State school transport service satisfies expectations – NAO report

The National Audit Office (NAO) has found that the government’s ‘State Schools’ Transport System’, is generally satisfying users’ expectations, however the NAO also noted that it “could not conclusively certify that the value for the funds invested in this service is being fully achieved.

The report, which was presented to the Speaker of the House by Auditor General Charles Deguara, presents the findings of an audit of the service which is supplied through five outsourcing agreements and managed by the Education Logistics and Support Unit within the Ministry for Education and Employment (MEDE).

The performance audit outlined in the report sought to assess whether contracts currently in place, and whether the MEDE’s monitoring function adequately safeguard the government’s interest, especially since the cost of the system is of approximately €6.1 million.

“[The NAO] noted that the manner by which the contract governing the school transportation service are written, projects a sense of excessive leniency towards the suppliers, leaving Government in a weak position when it comes to regulating the service and penalising low performance,” read the report.

The audit also found that the monthly reports compiled by schools, intended to present an account on the suppliers’ performance, were not always comprehensive in what they account for and as a result, left ELSU in the dark over the occurrence of certain incidents.

“This issue takes particular importance when one considers that these reports are the primary source of data upon which payments for the service in question and applicable penalties are calculated. NAO additionally observed instances in which documented evidence clearly identifying that routes have been performed, was lacking. Notably, this Office found discrepancies between what was included in the schools’ monthly performance reports, and the respective reported payments in the corresponding statements of account prepared by MEDE.”

The NAO acknowledged that this does not necessarily imply that paid trips have not been performed, however it does have a negative impact on the payment process’s completeness and transparency.  Moreover the audit office also noted that the way the Geographical Information Tracking System made available by suppliers operates, renders it cumbersome and therefore nearly impossible for the Ministry to use in a proactive manner.