Aga Khan Foundation (Pakistan)

Internal Audit Department

Follow-up Template

Institutio
Ref.No Audit Name n (s) Year Issue Risk
6.1.1
1
ERRP AKESP 2011 Medium

1.1.3 2
GB-EDIP AKU- 2012 Medium
IED/AKF(P)/
AKES,P

1.1.5 2
GB-EDIP AKF(P)/ 2012 Medium
FOCUS/AKE
S,P
1.1.7 2
GB-EDIP AKES,P/AKF 2012 Low
(P)

1
Emergency Response & Recovery Programme in GBC and Sindh
2
Gilgit Baltistan - Education Development Improvement Programme
Issue Subject Issue
Outsourcing Repair work of 4 schools (included in AKDN ERRP)
contract is being carried out by AKPBS,P; however, this
arrangement is yet to be formalized in form of an
agreement between AKES,P and AKPBS,P. Formal
contract safeguards both the entities for clarity in
partnership terms to avoid potential disputes,
which is in line with good business practices,.

Activities for List of schools under flood response project (to be

Flood Affected implemented during July 2010– June 2011) was
Schools finalized by AKF(P) on July 30 2011, due to time
spent on process of reconciling identified schools
with the list of schools approved under EDIP as
well as development of school level work plan with
corresponding budget. Furthermore, due to
multiple donor intervention being undertaken in
GB at that time, the AusAID decided in June 2011
that in the situation of schools being provided
multiple funds by other donors for infrastructure
Unbudgeted purpose,
a) AKES,PEDIP would notfour
has procured undertake infrastructure
Digital Cameras
Procurement amounting to Rs 101,234 whereas onlyinone
related work. This ultimately resulted delay
wasto
of Assets carry out activities from partners’ end
budgeted to the tune of Rs. 20,000. We are of as depicted
below:
concern that aforesaid change in budgeted
AKU-IED
quantities of assets is contradictory to the clause
a) 4 out
# 6.1 of of 10 schools
Donor have not been provided with
Agreement.
uniforms till date of our
b) FOCUS has procured two review i.e. cameras
digital 16 Decemberfor Rs
2011. We have been informed that
48,680; however, the same were not budgeted uniforms to
eight schools have been delivered by 31
which is contradictory to the clause # 6.1 of Donor
December,
Agreement.2011 and the
We were rest will
informed beAKF(P)
that provided
wasin
January 2012 as schools were closed
taken in loop by exchange of emails between for winter
vacations.
Finance Departments of both FOCUS and AKF(P).
b) Total 8 flood
Thereafter with affected schools of
verbal approval were provided
Project
furniture in
Manager, December
cameras were2011 i.e. after
procured lapse of
in replacement
around 6 months.
of fax machines.
 Change in a) Four Schools (three from Government and one
Schools from AKES,P) were changed subsequently
apparently by AKES,P through bilateral
communication with the Government Education
Department whereby new added Government
schools were formally approved. However, AKF
was not timely informed though AKES,P had
informed AKF(P) and other partners subsequently.
b) AKF(P) was informed after the above-mentioned
change was already effected. Furthermore, this
change has not been communicated to the donor
as yet. However, we were informed that this
update will be part of the Year 2 progress report to
BC and Sindh
be sent in August 2012.
ent Programme
 Total Open
4 2

Recommendation / Action Agreed Upon Management Response

Management would formalize the
outsourcing arrangement with AKPBS,P.

a) AKF(P) and partners reviewed the work

plans in the light of AusAID’s decision vis-à-
vis other donors working in GB under post-
flood scenario.
b) Through AKF(P) intervention, the AKU-
IED retrofitting was formally discussed and
handed over to AKPBSP for implementation
in December 2011 for completion by early
February 2012.

c) AKF(P) would ensure timely sharing of

information
AKF(P) wouldwith partners.
take up this matter with
d) AKU-IED & AKES,P: Management
FOCUS and AKES,P, moreover, list ofwould
assets,
take appropriate measures to achieve
acquired apart from those detailed in the
targets
budget, as envisaged
would in the and
be prepared budget / plan
shared with
which would ultimately help achieve
the donor for information or post facto overall
project deliverables timely.
approval.
a) AKES,P would consult with AKF(P) for any
change required in the earlier supplied
information to the donor to ensure
contractual and/or programme compliance.
b) AKF(P) would formally share this change
with the donor as part of contractually
stipulated annual report due in August
2012.
 Noted Closed
0 2
2 0 2
50%
0% Open Noted Closed
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Actual
Target Actions taken for Completion
Date Action Owner Implementation Date
4th Quarter CFO 2011
of 2011

1) AKF(P): 1) AKF(P): Project Retroffting of Pre June is

Noted Manager completed. Major work of
2) AKU-IED: 2) AKU-IED: repair and maintenance has
Done Project been done in all the flood
3) AKES,P: Coordinator effected schools but miner
June 2012 3) AKES,P: Project work is being done. Uniform
Coordinator were provided to the schools
in Feb 2012 and agreement
with Nabiullah was done but
due to using sub-standard
material the committee
1-Aug-12 1) FOCUS: rejected
AKES, the consignment.
P EDIP is functioning in
Programme Now the vendor
four regions situatedhas prepared
far from
Manager furniture in accordance with
each other. It was not possible
2) AKES,P: Project the given
for the standard
EDIP amd
field staff to
Coordinator guidelines that we
document EDIP activitiesare going
with
to provide to the schools.
3) AKF(P): Project one camera but needed one in
Manager each region i.e.Chipursan,
Ishkoman, Gupis and Yasin.
List of assets already with
AKF,P
1) AKES,P: 1) AKES,P: Project The process of changing the Nov 28-12
Noted Coordinator double intervention schools
2) AKF(P): 2) AKF(P): Project was started by sharing the
August 2012 Manager issue with AKF first from
where we got verbal
instructions to consult with the
concerned authorities of GB.
To this end, we held meetings
with Secretary Education,
Director Education and Deputy
Director Education based on
which the schools were
changed. The EMIS was
updated with the new list of
schools for which schools
codes where given by the AKF
and also the letters of Director
and Deputy Director Education
for changing the schools have
been submitted to AKF for the
record.
 Closed
00%

Revised Status
Completio (Open /
n Date Closed)
Closed

Dec 30-12 Open

AKF,P Open
finance
Closed

4
 Status
Count of Issue (Open / Issue
Subject Closed) Risk

Closed
Year Institution (s) Audit Name High Medium Low
2012 AKPBS,P GB-EDIP
AKPBS,P Total
AKRSP CCSP
AKRSP Total
FOCUS GB-EDIP
FOCUS Total
AKHSP CCSP
AKHSP Total
AKESP GB-EDIP 2
AKESP Total 2
AKF(P) GB-EDIP
STEP
CCSP
Surprise Cash Audit -
AKF Admin
Surprise Cash Audit -
AKF Finance
Surprise Cash Audit -
AKF Helicopter
Operations
AKF(P) Total
CSRC GB-EDIP
CSRC Total
AKU-IED GB-EDIP 2
STEP 1
AKU-IED Total 3
AKU-IED/AKF(P) GB-EDIP 1
AKU-IED/AKF(P) Total 1
AKU-IED/AKF(P)/AKES,P GB-EDIP
AKU-IED/AKF(P)/AKES,P Total
FOCUS/ AKPBS,P GB-EDIP 1
FOCUS/ AKPBS,P Total 1
AKF(P)/ FOCUS/AKES,P GB-EDIP
AKF(P)/ FOCUS/AKES,P Total
AKPBS,P/CSRC GB-EDIP
AKPBS,P/CSRC Total
AKES,P/AKF(P) GB-EDIP
AKES,P/AKF(P) Total
AKU-HDP GB-EDIP