Issue link: https://maltatoday.uberflip.com/i/1542275
UNDOUBTEDLY, 2025 has been a most memorable year for our National Audit Office (NAO), a Constitutional Office whose main function is to act as the external auditor of the public service. Another year during which the NAO managed to remain a high- ly vibrant, trusted and relevant institution; essentially providing to parliament, and ultimately to our citizens, assurance that pub- lic funds are being used for the purpose for which they were ap- proved, in line with prevailing rules and regulations and in the most effective, efficient and eco- nomical manner possible. Focusing on its core function, as established in the Auditor Gen- eral and the National Audit Act 1997, namely performing various extensive audits across the public service in line with international standards and conventions, the office managed to finalise all of its ambitious targets listed in the au- dit plan for this year. Amongst others, this included the reports that are issued on an annual basis by the Financial and Compliance Audits Section, fo- cusing on Public Accounts (issued in December), the Working of Local Government in Malta (No- vember), and the NAO Follow-Up Assignments (July). Other audits included two performance audits, one on global climate adaptation audits for a resilient future (No- vember) and the other on home based medical and clinical ser- vices for the elderly (December), that we carried out in conjunction with various other foreign nation- al audit institutions. Moreover, besides an investiga- tive audit carried out by the Spe- cial Audits and Investigations Sec- tion (September) and other audits carried out by the Performance Audit Section, we issued a very in- teresting and innovative audit, in collaboration with our Italian col- leagues at the Corte dei Conti, re- garding the Interreg VA Italy Mal- ta Programme (July). Incidentally, this Report was nominated for the EUROSAI Award for Exceptional Auditing. A case of good practice within our Office led to excellent results by the purposely set-up internal Strategy Action Teams, whose primary objective was to ensure the timely implementation of the strategic targets incorporated within our present Strategy Plan. Just to quote one practical ex- ample, we managed to formalise our ongoing collaboration with the Malta Police Force through a Memorandum of Cooperation, ensuring a transparent and effec- tive win-win partnership, that was signed by the Commissioner of Police and myself just some weeks ago. Another challenging critical milestone that we achieved dur- ing this year was the signing of the new NAO collective agree- ment for all our staff. Indeed, af- ter lengthy negotiations with the respective union officials and staff representatives, we reached agree- ment on a new NAO Collective Agreement (2025–2030), offering all our staff enhanced remunera- tion, in recognition of their pro- fessionalism, commitment and motivation, and improved oppor- tunities for a more reasonable and healthy work-life balance. The significant progress achieved in connection with our high priority EU Commission Technical Support Instrument (TSI) project, Improving Exter- nal Audit Quality, culminating in the OECD's first visit to our office in September, was another important target reached during this year. Solid foundations have been laid for this extremely im- portant project for our office that, amongst other expected benefits, will considerably enhance our quality assurance function. It has likewise been a most memorable year for NAO on the international scene; suffice to say that our office successfully host- ed two highly prestigious events in Malta. In July, we hosted the 23rd INTOSAI WGEA Assembly, attended by 115 delegates from across the world, including eight Heads of SAI. In November, for the first time ever, we hosted the EU Contact Committee Meeting of Heads of SAI, in close collab- oration with the European Court of Auditors. Besides organising two other minor international events, throughout this year we also enhanced our bilateral ties with various other national audit institutions, particularly through the exchange of experiences and best practices. These provide very important hands-on professional development opportunities for our staff. Without any doubt, all these re- sults could not have been attained without a determined collective team effort involving all our staff within the NAO, with our techni- cal audit teams ably supported by our administration and finance as well as IT support services staff. Our teams' level of competence, professionalism and resilience is indeed commendable. I truly feel humbled and grateful to have been given the opportunity to lead this extraordinary team during this last decade. A most profes- sionally rewarding experience. As the office prepares to com- memorate its 30th anniversary within a couple of years, I strongly believe that the time has come for this institution to actively con- sider measures to strengthen its internal governance structures, thereby demonstrating alignment between its stated principles and its operational practices. One important consideration would be the setting up of a board of governance, essentially to pro- vide strategic direction and to assist the Auditor General in his day-to-day duties within the of- fice. This has been successfully applied in respect of the United Kingdom NAO as well as various other national audit institutions. However, if poorly structured, it risks political interference, in- efficiency or overlap with the Auditor General's operational role—points that need to be kept in consideration if such a strategic decision is adopted. Obviously, in order to mitigate such risks, one needs to empha- sise the importance of the careful selection of the chair and board members—this should invariably be based on the critical values of competence, qualifications, inde- pendence and integrity. Sine qua non values of every independent and creditable national audit in- stitution. 6 maltatoday | SUNDAY • 28 DECEMBER 2025 OPINION Charles Deguara Auditor General A most memorable year for the National Audit Office One important consideration would be the setting up of a board of governance, essentially to provide strategic direction and to assist the Auditor General in his day-to-day duties within the office