Annual audit flags procurement weaknesses, lack of controls in government entities

Shortcomings in procurement processes by government entities, weak monitoring on overtime and a lack of cash management controls were among the problems flagged by the National Audit Office.

The findings come from 38 reports on the operations of several government departments and entities that form part of the Auditor General’s annual audit report.

The report, which covers public expenditure for 2019, was tabled in parliament this afternoon. It contains more than 300 recommendations to address the shortcomings.

Key findings include details of how procurement regulations were often bypassed by the Foundation for Tomorrow’s Schools in the construction of the new Marsascala primary school.

In the case of the Agency for the Welfare of Asylum Seekers, procurement issues were also accompanied by a lack of source documentation, the NAO said.

The report also noted weak monitoring and control on overtime at St Vincent de Paul Residence that could lead to potential abuse.

Lack of internal controls on the number of hours worked by lecturing staff at the Malta College of Art, Science and Technology was also identified during an audit of personal emoluments.

Weaknesses in internal control procedures were identified at Mount Carmel Hospital and Trade Malta Limited, while controls related to cash management at the Planning Authority were also deficient.

A lack of ownership over the Malta National Shooting Range project also led to compromised internal controls, the NAO said.

It also noted insufficient enforcement procedures in respect of the collection of revenue from duty on documents and class two social security contributions.

Delays in the processing of information was the main cause for overpayments of pension to individuals benefitting from residential services in Gozo, the NAO said.

An audit at the Local Enforcement System Agency (LESA) revealed limited control over the collection of pending fines.