What the Auditor-General said about Penang

The Penang state government continues to be in the good books of the Auditor General, who commended its improved financial position in 2010 compared to 2009.

According to the latest AG report, Penang's consolidated revenue grew by 2.7 percent, from RM1,101.89 million for 2009 to RM1,131.17 million in 2010. The consolidated cash reserve rose by 6.2 percent to RM572.49 million, up from RM538.95 million in 2009.

“The state’s revenue for 2010 has increased by RM34.19 million or 9.1 percent compared to 2009 from RM376.51 million to RM410.70 million,” observes the report.

The AG advises the state government to make better investment analysis as a way to increase dividends.

“Besides that, the state government is also urged to continue its effort to collect arrears in revenue amounting to RM78.78 million at the end of 2010 from land tax, loan repayment to students, rental of houses, shop lots and so on,” the report adds.

On development under the Ninth Malaysia Plan, the AG rates the state’s performance as satisfactory with a total of RM787.17 or 77.8 percent being spent from the allocated RM1.01 billion.

In terms of implementation of projects, the report hails the state's performance as 'very good' with 99 percent of the 9,003 projects successfully carried out.

The report concludes that the financial management of state agencies remained good for 2010.

“In 2010, 3 agencies are in ‘very good’ category like 2009. 10 agencies are considered ‘good’ and one at satisfactory level,” it says.

For three successive years, 13 state agencies audited at least twice between 2007 to 2010 have showed ‘very good’ financial management by the state treasury and development body.

What the Auditor-General said about Kelantan

The Auditor General has rated the Kelantan state government’s financial position in 2010 as satisfactory.

The state saw a revenue increase of RM51.07 million or 52.5 percent, from RM97.23 million in 2009 to RM148.30 million in 2010.

"Analysis of 5 years into the consolidated revenue from 2006 to 2010 shows a dip in 2007 and 2008 and then increase in 2009 and 2010. Cash reserves and investment rose in 2010, with the balance of RM97.23 million in 2009 increasing to RM148.30 million in 2010,” reads the AG’s report released yesterday.

The AG has advised Kelantan to spend prudently without affecting quality of service and development, citing an increase in state debt by RM118.25 million, from RM993.75 million in 2009 to RM1,112 million in 2010.

“The state government must also ensure arrears in revenue are collected and loans repaid according to schedule, and arrears repayment must be collected in full. The debt to Federal government must also be paid according to schedule including delayed repayment," the report adds.

On the state’s development, the AG notes that the state government underspent for a period of five years utilising only RM715.23 million or 42.1 percent of the total allocation.

As such, the report concludes that the spending and implementation have been "unsatisfactory".

It however praises financial management of all government agencies in Kelantan, with four state agencies being rated as ‘very good’ and the other 15 as ‘good’.

“This shows an improvement in financial management of the state compared to 2009 where only two agencies were rated as ‘very good’ and 12 as ‘good’,” it added, saying state performance could be improved through financial and management training for state officers.

What the Auditor-General said about Kedah

The Kedah state government achieved a 135.8 percent increase in state revenue with a record surplus budget for 2010 at RM22.50 million, compared to deficit of RM62.89 million in 2009, says the latest Auditor General's report on the state.

“State expenditure meanwhile only rose by RM2.55 million or 0.6 percent. This led to a surplus for the state government in 2010,” it said.

Last year, the AG rated Kedah’s financial position as satisfactory with a consolidated revenue increase of 23.9, from RM265.52 million to RM328.28 million in 2009.

The increase, says the latest report, reduced the balance of the Consolidated Revenue Account deficit in 2010 by a total of RM22.50 million or 7 percent, from RM320.73 million down to RM298.23 in 2009.

The report however cautions the state over the increase in loans from the Federal government by RM249.81 million in 2010, bringing the total amount to RM2.61 billion from RM2.38 billion in 2009.

It urges the state to take more effective measures to recover arrears of revenue as 2010 had registered only RM172.67 million, a fall of 13.5 percent or RM27.16 million, compared to RM199.83 million in 2009.

On projects under the Nineth Malaysia Plan, the report rates the state’s project implementation as of 31 December 2010 as satisfactory with RM2.51 billion or 73.3 percent from the RM3.42 billion allocated being spent.

It also commends the state government for improving the financial management of its agencies compared to 2009, with four agencies getting the ‘very good’ rate, 12 ‘good’ and one as 'satisfactory'.

“Overall, the financial management of the state’s agencies has improved compared to 2009,” it notes.

What the Auditor-General said about Selangor

Overall, the Selangor state government received a ‘satisfactory’ rating from the Auditor General for its financial position ending 2010.

The state’s consolidated revenue increased by RM266.91 million or 20.2 percent, from RM1,319.97 million in 2009 to RM1,586.88 million in 2010. This is despite it registering a 10.9 percent or RM192.36 million drop to RM1,571.50 million in state’s revenue last year (RM1,763.86 million in 2009).

“The operating expenditure has also decreased by RM382.56 million or (20.9 percent) to RM1,447.26 million in 2010 compared to RM1,829.82 million in 2009,” reads the AG’s report.

The state government received praised for reduction in revenue arrears by RM99.87 million or 16.6 percent, from RM601.92 million in 2009 to RM502.05 million in 2010.

The AG however rates the state’s long-term investment as ‘unsatisfactory’ due to very low dividend returns over the past five years, from 2006 to 2009, with no dividend recorded in 2010.

In the development category, the AG notes that the state government completed 64.5 percent or 927 self-funded projects listed under the Nineth Malaysia Plan.

“Although the expenditure achievement for 9th Malaysia Plan for 5 years from 2006 to 2010 has reached 92.1 percent, there are only 1,108 (77.1 percent) from 1,437 approved projects which are completed or implemented,” it notes.

The report rates as 'very good' the financial management for four state agencies, namely the state treasury, Ampang Jaya Municipal Council, Selayang Municipal Council, and Urban and Rural Planning department.

According to the report, 11 agencies are ‘good’ and one agency is 'satisfactory'. This, it adds, is better compared to 2009 as only one agency was listed as ‘very good’, 14 as ‘good’ and one satisfactory.