Auditor-General's Office (AGO) Audit Report 2018

[kdash]

lets see how things develop...

[DACH]

It's an honest mistake.

Let's move on. 

[Kopites]

It's an honest mistake.

Let's move on.

no worry no worry.

 

we will set up a committee to look into our procurement process. so public fund will not be abuse and put into better use.

[Watwheels]

If regular folks abuse govt funds, fine dunno how many times plus jail term. Double standard.

[Sdf4786k]

I believe its just an observation and not serious enough to warrant a CBT breech to look into.

 

 

[Sosaria]

These are irregularities, no solid proof to determine actual criminal act. So it's just internal disciplinary action, tightened procedures and oversight.

 

And ultimately, it is always said that the people involved made no financial gain from the whole thing. There was some urgency to the procurement and to jump through all the hoops would take too much time. Maybe this is something to look into more closely.

 

But the amounts are pretty big, like 100k above. Raises eyebrows, certainly.

[Vratenza]

I hope those involved gets the full brunt of the law......especially the one that went out of his/her way to travel back to the other country a further few more times alone (without the initial accompanying colleague) to make cash sales purchase. If it is not deliberate, I don't know what is.

[Wt_know]

win liao lor

 

https://www.todayonline.com/singapore/auditor-general-flags-lapses-contract-management-it-controls-and-financial-processes

Edited July 18, 2018 by Wt_know

[Vratenza]

Indeed.. win liao.... especially the part about the backdating and creation of previously non-existent documents are not falsifying....

 

Like that any business/individual can don't declare taxable income till IRAS comes knocking and then submit. If not caught they get away scott free.

 

win liao lor

 

https://www.todayonline.com/singapore/auditor-general-flags-lapses-contract-management-it-controls-and-financial-processes

 

[Wt_know]

every time under declare income ... IRAS come knocking

sorry ... i forgot to declare (ahem) and i have no intention of "cheating" ....

 

Indeed.. win liao.... especially the part about the backdating and creation of previously non-existent documents are not falsifying....

 

Like that any business/individual can don't declare taxable income till IRAS comes knocking and then submit. If not caught they get away scott free.

 

Edited July 18, 2018 by Wt_know

[Weez911]

[Carbon82]

Same same but different...      

 

- Single bidder (AHTC vs NEA vs PA)

- Overpayment / service not rendered (AHTC vs PA vs SCDF vs MINDEF)

- Falsifying maintenance records (SMRT vs SCDF)

- Payment not collected (AHTC vs ICA)

 

 

More details => People's Association (PA)

 

Auditor-General report: Lapses in People's Association's procurement, welfare assistance management

 

SINGAPORE: The People's Association (PA) was flagged for various lapses in the latest report by the Auditor-General's Office (AGO) for the financial year of 2017/2018 released on Tuesday (Jul 17). 

 

These included lapses in procurement for festive street light-ups and the management of welfare assistance schemes.

 

The AGO report also said there were "serious weaknesses in controls over overseas purchases and payments which could be exploited."

 

LAPSES IN PROCUREMENT FOR STREET LIGHT-UPS

 

PA and one of its grassroots organisations failed to adhere to Government procurement principles of open and fair competition, transparency and value for money for two tenders and four quotations, AGO noted in its report. 

 

The tenders, worth S$500,000, were for the manufacture of decorative items for street light-ups for Mid-Autumn Festival 2016 and Chinese New Year 2017.

 

The two tenders for both street light-ups were awarded to the same overseas manufacturer, who had been awarded the contracts every year since 2014. 

 

In its proposal for the Mid-Autumn Festival 2016 light-up, the company had listed additional costs including accommodation for its workers during their stay in Singapore, transportation charges for materials and the provision of a site for assembling lanterns. 

 

However, the grassroots organisation did not consider these additional costs on top of the tender price in its evaluation when comparing the price for the proposals. 

 

The same company was also the sole bidder for the Chinese New Year 2017 light-up, and similarly included additional cost items that the grassroots organisation did not mention when seeking approval for the tender. 

 

AGO found in its report that the grassroots organisation should have included the costs of the additional items in the price comparison so that all tender offers could be evaluated on the same basis. 

 

"Besides the issue of fairness, there was also no assurance that the contract was awarded to the tenderer which could provide the best value," it stated. 

 

In addition, the grassroots organisation accepted the proposal from the company after the specified closing time for the Chinese New Year 2017 light-up tender, and allowed the company to revise its proposals and bid price after the tender had closed. 

 

While AGO noted that there was only one bidder for this tender, it said that accepting the submission of late tender proposals and allowing the company to amend its proposals and bid price after the closure of the tender went against the principles of open and fair competition as well as transparency. 

 

"Such lapses could lead to allegations of unfairness," it said. 

 

The contracts signed with the overseas tenderer were also based on the laws of the company's country, and required any unresolved disputes to be filed for litigation in the courts of that country. 

 

As the other country has a different legal system, such provisions in the contracts may not safeguard the Singapore agencies' interests, AGO said. 

 

PA explained that the contracts were prepared by the company and the grassroots organisation without the advice of PA's legal department. Moving forward, the grassroots organisation will prepare contracts, PA said. 

 

PA informed AGO that the procurement lapses were largely due to the procuring team having an inadequate understanding of Government procurement guidelines and operating under time constraints, according to the report. 

 

PA also said it would take measures to improve its staff's understanding and compliance with Government procurement requirements as well as ensure proper contract management documentation, the report noted. 

 

OFFICER SUBMITTED CLAIMS WITH DUBIOUS AUTHENTICITY

 

AGO's checks also revealed that a PA officer's reimbursement claims for overseas purchases and payments for costumes and accessories worth S$142,200 for Chingay Parade 2017, were supported by some supporting documents with "tell-tale signs" that cast doubt on their authenticity. 

 

The officer paid for the purchases in cash or through a remittance agent and claimed for reimbursement using cash sales receipts. 

 

There was no assurance that the reimbursement claimed by the officer was the actual amount he paid for the items, AGO said.

 

It added that while he was accompanied by at least one other staff during the sourcing and purchasing trips, he had made two additional personal overseas trips at his own expense to make purchases, settle final payments for earlier purchases and obtain cash sales receipts. This exposed PA to the risk of duplicated and inflated claims, according to AGO. 

 

PA had also posted Invitations to Quote for the items in the Government's electronic procurement system, GeBIZ. It subsequently posted "no award" announcements in GeBIZ even though it had awarded the contracts to overseas vendors not registered under the system separately through manual quotations. 

 

AGO said conducting parallel manual quotation exercises are not allowed; as obtaining manual quotations from overseas supplies are not subject to the more stringent controls of GeBIZ, PA could be exposed to risks from the manipulation of bids as well as allegations of discriminatory practices and a lack of transparency. 

 

PA has informed AGO that it has stopped all overseas direct purchases by staff and procured the costumes and accessories for Chingay through GeBIZ since April 2017, as well as reviewed past purchases for Chingay to determine if there were similar weaknesses, AGO said. 

 

RECURRING FAILURE TO GET PROPER APPROVALS FOR CONTRACTS

 

AGO checked 189 purchases worth S$6.03 million by 18 grassroots organisations, and found that 13 grassroots did not obtain proper approvals for the award of contracts and variations in these contracts for 25 purchases totalling S$619,900. 

 

Of these, 19 purchases were made with only verbal approvals or approvals after the goods and services had been delivered, while the rest were made with approvals from parties that did not have the authority to grant them. 

 

AGO noted that PA's failure to obtain proper approvals is a recurring lapse, with a similar observation noted in the report for the financial year 2014/2015. 

 

PA's explanation was that some of the lapses resulted from unexpected requirements that arose at short notice. 

 

Nonetheless, it acknowledged that proper approvals should have been sought for the contracts and said that it would review its financial procedures and strengthen the approval processes to cater for contingencies and ensure proper approvals are sought. It also said it would step up procurement training for grassroots organisations, according to the report. 

 

MANAGEMENT OF WELFARE ASSISTANCE SCHEMES

 

AGO test checks also revealed that cash gifts and assistance-in-kind given out under grassroots organisations' welfare assistance schemes from April 2016 to June 2017 were not properly managed. 

 

As a result, there was no assurance that the assistance, which included supermarket vouchers, food vouchers and groceries for needy residents, were given to only eligible applicants and properly accounted for, the report said.

 

For example, three grassroots organisations did not have documentary evidence to substantiate residents' eligibility for cash and assistance-in-kind at festive events. 

 

PA said the applicants were interviewed and assessed for welfare assistance but that it was not documented, and said it would put in place procedures to standardise the evaluation process across grassroots organisations. 

 

AGO also found that there were weak controls over reimbursement claims for food vouchers, with some grassroots organisations failing to invalidate vouchers that had already been used, and not tagging them to the reimbursement claims. One grassroots organisation also did not keep records of authorised representatives who could claim reimbursement, exposing itself to the risk of paying to authorised individuals. 

 

In addition, some of the groceries purchased for distribution to needy residents were not the same in type and price as those stated in the contracts with a vendor, or could not be accounted for. 

 

PA said that it would strengthen its procedures on the stock-taking, packing and distribution of groceries, the report stated. 

 

In a statement on Tuesday, the Ministry of Finance (MOF) said the Government is firmly committed to ensuring accountability and transparency in its use of public resources and has been stepping efforts to address the issues identified by AGO. 

 

"We agree with AGO that it is important for public agencies to exercise due diligence in managing their contracts," it said. 

 

For example, the PA has taken steps to address the financial controls lapses highlighted by AGO and is enhancing its systems to strengthen its procurement and contract management functions, MOF added. 

 

The report covered AGO's audit of financial statements incorporating the accounts of all 16 Government ministries and eight organs of state, the financial statements of three statutory boards, a Government fund, four Government-owned companies and three other accounts. 

 

Other lapses found in the report include weaknesses in Information Technology controls and gaps in the management of research and development grants.

 

More details => Singapore Civil Defence Force (SCDF)

 

SCDF says will 'do better' after AGO report finds serious lapses
 

SINGAPORE: The Singapore Civil Defence Force (SCDF) on Tuesday (Jul 17) said it will “do better” to ensure proper documentation for vehicle maintenance after three of its officers were found to have backdated some paperwork in actions SCDF described as "serious".

 

SCDF’s comment came after the release of a report by the Auditor-General's Office (AGO) earlier on Tuesday which found that 104 vehicle maintenance records were recreated and backdated by three officers and the contractors to meet AGO’s request for records.

 

The AGO report also found that SCDF had paid S$120,000 to contractors for services not provided.

 

“SCDF had errors/lack of proper documents in respect of five per cent of the maintenance records. This five per cent includes records for decommissioned vehicles where the documents had been disposed off,” said SCDF in a statement.  

 

“SCDF will ensure the proper maintenance of records. The erroneous payments flagged out by AGO have since been recovered.” 

 

The three SCDF officers involved have been disciplined for their “serious” actions, SCDF said. It noted that the officers made no financial gains from their actions and that the data they compiled were true and accurate.

 

Despite responding to more than 180,000 medical calls in 2017, the vehicle breakdown rate was 0.0007 per cent, SCDF said. There were also no breakdowns for non-medical calls involving SCDF fire-fighting and support vehicles.

 

“SCDF has made clear to all its officers that while ensuring its vehicles are properly maintained is of utmost importance, it is also necessary to ensure proper documentation,” it said.

 

“SCDF will do better on that.”

 

 

More details => Ministry of Defence (MINDEF)

 

Auditor-General report: Overpayment of grass-cutting fees; lax procurement controls uncovered at MINDEF
 

SINGAPORE: Instances of overpayment for services and weaknesses in the management of IT accounts have been found at the Ministry of Defence (MINDEF), the Auditor-General’s Office (AGO) said.

 

In its annual audit report released on Tuesday (Jul 17), the AGO flagged lapses at several ministries and government agencies. Besides MINDEF, other cases singled out include the People's Association, the Ministry of Education, the Singapore Civil Defence Force and the Agency for Science, Technology and Research.

 

Its checks on MINDEF uncovered overpayments on grass-cutting fees for six years, amounting to a total of S$200,000.

 

The overpayments were mainly due to overstatements of grass-cutting areas, and were not detected by the ministry’s facilities management agent (FMA) and contract manager Defence Science and Technology Agency (DSTA), AGO said.

 

“The repeated failures to detect the errors made by the contractor cast doubts on whether the FMA and DSTA had carried out their duties diligently," the report said.

 

Further checks by the AGO found that DSTA would not check the accuracy of land areas declared by the contractor unless it was alerted by the FMA to disparities. No checks were conducted by DSTA from Oct 1, 2011, to Sep 30, 2017, and DSTA was unaware of the discrepancies until AGO's query.

 

Although the role of monitoring the contractor’s services was outsourced to the FMA, AGO said DSTA is still responsible for proper contract management and payments. MINDEF – which paid for the services – is responsible for the use of government funds and should have ensured that DSTA performed its roles effectively, it added.

 

The ministry has informed AGO that the overpayment will be recovered from the contractor after the amount has been determined. Contractual penalties will also be imposed on the contractor for over-claiming and the FMA for failing to check the claims.

 

SHARING OF USER ACCOUNTS FOR PROCUREMENT

 

The audit also found 197 instances involving procurement value totalling S$2.83 million, where 33 authorised users of the Electronic Procurement System (ePS) might have shared accounts with other users. This was based on checks from Apr 1, 2015, to Jul 31, 2017.

 

Nineteen of those instances involved four users who were on overseas leave, AGO said. The accounts of the four users were used by unauthorised persons for procurement activities, violating MINDEF's IT security policy, AGO added, noting that it was difficult to pinpoint who had performed a particular activity when accounts are shared. 

 

MINDEF has informed AGO that disciplinary actions had been taken against three of the four users while the fourth user had left the service. 

 

MINDEF also indicated to AGO that it would continue to educate and emphasise to users the importance of safeguarding IT accounts and take disciplinary actions for non-compliance. It would also enhance the system to prevent sharing of accounts, AGO said.

 

WEAKNESSES IN MANAGEMENT OF ACCESS RIGHTS

 

Following checks on MINDEF'S ePS, AGO also found that the system owner and all the five units audited "did not carry out the periodic reviews on user access rights as required”.

 

The required six-monthly reviews of accounts and associated access rights had not been done since April 2013. MINDEF also delayed the removal of unneeded access rights for 41 of 219 user roles checked, AGO said.

 

Fourteen of the roles had access rights to perform procurement activities such as raising purchase requisitions and approving fund commitments, while the remaining 27 had access rights to view information on transactions. 

 

Following AGO’s queries, the ministry removed the unneeded access rights from September 2017 to January 2018, when they should have been removed 53 days to 10.7 years earlier.

 

"Such weaknesses would expose the system to unauthorised access, thereby increasing the risk of unauthorised procurement activities and risk of the integrity and confidentiality of the date in ePS being compromised," AGO said. 

 

MINDEF said it will stress to its units on the importance of conducting regular reviews and maintain proper documentation of reviews conducted. It will also enhance its system to improve the review process.

 

[Vid]

[sleeping]

[Beregond]

its open secret outside that government money most good to earn .

esp saf money .

 

its u can clinch their contract or not only.

 

if money not good u see so many ball carriers beside the mp doing volunteer work.

sponsor this n that.

 

 no work, they  ask u dig and cover back, give u work.

[Sosaria]

... In the case of MOE, lapses were found in school development projects managed by consultants engaged by the Education Ministry. 

 

There were delays in payments to contractors ranging from three months to more than three years for 30 school construction projects. The final amount due to the contractors totalled S$13.61 million, AGO said. 

 

There were also cases where modifications to construction contracts were not properly managed, resulting in an estimated overpayment of S$154,900, said the AGO.

...

 

Overpaid : S$154,900.

 

But owe contractors due to payment delays : S$13.61 million !! That's why small businesses don't like to do business with MOE / schools.

 

[Victor68]

I want to believe many of the items cited are procedures problems and not major. if you are responsible for 3,000 contracts, some of these awards will have areas of lapses.

 

more importantly, auditor should highlight systematic failure. catch ikan bilis no use. we want sharks. like those $1 m bin center type.

[RogerNg_185295]

What ball carriers? These people are the ultimate ball lickers.

its open secret outside that government money most good to earn .

esp saf money .

 

its u can clinch their contract or not only.

 

if money not good u see so many ball carriers beside the mp doing volunteer work.

sponsor this n that.

 

 no work, they  ask u dig and cover back, give u work.

 

[Fitvip]

 

Same same but different...      

 

- Single bidder (AHTC vs NEA vs PA)

- Overpayment / service not rendered (AHTC vs PA vs SCDF vs MINDEF)

- Falsifying maintenance records (SMRT vs SCDF)

- Payment not collected (AHTC vs ICA)

 

 

More details => People's Association (PA)

 

Auditor-General report: Lapses in People's Association's procurement, welfare assistance management

 

SINGAPORE: The People's Association (PA) was flagged for various lapses in the latest report by the Auditor-General's Office (AGO) for the financial year of 2017/2018 released on Tuesday (Jul 17). 

 

These included lapses in procurement for festive street light-ups and the management of welfare assistance schemes.

 

The AGO report also said there were "serious weaknesses in controls over overseas purchases and payments which could be exploited."

 

LAPSES IN PROCUREMENT FOR STREET LIGHT-UPS

 

PA and one of its grassroots organisations failed to adhere to Government procurement principles of open and fair competition, transparency and value for money for two tenders and four quotations, AGO noted in its report. 

 

The tenders, worth S$500,000, were for the manufacture of decorative items for street light-ups for Mid-Autumn Festival 2016 and Chinese New Year 2017.

 

The two tenders for both street light-ups were awarded to the same overseas manufacturer, who had been awarded the contracts every year since 2014. 

 

In its proposal for the Mid-Autumn Festival 2016 light-up, the company had listed additional costs including accommodation for its workers during their stay in Singapore, transportation charges for materials and the provision of a site for assembling lanterns. 

 

However, the grassroots organisation did not consider these additional costs on top of the tender price in its evaluation when comparing the price for the proposals. 

 

The same company was also the sole bidder for the Chinese New Year 2017 light-up, and similarly included additional cost items that the grassroots organisation did not mention when seeking approval for the tender. 

 

AGO found in its report that the grassroots organisation should have included the costs of the additional items in the price comparison so that all tender offers could be evaluated on the same basis. 

 

"Besides the issue of fairness, there was also no assurance that the contract was awarded to the tenderer which could provide the best value," it stated. 

 

In addition, the grassroots organisation accepted the proposal from the company after the specified closing time for the Chinese New Year 2017 light-up tender, and allowed the company to revise its proposals and bid price after the tender had closed. 

 

While AGO noted that there was only one bidder for this tender, it said that accepting the submission of late tender proposals and allowing the company to amend its proposals and bid price after the closure of the tender went against the principles of open and fair competition as well as transparency. 

 

"Such lapses could lead to allegations of unfairness," it said. 

 

The contracts signed with the overseas tenderer were also based on the laws of the company's country, and required any unresolved disputes to be filed for litigation in the courts of that country. 

 

As the other country has a different legal system, such provisions in the contracts may not safeguard the Singapore agencies' interests, AGO said. 

 

PA explained that the contracts were prepared by the company and the grassroots organisation without the advice of PA's legal department. Moving forward, the grassroots organisation will prepare contracts, PA said. 

 

PA informed AGO that the procurement lapses were largely due to the procuring team having an inadequate understanding of Government procurement guidelines and operating under time constraints, according to the report. 

 

PA also said it would take measures to improve its staff's understanding and compliance with Government procurement requirements as well as ensure proper contract management documentation, the report noted. 

 

OFFICER SUBMITTED CLAIMS WITH DUBIOUS AUTHENTICITY

 

AGO's checks also revealed that a PA officer's reimbursement claims for overseas purchases and payments for costumes and accessories worth S$142,200 for Chingay Parade 2017, were supported by some supporting documents with "tell-tale signs" that cast doubt on their authenticity. 

 

The officer paid for the purchases in cash or through a remittance agent and claimed for reimbursement using cash sales receipts. 

 

There was no assurance that the reimbursement claimed by the officer was the actual amount he paid for the items, AGO said.

 

It added that while he was accompanied by at least one other staff during the sourcing and purchasing trips, he had made two additional personal overseas trips at his own expense to make purchases, settle final payments for earlier purchases and obtain cash sales receipts. This exposed PA to the risk of duplicated and inflated claims, according to AGO. 

 

PA had also posted Invitations to Quote for the items in the Government's electronic procurement system, GeBIZ. It subsequently posted "no award" announcements in GeBIZ even though it had awarded the contracts to overseas vendors not registered under the system separately through manual quotations. 

 

AGO said conducting parallel manual quotation exercises are not allowed; as obtaining manual quotations from overseas supplies are not subject to the more stringent controls of GeBIZ, PA could be exposed to risks from the manipulation of bids as well as allegations of discriminatory practices and a lack of transparency. 

 

PA has informed AGO that it has stopped all overseas direct purchases by staff and procured the costumes and accessories for Chingay through GeBIZ since April 2017, as well as reviewed past purchases for Chingay to determine if there were similar weaknesses, AGO said. 

 

RECURRING FAILURE TO GET PROPER APPROVALS FOR CONTRACTS

 

AGO checked 189 purchases worth S$6.03 million by 18 grassroots organisations, and found that 13 grassroots did not obtain proper approvals for the award of contracts and variations in these contracts for 25 purchases totalling S$619,900. 

 

Of these, 19 purchases were made with only verbal approvals or approvals after the goods and services had been delivered, while the rest were made with approvals from parties that did not have the authority to grant them. 

 

AGO noted that PA's failure to obtain proper approvals is a recurring lapse, with a similar observation noted in the report for the financial year 2014/2015. 

 

PA's explanation was that some of the lapses resulted from unexpected requirements that arose at short notice. 

 

Nonetheless, it acknowledged that proper approvals should have been sought for the contracts and said that it would review its financial procedures and strengthen the approval processes to cater for contingencies and ensure proper approvals are sought. It also said it would step up procurement training for grassroots organisations, according to the report. 

 

MANAGEMENT OF WELFARE ASSISTANCE SCHEMES

 

AGO test checks also revealed that cash gifts and assistance-in-kind given out under grassroots organisations' welfare assistance schemes from April 2016 to June 2017 were not properly managed. 

 

As a result, there was no assurance that the assistance, which included supermarket vouchers, food vouchers and groceries for needy residents, were given to only eligible applicants and properly accounted for, the report said.

 

For example, three grassroots organisations did not have documentary evidence to substantiate residents' eligibility for cash and assistance-in-kind at festive events. 

 

PA said the applicants were interviewed and assessed for welfare assistance but that it was not documented, and said it would put in place procedures to standardise the evaluation process across grassroots organisations. 

 

AGO also found that there were weak controls over reimbursement claims for food vouchers, with some grassroots organisations failing to invalidate vouchers that had already been used, and not tagging them to the reimbursement claims. One grassroots organisation also did not keep records of authorised representatives who could claim reimbursement, exposing itself to the risk of paying to authorised individuals. 

 

In addition, some of the groceries purchased for distribution to needy residents were not the same in type and price as those stated in the contracts with a vendor, or could not be accounted for. 

 

PA said that it would strengthen its procedures on the stock-taking, packing and distribution of groceries, the report stated. 

 

In a statement on Tuesday, the Ministry of Finance (MOF) said the Government is firmly committed to ensuring accountability and transparency in its use of public resources and has been stepping efforts to address the issues identified by AGO. 

 

"We agree with AGO that it is important for public agencies to exercise due diligence in managing their contracts," it said. 

 

For example, the PA has taken steps to address the financial controls lapses highlighted by AGO and is enhancing its systems to strengthen its procurement and contract management functions, MOF added. 

 

The report covered AGO's audit of financial statements incorporating the accounts of all 16 Government ministries and eight organs of state, the financial statements of three statutory boards, a Government fund, four Government-owned companies and three other accounts. 

 

Other lapses found in the report include weaknesses in Information Technology controls and gaps in the management of research and development grants.

 

More details => Singapore Civil Defence Force (SCDF)

 

SCDF says will 'do better' after AGO report finds serious lapses

 

SINGAPORE: The Singapore Civil Defence Force (SCDF) on Tuesday (Jul 17) said it will “do better” to ensure proper documentation for vehicle maintenance after three of its officers were found to have backdated some paperwork in actions SCDF described as "serious".

 

SCDF’s comment came after the release of a report by the Auditor-General's Office (AGO) earlier on Tuesday which found that 104 vehicle maintenance records were recreated and backdated by three officers and the contractors to meet AGO’s request for records.

 

The AGO report also found that SCDF had paid S$120,000 to contractors for services not provided.

 

“SCDF had errors/lack of proper documents in respect of five per cent of the maintenance records. This five per cent includes records for decommissioned vehicles where the documents had been disposed off,” said SCDF in a statement.  

 

“SCDF will ensure the proper maintenance of records. The erroneous payments flagged out by AGO have since been recovered.” 

 

The three SCDF officers involved have been disciplined for their “serious” actions, SCDF said. It noted that the officers made no financial gains from their actions and that the data they compiled were true and accurate.

 

Despite responding to more than 180,000 medical calls in 2017, the vehicle breakdown rate was 0.0007 per cent, SCDF said. There were also no breakdowns for non-medical calls involving SCDF fire-fighting and support vehicles.

 

“SCDF has made clear to all its officers that while ensuring its vehicles are properly maintained is of utmost importance, it is also necessary to ensure proper documentation,” it said.

 

“SCDF will do better on that.”

 

 

More details => Ministry of Defence (MINDEF)

 

Auditor-General report: Overpayment of grass-cutting fees; lax procurement controls uncovered at MINDEF

 

SINGAPORE: Instances of overpayment for services and weaknesses in the management of IT accounts have been found at the Ministry of Defence (MINDEF), the Auditor-General’s Office (AGO) said.

 

In its annual audit report released on Tuesday (Jul 17), the AGO flagged lapses at several ministries and government agencies. Besides MINDEF, other cases singled out include the People's Association, the Ministry of Education, the Singapore Civil Defence Force and the Agency for Science, Technology and Research.

 

Its checks on MINDEF uncovered overpayments on grass-cutting fees for six years, amounting to a total of S$200,000.

 

The overpayments were mainly due to overstatements of grass-cutting areas, and were not detected by the ministry’s facilities management agent (FMA) and contract manager Defence Science and Technology Agency (DSTA), AGO said.

 

“The repeated failures to detect the errors made by the contractor cast doubts on whether the FMA and DSTA had carried out their duties diligently," the report said.

 

Further checks by the AGO found that DSTA would not check the accuracy of land areas declared by the contractor unless it was alerted by the FMA to disparities. No checks were conducted by DSTA from Oct 1, 2011, to Sep 30, 2017, and DSTA was unaware of the discrepancies until AGO's query.

 

Although the role of monitoring the contractor’s services was outsourced to the FMA, AGO said DSTA is still responsible for proper contract management and payments. MINDEF – which paid for the services – is responsible for the use of government funds and should have ensured that DSTA performed its roles effectively, it added.

 

The ministry has informed AGO that the overpayment will be recovered from the contractor after the amount has been determined. Contractual penalties will also be imposed on the contractor for over-claiming and the FMA for failing to check the claims.

 

SHARING OF USER ACCOUNTS FOR PROCUREMENT

 

The audit also found 197 instances involving procurement value totalling S$2.83 million, where 33 authorised users of the Electronic Procurement System (ePS) might have shared accounts with other users. This was based on checks from Apr 1, 2015, to Jul 31, 2017.

 

Nineteen of those instances involved four users who were on overseas leave, AGO said. The accounts of the four users were used by unauthorised persons for procurement activities, violating MINDEF's IT security policy, AGO added, noting that it was difficult to pinpoint who had performed a particular activity when accounts are shared. 

 

MINDEF has informed AGO that disciplinary actions had been taken against three of the four users while the fourth user had left the service. 

 

MINDEF also indicated to AGO that it would continue to educate and emphasise to users the importance of safeguarding IT accounts and take disciplinary actions for non-compliance. It would also enhance the system to prevent sharing of accounts, AGO said.

 

WEAKNESSES IN MANAGEMENT OF ACCESS RIGHTS

 

Following checks on MINDEF'S ePS, AGO also found that the system owner and all the five units audited "did not carry out the periodic reviews on user access rights as required”.

 

The required six-monthly reviews of accounts and associated access rights had not been done since April 2013. MINDEF also delayed the removal of unneeded access rights for 41 of 219 user roles checked, AGO said.

 

Fourteen of the roles had access rights to perform procurement activities such as raising purchase requisitions and approving fund commitments, while the remaining 27 had access rights to view information on transactions. 

 

Following AGO’s queries, the ministry removed the unneeded access rights from September 2017 to January 2018, when they should have been removed 53 days to 10.7 years earlier.

 

"Such weaknesses would expose the system to unauthorised access, thereby increasing the risk of unauthorised procurement activities and risk of the integrity and confidentiality of the date in ePS being compromised," AGO said. 

 

MINDEF said it will stress to its units on the importance of conducting regular reviews and maintain proper documentation of reviews conducted. It will also enhance its system to improve the review process.

 

I thought amount of $5K and above need to go through GeBiz? While S$142,200 for Chingay Parade 2017, were supported by some supporting documents with "tell-tale signs" that cast doubt on their authenticity no need to!

Edited July 19, 2018 by Fitvip