Ministry of Women, Family and Community Development(mwfcd)

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- Detailed planning during the design and construction stage should be carried out to avoid major changes and emendments during the constuction progress and ensuring contract administration are fully comply

- Vehicle for the preliminaries shall be placed at project site and should be given priority from time to time

- Ministry of Malaysia Education

- Management of Perbadanan Kota Buku

Perbadanan Kota Buku (PKB) is a limited by guarantee company incorporated by Ministry of Education (MOE) on 6th July 2011 under the Companies Act 1965 without share capital. PKB is mandated to facilitate the development of books industry in realization of the National Book Policy. Besides, this policy proposed a one-stop centre to gather and support readers, writers and publishers in books related activities. Then, PKB has 4 main activities namely Akademi KotaBuku, Copyright and Intellectual Property, Research and Consultation, and Digital Publication. The Government through MOE disbursed in stages RM30 million grants from the year 2011 to 2014 to support PKB’s operation and books related activities to promote the country’s books industry.

Meanwhile, the audit performed from June to October 2015, focused on corporate governance, main activities and financial aspects of PKB for the year 2012 to 2015 revealed that in general, activities implemented by PKB were consistent with the mandate. Moreover, PKB’s financial performance was satisfactory with an excess of income for 3 consecutive years contributed by other incomes, examples of 83.28% to 88.56% which was generated from the amortization of grants. In addition, PKB did not actively participate or implement books related activities whereby for the last 4 years from the year 2012 to August 2015, PKB only organized and participated in 97 activities with total expenditure of RM4.77 million.

It was noticed that from the year 2013 to 2015, PKB received less respond for its e-Book sales through digital publications. For a period of 3 years, only 249 digital books were subscribed with revenue of RM1, 495. Whereas, there are several issues that been recognized which are as follows:

i. Management of PKB less focus on the outcome and impact on its activities or programs they organized or participated;

ii. Board of Directors’ approval for 2 international book fair participation could not be verified; and

iii. Strategic Plan was not finalized; Key Performance Indicators (KPI) as a company’s performance measuring tools were not established, and Standard Operating Procedures (SOP) related to the company's main activities were not prepared.

As the opinion is to take action on the following matters are PKB’s Board of Directors must closely monitor the implementation of main projects or activities to ensure objectives of the company’s establishment are achieved, PKB’s management must ensure approval from Board of Directors for all activities to be implemented or be participated and PKB’s Board of Directors and management must finalise its short-term and long-term strategic plan in determining the company’s direction. Further, the PSA is less active in the investment or execution activity books where in the last 4 years (2012 to August 2015), PKB is organized and participated in 97 events with expenses amounted to RM4.77 million. Apart from that, E-Book sales by platform

digital publishing is also less likely to appeal where only 249 works with digital subscription revenue amounting to RM1,495 for 3-year period (2013 to 2015).

In addition, in management of grants in the planning stage and monitoring is unsatisfactory. As the weaknesses in the planning resulting in the use of grants managed discretionary grants implementing the agreement without clear guidance. The next distribution of grants of the government should clearly state terms and conditions of the grant and use of data necessary grants submitted to the relevant Ministry for monitoring purposes. The implementation of the activities and decisions made by the Board of Directors should be clearly recorded in the minutes of meeting. Among other things, details of the proposed activities to get Board approval, the rationale for any decision, action to be taken and the time period agreed upon. This is for ensure that the Board obtains sufficient information to make decisions and the company's management can also decided to implement Board decisions too.

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- CONCLUSION

- Ministry of Women, Family and Community Development (MWFCD)

Overall, the auditors found that there are some problems that occur during the construction process is carried out. The problem that arises is causing a lot of financial problems occur. However, financial problems can be handled by creating several actions that have been taken by the PWD. Thus, cost savings can be seen after the construction project is completed.

- Ministry of Malaysia Education

For ministry of Malaysia Education, in management of grants in the planning stage and monitoring is unsatisfactory. As the weaknesses in the planning resulting in the use of grants managed discretionary grants implementing the agreement without clear guidance. The next distribution of grants of the government should clearly state terms and conditions of the grant and use of data necessary grants submitted to the relevant Ministry for monitoring purposes. The implementation of the activities and decisions made by the Board of Directors should be clearly recorded in the minutes of meeting. Among other things, details of the proposed activities to get Board approval, the rationale for any decision, action to be taken and the time period agreed upon. This is for ensure that the Board obtains sufficient information to make decisions and the company's management can also decided to implement Board decisions too.

4.0 REFERENCE

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