Press Releases

 

1  On behalf of public agencies, the Ministry of Finance (MOF) would like to thank the Auditor-General and her officers for the Report of the Auditor-General FY2023/24.

2  The Auditor-General has issued an unmodified audit opinion on the Government Financial Statements. This is an independent verification that the Government’s accounts are prepared, in all material aspects, in accordance with the law and public funds have been properly accounted for.

3  The Government takes the Auditor-General’s Office (AGO)’s observations seriously. The audits by AGO are crucial for maintaining public trust, accountability and transparency in the management of public monies. Where lapses have been identified, agency heads will review each case thoroughly to get to the root cause, and implement measures to address the issues promptly. We also continuously undertake efforts to strengthen governance capabilities, processes, and systems across agencies. Good practices highlighted will be shared across public agencies to raise governance standards. 

4  The FY23/24 AGO report raised three areas that public agencies need to pay greater attention to. These were:

5  The Government will continue to make improvements in these areas including by better leveraging technology. 

a  Procurement and Contract Management

The Government regularly reviews and enhances procurement and contract management policies and practices. The observations in procurement and contract management relate mainly to construction projects, which are typically more complex and span multiple years. Contract variations for complex construction projects may arise due to various factors including unexpected site conditions. The Government has also been strengthening construction contract management policies and processes, including on star rate items¹. MOF updated the Government’s procurement policy to guide agencies in proactively getting tenderers to submit more comprehensive contract rates prior to tender award to reduce reliance on star rates downstream, and support the use of a risk-based approach in assessing cost reasonableness of star rate items. The Building & Infrastructure Centre of Excellence (B&I CentEx) set up under JTC in 2016 also plays a critical role to manage construction projects for non-infrastructure agencies. The B&I CentEx will continue to build up its capabilities to strengthen governance in contract management. 

We are also committed to strengthening the capabilities of public officers but also consultants involved in the management of complex construction projects. In 2023, MOF worked with BCA to launch a Built Environment Procurement Competency Framework. MOF is working with BCA to launch a course to train public officers and consultants to administer the Public Sector Standard Conditions of Contract for construction works. 

b  Management of Grants

To ensure proper financial governance and strengthen capabilities in grants administration, MOF developed and issued the grants governance framework to all agencies in 2020. The framework sets out clear rules and guidance on the entire grants management process, from grant design, approval and disbursement, to monitoring and anomaly detection. It also emphasises the importance of proper planning and risk management, to ensure effective use of public funds and to safeguard against fraud and abuse. The rules are augmented by a good practice guide that provides helpful examples and practical advice for all agencies. In collaboration with the Civil Service College, MOF has also developed a grants governance e-learning programme to equip public officers handling grants management with knowledge of the grants governance framework.

c  Management of Revenue and Collections

We are committed to ensuring effective processes and robust internal controls over revenue and collections functions. For example, in 2023, MOF issued a guidance note on arrears management involving the use of public monies, which highlighted the best practices for monitoring, managing, and recovering such arrears. Agencies will also expand the scope and frequency of checks and ensure operational systems for revenue and collections are functioning as intended. 

6  In addition, the Government will continue to deepen our workforce capabilities to uphold high standards of governance and accountability. To complement professional competency frameworks used to guide workforce development, MOF’s Finance and Procurement Academy has rolled out technical and professional development programmes that have been attended by more than 6,500 officers annually over the past three years on average.

8  AGO’s thematic audit focused on selected parenthood support measures managed by the Ministry of Social and Family Development (MSF) and the Early Childhood Development Agency (ECDA). AGO noted that MSF and ECDA had processes and controls in place across the various grant stages to ensure proper management of the schemes. AGO also observed a number of good practices by both agencies, including leveraging systems and data to reduce human error in grant administration, systems checks to flag out exceptions for review and digital features to reduce instances of incorrect submissions. 

9  AGO observed areas for improvement, such as inadequate checks as part of grant approval and monitoring, which resulted in incorrect disbursements and the potential abuse of grant schemes. 

10  To detect and deter potential abuse and strengthen management of grant schemes, agencies are stepping up vigilance and checks, by leveraging network analytics and cross-sharing information across agencies to flag possible irregularities relating to government grants. MOF and the Commercial Affairs Department have also developed a fraud risk management checklist to help agencies better prevent and detect fraud or abuse through improved grant design, administration and audit.

11  The Public Service remains committed to upholding values of integrity, service and excellence. We continue to innovate and improve to respond to higher public expectations, higher complexities of our work, and rising work volumes. We will continue to improve our policies, processes and systems to serve Singapore and Singaporeans better.

¹ Items not listed in the schedule of rates within the contracts.

Issued by: 

Ministry of Finance 

Singapore

17 July 2024