Notwithstanding the challenges and difficulties that were brought about by the COVID-19 pandemic, thanks especially to the commitment, determination and resilience of its staff, the National Audit Office (NAO) has not only managed to successfully conclude its audit plan for 2020 but also completed other useful unplanned assignments related to its public sector audit mandate.
Indeed, ensuring that the NAO remains a vibrant and relevant institution is reflected in the strategic goals highlighted in the office’s strategic plan 2019-2023. Only thus can its primary dual objective, essentially of promoting good governance across the public sector as well as providing assurance to parliament and to its citizens that public funds are being used in an effective and efficient manner and in line with prevailing rules and regulations, be duly achieved.
Its core function as the public service’s external auditor was carried out through the publication of 19 NAO reports and assignments during 2020 – an absolute record for a single year – touching upon a diverse range of subjects, as can be seen in the table below.
The NAO was set up in its present format by virtue of the Auditor General and National Audit Office Act, CAP 396, as well as relevant amendments to the Constitution of Malta, namely Section 108, both approved unanimously by both government as well as the opposition on July 25, 1997. In essence, these legislative amendments guaranteed full autonomy to the NAO – a sine qua non condition for every credible national audit institution.
Indeed, as both my deputy and I are considered as officers of Parliament, all NAO reports are submitted to the Speaker, Anġlu Farrugia, to be presented to the House of Representatives and, eventually, may be discussed within the public accounts committee. However, recently, the need for strengthening its legislative framework became increasingly felt within the NAO, especially in view of emerging challenges and issues faced by all public sector auditing institutions.
Our own audit practices and methodologies have been put under scrutiny
Thus, following extensive internal consultations, legislative proposals were drawn up by the NAO to amend the relative section of the constitution, as per proposals presented to President George Vella last January and to also amend the relative law as per additional proposals presented to Justice, Equality and Governance Minister, Edward Zammit Lewis last November. If accepted, these amendments will put the NAO in a better position to carry out its constitutional mandate.
In order to continue providing the highest level of auditing service to the public sector and to safeguard its credibility, the NAO is fully aware that, invariably, it continuously needs to follow the maxim ‘practise what you preach’. How can this office expect its auditees to enhance good governance, resulting in enhanced service delivery, if it does not do its utmost to do so itself by acting as a model institution?
It is in this spirit of corporate responsibility that, last year, a team was set up to carry out a comprehensive internal review, based on methodology developed by the International Organisation of Supreme Audit Institutions (INTOSAI), called Supreme Audit Institution (SAI) Performance Measurement Framework.
Thus, our own audit practices and methodologies have been put under scrutiny with a view to eventually take any remedial action deemed necessary to ensure a higher compliance to established international standards for national audit institutions. We strongly believe such internal analysis is necessary to ensure ongoing development of good practices in any organisation.
Last year, President Vella and Prime Minister Robert Abela held their first official visits to the NAO, in July and November respectively. The Leader of the Opposition, Bernard Grech, is scheduled to make his first official visit this month. During their visits both the president and the prime minister conveyed their appreciation of the sterling work being undertaken by the staff of the NAO.
The NAO’s senior management communicated their plans and objectives for the coming years, highlighting the fundamental need to safeguard the trust and credibility enjoyed by the office, especially by always ensuring the highest levels of objectivity, fairness and professionalism in all its work.
Last November, the NAO also managed to organise the sixth edition of the annual National Audit Office – European Court of Auditors Seminar, this time in a virtual manner. The theme chosen for this year could not have been more appropriate ‒ ‘Responding to the COVID 19 Pandemic – the Audit Perspective’. For the first time , this seminar included interventions by two members of the European Court of Auditors ‒ Leo Brincat, who delivered the keynote speech, and Eva Lindstrom. They were joined by two other speakers from the NAO and the Internal Audit and Investigations Department respectively, William Peplow and Simone Sapiano, both senior audit managers.
The NAO looks forward with optimism and vigour to remain a vibrant and relevant institution of oversight. Preliminary work on its ambitious audit plan for 2021 has already been initiated and we are determined to carry out the internal changes deemed necessary to ensure an enhanced public audit service delivery within our own office.
We are fully aware that our excellent team, made up of committed, competent and professional staff, constitutes our most valuable resource. This will ensure that we will be able to rise to the occasion whatever the challenges we face.
Charles Deguara, Auditor General