A-G Report 2017 Series 2 proposes 298 recommendations

By P PREM KUMAR / Pic By BERNAMA

The Auditor-General’s (A-G) Report 2017 Series 2 tabled in Parliament yesterday contained 298 recommendations aimed at improving weaknesses in the public sector.

A-G Tan Sri Madinah Mohamad (picture) said 83 of the recommendations are related to activities carried out by federal ministries, departments and statutory bodies; 42 are related to the management of federal government companies and agencies; and 173 are related to management activities by ministries, departments, agencies and management of state government companies.

She said 16 performance audits and eight government company management audits were carried out at the federal government level.

The report also included confirmation of 2017 financial statements of federal statutory bodies, Federal Consolidated Funds and Trust Accounts, and other agencies.

“The National Audit Department (NAD) audited 148 financial statements of 2017 on federal statutory bodies, Federal Consolidated Funds and Trust Accounts, and other agencies,” she said in a statement.

Of the total, 110 financial statements were given Audit Certificate Without Reprimand, 17 were given Audit Certificate Without Reprimand with Emphasis of Matter, Audit Certificate with Reprimand (six), Conflicting (one) and Disowning (one).

In addition, 13 agencies’ financial statements have not been finalised, of which nine are due to the fact that the chairman of the board has not been appointed and board meetings could not be convened to verify the audited financial statements, while four financial statements are delayed and could not be finalised due to system problems and management issues.

Madinah said based on the financial management performance report of 19 federal departments, two achieved excellent levels, good (10), satisfactory (five) and unsatisfactory (two).

The audit carried out on the financial management performance of 14 state Royal Malaysian Customs Departments showed three departments achieved excellent levels, good (seven) and satisfactory (four).

She also said the financial management performance of Universiti Teknologi Mara campuses in 13 states showed three achieved excellent levels, good (seven), satisfactory (two) and less satisfactory (one).

Madinah added that as at Nov 21, 2018, there were 325 financial statements to be audited and those which have been verified involved 13 state governments, state statutory bodies (151), local authorities (148) and State Islamic Religious Councils (13).

“Based on the audit of 303 financial statements of state governments and state government agencies in 2017, 240 financial statements were given Audit Certificate Without Reprimand, Audit Certificate Without Reprimand with Emphasis of Matter (35) and Audit Certificate With Reprimand (28).

“A total of 16 financial statements are still being audited due to delays in submission of the financial statements and supporting documents, while the remaining six financial statements have yet to be submitted to the auditors,” she said.

According to Madinah, the performance audits were conducted in accordance with international auditing standards, namely the ISSAI (International Standard of Supreme Audit Institutions) 3000, 3100 and 3200.

She said beginning with the 2017 Series 2 report, the NAD has improved the performance audit approach by emphasising on output and outcome evaluation, as well as effectiveness of service delivery and the level of satisfaction of target groups on the government programmes or projects.