Sarawak is financially healthy, says Auditor-General

CERTIFICATION OF SARAWAK STATE GOVERNMENT’S FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

1. The Sarawak State Government Financial Statement for the year ended 31 December 2015 had been certified. Supporting documents for the purpose of confirming all the figures were submitted as required. The accounting records were properly maintained and up-to-date.

Generally, the Financial Statement reflected a true and fair view of the financial affairs of the State Government as at 31 December 2015.

PART II - FINANCIAL ANALYSIS ON STATE GOVERNMENT’S

2. Generally, audit analysis found that the financial position of the State Government of Sarawak for the year ended 2015 was stabled.

The balance of the Consolidated Fund as at the end of 2015 was RM29.44 billion, an increase of RM2.42 billion compared to RM27.03 billion as at the end of 2014.

In the year 2015, the State Government recorded a surplus of RM966.05 million compared to RM3.05 billion in year 2014.

The revenue collection for the year also shows a decrease of RM1.95 billion or 21.9% becoming RM6.95 billion compared to RM8.90 billion in the year 2014.

However, arrears in revenue recorded a decrease of RM77 million or 32% to RM163.69 million from RM240.69 million in year 2014.

The State Government Operating Expenditure showed an increase of RM138.37 million or 2.4% that is from RM5.85 billion in year 2014 to RM5.99 billion in years 2015.

3. The Recoverable Loan Balance registered a decrease of RM1.64 million or 0.1% from RM2,447.06 million in year 2014 to RM2,445.42 million in year 2015.

The arrears of Recoverable Loan repayment increased by RM166.77 million or 22.5% from RM741.52 million in year 2014 to RM908.29 million in year 2015.

The total amount of shares investment decreased by RM69.93 million or 1.6% in year 2015.

Total amount of public debt increased by RM205.24 million or 8.8% to RM2.54 billion against RM2.33 billion in year 2014.

The arrears of public debt by State Government for year 2015 were RM44.84 million.

PART III - THE STATE GOVERNMENT’S DEVELOPMENT PLAN

4. The performance of State Government development projects implementation in the Tenth Malaysia Plan as at 31 December 2015 was good whereby an amount of RM16.50 billion or 89.2% from the total of RM18.50 billion has been spent.

However, based on the physical performance of the projects implemented, only 267 or 65.3% out of 409 projects were completed whereas 142 projects were in progress.

PART IV - SUBMISSION, CERTIFICATION AND TABLING OF FINANCIAL STATEMENTS AND FINANCIAL PERFORMANCE OF THE STATE AGENCIES

5. Generally, the submissions and preparations of Financial Statements for the Year 2015 by 25 State Statutory Bodies, 25 Local Councils and Sarawak Islamic Council were good.

All the Financial Statements for the year 2014 were certified and given Unqualified Audit Certificate. As at 14 December 2015, all the Financial Statements for the year 2014 of State Statutory Bodies and Local Councils have been tabled before the State Legislative Assembly except for Sarawak Stadium Corporation and The Commission of the City of Kuching North.

6. In general, the financial position of State Statutory Bodies for year 2015 was fair compared to year 2014. As at end of year 2015, the surplus of accumulated income or accumulated profit of State Statutory Bodies increased by RM188.69 million or 6.6%, net total assets decreased by RM107.01 million or 1.4%, net current assets increased by RM143.58 million or 4.7% and surplus of accumulated income for the current year increased by RM16.02 million or 9.3% compared to year 2014.

As at 31 December 2015, a total of 29 out of 54 active subsidiaries of 8 State Statutory Bodies gained a total of RM921.12 million accumulated profit while 25 subsidiaries showed accumulated loss of RM881.78 million.

A total of 8 out of 22 dormant subsidiaries of 2 State Statutory Bodies gained a total of RM2.90 million accumulated profit while 14 subsidiaries showed accumulated loss of RM11.67 million. As a whole, Local Councils recorded deficit of RM5.70 million in year 2015.

The arrears in tax assessment has increased by RM8.30 million or 10.1% from a total of RM82.47 million in year 2014 to RM90.77 million in year 2015.

PART V - TABLING OF THE AUDITOR GENERAL’S REPORT AND MEETINGS OF THE STATE PUBLIC ACCOUNTS COMMITTEE

7. The Auditor General's Report on the Activities of Ministries/Departments/Agencies and the Management Of State Government Companies for the Year 2014 3rd Series has yet to be tabled in the State Legislative Assembly.

The State Public Accounts Committee held the 49th and 50th meeting from 8 to 10 March 2016 to discuss The Auditor General’s Report on the State Government Financial Statements And Financial Management of the State Ministries/Departments/Agencies and the Auditor General's Report on the Activities of the Ministries/Departments/Agencies and the Management Of State Government Companies for the Year 2013 and 2014.

The reports of the 47th and 48th State Public Accounts Committee meetings which discussed the Auditor General’s Reports for the Year 2011 and 2012 were tabled before the State Legislative Assembly on 7 December 2015.