The national audit office annual report on public accounts : a 1993-2001 analysis

Abstract

This study analyses the Annual Report on Public Accounts referred to as the Annual Audit Report, prepared by the Auditor General and his subordinates at the National Audit Office. The study covers a period of nine years, from 1993 to 2001. During the period under review Malta's state audit has been enhanced through constitutional amendments and legislation. The intent of this study is hence to analyse the impact of these amendments on the Annual Audit Report. It's key research objectives are to examine changes in content, format and presentation of the Report for the period under review, to identify the concerns of the Auditor and to examine the preparation and the follow up of the Report. The study is mostly based on "Armchair Research" with material being read and reflected on. Non-structured, in depth interviews, were also conducted with representatives from the National Audit Office. The study concludes that the Annual Audit Report has evolved into a professional Report, with significant modifications in content and format. It has changed form a "post-mortem" document to a current and future document, in that, while expressing a detached judgment about the reliability of financial statements, it also gives a clear picture of current position and provides recommendations for future activity. Timely presentation of the Report to Parliament has been addressed through legislative amendments to which the NAO adhered. The Report is now more rigorously scrutinized as a result of the establishment of the Public Accounts Committee. Despite all this, inefficiencies reported by the Auditor are pervasive and enforcement of audit findings is still taken lightly. The study recommends that: i. Reports on Financial Statements and Ministerial Portfolios be issued separately as the Annual Audit Report is becoming bulky; ii. audit findings be disseminated in other ways perhaps in brief leaflet form; iii. the Public Accounts Committee generates formal decisions on issues discussed and issues its own Report with recommendations and improvements establishing a time for auditees to report back on audit findings.