KUALA LUMPUR (Feb 24): Malaysia’s auditor general flagged concerns over the 2023 financial statements of nine federal government agencies in the latest report released on Monday.

Muda Agricultural Development Authority, an agency under the Ministry of Agriculture and Food Security, was given an ‘adverse opinion’ after the auditors found that RM392.95 million could not be verified in its accounts.

Manual adjustment made outside the Standard Accounting System for Government Agencies could also not be verified, the auditor general said.

The auditor general may issue a ‘modified opinion’ when it could not fully vouch for a financial statement and part of it was not prepared in line with accounting standards. An ‘adverse opinion’ is when the financial statements contain material and comprehensive errors.

The auditor general certified 142 out of 145 financial statements, while three agencies — the Labuan Financial Services Authority, Labuan Financial Services Authority Staff Welfare Fund and Southern Kelantan Development Authority — had yet to submit their financial statements for audit. Out of those certified, 133 agencies were given a clean bill of financial health.

Assets of the 142 agencies totalled RM2.696 trillion and liabilities amounted to RM871 billion, at the end of 2023. However, five of the agencies had liabilities exceeding assets.

Recommendations were also provided to the federal agencies, said Auditor General Datuk Seri Wan Suraya Wan Mohd Radzi in a statement.

That includes taking proactive action to tighten internal controls and improve the financial system in line with the accounting standards adopted to ensure accurate reporting and effective financial management, she said.

For subsidiaries facing losses and not providing returns, their direction and business plan should be reviewed, and federal agencies should pay serious attention including closing their dormant units and subsidiaries that have been inactive for more than five years, Wan Suraya added.

The report’s key audit area was on the Solid Waste Management and Public Cleansing Corporation, which auditors found overstated assets and accounts receivable for exchange transactions was understated by RM60.41 million.

The agency, also known as SWCorp, received federal government grants totalling RM1.545 billion in 2023.

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