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Development Fund for Iraq and Successor Account

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Development Fund for Iraq and Successor Account Development Fund for Iraq and Successor Account Memorandum of Matters Arising During the Audit (Prior Year Findings and Follow-Up) Visited Ministries Report 31 December 2015 Table of contents Page Number Symbols Legend A Summary of Findings B Observation Ministry of Telecommunication 1 Ministry of Agriculture 13 Ministry of Youth and Sport 21 Ministry of Foreign Affairs 28 Ministry of Education 36 Ministry of Industry and Minerals 40 Endowments of the Christian and Other Religions Divan 45 Ministry of Construction and Housing 49 Ministry of Municipalities and Public Works 58 Endowment of Shiite 64 The Independent High Election Commission 68 Ministry of Higher Education 73 Ministry of Labor and Social Work 86 Ministry of Health 91 Ministry of Culture 100 Ministry of Transportation 111 Ministry of Interior 129 Ministry of Environment 131 Ministry of Oil 135 Ministry of Defense 145 Ministry of Electricity 150 Ministry of Justice 161 Ministry of Migration and Displacement 170 Ministry of Trade 177 Ministry of Water resources 184 Mayoralty of Baghdad 196 Sunni Endowment 208 Symbols Legend The report includes the following finding rankings: 229 Symbol Descriptions ديوان الوقف السين Finding relates to critical weakness issues which impacts the achievement High Risk of main objectives, financial results or professional reputation. We recommend that immediate corrective actions should be taken. Finding relates to Moderate risk issues which may result in weakened internal control system and/or operational activities efficiency. Such Moderate Risk issues must be disclosed. We recommend that corrective actions should be taken in the short run. Finding relates to identified issues during our review which may not affect the internal control system and/or operational activities efficiency. Low Risk However, such Observation deserve attention by management. We recommend that corrective actions should be taken within a reasonable timeline. A - - Summary of Findings No. Entity Finding Risk degree Ministry of Telecommunication - Approval of financial records and closing 2 Ministry Headquarter statements Moderate Risk Ministry of Telecommunication - Approval of financial records and closing Iraqi Telecommunication and Post 4 statements Moderate Risk Company Ministry of Telecommunication - 5 Iraqi Telecommunication and Post Letters of credit High Risk Company Ministry of Telecommunication - 6 Iraqi Telecommunication and Post Lagging in implementation High Risk Company Ministry of Telecommunication - 9 State Company for Internet Breach of contract terms Moderate Risk Services Ministry of Telecommunication - 10 State Company for Internet Additional periods High Risk Services Ministry of Telecommunication - 11 State Company for Internet Inaccurate projects feasibility studies High Risk Services Ministry of Agriculture - Ministry Approval of financial records and closing 14 Headquarter statements Moderate Risk Ministry of Agriculture - Ministry Weak internal control and audit tasks 15 Headquarter Moderate Risk Ministry of Agriculture - Ministry Lagging in construction 16 Headquarter High Risk Ministry of Agriculture - Ministry Exchange documents numbered manually 18 Headquarter High Risk Ministry of Agriculture - State Letters of credit 20 Company for Agricultural Supplies High Risk 22 Ministry of Youth and Sports Financial Statements High Risk 23 Ministry of Youth and Sports Suspended advances from previous years High Risk 24 Ministry of Youth and Sports Low ratios of strategic projects completion High Risk 26 Ministry of Youth and Sports Breach of contract terms High Risk 27 Ministry of Youth and Sports Delay in completion and work obstructions High Risk 29 Ministry of Foreign Affairs Overseas contracts High Risk 30 Ministry of Foreign Affairs Contracts and supporting data High Risk Duties and responsibilities of internal control Ministry of Foreign Affairs 31 and audit section Moderate Risk Government contracts section duties and Ministry of Foreign Affairs 32 responsibilities High Risk 33 Ministry of Foreign Affairs Closing accounts – Overseas missions High Risk Construction contract for the club of the Ministry of Foreign Affairs 34 Ministry of Foreign Affairs Low Risk 35 Ministry of Foreign Affairs Absence of approved organizational structure Moderate Risk 37 Ministry of Education Low projects completion rates High Risk -B- Summary of Findings 38 Ministry of Education Establishing printing press Moderate Risk 39 Ministry of Education Postpaid contracts High Risk Ministry of Finance loan for development of Ministry of Industry and Minerals 41 industrial companies High Risk Contracts of preparation, update and 42 Ministry of Industry and Minerals assessment of work plans of the state High Risk companies affiliate to the Ministry 43 Ministry of Industry and Minerals Low completions percentages High Risk Tasks and duties of Governmental Contracts Ministry of Industry and Minerals 44 Department High Risk Endowments of the Christian Low completion rates 46 Religion and Other Religions Moderate Risk Endowments of the Christian Absence of standard centralized reports 47 Religion and Other Religions Moderate Risk Endowments of the Christian Unpaid due expenses 48 Religion and Other Religions Low Risk Residential complex construction contract in Ministry of Construction and Karbala – Al Jazeera 1/Department of 50 Housing High Risk Housing Ministry of Construction and Obstacles and conflicts 51 Housing High Risk Ministry of Construction and Delay in project completion 52 Housing High Risk Ministry of Construction and Efficiency of contracted company 53 Housing High Risk Ministry of Construction and Additional extension periods for the 55 Housing companies High Risk Ministry of Construction and Percentage of technical completion 57 Housing Moderate Risk Ministry of Municipalities and Obstacles and conflicts 59 Public Works High Risk Ministry of Municipalities and Low projects completion rates 60 Public Works High Risk Ministry of Municipalities and Additional grace periods for the companies 61 Public Works High Risk Ministry of Municipalities and Official holidays/Religious events 62 Public Works High Risk Ministry of Municipalities and Outstanding advances 63 Public Works Moderate Risk 65 Endowment of Shiite Low ratio of technical completion High Risk 66 Endowment of Shiite Delay in trust implementation works High Risk 67 Endowment of Shiite Low completions percentages Moderate Risk The Independent High Election Financial Statements 69 Commission High Risk The Independent High Election Bank Reconciliation 70 Commission High Risk The Independent High Election Records balances 71 Commission High Risk The Independent High Election Advances and Deposits 72 Commission Moderate Risk -B- Summary of Findings Ministry of Higher Education & Duties and responsibilities of internal control 74 Scientific Research and audit section High Risk Ministry of Higher Education & Low projects completion rates 75 Scientific Research High Risk Ministry of Higher Education & Contract for construction of halls for basic 76 Scientific Research sciences/dentistry/Baya complex High Risk Ministry of Higher Education & Educational hospital construction contract 77 Scientific Research (600 beds) / University of Karbala High Risk Ministry of Higher Education & Establishing the Iraqi Commission for 78 Scientific Research Information and Computers project Moderate Risk Ministry of Higher Education No organizational structure or formal job 80 (Science & Technology) description Moderate Risk Ministry of Higher Education Low projects completion rates 81 (Science & Technology) High Risk Ministry of Higher Education Non-readiness of work sites 82 (Science & Technology) High Risk Ministry of Higher Education Ministry’s staffing structure 83 (Science & Technology) Moderate Risk Ministry of Higher Education Financial data 84 (Science & Technology) Moderate Risk Ministry of Higher Education Verification against Ministry of Finance 85 (Science & Technology) records Moderate Risk Labor section and vocational training building Ministry of Labor and Social Work 87 construction in Babel High Risk Supply contract for 9 welding workshops Ministry of Labor and Social Work 88 supply High Risk 89 Ministry of Labor and Social Work Beneficiaries data updating High Risk Supply contract for refrigerators, air- Ministry of Labor and Social Work 90 conditioners and water coolers High Risk Approval of financial records and closing Ministry of Health – Ministry HQ 92 statements Moderate Risk 93 Ministry of Health – Ministry HQ Coordination obstacles and weaknesses High Risk Ministry of Health State Company for Marketing Breach of contract terms and non-utilization 95 High Risk Drugs and Medical Appliances of the whole supplied quantity (Kimadia) Ministry of Health Delay in preparation State Company for Marketing 96 Drugs and Medical Appliances High Risk (Kimadia) Ministry of Health Materials which have failed inspection and State Company for Marketing 97 Drugs and Medical Appliances delay in sending materials and inspection High Risk (Kimadia) procedures Ministry of Health Inaccurate procedures for inspection and State Company for Marketing 98 Drugs and Medical Appliances verification of received materials High Risk (Kimadia) Ministry of Health Inaccurate feasibility studies for supply 99 State Company for Marketing High Risk contracts and non-verification of usage -B- Summary of Findings Drugs and Medical Appliances efficiency (Kimadia) “Baghdad, the Capital of Arab Culture” Ministry of Culture 101 Project
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