KUALA LUMPUR: The accrual-based accounting system for state governments (iSPEKS) is late by one to five years and has not been implemented effectively.
According to the Auditor-General's Report (LKAN) 2020 Series 1 which was released today, the modified cash-based financial statements of state governments generated through iSPEKS were different from the information submitted.
"This is due to the adjustments made by state treasuries on financial statements generated by iSPEKS using other support platforms. Apart from that, the accrual-based reports have not been checked for accuracy," the report said.
The report also revealed several other systemic weaknesses in terms of application control that were not in line with regulations.
The delay in the go-live iSPEKS in 11 state governments happened between January 2017 to April 2021, compared to the original go-live on Jan 1, 2016.
The government had to incur extra costs amounting to RM3.12 million to extend the maintenance contract in addition to the development cost of RM13.30 million, or 58.3 per cent more than the original cost due to the additional work scope.
In order to overcome the weaknesses, the report recommended that the Accountant-General's Department of Malaysia (JANM) monitor more closely the system's development, its real progress and the implementation of the go-live system so as to avoid delays and extra costs to the government.--BERNAMA