On Thursday the National Audit Office (NAO) published a report highlighting a number of shortcomings in government departments as well as in non-central government organisations. The mid-year report covers up to June 2006 in respect of financial year ending 31 December 2005.
Shortcomings were identified in the areas of social security contributions, children allowances and Public Debt Budgeting among others.
According to the report, the handover of Pre-1998 Class 1 Social Security Contributions from Social Security Department (SSD) to Inland Revenue Department (IRD) was late and incomplete, with IRD failing to verify information provided by SSD.
An audit carried out on Children Allowances revealed that the Social Security Department failed to physically confirm custody of children and the composition of households as claimed by applicants. A number of overpayments or underpayments in allowances during the period under review were also highlighted.
According to the NAO The Public Debt Budgeting process is not fully documented and lacks audit trail. Audit of salaries carried out at the Courts of Justice as well as within the Ministry of Education, Youth and Employment revealed weak controls over attendance and overtime records.
In turn, the Auditor General reported that the Tax Compliance Unit is well equipped to carry out tax investigations. However it was noted that up to 2004, the Unit’s contribution towards Government’s net revenue yield was below that envisaged when the TCU was launched.
According to the Auditor General the TCU was rendered less effective as it lacked the general direction of the Strategy and Policy Management Board. In the absence of Board meetings, communication and coordination between the tax collecting and social security departments was weakened.
It was concluded that given adequate support from its Board and more co-operation from the tax collecting departments, the TCU can be in a stronger position to make a more notable contribution towards Government’s fiscal objectives, and instilling further a culture of tax compliance.
The report unveiled other short comings were noted in the Industrial and Employment Relations Department, the Customs department, the Government Quarry, the Bio Medical Engineering Stores, Non-Central Government Organisations, the Paying Agency (PA) within the Ministry for Rural Affairs and the Environment and the IACS Department.
© Copyright 2006 - MaltaMedia Online Network
Top of Page
| 
