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- Ελληνικά
In comments on the contract and progress of the project to implement a new integrated banking system for the Housing Finance Agency, and on the process of filling positions in the Agency, the Audit Office, following its audit, for the year ended 31/12/2020.
The report presented by the Audit Office notes the observations and recommendations of both the Office itself and the private auditors who carried out audits as part of the preparation of the report.
The Audit Office's observations focus, inter alia, on the contract for the Agency's new banking system. It is stated that delays were observed in the progress of the implementation of the project and that recommendations were made to take corrective measures as soon as possible to address the observed delays and to consider claiming compensation from the Contractor.
It is further stated that up to 30.9.2020, the total payments made to the Contractor amounted to €3,634,432. The Audit Office recommended that before any project payments are made, the deliverables are reviewed and confirmed by an independent person, such as the Internal Auditor or the Director of Finance and Administrative Services.
It is noted that the additional requirements of the contract are not evaluated by the Agency's External Consultant before being presented to the Board of Directors for review and approval, which it was pointed out needs to be changed. In addition, the Audit Office recommended that monthly Progress Reports should be prepared and submitted to the Agency's Management/Board of Directors by the Contract Coordinator, presenting a comprehensive picture of the status of the project and including important information regarding the project budget, payment analysis and expected costs until completion.
With regard to the investigation of a complaint, concerning the involvement of an Agency official in the procedure for filling a senior position in the Agency, while he was himself a candidate for the position, the Audit Office pointed out to the Agency that the procedure was suffering and recommended advice from its legal advisers for guidance on further handling of the filling of the position.
The Agency also investigated a complaint regarding the suitability of the candidate selected to fill the position of Director General at the Agency and the recommendation of the Committee that evaluated him. The report states that it informed the Governor of the Central Bank of Cyprus, as the competent authority for assessing the competence and suitability of persons holding key positions in Licensed Credit Institutions, drawing his attention to negative references to this candidate in the Report of the Investigation Committee into the collapse of the Cyprus Cooperative Credit System.
With regard to the comments from private auditors, the Audit Service's report states that they recommended that the Agency should carry out the necessary checks and reviews to open accounts and document their performance, strengthen the monitoring of loans, as well as record and approve all required policies and procedures regarding loan modifications.
Source: CNA
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