Page 469 - ANUAL REPORT MOH 2017

INTRODUCTION

The sustainability of excellent financial management and an effective delivery service system depends
significantly on the personnel that are involved in the financial management system. The existence
and establishment of Internal Audit through internal auditing activities enabled management to improve
on their financial management performances and the implementation of their planned programmes/
activities by using optimum resources.

ACTIVITIES AND ACHIEVEMENTS

In line with the entrusted position of internal audit as stipulated in Treasury Circular 1 Pekeliling
Perbendaharaan Malaysia (1PP) PS 3.1 and PS 3.2 to primarily provide assurance on internal controls;
compliance to statutory laws, regulations and directives; and consulting services to mitigate risks, the
Internal Audit Division (IAD) has carried out financial management audits at selected Responsibility
Centres (RCs) and rated them accordingly to determine whether assets, liabilities, revenue and
expenditure have been managed accordingly. 63 per cent of the selected RCs audited were rated
5 star (excellent) whilst 28 per cent and 9 per cent were rated 4 star (good) and 3 star (satisfactory)
respectively.

Besides financial management audits, IAD has carried out another performance audits on selected
programmes/activities to evaluate whether the programmes/activities were implemented according
to rules and regulations and achieved their purposes. A total of 12 performance audits were carried
out and seven (7) of them were related to procurement as this formed the most potential risk area
that can be exposed to mismanagement. Material issues raised from IAD’s audits were tabled at the
quarterly Audit Committee meetings chaired by the Secretary General of Ministry of Health (MOH).
Issues raised have been addressed and resolved by the relevant parties concerned. Corrective and
preventive measures have been put in place to strengthen internal controls and where appropriate,
issues that were related to mismanagement were subsequently followed up by the Integrity Unit; and
punitive actions taken against those concerned.

SUMMARY

With the support of various levels of management in MoH and the RCs visited, IAD has succeeded in
carrying out its roles and responsibilities as entrusted in 1PP. All efforts undertaken by every individual
in MoH to rectify and improve shortcomings in processes and procedures; and upheld governance has
helped to strengthen the public service delivery system in the healthcare sector.

468 ANNUAL REPORT 2017 MINISTRY OF HEALTH MALAYSIA