Sarawak Financial Accounts Obtained Clean Certificate for 19 Consecutive Years
KUCHING (May 27): Sarawak has again received an unqualified certificate which is an unqualified report for its financial accounts for the year ending December 31, 2020, Deputy Prime Minister Datuk Amar Douglas Uggah Embas has said.
Speaking at the session of the State Legislative Assembly (DUN), he told the august House that with this, the state has achieved 19 consecutive years of flawless record for its financial statements.
“Notwithstanding this, international and domestic rating agencies have also reaffirmed Sarawak’s commendable investment grade credit ratings.
“Moody’s and Standard & Poor’s reaffirmed ratings at A3 and A- respectively. While Malaysian Rating Agency (RAM) confirmed Sarawak with AAA credit rating.
“This is yet another clear testament to Sarawak’s good governance and prudent financial management in managing its financial affairs,” he said in his ministerial closing address yesterday.
He said his ministry will continue to ensure sound financial management by adopting international best practices, leveraging digital technologies and enhancing the professionalism and skills of officers.
Uggah, who is the second Minister for Finance and New Economy, also briefed the august House on the preparations for the implementation of accrual accounting in the public accounts of Sarawak.
“In accordance with Article 108, paragraph 4, point f) of the Federal Constitution, the National Finance Council had agreed, at its meeting of July 30, 2013, to implement accrual accounting for the Federal Government and state governments, as well as the bill to amend the Financial Procedure Act of 1957.
“In this regard, the Accountant General Department of Malaysia (AGD) has prepared the Malaysian Public Sector Accounting Standards (MPSAS) based on the International Public Sector Accounting Standards (IPSAS), with the aim of implementing accrual accounting,” he said.
He said that for Sarawak, the implementation of accrual accounting is in line with the Financial Management Transformation Initiative aimed at strengthening the government’s financial management and accounting system.
“Accrual accounting facilitates better planning, better financial management and better decision-making in government, as well as a robust and accepted means of measuring the economy, efficiency and effectiveness of public policies .
“It would also allow us to take a long-term view of public finances, improve value for money and improve the transparency of financial information,” he said.
He also said that the government of Sarawak will move from modified accrual to accrual accounting for state financial statements and will report after approval by Parliament of amendments to the Financial Procedure Act 1957 for respond to accrual accounting and the announcement by the Federal Minister of Finance on the implementation date for the federal and state governments.