NAO Annual Report and Financial Statements – 2022

The Auditor General, Mr Charles Deguara, presented the report highlighted in captionto the Hon. Speaker of the House of Representatives, Dr Anglu Farrugia.

The Report gives an overview of the National Audit Office’s (NAO) activities, accomplishments, and financial performance during the year. It highlights notable events, initiatives, and collaborations undertaken by the Office.

In the Foreword, the Auditor General essentially reflects on the commemorations held throughout the year to mark the NAO’s 25th anniversary since its setting up. These included the launch of the book titled “State Audit in Times of Transition – Reflections on Change and Continuity, Challenge and Opportunity from Malta and Beyond”. Incidentally, he concludes his Foreword with a reference to the warm message of heartfelt appreciation from HE the President, Dr George Vella, to all the staff at the National Audit Office during the launching of this book.

The Deputy Auditor General discusses the NAO’s strategic initiatives, such as the NAO’s Performance Measurement Framework, the Risk Assessment Framework, the adoption of the International Organisation of Supreme Audit Institutions (INTOSAI) Professional Auditor Competency Framework, and the effective use of the St0ry INTOSAI International Development Initiative (IDI) Strategic Management Platform. These initiatives aim to enhance the Office’s performance and effectiveness.

The Report includes an article by Mr Leo Brincat, a former Maltese member of the European Court of Auditors, highlighting the strategic cooperation between the European Court of Auditors and the NAO. Both institutions share a common interest in improving the auditing of European Union funds and promoting good governance for EU citizens.

Part One of the Report provides an overview of the external environment in which the NAO operates, focusing on public finances and the financial management reform. It describes the various audit and administrative sections of the Office, as well as its governance structure. It also covers the NAO’s 25th anniversary celebrations and the Office’s participation in local and international activities.

Part Two presents the NAO’s business model, which explains how the Office transforms inputs into outputs and outcomes that create value over time. It discusses the NAO’s strategic and respective outcomes. The section ends with the NAO’s outlook for the future and how the Office plans to enhance its operations further.

Part Three includes the audited Financial Statements of the NAO, providing an overview of its financial performance and position.