor management training.