Audit Dept: Finas fails to confirm accuracy of financial statements

KUALA LUMPUR, Dec 3 — National Film Development Corporation Malaysia (Finas) failed to confirm the accuracy of the deferred grant balance and funds amounting to RM95.22 million.

This was due to the paying of grants and funds amounting to RM112.52 million for the year ending December 31, 2017 and a total settlement of RM95.01 million involving the 2017 expenditure.

According to the Auditor-General’s Report 2017 Series 2, the failure was one of the basis of the agency being given a contrary opinion for three consecutive years as the financial statements indicated material misappropriation and pervasiveness.

“Among these were the failure to record the value of property, plant and equipment resulting in the underestimated assets, the balances of debtors/creditors in contrast to the unofficial reporting, unearned advances/grants and non-compliance with the MPERS (Malaysian Private Entities Reporting Standard) for Sections 5, 11, 18, 24 and 32,” the report said.

According to the report, such property, plant and equipment amounting to RM19.28 million were not recorded on the revaluation done by the Valuation and Property Services Department (JPPH) in 2015.

In addition, land and buildings were also not accounted separately involving the net value of buildings amounting to RM696,847 and the purchase of land and buildings in Kuching, Sarawak worth RM1.40 million not being recorded.

The report said the equipment and buildings at the Finas Digital Mixstage Studio in Hulu Klang amounting to RM18.15 million were also not accounted separately involving the net value of the buildings and the loss incurred due to the unused assets since Jan 1, 2016.

It said Finas also did not execute the RM8.64 million in movie deposit as required under Paragraph 10 (1) of the Malaysia National Film Development Corporation Act 1981. — Bernama

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