State Audit Institution Issues a Community Brief on the Results of its Work Contained in the 2023 Annual Report

State Audit Institution Issues a Community Brief on the Results of its Work Contained in the 2023 Annual Report

Date of Publication: Oct 13, 2024, 4:59 PM

Collection and recovery of OMR 177.7 million to the State Public Treasury, of which OMR 95 million recovered in 2023, and OMR 82.7 million recovered in 2022 after the issuance of 2022 Annual Report.

115 cases addressed by the SAI

951 complaints and reports received by the SAI

      State Audit Institution issued a community brief on the results of its work contained in its 2023 Annual Report to highlight the results of the financial and administrative audit of some government units, authorities, investments and companies subject to its audit after fulfillment of the followed procedures with those entities. The Brief highlights the efforts excreted by State Audit Institution in the promotion of integrity in 2023.

      The Community Brief is issued after the submission of the 2023 Annual Report of State Audit Institution to His Majesty Sultan Haitham bin Tarik by His Excellency Sheikh Ghuson bin Hilal Al-Alawi, Chairman of State Audit Institution. Copies of the Annual Report were sent to the Council of Ministers and State and Shura Councils, in implementation of the provisions of Article (66) of the Basic Statute of the State issued by Royal Decree No. 6/2021, and Article (29) of State Audit Law issued by Royal Decree No. 111/2011.

      In this regard, His Excellency Ahmed bin Salim Al-Rujaibi, Deputy Chairman of State Audit Institution, stated that the issuance of the Brief is a reflection of the Royal approach of His Majesty the Sultan in promoting the principles of transparency, integrity and accountability across all sectors and involving the community in strengthening the oversight scheme in order to achieve the national objectives. His Excellency further added that the 2023 Community Brief reflects the tasks implemented as per the 2023 annual audit plan prepared by State Audit Institution taking into account the objectives of Oman Vision 2040 as well as the principles, foundations and standards approved by the International Organization of Supreme Audit Institutions (INTOSAI), in addition to the audit manuals in accordance with the principle of materiality and risk analysis.

       His Excellency indicated that the Community Brief in its fourth edition includes general statistics on the numbers and types of audit tasks of 2023 annual audit plan. State Audit Institution carried out (187) audit tasks, from which (185) reports were issued containing (2683) observations. The audit tasks involved some government units, authorities, investments and companies subject to the audit of SAI.

His Excellency added that the key audit topics related to government units focused on many vital areas, primarily the audit of tax assessment and collection of companies income tax, withholding tax and indirect taxes, as well as follow-up and evaluation of the operational environment of the precious metals and artifacts stamping laboratory, in addition to the audit of some activities of social housing projects, evaluation of the preparedness of the Ministry of Education’s schools for the academic year 2022/2023, and evaluation of some IT general controls and the central recruitment system. Not to mention the audit and evaluatin of the mechanism for issuing tourism licenses and its challenges, and evaluation of the progress of the strategic programs of the 10th Five-Year Development plan, as well as the audit of Dhofar Municipality Building Project, in addition to the audit of some financial and administrative activities of some Governors' offices, audit of some operational contracts at Sultan Qaboos University, audit of some financial and administrative activities at the University of Technology and Applied Sciences as well as the evaluation of some executive and financial aspects of the Agricultural and Fishery Development Fund, and other topics.

       With regard to authorities, investments and companies, His Excellency indicated that the key audit topics included the audit of some financial and administrative activities of some authorities and exploration and production companies in the fields of oil, gas and mining, audit of some service contracts of Petroleum Development Oman as well as audit of draft settlement agreement concluded between PDO and one of the contractors, and audit of PDO financial statements and some financial operations. Moreover, the audit of some financial and administrative activities of OQ Methanol Company, Oman Liquefied Natural Gas (OLNG) and Oman Investment Authority, besides the follow-up on the implementation of the transformation plan for smart meters and evaluation of customer services at some electricity companies, and evaluation of Oman Water and Wastewater Services Company after merger. In addition, the audit of some financial and administrative activities, tenders and contracts of Dhofar Integrated Services Company (wastewater sector), audit of some operation and maintenance activities of sewage treatment plants and their assets in the governorates, and other topics.

      His Excellency also confirmed in his statement that the Community Brief includes a statement of the positive impacts of SAI work results for the year 2023, represented in achieving direct added value from collecting and recovering amounts of 177.7 (one hundred seventy-seven million and seven hundred thousand Omani Rials) to the State Public Treasury, of which 95 (ninety-five million Oman Rials) were recovered in 2023, and 82.7 (eighty-two million and seven hundred thousand Omani Rials) were recovered in 2022 and contained in the 2023 Annual Report, in light of SAI follow-up on the recovery of those amounts and receipt of supporting documents on their collection.

      Moreover, SAI dealt with (115) public fund cases in 2023, for some of which convictions were issued. The most significant of those cases were bribery, forgery in official and customary documents, embezzlement, misuse of position, information forgery in government data, use of position to realize an advantage, conflict of interest, public fund transgression and failure to perform job duties. His Excellency added that in 2023 SAI reviewed (57) legislations, in light of its responsibilities to review and comment on draft laws, regulations and systems prepared by the entities subject to its audit with respect to financial and accounting affairs as well as taxes and fees, as per Article (5) of State Audit Law issued by Royal Decree No.111/2011.

     In the field of promoting community partnership, State Audit Institution devoted professional care towards dealing with complaints and reports received from the community via available communication channels, and concerned with aspects of financial and administrative irregularities, negligence, failure to perform job duties and misuse of public fund. The brief further includes some statistics related to those complaints and reports which amounted to (951) during 2023, with a completion rate of about 87%.

      His Excellency Deputy Chairman of State Audit Institution concluded his statement by emphasizing the considerable attention devoted by State Audit Institution towards media and awareness aspects aiming at reflecting community partnership, promoting integrity values, establishing a community culture of protecting public fund and preserving the State’s gains through the implementation of many programs, activities and events including TV and radio programs, press releases, lectures and seminars, in addition to digital and printed publications.