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Compliance Score Card
Performance Contract
Introduction
Contract Compliance Score card & checklist have been designed to underpin compliance with and effectiveness of the Performance Contract
Simple and easy to use tool to assist the DWD Regulation Unit establish an effective mechanism for PC compliance
Designed to ensure effective implementation and monitoring of WA’s for compliance with specified terms and conditions PC
Purpose of Score CardIn combination, the Checklist & Scorecard form
a tool to assist WAs in exercising oversight and supervisory functions over water operators
Helps users to make concise references to requirements of the contract on a Clause by Clause basis
Enables ease of assessment of technical, commercial, financial and management performance and reporting requirements
Ensures that stakeholders to the contract fully understanding their respective mandates
The checklist also suggests the nature of inquiry to make regarding activities, documents or assets defined in the scope of the PC
Scope of ChecklistResponses to and issues arising from the
inquiry are against indicators to determine the extent of compliance to a specific contract requirement
Checklist prescribes a documentary evidence approach to verification of testimonials and documents pertaining to the oversight function by the WA/WSSB
Checklist has clustered all Clauses and Schedules of the Performance Contract into six broad contractual obligations
The Contractual Obligations1. Holding, control, management and use of assets
2. Legal and regulatory compliance
3. Compliance with technical requirements
4. Compliance with financial management requirements
5. Compliance with commercial requirement
6. Transparency, governance and reporting requirement
Holding, Control, Management & Use of AssetsSpecific area of focus;Tracking location of network assetsIdentifying & safeguarding water supply assets
and network infrastructureFollowing up implementation of asset and
network investments to increase service coverage
Developing a mechanism for monitoring policy requirements for network expansion
Tracking and accounting for conditional grant utilization for asset acquisition and extension
Legal and Regulatory compliance Regulatory requirements are broader than water
policy elements and extend to;a. Local Government Act, b. Aspects like financial reporting, procurement,
environmental issues are governed by other legislation e.g. Audit Act, PPDA and Local Governments (PPDA) Procurement Regulations, NEMA Act, Public Finance & Accountability Act, Water Act etc.
Legal and regulatory compliance is intended to check on WA’s level of compliance with relevant laws and regulations
Focuses is on availability of the relevant legal & policy documents whose level of application is checked elsewhere in the checklist.
Compliance with technical obligationsIs aimed at achieving the following objectives;
1. Management of operation & maintenance costs at optimal levels
2. Enhance efficiency & effectiveness in operations management
3. Create/develop an efficient operations management monitoring system
4. Ensure adequate water and sanitation services5. Ensure reliability and sustainability of service quality &
delivery6. Development & implementation of effective process
control & monitoring to ensure water & sewerage effluent conform to National Standards
7. Ensure efficiency in conditional grants and CAPEX buffer utilization
8. Deploymentment of appropriately qualified and trained staff
Compliance with financial management requirements
Compliance with financial management obligations is aimed at ensuring;1. That cash collections are banked intact and secure2. Compliance with meeting financial obligations
including management fees, statutory obligations and energy (UMEME) bills
3. Monitoring eligibility of payments and prompt accountability
4. Accuracy, integrity and completeness of financial reports
5. Reconciliation of accounts and financial statements 6. Proper control & prompt recognition of income due to
the Authority7. Complete and accurate staff records8. Adherence to the approved business plans
Compliance with commercial obligationsCompliance with commercial management obligations is
aimed at;
1. Enhancing timely, accurate and proper billing by Authority and to collect, maintain and update customer information
2. Increasing customers willingness to pay by strengthening the WA’s obligation in respect to correct tariff application, billing, metering,
3. Ensuring that integrity and safety of the customer billing databases at the WA is enhanced and guaranteed
4. Enhancing a system to provide services to the urban poor in line with the pro-poor policy
5. Instituting a customer complaints and feedback system to achieve efficient service delivery
6. Instituting customer care systems for enabling communication with customers in respect of service interruptions
Transparency, governance and reporting obligation
Objective of this obligation is to ensure that there is a mechanism for policy monitoring; an avenue for the Minister to review and measure the effectiveness and compliance with the terms and conditions of the Performance contract
Using the ScorecardScorecard adopts the same layout as checklist for
ease of use in assigning scoresPresentation of the six broad PC obligations along
with maximum points under each header aims to underscore the significance of the obligation
Scorecard breaks down specific contract requirements into a number of result areas
Each results area requirement is allotted a maximum possible score for full compliance
Points are scored individually for each requirement upon document or physical verification
Scores for each key result area under the six obligations are summed up for the total score against which general PC compliance is assessed
Basis of the Score
The extent of severity in the event of breach of the contract requirement to the overall goal and strategic objective of the Performance Contract
The amount of effort needed by the WA/WSSB to achieve compliance
Criteria for Determining Individual ScoreTo determine the score, the checker needs to
probe for answers from WA/WSSB, review documents submitted & evaluate testimonials of compliance against specific contract requirements under scrutiny.
Compliance is then examined & scored against a predetermined maximum point as guided by e.g.
Availability 50% Accessibility 30%
Security 10% Currency/ Accuracy 10%
Preparing for the Audit
Prior to conducting a contract compliance audit the auditor should ensure that WA/WSSB targeted are availed a copy of the Checklist and Scorecard
Ample notice is given explaining the objective and purpose of the audit
The above help in reducing the amount of effort required to bring respondents in tandem to ensure their full participation.
Conducting the Audit InquiryThe checklist is the main guide for the inquiry into
compliance
The checker needs to have a copy of the New Generic Contract and other sector documents for reference
The auditor needs to understand not only the contract but policy related issues within the Water and Sanitation sector for effective guidance to WAs in respect of PC compliance.
The auditor needs to understand scheme specific issues particularly those which may be outside the control of the WAs
FeedbackThe scorecard is designed to give instant scores for
each entryResults of an audit can be availed to the WA being
audited instantlyChecker should keep an audit register of contract
infractions for ease of compiling a trip report and for purposes of engaging the Authority in developing a compliance and remedial action programme
The officer conducting the exercise should be empowered to enjoin WAs into a time bound commitment and action plans for redressing contract infraction and shortfalls in the oversight oversight function
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