Inefficient financial handling costs govt $163.64m

INEFFICIENCY in government financial and asset management has resulted in a total loss of $163.64 million for the period of 2003-2008, according to findings from 346 audit reports submitted to the Audit Department.

The figure excludes statutory body accounts and government-owned companies.

Acting Deputy Auditor General Matali Hj Md Yusof revealed the findings at the internal audit briefing and workshop for Ministry of Religious Affairs officials yesterday.

"The amount is believed to be higher if the Audit Department were able to audit all the ministries and departments, including high commissions, embassies and consul general," he said.

Matali said these weaknesses in government financial and asset management can be classified into: profit embezzlement, expenditure embezzlement, non-systematic management of house rentals, unpaid claims, unreturned deposit ledger, unsystematic expenditure, unsystematic store management, unsystematic project management and unsystematic salary and allowance management.

The category with the highest loss, said Matali, is unsystematic store management, which amounts to $73,235,094.66.

The findings stress the need and importance for ministries and departments to establish their own internal audit unit to increase their accountability in managing their finance and assets, Matali said.

The briefing put forward guidelines on internal audit implementation prepared by the Audit Department to facilitate respective internal audit units in becoming more efficient and systematic.

Matali said, "The implementation of internal audit in respective ministries and departments under it can overcome the stated weaknesses and achieve a systematic, efficient and effective financial management."

He called for all the internal audit officers to cooperate with the Audit Department in submitting relevant documents to the department according to the specific schedule.

Any officer or staff who refuses to cooperate will be subject to disciplinary action, he added.

With ministries and departments having their own internal audit units, this will enable the Audit Department to focus its attention on more complex cases, he added.

Another issue raised yesterday was the outstanding revenue recorded until March 31, 2008, which amounted to $465,791,562.10.

According to Matali, the Prime Minister's Office presented the highest amount with an amount of $336,309.786.65. This huge amount of outstanding revenue, Matali said, is due to unpaid electricity bills.The Brunei Times