The State Audit Office (SAO) completed an independent performance audit (IPA) of the World Bank financed "Secondary Road Asset Management Project" (SRAMP), which covers the period from July 6, 2016 to December 31, 2017. SRAMP is being implemented by the Roads Department of the Ministry of Regional Development and Infrastructure. The Loan Agreement for SRAMP was signed on March 28, 2016 between Georgia and the International Bank for Reconstruction and Development and is expected to close on December 31, 2021.
The objective of the first performance audit for SRAMP was to verify (i) eligible expenditures incurred under the Project in compliance with the procurement arrangements provided in the Loan Agreement, and (ii) verify progress and levels of achievement against the results achieved under the Project by December 31, 2017. The report outlines the findings and recommendations identified as a result of the audit conducted by the SAO’s audit team.
SAO auditors reviewed results delivered by the Project up to December 31, 2017, expenditures reported in the interim financial reports, and compliance of project activities with the Project Operational Manual and Procurement Plan. Auditors also verified the compliance of the Roads Department’s updated Five-year Rolling Program and Annual Plan with its Manual "Long-Term Planning for Preserving and Improvement of Road Assets".
Natalya Stankevich, World Bank Senior Transport Specialist and Task Team Leader for SRAMP, stated that the performance audit for SRAMP concluded that the planned results had been fully achieved for the period of July 6, 2016-December 31, 2017 and the World Bank would disburse loan proceeds as per results achieved under the Project.
According to Auditor General Irakli Mekvabishvili, the audit survey of the World Bank-supported project performed by the State Audit Office is in full compliance with international standards, reflects the general policy of the World Bank and is in line with their procedures.
"The audit of projects financed by international donors is crucial for us and is directly linked to the auditors\' professional development and qualifications and sets high standards for each auditor. Involvement in international projects qualitatively changes the approach of the SAO and enhances professionalism of each employee," said Irakli Mekvabishvili.
In January 2018, the World Bank and the Roads Department of Georgia, which has been implementing the SRAMP project, applied to the State Audit Office to conduct the performance audit of the project and verify the results.
The use of the innovative results-based financing approach, where payments loan proceeds are disbursed based on the achievement of specific results has been adopted by SRAMP and depends on the verification / confirmation of these results by an independent audit. This was the first time when the SAO carried out a performance audit for a project financed by an international donor.
The next performance audit of SRAMP will be conducted in early 2019 and will cover the period from January 1, 2018 to December 31, 2018.
