While the media world is abuzz with these lapses
highlighted in the report, found in the listed Ministries and Statutory Boards,
let’s take a step back and dive into what the report really is for and how it
is ultimately beneficial and a necessary evil (to those audited and whose
lapses were flagged).
1) Not a forensic audit but gives ‘a general
clean bill of health like a general medical examination’
The audit approach is
generally based on the auditor’s evaluation of the controls that exist in the
organisation and test checks on controls and transactions. It is beyond AGO’s
remit to identify fraud and often, the findings in the report does not suggest
fraud, but mostly procedural lapses.
While there are
limitations to test checks, the audit
does serve a purpose:
Like a general
medical examination which gives a general clean bill of health to the patient,
an unqualified audit report would give general assurance that the statements of
the organisation reported on is free from material error. [Source]
2) Ensures Forces organisations to be transparent
In the words of the
AGO, his audits are carried out without fear or favour. It ‘forces’
organisations to come clean and introduce rectifications for the lapses that
were flagged in AGO’s report, instead of remaining undetected, or even worse,
be swept under the carpet.
In this way,
organisations remain accountable for
their actions, especially where public monies are involved.
3) Ascertain that important information is not
omitted
Especially where
public money is concerned, everything needs to be accounted for. This will
prevent any misdemeanours from being carried or surface misdemeanours that have
been done.
It keeps public
confidence high and signals that there is zero
tolerance for corruption in the public service.
4) Ensures
that organisations operate in accordance to THEIR OWN prescribed standards and
guidelines
Irregularities flagged in AGO’s report
would highlight the discrepancies or procedural lapses committed by the
organisations flagged. The standards and guidelines that these organisations
are audited against are set by the organisations themselves, and not by the
AGO.
In other words, it helps keep the troops in check, ensures that no one toes above the
designated line and that the sticks on the ground are kept aligned – to a
tee.
5) Evaluate internal controls and governance
structure in the organisation
On the flip side to
the point above, perhaps organisations need to take a “beating” from the AGO,
before realising that their internal controls and governance structure are not
working.
More often than not,
guidelines set are well-intentioned but may be old fashioned and does not match
the realities on the ground, especially in times of emergency/urgency.
6) No stone left unturned – even the tiniest
ones
The AGO report
highlights instances of non-compliance involving relatively small sums of
public funds. This is because non-compliance with procedures are signs of weak
internal controls – reporting of such observations serve to raise awareness of
the need for effective internal controls.
Small lapses, if
regarded as trivial and allowed to perpetuate, would lower the standard of
governance in the public sector. They could lead to material errors or be exploited resulting in significant loss
of public monies.
While the
organisations audited may not particular enjoy being flagged for the lapses
committed, these audits help to ensure that the government remains fair,
transparent and accountable. It will reinforce
to the all organisations, the need to learn from mistakes made, make good and
ensure that it does not happen again.
No comments:
Post a Comment