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Annual Audit Report Annual Audit Report Public Accounts 2009 Contents Contents Pages Guide to using this Report 8 Executive Summary 9 Audit Opinion 13 Audit Report to the House of Representatives 14 Financial Report 15 Analysis of the Financial Report 2009 16 Corporate Issues 49 Arrears of Revenue 2009 50 Office of the Prime Minister 75 Department of Information – Expenditure 76 Local Councils 79 Tourism Department – Expenditure 123 Office of the Prime Minister – Inventory 133 Ministry of Foreign Affairs 137 Ministry of Foreign Affairs – Recurrent Expenditure 138 Control by the Ministry on the operations of Maltese Missions Abroad 147 Ministry for Gozo 159 Gozitan Students Accommodation Subsidy 160 Gozitan Students/Workers Subsidy Scheme 163 Housing Scheme Subsidy 167 Ministry for Infrastructure, Transport and Communications 169 EU Cohesion Fund 2007-2013 – Malta South Sewage Treatment Infrastructure Project 170 Motor Hearses Association 173 Ministry of Education, Culture, Youth and Sport 177 Public Broadcasting Services Ltd – Revenue from Malta Eurosong and Eurovision Song Contest 2009 178 Co-operatives Board – Financial Years 2006-2008 182 Ministry for Social Policy 187 Elderly and Community Care – Inventory 188 Department of Social Security – Information Technology Audit 193 2 National Audit Office - Malta Contents Ministry of Finance, the Economy and Investment 201 Malta Enterprise – Government Financial Aid 202 Treasury Division – Information Technology Audit: Public Account Bank Reconciliation System 205 Inland Revenue Division – Arrears of Revenue for the year 2008 and Analysis of Exemption Order Scheme: Reduction in Addition Tax and Interests 221 VAT Division – Arrears of Revenue 2009 228 Programmes and Initiatives – Food Subsidies 231 Consumer and Competion Division – Expenditure 237 Fully-Expensed Cars within the Public Service for the year 2008 242 Ministry for Justice and Home Affairs 253 Correctional Services – Personnel Emoluments 254 Other Audits 261 Conservatorio Vincenzo Bugeja 262 Follow-Up on the deployment of Security Personnel at the Site of St Luke’s Hospital 264 The Utilisation of Industrial Projects and Services Limited employees 267 Rehabilitation Work Scheme at Mount Carmel Hospital 275 National Audit Office - Malta 3 List of Abbrevations List of Abbreviations A/C Account AA Administrative Assistant AAFRS Accrual Accounting Financial Reporting System AAR Annual Audit Report(s) ACRT Automated Credit Transfer ADT Malta Transport Authority AFVA Automatic File Validation Agent ARR Arrears of Revenue Return ASCO Assistant Senior Correctional Officer ATC Adult Training Center BCS Beach Cleaning Section BOQ Bill of Quantity/Certification for Payment BRS Bank Reconciliation System BWA Broadband Wireless Access CASPA Children’s and Supplementary Allowances CBM Central Bank of Malta CBs Commercial Banks CC Cost Centre CCD Consumer and Competition Division CCF Central Co-operatives Fund CCF Corradino Correctional Facility CD Commerce Division CdB Central Database CDAU Child Development Assessment Unit CDRT Centre for Development, Research and Training CET Customs and Excise Tax CIO Chief Information Officer CJD Courts of Justice Division COs Correctional Officers CSD Corporate Services Directorate CSOSO Conditions of Service for Officers Serving Overseas CTD Capital Transfer Duty CV Commitment Vouchers CVB Conservatorio Vincenzo Bugeja CVU Central Visa Unit C&F Cost and Freight DAMP Data Audit Management Processing DAS Departmental Accounting System DBA Database Administrator DCS Department of Corporate Services DF Declaration Form(s) DFM Director Financial Management DI Dividend/Interest DIER Director of Industrial and Employment Relations DPI Directorate Programme Implementation 4 National Audit Office - Malta List of Abbrevations DLG Department for Local Government DOI Department of Information DSB Diplomatic Services Bureau DSS Department of Social Security EBU Extra-Budgetary Units EC European Commission ECCD Elderly and Community Care Department ECMS Embassies’ and Missions’ Cash Management System EDP Excessive Deficit Procedure EESSI Electronic Exchange of Social Security Information EIP European Investment Bank ENC Engine Capacity EOS Exemption Order Scheme ERFS Electronic Request for Service Form ETC Employment and Training Corporation EU European Union FAR Fixed Asset Register FB Fringe Benefit(s) FEC Fully-Expensed Cars FLSS Flour Subsidy Scheme FMMU Financial Management Monitoring Unit FMS Fleet Management System FOB Freight on Board FPDA Financial Policy Development and Analysis FR Financial Report FSI Financial Situation Indicator FSS Final Settlement System GFRs General Financial Regulations GGH Gozo General Hospital GPD Government Property Division GPP Government Printing Press GSPO Goods/Services Purchase Order HCMD Housing Construction and Maintenance Department HO Head Office HOM Head of Mission IAID Internal Audit and Investigations Directorate IAS International Accounting Standard IFRSs International Financial Reporting Standards IMU Information Management Unit IPSE Institute for the Promotion of Small Enterprise IPSL Industrial Projects and Services Ltd IRD Inland Revenue Division ISC Invoice Status Certificate ISO International Organisation for Standards IT Information Technology ITS Institute of Tourism Studies L/A Letter of Acceptance LCA Local Councils’ Association LDs Libyan Dinars National Audit Office - Malta 5 List of Abbrevations LES Local Enforcement System LEP Locally Engaged Personnel LGA Local Government Auditor LHO Light Heating Oil Limsuk Libyan Arab-Maltese Company for Supermarkets LM Line Ministry LN Legal Notice LOI Letter(s) of Intent LPO Local Purchase Orders LSSAC Letter from Sugar State Aid Committee LTD Licensing and Testing Directorate MARVAL Change Authorisation Tracking and Management System MATS Malta Air Traffic Services Ltd. MBO Malta Based Officers MCAST Malta College of Arts, Science and Technology M/D Ministries/Departments MDC Malta Development Corporation MDH Mater Dei Hospital ME Malta Enterprise MEB Malta Embassy Beijing MEEF Ministry of Education, Employment and the Family MEPA Malta Environment and Planning Authority MET Malta Embassy Tripoli METCO Malta External Trade Organisation MFA Ministry of Foreign Affairs MFEI Ministry of Finance, the Economy and Investment MGASs Malta Government Accounting Standards MGI Malta Government Investments MGOZ Ministry for Gozo MHA Motor Hearses Association MHEC Ministry of Health, the Elderly and Community Care MIA Malta International Airport MITA Malta Information Technology Agency MITC Ministry of Infrastructure, Transport & Communications MOBC Mediterranean Offshore Bunkering Co. Ltd. MP Multi-Payment MRAE Ministry for Rural Affairs and the Environment MRRA Ministry for Resources and Rural Affairs MSE Malta Stock Exchange MSM Marval Service Management MSSTI Malta South Sewage Treatment Infrastructure MTA Malta Tourism Authority NAO National Audit Office NBV Net Book Value NGOs Non-Government Organisations NL Notification Letters N/L Nominal Ledger NSO National Statistics Office OPM Office of the Prime Minister 6 National Audit Office - Malta List of Abbrevations PAC Public Accounts Committee PAHRO Public Administration Human Resources Office PBS Public Broadcasting Services Ltd. PC Pension Cheques PIs Performance Indicators PMO Project Management Office PP Purchase Price PPCD Planning and Priorities Co-ordination Directorate PR Public Registry Pre ‘99 ‘Old IRD System’ (Up to Year of Assessment 1998) PS Permanent Secretary PSO Principal Security Officer PSMC Public Service Management Code PVs Payment Vouchers RF Refund Form(s) RMB Renminbi RP Retail Price SA System Administrator SABS Social Assistance & Benefits System SAD Single Administrative Document SAG Special Assignment Group SAS ‘Self-Assessment System’ (Post Year of Assessment 1998) SCC Service Call Centre SDO Staff Development Organisation SFD Structural Funds Database SG Security Guards SL Sick Leave SLH St Luke’s Hospital SMS Short Message Service SPIC Social Policy Information Centre SSC Social Security Contributions SSP Sugar Subsidy Payment SSS Sugar Subsidy Scheme SVPR Saint Vincent de Paule Residence TCU Tax Compliance Unit TM Transport Malta TOIL Time-Off in Lieu TSW Treasury Salaries & Wages UIF Urban Improvement Fund UOM University of Malta USD US Dollars VAT Value Added Tax VL Vacation Leave VMS Vacation Management System WSC Water Services Corporation National Audit Office - Malta 7 Guide to using this Report Guide to using this Report This Report summarises the conclusions reached following our Financial and Compliance and IT audits. We sought to spread our reviews across Government Ministries and Departments or across Government-wide activities in accordance with the NAO Annual Audit Programme drawn up from year to year. We have attempted to make this Report as user friendly as possible and have tried to adopt common language, although this was not always possible due to the technicality of some of the issues raised. This Report is presented by ministerial portfolios as featuring in the Government of Malta Financial Estimates 2009, each containing either the Ministry itself, or one or more Departments or Entities which were the subject of our review. Most audit reports under the ministerial portfolios have the following structure: Background Includes a brief description of the relevant activities, roles and operations of the respective Ministry, Department or Entity under review. Where applicable, it may also include new legislation governing such Entity.
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