Budgeting MoH. There Substantial Project budget plans to be prepared in Moderate are huge variances sufficient detail and be used as a between the budgeted and management tool. The IFRs will be actual expenditure. used to monitor variance analysis Expenditure outside the with budget. Both the MoH and approved budget. VMA will be expected to adhere to the budgeting process and execution. Accounting and Substantial The MoH installed Navision Substantial Information system. Accounting system for all project Inability for the MoH to accounting. manage the Project ToRs for the VMA and IVEA include Accounts with sound adequate FM provisions. systems, which will slow down the project activities. Staffing at MoH may be Substantial Project accountant is qualified and Moderate stretched to implement experienced in Bank funded projects. the requisite control Recruitment of accounts assistant procedures as intended underway. The VMA will employ such as accounting and adequate and qualified accounting internal controls staff to manage the project and put in place the required controls. Delays in Funds will be paid to the VMA Funds Flow Substantial Moderate disbursing funds to the directly from the DA when it VMA. Delays in becomes operational. effecting payments to suppliers and contractors. Reporting- financial The project reports will be verified by Substantial Moderate information may be the IVEA. The VMA will submit unreliable and submitted report to MoH for consolidation late. within 30 days after end of each quarter. Internal control: The High The project is based on OBA model Substantial MoH lacks a and will not advance funding to MoH comprehensive fixed entities to implement project assets register and may activities. lose track of assets The MoH is developing a fixed assets procured under the and enforcement of advances project. There are regulations. The Internal Audit weaknesses in the department will incorporate the management of advances. project in their annual work plans. Delays in submitting The VMA will ensure there are internal audit reports strong internal control requirements.
Budgeting MoH. There are huge variances between the budgeted and actual expenditure. Expenditure outside the approved budget. Substantial Project budget plans to be prepared in sufficient detail and be used as a management tool. The IFRs will be used to monitor variance analysis with budget. Both the MoH and VMA will be expected to adhere to the budgeting process and execution. Moderate Accounting and Information system. Inability for the MoH to manage the Project Accounts with sound systems, which will slow down the project activities. Substantial The MoH installed Navision Accounting system for all project accounting. ToRs for the VMA and IVEA include adequate FM provisions. Substantial Staffing at MoH may be stretched to implement the requisite control procedures as intended such as accounting and internal controls Substantial Project accountant is qualified and experienced in Bank funded projects. Recruitment of accounts assistant underway. The VMA will employ adequate and qualified accounting staff to manage the project and put in place the required controls. Moderate Funds Flow Delays in disbursing funds to the VMA. Delays in effecting payments to suppliers and contractors. Substantial Funds will be paid to the VMA directly from the DA when it becomes operational. Moderate Reporting- financial information may be unreliable and submitted late. Substantial The project reports will be verified by the IVEA. The VMA will submit report to MoH for consolidation within 30 days after end of each quarter. Moderate Internal control: The MoH lacks a comprehensive fixed assets register and may lose track of assets procured under the project. There are weaknesses in the management of advances. Delays in submitting internal audit reports High The project is based on OBA model and will not advance funding to MoH entities to implement project activities. The MoH is developing a fixed assets and enforcement of advances regulations. The Internal Audit department will incorporate the project in their annual work plans. The VMA will ensure there are strong internal control requirements. Substantial
842950PAD0P1440ucherPADFinal0Oct03.docx