AUDIT REPORT 1999

During the year 2000, the National Audit Office carried out Regularity, Value for Money and other audits concerning matters relating to financial year ended 31 December 1999. The findings of the NAO's Regularity audits are being included in this Report. Value for Money and other Special Audits are issued separately from this Report.

Part 1 (Audit Opinion) of the Report comprises the overall Audit Opinion on the financial 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 that were carried out during 2000 and outlines the more serious shortcomings and observations detected by the National Audit Office.

Part 2 (Executive Summary of Findings) highlights the main issues contained in the Report to help users identify the main areas of audit concern.

Part 3 (Financial Report) contains a synopsis and examination of the 1999 Government Financial Report. Audit comments are submitted on the Consolidated Fund, Loans made by Government, Investments, Public Debt, Advances and Letters of Comfort/Bank Guarantees.

Part 4 (Corporate Issues) identifies items of a common nature throughout government Ministries and Departments. These include issues relating to:

· Arrears of Revenue due to Government

· Period Contracts

· Outstanding Advances in respect of Travel Overseas

· Transport Expenditure

· Hospitality Expenses

· Telephone Lines with overseas dialing facility

· Benchmarks and Performance Indicators

Part 5 (Departmental Issues) provides findings of a material nature uncovered during audits in specific Ministries and Departments. These include issues relating to:

· Lack of Bank Reconciliation of the Public Account by Treasury

· Government Payroll errors

· Overpayments in Treasury Pensions

· Lack of audit trail in bank interest withholding tax, duty on credit cards and duty on insurance policies

· Local Councils shortcomings

· Irregularities in revenue accounts of the Law Courts

· Excessive cash kept at museums and other heritage sites

· Expenditure relating to financing of cultural activities at Department of Culture exceeding that allocated by Parliament

· Audits of financial statements of seven projects sponsored through grants by the United Nations Development Programme

· Weaknesses in accounting and other procedures at the Ministry for Transport and Communications

Part 6 (Work and Activities of the NAO) outlines the role and duties of the Auditor General and reports upon the work and activities of the National Audit Office during the year 2000.