KOTA KINABALU: Thirteen of the 29 ministries, departments and agencies under the Sabah state government audited in 2018 attained excellent financial performance, according to the Auditor General’s Report 2018 Series 1.
The report released today said three more ministries, departments and agencies in the state were graded good, 10 achieved a satisfactory level while one was rated unsatisfactory.
A risk-based financial management audit (accountability index) is conducted every year on three ministries and 16 departments in Sabah, while six state statutory bodies and four local authorities undergo an audit cycle, said the report.
However, the report said several ministries, departments and agencies need to improve internal controls in financial management to prevent a recurrence of the issues raised as well as reduce more serious compliance risks.
The Auditor General urged the relevant departments and agencies to take the following necessary measures:
– Enhancing the knowledge and skills of officers involved in financial management via continuous appropriate training and periodically assessing their skills and capabilities
– Taking corrective and preventive action on the issues raised by the National Audit Department and Internal Audit Unit
– Department heads to take appropriate action on an officer confirmed to have been involved in serious compliance issues that have resulted in a loss to the government and affected its image
– Building a work culture based on best practices in order to maintain excellent financial management performance, using as reference the second edition of the booklet Excellent Financial Management from the Perspective of the National Audit Department
– Conducting closer supervision on subordinate officers involved in financial management to ensure compliance with government regulations and more hands-on involvement
– Implementing task rotation every five years for officers given financial responsibilities especially in receipt management, acquisition and expenditure to reduce serious risks of non-compliance. – Bernama