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MDA, MTI, MOE & Mindef found to have lapses in audit books
Four government agencies have been singled out for lapses in the way they've managed their finances.
The latest Public Accounts Committee report issued on Wednesday attributed three main factors to the significant number of audit findings.
They are laxity in procurement and contract management, lack of rigour in scrutiny by approving authorities and too light a touch in ministry-statutory board dealings.
The Media Development Authority (MDA) was found to have the most number of lapses, which the committee said taken together, "reflect poorly on the overall internal controls of the MDA".
They include undue delay in refunding S$6.06 million in Radio and TV (RTV) license fees.
The committee noted that as of 31 March 2008, MDA had accumulated the overpaid or unused balance of RTV license fees.
At the time of the audit in November 2008, MDA was still processing refunds which had arose way back in 2005.
In response, the Information, Communications and the Arts Ministry said since October 2009, two automated processes have been put in place to increase the efficiency of refunds.
MDA has since completed making the refunds.
MDA was also found to have paid more than necessary for out-sourcing of enforcement functions.
The agency had entered into a two-year contract valued at S$933,312 to outsource some of its enforcement functions.
But before the start of the contract, it was discovered that some of the functions could not be outsourced due to legal reasons.
The Committee said MDA did not seek a reduction in the contract price for the reduced scope of work.
Other lapses include shortcomings in the management of Public Service Broadcast programmes and not having a system for monitoring and enforcing compliance with broadcasting licence conditions.
In view of the number of lapses noted, the committee recommends that the Auditor-General's Office (AGO) consider reviewing MDA's governance and controls in two to three years’ time, instead of the usual once in seven years.
Among the other agencies taken to task, the Education Ministry was rapped for paying more than necessary on school cleaning contracts while the Defence Ministry was found to have carried out wrongful certification for a consultancy project, resulting in advance payment of $289,499 to the Defence Science and Technology Agency (DSTA).
Four government agencies have been singled out for lapses in the way they've managed their finances.
The latest Public Accounts Committee report issued on Wednesday attributed three main factors to the significant number of audit findings.
They are laxity in procurement and contract management, lack of rigour in scrutiny by approving authorities and too light a touch in ministry-statutory board dealings.
The Media Development Authority (MDA) was found to have the most number of lapses, which the committee said taken together, "reflect poorly on the overall internal controls of the MDA".
They include undue delay in refunding S$6.06 million in Radio and TV (RTV) license fees.
The committee noted that as of 31 March 2008, MDA had accumulated the overpaid or unused balance of RTV license fees.
At the time of the audit in November 2008, MDA was still processing refunds which had arose way back in 2005.
In response, the Information, Communications and the Arts Ministry said since October 2009, two automated processes have been put in place to increase the efficiency of refunds.
MDA has since completed making the refunds.
MDA was also found to have paid more than necessary for out-sourcing of enforcement functions.
The agency had entered into a two-year contract valued at S$933,312 to outsource some of its enforcement functions.
But before the start of the contract, it was discovered that some of the functions could not be outsourced due to legal reasons.
The Committee said MDA did not seek a reduction in the contract price for the reduced scope of work.
Other lapses include shortcomings in the management of Public Service Broadcast programmes and not having a system for monitoring and enforcing compliance with broadcasting licence conditions.
In view of the number of lapses noted, the committee recommends that the Auditor-General's Office (AGO) consider reviewing MDA's governance and controls in two to three years’ time, instead of the usual once in seven years.
Among the other agencies taken to task, the Education Ministry was rapped for paying more than necessary on school cleaning contracts while the Defence Ministry was found to have carried out wrongful certification for a consultancy project, resulting in advance payment of $289,499 to the Defence Science and Technology Agency (DSTA).
