The National Audit Off ice (NAO) said today that a survey it had carried out showed that the Foundation for Tomorrow’s Schools (FTS) often displayed poor awareness of market rates, with several instances of significantly higher FTS estimates of project costs than the actual bids received.

“A number of shortcomings were identified, with audit concern centring upon instances of significantly higher FTS estimates compared to the tender bids received, considerable changes in the scope of planned works, substantial extras and variations, and notable delays in the completion of works.” NAO said.

The audit office said said it had studied procurement by the foundation in 2012 and 2013, focusing on a sample of 22 projects which represented a total contract value of €1.4 million. In five cases the foundation’s cost estimate was significantly higher than the bids received. In another case, the foundation’s estimate was considerably lower than the bids.

“In NAO’s understanding, this is indicative of poor awareness of market rates, which in turn poses a risk to the foundation’s ability to safeguard and ensure value for money in executing its procurement function,” the audit office said.

The audit office said delays were experienced with respect to a considerable number of projects, sometimes due to poor planning and project management. On the other hand, NAO noted that delays caused by the various contractors were never followed up by the imposition of delay charges and penalties as contemplated in the contract.

The report may be accessed through the NAO website - www.nao.gov.mt

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