Contract Management
Contract Cession & Assignment Tracking
Monitors contracts ceded or assigned to third parties without proper SCM approval.
Why cession needs approval
A contract is awarded to a specific vendor on the strength of that vendor's evaluated capacity, so ceding or assigning it to a third party without SCM approval circumvents the competitive process entirely and breaches the contract and the SCM policy. The AGSA treats unapproved cession as a way of delivering work to an unevaluated party, which can render the spend irregular. AuditPro Core monitors payment and delivery against the contracting party so cessions that bypass approval are detected rather than discovered after the fact.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Cessions Recorded
38
this year
Without Approval
11
29%
Value Ceded
R 56.3m
▲ R 14m
To Related Parties
4
Cession Requests by Quarter
Unapproved Cessions
| Contract | Cedent | Cessionary | Value (R'000) |
|---|---|---|---|
| C-9012 | Contractor F | Party X | 18400 |
| C-9034 | Contractor K | Party Y | 12100 |
| C-9051 | Contractor B | Party Z | 8700 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Cession versus assignment
Cession transfers the right to receive payment while assignment transfers the obligation to perform. Either can move the real beneficiary away from the evaluated vendor and both require formal SCM consent.
Why it circumvents competition
The third party that ends up performing or being paid was never evaluated or competed. The state ends up contracting, in substance, with a party it never selected.
Payment-redirection signals
A change in banking details, a new performing entity on delivery notes, or invoices in a different name are practical signs that a cession has occurred, approved or not.
Documenting consent
Where cession is legitimately approved, the approval, amended contract and updated vendor record must align. A mismatch between who is paid and who is contracted is the finding.
How AuditPro Core Bridges the Gap
- Party reconciliation: compares the paid and performing party against the contracted vendor to detect substitution.
- Exception workflow: unapproved cessions are flagged and escalated before further payment.
- Traceability to source: links banking-detail changes and invoices to the original contract and any approval.
- Audit-ready export: produces a cession register evidencing consent for every transferred contract.
Key Takeaways
- Cession moves payment; assignment moves performance; both need consent.
- An unapproved cession delivers work to an unevaluated party.
- Banking-detail and performer changes are the practical red flags.
- Who is paid must match who is contracted, or it is a finding.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.