Review by the Auditor General on Fixed Assets and Stocks

The Auditor General, Mr Charles Deguara today presented the Report titled a ‘Review by the Auditor General on Fixed Assets and Stocks’ to the Hon. Speaker of the House of Representatives, Dr Anglu Farrugia.

In recent years, the National Audit Office conducted a series of audits to assess the level of readiness of Ministries regarding the ongoing change to accrual accounting. This Report consolidates reviews on fixed assets and stocks within various Ministries. These focused on the efficient management and stewardship of public assets, emphasising the importance of proper accounting in ensuring compliance with accounting standards and regulations.

Salient findings presented in this Report were the absence of official procedures for establishing who will be accounting for Government-owned land and buildings, as well as inaccuracies in the records of fixed assets, missing supporting documentation, and problems with asset classification and recognition. It also notes widespread problems with the accuracy of stock records, physical controls, as well as adherence to regulations for annual stocktaking. These findings reveal significant challenges in asset and stock management.

The Ministry for Finance and Employment is committed to efficient management of all Government finances and assets. It is transitioning to accrual accounting for the Government’s financial statements and, in recent years, it has replaced the old accounting system with the Corporate Financial Management Solution.