addition it was possible for the client to decide to make additional

Addition it was possible for the client to decide to

This preview shows page 47 - 49 out of 67 pages.

addition, it was possible for the client to decide to make additional verifications and quality controls. 96. While we acknowledged that the management relied on SIA norms for ensuring quality, we also noted that WIPO had incorporated contractual provisions (retainers on payments, bank guarantee on advance etc.) in addition to SIA norms to protect the interest of the organization. Recommendation no. 18 We recommend that quality control measures should be explicitly incorporated in the contracts relating to capital projects. 97. The Organization accepted the audit recommendation subject to the Swiss regulatory or other legal frameworks, in particular the Code of obligations, the SIA Norms, and any other applicable Geneva Cantonal or Municipal provisions. Time and cost overrun 98. We noted that an amount of 69.12 million Swiss francs has been spent as on 31 December 2013 against the approved budget of 68.2 million Swiss francs. In addition, 0.87 million Swiss francs (commitment charges on bank loan and salary of project manager), which were integral part of the construction for making of the NCHP, were financed from the regular budgets. Considering this, the total cost overrun as on 31 December 2013 was 1.79 million Swiss francs. 99. The table below indicated a time overrun of about 14 months, if the project was completed by the revised time schedule of June 2014.
Image of page 47
WO/PBC/22/3 page 44 WIPO-Report of the External Auditor Financial Year 2013 C&AG of India Page 39 Description Time schedule planned Revised time schedule Contract with GC (May 2011) April 2013 Contract terminated in July 2012 After WIPO had taken over February 2014 June 2014 100. The management stated that the approved budget provisions for the NCHP included the amount of 4.5 million Swiss francs approved by Member States in 2011 in addition to the 2008 and 2009 approved budget provisions of 68.2 million Swiss francs. The resulting overall budget provisions approved for the NCH amounted to 72.70 million Swiss francs as at October 2011. The amount of commitment of 69.12 million Swiss francs was comparable to the total amount of the approved budget provisions of 72.70 million Swiss francs, not to 68.20 million Swiss francs. The cost of the in-house project manager, IPMT, had been charged to the regular budget (program 29), as approved by Member States for the NCHP in the context of the biennial programs and budgets. 101. With regard to the inclusion of savings of 4.5 million Swiss francs from the cost of NCP, we observed that against the approved budget of 161.74 million Swiss francs for NCP, the project budget utilization as on 30 June 2011 was 159.47 million Swiss francs, indicating a saving of about 2.27 million Swiss francs. As the construction on NCP was then incomplete, the saving of 4.5 million Swiss francs was not real. Accordingly, we have compared the cost overrun to the original approved cost of 68.20 million Swiss francs for the NCHP. Further, the salary of project manager and commitment charges on Bank loan should also be brought under total construction cost of the project.
Image of page 48
Image of page 49

You've reached the end of your free preview.

Want to read all 67 pages?

  • Summer '17
  • External auditor, Auditor's report, World intellectual Property organization

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors