The introduction to the Report provides a background to the Public Sector Administration in Malta and includes an overview of the Public Accounting System.  A brief historical background to the NAO since the set up of the first National Audit Institution in 1814 then follows.  The independence, scope, role and rights of access of the NAO are explained and a summary of the audit process in Financial and Compliance Audit and Performance Audit is also provided.   

The Report describes the relations that it has with the House of Representatives, namely the Public Accounts Committee and the NAO Accounts Committee. The latter examines the budget and appoints private sector auditors to audit NAO’s accounts. 

Another part describes bi-lateral and multi-lateral international relations with other Supreme Audit Institutions, the European Court of Auditors, the International Organisation of Supreme Audit Institutions and other overseas organisations.   All the events – those held in Malta and overseas - that the NAO participated in during the year are listed. 

The Report presents the core organisation structure of the NAO and provides an overview of developments relating to staff mobility, qualifications, recruitment, and other local and overseas training activities. A review is also given on the progress and strategy relating to IT developments. 

Finally, reference is made to the challenges that the NAO is currently facing or will face in the near future resulting from EU Membership and other modern developments affecting the Public Sector Administration and Accounting Systems. 

The Auditor General concludes his Report by thanking all NAO employees who assist him in discharging his duties.