Course Introduction

The evolution of the procurement process has led to increasing demands on the professionalism of procurement
practitioners. Procurement of goods, works and services is a major component of any national budget and is
frequently the largest or second-largest category of expenditure. Therefore, maintaining transparency,
accountability and fairness in the procurement process is imperative. This comprehensive workshop will improve
your knowledge of how to audit procurement, regulatory frameworks, governance, and risks attributed to all
aspects of the procurement cycle and contract supervision. You will develop your practical skills in the audit
process from planning to execution and reporting and monitoring recommendations. In the modern environment,
it is necessary to ensure your organisation has the ability to identify, review and manage risks related to your
procurement process.
This comprehensive workshop will improve your knowledge of how to audit procurement, regulatory frameworks,
governance, and risks attributed to all aspects of the procurement cycle and contract supervision. You will develop
your practical skills in the audit process from planning to execution and reporting and monitoring
recommendations. In the modern environment, it is necessary to ensure your organisation has the ability to
identify, review and manage risks related to your procurement process.
Experience and research indicates that most public organisations face numerous problems, delays and loss of
monies in procurement because of their inability to observe and apply the procurement best practise guidelines at
each stage of the complex chain of international and domestic procurement operations. The increasingly complex
legal and regulatory structure within which contracts are formed, and the prominent role contracting and
purchasing personnel play in achieving project objectives, require managers to understand the fundamental of
procurement and contracting.
In order to improve the procurement process and expedite the implementation of development projects, thereby
improving public procurement in Africa and beyond, COT MANAGEMENT INSTITUTE, developed this course to help
organisation have effective procurement units. Participants will get an overview of all phases Public Procurement
Audit
Who should attend?
The program is suitable for anyone at senior or junior level who has responsibility and influence in relation to any
interaction the organisation has with external suppliers and markets. That could include:

Ministers or other elected representatives

Permanent Secretaries and chief executives
Directors in Ministries or local government
Directors and leaders of arms-length bodies and agencies
Consultants working with the public sector
Senior managers and directors of organisations with a commercial / procurement interest
Procurement Officers in Public sector

Overview and Objectives

By the end of the course, participants will be able to:

Apply the legal regulatory frameworks governing the audit

Understand the procurement cycle and what is procurement malpractice

Apply the principles of risk management

Carry out organisational analysis how procurement is conducted

Ensure accountability, probity and organisational governance for the procurement process

Audit commercial aspects of outsourcing contracts

Implement the procurement function, strategies and policies

How to source ethically and demonstrate environmental awareness

Analyse and investigate, including what to do if you uncover malpractice

Communicate the audit report

Plan the follow-up

Determine the legal and regulatory requirements for the audit

Carry out an analysis of the organisation to be audited, including determining the scope for

malpractice in each element of the procurement cycle and a staff assessment

Ensure that the organisation has considered alternative methods for acquiring and providing goods and
services, including the use of competitive processes and outsourcing

Amend contracts and manage changes that occur during the procurement process

Maintain productive working relationships with suppliers

MODULE 1:
Session: Fundamentals of Procurement Auditing
This module will provide an overview of best practice in procurement and focus on:
key issues associated with the management of procurement expenditure and the control of individual
contracts
key risk areas and the audit approach to reviewing
Procurement expenditure to provide the basis for an audit programme
Introduction to procurement audit and types of procurement audit;
Analysis of the context of the contracting Authority that is subject to audit:
analysis of the legal/regulatory requirements of the procurement function;
analysis of risks (and potential fraud and corruption) in the various steps of procurement cycle
(definition and quantification of requirements, approval of requisition, supplier sourcing, selection of
procurement method, selection of contract type, bid opening and evaluation proceedings, formation
of evaluation committees, approval of award, contract management, records management, use of
financial securities, management of warranty/maintenance obligations, disposal of assets);
Analysis of the procurement strategy of the organisation and its annual procurement planning
processes (including use of e-procurement methods, aggregation of demand, etc.);
Development of the audit objectives and audit plan:
setting audit objectives and scope;
development of the procurement audit plan (size and method of selection of the sample of
procurement operations to be audited), audit criteria and evidence requirements; execution of the
procurement audit process:
methods for collection and analysis of evidence and "due care" in reporting cases of potential fraud
and illegal acts, compilation of "Procurement Audit" report;

MODULE 2:
Session 1: How to Structure a Public Procurement Audit

Importance of organisational understanding of audit of public procurement Create value

Procurement with a strategic, tactical and operational point of view for the organisation and for the
internal auditors
How to structure the internal audit of public procurement
The need for involving the organisation in the internal audit
How deep and wide will or can the internal audit do auditing of public procurement?
Identifying the risk of fraud in the procedures for public spending
Key points in reporting the result of the internal audits work with public procurement
Use of key ratios in connection with public procurement

Session 2: Using Investigation Methods to Support Evidence

The balance between the internal auditor as an auditor and a criminal/police investigator
Forensic auditing - risk understanding - risk acceptance - risk control
How does the internal auditor work against producing and securing evidence
Steps in the work of an internal auditor to document evidence NOT produce evidence
How does an internal auditor prepare the presentation of the evidence to the company and/or the
person?
How does the internal auditor work together with the police/court?
How do the internal auditor and the company /department secure that processes in the future can
avoid or reduce the possibilities of fraud

Session 3: Use of IT in Public Procurement Audits

Use of IT in the planning and implementation of audit

Planning: Procurement data analysis, determination of questionable procedure or purchase families,
sample selection
Audit implementation: Compliance audit of tender and operational audit of procurement execution
Results of audits (initial and follow-up)
Findings with regard to
- The procurement information system
- Auditing methods

Session 4: Auditing Costing Practices in Public Procurement

Assessment of the control environment as a prerequisite for the identification, evaluation, and
mitigation of costing risks
Systematic review of the process for estimation of contract volume: the importance of the cost matrix
and the budget breakdown
Evaluation of the practices targeting verification of contractors economy and efficiency of operations
Practical approach towards the examination of the cost performance of the procurement system: key
performance indicators (KPIs)

MODULE 2:
Session 1: Strategy, Governance and Control
If procurement and contract management processes and procedures are to be successfully implemented across
organisations, there must be a coherent, clear and well-communicated strategy. This module will:
Address risk areas arising from an organisations strategic approach to procurement
Highlight the key risks associated with failure to corporately manage procurement processes, and how
such risks can be mitigated
Examine the key issues that need to be incorporated within corporate policies and systems of control to
manage an organisations procurement expenditure
Identify an audit approach to the top-level review of procurement policies
Session 2: Procurement Audit Management
Managing The Audit Directorate
Responsibilities For Procurement Audit
Resource management And Allocation
Staff Monitoring, Mentoring And Appraisal
Technical Development And Capacity Building
1planning And Budgeting The Procurement Audit
Planning Methodology
The Annual Audit Work Plan
Procurement Audit Execution
Stages In Audit Reporting
Purpose And Effect Of The Quarterly Internal Audit Report
Session 2: The Procurement Audit Process and Procurement Risk analysis

Planning the Audit Of Auditees

Strategic Plan
Macro Plan
Micro Plan
Risk Assessment To Define Audit Objective And Scope
Steps In Risk Analysis
Inherent Risk
Identify Controls Areas Of Risk Management
Extent And Scope Of Internal Audit
Detection Risk

Session 2: Auditing the Management of the Procurement

Auditing the Management of the Procurement
Are procurement processes well organized and documented?
Are proper budgetary arrangements taken?
Is Procurement Plan prepared and approved?
Are internal control systems in place?
Is procurement execution duly monitored and documented?
Auditing the Preparation Of The Procurement
Did the public body calculate the contract value accurately?
Were the schedule of requirements adequate to needs and legal requirements?
Were the bidding documents comprehensive, transparent and non-discriminating?
Was the submission of alternative bids accepted and duly ruled?
Where applicable, did the public body adequately manage experts employed to assist in the procurement
process?
Did the public body select an appropriate and admissible procurement method?

Auditing the Procurement Method Selected to Procure

Did the selected method ensure competition and transparency?
Auditing the Publicity and Invitation To Bid Used
Did the public body advertise bids in compliance with the Proclamation?
Was timely and equal access to bidding documents and information provided to all candidates?
Was confidentiality ensured when necessary?
Auditing the Award Procedures
Was a formal bid opening procedure undertaken?
Was the qualification of candidates accurately assessed?
Were bids properly evaluated? 66
Was the outcome of the evaluation process properly reached and communicated?
Were complaints lodged by bidders / candidates against any act or omission by the public body properly
resolved?
Auditing direct procurement concerning additional works or deliveries
Were any additional works or deliveries admissible without the need for a new procurement procedure?
Auditing Management Of Contract
Whether the contract terms and conditions were comprehensively drawn up, and whether they are
unambiguous, free from uncertainties and misinterpretation and serve to protect the Government
interests?
Whether priority was accorded to post contract follow up including disciplining of suppliers so as to avoid
time and cost over runs, loss to the Government and/ or undue benefit to suppliers?
Was there any modification of contract terms?
Is there established any post-procurement actions by public bodies?
Session 8: Contract Administration
Key contract administration policies
Dealing with non-compliance
Continuous communication
Applicable charges to the buyers and the sellers
Change Management
Termination and contract resolution
Key contract administration policies
Tasks for buyers and sellers
Contract analysis
Performance and progress
Records, files and documentation
Resolving claims and disputes

Training Materials( Soft Copies) and notes Hand-outs

Tablet 10 inch/Laptop
Tea Breaks/ refreshments
Course tuition
Personal action planning
Certification
Follow-up support (on request)