Singapore's Ministry of Finance Responds to Auditor General's FY2324 Audit Report

Ministry of Finance Statement on Auditor-General's Report FY2324

Date: July 17, 2024

Subject: Unmodified Audit Opinion for Government Financial Statements

The Ministry of Finance MOF acknowledges the Auditor-General's Office AGO's unqualified audit report for the financial year ed March 31, 2024. The AGO's review affirms that the government’s financial statements are in compliance with applicable laws and regulations, ensuring proper accountability for public funds.

We recognize the significant role of audits conducted by AGO in upholding public trust through transparency and accountability. Upon any identified lapses, we promptly engage respective agency leaders to conduct a thorough review to uncover root causes. Immediate corrective measures are implemented swiftly while continually strengthening governance frameworks across public agencies to elevate standards further.

The Auditor-General's report highlighted three key areas for enhanced focus by public entities:

1. Procurement and contract management, particularly in ensuring rigorous oversight over contractors.

2. Grant administration practices requiring better risk management, with emphasis on leveraging data analytics for improved monitoring capabilities.

3. Revenue and collections management demanding more accurate billing and timely revenue collection mechanisms.

The MOF emphasizes that the government is committed to making continuous improvements across these areas by embracing technology as a catalyst for change:

For procurement and contract management:

• Regular reviews are conducted to refine procurement policies, especially in complex construction projects where adjustments to star rates have been made. The Building Infrastructure Centre of Excellence BI CentEx, established under JTC in 2016, has been instrumental in strengthening governance practices related to construction project management.

To address issues in grant administration:

• A comprehensive grants governance framework was introduced by MOF and the Civil Service College developed an e-learning program for public officers involved in handling grants. This framework ensures proper planning and risk assessment throughout the grants lifecycle, from design through disbursement and monitoring phases.

For revenue and collections management:

• In 2023, a guidance note on arrears collection was released focusing on strengthening processes to ensure timely revenue collection mechanisms.

In addition to these initiatives, AGO has also conducted thematic audits on parenthood support measures managed by the Ministry of Social and Family Development MSF and Early Childhood Development Agency ECDA. It's noted that both agencies possess robust processes and checks across the various stages of grant administration. However, AGO did observe areas for improvement, including inadequate checks during grant approval and monitoring phases.

To address these issues, we are intensifying vigilance through the deployment of network analytics to flag potential irregularities relating to government grants and sharing information cross-agencies. A fraud risk management checklist has been developed by MOF in collaboration with Commercial Affrs Department to guide agencies in designing, managing, auditing grants for enhanced prevention and detection capabilities.

The public service remns dedicated to mntning integrity, excellence in service delivery, while adapting to the evolving demands of work complexity and volume. We will continue to innovate our policies, processes, and syste better serve Singapore and its citizens.

For further information on any aspects detled above or inquiries related to this statement, please reach out via insert contact detls.

Thank you for your attention to this matter.

Sincerely,

Your Name

Your Position

Ministry of Finance

Singapore
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