The agency said its transition to an enhanced financial application system in late 2022, based on the standard accounting system for federal agencies, resulted in the audit being unable to verify its reported cash and bank balance of RM754,592 as at Dec 31, 2024.

“(This was) due to system-generated unreconciled disbursements of RM13.56 million and unreconciled receipts of RM12.88 million originating from the migration period,” it said in a statement today.

Suhakam said the variance occurred when the auditor-general matched its bank account statements against reconciliation reports generated by the new system.

“As reflected in the audit’s findings, certain transactions exceeded the stipulated reconciliation period. These transactions relate to journal entries from the transition process, accumulated journal adjustments and accumulated payment cancellations undertaken since 2022.

“However, the underlying cash and bank balances remain intact. The variance did not affect Suhakam’s overall financial position or the integrity of its reported assets,” it said.

Suhakam and several other federal agencies were flagged in the 2026 Auditor-General’s Report Series 1 for financial misstatements and irregular transactions.

The report, tabled in the Dewan Rakyat, covered financial statements for 2024 and the activities of federal ministries, departments and statutory bodies, as well as state ministries, departments, agencies and state-owned companies.

Suhakam said the discrepancy was being progressively resolved and would be fully addressed in its 2025 financial statements.

“Suhakam will continue to cooperate fully with the relevant authorities to uphold the highest standards of public financial management,” it said.