Constituency Development Fund Audit Report Findings
"Discover the audit findings of the Constituency Development Fund (CDF) program, highlighting issues such as inadequate risk management, disbursement anomalies, and lack of monitoring. Explore how funds were mismanaged and projects were not effectively overseen, raising concerns of transparency and accountability."
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Presentation Transcript
COMPLIANCE AUDIT REPORT CONSTITUENCY DEVELOPMENT FUND
Background The Constituency Development Fund (CDF) provides Members of Parliament (MPs) with financial resources to execute approved social and economic programmes within their constituencies.
AUDIT OBJECTIVE We conducted the audit of the CDF to determine: Whether management implemented the necessary controls. Whether Constituency Program (CDFPMU) were conducted in a transparent and effective manner. the activities Development Management of the Fund Unit
The OPM/CDFPMU did not have an effective risk management system or fraud prevention plan.
Disbursement Anomalies The OPM/CDFPMU did not have an effective system in place to ensure that a periodic reconciliation of all CDF disbursements was undertaken in a timely manner to identify anomalies.
Disbursement Anomalies Funds disbursed relating to 46 constituencies for the period 2015/2016 to 2019/2020 exceeded approved budget by $85.39 million. Funds disbursed under the Prime Minister Difference disbursement between OPM and CDFMU records of $220M Assistance Programme exceeded budgetary provisions by $56.7M.
Inadequate monitoring of CDF projects The OPM/CDFPMU did not effectively monitor the implementation of all CDF projects to ensure that the planned targets and objectives were achieved. Projects in six constituencies were not monitored for two years.
Educational Development Projects No objective criteria or documented guidelines in place to ensure that Educational Development Projects were administered in a transparent and equitable manner. Payments totalling $860,850 on behalf connected parties. $2,465,900 to offset educational expenses at private educational institutions. Employee who was actively involved in the implementation of CDF projects received $190,000 to offset the cost of a postgraduate degree. Family members of a constituency office employee received $1,170,000. Relative of a Member of Parliament (MP) received $670,850 from MP s CDF to offset the cost of a bachelor s degree. Child of CDFPMU employee received $92,000.
WHAT SHOULD BE DONE
RECOMMENDATIONS Develop an effective risk management system Strengthen monitoring function Improve Transparency Ensure that there is an effective risk management system in place to identify, monitor and manage material risks. Establish objective criteria and clear guidelines for the implementation of Educational Development Projects. Ensure that all CDF projects and activities are effectively implemented.
