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Auditor General's Report 2015 AUDITOR GENERAL’S REPORT 2015 NATIONAL AUDIT DEPARTMENT MALAYSIA GOVERNMENT’S FINANCIAL STATEMENT, FINANCIAL MANAGEMENT No. 15, Level 1-5 FOR THE YEAR 2015 AND ACTIVITIES OF THE Persiaran Perdana, Presint 2 Pusat Pentadbiran Kerajaan Persekutuan FEDERAL MINISTRIES/DEPARTMENTS AND 62518 Putrajaya MANAGEMENT OF THE GOVERNMENT’S COMPANIES www.audit.gov.my SERIES 1 NATIONAL AUDIT DEPARTMENT MALAYSIA WJHS00124 Cover.indd 1 WJHS00124 T.page.indd 11 5/13/165/13/16 3:354:18 PMPM SYNOPSIS AUDITOR GENERAL’S REPORT FOR THE YEAR 2015 THE AUDIT OF THE FEDERAL GOVERNMENT’S FINANCIAL STATEMENT, FINANCIAL MANAGEMENT, ACTIVITIES OF THE FEDERAL MINISTRIES/DEPARTMENTS AND MANAGEMENT OF THE GOVERNMENT COMPANIES NATIONAL AUDIT DEPARTMENT MALAYSIA i WJHS00124 T.page.indd 1 5/13/16 2:53 PM CONTENTS iii WJHS00124 T.page.indd 2 5/13/16 2:53 PM CONTENTS iii WJHS00124 T.page.indd 3 5/13/16 2:53 PM CONTENTS PAGE CONTENTS v SECTION I THE FEDERAL GOVERNMENT’S FINANCIAL STATEMENT AND FINANCIAL MANAGEMENT OF THE FEDERAL MINISTRIES/DEPARTMENTS PREFACE 5 SYNOPSIS 13 PART I CERTIFICATION OF THE FEDERAL GOVERNMENT‟S FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2015 1. Certification Of The Federal Government‟s Financial Statement For The Year Ended 31st December 2015 15 PART II FINANCIAL MANAGEMENT OF THE FEDERAL GOVERNMENT 2. Overall Financial Management Performance 15 3. Financial Management Of The Federal Ministries And Departments 16 4. Public Accounts Committee Meeting 17 CONCLUSION 19 v WJHS00124 T.page.indd 4 5/13/16 2:53 PM CONTENTS PAGE CONTENTS v SECTION I THE FEDERAL GOVERNMENT’S FINANCIAL STATEMENT AND FINANCIAL MANAGEMENT OF THE FEDERAL MINISTRIES/DEPARTMENTS PREFACE 5 SYNOPSIS 13 PART I CERTIFICATION OF THE FEDERAL GOVERNMENT‟S FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2015 1. Certification Of The Federal Government‟s Financial Statement For The Year Ended 31st December 2015 15 PART II FINANCIAL MANAGEMENT OF THE FEDERAL GOVERNMENT 2. Overall Financial Management Performance 15 3. Financial Management Of The Federal Ministries And Departments 16 4. Public Accounts Committee Meeting 17 CONCLUSION 19 v WJHS00124 T.page.indd 5 5/13/16 2:53 PM SECTION II MINISTRY OF RURAL AND REGIONAL DEVELOPMENT/ PUBLIC WORKS DEPARTMENT ACTIVITIES OF THE FEDERAL MINISTRIES / 6. Construction Of The Subang UniKL Malaysian Institute DEPARTMENTS AND MANAGEMENT OF THE Of Aviation Technology (MIAT) Campus, Selangor 53 GOVERNMENT COMPANIES MINISTRY OF WORKS/ PUBLIC WORKS DEPARTMENT PREFACE 29 7. Construction Of A New Way Project From Seremban SYNOPSIS 35 Hi-Way PD-FR5 In Pasir Panjang And Upgrading FR5 From Pasir Panjang To Linggi, Negeri Sembilan PART 1 (Section 1) 55 IMPLEMENTATION OF ACTIVITIES BY THE FEDERAL MINISTRIES/DEPARTMENTS MINISTRY OF WORK MALAYSIA / MINISTRY OF WOMEN, FAMILY AND COMMUNITY PRIME MINISTER’S OFFICE 8. Project Management Reconstruction Quarters Welfare National Disaster Management Agency Department 58 1. The Management Of Home Construction And Refurbishment For Flood Victims 37 MINISTRY OF TRANSPORT 9. The ERL Extension Project From KLIA To klia2 62 PRIME MINISTER’S DEPARTMENT/MINISTRY OF HOME AFFAIRS MINISTRY OF ENERGY, GREEN TECHNOLOGY AND Malaysia Civil Defence Department 2. Management On Procurement Of Supplies And WATER / MINISTRY OF FEDERAL TERRITORIES Services 41 Sewerage Services Department 10. Sewerage Projects Under The River Cleaning Components For “River Of Life” Program 65 MINISTRY OF FINANCE Inland Revenue Board Of Malaysia 3. The Management Of Company Civil Suit 43 MINISTRY OF HEALTH MALAYSIA 11. Management Of Orthopedic Treatment Activities 67 12. Management Of Private Security Services Company Royal Malaysian Customs Department In Hospital 70 4. Controls Of Licensed Warehouse For Liquors And Cigarettes 46 MINISTRY OF HEALTH MALAYSIA / MINISTRY OF WORKS MALAYSIA MINISTRY OF RURAL AND REGIONAL DEVELOPMENT 13. Construction Project Of New Tampin Hospital, Negeri 5. Rural Water Supply Programme In Sabah 50 Sembilan 73 vi vii WJHS00124 T.page.indd 6 5/13/16 2:53 PM SECTION II MINISTRY OF RURAL AND REGIONAL DEVELOPMENT/ PUBLIC WORKS DEPARTMENT ACTIVITIES OF THE FEDERAL MINISTRIES / 6. Construction Of The Subang UniKL Malaysian Institute DEPARTMENTS AND MANAGEMENT OF THE Of Aviation Technology (MIAT) Campus, Selangor 53 GOVERNMENT COMPANIES MINISTRY OF WORKS/ PUBLIC WORKS DEPARTMENT PREFACE 29 7. Construction Of A New Way Project From Seremban SYNOPSIS 35 Hi-Way PD-FR5 In Pasir Panjang And Upgrading FR5 From Pasir Panjang To Linggi, Negeri Sembilan PART 1 (Section 1) 55 IMPLEMENTATION OF ACTIVITIES BY THE FEDERAL MINISTRIES/DEPARTMENTS MINISTRY OF WORK MALAYSIA / MINISTRY OF WOMEN, FAMILY AND COMMUNITY PRIME MINISTER’S OFFICE 8. Project Management Reconstruction Quarters Welfare National Disaster Management Agency Department 58 1. The Management Of Home Construction And Refurbishment For Flood Victims 37 MINISTRY OF TRANSPORT 9. The ERL Extension Project From KLIA To klia2 62 PRIME MINISTER’S DEPARTMENT/MINISTRY OF HOME AFFAIRS MINISTRY OF ENERGY, GREEN TECHNOLOGY AND Malaysia Civil Defence Department 2. Management On Procurement Of Supplies And WATER / MINISTRY OF FEDERAL TERRITORIES Services 41 Sewerage Services Department 10. Sewerage Projects Under The River Cleaning Components For “River Of Life” Program 65 MINISTRY OF FINANCE Inland Revenue Board Of Malaysia 3. The Management Of Company Civil Suit 43 MINISTRY OF HEALTH MALAYSIA 11. Management Of Orthopedic Treatment Activities 67 12. Management Of Private Security Services Company Royal Malaysian Customs Department In Hospital 70 4. Controls Of Licensed Warehouse For Liquors And Cigarettes 46 MINISTRY OF HEALTH MALAYSIA / MINISTRY OF WORKS MALAYSIA MINISTRY OF RURAL AND REGIONAL DEVELOPMENT 13. Construction Project Of New Tampin Hospital, Negeri 5. Rural Water Supply Programme In Sabah 50 Sembilan 73 vi vii WJHS00124 T.page.indd 7 5/13/16 2:53 PM MINISTRY OF URBAN WELLBEING, HOUSING AND MINISTRY OF EDUCATION MALAYSIA LOCAL GOVERNMENT 22. Management Of Perbadanan Kota Buku 100 National Solid Waste Management Department 14. Solid Waste Disposal Sites Management 77 MALAYSIA OF FINANCE MALAYSIA 23. Management Of Multimedia Development National Housing Department Corporation Sdn. Bhd. 102 15. Construction Of The People's Housing Programme, 24. Management Of Malaysian Agrifood Corporation Lembah Subang 2 80 Berhad (MAFC) 104 25. Sepang International Circuit Sdn. Bhd. 107 MINISTRY OF DEFENCE 16. The Management Of Jiwa Murni Project In Sarawak 82 CONCLUSION 111 MINISTRY OF WORKS / MINISTRY OF HOME AFFAIRS Prison Department of Malaysia 17. Management Of Construction Project Penjara Reman (Tegar) Johor Bahru, Johor 85 MINISTRY OF HOME AFFAIRS Immigration Department of Malaysia 18. Implementation Of The Malaysian Immigration System (myIMMs) 87 MINISTRY OF EDUCATION MALAYSIA 19. Management Of Private Security Services Company In Schools 91 20. Management Of Supplementary Food Programme 93 PART II MANAGEMENT OF GOVERNMENT COMPANIES MINISTRY OF TOURISM AND CULTURE MALAYSIA 21. Malaysia Convention & Exhibition Bureau 97 vii i ix WJHS00124 T.page.indd 8 5/13/16 2:53 PM MINISTRY OF URBAN WELLBEING, HOUSING AND MINISTRY OF EDUCATION MALAYSIA LOCAL GOVERNMENT 22. Management Of Perbadanan Kota Buku 100 National Solid Waste Management Department 14. Solid Waste Disposal Sites Management 77 MALAYSIA OF FINANCE MALAYSIA 23. Management Of Multimedia Development National Housing Department Corporation Sdn. Bhd. 102 15. Construction Of The People's Housing Programme, 24. Management Of Malaysian Agrifood Corporation Lembah Subang 2 80 Berhad (MAFC) 104 25. Sepang International Circuit Sdn. Bhd. 107 MINISTRY OF DEFENCE 16. The Management Of Jiwa Murni Project In Sarawak 82 CONCLUSION 111 MINISTRY OF WORKS / MINISTRY OF HOME AFFAIRS Prison Department of Malaysia 17. Management Of Construction Project Penjara Reman (Tegar) Johor Bahru, Johor 85 MINISTRY OF HOME AFFAIRS Immigration Department of Malaysia 18. Implementation Of The Malaysian Immigration System (myIMMs) 87 MINISTRY OF EDUCATION MALAYSIA 19. Management Of Private Security Services Company In Schools 91 20. Management Of Supplementary Food Programme 93 PART II MANAGEMENT OF GOVERNMENT COMPANIES MINISTRY OF TOURISM AND CULTURE MALAYSIA 21. Malaysia Convention & Exhibition Bureau 97 vii i ix WJHS00124 T.page.indd 9 5/13/16 2:53 PM WJHS00124 T.page.indd 10 5/13/16 2:53 PM SECTION 1 1 WJHS00124 Tek 1.indd 1 5/13/16 3:02 PM SYNOPSIS AUDITOR GENERAL’S REPORT FOR THE YEAR 2015 THE FEDERAL GOVERNMENT’S FINANCIAL STATEMENT AND FINANCIAL MANAGEMENT OF THE FEDERAL MINISTRIES/DEPARTMENTS NATIONAL AUDIT DEPARTMENT MALAYSIA 3 WJHS00124 Tek 1.indd 2 5/13/16 3:02 PM SYNOPSIS AUDITOR GENERAL’S REPORT FOR THE YEAR 2015 THE FEDERAL GOVERNMENT’S FINANCIAL STATEMENT AND FINANCIAL MANAGEMENT OF THE FEDERAL MINISTRIES/DEPARTMENTS NATIONAL AUDIT DEPARTMENT MALAYSIA 3 WJHS00124 Tek 1.indd 3 5/13/16 3:02 PM PREFACE 5 WJHS00124 Tek 1.indd 4 5/13/16 3:02 PM PREFACE 5 WJHS00124 Tek 1.indd 5 5/13/16 3:02 PM PREFACE 1. Article 106 and 107 of the Federal Constitution and the Audit Act 1957 require the Auditor General to audit the Federal Government‟s Financial Statement, financial management, activities of the Ministries/Departments as well as management of the Federal Government companies and submit his reports to His Majesty, the Supreme Head of Malaysia and obtain his assent before tabling them in Parliament. To fulfil these responsibilities, the National Audit Department needs to carry out 4 types of audit as follows: 1.1. Attestation Audit - to give an
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