Accountability Report 2009 (2nd Accountability Report)

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ACCOUNTABILITY REPORT

Foreword
PArT Two
PArT FoUr
PArT oNe
PArT THree
02
20
52
06
30
AdAA oVerVIew ANd STrATeGY
1.1 oUr MANdATe ANd STrATeGIC
PILLArS
1.2 oUr SUBJeCT eNTITIeS ANd
oUr FUNCTIoNS
1.3 oUr STrUCTUre
1.4 PrIorITIZING oUr worK
1.5 oUr oUTCoMeS
1.6 oUr ACCoUNTABILITY, oUr
GoVerNANCe
1.7 oUr PeoPLe
AdAA 2009 rePorT ANd 2010
worK PLAN
3.1 oUr 2009 HIGHLIGHTS
3.2 oUr FoCUS IN 2010
3.3 SUMMArY oF AdAA oUTPUTS-
2009 ACTUAL VS. 2010 TArGeTS
3.4 oUTPUT GroUP 1: FINANCIAL
AUdIT ANd eXAMINATIoN
3.5 oUTPUT GroUP 2: PerForMANCe
ANd rISK ASSUrANCe
3.6 oUTPUT GroUP 3: ASSISTANCe
ANd AdVISorY
3.7 oUTPUT GroUP 4: SPeCIAL
eXAMINATIoN
3.8 oUTPUT GroUP 5: AdAA CeNTer
oF eXCeLLeNCe
AdAA’S oUTPUT GroUPS
2.1 FINANCIAL AUdIT ANd
eXAMINATIoN
2.2 PerForMANCe ANd rISK
ASSUrANCe
2.3 ASSISTANCe ANd AdVISorY
2.4 SPeCIAL eXAMINATIoNS
2.5 AdAA CeNTer oF eXCeLLeNCe
AdAA AUdITed FINANCIAL
STATeMeNTS

H. E. Riyad Al Mubarak
Chairman

02
Reflecting back on 2009, it feels like only
yesterday the establishment of the Abu Dhabi
Accountability Authority (ADAA) was announced.
However, we look at where ADAA has reached today
and we realize that the stroll we took unfolded
trials and accomplishments endeavored in journeys
that surpass a period of 12 months.
ADAA has proven with the issuance of its 2nd
Accountability Report that it is on the right path
towards achieving the essence of its existence
and its mandate. We admit that there were plenty
of challenges and difficulties testing our newly
structured organization, yet we were supported and
driven to success by many elements and I take this
opportunity to acknowledge four primary ones:
• The clarity and precision of the Abu Dhabi
Policy as envisaged by our leader; His Highness
Sheikh Khalifa Bin Zayed Al Nahyan, President
of the UAE and Ruler of Abu Dhabi and that is the
Transparency we seek to sustain.
• The leadership and direction of His Highness
Sheikh Mohamed bin Zayed Al Nahyan, Crown
Prince of Abu Dhabi and Chairman of the
Executive Council and that is the Accountability
that we ask each one of you to claim.
• The dedication and sincerity of ADAA’s people
towards achieving its vision and objectives and
that is the Professionalism that we promise.
• The cooperation of ADAA’s Subject Entities and
their commitment towards achieving the Abu
Dhabi 2030 vision and that is the Respect and
Integrity that we take pride in.
We have taken an oath before God, our leadership
and the country that we intend on keeping no
matter what challenges or impediments we face.
We may refer to it most of the time as our
mandate but we consider it a legacy that we were
entrusted with by our father and founder of the
UAE, the late Sheikh Zayed Bin Sultan Al Nahyan
and our forefathers.
Foreword This report will tell you in plain and transparent
language how far we have come and where we
intend to go. We invite you without any conservation
to our universe, telling you our story and
introducing the directions of its proceedings.
I would like to share with you some of our key
highlights that give every member of the ADAA
family a reason to be proud:
• ADAA issued more than 167 reports.
• ADAA developed and released a classification
of all Public Entities.
• ADAA was the 1st organization in the Middle
East to become a member in the International
Forum for Independent Audit Regulators
(IFIAR), a leading non-profit organization for the
independent regulation of the audit profession in
the world.
• ADAA performed an inspection of Statutory
Auditor reports for the 1st time in the UAE to
enhance the credibility of financial statements
and reinforce public trust.
• The establishment of the “ADAA Training Center”,
our training and development arm with 38
enrolled UAE nationals from ADAA and different
Subject Entities.
• ADAA developed the Statutory Auditors
Appointment Rules (SAAR), governing and
strengthening the process of the appointment of
a Statutory Auditor by any Subject Entity.
This short preview does not conclude what we want
you to know but it is a mere invitation to read and
explore further our Accountability Report 2010.
Riyad Al Mubarak
Chairman

ADAA Overview
and Strategy

06 AdAA overview and Strategy
PART
ADAA OVERVIEW AND STRATEGY
1.1 OUR MANDATE AND STRATEGIC PILLARS
The Abu Dhabi Accountability Authority (“ADAA”) was established on 18th December 2008 as an independent
body reporting to the Crown Prince, Chairman of the Executive Council with the primary objectives to:
• Ensure that public resources and funds are managed, collected and expended efficiently,
effectively and economically.
• Ensure accuracy of the financial reports and compliance of the Subject Entities with relevant laws, rules and
regulations and governance guidelines.
• Promote accountability and transparency.
Our Vision
Our Mission
“To be one of the top 5 accountability bodies in the world”
“To help improve the performance and promote accountability and transparency across Abu Dhabi Government
and Public Entities through providing independent and objective assurance and advisory services”
Our Values
INTEGRITY AND RESPECT
PROFESSIONALISM
Lead by Example
Treating others with Respect
Listening to other points of view
Being Independent, Objective and Neutral
Collaborative and Effective Teamwork
Earning the trust of People we interact with
Being passionate about the work we do
Innovating and going beyond the current standards
ACCOUNTABILITY AND TRANSPARENCY

Our Overall Strategy
To assist Subject Entities enhance performance and to promote accountability and transparency by:
• Becoming a trusted and welcomed advisor to the Government and Subject Entities.
• Leading by example and supporting adoption of better practices.
• Enhancing communication and collaboration between Subject Entities and support sharing of knowledge.
1.2 OUR SUBjECT ENTITIES AND OUR FUNCTIONS
ADAA Subject Entities comprise of local departments, councils, authorities and other similar entities. In
addition to institutions, companies and projects in which the Abu Dhabi Government’s interest is equal to or
greater than 50% inclusive of their subsidiaries, companies and projects.
ADAA may exercise its functions and duties on other entities subject to other criteria as per its mandate.
Our Strategic Goals
The strategic goals of ADAA are summarized as follows:
Promote high standards of governance, accountability and transparency
to ensure that funds dispensed by public entities, achieve desired goals
effectively, efficiently, economically, and ethically.
Promote Governance,
Accountability and
Transparency
Enhance Performance
Maintain and Promote
Leading Practices
Develop Human Capital
Support public entities in enhancing their performance and improve the
quality of data used by decision makers.
Maintain and promote leading practices through continuous Research and
Development and sharing of knowledge.
Train and develop UAE Nationals graduates.
Retain high caliber and experienced individuals.
1
2
3
4

1. Courts (Diwans) 2. Central Government 3. State-owned
Enterprises (SOE)
Executive Council 20 SOE Holding
SOEs Subsidiaries
(Approx. 150 )
AD Education
Council
Water &
Electricity
Bureau
AD Sports
Council
Urban
Planning
Council
Environment
Authority - AD
AD Authority
for Culture &
Heritage
AD Tourism
Authority
AD Food
Control
Authority
Western
Development
Council
AD Economic
Development
Council
AD Tawteen
Council
Department
of Economic
Development
Department
of Municipal
Affairs
Health
Authority - AD
AD Police
Zones Corp
Regulatory
Security
Advisory
Critical National
Infrastructure
Authority
AD Media
Authority
* Other Government Agencies
Department of
Finance
AD System & Info.
Center
General
Secretariat Committees Executive
Affairs
Ruler’s Court
Department of
Judiciary
Crown Prince
Court
ADAA
Ruler Rep
Courts
National Consul-
tative Council
08
Department of
Transport
11.ADWMC
12.ADNEC
13.ADAC
14.ADPC
15.ADIC
16.SEHA
17.ADMC
18.EPC
19.ATIC
20.ENEC
1.ADNOC
2.AD Fund
3.ADIA
4.IPIC
5.ADWEA
6.ADX
7.Mubadala
8.Etihad
9.GHC
10.TDIC
Subject Entities Classification
ADAA has categorized all public entities into three classifications illustrating its Subject Entities:
AdAA overview and Strategy

1. Paris-Sorbonne University–Abu Dhabi
2. Abu Dhabi Vocational Education and Training Institute
3. Institute of Applied Technology
4. Emirates College for Educational Development
5. Abu Dhabi Educational Zone
6. Al Ain Educational Zone
7. Western Region Educational Zone
8. Khalifa University for Science, Technology and Researches
9. Al Ain Vocational Education and Training Institute
10. Western Region Vocational Education and Training Institute
11. Zayed Higher Organization
12. Social Care & Minors Affairs Foundation
13. Family Development Foundation
14. The National Rehabilitation Center
15. Abu Dhabi Center for Housing and Services Facilities Development
16. Private Housing Loans Authority.
17. Abu Dhabi Farmer Financial Support Fund
18. Abu Dhabi Retirement Pensions & Benefits Fund
19. Dar Zayed for Islamic Culture
20. The Emirates Heritage Club
21. Khalifa Fund for Projects Development
22. Statistics Centre - Abu Dhabi
23. Abu Dhabi Quality and Conformity Council
24. International Fund for Habara Conservation
25. Abu Dhabi Farmers Services Centre
26. Organic Agriculture Center
27. Zoo and Water Life Establishment in Al Ain
28. Mohamed bin Zayed Species Conservation Fund
29. Abu Dhabi Municipality
30. Al Ain Municipality
31. Western Region Municipality
32. The Center of Waste Management
33. The Center for Regulation of Transport by Hire Cars (Trans Ad)
34. Compensations Fund for Owners of Taxi Licenses
35. Zayed bin Sultan Al Nahayan Charitable & Humanitarian Foundation
36. Khalifa Bin Zayed Al Nahayan Charity Foundation
37. Emirates Foundation
38. Presidential Flight
39. Abu Dhabi General Services Company - Musanada
40. Office of the Brand Abu Dhabi
EDUCATION
SOCIAL & CULTURE
ENVIRONMENT &
AGRICULTURE

ECONOMIC
INFRASTRUCTURE
CHARITY
SUPPORT
*Other Government Agencies include:

Our Functions
Law number 14 for 2008 has defined ADAA’s responsibilities as follows:
• Audit the Government’s consolidated financial statements and Subject Entities’ financial statements.
• Review performance and risk; to fulfill this responsibility, ADAA may from time to time:
• Examine the efficiency, effectiveness and economy of the financial and operational activities of
Subject Entities.
• Ensure compliance of Subject Entities’ with laws, regulations, and rules and governance guidelines.
• Examine violations, which are investigated by Subject Entities.
• Provide advice and recommendations and perform other procedures and services to Subject Entities.
• Train and qualify UAE National university graduates and establish training centers accordingly.
• Conduct investigations into complaints referred to ADAA along with any other violations that come to
its attention.
1.3 OUR STRUCTURE
ADAA was structured based on its operating model that is most suitable to fulfill its strategic goals while
maintaining clear responsibilities within different departments. ADAA comprises of two main business groups,
the Financial Audit and Professional Regulations group (FAPR) and the Performance and Risk Assurance
group (PRA) as shown in the figure below:
10
• Financial Audit
• Financial Examination
• Financial Management
Assesment
• Compliance ssessment
• Internal Audit
Assessment
• Fraud Risk Assessment
Regulation &
Supervision
Auditing &
Accounting
Standards
Financial Audit Performance
Assurance Risk Assurance
Deputy Chairman
Chairman
Internal Audit
HR & Communication
Research & Knowledge
Assistance and Advisory Services
S E R V I C E S
S E R V I C E S
• Statutory Auditors
Appointment Rules
• Technical Advice
• Position papers
• Entity Performance
Assessment
• Program Performance
Assessment
Financial Audit &
Professional Regulation
Performance & Risk
Assurance
AdAA overview and Strategy
Legal Affairs &
Investigation
Chairman Office
Support Services

1.4 PRIORITIZING OUR WORK
Identifying and selecting high priority Subject Entities is based on the following criteria:
• Concerns raised by the Subject Entities’ stakeholders.
• The criticality of the Subject Entities’ role in achieving the Abu Dhabi policy and vision.
• The impact of the Subject Entities’ performance on the social, environmental or economical expectations of
the community or general public due to its mandate to service them in various sectors.
• The materiality and relative importance of an amount, transaction, investment, project or public fund or
resource allocated to or disbursed by the Government or a Subject Entity.
• The complexity of the Subject Entities’ operations, whereby it becomes vulnerable and is prone to a higher
degree of risk in different areas whether it to business, operations or financial reporting requiring ADAA’s
support to ensure effective risk management and corporate governance.
• Any emerging trends or factors that may improve government service delivery, including but not limited
to implementation of key policy initiatives in the government and environment and initiatives enhancing
transparency of the regulatory framework.
• The severity of performance challenges facing Subject Entities and hindering the achievement of their
strategies and objectives.
• The ownership structure of Subject Entities whereby government agencies are given top priority,
followed by commercially oriented companies owned by the Government depending on the percentage of
ownership and their significance to Abu Dhabi.
Criteria used to select and prioritize our work
Importance to
Abu Dhabi
Policy Agenda Concerns raised by
Stakeholders
Ownership Structure Materiality
Complexity of operations
Emerging trends or factors
which may improve
government service delivery
ADAA’s Work
Prioritization
Criteria
Performance Challenges facing
government or its entities
Impact of performance
challenges on the social,
environmental or economic
expectations of the
community or general public

1.5 OUR OUTCOMES
ADAA’s priorities are derived from its strategic goals and contribute towards achieving the desired outcome:
GOALS PRIORITIES OUTCOMES
GOAL 1
Promote
Governance,
Accountability
and
Transparency
1 Provide timely and high quality financial
assurance services.
2 Assist public entities to build effective
governance processes and environment.
3 Enhance reporting and stimulate significant
improvement in the provision and usage of
information.
GOAL 2
Enhance
Performance
4 ADAA’s stakeholders understand and accept
the role of ADAA and recognize the value
of ADAA’s people and services in contributing
to improving performance.
5 Provide high quality performance & risk
assurance services and tailored advisory
services to public entities.
6 Share knowledge and best practices
across public entities and support effective
communication.
7 Support the establishment and development
of an effective internal audit function in all public
entities.
GOAL 3
Maintain
and Promote
Leading
Practices
8 Adapt and maintain risk based assurance and
audit methodologies.
9 Identify and promote leading practices in
public entities.
10 Participate effectively in the regulation and
supervision of the audit profession.
GOAL 4
Develop Human
Capital
11 Attract and retain highly qualified
personnel within a working environment
that is recognized a workplace of choice.
12 Establish ADAA training center to develop
UAE Nationals.
12
• Relevant and reliable services that meet
stakeholders needs.
• Enhanced accountability and transparency
in the public sector.
• The public and the world are better
informed about accountability in Abu Dhabi
Government.
• Efficient and effective public sector.
• Sound governance and risk management
practices.
• UAE nationals are prepared to take
leadership positions in the public sector.
• Improved transparency and reliability of
financial reporting.
• Enhanced compliance with rules and
regulations.
AdAA overview and Strategy
Services
Reports
Outputs

1.6 OUR ACCOUNTABILITy, OUR GOvERNANCE
ADAA is committed to the highest standards of governance, corporate transparency, accountability and
performance and aims through this commitment at protecting and enhancing its stakeholders’ values.
To fulfill this commitment, ADAA has developed numerous policies and procedures that govern its practices
and activities as well as performance measures and corporate governance that ensure its independence and
accountability.
ADAA developed its accountability and governance framework that comprises of the aspects mentioned below:
• Strategic Planning Framework
• Performance Indicators
• Audit
• Ethical Standards
• Employee Retention and Remuneration
• Communication
1.6.1 STRATEGIC PLANNING FRAMEWORK
ADAA developed a Strategic Planning Framework based on its strategic priorities to guide its actions and
the provision of its services. This framework is constantly revisited and reviewed to ensure its validity and
relevance to the current needs of Abu Dhabi.
ADAA
MAnDATE
InITIATIvES
STRATEGIC GOALS
AnD
OvERALL STRATEGy
OUTCOMES
PRIORITIES OUTPUTS
vision
Mission
values
Services
KPIs
KRIs

1.6.2 PERFORMANCE INDICATORS
ADAA’s performance is measured based on a set of performance metrics to ensure the objectivity of these
measurements.
Benchmarking with renowned international supreme audit and accountability organizations, the below metrics
were developed:
Subject Entities Feedback
ADAA seeks feedback from its Subject Entities on the review process executed after the issuance of each
audit and assurance report. Subject Entities feedback is usually availed by an independent non-member of
the appointed audit team and is carried through a questionnaire and an interview process with the relevant
individual.
The feedback received constitutes an important guide to the effectiveness of existing practices and further
developments that may be required.
Quantity of Output Cost
Quality of Output Timeliness of Output
14
• Number of audit reports issued vs.
planned.
• Practice aids and guidelines issued.
• Percentage of audit recommendations
accepted for implementation.
• Quality assurance that reviewed audits
met auditing methodology and
standards.
• Results of client survey.
• Assignments completed within agreed
timeframe.
• Responsiveness to special requests
and examinations.
• Recording, monitoring and reporting
of full assignment costs.
• Adherence to budget and annual plan.
• Ad hoc vs. planned work.
• Cost and resource usage: full costs are
recorded, reported and analyzed.
AdAA overview and Strategy

1.6.3 AUDIT
ADAA’s financial statements are audited by an external Statutory Auditor on an annual basis. Ernst and young
were reappointed for the year 2009 financial statments Audit of a charge of AED 92,000.
In addition, ADAA will review its internal controls, including financial, operational and compliance controls to
ensure that its processes are in line with best practice, laws, rules and regulations.
1.6.4 ETHICAL STANDARDS
ADAA has issued a rigorous Code of Conduct safeguarding business and professional ethics and ensuring
that all ADAA employees understand and abide by this code of conduct, additionally a Compliance Officer was
appointed to ensure adherence to the code of conduct as well as taking the responsibility of establishing and
implementing an effective compliance program to prevent illegal, unethical, or improper conduct.
All ADAA employees took the below mentioned oath before the ADAA Chairman as per Article (9) of Law (14)
on the establishment of ADAA
“I swear by almighty God to be loyal to the Ruler of the Country, to honor the constitution and law, to work to
safeguard public funds, to perform my duties honestly and sincerely and to maintain the confidentiality of all
businesses”
1.6.5 EMPLOyEE RETENTION AND REMUNERATION
ADAA developed a remuneration policy and procedure for its employees as well as a performance
management system that will ensure fair evaluations of the employees’ performance and identify a clear
career path and progression plan for its employees.
ADAA employees are exposed to training programs and workshops that aim primarily at enhancing their
capabilities, skills, knowledge and competence to grow within their careers.
1.6.6 COMMUNICATION
ADAA considers communication a crucial and indispensable approach to achieve transparency with its
stakeholders; be it Subject Entities, general public or its own employees.
ADAA underwent a thorough branding exercise and re-launched its identity with its direct association to Abu
Dhabi Government through the usage of the Abu Dhabi Government Official crest adjacent to ADAA’s identity
logo and was the first organization that followed this association model in its logo.
Many communication mediums were identified and launched by ADAA, primarily online communication
through ADAA’s website that was launched mid 2009, allowing its stakeholders timely and sufficient access
to information, as well mailers that contain industry related information such as the IFRS Digest monthly
e-newsletter.
ADAA also conducts seminars, workshops and trainings that are beneficial to its Subject Entities and
employees whereby networking, awareness and knowledge sharing opportunities arise.
ADAA employees are constantly updated with the latest industry-related news, policies, procedures and
research through its intranet portal “ADAAcom” and mailers that include e-newsletters such as the “Global
Accountability and Transparency” monthly newsletter.

1.7 OUR PEOPLE
The ADAA team is ADAA’s most valuable asset as it comprises of dedicated top-tier professionals from multi-
cultural backgrounds sharing one vision, unified by the values that ADAA represent and aspire to the same
objectives.
Most ADAA employees have extensive experience and high qualifications in their respective fields where
professional qualifications such as the CPA, CIA and CMA are quite common.
To further enhance knowledge and qualifications, ADAA obliges its employees to obtain Continuing
Professional Education (CPE) in their profession and therefore facilitates them when possible.
1.7.1 LEARNING AND PROFESSIONAL DEvELOPMENT
In April 2009, ADAA announced the establishment of its training and development arm “ADAA Training Center”
partnering with international leading institutions and training providers to offer customized professional
programs to its employees.
The objective of these programs is to enhance profession-based knowledge, help employees acquire the
required skills-set to excel in their careers and to create a new generation of knowledgeable and accountable
Emirati professionals, allowing them to participate in the growth and success of ADAA and the Emirate of Abu
Dhabi.
1.7.2 SECONDMENTS
Secondments expose employees to different operating models and structures teaching them how to adapt to
different environments, increasing their knowledge, expanding their experience and diversifying their skills
as employees are usually seconded to Subject Entities, Statutory Auditors, peer organizations and others on
project basis or a pre-identified timeframe.
Secondments are part of ADAA’s Talent Management project.
1.7.3 NATIONAL DEvELOPMENT PROGRAM
ADAA realizes that there is a lack of professional Emiratis in this field and to address the vitality of having
qualified Emiratis in these positions, a program has been created to attract Emirati fresh graduates to join
ADAA and it includes trainings and workshops to equip them with the required skills, ability and knowledge
to succeed.
16 AdAA overview and Strategy

ADAA’S
Output
Groups

ADAA’S Output Groups

20 ouput Groups
PART
ADAA’S OUTPUT GROUPS
2.1 FINANCIAL AUDIT AND EXAMINATION
ADAA’s statutory responsibilities include the audit of the Government’s consolidated financial statements
and financial reports issued by Subject Entities to ensure that Subject Entities’ financial statements are free
from material misstatements and that management establishes robust processes and controls to ensure
reasonable accuracy of these statements.
It is ADAA’s policy to participate in the regulation and supervision of the audit profession and assist in
developing best practices that parallel internationally acceptable practices.
ADAA provides 3 types of services under Financial Audit and Examination, as mentioned below:
• Financial Audit
• Financial Examination
• Financial Management Assessments
2.1.1 FINANCIAL AUDIT
ADAA audits the consolidated financial statements of the Government and expresses an opinion on these
statements, ADAA also reviews the financial statments of the Goverment Departments. In addition,
ADAA conducts Special Purpose Audit Services on specific components of the Subject Entities’ financial
statements.
ADAA’s financial audit procedures are based on the International Standards on Auditing (ISA) issued by the
International Federation of Accountants (IFAC).
2.1.2 FINANCIAL EXAMINATION
ADAA conducts Financial Examination of Subject Entities who, in accordance with their legal framework,
appointed external / Statutory Auditors to audit their financial statements. Financial Examination involves,
among other things, a thorough analysis of audited financial statements and assessment of the quality of
work performed by the Statutory Auditors of Subject Entities in accordance with internationally recognized
auditing and accounting standards. The Financial Examination Methodology was derived and confirmed with
the pronouncements and methodologies of the IFAC and the American Institute of Certified Public Accountants
(AICPA). The procedures set out in the Financial Examination Methodology aim to evaluate whether the audit
of the financial statements was performed and reported in conformity with ISA. This process enables ADAA to
decide whether it can rely on the work of these Statutory Auditors or perform additional examination work, if
deemed necessary, to discharge its statutory responsibilities.

The following diagram illustrates our Financial Examination Methedology:
Issue ADAA Financial Examination
Report to the Chairman of the
Subject Entity
REPORTING
EXECUTION
PLANNING
Meet with Statutory Auditor to
discuss list of queries
6
Prepare draft letter of
comments and incorporate
Statutory Auditor formal
responses
7
Prepare list
of queries
5
Receive financial
statements and perform
financial analysis
1
Review working papers
of Statutory Auditor
4
Issue
Engagement
Letter
2
Plan the
assignment
3
9 8
Issue final letter of comments
to Statutory Auditor

2.1.3 FINANCIAL MANAGEMENT ASSESSMENT
ADAA recently introduced the Financial Management Assessment (FMA) process which provides an
independent review and comprehensive understanding of the Financial Management capabilities within
Subject Entities.
For FMAs, ADAA will place emphasis on strengthening the role of the Financial Managment function within
Subject Entities and continuously support the establishment and improvement of Financial Managment
functions in all Subject Entities.
These efforts should result, after due and vigorous assessments, in the foundation of a strong Financial
Managment function capable of delivering its services in a manner aligned with the objectives of the
Subject Entity.
2.2 PERFORMANCE AND RISK ASSURANCE
ADAA is mandated to provide assurance that Subject Entities’ activities and resources are managed and
utilized efficiently, effectively, ethically and economically as well as in compliance with the relevant laws, rules,
regulations and governance guidelines.
ADAA’s Performance and Risk Assurance group will also assist in sharing knowledge and best practices
across functions and entities in the Government, assessing their risk profile, assisting in building effective
Internal Audit and Governance processes and implementing an effective Anti-Fraud Program.
ADAA provides 4 types of services under Performance and Risk Assurance as mentioned below:
• Performance Assessment
• Internal Audit Assessment
• Compliance Assessment
• Fraud Risk Assessment
2.2.1 PERFORMANCE ASSESSMENT
ADAA assesses the performance of entities or programs and initiatives delivered by one or more entities, and
report on Government-wide issues or topics of interest.
Performance Assessments follow best practices for diagnosing issues and developing recommendations using
frameworks developed by ADAA. Each assessment consists of five discrete steps as shown below.
22
Set
assessment
criteria
Collect data and
information
Develop key
observations
Derive key
conclusions
Develop
recommendations
ouput Groups

ADAA conducts two types of Performance Assessments:
Entity Performance Assessments (EPAs): assess whether an entity is making progress towards meeting its
mandate in an effective, efficient, ethical and economical manner. Specifically, an EPA reviews the entity’s
mandate to understand what an entity is required to achieve.
Program Performance Assessments (PPAs): provide a substantive review of high profile initiatives and projects
involving one or more Abu Dhabi Government entities. The focus of a PPA is on evaluating if program or
initiative objectives are being met in an effective, efficient, ethical and economical manner.
2.2.2 INTERNAL AUDIT ASSESSMENT
ADAA emphasizes on strengthening the role of Internal Audit within Subject Entities. The approach aims to
provide reasonable assurance that Audit Committees and Internal Audit units at Subject Entities perform their
work in accordance with their Charter and Code of Ethics and leading practices.
An Internal Audit Assessment provides an independent review and comprehensive understanding of the
Internal Audit capabilities within Subject Entities.
The Internal Audit Assessment will follow the Institute of Internal Auditors (IIA) best practices for assessing
and developing Internal Audit functions. ADAA uses a detailed assessment framework developed Internally.
Our assessment methodology is based on measuring the internal audit function on a series of 6 elements
including the Audit Committee, Organization, Methodology, Operation, Technology and Value.
2.2.3 COMPLIANCE ASSESSMENT
Compliance Assessments confirm that specific laws and regulations have been adhered to by Subject Entities.
ADAA will assess compliance with laws and regulations that have a direct impact on the level of services being
provided by the Government to the general public. Compliance Assessments aim to achieve the following:
• Determine the degree of consistency in applying laws and regulations by Subject Entities.
• Evaluate instances of non-compliance to take the appropriate action.
2.2.4 FRAUD RISK ASSESSMENT
Conduct Fraud Risk Assessments, independent reviews, provide detailed analysis together with
recommendations necessary to improve fraud risk management within all Subject Entities.
ADAA assesses Subject Entities’ vulnerabilities to fraud, corruption and misconduct (‘Fraud’) and their ability
to mitigate fraud risks across different organizational elements. The purpose of a Fraud Risk Assessment is
to identify, assess and address potential fraud risk exposures. During the assessment, ADAA will assess the
impact of fraud risk and will provide the management of the Subject Entity with information to ensure that all
necessary preventative measures are taken to mitigate the occurrence of fraud. The Fraud Risk Assessment
process raises awareness and educates Subject Entities’ employees in potential fraud risks that may impact
their roles and responsibilities and how to respond.

Anti-Fraud Program
ADAA will assist the Government to establish and implement a world-class antifraud program.
The following diagram illustrates the overall Anti-Fraud Program:
ADAA will support entities to develop and implement the following:
• Assist to develop a fraud control policy for each entity.
• Conduct Fraud Risk Assessments.
• Train employees on the fraud control policy and code of conduct.
• Assist in the development and implementation of the confidential disclosure systems.
2.3 ASSISTANCE AND ADVISORY
ADAA provides advice and assistance to the Executive Council, Members of the Executive Council, Subject
Entities and other stakeholders to assist them in their work to improve the performance and accountability
and to ensure that Subject Entities meet preset objectives. This can be achieved through providing any of our
existing services or through tailored advisory services or through secondments of our employees.
Amongst the Assistance and Advisory Services, ADAA contributes through its Accounting and Auditing
Standards Services to the confidence in financial reporting and corporate governance in the Emirate of
Abu Dhabi and the U.A.E. by enhancing the application and understanding of financial reporting and auditing
standards among stakeholders. Furthermore, ADAA enhances coordination and cooperation with regulatory
bodies in the UAE/ Federal Government to establish a set of regulations to improve the governance of the audit
profession through its Regulation and Supervision Services.
Investigations
Internal and
External
Awareness
Integrated
Policy
Fraud Scenario
Assessment
Internal and
External
Reporting
24 ouput Groups

2.4 SPECIAL EXAMINATIONS
ADAA investigates violations discovered or refered to it. ADAA also tracks fraud, corruption and misconduct in
Subject Entities to ensure public money is safe guarded.
Special Examinations are conducted in accordance with ADAA approved internal procedures and may involve
liasions with Local Government, external consultants, legal counsel and law enforcement agencies.
2.5 ADAA CENTER OF EXCELLENCE
ADAA established a Center of Excellence to provide in-depth knowledge and awareness of leading practices
within the Government and internationally whether it is industry-specific or by departmental functions.
ADAA Center of Excellence has designed and initiated programs, activities and events that have facilitated
knowledge sharing and development throughout its Subject Entities.
ADAA Center of Excellence initiatives and activities include:
• Practice Guides in seeking to improve public administration, ADAA services identify better practices, which
may then be incorporated into practice guides for use throughout the public sector.
• Assist audit committees and internal audit units at Subject Entities in establishing their internal
audit and governance functions through the transfer of knowledge and methodologies.
• Technical advice and issuing position papers to all Subject Entities relating to accounting and financial
reporting standards as required and requested.
• IFRS Digest, ADAA issues a monthly e-newsletter titled “IFRS Digest” to promote stakeholders’ awareness
of the International Financial Reporting Standards (IFRS) in a way to support consistent application of
accounting standards across Subject Entities.
• Secondments of ADAA employees to improve their skills-set, knowledge and help them gain experience in
different industries.
• Recruitment support of Internal Audit professionals for Subject Entities.
• Installation and upgrades of the e-Hawkama Portal that serves as a tool to support the complete internal
audit process.
• Fraud Scenario Assessment (FSA) installation in the e-Hawkama Portal in Subject Entities and provide
user-trainings.
• Internal Audit Seminar where Heads of Internal Audit in Subject Entities meet to discuss process, internal
controls, policies, issues and challenges as well as knowledge sharing of best practices and developments.

In 2009, ADAA Center of Excellence introduced two new initiatives as mentioned below:
2.5.1 RESEARCH AND KNOWLEDGE
The Research and Knowledge function is a new capability being established at ADAA. In line with Abu Dhabi
policy agenda of developing a sustainable knowledge based economy, the objective of the function is to create,
acquire and transmit knowledge more effectively across all areas of ADAA’s operations as well as contribute
towards supporting the research and knowledge needs and capabilities of Subject Entities.
2.5.2 TRAINING AND DEvELOPMENT
In 2009, ADAA established its training and development arm the “ADAA Training Center” to address an
important aspect of its overall mandate and that is to train and develop UAE National Graduates.
The “ADAA Training Center” has initiated partnerships with leading institutions and training providers to offer
customized professional programs such as the Certified Public Accountant (CPA) examination preparation
course and Certified Internal Auditor (CIA) examination preparation course to UAE Nationals, to help them
acquire the necessary skills and knowledge to advance and excel in their careers and presume leadership
roles and become key components in the growth and success of the Emirate of Abu Dhabi.
Certified Public Accountant (CPA) Program
The CPA Program is a world-class professional education program for leadership careers in auditing,
accounting and business. Providing a study of the professional attributes of ethics and integrity, the CPA
Program inducts the UAE National Graduates into the rewarding world of practicing professionals. While
ensuring that CPAs are highly educated technically and professionally, the program also continuously seeks
professional accounting education within the contemporary and interconnected contexts of business strategy,
decision-making and leadership, and corporate governance.
Certified Internal Auditors (CIA) Program
Certified Internal Auditor (CIA) is a designation sponsored by the Institute of Internal Auditors (IIA). The CIA
Program at the ADAA Training Center is for the UAE National Graduates to have the professional ability to
efficiently control and identify risks, and examine remedies with respect to the current practice of internal
auditing as well as helping them understand the 21st century management principles. Moreover, worldwide
recognition of the CIA designation gives members the opportunity to practice globally in the field of internal
auditing and will play a vital role in the progression of the profession.
ADAA Training Center also provides related competency-based trainings, related workshops, seminars and
conferences.
26 ouput Groups

ADAA 2009
Report and
2010 Work Plan

ADAA 2009 Report
and 2010
Work Plan

30
PART
2009 REPORT AND 2010 WORK PLAN
3.1 OUR 2009 HIGHLIGHTS
• Issued 88 Financial Audit and Examination reports:
12 Financial Statements Audits and Reviews.
76 Financial Examinations.
• Issued 79 Performance & Risk Assurance reports:
14 Performance Assessment.
34 Internal Audit Assessment.
24 Compliance Assessment.
7 Fraud Risk Assessments.
• Issued a number of Assistance and Advisory and Special Examination reports.
• Established ADAA’s training and development arm “ADAA Training Center” to develop and train UAE
Nationals in ADAA and Subject Entities.
• ADAA was the 1st organization in the Middle East to become a member in the International Forum for
Independent Audit Regulators (IFIAR).
• Performed an inspection of Statutory Auditor working papers for the 1st time in the UAE to enhance
the credibility of financial statements and reinforce public trust.
• Developed the Statutory Auditors Appointment Rules (SAAR), governing and strengthening the process
of the appointment of a Statutory Auditor by any Subject Entity.
• Assisted 10 Subject Entities in recruiting their heads of internal audit.
• Successfully developed ADAA’s working methodologies for its services.
• Launched the new identity and logo of ADAA and its Training Center and established its visual presence in
Abu Dhabi specifically and the UAE generally. ADAA was the first entity to use the Abu Dhabi Government
crest alongside its logo to resemble its official authority and link to the Government of Abu Dhabi.
• Organized the 1st Anti-Fraud Seminar with the participation of Global representatives from the Big-Four.
• Initiated contact with Subject Entities and held its first Internal Audit Seminar opening yet another
communication channel with Subject Entities, sharing knowledge and experience.
• Started issuing the 2nd volume of the IFRS digest, a monthly IFRS newsletter to communicate
developments, interpretations and advices to the Subject Entities.
• ADAA established the Center of Excellence and the Research & Knowledge function to create, acquire and
transmit knowledge more effectively across all areas of ADAA’s operations.
2009 report and 2010 work Plan

3.2 OUR FOCUS IN 2010
• Execute 2010 annual plan and deliver a range of timely and relevant services on issues that add value to our
stakeholders.
• Assist the Government in establishing our recommended integrated governance framework.
• Continue assisting Public Entities to build their capabilities in internal audit, business and fraud risk
management and governance.
• Issue the audit report on the consolidated financial statements of the Government within the time- frame
specified in the Financial Management Law.
• Issue SAAR and monitor compliance.
• Strengthen the role of the financial managment function within Subject Entities through Introducing ADAA
new service, the Financial Management Assessment (FMA), which provides an independent review and
comprehensive understanding of the Financial Management capabilities within Subject Entities.
• Leverage our services to promote the work of ADAA and improve stakeholders’ understanding of what
we do.
• Monitor our outputs and outcomes and related performance indicators to ensure they continue to support
our directions.
• Promote further initiatives to improve strategies for the retention and attraction of staff, including a more
structured training and professional development.
• Continue our engagement with national and international auditing bodies through seeking memberships
of appropriate organizations.
• Enhance efficiency by providing our employees with easy access to high quality research outputs, tools and
expertise that they can leverage for their work.
• Develop mechanisms to allow the effective capture and organisation of knowledge.

Output
Group Assessment Type
Actual 2009 Target 2010
number of
Reports
*Cost
AED '000
number of
Reports
*Cost
AED '000
1 Financial Audit & Examination 88 19,900 107 31,800
2 Performance & Risk Assurance 79 37,200 95 36,100
3 Assistance & Advisory NA 9,200 NA 15,300
4 Special Examinations NA 1,800 NA 2,500
5 ADAA Center of Excellence NA 6,300 NA 17,500
Total 167 74,400 202 103,200
3.3 SUMMARY OF ADAA OUTPUTS - 2009 ACTUAL
VS. 2010 TARGETS
The following table provides a summary of ADAA’s 2009 actual vs. 2010 targets:
32
ADAA Center
of Excellence
ADAA Center
of Excellence
2009 2010
35% 50%
12%
15%
2% 2%
Performance &
Risk Assurance
Performance &
Risk Assurance
Assistance
and Advisory Assistance
and Advisory
Special
Examination Special
Examination
9% 17%
27% 31%
Financial Audit
& Examinations
Financial Audit
& Examinations
2009 report and 2010 work Plan
* Costs mentioned above are based on pre-determined rates for ADAA employees inclusive of payroll and overhead costs.
The following diagram illustrates ADAA services by 2009 actual cost vs. 2010 target cost:

Analysis of ADAA’s Output Groups 1 and 2 By Type of Subject Entity
The following table illustrates the number of reports by type of Subject Entity:
2009
Actual
SOE
Subsidiaries
SOE
Courts
Government
Agencies
Other
Government
Agencies
Government
Departments
27%
2%
14%
20%
19%
18%
Entity Type # of
Entities
Financial Audit &
Examination
Performance & Risk
Assurance
TOTAL
2009
Actual
2010
Target
2009
Actual
2010
Target
2009
Actual
2010
Target
1 Government
Departments 4 9 9 14 8 23 17
2 Government Agencies 19 9 18 24 31 33 49
3 Other Government
Agencies 40 8 14 24 47 32 61
4 SOE 20 16 22 15 7 31 29
5 SOE Subsidiaries 150 43 42 2 2 45 44
6 Courts 7 3 2 - - 3 2
TOTAL 240 88 107 79 95 167 202
2010
Target
SOE
Subsidiaries
SOE
Courts
Government
Agencies
Other
Government
Agencies
Government
Departments
22%
1%
9%
24%
30%
14%

3.4 OUTPUT GROUP 1: FINANCIAL AUDIT AND EXAMINATION
This output group focused on the financial audit of the Government of Abu Dhabi accounts and financial
reports examinations of the Subject Entities based on its own uniquely developed methodology, these outputs
are the result of one of the following services:
• Financial Audit.
• Financial Examination.
3.4.1 FINANCIAL AUDIT
ADAA completed its audit of the consolidated financial statements of the Abu Dhabi Government for the
year ended 31 December 2008 and issued a clean opinion within the deadline specified in the Financial
Management Law.
These Financial Statements were prepared by the Department of Finance on a cash basis in accordance with
International Public Sector Accounting Standards (IPSAS). ADAA conducts its financial statements audits in
accordance with International Standards on Auditing (ISA).
In addition, ADAA performed review engagements on the financial statements of Government Departments in
accordance with the International Standards on Review Engagements (ISREs) issued by IFAC.
3.4.2 FINANCIAL EXAMINATION
During 2009, ADAA examined 76 independent audit reports and work done by the Statutory Auditors, appointed
by Subject Entities to audit the financial statements of these entities for the year ended 31 December 2008
The financial statements and audits covered by our examination during 2009 were selected in accordance with
the prioritization criteria developed by ADAA.
The objectives of financial examination are to ensure, in all material respects, the quality of audit services
performed by the Statutory Auditor over the financial statements of Subject Entities and, accordingly, enhance
users’ confidence in the accuracy and transparency of financial statements and financial reporting at Subject
Entities.
The opinions a Statutory Auditor can express on a set of general purpose financial statements are:
• unqualified opinion (Clean Opinion)
• unqualified opinion (Emphasis of Matter)
• qualified opinion
• adverse opinion
• disclaimer
34 2009 report and 2010 work Plan

There are no deadlines for Subject Entities to have the financial statements signed. However, there is a
deadline of 30 june for issuing the Consolidated Financial Statements of Abu Dhabi Government that are
audited by ADAA.
The following is an Analysis of the dates on which most Subject Entities’ Financial Statements were approved
and Audit Opinion dated:
ADAA’s Financial Examination Comments Summary
Comments arising from our financial examination were communicated to those charged with governance at
Subject Entities and separately to Statutory Auditors for future improvements, implementation and follow up.
Our examination highlighted a number of identified areas for improvements in the audit process and financial
statements of Subject Entities, including;
• Documentation of the audit procedures in the Statutory Auditors audit files.
• Reliance on management’s written representations – insufficient professional scepticism.
• The role of group auditors.
Financial Statement
approval date
Audit Opinion date
jan
0
5
10
15
20
25
30
35
40
Feb Mar Apr May jun After jul
Audit Opinion number
Unqualified (Clean Opinion) 142
Unqualified (Emphasis of Matter) 4
Other 36
Total Reports Issued 182
Financial Statements not issued at the date of this report 58
Total 240
The following is a summary of financial statements audit reports issued and outstanding in 2009:

• Materiality computation.
• Disclosures required by International Financial Reporting Standards to enhance users understanding of the
financial statements.
• The valuation of assets and impairment reviews.
• Audit of accounting estimates.
• Basis for sample selection for audit testing.
• Independent third party confirmations and follow up process.
• Communication with those charged with governance.
• Quality of audit evidence.
• Using the work of experts and service organizations.
• Timeline for issuing audited financial statements.
• Management’s reliance on the Statutory Auditors for financial reporting and accounting matters.
All examination comments were set out in detail in our examination reports sent to Subject Entities to ensure
implementation and improvement in the future. Our examination comments reports on each examination
engagement included the responses and explanations provided by the Statutory Auditors and our final
conclusions and views on each examination comment.
Analysis of Examination Comments
Our comments are classified into “Significant improvement required”, “Needs improvement” and “Needs
improvement- Specific exceptions noted” based on their nature and significance to the financial statements of
Subject Entities and Statutory Auditor audit process.
Our Financial examination reports included 687 comments classified as follows:
36
497
67
123
Significant improvement required
Needs improvement
Needs improvement - Specific exceptions noted
2009 report and 2010 work Plan

Significant Improvement Required
67 comments were classified into this category. These comments should be the immediate focus of the Subject
Entities’ management and their Statutory Auditors since they are significant to the financial statements of the
Subject Entities.
Needs Improvement
A predominant number of our 497 comments in this category focused on audit quality resulting from
incomplete documentation of audit procedures performed, such as consideration of fraud risks and calculation
of sample sizes. These comments highlight scope for improvement relating to audit procedures applied by the
Statutory Auditors. If such procedures were performed, as entailed in the International Standards on Auditing
or other applicable standards, a potential adjustment to the Subject Entities’ financial statements might have
been noted.
Needs Improvement – Specific Exception Noted
123 comments were raised highlighting specific exceptions to the financial statements audit process and/or
the management’s financial statements closing process. Had these exceptions been noted during the audit
process, they might have resulted in an adjustment or a proposal of an adjustment to the audit process and/or
the financial statements of the Subject Entities.
Generally, these comments related to areas including, but not limited to, specific accounting treatments,
financial statements presentation and disclosures, and insufficient audit procedures in areas such as related
parties, subsequent events, contingent liabilities, estimates, fair values and laws and regulations.
An analysis of the number of audit reports by Statutory Auditor and comments raised by ADAA is presented below:
Statutory
Auditor
number
of Reports
Examined
Significant
improvement
required
needs
improvement
needs
improvement-
Specific
exceptions noted
Total
Comments
Firm 1 28 20 187 58 265
Firm 2 25 29 186 40 255
Firm 3 15 14 92 14 120
Firm 4 7 4 25 9 38
Firm 5 1 - 7 2 9
Grand Total 76 67 497 123 687

38
3.5 OUTPUT GROUP 2: PERFORMANCE AND RISK ASSURANCE
This output group provides assurance on the efficient, effective, economic and ethical utilization of resources
by Subject Entities and its compliance with the laws, rules, regulations and governance guidelines.
In 2009, we issued 79 Performance and Risk Assurance reports relating to Government-wide issues, functional
areas and single subjects of significance for Subject Entities. This group includes the following services:
• Performance Assessment
• Internal Audit Assessment
• Compliance Assessment
• Fraud Risk Assessment
3.5.1 PERFORMANCE ASSESSMENT
During 2009, ADAA issued 14 Performance Assessments reports that varied between a partial assessment for
a function within the Subject Entity or the Subject Entity in full.
It is worth mentioning that all Subject Entities and their employees have been of great assistance to ADAA
during performance assessments, giving recommendations and solutions that serve public interest.
Below are summaries of key Performance Assessments that were conducted in 2009 with a brief description
of the scope of assessment conducted and recommendations by ADAA:
Government Entities Governance
This assessment reviewed the existing governance framework related to Public Entities.
Recommendations
ADAA cooperated with the Ministry of Presidential Affairs, the General Secretariat of the Executive
Council, Department of Finance and other related entities to create a unified regulation framework for
Subject Entities and a classification of Public Entities based on the roles and responsibilities of each entity
to ensure the creation of a comprehensive governance framework to standardize governance components
within each classification.
In addition, general principles relating to the Government, financial system and civil service were agreed
to guarantee standardizing general principles and necessary entity delegation to perform its duties, roles
and responsibilities.
Abu Dhabi Tourism Authority (ADTA) Performance Assessement
This assessment evaluated whether ADTA is making progress towards its mandate and strategic vision in an
effective, efficient, and economical manner.
2009 report and 2010 work Plan

Etihad Airways Performance Assessement
This assessment evaluated Etihad’s performance by looking at the effectiveness of its strategy and the
efficiency and economy of its operations, and provide improvement recommendations.
Recommendations
ADAA recommended the following:
1. Address demarcation of the roles and responsibilities of all government entities related to the Municipal
Services System.
2. Focus on the legally mandated role of “Regulator and Enabler”, allowing municipalities full control over
operational issues.
3. Enable municipalities by providing support in critical areas such as development of building codes.
In addition, ADAA recommended the following to address organizational development:
1. Strengthen the internal performance management system to provide visibility and encourage
accountability.
2. Develop systems for encouraging and rewarding employee performance.
3. Provide appropriate staffing for critical functions.
Department of Municipal Affairs (DMA) Performance Assessement
This assessment evaluated whether DMA is making progress towards its mandate and strategic vision in an
effective, efficient, and economical manner.
Recommendations
ADAA recommended the following:
1. Improve internal business intelligence capabilities to support research needs.
2. Enhance understanding of tourist preferences and development of products and events to address
them.
3. Develop more structured and frequent interaction channels with other related Government entities
4. Internal use of knowledge management systems to address loss of knowledge due to employee
turnover.
5. Increased departmental visibility on budgets and improved financial monitoring.

Recommendations
ADAA recommended the following:
1. Board of Directors discussions to clarify prioritization between growth, quality, and profitability
mandates due to current financial changes.
2. Sustain efforts to define and protect Etihad’s competitive positioning.
3. Focus on actively addressing operational risks such as availability of required airport infrastructure.
In addition, ADAA recommended the following to address organizational development:
1. Implementation of an effective manpower planning system.
2. Creation of linkages between organizational and employee performance and incentive programs.
3. Frequent progress and effectiveness review of business processes under development.
Recommendations
ADAA recommended the following:
1. Establish a Stakeholder Advisory Committee, comprising of the key operational stakeholders, to
manage infrastructure requirements and high level variation requests.
2. Merge the infrastructure development body, the Supervision Committee for the Expansion of the
International Airport, into the airport operator, the Abu Dhabi Airports Company, as its development
division to promote internal accountability for airport requirements and schedule adherence.
Recommendations
To ensure HR is set up to effectively support Government needs, ADAA recommended:
1. Setting unified civil service system that will outline general principles for Human Resources in
Government Agencies.
2. The system should set unified rules and guidelines for the Human Resource function of all Government
Agencies (e.g. Job evaluation methodology, application of minimum requirements, standard reporting
lines and common systems) and further analysis includes organization capability.
Abu Dhabi Government Human Resources
This review base lined the Human Resources within 23 Government Agencies. The review focused on
the following: Profiling Government employees (gender, nationality); Gathering HR Staff experience and
qualifications; Identifying HR systems used; and Outlining the different policies, procedures and salary scales
that exist within Government Agencies.
Abu Dhabi International Airport Expansion
This assessment evaluated whether the program of works necessary to expand the capacity of Abu Dhabi
International Airport is conducted appropriately to ensure the effective, efficient, and economic use of public
resources.
40 2009 report and 2010 work Plan

Recommendations
ADAA recommended the following:
1. Develop a SOE legal framework, standardizing reporting and governance requirements.
2. Establish an SOE Oversight Body to act as the shareholder representative on behalf of the Abu Dhabi
Government.
3. Standardizing roles and responsibilities of the boards of directors and establishing a mechanism to
standardize rewards and benefits system.
Recommendations
ADAA recommended the following:
1. Expediting the process of establishing the Bus Office as a standalone commercial entity to provide it
with both required operational flexibility and status to coordinate with other stakeholders in delivering
the bus service.
2. Review and upgrade of project plans for the bus transport to include the various milestones and phases
of the project, interdependencies between tasks, and properly developed lead times for each activity
using techniques such as the critical path method.
3. Reviewing the gaps observed compared to recognized benchmarks and developing initiatives to
implement service improvement recommendations.
4. Planning procurement activities ahead of time.
Governance and Oversight of State Owned Enterprises (SOEs)
This assessment evaluated the current governance arrangements and financial reporting of Abu Dhabi SOEs.
Abu Dhabi City New Bus Project
This assessment evaluated the effectiveness, efficiency, and economy of the New Bus Project to verify if
achievements are in line with the overall strategy for public transport for Abu Dhabi.

Recommendations
To address the shortcomings identified in the BCM Current State Assessment, we recommended the
following:
1. Establishment of a mandated program to implement business continuity into all Public Entities.
2. Development of the Abu Dhabi BCM Policy and standard (the “BCM Standard”) to ensure management
of risk, implementation of resilience measures, establishment of a safety culture.
3. Creation of a common severity assessment and escalation framework to deal with and manage
Incidents from Entity up to Federal level.
4. Development of supporting infrastructure including a Center of Excellence and IT and staff recovery
capabilities.
Recommendations
ADAA recommended the following:
1. Expediting efforts to complete ADM organizational restructure process.
2. Initiation of a corporate turn-around to address organizational misalignments and capabilities.
3. Allowing field Municipal Offices to provide services as a “one-stop shop”.
4. Developing long-term planning capabilities to match provision of municipal services with Abu Dhabi’s
growth needs.
Business Continuity Management (BCM)
This initiative assessed a cross section of 14 Subject Entities to ascertain the indicative level of maturity of
BCM and Incident/Crisis Management across the Abu Dhabi Government.
Abu Dhabi Municipality (ADM) Performance Assessement
This assessment evaluated whether ADM is making progress towards its mandate and strategic vision in an
effective, efficient, and economical manner.
42 2009 report and 2010 work Plan

3.5.2 INTERNAL AUDIT ASSESSMENT
During 2009, ADAA issued 34 Internal Audit Assessment reports; this was the first time internal audit
functions of Subject Entities get audited. The purpose was to identify gaps in performance and areas for
improvement to bring the internal audit role to meet benchmark practices.
Internal Audit functions were assessed on a series of 6 elements: Audit Committee, Methodology,
Organization, Operations, Technology and Value.
Internal Audit Assessment Reports Summary
ADAA issued 718 recommendations to enable Subject Entities on the provision of reasonable assurance on the
control environment and the enhancement of the governance structure.
In line with ADAA methodology, the final results of the assessment of internal audit functions at Subject
Entities are presented by element along with the final score and key observations noted during the
assessment.
The graph below recaps the distribution of recommendations by each of the elements:
Out of the 34 Subject Entities assessed, 19 Subject Entities met passing requirement based on the criteria
established by ADAA.The following figure shows the result of the internal audit assessment conducted in 2009:
Pass
Not Pass
44% 56%
Operations
number of Recommendations
by Each Element
Organization
Audit Committee
Value
Technology
Methodology
281
133
116
97
52
39

3.5.3 COMPLIANCE ASSESSMENT
During 2009, ADAA issued 24 Compliance Assessment reports looking into the adherence of Subject Entities to
specific laws and regulations.
Below are summaries of the Compliance Assessments that were conducted:
• non Capital Procurement: This compliance assessment covered 17 Subject Entities and analyzed the
governance, practices, and performance of procurement functions within the selected entities and the
adherence to the laws and regulations governing procurement.
• Land Allocation: This assessment covered the 3 municipalities and analyzed the governance of land
allocation and the adherence to the laws and regulations governing land allocation processes.
• Building Permits: This assessment covered the 3 municipalities and analyzed the governance of building
permits and the adherence to the laws and regulations governing building permits processes.
Some of these compliance assessments led to discovery of violations that were further investigated by ADAA
and resulted in disciplinary action against responsible individuals.
44
3.5.4 FRAUD RISK ASSESSMENTS
During 2009, ADAA conducted 7 Fraud Risk Assessments and independent reviews and provided detailed
analysis together with recommendations necessary to improve systems policies, procedures and processes for
the Subject Entities.
ADAA developed an Anti-Fraud Program that was piloted in several Government Departments and was
introduced to all Subject Entities during an Anti-Fraud Seminar where global representatives from the Big-
Four audit firms were invited to participate in a panel discussion. This event was commended by participants
and attendees as it provided them with a wealth of knowledge and was considered a great opportunity to
network and share experiences.
“It was a delight and honour to present at the Antifraud seminar. As I mentioned in my own brief talk, I was very
impressed with the clear vision for the Government of the country and the resulting strategy which you are now
implementing ... be brave!”
Adam Bates – KPMG Global Forensic Chairman
“I would like to thank you for your invitation to the wonderful seminar, it was so beneficial to me, and information
discussed in the seminar were relevant to the objectives of our Center in supporting implementation of best practices in
corporate governance within organizations in Abu Dhabi and UAE”.
Khalid Deeb, Director General of the Abu Dhabi Center for Corporate Governance
3.6 OUTPUT GROUP 3: ASSISSTANCE AND ADvISORy
This output group provides Subject Entities with Assistance and Advisory services in different areas and in
various ways.
2009 report and 2010 work Plan

Below is a summary of significant Assistance and Advisory services provided to Subject Entities during 2009:
Secondments and Recruitment
During 2009, ADAA provided Subject Entities with expertise and professionals through seconding its own
employees to support establishment of Internal Audit functions at 6 Subject Entities. ADAA also supported
recruitment of 10 internal audit staff for Subject Entities.
Application of IFRS and Technical Advice
ADAA provided technical advice on issues relating to the application of the International Financial Reporting
Standards covering subjects relating to measurement and disclosure of financial instruments, Business
Combinations, impairment of Goodwill, Recognition of Government Contributions and transfers of resources,
applicability of International Financial Reporting Standards, operating and financial leases and loans from
parent to subsidiary with no repayment terms.
Statutory Auditors Appointment Rules (SAAR)
During 2009, ADAA finalised SAAR after a rigorous consultation process that included various Subject Entities,
Statutory Auditors and the public. SAAR was circulated as an Exposure Draft prior to its finalization and ADAA
considered and incorporated many of the verbal and written comments received when drafting the final SAAR.
In accordance with Law Number (14) of 2008, SAAR must be applied by Subject Entities whenever the Subject
Entities recommend the appointment or reappointment of Statutory Auditors for their financial statements
audit.
SAAR was developed to eliminate the judgmental factors influencing the selection of Statutory Auditors,
make sure the audits of ADAA Subject Entities are being performed by the Statutory Auditors having the
highest expertise and resources needed to complete the audit with best quality and at same time efficiently,
and ensure that the Statutory Auditors are being fairly compensated for the audit services performed.
SAAR require Statutory Auditors to have at least one UAE national part of the audit team.
SAAR shall be enforced on all Subject Entities beginning of 2010 and has been published in the Official Gazette
of the Emirate of Abu Dhabi.
State Owned Enterprises (SOEs) Combined Financial Statements
ADAA accumulated and combined the results of all SOEs financial position as at 31 December 2008, with
comparatives. The results and financial positions of the SOEs are presented by allocating them into similar
sectors, which results in indicating how each sector performed and its progression towards the shift from Oil
revenues reliance.
Family Development Foundation (FDF)
ADAA evaluated FDF’s progress towards its mandate and strategic vision in an effective, efficient, and
economical manner and the feasibility of its progression plans; based on a request by FDF’s Secretariat Board.

46
Building Maintenance
The General Secretariat of the Executive Council requested ADAA to review operational and financial Building
Maintenance practices for Government buildings within Abu Dhabi. ADAA recommended the following:
1. Establish building categories for different types of Government buildings.
2. Decide on desired useful life and building conditions for the building categories and incorporate
requirements into tenders for all new Government buildings.
3. Develop an active building maintenance program that includes proactive planned maintenance.
4. Gather data using the planned maintenance approach and develop a maintenance cost baseline.
3.7 OUTPUT GROUP 4: SPECIAL EXAMINATION
This output group focuses on conducting investigations on violations discovered by ADAA or referred to it.
ADAA may involve other authorities and law enforcement agencies to ensure the accuracy and authenticity of
its examinations.
In 2009, ADAA received several requests to conduct investigations on violations and complaints from Subject
Entities, the public and law enforcement agencies, whereby special examinations were carried out and have
resulted in legal and disciplinary actions against a number of public employees and violators.
Violations examined are related to:
• Conflict of interest.
• Misuse of power to serve personal interests.
• Procurement compliance.
• Inside information dealings.
• Compliance with laws and regulations.
3.8 OUTPUT GROUP 5: ADAA CENTER OF EXCELLENCE
This output group provide in-depth knowledge and awareness of leading practices within the Government.
ADAA Center of Excellence has designed and initiated programs, activities and events that have facilitated
knowledge sharing and development throughout its Subject Entities.
2009 report and 2010 work Plan

Below is a summary of some of this group’s outputs:
Training and Development
The HR and Training Function at ADAA was transformed from an administrative role to a strategic business
partner role, through changing its services towards competency-based and realigning the HR policies,
procedures and systems to ADAA’s new strategy and business plan. This encompassed the formulation of
a new organization structure, new HR policy and procedures manual, job evaluation and documentation,
delegation of authority matrix, graduate development, Emiratization Program Strategy, Competency
Framework, Learning and Development Strategy, and Reward and Recognition schemes.
ADAA Training Center
In 2009, ADAA established its training and development arm “ADAA Training Center” to develop and train UAE
National in ADAA and Subject Entities. The Center was established in partnership with international leading
institutions and training providers offering customized professional programs to the trainees.
In early 2009 around 38 employees of ADAA and its Subject Entities were enrolled in the Certified Public
Accountant (CPA) and the Certified Internal Auditor (CIA) programs offered by the ADAA Training Center.
Emirati fresh graduates have recently enrolled in the National Development Program to acquire the necessary
skills and knowledge to advance and excel in their careers, allowing them to become a key component in the
growth and success of ADAA and the Emirate of Abu Dhabi.
Internal Audit and E-Governance Support
ADAA is currently the source of Internal Audit updates, applications and dissemination within the Subject
Entities. Another aspect of this support is the e-Governance Portal. In a first of its kind initiative on a global
scale, ADAA sponsored the launch of an Internal Audit platform across 34 Subject Entities. Prior to delivery,
ADAA reviewed the best solutions in the market, benchmarked to leading practices, negotiated with vendors
and rolled out the e-Governance solution. The portal is a straightforward effective tool to support all the
phases of Internal Audit activity.
ADAA also drafted and issued a Government Wide Internal Audit Manual designed to assist the internal audit
functions at Subject Entities to operate using a unified model and framework based on the latest approach and
practice in risk based Internal Audit.
International Forum for Independent Audit Regulators (IFIAR)
ADAA was the 1st organization in the Middle East to become a member in the IFIAR. It became a member
during the first quarter of 2009. ADAA’s membership gave it access to more than 30 audit regulators operating
in various parts of the world, and helped in performing its financial reports examinations. IFIAR meetings are
held twice a year, and ADAA attended both meetings in 2009, held in Basel and Singapore, and will be hosting
IFIAR’s first meeting on the 21st of March 2010.

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IFRS Digest
ADAA is responsible for contributing to the confidence in financial reporting in the Emirate of Abu Dhabi and
the U.A.E. by enhancing the application and understanding of financial reporting among stakeholders. Towards
this objective, ADAA identifies issues relating to International Financial Reporting Standards (IFRS) (e.g. new
pronouncements, standards and/or publications by international standard-setting bodies, or misapplication of
standards by Subject Entities) and communicates developments, interpretations and advice to ADAA’s Subject
Entities on a monthly basis. During 2009, ADAA issued 12 IFRS Digest issues.
Workshop and Seminars
ADAA organized its first annual event for hosting the Heads of Internal Audit functions at Subject Entities to
get their feedback and insights, and understand their challenges, requirements and needs to better serve
Subject Entities. Thus, the first such Internal Audit Seminar was held in February 2009, and the second is
planned for February 2010.
Further, ADAA organized the 1st Anti-Fraud Seminar in October 2009 for Subject Entities Internal Audit
functions and it included an introduction to the ADAA Anti-Fraud Program and a panel discussion by Global
representatives from the Big-Four. The Seminar also awarded its attendees 7 CPE credits from the Association
of Certified Fraud Examiners (ACFE).
ADAA Methodologies
During 2009, ADAA successfully developed its working methodologies for:
• External auditing, review and financial examination in accordance with the International Standards on
Auditing (ISA) and other applicable standards issued by the International Federation of Accountants (IFAC)
and based on the methodologies applied by peer national audit offices.
• Performance Assessments, Compliance Assessments, Internal Audit Assessments and Fraud Risk
Assessments.
Research and Knowledge
The Research and Knowledge function is a new capability being established at ADAA. The objective of the
function is to create, acquire and transmit knowledge more effectively across all areas of ADAA’s operations as
well as contribute towards supporting the research and knowledge needs and capabilities of other government
entities.
During 2009, ADAA started issuing a monthly newsletter under the title “Global Accountability & Transparency”
whereby various topics and research papers are covered and discussed.
2009 report and 2010 work Plan

ADAA Audited
Financial
Statements

ADAA Audited
Financial
Statements

52
PART
Audited Financial Statements
Audited Financial Statements

Abu Dhabi Accountability
Authority
FINANCIAL STATEMENTS TOGETHER
WITH AUDITORS’ REPORT
31 DECEMBER 2009

54 Audited Financial Statements

56 Audited Financial Statements

58 Audited Financial Statements

60 Audited Financial Statements

62 Audited Financial Statements

64 Audited Financial Statements

66 Audited Financial Statements