AG’s Report 2015: An Excellent Financial Performance By Govt Agencies

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KUALA LUMPUR- The Auditor-General’s Report 2015 Series 1 tabled in Dewan Rakyat Wednesday showed excellent financial management performance by government agencies compared to the previous year.

Auditor-General Tan Sri Ambrin Buang said 180 ministries, departments and federal government agencies received Excellent (5-star) ratings compared to only 114 in 2014.

“This significant achievement has indicated that the implementation of the Accountability Index has prompted Controlling Officers to do the necessary improvements on financial management,” he said in a statement released here, today.

He said the report was released earlier than usual this time around (before Prime Minister Datuk Seri Najib Tun Razak who is also the Finance Minister tabled the Budget 2017) as the National Audit Department had received the cooperation of the Department of National Accountant Malaysia.

“The Federal Government Financial Statements as a whole gives the impression of a true and fair financial standing of the Federal Government, as well as its operations and cash flow for the year ended December 31, 2015.

“Its accounting records have been properly maintained and updated,” he said.

The Auditor-General’s Report on the Federal Government, Federal Statutory Bodies and the State governments’ activities in 2015 are tabled in a series, twice this year.

The Series 1 report was tabled in Parliament today after receiving the consent from Yang di-Pertuan Agong, Tuanku Abdul Halim Mu’adzam Shah.

Every year, the National Audit Department conducts performance audits aimed at assessing the extent of the government’s activities and whether its projects were planned, implemented and monitored effectively and efficiently. It was also aimed to see the extent of which the main objectives of the programmes, activities and projects are achieved.

Ambrin said the audit was also conducted to assess the extent of public money spent, whether the expenditures were made prudently without extravagance and wastage, and whether it had benefits.

Overall, the Federal Government revenues saw a decline of RM1.537 billion (0.7 per cent) as compared to the previous year. The Income Tax revenue showed an increase of RM1.899 billion (7.8 per cent) and revenue from the Goods and Services Tax (GST) achieved its target at RM27 billion.

However, the reduction of the Petroleum Revenue Tax of RM15.397 billion, Corporate Revenue Tax (RM1.560 billion) and Petroleum Royalty (RM1.389 billion) had contributed to a decline in the Federal Government’s revenue in 2015.

“The fall in global crude oil prices had a significant impact on the revenue. The collection of sales and services tax dropped after it was replaced by GST.

“In 2015, collection from Local GST was recorded at RM14.040 billion and Imports GST at RM12.973 billion, thus total collection of GST in 2015 was RM27.013 billion,” he said.

He said in the Series 1 report, a total of 70 performance audits and 18 Government Companies’ management audits were implemented at the Federal and State levels and the scope of audit covered construction, maintenance, acquisition, management, revenue and company management.

Ambrin said previously, the Heads of Departments concerned were informed in advance of what to report in the Auditor-General’s Report for verification purposes.

“In order to facilitate corrective actions and improvements by the relevant Department Heads, the National Audit Department has submitted 78 recommendations to the Federal Government, Federal Statutory Bodies (43) and the State (181) to improve their weaknesses.

In addition, the Finance Ministry has also issued a Feedback Report on the Auditor-General’s Report 2015. It contains latest reviews and actions by the Secretary-General and Heads of Departments on the issues raised by the Auditor-General in the report.

The content of the Series 1 and 2 of the Auditor-General’s Report 2015 and its synopsis is available on the National Audit Department website at http://www.audit.gov.my as of today. All enquiries or suggestions on the report may be directed through ‘Message to Auditor General’.

— BERNAMA