50. 49

2. 1

31. 30 The table above shows discrepancies with respect to fuel supply and bowsers used as prescribed in the contract document. It is evident that two extra vehicles had been receiving fuel unlawfully which is a clear misuse of fuel. An excess fuel of 285 litres was misused and/or misappropria ted on vehicles amounting to Le 2,137,500 (Two Million One Hundred and Thirty Seven Thousand Five Hundred Leones).

1. 0

49. 48 The Audit Committee should be chaired by an external member who is knowledgeable in auditing. 7.8.2 R eporting to and supervision by the Ministry Of Finance The agency is mandated to report to MoF on how the budget is executed and to take action where necessary. There is no evidence that the reports are examined and acted upon despite massive deviations and virements that are recorded. Items contained in the TOGAS reports are hugely different from items in the approved activity plans. There is weak monitoring and supervision by the Ministry of Finance of the Agency on how the budget is executed. There is no evidence of reconciliation of the approved activity budget and the TOGAS report. Implications Monitoring the budget is important to ensure that the financial, operational and capital plans that were developed and approved for implementation as part of the budget processes are being implemented. Budget monitoring is crucial for an organization to be able to enforce accountability related to spending. Recommendations The MoF should establish a robust budget monitoring mechanism in place. A budget manual should be developed and circulated with enforce mechanism in place.

43. 42 7.7.2 QUALIFICATION OF STOREKEEPER Storekeeping is a delicate job that requires trained and qualified personnel to undertake such task. However, the team realized that the Storekeeper had no Assistant and the pre - requisite qualification in discharging his duties. Implication Lack of trained and qualified storekeeper will hinder efficient and effective service delivery in storekeeping. Recommendation Management should ensure that the storekeeper is provided with an assistant and also ensure that the storekeeper is giving the required training in the discharge of his functions for effective and efficient service delivery. Management Response Management notes this concern at the time of your review. However, there is now an assigned Senior Inventory and Store officer at the Ministry. 7.7.3 Monitoring and Supervision Findings There is lack of segregation of duties in the functions of the procurement and the stores officer as the latter gives verbal instructions to the former to initiate requisition for goods to be procured. Also, it was discovered that the stores officer reports directly to the Permanent Secretary instead of the Directorate of Stores. Implication

42. 41 Management Response Management notes this concern. However, going forward Management will ensure to implement the recommendation of ACC. 7.7 STORES MANAGEMENT Stores management is concerned with ensuring that all the activities involved in storekeeping and stock control are carried out efficiently and economically by the store officer. The purpose of stores management is to ensure economy in all store management activities and proper utilization of items procured. 7.7.1 STORE ENVIRONMENT A store room is an area set aside into which all items and equipment procured is received, housed for safe keeping, and from which they will be issued as required. Findings During the review, the team discovered that the Ministry lacks proper storage facility as a result the generator room is used /converted to store some items procured. The environment is inappropriate and not conducive for the purpose. Implication As a result of the limited storage space, items and equipment stored in unhealthy environment may damage or cause stored items to deteriorate. Recommendation Management should relocate the store room to a conducive location to ensure proper handling and accountability of procured items and equipment. Management Response Management notes this concern. However, going forward Management will ensure to implement the recommendation of ACC.

38. 37 Management Response Management notes this concern. However, management has put systems in place to avoid such risk (wasting time in sorting messy filing cabinet and vulnerable to environmental harm i.e. damp & humidity) from occurring. 7.5.2 W ITH HOLDING TAX (WHT) The team realized that from the accounting records provided, its shows that 5.5% WHT is deducted from suppliers payments but there are no evidence of receipt issued by National Revenue Authority (NRA) and /or WHT receipt issued to suppliers. Findings The Team realized that withholding tax deductions are done at the ministry of Finance and the deducted tax amount is credited to NRA’s account at the Bank of Sierra Leone. Implication Failure to pay tax deductions to NRA is in contravention of the tax law (section 117 of the Income Tax Act of 2018) and has a ripple effect on the economy. Recommendation Tax obligations should be honored as stipulated by law. The ministry should ensure that all suppliers’ tax receipts are forwarded to the suppliers. Also, WHT deductions are to be deducted at source and returns credited to NRA. Management Response Management notes this concern. However, document showing evidence of payment to NRA is available for your verification.

25. 24 Findings Bowser Rental A framework contract was signed between the Ministry of Water Resources and Charliesco Enterprises to supply five operational water bowsers. It was agreed that fuel should be provided by the ministry to truck water to communities at a price of Le 2,000,000 (Two Million Leones) per bowser for over a minimum of thirteen hours per day. Upon analyzing the contract document, the team discovered that there is no specific scope with regards with start and end date of the contract . Article 3.2 of the contract agreement states that “payment has to be made after signing of contract according to the value and shall be paid upon complete delivery and acceptance of the goods/services”. a. The team realized that there is no penalty clause for breach of contract on the side of the buyer (the Ministry of Water Resources). b. Documents provided show that the supplier made deliveries from March to July 2019 but payments were only made to the supplier for March to June 2019. The supplies in July 2019 are outstanding which amounting to Sixty two Million Leones (Le62,000,000). On t he contrary, the Ministry claimed that an over payment of Le18,000,000 (Eighteen Million Leones) was made to the supplier which the supplier agreed and instructed the ministry to deduct same from outsta nding payment and balance of Le 44,000,000 (Forty Four Million Leones) be credited to his account which is yet to be paid by the ministry. c. The dispute over the payment of Le62 ,000,000 and /or balance of Le 44,000,000 for bowser rental to the supplier is contrary to Article 3.2 of the contract document. However, we observed that there is no proper

15. 14 Trogas Report for previous allocation disbursed by the Ministry (actual allocation). The Trogas report shows the expenditure pattern per quarter, revenue received (actual allocation) from Government of Sierra Leone (GoSL) and also gives a reflection of the MDAs cash book. 7.0 MINISTRY OF WATER RESOURCES The Ministry of Water Resources (MWR) was established in January 2013 to fulfill policy and sector leadership functions. The old Ministry of Energy and Water Resources (MEWR) Water Supply Division has been replaced by a new technical Water Directorate. The Directorate will prov ide effective technical and back - up support to Local Councils and the broader WASH sector. It is important to note that while the MWR and the Ministry of Health and Sanitation are the WASH sector leaders, they do not directly supervise regulatory agencies and the service delivery agencies. Instead they set the policy framework within which all sector actors must operate. The Ministry of Water Resources aims to integrate and effectively manage all water resources in Sierra Leone so as to significantly contribute to the reduction of poverty through increased access to potable water for domestic, commercial, industrial and ot her uses. These goals are articulated in the New Direction Agenda and the National Water and Sanitation Policy 2020. As part of its mandate, the MWR exercises policy oversight on the two main utility companies in the water sector, that is the Guma Valley Water Company (GVWC), which is responsible for providing access to portable water supply in Freetown and its environs, and the Sierra Leone Water Company (SALWACO), which is responsible for water supply services in the regional areas. The Electricity and Water Regulator Commission (EWRC) and the National Water Resources Management Agency (NWRMA) are also two regulatory agencies establ ished under the purview of the MWR. The EWRC would enable Sierra Leone to benefit from safe, affordable and permanent water supply services by

17. 16 how they can impact it and where to most effectively allocate their spending and investments.” Recommendations The Ministry should develop a strategic plan in consultation with all cadres of staff. Strategic Plan helps the Ministry to measure performance. Annual budgets should be aligned to the Strategic Plan therefore the discussion of budgeting should be viewed as the mechanism to allocate resources to achieve strategic results. It is only when the budget is brought in line with the Strategic Plan that yo u know their impact on each other, and where to most effectively allocate spending and investment. Management Response Management notes this concern. However, the ministry has a well - developed strategic plan which informs the ministry’s budget preparation. Evidence of strategic plan is available for verification. 7.2.2 PARTICIPATION IN BUDGET PREPARATION Findings The ministry’s budget preparation is to some level, participatory as it involves all heads of departments. However there is no evidence to show that departmental budgets were prepared to form the consolidated budget or whether the process was not limited to executive level but was inclusive of the rest of the Ministry. Implications Without departmental budget it is difficult to see how fund will be fairly and effectively allocated to departments to truly reflect/support their operations. Recommendations

11. 10 The operating budget on the other hand, portrays the Ministry’s recurrent expenses, expected costs, and estimated income, considering the quarterly or the annual performance. The team will then assess the utilization of such approved budgets with reference to activities and/or projects in the Ministry’s Strategic and annual work plans. Budgetary allocations form an integral component to the annual financial plan, or budget, of all MDAs. They indicate the level of resources an MDA is committing to a department or program. Without allocation limits, expenditures can exceed revenues and res ult in financial shortfalls. Anyone working with budgets should understand how they are used and the limitations they provide . The budget preparation process is a powerful tool for coherence. The budget is both an instrument of economic and financial manag ement and an implicit policy statement, as it sets relative levels of spending for different programs and activities. 2.0 OBJECTIVE The essence of the review is to track resource utilization and ensure the Ministries/D epartment /Agencies makes effective use of its resources in line with the budget. The review aims to identify weaknesses in budget process that will create opportunity for corruption and proffer recommendations to address those weaknesses. 3.0 SCOPE The review examined budgets allocated by the Ministry of Finance to the Ministry of Water Resources for financial year 2019. The central focus of the review is on recurrent (operating) budget. However, limited samples of capital expenditures were also examined.

44. 43 The Procurement Officer is responsible to procure goods and services approved by management. There is conflict of interest for the procurement officer to give instructions to initiate requisition for goods to be procured and for the stores officer to be su pervised by the Permanent Secretary. Recommendation The Stores Unit should be supervised and monitored by a senior staff from the Directorate of Stores. Also, all requisitions should not be done verbally but follow the due process. Management Response Management notes this concern at the time of your review. However, there is documentary evidence showing clear segregation of duties for your verification. 7. 8 BUDGET CONTROL Budgetary control is financial jargon for managing income and expenditure. In practice it means regularly comparing actual income or expenditure to planned income or expenditure to identify whether or not corrective action is required. This process of monitoring expenditure and taking appropriate action is known as budgetary control. 7. 8 .1 INTERNAL AUDIT According to the Institute of Internal Auditor (IIA), "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by br inging a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes." 7. 8 .1.1 Annual Audit Plan

18. 17 Every operational unit should prepare budget in line with their work plan which then are collated into departmental budget and then consolidated into the entity overall budget. Management Response Management notes this concern. However, there are evidences available for verification showing the ministry’s budget was prepared from the departmental level to the executive stage. 7. 2 . 3 BUDGET COMMITTEE Findings There is a budget committee constituting the budget officer and other members selected by the ministry. We identified that the Budget officer assigned to the Ministry by the Budget Bureau, serves other agencies in the water sector including the Energy Ministry. Also, the budget officer is residence at the Ministry of Energy. Implications This has rendered the committee ineffective in carrying out its function as meetings are rarely held and activities are mainly limited to budget preparation in the beginning of the year. Recommendations The Ministry together with the Budget Bureau should ensure a stationed budget officer is assigned. The Committee activities such as meetings, resolution and budget monitoring reports should be properly recorded and acted upon . Management Response Management Notes This Concern At The Time Of Your Review. However, There Is Now An Assigned Budget Officer At The Ministry.

36. 35 Uncontrolled virement will lead to wastages and undermine the achievement of the Agency’s objectives for the year. Recommendations Management should ensure that all activity planned are in line with the approved budget. All approved activity plans should be strictly adhered to. Virement should be discouraged and if the need arise it should properly be managed and reported on. Management Response Management notes this concern. However, evidence of documents of procurement process and payment voucher is available for your verification. 7.4.2 Development of Adjusted Budget after Disbursement When inadequate funds are received, the Ministry does not conduct variance analysis or revise the budget. What obtains is that an activity plan is prepared for the funds received and activity plans are rarely in line with the approved budget. The activity plans are mainly prepared to justify spending rather than pursuing budget objectives and line items. Implications Failure to revise the budget in line with the variance will result to deviation from budget priorities and unguided spending. Recommendations That when there are variances in budget funds, the budget should be revised and activity plan should be line with the revised budget. Management Response

46. 45 conducting their audits. Auditors also use regulation such as the Government Budgeting and Accountability Act 2005 (GBAA), the Public Financial Management Act 2016 (PFM), Audit Standards and any other regulations. Implication The existence of these regulations, help/guide and/or direct the audit team in executing their duties in a profound and relaxed manner. Executing such, will surely minimize the risk and hence, strengthening the internal controls. Recommendation Internal Auditor should ensure they effect such regulation while conducting their audit and should also ensure management complies with such regulations. Management Response Management notes this concern. However, the Internal Audit Unit has always been adhering to all Acts and Regulations governing the Public Service. 7. 8 .1.3 Audit Queries Auditing queries is the process of inspecting queries that have been answered in the past and determining whether these answers could have been pieced together by a user to infer confidential information. Findings The team observed that the internal Audit queries are not adequately and/or not responded to as management seems not to treat the reports with utmost importance. Implication Failure to treat an internal Audit report with all seriousness and urgency will weaken and/or destroy the internal controls and as such, the findings will re - occur in subsequent audit. Recommendation

48. 47 financial statements. Physical verification is of immense importance in public auditing in order to prevent frauds, misappropriation and misuse of public assets. Finding The internal Audit unit does carry out physical verification of deliveries of procurement items to stores. Implication This helps tracking of goods and services. Recommendation Management should ensure that internal Audit is always present in verifying all deliveries before they are delivered, stored and distributed. Management Response Management notes this concern. However, Management will continue on this trajectory. 7. 8 .1.6 Audit Committee Finding The review team discovered t hat there is an Audit Committee chaired by the Permanent secretary The Internal Auditor administratively reports to the audit committee but functionally reports to the Permanent Secretary and sends copy of the audited report to the Directorate of Audit at the Ministry of Finance. Implication An Audit Committee, chaired by the Permanent Secretary, affected the independence, and objectivity of the Auditors. Also, there would be conflict of interest in discharging his duties as a political figure, as well as addressing the organization’s governan ce, risk management, and internal controls. Recommendation

34. 33 • There is all indication that there was fuel misused and/or misappropriated hence an overuse of government resources . Recommendations • All agreements in the contract are to be honored to avoid breach of contract. • The ministry should ensure fuel reconciliation is maintained and supervised. Management Response Management notes the concerns raised by your team. However, the following are management responses: • Clause 3.1 was a typographical error in the contract that should have read “...the total value of the goods to be purchased under this Framework agreement shall not exceed the contract sum of Eighty Million Leones (Le80,000,000) per Month...” This is evident i n paragraph 3 of the framework agreement. • Furthermore, the 95L were meant only for the 5 hired water bowsers. Due to aged conditions, the Government owned water bowsers were receiving a quota of 100L per day as depicted in the fuel uplift. • In addition, there are evidences for your verification showing management decision on the use of the said 285 liters of fuel. • Evidence of fuel Log book, fuel register, Invoices and receipts (fuel chits) are available for your inspection. On the issue of fuel chits missing at the supplier’s record, management has no control over the filling system of the supplier. Stipend to contract staff

35. 34 We discovered that most and /or all of the contract staff receiving stipends are full time employees of the various institutions (GWVC and MWR). There is no way they could be coined as contract staff while fully employed. Implications Paying stipend to full employed staff of the Ministry and or Agency for a project which has to be done by the same staff is sign of double dipping . Failing to comply with the contract agreement is breach of contract . Recommendations The Ministry should ensure that agreements in contract documents are fully adhered to. The fuel abuse should be controlled with a robust fuel reconciliation and/or tracking plan. Management Response Management notes this concern. However, the Project paid incentives to employees of the Ministry who were working outside the normal working hour and stipend were given to those who were none Ministry’s employees (drivers mate and Monitors). 7.4 BUDGET EXECUTION 7.4.1 Budget Line items and Activity plan (Budget Deviation) The team took a sample of some budgetary activities and noticed there were deviation/virement from budget items and activity plan. Example: • Vehicle maintenance: the discovered that no amount was budgeted but an amount of Le 32,000,000 (thirty two million Leones) was expended. • No document with regards to vehicle maintenance was provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. Implications

41. 40 Failure to prepare bank reconciliations on a regular basis will result to , inaccurate financial and tax reporting, loss of deposited funds from bank errors and various penalties. The non - preparation of Bank reconciliation Statement has the impact of differences between the bank statement and cashbook not detected and corrected. Recommendations We recommend that monthly Bank Reconciliation be prepared for all bank accounts maintained by the Ministry and such reconciliations should be reviewed by the head of the Finance Office. Management Response Management notes this concern. However, the Bank monthly reconciliation statements are available for your verification. 7.6 PROCUREMENT MANAGEMENT Procurement officer was unavailable as result the team could not access document. There was no proper handing over done and documents were claimed to be in the custody of the former procurement head of the Ministry. Implication This is a major problem facing accountability and transparency in the Ministries. Mostly operations and documentation are center around individuals. They absence will incapacitate their area of operations due to access to documentation and other tools of o perations. Recommendation A system should be established that prohibit document to be in the sole custody of individual rather than filed at the office premises. All staff leaving the Ministry should do proper handing before proceeding.

47. 46 Management should ensure that internal audit queries are adhered to and the recommendations proffered by the audit must be implemented. Management Response Management notes this concern. However, evidence showing management responses to Internal Audit queries are available for your verification. 7. 8 .1.4 Understaffing Finding The Audit Unit is understaffed with only two staff and considering the volume of work in the Ministry. The Internal Audit unit does cover the National Water Regulatory Commission (EWRC) in its audit procedures. Implication Carrying and/or covering the two units will lead to ineffectiveness, inefficiency and inevitably decrease quality of work . Recommendation The Internal Audit Department of the Ministry of Finance alongside the Human Resource Management Organisation (HRMO) must ensure that adequate staff are in the audit unit. Moreover, management should ensure that the Internal Audit Unit is well equipped, especially making them easily mobile to carry out their activities. Management Response Management notes this concern. However, additional staff has been assigned to the Internal Audit Unit. 7. 8 .1.5 Physical Verification of Deliverables Physical verification is the procedure that normally performs by the auditor to confirm the existence of certain physical assets that records in the client's'

10. 9 1.0 BACKGROUND INTRODUCTION The Anti - Corruption Commission (ACC) was established with the primary aim to prevent, investigate and prosecute corrupt offenders and to also provide accurate information to the general public on the dangers of corruption in our society. The preventive aspect of the ACC is provided for in Section 7 and 8 of the Anti - Corruption Act of 2008 as amended. The ACC has benefited from Funds from the OSIWA to en hance the effectiveness and efficiency of the Prevention Department. Part of the fund is meant to conduct Thematic Review of the Ministry of Water Resources on budgetary allocation and Utilization inclusive of its agencies (except Sierra Leone Electricity and Water Regulatory Agency (SLEWRA) • Sierra Leone Water Company (SALWACO) • Guma Valley Water Company (GUMA) • National Water Resources Management Agency (NWRMA) When it comes to budgeting, identifying areas of weakness helps the government to allocate resources in a useful and sustainable manner. It’s important for the government to ensure that funds reach where it’s required the most. Therefore using past data to identify sections of the society in need of economic welfare policies and implem enting those policies helps the government demonstrate efficient governance and achieve economic stability in the country. The Ministry of Finance is a key player in the Budget allocation to Ministries Department and Agencies (MDAs), therefore, our work required the cooperation and collaboration with the Ministry. Capital expenditures refer to funds that are used by the Ministry for the procurement, improvement, or maintenance of long - term assets (projects) to improve the efficiency or capacity of the Ministry.

14. 13 Section 64 (1)PFM Act of 2016 states that “ A payment voucher for making payments to expenditures of a budgetary agency shall be certified by the vote controller of the budgetary agency or other public officer authorized by him ”. Section 18(1) of the Performance Financial Management - Regulation (PFM - R) 2018 stipulates that “ the budget call circular shall require every vote controller to submit within a specified time and in a prescribed manner a medium - term budget framework for his budget entity, including - (a) a medium - term strategy and target outcomes in line with national and sectoral strategies, and key performance indicators for assessing the achievement of the outcomes; (b) detailed work plans for the implementation of the strategy and the anticipated revenue and recurrent and capital expenditure for the following three years within the financial ceilings prescribed by the Minister; (c) a procurement plan showing details of the estimated amount of continuing contracts and each contract to be entered into in the following year, item to be purchased, estimated timing and amount of payments, and the modality of each contract; and (d) revised estimates of revenue and expenditure for the current year . Additionally , Section 18( 2 ) of the Performance Financial Management - Regulation (PFM - R) 2018 “ A vote controller shall, in preparing draft estimates of revenue and expenditure, convene a budget committee meeting to review and ensure that the estimates are realistic and accurate in all respects and are prepared with the involvement of all relevant di visional or programme officers, procurement officers, internal auditors and other relevant officials of the budgetary agency in accordance with any other instruction or guideline given by the minister.” In order for the Ministry of Finance to approve and disburse funds for a quarter, Ministry Departments and Agencies (MDAs) have to prepare and submit a

45. 44 Audit planning is a major part of audit works for both internal and external audits. A good audit planning will help the auditor to minimize its risks, improve audit efficiency, and meet its objective at the minimum effort. Finding The Audit Unit maintained an Annual Audit Plan, but the unit was strictly limited in executing all activities as contained in the plan for the financial year under review 2019. The internal Auditor informed the Review team during the interview that he can’t does not access the funds allocated for Audit purpose at the MOF. Implication Failure to execute all activities listed in audit work plan increases the audits risks in the control environments. Recommendation Management should the Internal Audit work is not limited by providing the necessary support and logistics required to efficiently and effectively carryout the activities in the Annual Audit Plan. Management Response Management notes this concern at the time of your review. However, the Ministry of Finance did not release funds to carry out some of the activities. 7. 8 .1.2 AUDIT MANUAL An audit manual outlines the authority and scope of the internal audit function, documents standards, and provides cohesive guidelines and procedures . These guidelines promote consistency, stability, continuity, acceptable performance standards, and a means of coordinating the efforts of audit staff effectively Finding The Internal Audit unit has an audit manual that is designed by the Internal Audit department which all Auditors in MDAs are bound to follow while

40. 39 Implications Incomplete documentation in records can cause loss of revenue/reimbursement. Recommendations Management should ensure that the transactions mentioned above should be accounted for with proper documentation. In the future all expenditures should be supported by the relevant document and be properly filed. Management Response Management note the concerns raised by your team during the review. However, the following are management responses: • Documentary evidences of procurement process and payment voucher are available for your verification. • Concerns with regards local travelling are noted. Going forward management will ensure the recommendation of ACC is implemented. • Evidences with regards stationery are available for your verification. • Moreover, concerns with regards the annual WASH conference is noted. Going forward Management will implement the recommendation of the ACC. • Also, concerns with regards to local training and workshops are noted. Going forward, management will ensure to implement the recommendation of ACC. 7.5.4 Bank Reconciliation Findings Monthly Bank Reconciliations statements were not prepared by the Finance Officer. Implications

20. 19 financial year of 2019. According to reference MWR/AD/96/02, a budget request of Le1,103,947,203 (One Billion, One hundred and three million, nine hundred and forty seven thousand, two hundred and three Leones) was submitted in the PET form 1. It was stated that part of the funds requested will be used to settle arrears for services already rendered to the \ ministry whilst the balance will be used to run the day to day activities and utilities of the Ministry. Therefore the budget summary for first quarter FY 2019 was Le 670,100,000 (six hundred and seventy million, one hundred thousand Leones) for day to day activities and Le433,847,203 (four hundred and thirty three million, eight hundred and forty seven thousand, two hundred and three Leones) being the arrears . The Review Team that n o further details with regards the fund withheld for the payment of arre ars as stated in the request were provided to the team for verification. Also the Review Team noted that t he actual funds allocated were Le 496,951,000 (Four hundred and ninety six million, nine hundred and fifty one thousand Leones) as oppose to the Le670,100,000 budgeted for the quarter. This leaves a variance of Le173,149,000 (one hundred and seventy three million, one hundred and forty nine thousand Leones). Implications Failure to get funds budgeted in full will result to the Ministry unable to achieve its goals for the year. Recommendations All variances should be properly investigated to determine its cause and remedy taken by Government. The Government should ensure that the Ministry Budget is fully funded . Details of payments made by the Ministry of Finance on behalf of MOWR should be provided to the MOWR. Management Response

27. 26 • Management notes this concern. However, the Ministry will engage the management of GVWC who are currently managing the Freetown Dry Season Project on possible back log payment. • Management notes this concern. However, at the time of your review these documents were not made available to the ACC because they were housed at the GVWC and they are still at GVWC for your inspection. • Management notes this concern during the review process. However, evidences of receipts from the supplier are available for your inspection. • Management notes this concern during the review process. However, evidences of receipts from the supplier are available for your inspection. • Management notes this concern. However, this was a Senior Management decision and evidence of the minutes is available for your inspection. Bowser Maintenance From the table above, it is shown that Le353, 288m was spent on Bowser Maintenance. No evidence was provided to the team with regards to such expenditure. For instance: a. Contract document (if any) b. N ame of garage c. D ate and time vehicles were maintenance d. R egistration numbers of vehicles repaired e. Preformat invoices of spear parts bought f. P ayments vouchers and receipts from both parties Management Response Management notes this concern during the time of your review. However, the documents mentioned are available for your verification. Fuel Utilization A contract was signed between Alhaji Macasuba (Seller) representing NP Ross Road and Jui Junction and the Ministry of Water resources (Buyer) to supply

21. 20 Management notes this concern. However, the Ministry does not have evidence to show whether this request was honored or not. On the issue of variance of Le173,149,000, between the budget requested and the actual funds allocated. The Ministry is pleased to inform your team that the issue of allocation rest in the hands of Ministry of Finance. 7.3.2 DELAY IN GOVERNMENT ALLOCATION There are marked delays in the disbursement of funds from the Ministry of Finance to the Ministry of Water Resources. For example funds requested for first quarter were d isbursed in the second quarter o r later. Implication The delay in Governmen t allocations affects the timeliness of activities of the Ministry as outlined in the activity plan. As a result of which activities will have to be rolled over to future date until allocations are received. This further creates challenges with accounting for roll over or overlapping activities funds. Recommendation The Government of Sierra Leone (GoSL) through the Ministry of Finance (MOFED) should ensure that quarterly allocations (actual) are disbursed on time. Management Response Management notes this concern. However, this is beyond management control. 7.3.3 Revenue Generation There was no evidence presented to show that the ministry generates revenue despite the fact that it possesses Water B owsers /tankers that are used to supply water externally on commercial basis and other revenue generating potential . Implication

4. 3 7.7.1 STORE ENVIRONMENT ........................................................................ .. 41 7.7.2 QUALIFICATION OF STOREKEEPER ...................................................... 42 7.7.3 Monitoring and Supervision ... .................................................................. 42 7.8 BUDGET CONTROL .................................................................................. 43 7.8.1 INTERNAL AUDIT ............................................................................... 43 7.8.1.1 Annual Audit Plan .............................................................................. 43 7.8.1.2 AUDIT MANUAL ................................................................................. 44 7.8.1.3 Audit Queries ..................................................................................... 45 7.8.1.4 Understaffing ..................................................................................... 46 7.8.1.5 Physical Verification of Deliverables ................................................... 46 7.8.1.6 Audit Committee ................................................................................. 47 7.8.2 Reporting to and Supervision by the Ministry of Finance..................4 7 COMPLIANCE MATRIX ................................................................................. . . 49

13. 12 a unit to be known as the Budget Bureau which shall, under the supervision of the Financial Secretary, be responsible for the preparation and monitoring of the budget in collaboration with the budgetary agencies ”. Section 20(2) of the Government Budget and Accountability Act (GBAA) of 2002 states that “ each budgetary agency shall establish a budget committee comprising the vote controller, the professional head, if any, programme managers and provincial and district managers, to be responsible for preparing the strategic plans and annual estimates of the agency, apportioning quarterly allocations and monitoring expenditure and results.” Section 53 (1) (GBAA) of 2002 provides that “ the vote controller of a budgetary agency shall, within ten days after the end of each month, submit to the Financial Secretary, in the prescribed form, information on actual revenue and expenditure for the preceding month and the amounts anticipated to be collected or expended for that month .” Section 56 (1) of the Public Financial Management (PFM) Act of 2016 states that “ At the beginning of a financial year, the Minister may require a head of a budgetary agency to submit to him for his approval monthly forecasts under the Estimates for such period of time as specified by the Minister ”. Also, S ection 56 (2) of PFM Act of 2016 stipulates that, “ An appropriation allotment shall be prepared and submitted in such form and manner and by such date as may be prescribed by the Minister”. Furthermore, Section 56 (3 ) of PFM Act of 2016 “ notwithstanding subsection (1) and (2), the Minister may by himself determine and vary an appropriation allotment of a budgetary agency” . Section 15(2) of the Performance Financial Management - Regulation (PFM - R) 2018 states that “ A budget call circular shall give budgetary agencies and sub - vented agencies at least a six week - period for preparation of their budget proposal.”

28. 27 fuel to water bowsers meant to truck water to water stressed communities. According to the contract document, the supplier agreed to supply fuel in advance to a tune of Le80,000,000 (Eighty M illion Leones). The Buyer can likewise make payment in advance to the supplier as advance payment for services yet to be rendered up to a tune of Eighty Million Leones (Le80,000,000) Additionally, article 3.1 of the contract document states that “the total value of the Goods to be purchased under this framework agreement shall not exceed the contract sum of Eighty Million Leones (Le80,000,000) being the contract sum for the entire contract. The amount expended (Le416, 588M) on fuel as to documents provided far exceed the amount stated in the contract document (Le 80M). Based on the two figures provided, it shows that there is overspending over 420% the contract amount was used on fuel. Furthermore, the contract document states that “ the Ministry of Water Resources agrees to provide Ninety Five (95L) liters of fuel (AGO - diesel) to five water bowsers for a minimum of thirteen hours (13hrs) per day ’’. In the first instance, a computation of payments made as per payment transfers documents with respect to fuel for the entire program to supplier are as follows: Months Amounts (Le) March April 183,637,500 May 113,850,000 June 85,762,500 July 26,220,000 Total 409,470,000

39. 38 7.5.3 Failure to provide supporting documents for Expenditure on Budgetary Allocation The team took a sample on some budgetary activities: Vehicle maintenance: T he discovered that no amount was budgeted but an amount of Le32,000,000 (thirty two million Leones) was expended. No document with regards to vehicle maintenance was provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. Local travelling: A budget of Le20,000,000 (twenty million Leones) was placed on local travelling of which Le3,150,000 (three million, one hundred and fifty thousand Leones) was expended. This gives a variance of Le16, 850,000 (Sixteen Million Eight hundred and fifty thousand Leone). No supporting document was provided to the team such as, approved budget propo sal, reports and to office settlement (retirement of trip). Stationery: A sum of Le43,000,000 (forty three million leones) was budgeted and Le42,310,000 was expended of which Le26,310,000 (twenty six million, three hundred and ten thousand) was paid to Davine Dimension Ent and Le16,000,000 (sixteen million) was paid to Diaco Invest ment. No supporting document was provided to the team. No invoices, receipts or any other documents’ concerning the transaction was seen. Furthermore, the team discovered from the Internal Audit report - January to December 2019 that the following issues are unresolved and no information was provided to the team: Payments were made without supp orting document amounting to Le 20,000,000 (twenty million Leones) in respect of 4 th annual WASH conference activities. Inadequate supporting documents for local tra ining and workshops totaling Le 14,220,000 (fourteen million, two hundred and twenty thousand Leones).

33. 32 Article 3.3 states that, “the supplier shall ensure that each invoice contains a detailed breakdown of the goods and/or services provided and any other documentation reasonably required by the Buyer to substantiate the invoice”. N o supporting documents (log books, fuel register, invoices, receipts, etc.) were provided to the team with regard the amount expended. The team discovered some amounts of chit were not seen during verification of the suppliers’ documents but duplicate copies are maintained at the Ministry as shown below: DATE CHIT No. 04/03/2019 001 , 002, 003 12/03/2019 594 19/03/2019 80 22/03/2019 95 19/04/2019 362, 363 20/05/2019 260 The above table gives an illustration of the fuel chits that were not found at the outlet of the fuel supplier during verification exercise even though payments were made by Ministry, but the duplicate copies were seen at the ministry. No fuel reconciliation was shown to the team. Implications • Failing to provide supporting documents for verification hindered reconciliation. • By passing the contract agreement is a breach of contract.

26. 25 mechanism in place to address such dispute or effectively manage the overall project. d. There is no evidence of source documents with respect to the time sheet / log book with regards to the areas or communities covered per day. e. No evidence of receipt from the supplier was provided as evidence of payment. f. According to the project proposal, it was stated that five bowsers each will be recalled from GVWC and SALWACO making a total of ten bowsers for the supply and distribution of water for the project. The team realized that the project documents did not ment ion the hiring of bowsers yet a private supplier was contracted to provide bowers for the project. This is a complete deviation from the project itself and there is no evidence to show that such deviation is documented. Implications • Failing to comply with the contract agreement is a breach of contract. • Penalty clause stated only for the side of the supplier • Failing to provide documents during the review process • Accountability and transparency. Recommendations • Penalty clause should be inclusive of both parties of the contract. • The ministry must pay Charlesco Company amount due for work completed. • The M inistry should ensure that all agreements stated in the contract documents are adhered to. Management Response • Management notes this concern. However, the recommendation from ACC will be put into practice for all Future contracts.

12. 11 4.0 METHODOLOGY The M ethodology for this study involved both quantitative and qualitative research. The team conducted interviews with key staff especially “those who bear the greatest responsibilities in the performance of their duties,” in line with the review objectives. The review process was initiated by an inception meeting with Management of the Ministry of Water Resources and its Agencies. The team examined information on: • Approved budgeted activities for the years under review • Actual allocations and/or notification of disbursement • Actual expenditure, utilization and accountability of allocation for years under review (actual) • Actual expenditure for periods under review • Balance of annual budget remaining • Variances • Bank statements • supporting documents of utilized budget • Returns per quarter and /or per annum • Physical verifications on projects and capital expenditures 5.0 LIMITATIONS OF THE REVIEW The Ministry of Finance did not provide information requested by the Review Team; as a result the review was based only on information provided by the Ministry of Water Resources and its Agencies. 6.0 THE BUDGET PROCESS Section 20 (1) of the Government Budget and Accountability Act (GBAA)of 2005 states that “ There shall continue to exist within the Ministry,

37. 36 Management notes this concern. However, going forward Management will implement the recommendation of the ACC. 7.5 FINANCIAL MANAGEMENT 7.5.1 POOR RECORDS MANAGEMENT Records management (RM) is the supervision and administration of digital or paper records . Records management activities include the creation, receipt, maintenance, use and disposal of records . In this context, a record is content that documents a business transaction. Findings During the review, the team discovered that records management was poor as document could not be traced promptly due to clustered filing system. Documents were not filed systematically with respect to individual activities rather, they are bungle up in a folder, which makes it difficult for the team to locate source document. Implication • Poor records management can lead to these systemic issues: Excessive amounts of time are wasted sorting through messy filing cabinets. Valuable office space is used to store paperwork, forcing the company to pay premium prices for document storage. Files are misplaced, buried, and lost. • Files stored in inadequate spaces are more vulnerable to environmental harm caused by damp and humidity; both of which are capable of permanently destroying files and making them illegible. Recommendation Files should be indexed in a way that reduces the time it takes for employees to track down relevant documents, improving employee productivity. To manage records properly, MOWR should have a comprehensive document retention policy. Also, management should ensure every document is maintained, accurately indexed and categorized.

16. 15 way of instituting new tariffs, whilst the NWRMA would have the mandate to ensure an effective management of Sierra Leone water Resources. In summary, t he Ministry’s mandate is to: • Provide water sector leadership • Formulate policies, regulations and standards for the water sector • Ensure that the population is provided with adequate and reliable potable water supply • Ensure that the country’s water resources are properly managed • Engender collaboration and corporation amongst Water Sector Stakeholders • The Ministry oversees the following: SALWACO, GVWC, NWRMA & SLEWRC It’s strategic objective is in line with Goal 6 of the United Nations Sustainable Development Goals that should be achieved by 2030: • Increase national access for Water from 67.8% to 72% in 2021 • Improve water and related service delivery 7.1 FINDINGS AND RECOMMENDATIONS 7.2 BUDGET PREPARATION 7.2.1 Strategic Plan Findings There was no Strategic Plan presented to the Review Team. There are no indications that budget was aligned to a strategic plan. Implications Studies have shown that “one of the reasons f or ineffective budgeting is the disconnect between the budget and the company’s broader strategy”. (Aligning Budget with Strategy by Ethan Carlson, 2014). Without knowledge of the entity’s strategy, the stakeholders who create and manage budget do not know

22. 21 The Ministry failed to throw light on its potential revenue streams thus illustrating over reliance on Government Funding. As result it has failed to sustain some of it operations (e.g. bowser supplies) which otherwise would have been viable. Recommendation The Ministry should try to supplement government budget support by identifying and exploring potential ways to make revenue and sustain them. The Finance Unit should give full details on all revenue generating activities of the M inistry inclusive of the water bowsers. Management Response Management notes this concern. However, Management would like to inform your team that the Ministry does not generate revenue. The Bowsers/tankers in question were managed by Guma Valley Water Company. 7.3.4 Donor Fund & Project Management Before the Review , the Project Department of the M inistry of Water Resources was solely responsible (initiate and execute) all projects undertaking by the Ministry. This department has been act ive until 2019 when the Minister then decided to mainstream the project activities to its agencies. Nevertheless, the Ministr y now initiates projects and thereafter allows it’s agency (i . es) to execute. This new initiative will now enable the ministry to conduct her fiduciary duty to supervise and / monitor agencies o n project implementation. Of the project documentation presented, the team took a sample for litmus test. The table below shows projects implemented by the Ministry and agencies. Project Contractor Amount ($’m) Amount (Le’m) Responsible Agency Dry Season Water Project Charlisco Enterprise MOWR 100 Solar power Boreholes Hadissa 0 32,542 SaLWACO

19. 18 7.3 BUDGET FUNDING The Ministry’s key funding sources are government of Sierra Leone, own source revenue and Donors. 7.3.1 Variance in Government Allocation and approved Budget A budget allocation is the amount of funding designated to each expenditure line. It designates the maximum amount of funding an organization is willing to spend on a given item or program, and it is a limit that is not to be exceeded by the employee authorized to charge exp enses to a particular budget line. Findings According to Annex 1 FY 2019 - 2021 recurrent expenditure ceilings for Non Salary, non interest recurrent budgetary allocations, for the Ministry of Water Resources and it agencies were as prescribed by the budget bureau for are as follows: Ministry/Agency Le’m MOWR Administrative 1,600.7 Water Directorate 1,666.3 Emergency Recovery priority programs on Water(Dry season Water project) 1,903.7 Water Resources management Unit 594.9 Total Ceilings for MOWR 5,765.60 SalWACo 11,149.0 NWRMA 657.9 SLEWRC 1,631.2 From the above, it is explicit that a budget ceiling of Le5,765.6bn (Five billion seven hundred and sixty five million, six hundred thousand Leones) was prescribed by the Budget Bureau for MOWR . T he Review Team observed that only first quarter request was submitted on the 11 th April 2019 and this seems to be only request made for the whole

9. 8 Audit Manual The Internal Audit unit has an audit manual that is designed by the Internal Audit department which all Auditors in MDAs are bound to follow while conducting their audits. Auditors also use regulation such as the Government Budgeting and Accountability Act 2005 (GBAA), the Public Financial Management Act 2016 (PFM), Audit Standards and any other regulations. Internal Auditor should ensure they effect such regulation while conducting their audit and should also ensure management complies with such regulations. Audit Queries The team observed that the internal Audit queries are not adequately and/or not responded to as management seems not to treat the reports with utmost importance Management should ensure that internal audit queries are adhered to and the recommendations proffered by the audit must be implemented. Understaffing The Audit Unit is understaffed with only two staff and considering the volume of work in the Ministry. The Internal Audit unit does cover the National Water Regulatory Commission (EWRC) in its audit procedures. Management notes this concern. However, additional staff has been assigned to the Internal Audit Unit. Physical Verification of Deliverables The internal Audit unit does carry out physical verification of deliveries of procurement items to stores. Management should ensure that internal Audit is always present in verifying all deliveries before they are delivered, stored and distributed. Audit Committee The review team discovered that there is an Audit Committee. The Internal Auditor administratively reports to the audit committee but functionally reports to the Permanent Secretary and sends copy of the audited report to the Directorate of Audit at the Ministry of Finance. The Audit Committee should be chaired by an external member who is knowledgeable in auditing.

24. 23 The table above gives an explicit view of the budgetary track of the FDSW in the year 2019. A budget ceiling of Le11bn (Eleven Billion Leones) was slated by the Ministry of Finance, of which the Ministry of Water resources should not exceed when preparing their Pet Form 1 (Budgetary Request). Base on the budget ceiling, a request was raised amounting to Seven Billion Leones (Le7bn). The FDSW was allocated Le1.847 bn and they in turn utilized Le 1.829bn leaving a positive variance of Le18m. Upon verification, the table below illustrates the utilization pattern of the FDSW in line with the amount allocated. The table above tells us the gross amount (before tax) and the net amount (after tax) of budgeted activities for 2019. Activity Amount before tax (Le’000) 5.5% WHT (Le’000) Amount after tax (Le’000) Bowser Rental 958,000 52,690 905,310 Bowser Maintenance 353,288 19,431 333,857 Fuel 416,588 - 416,588 Stipend to contract staff 101,200 - 101,200 Totals 1,829,076 72,121 1,756,955

55. 54 S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of V erification (MOVs) Completion Date Responsible Bowser Maintenance 15 S upporting document ( Such as, Contract document (if any), name of garage, date and time vehicles were maintenance, registration numbers of vehicles repaired, Proforma invoices of spear parts bought, payments vouchers and receipts) from both parties with respect to the Le353, 288m was spent on Bowser Maintenance should be made available to th e team supporting document ( Such as, Contract document (if any), name of garage, date and time vehicles were maintenance, registration numbers of vehicles repaired, Proforma invoices of spear parts bought, payments vouchers and receipts) from both parties with respect to the Le353,288m was spent on Bowser Maintenance are made available to the team H Le353,288m was spent on Bowser Maintenance for which no supporting document ( Such as, Contract document (if any), name of garage, date and time vehicles were maintenance, registration numbers of vehicles repaired, Proforma invoices of spear parts bought, payments vouchers and receipts) from both parties was provided to the team. S upporting document ( Such as, Contract document (if any), name of garage, date and time vehicles were maintenance, registration numbers of vehicles repaired, Proforma invoices of spear parts bought, payments vouchers and receipts) from both parties with r espect to the Le353, 288m was spent on Bowser Maintenance to be made available to the team s, Contract document (if any), name of garage, date and time vehicles were maintenance, registration numbers of vehicles repaired, Proforma invoices of spear parts bought, payments vouchers and receipts) March, 2022 Finance unit

32. 31 In addition, upon verification of the ledger, we noticed that there are two other vehicles owned by Guma Va l ley Water Company ( AKP 366 and AKP 092 ) that are recipients of fuel other than those of the contractor’s. The team discovered that fuel (petrol) was disbursed for hydrant usage on every supply of fuel (diesel) made for bowser usage; which contravene the provision in the contract agreement. A dissection was done to ascertain the quantity of fuel issued for hydrant usage from that which was supplied to bowser usage. The table below illustr ates usage: Months/Year Total Liter of Fuel Unit price (Le) Total Cost (Le) March 2019 1,320 7,500 33,000,000 April 2019 1,200 7,500 37,500,000 May 2019 1,200 7,500 43,725,000 June 2019 600 7,500 17,550,000 July 2019 540 8,500 4,560,000 Total 4,860 136,335,000 The above table shows that 4,860 Litres at various unit prices were utilized for the entire Dry Season Project on Hydrant, totaling Le136,335,000 (One Hundred and thirty six thousand, three hundred and thirty five thousand Leones) Comparing the total figures spent on fuel as per expenditure pattern (416,588,000) and those verified by the team (payments transfer – Le409,470,000 and fuel to hydrant - Le136,335,000) a difference of Le129,377,000 could not be accounted for fuel usage.

23. 22 7.3.4. 1 Freetown Dry Season Water Supply Project (FDSWSP) The Ministry of Water Resources and the Guma Valley Water Company (GVWC) , in collaboration with the United nation Development Program (UNDP) and the United Nation International Children Emergency Fund (UNICEF) came up with a compressive backup plan to water shortages experienced during the Dry seasons. In 2017, the FDSWSP was developed as part of the President’s Recovery priorities to address the water shortage experienced by residence of Freetown during the Dry Seasons. The FDSWSP was implemented to ensuring that regular access to safe water around Free town would be maintained. The distribution of water to various communities not connected to the water network will be supported by means of water tanker/ bowser operation s . The dry season water services ran from February 2019 to July 2019. The project was transferred to GVWC for full implementation in 2020. The table below shows the budgetary details with regards to the FDSW in 2019: 45 industrial Boreholes 3.6 0 GVWC 4.2 0 SalWACo Budget Ceiling Le’000 Budget Requested Le’000 Budget Allocated Le’000 Budget Utiliz a tion Le’000 Variance Le’000 11,374,946 7,801,205 1,847,263 1,829,076 18,187

6. 5 EXECUTIVE SUMMARY The Ministry of water Resources was established with a mandate to provide water sector leadership, formulate policies, regulations and standards for the water sector and ensure that the population is provided with adequate and reliable portable water suppl y. The review was conducted b the ACC with aim of identifying weaknesses in the practices and procedures of the Ministry that rise to corruption and to proffer recommendations on how to address the weaknesses and enhance service delivery. The report also contains the implementation matrix for the recommendation. The review conducted has the following as key findings and recommendations SUMMARY OF KEY FINDINGS AND RECOMMENDATIONS INSTITUTION FINDINGS RECOMMENDATIONS Ministry Of Water Resources Budget Preparation Strategic Plan There was no Strategic Plan presented to the Review Team. There are no indications that budget was aligned to a strategic plan. The Ministry should develop a strategic plan consultation with all cadres of staff. Strategic Plan helps the Ministry to measure performance. Annual budgets should be aligned to the Strategic Plan therefore the discussion of budgeting should be viewed as the mechanism to allocate resources to achieve strategic results. It is only when the budget is brought in line with the Strategic Plan that you know their impact on each other, and where to most effectively allocate spending and investment. Participation in budget Preparation The ministry’s budget preparation is participatory as it involves all heads of departments. However there is no evidence to show that departmental budgets were prepared to form the consolidated budget or whether the process was not limited to executive lev el but was inclusive of the rest of the Ministry. Every operational unit should prepare budget in line with their work plan which then collated into departmental budget and then consolidated into the entity overall budget. Budget Committee There is a budget committee constituting the budget officer and other members selected by the ministry. We identified that the Budget officer assigned to the Ministry by the Budget Bureau, serves other agencies in the water sector including the Energy Ministry. Also, the budget officer is residence at the Ministry of Energy. The Ministry together with the Budget Bureau should ensure a stationed budget officer is assigned. The Committee activities such as meetings, resolution and budget monitoring reports should be properly recorded and acted upon BUDGET FUNDING

7. 6 Delay in Government Allocation There are marked delays in the disbursement of funds from the Ministry of Finance to the Ministry of Water Resources. The Government of Sierra Leone (GoSL) through the Ministry of Finance (MOFED) should ensure that quarterly allocations (actual) are disbursed on time. Revenue Generation There was no evidence presented to show that the ministry generates revenue despite the fact that it possesses Water Bowsers/tankers that used to supply water externally on commercial basis. The Ministry should try to supplement government budget support by identifying and exploring potential ways to make revenue and sustain them. The Finance Unit should give full details on all revenue generating activities of the ministry inclusive of the water bowsers. BUDGET EXECUTION Budget Line items and Activity plan (Budget Deviation) Vehicle maintenance: the discovered that no amount was budgeted but an amount of Le32,000,000 (thirty two million Leones) was expended. No document with regards to vehicle maintenance was provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. Management should ensure that all activity planned are in line with the approved budget. All approved activity plans should be strictly adhered to. Virement should be discouraged and if the need arise it should properly be managed and reported on. Development of Actual Budget after Disbursement When inadequate funds are received, the Ministry does not conduct variance analysis or revise the budget. What obtains is that an activity plan is prepared for the funds received and activity plans are rarely in line with the approved budget. The activity plans are prepared mainly prepared to justify spending rather than pursuing budget objectives and line items. That when there are variances in budget funds, the budget should be revised and activity plan should be line with the revised budget. Ministry Of Water Resources With Holding Tax (WHT) The team realized that from the accounting records provided, its shows that 5.5% WHT is deducted from suppliers payments but there are no evidence of receipt issued by National Revenue Authority (NRA) and /or WHT receipt issued to suppliers. Tax obligations should be honored as stipulated by law. The ministry should ensure that all suppliers’ tax receipts are forwarded to the suppliers. Also, WHT deductions are to be deducted at source and returns credited to NRA.

59. 58 28 Management should ensure that the transactions should be accounted for with proper documentation. Management ensured that the transactions are accounted for with proper documentation. H An excess expenditure over budget of Le16, 850,000 (Sixteen Million Eight hundred and fifty thousand Leone) existed and for which no supporting document was provided to the team such as, approved budget proposal, reports and to office settlement (retiremen t of trip). Management ensured that the transaction are accounted for with proper documentation Approved budget proposal, reports and to office settlement (retirement of trip) etc. March, 2022 Finance Unit Le 26,310,000 (twenty six million, three hundred and ten thousand) was paid to Davine Dimension Ent and Le 16,000,000 (sixteen million) was paid to Diaco Investment for which no supporting documents were provided. Inadequate supporting documents for local training and workshops totaling Le 14,220,000 (fourteen million, two hundred and twenty thousand Leones). 29 We recommend that monthly Bank Reconciliation be prepared for all bank accounts maintained by the Ministry and such reconciliations should be reviewed by the head of the Finance Office. M onthly Bank Reconciliation prepared for all bank accounts maintained by the Ministry and reviewed by the head of the Finance Office. H Monthly Bank Reconciliations statements were not prepared by the Finance Officer. M onthly Bank Reconciliation prepared for all bank accounts to be maintained by the Ministry and reviewed by the head of the Finance Office. - Bank reconciliation statement - March, 2022 Finance unit

62. 61 39 The Internal Audit Department of the Ministry of Finance alongside the Human Resource Management Organisation (HRMO) must ensure that adequate staff arein the audit unit. The Internal Audit Department of the Ministry of Finance alongside the Human Resource Management Organisation (HRMO) ensured that adequate staff are in the audit unit. M The Audit Unit is understaffed with only two staff and considering the volume of work in the Ministry. The Internal Audit unit does cover the National Water Regulatory Commission (EWRC) in its audit procedures. The Internal Audit Department of the Ministry of Finance alongside the Human Resource Management Organisation (HRMO) to ensure that adequate staff are in the audit unit. • Staff list March, 2022 Human Resource Management should ensure that the Internal Audit Unit is well equipped, especially making them easily mobile to carry out their activities. Management ensured that the Internal Audit Unit is well equipped, especially making them easily mobile to carry out their activities. M Management to ensure that the Internal Audit Unit is well equipped, especially making them easily mobile to carry out their activities. • Asset listing • Asset register March, 2022 Human Resources and Admin. 40 Management should ensure that internal Audit is always present in verifying all deliveries before they are delivered, stored and distributed. Management ensured that internal Audit is always present in verifying all deliveries before they are delivered, stored and distributed. H The internal Audit unit does carry out physical verification of deliveries of procurement items to stores. Management to ensure that internal Audit is always present in verifying all deliveries before they are delivered, stored and distributed. Verification report March, 2022 Permanent Secretary 41 The Audit Committee should be chaired by an external member who is knowledgeable in auditing. The Audit Committee chaired by an external member who is knowledgeable in auditing. H The review team discovered that there is an Audit Committee. The Internal Auditor administratively reports to the audit committee but functionally reports to the Permanent Secretary and sends copy of the audited report to the Directorate of Audit at the Ministry of Finance. The Audit Committee to be chaired by an external member who is knowledgeable in auditing. Audit Committee meeting minutes March, 2022 Permanent Secretary

8. 7 Poor Records Management Records management (RM) is the supervision and administration of digital or paper records , regardless of format. Records management activities include the creation, receipt, maintenance, use and disposal of records . In this context, a record is content that documents a business transaction. Files should be indexed in a way that reduces the time it takes for employees to track down relevant documents, improving employee productivity . To manage records properly, MOWR should have a comprehensive document retention policy. Also, management should ensure every document is maintained, accurately indexed and categorized Procurement officer was unavailable as result the team could not access document. There was no proper handing over done and documents were claimed to be in the custody of the former procurement head of the Ministry. A system should be established that prohibit document to be in the sole custody of individual rather than filed at the office premises. All staff leaving the Ministry should do proper handing before proceeding. Store Environment During the review, the team discovered that the Ministry lacks proper storage facility as a result the generator room is used /converted to store some items procured. The environment is inappropriate and not conducive for the purpose. Management should relocate the store room to a conducive location to ensure proper handling and accountability of procured items and equipment. Qualification of Storekeeper Storekeeping is a delicate job that requires trained and qualified personnel to undertake such task. However, the team realized that the Storekeeper had no Assistant and the pre - requisite qualification in discharging his duties. Management should ensure that the storekeeper is provided with an assistant and also ensure that the storekeeper is giving the required training in the discharge of his functions for effective and efficient service delivery. Monitoring and Supervision There is lack of segregation of duties in the functions of the procurement and the stores officer as the latter gives verbal instructions to the former to initiate requisition for goods to be procured. Also, it was discovered that the stores officer reports directly to the Permanent Secretary instead of the Directorate of Stores. Management notes this concern at the time of your review. However, there is documentary evidence showing clear segregation of duties for your verification. BUDGET CONTROL Findings Recommendations Annual Audit Plan The Audit Unit maintained an Annual Audit Plan, but the unit was strictly limited in executing all activities as contained in the plan for the financial year under review 2019. The internal Auditor informed the Review team during the interview that he can’t does not access the funds allocated for Audit purpose at the MOF. Management should the Internal Audit work is not limited by providing the necessary support and logistics required to efficiently and effectively carryout the activities in the Annual Audit Plan.

56. 55 S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Bowser Maintenance 16 The excess fuel of 285 litres misused and/or misappropriated on vehicles amounting to Le2,137,500 (Two Million One Hundred and Thirty Seven Thousand Five Hundred Leones) through unlawful fueling of two extra vehicles should be accounted for. The excess fuel of 285 litres misused and/or misappropriated on vehicles amounting to Le2,137,500 (Two Million One Hundred and Thirty Seven Thousand Five Hundred Leones) through unlawful fueling of two extra vehicles accounted for. H An excess fuel of 285 litres was misused and/or misappropriated on vehicles amounting to Le2,137,500 (Two Million One Hundred and Thirty Seven Thousand Five Hundred Leones) through unlawful fueling of two extra vehicles. The excess fuel of 285 litres misused and/or misappropriated on vehicles amounting to Le2,137,500 (Two Million One Hundred and Thirty Seven Thousand Five Hundred Leones) through unlawful fueling of two extra vehicles to be accounted for. • Supporting documents /Justificatio n • Receipt of payment March, 2022 Finance Unit 17 The variance of Le 129,377,000 resulting from the difference between expenditure on fuel and verified amount by the Review team should be accounted for. The variance of Le 129,377,000 resulting from the difference between expenditure on fuel and verified amount by the Review team accounted for. H A total of Le129,377,000 could not be accounted for fuel usage. This resulted from the variance between amount spent on fuel and that verified by the team. The variance of Le 129,377,000 resulting from the difference between expenditure on fuel and verified amount by the Review team to be accounted for. Receipt of payment March, 2022 Finance unit 18 Supporting documents (log books, fuel register, invoices, receipts, etc.) should be provided to the team with respect to the amount spent on fuel. Supporting documents (log books, fuel register, invoices, receipts, etc.) are provided to the team with respect to the amount spent on fuel. H No supporting documents (log books, fuel register, invoices, receipts, etc.) were provided to the team with regard the amount expended. Supporting documents (log books, fuel register, invoices, receipts, etc.) are to be provided to the team with respect to the amount spent on fuel. (log books, fuel register, invoices, receipts, etc. March, 2022 Finance Unit

53. 52 S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Delay in Government Allocation 7 The Government of Sierra Leone (GoSL) through the Ministry of Finance (MOFED) should ensure that quarterly allocations (actual) are disbursed on time. The Government of Sierra Leone (GoSL) through the Ministry of Finance (MOFED) ensured that quarterly allocations (actual) are disbursed on time. L Marked delays in the disbursement of funds from the Ministry of Finance to the Ministry of Water Resources. The Government of Sierra Leone (GoSL) through the Ministry of Finance (MOFED) to ensure that quarterly allocations (actual) are disbursed on time. Quarterly Allocation March, 2022 Planning Unit/Budget Officer and Finance Department S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges /Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Revenue Generation 8 The Ministry should try to supplement government budget support by identifying and exploring potential ways to make revenue and sustain them. The Ministry identified and explored potential ways to generate revenue and sustain them. H There was no evidence presented to show that the ministry generates revenue despite the fact that it possesses Water Bowsers/tankers that used to supply water externally on commercial basis. The Ministry to identify and explore potential ways to generate revenue and sustain them. • R evenue streams identified • Revenue generated March, 2022 Finance Unit 9 The Finance Unit should give full details on all revenue generating activities of the ministry inclusive of the water bowsers. Full details of revenue activities including the revenue solicited from the water bowser provided by the Finance unit. H Full details of revenue activities including the revenue solicited from the water bowser to be provided by the Finance unit. • Revenue reports • Financial reports March, 2022 Finance Unit

3. 2 TABLE OF CONTENT LIST OF ABBREVATION ...........................................................................................4 EXECUTIVE SUMMARY............................................................................................5 SUMMARY OF KEY FINDINGS AND RECOMMENDATIONS.....................................5 1.0 BACKGROUND INTRODUCTION.......................................................................9 2.0 OBJECTIVE ............ ........................................................................................ . 10 3.0 SCOPE ............... ...................................................... ....................................... . 10 4.0 METHODOLOGY ................................................ .......................................... ... 11 5.0 LIMITATIONS OF THE REVIEW ................................................................... . . 11 6.0 THE BUDGET PROCESS.............................................................................. ... 1 1 7.0 MINISTRY OF WATER RESOURCES ................................................................14 7.1 FINDINGS AND RECOMMENDATIONS ......................................................... . . 15 7.2 BUDGET PREPARATION .............................................................................. ... 15 7.2.1 STRATEGIC PLAN ....................................................................................... . 15 7.2.2 PARTICIPATION IN BUDGET PREPARATION ................................. ......... ... 16 7.2.3 BUDGET COMMITTEE .............................................................................. ... 17 7.3 BUDGET FUNDING .................................................................................... . . 18 7.3.1 Variance in Government Allocation and approved Budget ..................... ... 18 7.3.2 DELAY IN GOVERNMENT ALLOCATION ................................................ . .. . 20 7.3.3 Revenue Generation .............................................................................. .... 20 7.3.4 Donor Fund & Project Management .................................................... ... . . 21 7.3.4.1 Freetown Dry Season Water Supply Project (FDSWSP) ..................... ... . 22 7.4 BUDGET EXECUTION .............................................................................. 34 7.4.1 Budget Line items and Activity plan (Budget Deviation) ........................ 34 7.4.2 Development of Adjusted Budget after Disbursement ........................... 35 7.5 FINANCIAL MANAGEMENT ..................................................................... . 36 7.5.1 POOR RECORDS MANAGEMENT ............................................................ 36 7.5.2 WITH HOLDING TAX (WHT) .................................................................. 37 7.5.3 Failure to provide supporti ng documents for Expenditure on Budgetary A llocation ............................................................................................... 38 7.5.4 Bank Reconciliation .............................................................................. . . 39 7.6 PROCUREMENT MANAGEMENT ............................................................ . 40 7.7 STORES MANAGEMENT ........................................................................ . 41

51. 50 COMPLIANCE IMPLEMENTATION PLAN FOR THE MINISTRY OF WATER RESOURCES Anti - Corruption Objectives Budget Preparation S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of V erification (MOVs) Completion Date Responsible Strategic Plan 1 The Ministry should develop a strategic plan in consultation with all cadres of staff and made available to end users A strategic plan that is inclusive of the input of all cadre is developed and made available to end users H There was no Strategic Plan presented to the Review Team. A strategic plan that is inclusive of the input of all cadre of staff to be well developed and made available to end users. The developed strategic plan March, 2022 Planning Unit/Budget Officer 2 Annual budgets should be drawn from the Strategic Plan Annual budget is informed by the strategic plan H There are no indications that budget was aligned to a strategic plan. The annual budget is to be informed by the strategic plan • Annual budget circular • Annual budget working papers March, 2022 Planning Unit/Budget Officer S/N Recommendations Indicator Activity (Input & output) Importa nce Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Complet ion Date Responsible Participation in budget Preparation 3 Every operational unit should prepare budget in line with their work plan which then collated into departmental budget and then consolidated into the entity overall budget. Every operation unit prepared, collated and consolidated their departmental budget into the overall budget. H There is no evidence to show that departmental budgets were prepared to form the consolidated budget or whether the process was not limited to executive level but was inclusive of the rest of the Ministry. Every operation unit to prepare, collate and consolidate their departmental budget into the overall budget. • Work plan • Departmental budget • Other working papers March,2022 Planning Unit/Budget Officer

60. 59 S/N Recommendations Indicator Activity (Input & output) Impor - tance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Complet ion Date Responsible Focus Area Procurement management 30 A system should be established that prohibit document to be in the sole custody of individual rather than filed at the office premises. Procurement document kept within the office premises. H - There was no proper handing over done and documents were claimed to be in the custody of the former procurement head of the Ministry. Procurement document to be kept within the office premises. Procurement document file March, 2022 Human Resources 31 All staff leaving the Ministry should do proper handing before proceeding. Proper handling over done before staff proceed on leave. H Proper handling over to be done before staff proceed on leave. Handling over notes - Leave/retirement/Suspension and dismissal letters March, 2022 Human resources S/N Recommendations Indicator Activity (Input & output) Importa nce Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Comple tion Date Responsible Focus Area Stores management 32 Management should relocate the store room to a conducive location to ensure proper handling and accountability of procured items and equipment. Store room relocated to a conducive location to ensure proper handling and accountability of procured items and equipment. M The Ministry lacks proper storage facility as a result the generator room is used /converted to store some items procured. The environment is inappropriate and not conducive for the purpose. Store room to be relocated to a conducive location to ensure proper handling and accountability of procured items and equipment. Store room Marc, 2022 Permanent Secretary 33 Management should ensure that the storekeeper is provided with an assistant and also ensure that the storekeeper is giving the required training in the discharge of his functions for effective and efficient service delivery. Storekeeper provided with an assistant and also ensure that the storekeeper and trained to discharge his/her functions effectively and efficiently. M The team realized that the Storekeeper had no Assistant and the pre - requisite qualification in discharging his duties. Storekeeper to be provided with an assistant and also ensure that the storekeeper and trained to discharge his/her functions effectively and efficiently. • Staff list • Training certificate March, 2022 Permanent Secretary

52. 51 S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Budget Committee 4 The Ministry together with the Budget Bureau should ensure a stationed budget officer is assigned. A stationed Budget Officer assigned to the Ministry of Water Resources M It was identified that the Budget officer assigned to the Ministry by t he Budget Bureau, serves other A gencies in the W ater S ector including the Energy Ministry. Also, the budget officer is residence at the Ministry of Energy. A S tationed Budget Officer to be assigned to the Ministry of Water Resources • Posting letter • Staff list • Office space March, 2022 Human Resources Department 5 The Committee activities such as meetings, resolution and budget monitoring reports should be properly recorded and acted upon. The Committee activities such as meetings, resolutions and budget are properly recorded and acted upon. M The Committee activities such as meetings, resolutions and budget to be properly recorded and acted upon. • Minutes of meetings • Resolutions • Monitoring reports March, 2022 Human Resources Department S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Variance in Government Allocation and approved Budget 6 A ll variances should be properly investigated to determine its cause and remedy taken by Government. All variances are properly investigated to determine its cause and remedy taken by Government L No further details with regards the adverse budget variance of Le173,149,000 (one hundred and seventy three million, one hundred and forty nine thousand Leones). All variances are to be properly investigated to determine its cause and remedy taken by Government • Variance analysis report • Correspondence from the Government March,2022 Planning Unit/Budget Officer

58. 57 24 Document with regards to vehicle maintenance should be provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. Document with regards to vehicle maintenance provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. H No document with regards to vehicle maintenance was provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. Document with regards to vehicle maintenance to be provided to the team. For instance, name of garage, number of vehicles maintenance, payment vouchers and receipts. Documents such as name of garage, number of vehicles maintenance, payment vouchers and receipts. March, 2022 Procurement unit/Finance unit S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Budget Line items and Activity plan (Budget Deviation) 25 In cases of variances in budget funds, the budget should be revised and activity plan should be line with the revised budget. In cases of variances in budget funds, the budget is revised and activity plan aligned with the revised budget. H It was observed that In cases of adverse budget, activity plans are rarely in line with approved budget. In cases of variances in budget funds, the budget is to be revised and activity plan aligned with the revised budget. • Budget • Activity plan • revised activity plan March, 2022 Planning unit/Budget officer S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible Focus Area Financial management 26 Management should have a comprehensive document retention policy. A comprehensive document retention policy is crafted by Management. Poor records management as files were not systematically filed with respect to individual activities but rather bundled up. A comprehensive document retention policy to be crafted by Management. Retention policy March, 2022 Planning Unit/Human Resources unit 27 Management should ensure every document is maintained, accurately indexed and categorized. Management ensured that every document is maintained, accurately indexed and categorized. Management to ensure that every document is maintained, accurately indexed and categorized. • Files • Financial records March, 2022 Finance Unit

61. 60 34 The Stores Unit should be supervised and monitored by a senior staff from the Directorate of Stores. The Stores Unit supervised and monitored by a senior staff from the Directorate of Stores. H It was discovered that the stores officer reports directly to the Permanent Secretary instead of the Directorate of Stores. The Stores Unit to be supervised and monitored by a senior staff from the Directorate of Stores. • Supervision reports • Stores reports March, 2022 Permanent Secretary 35 All requisitions should not be done verbally but follow the due process. All requisitions followed the due process. Verbal instructions given to procurement to initiate requisition for goods to be procured All requisitions to follow the due process. • Requisitions March, 2022 Stores Director Anti - Corruption Objectives Budget Control S/N Recommendations Indicator Activity (Input & output) Importan ce Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completi on Date Responsible Focus Area Stores management 36 Management should the Internal Audit work is not limited by providing the necessary support and logistics required to efficiently and effectively carryout the activities in the Annual Audit Plan. The necessary support and logistics provided to Auditor by Management to effectively and efficiently carry out the activities in the Annual Audit plan. M The Audit Unit maintained an Annual Audit Plan, but the unit was strictly limited in executing all activities as contained in the plan for the financial year under review 2019. The necessary support and logistics to be provided to Auditor by Management to effectively and efficiently carry out the activities in the Annual Audit plan. • Annual Audit plan. • Logistics and support ended to Audit. March, 2022 Permanent Secretary 37 Internal Auditor should ensure they effect such regulation while conducting their audit Internal Auditors effected regulation while conducting audit H In spite of the fact that IA is exposed to a whole lot of regulations in the conduct of their audit, they have not been able to effectively effect these regulation when under their audit duties. Internal Auditors to effect regulation while conducting audit Audit report March, 2022 Internal Audit 38 Management should ensure that internal audit queries are adhered to and the recommendations proffered by the audit must be implemented. Management ensured that internal audit queries are adhered to and recommendations proffered by the audit must be implemented. H The team observed that the internal Audit queries are not adequately and/or not responded to as management seems not to treat the reports with utmost importance. Management to ensure that internal audit queries are adhered to and recommendations proffered by the audit must be implemented. - Audit reports - Management response - Audit committee meeting minutes March, 2022 Audit Committee Chairman

54. 53 S/N Recommendations Indicator Activity (Input & output) Importance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completion Date Responsible o fficer Bowser Rental 10 Penalty clauses should be included in subsequent contract the Ministry of Water Resources is entering into as buyer of goods or services. Penalty clauses included in subsequent contracts entered into by the Ministry, when serving as a buyer. H The team realized that there is no penalty clause for breach of contract on the side of the buyer (the Ministry of Water Resources). Penalty clauses to be included in subsequent contracts entered into by the Ministry, when serving as a buyer. Subsequent contracts March, 2022 Admin/Procurement/Finance 11 The M inistry must pay Charlesco Company amount due for work completed Le62,000,000 and/or balance of Le44,000,000 paid to Charlesco company for bowser rental service. H It observed that there is no proper mechanism in place to address the payment of Le 62, 000,000 and /or balance of Le 44,000,000 for bowser rental dispute or effectively manage the overall project. Le 62, 000,000 and /or balance of Le 44,000,000 to be paid to Charlesco company for bowser rental service. • Payment voucher • Bank statement March, 2022 Finance Unit 12 It is recommended that evidence of source documents such as time sheet/log book with respect to communities covered per day should be provided Evidence of source documents such as time sheet/lo g book provided with respect to communities covered on a daily basis. H There is no evidence of source documents with respect to the time sheet / log book with regards to the areas or communities covered per day. Evidence of source documents such as time sheet/log book to be provided with respect to communities covered on a daily basis. • Log book/Time book • List of communities’ catchment area. March, 2022 Finance Unit 13 Evidence of r eceipt from the supplier should be provided as evidence of payment. Evidence of receipt from the supplier provided as evidence of payment. H No evidence of receipt from the supplier was provided as evidence of payment. Evidence of receipt from the supplier to be provided as evidence of payment. Payment receipts March, 2022 Finance Unit 14 Deviation from project proposal should be officially done and well documented. Deviation from project proposal is done officially and well documented. A complete deviation from the project proposal (recalling of 10 bowsers from GVWC and SALWACO and entering into contract with a private supplier) with no evidence to show that such deviation is documented. Deviation from project proposal to be done officially and well documented. • Minute of meeting when decision was taken. • Proposal monitoring/evaluation report March,2022 Permanent Secretary

57. 56 S/N Recommendations Indicator Activity (Input & output) Impor tance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Comple tion Date Responsible Stipend to contract staff 19 (GWVC and MWR) staff should not be referred to as contract staff because they are full time employees and at the same time receiving stipends. (GWVC and MWR) staff desisted from referring to as Contract and not paid stipend. H It was discovered that most and /or all of the contract staff receiving stipends are full time employees of the various institutions (GWVC and MWR). (GWVC and MWR) staff to be desisted from referring to as Contract and not to be paid stipend. • Staff list of (GWVC and MWR) • Payroll of (GWVC and MWR) March, 2022 Human resource unit/ Finance Unit S/N Recommendations Indicator Activity (Input & output) Impor tance Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Comple - tion Date Responsible With Holding Tax (WHT) 20 Tax obligations should be honored as stipulated by law . Tax obligations honored as stipulated by law. H It was observed that withholding tax deductions are done at the ministry of Finance and the deducted tax amount is credited to NRA’s account at the Bank of Sierra Leone. Tax obligations to be honored as stipulated by law • Tax payment • Tax schedule March, 2022 Finance unit 21 The M inistry should ensure that all suppliers’ tax receipts are forwarded to the suppliers. The M inistry ensured that all suppliers’ tax receipts are forwarded to the suppliers. M The ministry to ensure that all suppliers’ tax receipts are forwarded to the suppliers. ▪ Dispatch records • - Correspondences March, 2022 Finance Unit 22 WHT deductions should be deducted at source and returns credited to NRA. WHT deductions are deducted at source and returns credited to NRA. H WHT deductions are to be deducted at source and returns credited to NRA. • Tax payment • - Tax schedule March, 2022 Finance unit S/N Recommendations Indicator Activity (Input & output) Importan ce Baseline situation/ Challenges/Findings ACC’S Target Means of verification (MOVs) Completi on Date Responsible Budget Line items and Activity plan (Budget Deviation) 23 Management should ensure that all activity planned are in line with the approved budget. Alignment of planned activities and approved budget is ensured by management. H It was discovered that Le32,000,000 (thirty two million Leones) was expended for vehicle maintenance without being part of the budget. Alignment of planned activities and approved budget is to be ensured by management. • Planned activities • Approved budget March, 2022 Planning unit/Budget Officer

5. 4 LIST OF ABBREVIATIONS ACC - Anti - Corruption Commission WOMR - Ministry Of Water Resources MoFED - Ministry of Finance and Economic Development GoSL - Government of Sierra Leone NRA - National Revenue Authority . WHT - With Holding Tax RM - Records management RT - Review Team MDAs - Ministries, Departments and Agencies GBAA - Government Budgeting and Accountability Act 2005 PFM - Public Financial Management Act 2016 SLEWRA - Sierra Leone Electricity and W ater Regulatory Agency SALWACO - Sierra L eone Water Company GUMA /GVWC - Guma V alley Water Company NWRMA - National Water R esources Management Agency FY - Financial Year LE - Leones FDSWSP - Freetown Dry Season Water Supply Project UNDP - United nati on Development Program UNICEF - United Nation Internati onal Children Emergency Fund NP - Nati onal Petroleum HRMO - Human Resource Mana gement Organisation WHT - Witholding Tax WASH - Water, Sanitation and hygiene Project OSR - Own Source Revenue RBF - Result Based Financing MCCU - Millennium Challenge Coordinating Unit

29. 28 The figure above shows the total amount of money spent on fuel as per fuel chits and/or reconciliation done by the team. Even though it was stated that 95L were to be supplied to each bowser of five, yet, the team noticed that there are more than five vehicles and some received more than the required quantity of fuel as required as shown below: Dates Vehicle N umber Number of V ehicles Litre of Fuel Actual Litre of Fuel Unit price (Le) Variance in F uel S upply Total Cost (Le) 4/3/19 AKP 366 AKP 092 2 100 100 95 95 7500 7500 5 5 37,500 37,500 5/3/19 AKP 366 AKP 096 2 100 100 95 95 7500 7500 5 5 37,500 37,500 6/3/19 AKP 366 1 100 95 7500 5 37,500 7/3/19 AKP 366 AKP 096 2 100 100 95 95 7500 7500 5 5 37,500 37,500 8/3/19 AKP 366 AKP 096 2 100 100 95 95 7500 7500 5 5 37,500 37,500 9/3/19 AKP 366 AKP 096 2 100 100 95 95 7500 7500 5 5 37,500 37,500 10/3/19 AKP 366 AKP 096 2 100 100 95 95 7500 7500 5 5 37,500 37,500 11/3/19 AKP 366 AKP 096 AMG 780 AMG 781 AJZ 759 AFI 277 6 100 100 100 100 100 100 95 95 95 95 95 95 7500 7500 7500 7500 7500 7500 5 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 37,500 12/3/19 AKP 366 AKP 092 AMG 780 AMG 781 AJZ 759 AFI 277 AMG 983 7 100 95 95 95 95 95 95 95 95 95 95 95 95 95 7500 7500 7500 7500 7500 7500 7500 5 0 0 0 0 0 0 37,500 13/3/19 AKP 366 AMG 780 AMG 781 AJZ 759 AFI 277 AMG 983 6 100 95 95 95 95 95 95 95 95 95 95 95 7500 7500 7500 7500 7500 7500 5 0 0 0 0 0 37,500 14/3/19 AKP 366 AMG 780 AMG 781 AJZ 759 AFI 277 AMG 983 6 100 95 95 95 95 95 95 95 95 95 95 95 7500 7500 7500 7500 7500 7500 5 0 0 0 0 0 37,500

30. 29 17/3/19 AKP 366 AMG 780 AMG 781 AJZ 759 AFI 277 AMG 983 6 100 100 100 100 100 100 95 95 95 95 95 95 7500 7500 7500 7500 7500 7500 5 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 37,500 18/3/19 AKP 366 100 95 7500 5 37,500 19/3/19 AKP 366 100 95 7500 5 37,500 13/5/19 AKP 366 AMG 983 100 100 95 95 7500 7500 5 5 14/5/19 AFI 277 AJZ 759 AMG 780 AMG 781 AMG 983 5 100 100 100 100 100 95 95 95 95 95 7500 7500 7500 7500 7500 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 18/5/19 AFI 277 AJZ 759 AMG 780 AMG 781 AMG 983 5 100 100 100 100 100 95 95 95 95 95 7500 7500 7500 7500 7500 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 19/5/19 AFI 277 AJZ 759 AMG 780 AMG 781 AMG 983 5 7500 7500 7500 7500 7500 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 20/5/19 AFI 277 AJZ 759 AMG 780 AMG 781 AMG 983 5 100 100 100 100 100 95 95 95 95 95 7500 7500 7500 7500 7500 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 21/5/19 AFI 277 AJZ 759 AMG 780 AMG 781 AMG 983 5 100 100 100 100 100 95 95 95 95 95 7500 7500 7500 7500 7500 5 5 5 5 5 37,500 37,500 37,500 37,500 37,500 14/6/19 AFI 277 AJZ 759 AMG 780 AMG 781 4 100 100 100 100 95 95 95 95 7500 7500 7500 7500 5 5 5 5 37,500 37,500 37,500 37,500 21/6/19 AFI 277 AJZ 759 AMG 780 AMG 781 4 100 100 100 100 95 95 95 95 7500 7500 7500 7500 5 5 5 5 37,500 37,500 37,500 37,500 TOTAL 7500 285 2,137,500