Govt agencies urged to present financial statements in specified period

KUALA LUMPUR: The Auditor-General's Report 2016 Series 2 (AG Report) has proposed that the Federal Statutory Bodies, Federal Funds, Trust Accounts and other agencies ensure that their Financial Statements are presented according to the stipulated period with complete supporting documents.
According to the AG Report, a total of 126 financial statements were given Audit Certificate Without Reprimand, 12 were given Audit Report with Emphasis of Matters and four were given Audit Certificate With Reprimand.
The report issued by the National Audit Department also said one financial statement was accorded Opposing opinion and two statements were not yet certified as of Sept 15, 2017, due to late submission and incomplete supporting documents.
The report also proposed that the Federal Statutory Bodies, Federal Funds, Trust Accounts and other agencies ensured the preparation of the financial statements were in line with the enforced Accounting Standards.
For 2016, the report disclosed that some 78 agencies were still adopting the Malaysian Private Entities Reporting Standards (MPERS), 22 agencies used the Malaysian Financial Reporting Standards (MFRS)/Financial Reporting Standards (FRS) and 45 agencies had adopted the Malaysian Public Sector Accounting Standards (MPSAS).
"Federal Statutory Bodies, Federal Funds, Trust Accounts and other agencies with weak performance must take proactive actions in improving income on their own and reduce the dependency on the government," it said.
In 2016, the report said the income of 126 Federal Statutory Bodies under 23 ministries increased 6.9 per cent to RM109.232 billion compared with RM102.169 billion in 2015.
"The income of nine Federal Funds and Trust Accounts amounted to RM1.153 billion, down RM839 million or 42.1%, compared with RM1.992 billion in 2015," it added.
The AG Report also recommended that the Federal Statutory Bodies, Federal Funds, Trust Accounts and other agencies monitor the management and utilisation of grants to ensure they were used for their specified objectives.
The ministries must also ensure that the creation of new agencies must comply with the Statutory Bodies (Account and Annual Reports Act 1980 (Act 240) in relation to the preparation and presentation of the Annual Financial Statement for auditing by the Auditor-General without delay. — Bernama