298 recommendations for public sector in 2017 A-G Report Series 2

Auditor-General Madinah Mohamad. (Bernama pic)

KUALA LUMPUR: The Auditor-General’s Report 2017 Series 2, tabled in Parliament today, contained 298 recommendations aimed at improving weaknesses in the public sector.

Auditor-General Madinah Mohamad said 83 of the recommendations were related to activities carried out by federal ministries, departments and statutory bodies; 42 were related to the management of federal government companies and agencies; and 173 were related to management activities by ministries, departments, agencies and the management of state government companies.

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

“At the state level, 25 performance audits and 13 management audits were carried out on government companies. The audit covered various fields including the management of programmes/activities, construction, procurement, systems/ICT, maintenance and revenue management,” she said in a statement to Bernama.

The report also included confirmation of 2017 financial statements of federal statutory bodies, federal consolidated funds, trust accounts and other agencies.

“The National Audit Department audited 148 financial statements for the 2017 financial year for federal statutory bodies, federal consolidated funds, trust accounts and other agencies,” she said.

Of the total, 110 financial statements were given Audit Certificate Without Reprimand and 17 were given Audit Certificate Without Reprimand with Emphasis of Matter. Six were given Audit Certificate with Reprimand, while two others were categorised as Conflicting and Disowning.

Another 13 agency financial statements have not been finalised. Of these, nine were because the chairman of the board had not been appointed and board meetings could not be convened to verify the audited financial statements, while four financial statements 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 departments achieved excellent levels, 10 were classified as good, five as satisfactory and two as unsatisfactory.

Audits carried out on the financial management performance of 14 state Royal Malaysian Customs Departments showed three departments achieved excellent levels, seven achieved good levels and four, satisfactory. The financial management performance of Universiti Teknologi Mara campuses in 13 states showed three achieved excellent levels; seven, good; two, satisfactory; and one, less satisfactory.

As of Nov 21, Madinah said, there were 325 financial statements to be audited. Those which have been verified involve 13 state governments, 151 state statutory bodies, 148 local authorities and 13 state Islamic religious councils (13).

Certification as of Nov 21 involved 13 state governments, 140 state statutory bodies, 138 local authorities and 12 state Islamic religious councils, bringing the total to 303.

“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, 35 were given Audit Certificate Without Reprimand with Emphasis of Matter, and 28 were given Audit Certificate With Reprimand.

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

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

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