AUDITOR GENERAL REPORT: PMRC IN DEPTH ......in place, including IFMIS (Integrated Financial...

PMRC BRIEFING DOCUMENT MAY 2014

AUDITOR GENERAL REPORT: PMRC IN DEPTH MINISTERIAL ANALYSIS

ENABLING EFFECTIVE MANAGEMENT OF PUBLIC RESOURCES

Prepared by: Alex Armitage (Research and Analysis) with the support of Bernadette Deka (Executive Director) and Masuzgo Mtawali (Head of Communications).

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C O N T E N T S PA G E

Introduction 2Ministry of Agriculture and Cooperatives 4Ministry of Commerce, Trade and Industry 5Ministry of Justice 5Ministry of Community Development / Social Services / Mother and Child 6Ministry of Gender in Development 6Ministry of Defence 7Ministry of Education, Science, Vocational Training and Early Education 8Ministry of Information and Broadcasting Services / Tourism 9Ministry of Finance 10Ministry of Foreign Affairs 11Ministry of Health 12Ministry of Home Affairs 13Ministry of Land, Energy and Water 14Ministry of Livestock and Fisheries 15Ministry of Local Government and Housing 16Office of the Vice President 16Ministry of Mines and Mineral Development 17Office of the President: Lusaka Province 17Office of the President: Central Province 18Office of the President: Copperbelt Province 18Office of the President: Luapula Province 19Office of the President: Eastern Province 20Office of the President: North Western Province 20Office of the President: Northern Province 21Office of the President: Western Province 22Public Service Management Division 23Ministry of Transport, Works, Supply and Communications 24Ministry of Sport, Youth and Child Development / Labour 25Ministry of Tourism, Environment and Natural Resources 25

PMRC AUDITOR GENERAL REPORT ANALYSIS

ENABLING EFFECTIVE MANAGEMENT OF PUBLIC RESOURCES

2 | AUDITOR GENERAL REPORT: PMRC IN DEPTH MINISTERIAL ANALYSIS

I N T R O D U C T I O N

PMRC has undertaken a policy analysis of the Auditor General Reports from 2010 to 2012 to provide an overview of the current situation of public expenditure in Zambia, and highlight the guiding legislation and processes surrounding external auditing. This analysis presents the current scenario in Zambia, with the amount of funds under query increasing from ZMW 1,139,995,385 in 2010 to ZMW 3,250,366,626 in 20121. This signifies an increase of 185% in the amount of funds abused in a three-year period. The percentage of total available funds2 under query increased from 11% in 2010 to 15% in 2012, peaking at 18% in 2011. This data suggests an unacceptable trend of increasing query amounts, both in monetary amount and in the percentage of total available funds under query. Issues of unvouched expenditure, (referring to all expenditure unsupported by vouchers, correct signatures, receipts, invoices or other payment documents as referenced in The Financial Regulations), and weak procurement or contract work, (referring to any funded project experiencing significant delay, mismanagement, a lack of implementation, or poor workmanship or quality), were in the top five categories in all three years under assessment. These two categories, unvouched expenditure and weak procurement or contact work, represented almost 50% of total queries in 2012 compared to 28% of queries in 2010 when misapplication of funds was the highest category of queries.Based on analysis of audit data and best practice examples, a number of key issues with audit processes have been identified and recommendations made towards promoting accountability, transparency, good governance and sound use of public funds in Zambia: 1) A review of guidelines surrounding the availability of audit

information to the public needs to be undertaken. Wherever possible, documents should be freely available to the public, with access provided online and in hard copies both for general citizenry and use in community centres. Linkages with civil society need to be explored to assist with the dissemination of information.

2) The format of the Auditor General Report needs to be reviewed to incorporate clearer presentation of audit findings. Data need to be effectively summarised and categorised, the overall categorisation of queries needs

to be reviewed and improved to ensure consistency, and sections on audit trends and implementation procedures and progress need to be introduced.

3) An assessment needs to be undertaken on the current funding needs and shortages, the staff levels and skills availability, and the material resources available to the Auditor Generals Office and the Public Accounts Committee. Key gaps need to be identified and measures proposed to address these. Assessment should include a review of electronic systems in place, including IFMIS (Integrated Financial Management Information System), as well as available international resources from the International Organisation of Supreme Audit Institutions to improve processes.

4) A review of the role of internal and external auditors needs to be undertaken, to determine key areas for improving linkages and the relationship between the two, potential training needs, and measures to increase awareness on the role and importance of these audits within departments and ministries. The review also needs to consider internal and external audit processes, and key constraints affecting these.

5) A review of the appointment methods and movement or transfer of Permanent Secretaries needs to be undertaken to determine the reasons behind such movement and how to avoid this. Review should also consider training procedures available to personnel to ensure those responsible for departments have the necessary financial and management skills to oversee officers and expenditure matters.

6) A review of processes to assess the implementation of recommendations and action items following the PAC hearings need to be undertaken. Members of the Auditor General Office, the PAC and Parliament need to collaborate to identify appropriate mechanisms to monitor and review actions. Discussions need to identify roles and responsibilities, reporting mechanisms and sanctions for officers failing to implement recommendations.

7) Legislation and guidelines surrounding the management of public funds and necessary sanctions such as the Financial Regulations need to be revised to ensure those committing offences are held accountable and appropriate penalties and disciplinary action are enforced.

1 Query amounts have been rebased2 The ‘total available funds’ includes both the budget released to a department as well as any funds carried over from previous years as stipulated in the Auditor General Report.

PAC

Abuse ofPublic Funds

AUDITOR GENERAL REPORT: PMRC IN DEPTH MINISTERIAL ANALYSIS | 3

These recommendations require a collaborative approach in order to be effective. Key players of the Office of the Auditor General, Public Accounts Committee, and Controlling Officers in Ministries need to work together to implement changes with support from Government. However, the cross-cutting nature of issues raised in the Auditor General Reports requires all sectors of Government and society be involved and committed to reducing audit queries.

The following document provides a greater level of detail regarding audit queries for individual Ministries from 2010 to 2012 based on the Auditor General Reports. Each Ministry is provided with the following:§ The total audit query amount;§ The number of individual queries:§ The amounts and distribution of queries according to

category;§ The query amount as a percentage of the total Auditor

General Report amount;§ The percentage of the total available funds under query; and§ The percentage of budget released.

The analysis has presented queries according to categories, as detailed in Appendix A. Analysis has also taken into account the ministerial and departmental changes implemented over the time period under review, also detailed in Appendix A. PMRC believes that the presentation of key issues per Ministry allows greater understanding of the root causes behind audit queries, tracking progress over the three year period, and affording Departments the opportunity to reflect on audit outcomes and implement specific procedures for change. Effective implementation of audit processes have been shown to contribute to sustainable national development, reduce fraud and contribute to poverty reduction, and it is essential that Zambia maximises its resources to achieve this.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2010 2011 2012

11%Total Funds

18%Total Funds

15%Total Funds

Billi

ons (

ZMW

)

No. ofQueries

537

1.1 billion

No. ofQueries

553

1.5 billion

No. ofQueries

505

3.2 billion

Amount of Queries (ZMW) 2010-2012 and Percentage of Total Funds in Affected Ministries Under Query

Source: Adapted by Policy Monitoring and Research Centre (PMRC), 2014 from Auditor General’s Report 2010-2012

Auditor General Report queries increased from ZMW 1.1 Billion in 2010 to 3.2 Billion in 2012. The amount of funds in affected ministries under query increased from 11% in 2010 to 15% in 2012.’

YEAR CATEGORY AMOUNTS

2010 No queries -

Total Query Amount 2011 (1 Query) 188,217,584

Unvouched expenditure 188,217,584 100%

Percentage of Total AG Report Queries 12.09%

Percentage of Total Available Funds Under Query 87.49%

Percentage of Budget Released (includ-ing funds carried from previous year) 103.61%

Total Query Amount 2012 (10 Queries) 234,722,622

Unvouched expenditure 232,201,158 98.93%

Unaccounted for stores 964,456 0.41%

Irregular payment 875,250 0.37%

Unretired imprest 252,257 0.11%

Non recovery of loans and advances 234,000 0.10%

Misapplication of funds 119,211 0.05%

Overpayment 39,132 0.02%

Non remittance of tax 37,158 0.02%




2011

2012

D E F I N I T I O N S

Total Query Amount 2012 This is the total amount of queries (ZMW) recorded for an individual ministry in a given financial year. The number of individual queries per ministry is also listed.

Percentage of Total AG Report Queries This is the query amount for an individual ministry as a percentage of the total queries recorded in the Auditor General Report for all ministries.

Percentage of Budget Released (Allocation vs. Release)This is a percentage of funds released, (including any funds carried over from the previous financial year), as compared to the funds allocated.

Query Categories The total query amount for an individual ministry is itemized according to their categories (definitions for categories are provided in Appendix A). • Categories are presented in

descending order. • The distribution of categories

in relation to the total query amount is illustrated with a percentage.

Percentage of Total Available Funds Under Query This is the percentage under query, of the total available funds released to the mininstry, as listed in the Auditor General Report. The total available funds includes both the budget released and any funds carried over from the previous financial year.


MINISTRY OF AGRICULTURE AND COOPERATIVES The Ministry of Agriculture and Cooperatives ranked 11th in 2010, 8th in 2011, and 2nd highest in 2012 in terms of the overall AG Report query amounts. This indicates a steady increase in the amounts under query. The percentage of funds under query in the Ministry has increased from 3.7% in 2010 to nearly 58% in 2012, representing one fifth of the total AG Report. Weaknesses in banking and accounts were the predominant issue in 2010, with irregular issuance of inputs highest in 2011. This was replaced by unvouched expenditure as the predominant issue in 2012.

Ministry of Agricultureand Livestock


Total Query Amount 2010 (29 Queries)

23,566,437

Weakness in banking / accounts 5,412,800 22.97%

Unaccounted for stores 3,832,044 16.26%


Unaccounted for revenue 2,873,650 12.19%

Irregular payment 2,563,008 10.88%

Weak procurement/contract work 2,002,010 8.50%

Unretired imprest 1,427,909 6.06%

Non recovery of loans and advances 1,251,342 5.31%

Unaccounted for funds 349,480 1.48%


Undelivered materials 152,500 0.65%

Irregular issuance of inputs 91,280 0.39%


Percentage of Total AG Report Queries

2.07%

Percentage of Total Available Funds Under Query

3.67%

Percentage of Budget Released (in-cluding funds carried from previous year)

84.17%


22,725,959

Irregular issuance of inputs 8,525,117 37.51%

Weak procurement / contract work 3,472,718 15.28%


Unretired Imprest 3,026,268 13.32%



Unaccounted for revenue 510,105 2.24%

Irregular Payment 498,042 2.19%

Lack of monitoring 316,100 1.39%

Inappropriate provision of imprest 250,486 1.10%

Lack of authority 163,394 0.72%



Wasteful expenditure 48,388 0.21%

Irregular drawing of fuel 47,146 0.21%






1.46%


2.14%


92.80%


670,059,292



Non submission of expenditure returns

5,554,800 0.83%

Irregular issuance of inputs 2,785,474 0.42%






Uncollected debt / funds 33,040 0.00%


20.61%


57.97%


99.97%

Total AG ReportZMW 1,139,995,385

Ministry2.07%

ZMW 23,566,437

Ministry1.46%

ZMW 22,725,959

Ministry20.61%

ZMW 670,059,292



2010 2011 2012

MINISTRY OF AGRICULTURE AND COOPERATIVES, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2011

2012


MINISTRY OF COMMERCE, TRADE AND INDUSTRY The Ministry of Commerce, Trade and Industry had the least amount of queries in 2010, however, they ranked 6th in 2011 with nearly 3% of the total AG Report queries. This represents a large increase in the amount of funds under query in the Ministry, from 0.6% in 2010 to 68% in 2011. Unretired imprest was the predominant concern in 2010 whilst non-submission of expenditure returns was highest in 2011. However, significant improvements have been made, as no queries were reported in 2012.

Ministry of Commerce,Trade and Industry


Total Query Amount 2010 (4 Queries) 214,007






0.56%

Percentage of Budget Released (includ-ing funds carried from previous year)

91.19%


Non submission of expenditure returns 27,083,333 63.04%



Misapplication of funds 1,960,110 4.56%




Failure to follow procurement proce-dures

113,835 0.26%


Weakness in banking / accounts 85,459 0.20%





67.99%


85.48%

Total Query Amount 2012 (0 Queries) 0


Ministry0.02%

ZMW 214,007

Ministry2.76%

ZMW 42,62,411


2010 2011

MINISTRY OF COMMERCE, TRADE AND INDUSTRY, AUDITOR GENERAL REPORT QUERY AMOUNTS


2010 No queries -

Total Query Amount 2011 (1 Query) 188,217,584

Unvouched expenditure 188,217,584 100%

















MINISTRY OF JUSTICE

The Ministry of Justice had the fifth and fourth highest amount of queries in 2011 and 2012 respectively. The number of individual queries was relatively low. However, the funds under query were high, representing over 7% of total queries in 2012. The highest category of queries in both 2011 and 2012 was unvouched expenditure.Ministry of Justice



2011 2012

Ministry12.09%

ZMW 188,217,584

Ministry7.22%

ZMW 234,722,622

MINISTRY OF JUSTICE, AUDITOR GENERAL REPORT QUERY AMOUNTS

2011

2012

2011

2011

2012

2012

2010







Unvouched expenditure 740,120 9.71%








Lack of monitoring 9,058,223 38.04%


Undelivered materials 2,988,515 12.55%

Irregular Payment 2,221,202 9.33%




Unretired Imprest 102,370 0.43%




2012 Total Query Amount 2012 (0 Queries) 0

MINISTRY OF COMMUNITY DEVELOPMENT / SOCIAL SERVICES / MOTHER AND CHILD The Ministry of Community Development and Social Services (becoming the Ministry of Community Development, Mother and Child) ranked 16th in 2010, declining to 7th position in 2011 in terms of the overall AG Report query amounts. The amount of Ministry funds under query also increased, from 12% in 2010 to 18% in 2011. Queries largely related to the misapplication of funds, as well as the lack of monitoring in 2011. However, no queries were reported in 2012, indicating significant improvement in the Ministry.

MINISTRY OF GENDER IN DEVELOPMENT

The Ministry of Gender in Development was established in 2011, hence no queries are reported for 2010. The Ministry ranked 14th in 2011 and 22nd in 2012, improving from 0.8% of the total query amount in 2011 to 0.1% in 2012. The percentage of funds in the Ministry under query also improved dramatically, from 70% in 2011 to 16% in 2012. Weak procurement or contract work was the major issue in 2011 and misapplication of funds was predominant in 2012.

Ministry of Community Development, Mother

& Child Health

Ministry of Gender andChild Development



2011 2012

Ministry0.77%

ZMW 22,725,959

Ministry0.09%

ZMW 670,059,292

MINISTRY OF GENDER IN DEVELOPMENT,AUDITOR GENERAL REPORT QUERY AMOUNTS


Ministry0.67%

ZMW 7,624,886

Ministry1.53%

ZMW 23,812,281


2010 2011

MINISTRY OF COMMUNITY DEVELOPMENT / SOCIAL SERVICES / MOTHER AND CHILD,AUDITOR GENERAL REPORT QUERY AMOUNTS


2010 Total Query Amount 2010 Ministry not established



Unaccounted for funds 4,121,207 34.43%





69.53%


91.16%










15.74%


61.00%

2010

2011

2011

2011

2012

2012





Uncollected debt / funds 7,194,015 21.64%





1,677,081 5.04%

Lack of contract 1,250,801 3.76%


Weak procurement/contract work 455,134 1.37%





2.58%


103.72%




2,509,952 11.44%








Non submission of expenditure returns 208,330 0.95%

Unnecessary rentals 181,765 0.83%




1.64%



106.55%














0.94%


105.72%


Ministry2.92%

ZMW 33,244,754

Ministry1.41%

ZMW 21,947,786

Ministry0.51%

ZMW 16,680,451



2010 2011 2012

MINISTRY OF DEFENCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

Ministry of Defense

MINISTRY OF DEFENCE The Ministry of Defence has ranked in the top ten ministries with highest query amounts in 2010 and 2011, improving to 13th position in 2012. Gradual improvements have been made in the percentage of available funds under query over the three years, from 2.6% in 2010 to 0.9% in 2012. The number of individual queries reported has also decreased over the years. Issues of types of queries have varied, with unaccounted for stores predominant in 2010, weak procurement or contract work predominant in 2011 and uncollected debt or funds highest in 2012.

2010

2011

2012

2011



Total Query Amount 2010 (39 Queries)Ministry of Education

158,340,247








Lack of authority 1,985,157 1.25%


Misappropriation of funds 974,165 0.62%

Failure to follow procurement procedures

713,709 0.45%




Lack of contract 34,647 0.02%




16.18%

Percentage of Budget Released (including funds carried from previous year)

71.62%

Total Query Amount 2010 (15 Queries)Ministry of Science, Technology and Vocational Training

50,229,172










40.15%


83.52%

Total Query Amount 2011 (35 Queries)Ministry of Education

251,089,258











Other 1,032,596 0.41%





117,759 0.05%





19.21%


93.61%

Total Query Amount 2011 (7 Queries)Ministry of Science, Technology and Vocational Training

4,916,229






Other 223,500 4.55%




76.82%


711.07%

Total Query Amount 2012 (40 Queries)Ministry of Education, Science, Vocational Training and Early Education

556,206,909






Non remittance of tax 2,498,917 0.45%





Other 628,712 0.11%


MINISTRY OF EDUCATION, SCIENCE, VOCATIONAL TRAINING AND EARLY EDUCATION The Ministry of Education, Science, Technology and Early Education ranked in the top 5 ministries with highest query amounts for 2010, 2011 and 2012. Data is presented according to the individual ministries in 2010 and 2011 before they combined. However, the combined ministries represented over 18% of the AG Report queries in 2010, over 16% in 2011 and 17% in 2012. Weak procurement or contract work is amongst the highest query amount in all years and ministries, indicating an ongoing problem with project management and implementation. Unvouched expenditure is also a significant query across the years.

Ministry of Education

2010

2011

2012

2011

2011

2010











11.36%


91.44%


Ministry18.30%

ZMW 208,569,418

Ministry16.45%

ZMW 256,005,488

Ministry17.11%

ZMW 556,206,909



2010 2011 2012

MINISTRY OF EDUCATION, SCIENCE, VOCATIONAL TRAINING AND EARLY EDUCATION, AUDITOR GENERAL REPORT QUERY AMOUNTS

Ministry of Informationand Broadcasting







387,030 8.59%




19.60%


72.49%

Total Query Amount 2011 (0 Queries) 0








245,770 2.79%






9.26%


51.83%

MINISTRY OF INFORMATION AND BROADCASTING SERVICES / TOURISM The Ministry of Information and Broadcasting Services (including Tourism in 2012) ranked 24th in 2010 and 14th in 2012 in terms of the overall AG Report query values. Improvement was made in 2011, where no queries were reported, however, the situation declined in 2012, with the main issue being non-submission of expenditure returns. This is compared to predominant issues of weak procurement or contract work in 2010.



2010 2012

Ministry0.40%

ZMW 4,506,149

Ministry0.27%

ZMW 8,812,222

MINISTRY OF INFORMATION AND BROADCASTING SERVICES / TOURISM,AUDITOR GENERAL REPORT QUERY AMOUNTS

2012

2012

2010

2011

2012

2012


YEAR CATEGORY AMOUNTSTotal Query Amount 2010 (4 Queries)Ministry of Finance, National Loans and Investments

210,944,960







12.30%


76.47%

Total Query Amount 2010 (1 Queries)Constitutional and Statutory

193,359,461

Misapplication of funds 193,359,461 100%



11.71%


77.03%

Total Query Amount 2010 (40 Que-ries) Ministry of Finance and National Planning

112,178,946




Lack of contract 10,154,988 9.05%







Other 336,634 0.30%

Irregular drawing of fuel 198,976 0.18%Irregular payment 166,702 0.15%

YEAR CATEGORY AMOUNTSFailure to follow procurement proce-

dures26,457 0.02%



7.82%


86.10%

Total Query Amount 2011 (14 Queries) Ministry of Finance

18,156,757






Weak procurement / contract work 698,228 3.85%





1.05%


109.17%

Total Query Amount 2012 (7 Queries)Ministry of Finance

1,072,046,481

Lack of monitoring 1,049,204,000 97.87%






15.33%


61.52%

MINISTRY OF FINANCE The Ministry of Finance ranked highest in terms of AG Report query amounts in 2010 and 2012 and 12th in 2011. In 2010, the Ministry of Finance comprised both the Ministry of Finance and National Planning and the Ministry of Finance, National Loans and Investments. These two ministries, together with the Constitutional and Statutory fund represented a total of 36.6% of total AG Report queries. This predominantly related to the misapplication of funds and unretired imprest. Queries in 2011 related to unvouched expenditure and unretired imprest, however these issues were resolved in 2012, with queries relating predominantly to lack of monitoring.


Ministry36.64%

ZMW 516,483,367

Ministry1.17%

ZMW 18,156,757

Ministry32.98%

ZMW 1,072,046,481



2010 2011 2012

MINISTRY OF FINANCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

Ministry of Finance

2010

2010

2010

2012

2011

2010




8,797,528

Unaccounted for stores 1,832,815 20.83%Other 1,532,440 17.42%

Lack of contract 1,160,797 13.19%Failure to follow procurement

procedures939,449 10.68%

Misapplication of funds 758,989 8.63%Unretired imprest 497,715 5.66%

Unnecessary rentals 455,600 5.18%Non recovery of loans and advances 274,135 3.12%

Lack of authority 271,404 3.08%Weakness in banking / accounts 270,132 3.07%




Weak procurement/contract work 140,744 1.60%Overpayment 86,963 0.99%

Unaccounted for revenue 21,944 0.25%Unaccounted for funds 9,234 0.10%

Percentage of Total AG Report Queries 0.77%Percentage of Total Available Funds Under Query

8.44%


98.97%


382,897,500

Irregular Payment 366,402,335 95.69%


6,383,090 1.67%



Lack of contracts 883,583 0.23%


Unnecessary rentals 823,989 0.22%


Uncollected debt/funds 784,890 0.20%

Other 761,076 0.20%











219.94%


82.16%


19,097,285,352

Other 5,945,458 31.13%Unnecessary rentals 2,564,044 13.43%

Misappropriation of funds 1,831,462 9.59%Unaccounted for funds 1,730,521 9.06%

Non recovery of loans and advances 1,529,121 8.01%Unvouched expenditure 1,387,690 7.27%


1,002,089 5.25%

Lack of contracts 871,655 4.56%Unretired imprest 654,329 3.43%











9.72%


100.00%

MINISTRY OF FOREIGN AFFAIRS The Ministry of Foreign Affairs ranked 15th in 2010, 1st in 2011 and 11th in 2012 in terms of the percentage of total AG Report query amounts. This indicates a significant decline in 2011, with the amount of Ministry funds under query increasing from 8 % in 2010 to 219% in 2011, largely due to irregular payments. The situation improved in 2012, with around 10% of funds under query, however, the number of individual queries has continued to increase over the 3 years, with the Ministry ranking highest in 2012 in terms of the number of queries. Queries in 2012 were largely outside of the usual categories, relating to a lack of lease agreements as well as missing receipt books and the lack of deployment of salaried officers.


Ministry0.77%

ZMW 8,797,528

Ministry24.59%

ZMW 382,897,500

Ministry0.59%

ZMW 19,097,285,352



2010 2011 2012

MINISTRY OF FOREIGN AFFAIRS, AUDITOR GENERAL REPORT QUERY AMOUNTS

Ministry of ForeignA�airs

2010

2011

2012

2011











Inappropriate provision of imprest 1,575,809 1.26%



Failure to follow procurement proce-dures 334,767 0.27%








Failure to follow procurement proce-dures 273,003,000 89.07%





Unaccounted for stores 64,356, 0.02%






























MINISTRY OF HEALTH The Ministry of Health ranked in the top five ministries in 2010, 2011 and 2012, with some of the highest amount of funds under query in the AG Report. Figures were especially high in 2011, with the Ministry rep-resenting nearly 20% of the total AG Report, however, improvements were made in 2012, with the Ministry representing 7% of query amounts. In both 2010 and 2012, approximately 8% of available funds were under query, however, this increased dramatically to over 1000% of the funds in 2011 due to failure to follow pro-curement procedures for large-scale projects under the responsibility of the Ministry. Weak procurement or contract work was the major issue in 2010 whilst the non-submission of expenditure returns was highest in 2012.

Ministry of Health




2010 2011 2012

Ministry10.94%

ZMW 124,734,484

Ministry19.69%

ZMW 306,518,541

Ministry6.63%

ZMW 215,394,971

MINISTRY OF HEALTH, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2012

2011









270,169 8.61%









3.46%


70.37%










52,902 0.27%



2.17%



94.77%












0.57%


72.83%

MINISTRY OF HOME AFFAIRS The Ministry of Home Affairs ranked 26th in 2010, 11th in 2011 and 17th in 2012 in terms of the overall AG Re-port query amounts. Query amount represented less than 0.3% of the overall AG Report in 2010 and 2012, although this increased by 1% in 2011. However, the amounts of funds under query in the Ministry have remained low and have improved, decreasing from 3% in 2010 to 0.6% in 2012. Unaccounted for stores was the predominant issue in 2010, replaced by issues of weak procurement or contract work in both 2011 and 2012.

Ministry ofHome A�airs




2010 2011 2012

Ministry0.28%

ZMW 3,138,187

Ministry1.24%

ZMW 19,315,744

Ministry0.15%

ZMW 4,849,998

MINISTRY OF HOME AFFAIRS, AUDITOR GENERAL REPORT QUERY AMOUNTS

2011

2010

2012

2011



Total Query Amount 2010 (6 Queries)Ministry of Lands

14,746,349

Wasteful expenditure 7,247,326 49.15%







45.44%


93.50%

Total Query Amount 2011 (15 Queries)Ministry of Energy and Water Development

4,957,676





Other 240,000 4.84%



0.90%


79.87%

Total Query Amount 2012 (17 Queries)Ministry of Lands, Energy and Water

117,186,921


Other 2,557,916 2.18%













41.40%


35.24%

MINISTRY OF LAND, ENERGY AND WATER The Ministry of Land, Energy and Water (formally the Ministry of Lands and the Ministry of Energy and Wa-ter Development in 2010 and 2011) ranked 7th in 2012, with 3.6% of total AG Report queries. The Ministry of Lands ranked 13th in 2010 and the Ministry of Energy and Water Development ranked 18th in 2011. The amalgamation of the two ministries in 2012 resulted in increased amounts of funds coming under query, representing 41% of the total ministry budget. In 2012 this was predominantly due to the non-submission of expenditure returns, however queries in 2010 and 2011 related to wasteful expenditure and weak pro-curement or contract work respectively.

Ministry of Lands,Natural Resources

and Environmental Protection




2010 2011 2012

Ministry1.29%

ZMW 14,746,349

Ministry0.32%

ZMW 4,957,676

Ministry3.61%

ZMW 117,186,921

MINISTRY OF LAND, ENERGY AND WATER, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2012

2012




13,679,204








5.82%


90.04%


16,936,746







Other 337,988 2.00%







11,330 0.07%







8.19%


64.27%


4,662,319




Other 163,618 3.51%









4.66%


103.83%

MINISTRY OF LIVESTOCK AND FISHERIES

The Ministry of Livestock and Fisheries ranked relatively high in the overall AG Report queries, at 14th, 13th and 18th in 2010, 2011 and 2012 respectively. Some improvement was made in 2012, with the Ministry rep-resenting 0.14% of queries compared to 1.20% in 2010. The percentage of available funds under query also reduced from 8% in 2011 to 5% in 2010.

The primary issue in 2010 was with weak procurement or contract work. This again featured highly in 2011 along with wasteful expenditure and unaccounted for stores. Unaccounted for stores was also the predominant issue in 2012.

Ministry of Agricultureand Livestock




2010 2011 2012

Ministry1.20%

ZMW 13,679,204

Ministry1.09%

ZMW 16,936,746

Ministry0.14%

ZMW 4,662,319

MINISTRY OF LIVESTOCK AND FISHERIES, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2011

2012


YEAR CATEGORY AMOUNTSTotal Query Amount 2010 (14 Queries) 29,296,136

Weakness in banking / accounts 13,939,492 47.58%Unaccounted for stores 5,087,173 17.36%

Unvouched expenditure 4,902,187 16.73%Unaccounted for funds 2,730,596 9.32%

Non remittance of tax 1,883,867 6.43%Unretired imprest 428,241 1.46%Irregular payment 231,154 0.79%

Undelivered materials 93,425 0.32%Percentage of Total AG Report Queries 2.57%Percentage of Total Available Funds Under Query 24.11%





Unvouched expenditure 940,413 4.38%Unaccounted for stores 874,182 4.07%


Unretired Imprest 300,725 1.40%Non recovery of loans and advances 188,467 0.88%


YEAR CATEGORY AMOUNTSPercentage of Total AG Report Queries 1.38%




Unvouched expenditure 28,548,637 38.86%Weak procurement / contract work 24,449,784 33.28%

Unretired imprest 6,799,808 9.25%Failure to follow procurement proce-

dures 4,244,089 5.78%

Unaccounted for funds 2,702,327 3.68%Unaccounted for stores 2,285,859 3.11%

Lack of contracts 1,750,852 2.38%



Misapplication of funds 574,221 0.78%Wasteful expenditure 66,500 0.09%




MINISTRY OF LOCAL GOVERNMENT AND HOUSING The Ministry of Local Government and Housing appeared in the top ten ministries with the highest amounts of queries in 2010, 2011 and 2012, representing between 1% and 3% of the total AG Report query amount. Although these figures remain fairly consistent over the three years, there has been some improvement in terms of the percentage of available funds under query, declining from 24% in 2010 to 11% in 2012. The issues affecting the Ministry vary each year, with weakness in banking or accounts highest in 2010, misap-plication of funds highest in 2011 and unvouched expenditure highest in 2012.




2010 2011 2012

Ministry2.57%

ZMW 29,296,136

Ministry1.38%

ZMW 21,460,786

Ministry2.26%

ZMW 73,474,600

MINISTRY OF LOCAL GOVERNMENT AND HOUSING, AUDITOR GENERAL REPORT QUERY AMOUNTS


2011

Ministry0.002%

ZMW 34,482

OFFICE OF THE VICE PRESIDENT,AUDITOR GENERAL REPORT QUERY AMOUNTS

Ministry of LocalGovernment & Housing

O�ce of theVice President



Total Query Amount 2011 (1 Query) 34,482

Unretired Imprest 34,482 100%





OFFICE OF THE VICE PRESIDENT The Office of the Vice President only came under query in 2011, with the lowest percentage of funds under query of all included in the AG report, at 0.002%. No queries were reported in 2010 or 2012.

2010

2011

2012

2011

2011































OFFICE OF THE PRESIDENT: LUSAKA PROVINCE The Office of the President: Lusaka Province ranked relatively low at 20th and 16th in 2010 and 2011 respec-tively in terms of query amounts in the AG Report. However, a high percentage of available funds in each year were under query. Non-submission of expenditure returns and unvouched expenditure were highest in 2010, whilst weak procurement or contract work and unaccounted for stores were the predominant issues in 2011. No queries were reported in 2012, indicating significant improvements.



2010 2011

Ministry0.51%

ZMW 5,844,543

Ministry0.42%

ZMW 6,487,964

OFFICE OF THE PRESIDENT: LUSAKA PROVINCE , AUDITOR GENERAL REPORT QUERY AMOUNTS

O�ce of the President


2010

Ministry0.15%

ZMW 1,697,831

MINISTRY OF MINES AND MINERAL DEVELOPMENT,AUDITOR GENERAL REPORT QUERY AMOUNTS











Percentage of Budget Released (including funds carried from previous year) 72.72%



MINISTRY OF MINES AND MINERAL DEVELOPMENT

The Ministry of Mines and Mineral Development were 28th in terms of query amounts in the AG Report in 2010, representing only 0.15% of total queries, predominantly relating to the misapplication of funds. Since then, significant improvements have been made, resulting in no queries in both 2011 and 2012.

Ministry of Mines, Energyand Water

Development

2011

2011

2010

2010














93.12%








88.41%












91.94%

YEAR CATEGORY AMOUNTS2010 Total Query Amount 2010 (26 Queries) 4,926,735

Unaccounted for stores 1,969,200 39.97%Unretired imprest 1,049,238 21.30%

Weak procurement/contract work 560,989 11.39%Lack of monitoring 471,567 9.57%Irregular payment 286,016 5.81%

Wasteful expenditure 273,215 5.55%Non submission of expenditure returns 122,539 2.49%



Misapplication of funds 63,645 1.29%Overpayment 15,089 0.31%

Non remittance of tax 7,527 0.15%Undelivered materials 6,693 0.14%

Percentage of Total AG Report Queries 0.43%Percentage of Total Available Funds Under Query 14.46%


OFFICE OF THE PRESIDENT: CENTRAL PROVINCE The Office of the President: Central Province ranked in the lowest four in terms of query amounts in the AG Report for 2010, 2011 and 2012, representing less than 0.1% of total queries each year. Unaccounted for and misapplication of funds were the most serious issues in 2010, however these issues did not reoccur in the following two years, with weak procurement or contract work ranking highest in both 2011 and 2011.

OFFICE OF THE PRESIDENT: COPPERBELT PROVINCE The Office of the President: Copperbelt Province ranked 23rd in 2010 and 15th in 2011 and 2012 in terms of query amounts in the AG Report. In all years, queries represented less than 0.5% of the total AG Report. However, the percentage of funds under query has risen from around 14% in 2010 to 39% in 2012, suggest-ing a decline in adherence to regulations and processes. Unaccounted for stores and unretired imprest are the most serious issues in all three years, accounting for 50% or more of the Office query amounts.






2010 2011 2012

Ministry0.09%

ZMW 1,065,608

Ministry0.05%

ZMW 829,904

Ministry0.10%

ZMW 3,211,382

OFFICE OF THE PRESIDENT: CENTRAL PROVINCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2010

2010

2011

2012

2011







Unvouched expenditure 1,233,917 16.23%Failure to follow procurement proce-

dures 550,812 7.25%









YEAR CATEGORY AMOUNTSPercentage of Total Available Funds Under Query 28.57%























94.76%


124.83%










553,909 3.00%







49.36%


86.59%

OFFICE OF THE PRESIDENT: LUAPULA PROVINCE The Office of the President: Luapula Province ranked amongst the lowest in 2010 in 27th position, and higher at 12th position in 2012. No queries were reported in 2011 indicating improvements in the adherence to regulations and processes. Although the Office had a low ranking in 2010 in terms of query amount, 95% of available funds were under query, predominantly relating to issues of unretired imprest and unvouched expenditure. Despite the improvements in 2011, the Office again had nearly half of available funds under query in 2012, with 34 individual queries., predominantly relating to the misapplication of funds and weak procurement or contract work.




2010 2012

Ministry0.21%

ZMW 2,346,426

Ministry0.57%

ZMW 18,453,079

OFFICE OF THE PRESIDENT: LUAPULA PROVINCE,AUDITOR GENERAL REPORT QUERY AMOUNTS




2010 2011 2012

Ministry0.43%

ZMW 4,926,735

Ministry0.49%

ZMW 7,601,561

Ministry0.25%

ZMW 7,974,106

OFFICE OF THE PRESIDENT: COPPERBELT PROVINCE , AUDITOR GENERAL REPORT QUERY AMOUNTS

2012

2010 20

12

2011

2011

2012











Total Query Amount 2011 (19 Que-ries) 1,691,511









Lack of contracts 10,000 0.59%











OFFICE OF THE PRESIDENT: EASTERN PROVINCE The Office of the President: Eastern Province has a low proportion of queries in relation to the AG Report, representing 0.1% of the total query amount in 2010 and 2011, and improving to 0.01% in 2012 with only two queries. The Office ranked in the lowest three in terms of query amounts for each of the years in ques-tions. Issues of unretired imprest and unaccounted for stores were highest in 2010 and 2011, however these issues did not reoccur in 2012, with the focus instead on overpayment.

















OFFICE OF THE PRESIDENT: NORTH WESTERN PROVINCE The Office of the President: North Western Province, ranked 17th in 2010, 21st in 2011 and 10th in 2012 in terms of query amounts. Each year, the Office has represented less than 1% of the total AG Report queries. However, it is clear that improvements were made in 2011, with the Office decreasing to only 0.13% of the total AG Report query amount compared to around 0.6% in other years. The percentage of available funds under query was also much lower in 2011, at 21%, compared to 44% in 2010. However, this increased to 52% in 2012 and the number of individual queries rose significantly from 7 in 2011 to 29 in 2012 suggesting a decline in adherence to regulations. Whilst issues of unretired imprest and unvouched expenditure were highest in 2010 and 2011, weak procurement or contract work was most predominant in 2012, accounting for nearly 70% of total queries.





2010 2011 2012

Ministry0.10%

ZMW 1,128,869

Ministry0.11%

ZMW 1,691,511

Ministry0.01%

ZMW 343,166

OFFICE OF THE PRESIDENT: EASTERN PROVINCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2010

2011

2012

2011

2010























OFFICE OF THE PRESIDENT: NORTHERN PROVINCE The Office of the President: Northern Province has made improvements since 2010. Although ranking low at 25th in terms of query amounts in 2010, with less than 0.5% of the total AG Report queries, over a third of the total available funds were under query, predominantly relating to unvouched expenditure and unretired imprest. The Office had no queries in 2011, and much lower query amounts in 2012 than 2010, representing 0.09% of total AG Report queries. This amounted to 5.43% of the total Office available funds, considerably lower than in 2010.

































2010 2012

Ministry0.32%

ZMW 3,595,919

Ministry0.09%

ZMW 2,825,060

OFFICE OF THE PRESIDENT: NORTHERN PROVINCE, AUDITOR GENERAL REPORT QUERY AMOUNTS




2010 2011 2012

Ministry0.58%

ZMW 6,556,832

Ministry0.13%

ZMW 1,995,569

Ministry0.61%

ZMW 19,881,002

OFFICE OF THE PRESIDENT: NORTH WESTERN PROVINCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

2012

2011

2012

2012

2010

2012


YEAR CATEGORY AMOUNTSTotal Query Amount 2010 (31 Queries) 5,071,391

Unaccounted for stores 1,750,139 34.51%Unretired imprest 1,595,285 31.46%

Non recovery of loans and advances 438,166 8.64%Misappropriation of funds 234,430 4.62%

Irregular drawing of fuel 212,478 4.19%Failure to follow procurement

procedures 206,760 4.08%Unvouched expenditure 200,115 3.95%

Wasteful expenditure 163,493 3.22%Misapplication of funds 155,183 3.06%

Weak procurement/contract work 77,423 1.53%Irregular payment 37,920 0.75%




91.56%

Total Query Amount 2011 (29 Queries) 2,511,082Unretired Imprest 792,792 31.57%

Weak procurement / contract work 706,152 28.12%Misapplication of funds 338,834 13.49%












103.26%

Total Query Amount 2012 (21 Queries) 4,101,636Weak procurement / contract work 2,062,677 50.29%

Misapplication of funds 813,028 19.82%Unaccounted for stores 520,688 12.69%


Non recovery of loans and advances 181,138 4.42%Non remittance of tax 70,093 1.71%

Irregular drawing of fuel 43,621 1.06%Unvouched expenditure 24,863 0.61%




102.40%

OFFICE OF THE PRESIDENT: WESTERN PROVINCE The Office of the President: Western Province has ranked between 19th and 21st in the ministries with high-est amounts of queries, representing less than 0.5% of total query amounts each year.Issues of unretired imprest are amongst the highest in 2010 and 2011, and weak procurement or contract work was predominant in 2011 and 2012 suggesting a continuation of problems with imprest processes and the implementation of projects.



Total Query Amount 2010 (27 Queries) 6,304,154Misapplication of funds 2,059,387 32.67%

Unretired imprest 1,992,317 31.60%Inappropriate provision of imprest 879,954 13.96%



Weak procurement/contract work 301,850 4.79%Unaccounted for stores 170,024 2.70%

Irregular drawing of fuel 125,169 1.99%Other 54,400 0.86%


OFFICE OF THE PRESIDENT: SOUTHERN PROVINCE The Office of the President: Southern Province ranked 18th in 2010 and 16th in 2011 and 2012 in terms of query amounts, representing less than 1% of all queries each year.Misapplication of funds represented the highest query amounts for the Office in both 2010 and 2011 whilst issues with unaccounted for stores were highest in 2012. The Office had a relatively high number of indi-vidual queries each year, ranging from 25 to 42, suggesting that although the amount of funds under query is low in comparison to the overall AG Report, there are repeated instances of non-compliance with The Financial Regulations.





2010 2011 2012

Ministry0.44%

ZMW 5,071,391

Ministry0.16%

ZMW 2,511,082

Ministry0.13%

ZMW 4,101,636

OFFICE OF THE PRESIDENT: WESTERN PROVINCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2010

2012

2011

2010




Unaccounted for funds 18,000 0.29%Non submission of expenditure returns 13,296 0.21%

Non remittance of tax 13,133 0.21%Misappropriation of funds 8,885 0.14%


Percentage of Total AG Report Queries 0.55%Percentage of Total Available Funds Under Query

27.04%


97.72%


Misapplication of funds 2,942,375 39.41%Irregular drawing of fuel 1,166,670 15.63%Unaccounted for stores 1,007,412 13.49%

Unretired Imprest 630,228 8.44%Failure to follow procurement

procedures616,923 8.26%

Unvouched expenditure 495,896 6.64%Unaccounted for funds 287,834 3.86%




Lack of contracts 22,635 0.30%Weak procurement / contract work 22,380 0.30%



Wasteful expenditure 5,100 0.07%Lack of authority 4,500 0.06%



20.80%


90.34%

Total Query Amount 2012 (25 Queries) 6,985,395Unaccounted for stores 1,972,174 28.23%

Unretired imprest 1,303,759 18.66%Unvouched expenditure 973,245 13.93%





Lack of monitoring 234,180 3.35%Inappropriate provision of imprest 154,384 2.21%






16.95%


73.80%













PUBLIC SERVICE MANAGEMENT DIVISION The Public Service Management Division ranked 10th in terms of query amounts in the AG Report 2010, representing 2% of total queries. Queries related predominantly to unvouched expenditure and irregular payments. No queries were reported in 2011 or 2012.


2010

Ministry2.18%

ZMW 24,838,149

PUBLIC SERVICE MANAGEMENT DIVISION,AUDITOR GENERAL REPORT QUERY AMOUNTS




2010 2011 2012

Ministry0.55%

ZMW 6,304,154

Ministry0.48%

ZMW 7,465,387

Ministry0.21%

ZMW 6,985,395

OFFICE OF THE PRESIDENT: SOUTHERN PROVINCE, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2011

2011

2012

2010



Total Query Amount 2010 (15 Queries)Ministry of Works and Supply 55,757,908

Weakness in banking / accounts 24,159,942 43.33%













Total Query Amount 2010 (6 Queries)Ministry of Communications and Transport

21,418,630









Total Query Amount 2011 (9 Queries)Ministry of Communication and Transport

190,361,761









Total Query Amount 2012 (16 Queries)Ministry of Transport, Works, Supply and Communications

56,998,745





Other 1,969,685 3.46%







MINISTRY OF TRANSPORT, WORKS, SUPPLY AND COMMUNICATIONS The Ministry of Transport, Works, Supply and Communications (formerly the Ministry of Communications and Transport and the Ministry of Works and Supply in 2010 and 2011) ranked 9th in 2012 with 1.75% of the total AG Report queries. In 2010, both the Ministry of Communications and Transport and the Ministry of Works and Supply appeared in the AG Report representing a combined total of 6.77% of the total query amount. The Ministry of Works and Supply improved in 2011, and did not appear in the report, however the Ministry of Communications and Transport declined, representing 12.23% of the total query amount. The amount of funds under query in this ministry represented 116% of the total funds. This was largely due to weak procurement or contract work with amounts involved in procurement and tender procedures over and above the funds available, indicating poor project management and implementation. Weak procurement and contract work was similarly the predominant concern in 2012 for the newly combined ministry, and failure to follow procurement procedures was a concern for both ministries in 2010, indicating an ongoing problem.

Ministry of TransportWorks and Supply




2010 2011 2012

Ministry6.77%

ZMW 77,176,538

Ministry12.23%

ZMW 190,361,761

Ministry1.75%

ZMW 56,998,745

MINISTRY OF TRANSPORT, WORKS, SUPPLY AND COMMUNICATIONS, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2010

2012

2011




2010 2012

Ministry0.44%

ZMW 4,984,666

Ministry4.11%

ZMW 133,602,069

MINISTRY OF SPORT, YOUTH AND CHILD DEVELOPMENT / LABOUR,AUDITOR GENERAL REPORT QUERY AMOUNTS













84.53%



Failure to follow procurement procedures 113,288,342 84.80%






Other 1,353,119 1.01%





83.74%

MINISTRY OF SPORT, YOUTH AND CHILD DEVELOPMENT / LABOUR The Ministry of Sport, Youth and Child Development (becoming the Ministry of Labour, Youth and Sport in 2012) ranked low in 22nd place in 2010 in terms of query amounts in the AG Report. Significant improvements were made, resulting in no queries in 2011, however, this then declined with the Ministry ranking high in 6th place in 2012, representing 4% of total query amounts in the AG Report. The amount under query comprised 81% of total funds available to the ministry, predominantly relating to failures in following procurement procedures.

Ministry of Youthand Sport

MINISTRY OF TOURISM, ENVIRONMENT AND NATURAL RESOURCES The Ministry of Tourism, Environment and National Resources ranked 19th in 2010, representing 0.5% of total queries raised in the AG Report. Departments contained within the ministry were re-shuffled and linked to alternative ministries following 2010. Misapplication of funds was the highest query category.

Ministry of Tourismand Arts














8.83%


30.16%


Total Query Amount 2011 Reclassified – no longer in operation

Total Query Amount 2012 Reclassified – no longer in operation


Ministry0.51%

ZMW 5,856,819

2010

MINISTRY OF TOURISM, ENVIRONMENT AND NATURAL RESOURCES, AUDITOR GENERAL REPORT QUERY AMOUNTS

2010

2012

2012

2010

2011

2012


S U M M A R Y

0102030405060708033

.0%

20.6

%

17.1

%

7.2%

6.

6%

4.1%

3.

6%

2.3%

1.

8%

0.6%

0.

6%

0.6%

0.

5%

0.3%

0.

2%

0.2%

0.

1%

0.1%

0.

1%

0.1%

0.

1%

0.1%

0.

0%

Num

ber o

f ind

ivid

ual q

ueri

es

Number of individual queries

Key --- P

erce

ntag

e of

tota

l am

ount

of q

ueri

es

Fina

nce

Agric

ultu

re /

Coop

erat

ives

Min

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y of

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ucat

ion

Just

ice

Hea

lthSp

ort /

You

th

/ Lab

our

Land

s, E

nerg

y an

d W

ater

Loca

l Go

vern

men

t an

d H

ousi

ng

Tran

spor

t, W

orks

, Su

pply

OP

- Nor

th

Wes

tern

Fore

ign

A�ai

rsO

P - L

uapu

laDe

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form

atio

n /

Tour

ism

OP

- Co

pper

belt

OP

- So

uthe

rnH

ome

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rsLi

vest

ock

/ Fi

sher

ies

OP

- W

este

rnO

P -

Cent

ral

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- N

orth

ern

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erO

P - E

aste

rn

Num

ber o

f Ind

ivid

ual Q

uerie

s vs.

Per

cent

age

of T

otal

201

2 Q

uery

Am

ount

Acc

ordi

ng to

Min

istr

y, 2

012

Sou

rce:

Ad

apte

d b

y P

olic

y M

onit

orin

g a

nd

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earc

h C

entr

e (P

MR

C),

201

4 fr

om R

enew

able

Fu

els

Ass

ocia

tion

(R

FA).

•

The

Min

istr

y of

Fin

ance

had

the

high

est a

mou

nt o

f que

ries

in th

e AG

Rep

ort,

repr

esen

ting

33%

of t

he to

tal q

uery

am

ount

, how

ever

they

had

onl

y 7

indi

vidu

al q

uerie

s.

•

The

Min

istr

y of

For

eign

Affa

irs re

pres

ente

d on

ly 0

.6%

of

the

tota

l AG

Repo

rt q

uery

am

ount

but

had

the

high

est

amou

nt o

f ind

ivid

ual q

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s, w

ith 7

6.


Table 1: Definitions of Categories Used in Auditor General Report Analysis

CATEGORY DEFINITION


Non-compliance with the ZPPA Act and Procurements Guidelines in the purchase of goods and supplies. This includes the lack of correct tender process and not obtaining competitive quotes

Inappropriate provision of imprest

Provision of imprest to officers who still have not returned previous imprest, or who are not entitled

Irregular drawing of fuel

Drawing fuel without authorisation, claiming fuel allowances twice through different systems, drawing fuel for incorrect vehicles

Irregular payment

Payments made outside the normal practice or acceptable regulations or norms, this includes payments or allowances inappropriately distributed, or above allocated amounts

Lack of contracts Lack of contracts, incomplete contracts for staff, workforce, project etc

Lack of monitoring No monitoring or assessment carried out when required for a project

Misapplication of funds

Use of funds budgeted for a programme on an unrelated programme without authority from the Secretary to the Treasury

Misappropriation of funds

Use of public funds for personal purposes or crediting public funds to a private bank account

Non recovery of loans and advances

Failure to effect recovery of loans or advances

Non remittance of tax Non payment of tax / PAYE etc

Non submission of expenditure returns

No details provided on expenditure, funds disbursed for a particular project or item but no further information provided

Other All remaining queries

Overpayment Payments made above the normal price charged

Unaccounted for funds

Failure to properly account for funds, missing from an account, no explanation of where funds have been spent or why withdrawn

Unaccounted for revenue

Revenue not banked, not properly transferred or accounted for

Unaccounted for stores

Lack of receipt and disposal details for goods procured. Includes both fuel and stores

Uncollected debt / funds

Fees or monies due not collected, effectively reducing funds available

Undelivered materials

Materials not delivered to appropriate place when already paid for, or items not collected

Unnecessary rentals

Payment for rent when other structure available and not used

Unretired imprest

Failure to retire funds or monies issued out to facilitate payments of a minor nature when the officer is travelling on duty or to facilitate the purchase of goods and services whose value cannot be ascertained

Unvouched expenditure

Payment vouchers not availed for audit because they are either missing or inadequately supported. This includes the lack of payment voucher, lack of signed payment voucher, no receipts backing up payment voucher, no other supporting documents for an expenditure

Wasteful expenditure Expenditure incurred when there is no benefit derived

Weak procurement / contract work

Failure to implement a project, delays in projects, poor workmanship resulting in faults (structures / roads etc)

A P P E N D I X A

ANALYSIS BY MINISTRY

During the time period under review (2010-2012), ministerial and departmental changes were made, as indicated below:

§ The Ministry of Communications and Transport and Ministry of Works and Supply were separate in 2010 and 2011 but merged to form the Ministry of Transport, Works, Supply and Communications in 2012.

§ The Ministry of Education and The Ministry of Science, Technology and Vocational Training were separate in 2010 and 2011 but merged to form the Ministry of Education, Science, Vocational Training and Early Education in 2012.

§ The Ministry of Finance and National Loans and In-vestment and The Ministry of Finance and National Planning were separate in 2010 but merged to form the Ministry of Finance in 2011 and 2012.

§ The Ministry of Lands and The Ministry of Energy and Water Development were separate in 2010 and 2011 but merged to form the Ministry of Lands, Energy and Water in 2012.

§ Child Development was included in the Ministry of Sport, Youth and Child Development in 2010 however these became the Ministry of Gender and Child Development and the Ministry of Labour, Sport and Youth in 2012.

§ Tourism was included in the Ministry of Tourism, Environment and Natural Resources in 2010 however this joined the Ministry of Information, Broadcasting and Tourism in 2012.

For the purposes of analysis across 2010-2012, these minis-tries have been grouped together to ensure similar minis-tries are compared between years

ANALYSIS BY CATEGORY

Queries in the Auditor General’s Report are grouped into cer-tain areas under each ministry in order to explain the type of issue or reason for loss of public funds. Each year, an exec-utive summary is produced in the Auditor General’s Report highlighting the fourteen major categories of queries as-sessed. However, this executive summary does not include everything listed in the report. A more comprehensive cate-gorisation of queries was required to incorporate all aspects of the report, drawing on definitions from the report where possible, and including additional categories where neces-sary. Table 1 below provides the total categories and defini-tions used when assessing queries from the 2010, 2011 and 2012 reports. This is especially relevant given that it was not always clear how the auditor general’s definitions had been applied.


N O T E S


AUDI

TOR

GEN

ERAL

REP

ORT

: PM

RC IN

DEP

TH

MIN

ISTE

RIAL

AN

ALYS

IS


Unlocking Zambia's PotentialCorrespondence on this Analysis can be sent to:[email protected]

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