Over 70% of Sabah ministries, departments and agencies get five-star rating – AG
KOTA KINABALU: More than 70 per cent of the Sabah State ministries, departments and agencies audited in 2015 and 2016 have achieved five-star rating under the accountability index of the National Audit Department.
Auditor-General of Malaysia, Tan Sri Dr Madinah binti Mohamad said Sabah had performed very well in financial management and shown encouraging improvements.
She said 35 State ministries, departments and agencies were audited in 2015, 25 of which were rated five stars or at ‘Excellent’ level.One agency was at ‘Good’ level with four stars; eight ministries, departments and agencies at ‘Satisfactory’ level with three stars; and one department at ‘Less Satisfactory’ level with two stars.
Last year, Madinah said 31 Sabah ministries, departments and agencies were audited.
Of the number, 22 ministries, departments and agencies attained five-star rating; six ministries, departments and agencies obtained four stars; three departments and agencies attained three stars; and none was rated two stars.
“I am pleased to see the improvement in financial management for the Sabah State ministries, departments and agencies in 2015 and 2016, whereby more than 20 ministries, departments and agencies audited, or over 70 per cent of them achieved the fivestar rating.
“Based on the records, this excellent performance has been maintained since 2013 to 2016.”
Madinah said this at the presentation ceremony of excellent financial management award to State ministries, departments and agencies based on the National Audit Department’s accountability index for the year 2015 and 2016 here yesterday. The event was graced by Chief Minister Tan Sri Musa Haji Aman.
Her speech was delivered by the Deputy Auditor-General, Haji Khalid Khan bin Abdullah Khan. She said eight ministries, departments and agencies had maintained their five-star rating in 2015, whereas 16 ministries, departments and agencies had successfully secured their five-star rating in 2016 from the previous year.
Additionally, Madinah said the Sabah Public Service Commission, Ministry of Youth and Sports, Tenom District Council and Kota Belud District Council had shown significant improvement as they had managed to jump from three stars to five stars this year.
On another note, she said the National Audit Department was in the process of improving the financial management audit method based on accountability index so as to reflect a more accurate performance in all ministries, departments and agencies. She said the financial management audit that would be carried out was going to be based on risk-based auditing concept.
“This means that each audit criteria will be set against low, medium or high risk.”
For instance, she said the auditor would focus on high-risk criteria such as devolution of power.
“Non-compliance of high-risk criteria will lead to a more significant impact on the accountability index score.”
Madinah hoped that the improvement on risk element in financial management would provide a more fair and accurate picture on the financial management accountability compliance level of ministries, departments and agencies.
“I am confident that this new version will be implemented in the Auditor-General’s Report in 2017.”
Earlier, Madinah said the accountability index was originally based on one to four stars but the department had amended the rating system up to five stars in 2015.