Annual general report of the controller and - Parliament of Tanzania
Annual general report of the controller and - Parliament of Tanzania Annual general report of the controller and - Parliament of Tanzania
The revenue relating to water and sewerage charges at DAWASCO represents the operator element of the water and sewerage tariff billed to customers during the year. The Corporation inherited a customer data base from the previous City Water Services Limited. The data base had a number of weaknesses namely: • Preparation and issue of incorrect bills due to incorrect meter readings and estimated consumption. Inaccurate meter readings are attributable to faulty meters and inability of the meters to cope with instances of low water pressure in the network that occur from time to time. • Numerous instances were detected during the year of active water connections that have not been billed. • Numerous instances were noted during the year where meter readings could not be matched to customer accounts in the billing database. This indicates instances of unrecorded revenue but has not been quantified. • Failure to achieve the Key Performance targets stipulated in the Lease Agreement between DAWASCO and DAWASA The Corporation is required to achieve the Key Performance Indicators (KPIs) and Key Performance Targets (KPTs) agreed by Dar es Salaam Water and Sewerage Authority (DAWASA) and DAWASCO as stipulated in the Lease Agreement dated 2 September 2005 as amended and restated as of 12 th December 2005. During review of the Key Performance Indicators (KPIs) and Key Performance Targets (KPTs) indicated that during the year the Key Performance Targets (KPT’s) outlined in the table below were not achieved by the Corporation. ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 110
Key performance targets not achieved by the Corporation Key Performance Target No Component 1. Customer Meter Installation 2. New Water Supply Customers 3. Collection target Units Year 1 Year 2 Year 3 Year 4 Year 5 Achievements as at 30 June Remarks 2008 (year 3) No. 14,475 16,500 16,50016,50017,500 8,570 Failed No. 12,500 30,500 27,00010,5005,000 9,844 Failed Shs’million 1,700 month 2,300 3,100 3,700 3,750 1,619 Failed This implies non compliance with article 38.4 of the lease agreement and attracts a financial penalty equal to 0.5% of the weekly revenue for each week of delay or part thereof after the due date. In this regard a penalty amounting to Shs 121 million was provided for in the financial statements. In the prior year, the penalty was Shs 74 million. Further, going concern basis of accounts preparation for the Corporation is questionable under achievement of the key performance targets contribute to low revenues and collections and hence the risk of inability to meet repayments of borrowings and other liabilities as they fall due in the future. 6.6 Central Bank of Tanzania (BOT) • BOT plan to engage a Consultant or Firm to Undertake a Review of the Status of EPA Liabilities The External Payment Arrears (EPA) saga has been one of the event that signifies the grand malpractice that can be undertaken in key Government institutions. In order to prevent the same event and the related ones to re-occur in the future, the responsible authorities had taken several measures including forcing the people involved to repay the stolen money back and taking legal action against them. ___________________________________________________________ Office of the Controller and Auditor General PA&oBs 2007/08 111
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The revenue relating to water <strong>and</strong> sewerage charges at<br />
DAWASCO represents <strong>the</strong> operator element <strong>of</strong> <strong>the</strong> water<br />
<strong>and</strong> sewerage tariff billed to customers during <strong>the</strong> year.<br />
The Corporation inherited a customer data base from <strong>the</strong><br />
previous City Water Services Limited. The data base had a<br />
number <strong>of</strong> weaknesses namely:<br />
• Preparation <strong>and</strong> issue <strong>of</strong> incorrect bills due to incorrect<br />
meter readings <strong>and</strong> estimated consumption. Inaccurate<br />
meter readings are attributable to faulty meters <strong>and</strong><br />
inability <strong>of</strong> <strong>the</strong> meters to cope with instances <strong>of</strong> low<br />
water pressure in <strong>the</strong> network that occur from time to<br />
time.<br />
• Numerous instances were detected during <strong>the</strong> year <strong>of</strong><br />
active water connections that have not been billed.<br />
• Numerous instances were noted during <strong>the</strong> year where<br />
meter readings could not be matched to customer<br />
accounts in <strong>the</strong> billing database. This indicates<br />
instances <strong>of</strong> unrecorded revenue but has not been<br />
quantified.<br />
• Failure to achieve <strong>the</strong> Key Performance targets<br />
stipulated in <strong>the</strong> Lease Agreement between DAWASCO<br />
<strong>and</strong> DAWASA<br />
The Corporation is required to achieve <strong>the</strong> Key<br />
Performance Indicators (KPIs) <strong>and</strong> Key Performance Targets<br />
(KPTs) agreed by Dar es Salaam Water <strong>and</strong> Sewerage<br />
Authority (DAWASA) <strong>and</strong> DAWASCO as stipulated in <strong>the</strong><br />
Lease Agreement dated 2 September 2005 as amended <strong>and</strong><br />
restated as <strong>of</strong> 12 th December 2005.<br />
During review <strong>of</strong> <strong>the</strong> Key Performance Indicators (KPIs) <strong>and</strong><br />
Key Performance Targets (KPTs) indicated that during <strong>the</strong><br />
year <strong>the</strong> Key Performance Targets (KPT’s) outlined in <strong>the</strong><br />
table below were not achieved by <strong>the</strong> Corporation.<br />
___________________________________________________________<br />
Office <strong>of</strong> <strong>the</strong> Controller <strong>and</strong> Auditor General PA&oBs 2007/08 110