NAO Annual Report and Financial Statements – 2024

The Auditor General, Mr Charles Deguara, presented the Report highlighted in caption to the Hon. Speaker of the House of Representatives, Dr Anġlu Farrugia.

This comprehensive and informative Report provides an overview of the National Audit Office’s (NAO) activities, achievements and financial performance over the year. It also highlights key events, strategic initiatives and collaborative efforts undertaken by the Office.

In the Foreword, the Auditor General reflects on the key developments and accomplishments at the Office during his tenure first as Deputy Auditor General, and since 2016, as the Auditor General. These mainly include:

1. the  publication of high-quality audit reports, containing feasible and workable recommendations that address issues and shortcomings identified during the Office’s audits;

• the review in a focused and transparent manner of NAO’s internal processes and methodologies to ensure more efficient, effective operations in line with international auditing standards and auditing best practices;

• the hosting of several international events, organised primarily under the auspices of the International Organisation of Supreme Audit Institutions and the European Organisation of Supreme Audit Institutions; and

• the strengthening of collaboration with other Supreme Audit Institutions through staff exchange initiatives.

The Office also organised the annual joint seminar with the European Court of Auditors and participated in numerous international engagements. The Auditor General concluded his foreword by expressing his appreciation to successive Presidents of Malta, Prime Ministers, Speakers of the House of Representatives, Members, Clerks and staff of the House of Representatives, Chairs and Members of the Public Accounts Committee, and successive Governments for their continued support and respect for the Office’s independence. He also conveyed his gratitude to the NAO staff for their professionalism and dedication.

On his part, the Deputy Auditor General, Mr Noel Camilleri, reflects on a decade of transformation at the NAO, highlighting the institution’s evolution from a traditional oversight body into a dynamic, forward-looking agent of change. He underscores the importance of balancing tradition with innovation, maintaining independence and integrity while modernising audit practices to meet rising public expectations. Central to this progress has been the unwavering commitment of NAO staff, strategic planning and investment in capacity building. Mr Camilleri outlines ongoing reforms, including updates to audit methodologies, the establishment of new audit streams and a focus on technology and data-driven auditing. Emphasising transparency and public engagement, he also points to the imminent launch of a new Code of Ethics to strengthen internal culture and accountability. Looking ahead, he expresses confidence in the NAO’s continued growth, driven by collaboration, resilience and a shared vision for better governance.

In his contribution, the External Consultant, Mr Hilary Galea-Lauri, outlines the NAO’s strategic transformation towards audit excellence, driven by the urgent need for enhanced transparency, accountability and governance in a resource-constrained national context. Emphasising the pivotal role of audit quality to foster and maintain public trust in the Office, he highlights the NAO’s adoption of advanced technologies such as data analytics and artificial intelligence, the expansion of audit types – including compliance, performance, financial, information technology and investigative audits – and the Office’s efforts to embed structured financial auditing as a core function. This transformation is underpinned by significant investment in staff training, strategic external recruitment and international collaboration, ensuring the NAO is equipped to meet rising expectations and global standards. Ultimately, this comprehensive reform, positions the NAO as a quality supreme audit institution, leading by example in promoting effective, evidence-based public oversight and contributing to good governance in the public sector.

Part One of the Report presents an overview of the external environment in which the NAO operated, with particular emphasis on public finances. It also details the Office’s governance framework and summarises the outcomes and activities of its various audit and administrative sections for the year under review. Furthermore, this part provides an in-depth account of the NAO’s professional engagement with both local and international stakeholders, while ensuring the continued safeguarding of its independence.

Part Two outlines the NAO’s business model, illustrating how the Office’s processes convert inputs into outputs and outcomes that generate long-term value. It also provides a detailed account of the initial implementation of the NAO’s Strategic Plan 2024-2028, including the communication of the core strategic objectives for the period and the establishment of the initial group of dedicated strategy action teams, set up in 2024, to carry out these objectives.

Part Three includes the audited Financial Statements of the NAO, providing an overview of its financial performance, position and cash flows for the year under review.

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