Keeping govt agencies on their toes

The Auditor-General’s Office (AGO) plays an essential role in the governance of Singapore, although it is possibly less well known to the public than its counterparts involved in keeping public life clean and wholesome. The AGO is an independent organ of state and the national auditor which enhances public accountability in the management and use of public funds and resources through its audits. Proud of the independence which allows it to act without fear or favour, the AGO audits government ministries and departments, organs of state, statutory boards, government funds, and other public authorities and bodies administering public funds (upon their request for an audit). Its hawk-eyed observations identify system weaknesses, non-compliance with control procedures or legislation, and instances of excess, extravagance, or gross inefficiency leading to waste in the use of public funds and resources. The AGO’s annual report keeps ministries, organs of state, statutory boards and government-owned companies on their toes.

In this year’s report, the People’s Association, the Public Service Division, the Ministry of Communications and Information and the Civil Aviation Authority of Singapore

were among the government agencies flagged for lapses and weaknesses.

The AGO cited instances of awarding contracts to debarred contractors, co-mingling official funds with staff’s personal funds, giving excessive IT access rights, and over-disbursing support grants. It also highlighted possible irregularities in the records provided to the AGO by the State Courts and the Singapore Food Agency. These deficiencies will no doubt be addressed as all these organisations tighten their work processes in the light of the report.

Additionally, the AGO

conducted what is known as a thematic audit

– an in-depth examination of a selected area that may involve more than one public sector entity – on selected Covid-19 related grants managed by the Inland Revenue Authority of Singapore (Iras) and the Singapore Tourism Board. The report offers three important messages on the rapid implementation of grant schemes in a crisis or an emergency: identifying and documenting the key risks involved; maintaining proper governance of scripts and datasets; and improving the level of documentation and communication of key matters. Commendably, the Ministry of Finance and Iras have responded by accepting the audit observations, while noting that Covid-19 measures were implemented amid rapidly changing conditions and helped to save jobs and livelihoods. Indeed, the ministry and Iras have taken immediate steps of rectification where relevant.

In like spirit, down the road, it is important for public agencies to not go on the defensive following adverse observations made in the AGO’s reports, but to acknowledge that, as part of good governance, there always is scope for improving internal processes whose weaknesses are highlighted in those reports. This is a tradition whose continuation good governance in Singapore demands.