LKAN 2019 Series 1: 15 performance audits of RM15.71 billion in 12 ministries

Auditor-General Datuk Nik Azman Nik Abdul Majid, in a statement, said the report was tabled in the Dewan Rakyat today using the 'card drive' method and QR Code,.

Generally, all federal government programmes, activities and projects are implemented according to the set objectives, he said.

However, he said, there are still weaknesses, such as the target 'output' and 'outcome' that cannot be achieved or cannot be evaluated.

To enable remedial and improvement actions by the head of the departments concerned, he said, the National Audit Department (NAD) submitted 62 recommendations on the activities of the ministries, federal departments and statutory bodies.

Nik Azman said compliance audit of federal agencies was introduced as a new approach in line with International Standards of Supreme Audit Institutions (ISSAI) 4000 and 4100, where a total of 16 audits were carried out on 16 federal agencies, including nine programmes and projects, four procurements, two contracts and one loans.

The audit is to assess whether Government activities / projects / programmes have been implemented prudently, efficiently and effectively, as well as the extent of the objectives that these activities / projects / programmes has been achieved.

It also aims to assess the extent where public money has been spent prudently, efficiently and effectively without waste and get the best value for money, he added.

The audit found issues of non-compliance of RM336.12 million in the amount to be recovered by five federal agencies (RM70.19 million), a federal agency (RM21.78 million) and 13 federal agencies where there were leakage or loss, worth RM244.15 million, he said, adding that 48 recommendations were submitted to the federal agencies for consideration.

On the Financial Statements and Federal Agency Compliance Auditing in 2019, NAD had to audit the financial statements of 148 federal agencies for the Financial Year 2019.

However, as of Sept 30, 2020, the financial statements of 69 of them had been audited, 77 still in the audit process, while two agencies had yet to submit theirs, he said.

On programmes, activities and projects of ministries, departments and agencies at the state level, a total of 16 performance audits were conducted at three ministries in Sabah and Sarawak, including 22 state government departments and agencies.

He said 123 recommendations were submitted to improve the activities carried out by the ministries, departments and state agencies concerned.

“All officers and the relevant department heads have been informed of the matters reported in LKAN for verification purposes.

“Exit Conference was also held to discuss the audit findings and get explanation and feedback,” he added.

The Auditor-General’s Report 2019 Series 1 on the activities of ministries, federal government departments and federal bodies, as well as on Financial Statements and Auditing of Federal Agency Compliance 2019 will be uploaded on the NAD's website, http://www.audit.gov.my, after the tabling at the Dewan Rakyat.

At the state level, it can only be uploaded on to the NAD’s website after it is tabled at their respective State Assembly sittings.