Report by the Auditor General on the Public Accounts for the year 2019

Today, the Auditor General Charles Deguara, presented to the Hon. Speaker of the House of Representatives, Dr Anglu Farrugia, the Annual Audit Report on the Public Accounts for 2019.  It comprises 38 reports on the operations of several Government departments and entities.  This Report also includes an analysis of the Financial Report 2019, as well as an overview of the Statements of Arrears of Revenue, as submitted to Treasury by the respective departments and entities.

The National Audit Office has judiciously analysed the level of compliance of various expenditure and revenue items with prevailing rules and regulations. The Report gives over 300 relevant recommendations which, if implemented by the respective Government department or entity, will address the shortcomings identified during these reviews and thus promote good governance and best practice in Government operations.   

Some of the key findings identified were the following:

• Procurement regulations were often bypassed by the Foundation for Tomorrow’s Schools.  In the case of the Agency for the Welfare of Asylum Seekers, procurement issues were also accompanied by a lack of source documentation.
• Monitoring and control on overtime at St Vincent de Paul Residence was weak, leading to potential abuse. Lack of internal controls on the number of hours worked by lecturing staff at the Malta College of Art, Science and Technology was also identified during an audit of personal emoluments.
• Weaknesses in internal control procedures were identified at Mount Carmel Hospital and Trade Malta Limited. Controls related to cash management at the Planning Authority were also deficient. A lack of ownership over the Malta National Shooting Range project also led to compromised internal controls.
• Insufficient enforcement procedures were noted in respect of the collection of revenue from Duty on Documents and Class Two Social Security Contributions. On the other hand, delays in the processing of information was the main cause for overpayments of pension to individuals benefitting from Residential Services in Gozo.
• An audit at the Local Enforcement System Agency revealed limited control over the collection of pending fines.