Special Audits by Auditor-General on Government-related Bodies
Ministry of FinanceSpeakers
Summary
This question concerns the number and rationale of special audits conducted by the Auditor-General’s Office on government-related bodies over the past 20 years, as raised by Mr Leon Perera. Minister for Finance Heng Swee Keat clarified that only two such audits occurred: the 1996 Healthcare Subsidy Audit and the 2014 Audit of Aljunied-Hougang-Punggol East Town Council (AHPETC). The 1996 audit was initiated via a Parliamentary resolution to verify healthcare subsidy figures, while the 2014 audit was directed after AHPETC’s auditors issued disclaimers of opinion. Minister for Finance Heng Swee Keat noted that both audits involved independent verification of financial data and compliance with rules, addressing specific concerns raised by a Select Committee and external auditors respectively. Both sets of findings were eventually tabled and debated in Parliament to ensure transparency and accountability regarding the use of public funds and regulatory adherence.
Transcript
19 Mr Leon Perera asked the Minister for Finance (a) in the past 20 years, how many Government-related bodies have undergone a special audit by the Auditor-General outside of the regular annual audit exercises by the Auditor-General; and (b) what are the details and rationale of each case.
Mr Heng Swee Keat: The Auditor-General’s Office (AGO) annually conducts audits of the Government Financial Statements which cover the accounts of the Ministries, Departments and Organs of State. In addition, it also carries out selective audits on a selection of public agencies which involve checks on their compliance with rules and procedures.
Besides these audits, AGO had carried out two special audits over the past 20 years.
One, the Healthcare Subsidy Audit in 1996. Following a Parliamentary resolution to verify the fees charged and healthcare subsidy provided by Government polyclinics and public hospitals, including a claim made in Parliament that "healthcare costs are hardly subsidised at all", the Select Committee on Verification of Health Care Subsidy of Government Polyclinics and Public Hospitals was formed and AGO was requested to carry out an audit to verify the Government's healthcare figures, such as fees charged, subsidy level provided.
The Government's healthcare figures were independently verified by AGO and confirmed to be free from material errors and the details of AGO's findings were tabled and debated in Parliament on 30 September 1996 and 10 October 1996 respectively.
Two, the Audit of Aljunied-Hougang-Punggol East Town Council (AHPETC) in 2014. AGO was directed to carry out an audit of AHPETC's financial year (FY) 2012 accounts following repeated and serious concerns raised by AHPETC's auditors. AHPETC's auditor submitted a disclaimer of opinion on AHPETC's financial statements for FY2011 and FY2012. The auditor also issued a qualified opinion on AHPETC's other legal and regulatory requirements, stating that AHPETC has not complied with the provisions of the Town Councils Act and Financial Rules in various respects.
AGO submitted its report on 6 February 2015 and the details of its findings were debated in Parliament on 12 and 13 February 2015.