SCM Award File Audit Checklist

Shows the purchase came from a real, approved need (demand management).

Evidence to have on file

Approved requisition or needs memo from the user department.

Reference

MSCM Reg 10

Specifications must be unbiased and approved before the bid is published.

Evidence to have on file

BSC minutes and the specification approved by the accounting officer before the advert.

Reference

MSCM Reg 27(1), 27(2)(g)

Spending outside an approved budget is unauthorised expenditure.

Evidence to have on file

Budget confirmation naming the vote or project and the funds available, dated before the advert.

Reference

MFMA s15; MSCM Reg 11(1)(b)

Undeclared interests of officials are a recurring audit finding on conflicts of interest.

Evidence to have on file

Signed declarations and attendance registers for every BSC, BEC and BAC sitting.

Reference

MSCM Reg 46(2)(e)–(f), 27(4), 29(4)

Bids must stay open at least 14 days, or 30 days over R10 million or long-term, unless a shorter period was justified.

Applies to competitive bids and quotations above the threshold, not small quotations or Reg 36 deviations.

Evidence to have on file

Advert copies (eTender portal, website, newspaper) with dates, and approval of any shorter period.

Reference

MSCM Reg 22(1)(b)(i), 22(2); MFMA Circular 83

Proves who bid and that no bid was added or lost after closing.

Applies to competitive bids and quotations above the threshold, not small quotations or Reg 36 deviations.

Evidence to have on file

Register of every bid received in time, opened in public, signed and published.

Reference

MSCM Reg 23

The CSD is how suppliers are verified; awards to people in the service of the state are tested against it.

Evidence to have on file

CSD report for the recommended bidder dated before the award (directors, in-service-of-state, restriction status).

Reference

MFMA Circular 81; MSCM Reg 38(1)(c), 44

No award above R15 000 may go to a person whose tax matters are not in order.

Evidence to have on file

CSD or SARS eFiling tax compliance printout at the date of the award.

Reference

MSCM Reg 43; MFMA Circular 90

Bidders must declare links to people in the service of the state; a false declaration is a fraud indicator.

Evidence to have on file

Signed MBD 4 from the recommended bidder.

Reference

MSCM Reg 13(c), 21(c), 44; MBD 4

A preference point system applied wrongly is one of the most common procurement findings.

Evidence to have on file

Signed MBD 6.1 matching the points used in the evaluation.

Reference

PPR 2022 reg 3; MBD 6.1

Bids must be rejected for past abuse, fraud or listing as a tender defaulter.

Evidence to have on file

Signed MBD 8 from the recommended bidder.

Reference

MSCM Reg 38(1)(d)(ii), 38(1)(g); MBD 8

Guards against bid rigging between bidders.

Evidence to have on file

Signed MBD 9 from the recommended bidder.

Reference

MSCM Reg 38(1); MBD 9

Preference points claimed without the proof the tender asked for cannot be awarded.

Evidence to have on file

B-BBEE certificate or sworn affidavit, or the proof the tender asked for each specific goal.

Reference

PPR 2022 reg 3(b)

Construction works may not be awarded to an unregistered or under-graded contractor.

Applies only to construction works (CIDB).

Evidence to have on file

CIDB register printout showing the required grade and class at the date of the award.

Reference

CID Regulations reg 25

Bids must be rejected when rates and service charges are more than three months in arrears.

Evidence to have on file

Rates and services statement or declaration for the bidder and its directors.

Reference

MSCM Reg 28(1)(c), 38(1)(d)(i)

An evaluation that departs from the published criteria is an unfair process.

Applies to every route except a Reg 36 deviation.

Evidence to have on file

Signed BEC report with scores against the criteria published in the bid.

Reference

MSCM Reg 28

The BAC must consider the evaluation report and decide within its delegation.

Evidence to have on file

Signed BAC minutes considering the BEC report, with members present and the decision.

Reference

MSCM Reg 29

Above set values only the accounting officer or a properly sub-delegated official may make the final award.

Evidence to have on file

Award approval signed by the right person for the value, with the delegation in force on that date.

Reference

MSCM Reg 5(2), 29(1)(b)

Shows the award was communicated only after it was approved.

Evidence to have on file

Letter of award to the successful bidder, dated after the approval.

Reference

MSCM Reg 29; MFMA s116

Contracts must be in writing, with terms for termination and disputes.

Evidence to have on file

Contract or service level agreement signed by both parties before work starts.

Reference

MFMA s116(1)

Bidders must be able to object within 14 days of the decision.

Applies to every route except a Reg 36 deviation.

Evidence to have on file

Letters to unsuccessful bidders with reasons and their right to object within 14 days.

Reference

MSCM Reg 49

Awards, including deviations, must be made public.

Evidence to have on file

eTender portal and website notice of the award, within 7 working days.

Reference

MFMA Circular 83; MSCM Reg 23(c)(iii)

Deviations are allowed only on the listed grounds, such as an emergency or a single provider.

Applies only to a Reg 36 deviation.

Evidence to have on file

Deviation memo naming the Reg 36 ground, with the accounting officer’s approval.

Reference

MSCM Reg 36(1)–(2)

The reasons must go to the next council meeting and into the financial statements.

Applies only to a Reg 36 deviation.

Evidence to have on file

Council agenda or minutes listing the deviation, and the note in the annual financial statements.

Reference

MSCM Reg 36(2)