Audit Report 1998

During 1999, the National Audit Office (NAO) carried out Regularity, Value for Moneyand other audits concerning matters relating mainly to the financial year ended 31 December 1998. The findings of the NAO's audits are being included in the 1998 Audit Report. This Report has focused on value for money audits as well as audits which identify issues of a common concern throughout Government.

Part I (Audit Opinion) of the Report comprises the overall Audit Certification on the statements of the Ministries and Departments of the Government of Malta and on the consolidated Government Financial Report. It provides an opinion on the audits and examinations carried out during 1999 and outlines the most serious qualifications discovered by NAO.

Part II (Executive Summary of Main Findings) provides a brief outline of the main findings contained in the Report. This new chapter is intended to render the Report more user friendly and to help users focus on the main issues.

Part III (Corporate Issues) identifies corporate issues of common concern throughout central government Ministries and Departments. These include inter alia:

• Lack of adherence to inventory control regulations
• Non-submission of Fiscal Receipts to Government Departments
• Arrears of revenue due to Government
• Lack of accountability on travel advances made to officers travelling abroad.

Part IV (Departmental Issues) shows findings of a material nature uncovered primarily during audits in specific Ministries and Departments. These include inter alia:

• Bank Reconciliation exercise not fully carried out by Treasury on Government's own Public Account
• Unpaid Court Fines
• Shortcomings relating to the upkeep of accounts and financial management by Local Councils
• Problems connected with the transfer of assets from the Civil Aviation Department to MIA plc.
• Excessive and non-authorised consultancy fees for the supervision of the Government Pharmaceutical computer system of the SLH Medical Stores
• Longstanding revenue arreas in connection with the Self-employed Scheme of the Labour Office.

Part V (Analysis of the Financial Report - 1998) provides findings resulting from an examination of the 1998 Government Financial Report. Audit comments and views are submitted on the Consolidated Fund, Loans made by Government, Investments, the Public Debt, Advances and the Statement of Amounts and Stores written off. Also included in this chapter are comments concerning Letters of Comfort/Bank Guarantees.

Part VI (Value for Money Audits and other Reports) includes reports on the following subjects:

• An analysis of income tax arrears of revenue of the Inland Revenue Department
• A review of the Investigation/Research Section of the Inland Revenue Department
• A preliminary survey on the waste management strategy of the Waste Management Strategy Implementation Department
• A review of the Republic Street paving project carried out by the Valletta Rehabilitation Committee
• A consolidated report on good management practices by Local Councils in relation to the resurfacing and maintenance of roads.

This chapter also refers to investigations being carried out by the Office on behalf of the Public Accounts Committee.

Part VII (Work and Activities of the NAO) explains the role, functions and activities of the NAO.