Accountability Report 2015

www.adaa.abudhabi.ae
ACCOUNTABILITY
REPORT
2015

ADAA Accountability
Report on the website

Since God, bestows His graces
on us providing us with wealth,
it is our role to use this wealth
for the benefit and prosperity
of our country and our people
as an expression of gratitude to
our Lord.
The late Sheikh Zayed bin Sultan Al Nahyan
(may God have mercy upon him)

His Highness Sheikh Khalifa bin Zayed Al Nahyan
The President of the UAE

His Highness Sheikh Mohamed bin Zayed Al Nahyan
The Crown Prince of Abu Dhabi and Deputy Supreme Commander of
the UAE Armed Forces

Contents

FOREWORD
01
About ADAA
ADAA
Outputs
2014 Report
and 2015 Plan
1. ADAA History 04
2. Strategic Pillars 05
3. Overall Strategy 05
4. Objectives and Responsibilities 06
5. Outputs and Outcomes 06
6. Subject Entities 08
7. Governance Report 12
1. Introduction 18
2. ADAA Audit Methodology 19
3. Financial Audit and Examination 20
4. Performance and Risk Assurance 22
5. Supporting Accountability 25
1. 2014 Achievements Highlights 30
2. Output Group 1: Financial
Audit and Examination 33
3. Output Group 2: Performance
and Risk Assurance 37
4. Output Group 3: Supporting
Accountability 44
5. 2015 Work Plan 51
Part 01
Part 02
Part 03
04
30
18 53
Financial
Statements
together with
Independent
Auditor’s Report
for the year ended
31 December 2014
Part 04

IT GIVES ME GREAT PLEASURE TO BRING YOU THE
“ACCOUNTABILITY REPORT 2015”, THE 7TH ISSUE OF
THE ANNUAL REPORT OF ABU DHABI ACCOUNTABILITY
AUTHORITY (ADAA), THAT AFFIRMS OUR COMMITMENT
TO THE HIGHEST STANDARDS OF TRANSPARENCY AND
ACCOUNTABILITY, THE STANDARDS THAT HAVE BECOME A
WAY OF LIFE UNDER THE LEADERSHIP OF OUR PRESIDENT
HIS HIGHNESS SHEIKH KHALIFA BIN ZAYED AL NAHYAN.
This issue of the annual report arrives at a time when the Government Summit - Shaping Future
Governments - has just been concluded. During the Summit, we learned about the ambitious vision of the
future of the Government and what has been accomplished in all areas of government sectors.
One can’t mention the Summit without stopping at the keynote speech of His Highness Sheikh Mohamed
bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed
Forces. A speech that cited the history, witnessed the present and shaped the future… Sheikh Mohamed
bin Zayed said every successful government treats its citizens as a national asset. He added that state-
building doesn’t only depend on governments, but also on every citizen and resident of this blessed land.
He quoted a saying by the late Sheikh Zayed bin Sultan Al Nahyan that “the new generation should be
aware of the suffering of its ancestors. This awareness will provide them with drive, firmness and solidity in
order to complete the epic of construction and development initiated by our fathers and ancestors.”
We at ADAA, under the direction of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of
Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and the support of His Highness
Sheikh Hazza bin Zayed Al Nahyan, National Security Advisor and Vice Chairman of the Abu Dhabi
Executive Council, are proud that we have developed and sponsored the “Auditor Development Program”
designed with the objective of contributing to the training and development of Emirati Auditors and
assisting them acquire the necessary skills and knowledge to advance and excel in their careers. Since the
inception of the Program, more than fifty UAE nationals have joined.
This Report illustrates a number of ADAA accomplishments during the past year including:
• 162 reports issued as outputs of the Financial Audit and Examination group and the Performance and
Risk Assurance group.
• ADAA became a member of the Inspection Working Group of the International Forum of Independent
Audit Regulators (IFIAR).
• Issuing the second edition of Statutory Auditors Appointment Rules (SAAR).
• Sharing Abu Dhabi experience in the World Congress of Accountants which was hosted by IFAC and
attended by 4000 delegates from more than 100 countries.
• The accreditation of ADAA Training Center as a registered sponsor on the National Registry of CPE
Sponsors of the United States of America.
• ADAA selection as a member of the “High-Level Advisory Council” of IFAC.
In conclusion, I would like to thank everyone who has contributed to these achievements including public
entities and ADAA employees, praying to the Great and Almighty Allah to grant us success in serving our
generous country.
Riyad Al Mubarak
ADAA Chairman
FOREWORD

About ADAA
Part 01
1. ADAA History 04
2. Strategic Pillars 05
3. Overall Strategy 05
4. Objectives & Responsibilities 06
5. Outputs & Outcomes 06
6. Subject Entities 08
7. Governance Report 12

4
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
1. ADAA HISTORY
Abu Dhabi Accountability Authority (ADAA)
was established under Law No. (1) for the
year 1985 as an independent body reporting
to His Highness the Crown Prince of Abu
Dhabi and mandated to perform financial
oversight on funds disbursed by public entities
and ensure the accuracy and legitimacy of
the management of these funds, which were
previously under the responsibility of the
Department of Finance.
ADAA began to exercise its powers since the
issuance of Decree No. 8 of 1996 appointing
His Excellency Mohammed Al Marar as the
first Chairman. In April 1997, the Law referred
to above was amended to make ADAA
responsible for the post financial control
instead of the pre-audit to strengthen its
independence. In July 2004, Law No. 6 of 2004
was issued to give ADAA broader powers.
In December 2007, Decree No. 32 of 2007
was issued appointing His Excellency Riyad
Al Mubarak as Acting Chairman of ADAA as
part of the restructuring of the Government of
Abu Dhabi.
In December 2008, Law No. 14 of 2008 (the
Law) was issued to shift the role of ADAA from
financial control to government audit and
added a new objective that is to promote the
principles of accountability and transparency.
The Law also changed the name of the
authority from ”Abu Dhabi Audit Authority”
to “Abu Dhabi Accountability Authority”. On
31 December 2008, Emiri Decree No. (10)
was issued appointing His Excellency Riyad Al
Mubarak as Chairman of ADAA.
One of the nature reserves in Abu Dhabi

5
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
2. STRATEGIC PILLARS
Our Vision
“To be one of the top 5 accountability authorities in the world”
Our Mission
“To help improve performance and promote
accountability and transparency across Abu Dhabi
Government and Public Entities by providing
independent and objective assurance and
advisory services”
Our Values:
3. OVERALL STRATEGY
To enhance performance and to promote accountability and transparency by:
• Becoming a trusted advisor.
• Leading by example and supporting adoption of better practices.
• Enhancing communication and collaboration between Subject Entities and support sharing of
knowledge.
Accountability and Transparency
Integrity and Respect
Professionalism
Lead by
example
Listening to other points
of view
Earning the trust of people we interact with
Innovating and going beyond the current standards
Collaborative and effective teamwork
Treating others with
respect
Being passionate about the work we do
Being independent, objective
and neutral

6
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
4. OBJECTIVES &
RESPONSIBILITIES
Law number 14 of 2008 defines ADAA’s
objectives as:
• Ensuring public resources and funds are
managed, collected and expended efficiently,
effectively and economically.
• Ensuring accuracy of the financial reports and
compliance of Subject Entities with relevant
laws, rules and regulations and governance
guidelines.
• Promoting accountability and transparency
across all Subject Entities.
Law number 14 of 2008 defines ADAA’s
responsibilities as:
• Audit the Government consolidated financial
reports and examine Subject Entities’ financial
reports.
• Review performance and risk by examining
the efficiency, effectiveness and economy
of the financial and operational activities of
Subject Entities and ensuring compliance with
laws, regulations and rules and governance
guidelines.
• Submit reports to HH the Crown Prince as
well as carry out any other functions and
duties requested by HH the Crown Prince.
• Provide advice and recommendations and
perform other procedures and services to
Subject Entities as the ADAA Chairman
deems reasonable and appropriate.
• Conduct investigations of complaints referred
to ADAA and other violations it may discover
as well as examine violations investigated by
Subject Entities.
• Train and qualify UAE National graduates of
universities and institutions.
5. OUTPUTS & OUTCOMES
ADAA discharges its responsibilities through the
outputs that have been developed during the
past years (please see Part 2).
ADAA has also defined a set of outcomes based
on its objectives and responsibilities as follows:
• Enhanced accountability and transparency in
the Government and Subject Entities.
• The public and the world are better
informed about accountability in Abu Dhabi
Government.
• Efficient and effective public sector.
• Improved governance practices in all Subject
Entities.
• Increased number of UAE Nationals in the
fields of accounting and audit.
• Improved transparency and reliability of
financial reporting.
• Enhanced compliance with rules and
regulations.
One of the golf courses in Abu Dhabi

7
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
The following figure illustrates ADAA objectives, responsibilities, outputs and outcomes:
Promote accountability and
transparency across all Subject
Entities.
• Audit the Government consolidated financial reports and examine Subject Entities’ financial reports.
• Review performance and risk by examining the efficiency, effectiveness and economy of the financial and
operational activities of Subject Entities and ensuring compliance with laws, regulations and rules and
governance guidelines.
• Submit reports to HH the Crown Prince as well as carry out any other functions and duties requested by
HH the Crown Prince.
• Provide advice and recommendations and perform other procedures and services to Subject Entities as the
ADAA Chairman deems reasonable and appropriate.
• Investigate complaints referred to ADAA and other violations it may discover as well as examine violations
investigated by Subject Entities.
• Train and qualify UAE National graduates of universities and institutions.
• Financial Audit and Examination • Performance and Risk Assurance • Supporting Accountability
• Enhanced accountability and transparency in the Government and Subject Entities.
• The public and the world are better informed about accountability in Abu Dhabi Government.
• Efficient and effective public sector.
• Improved governance practices in all Subject Entities.
• Increased number of UAE Nationals in the fields of accounting and audit.
• Improved transparency and reliability of financial reporting.
• Enhanced compliance with rules and regulations.
Ensure accuracy of the financial
reports and compliance of
Subject Entities with relevant
laws, rules and regulations and
governance guidelines.
Ensure public resources and
funds are managed, collected
and expended efficiently,
effectively and economically.
Objectives
Responsibilities
Outputs
Outcomes

8
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
6. SUBJECT ENTITIES
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. Other entities may be
subject to ADAA work based on other criteria as defined in Law number 14 of 2008.
Subject Entities Classification by Type
ADAA classified Subject Entities into groups based on their types as shown in the following figure:
Central Government State-Owned
Enterprises (SOE)
SOEs Subsidiaries
ADNOC
ADFD
ADIA
IPIC
ADWEA
ADX
Mubadala
Etihad Aviation Group
Senaat
TDIC
ADSSC
ADNEC
ADAC
ADPC
ADIC
SEHA
ADMC
EPCO
ENEC
Daman
Etihad Rail
Courts
(Diwans)
Other Government Entities / Subsidiaries
Department of
Finance
Department
of Economic
Development
Department
of Municipal
Affairs
Department of
Transport
Health Authority
– AD
Energy
Authority
AD Authority
for Tourism &
Culture
Media Zone
Authority – AD
AD Education
Council
AD Centre
for Technical
& Vocational
Education
Environment
Agency – AD
Civil Service
Council
AD Urban
Planning Council
AD Food
Control
Authority
AD Sports
Council
AD Tawteen
Council
AD Housing
Authority
AD Police
AD Systems &
Information
Centre
Musanada
Executive
Council
Ruler Court
Ruler
Representatives
Courts
Judicial
Department
Crown Prince
Court
National
Consultative
Council
Abu Dhabi
Accountability
Authority

9
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Subject Entities Classification by Sector
ADAA has also classified Subject Entities by sector as shown in the list below (excluding subsidiaries of
State Owned Enterprises and Government Entities).
SECTOR POLICY AREA ENTITY NAME
Economic
Development
Planning and
Economy
1- Department of Economic Development
2- Khalifa Fund for Enterprises Development
3- Abu Dhabi Quality and Conformity Council
4- Abu Dhabi Council for Economic Development
5- Higher Corporation for Specialized Economic Zones
6- Media Zone Authority - Abu Dhabi
7- Global Marketplace Abu Dhabi
Energy
8- Supreme Petroleum Council
9- Energy Authority
10- Regulation and Supervision Bureau
Tourism and
Culture
11- Abu Dhabi Tourism and Culture Authority
12- Emirates Heritage Club
13- Zayed House for Islamic Culture
14- Public Institution Zoo and Aquarium in Al Ain
Social
Development
Justice 15- Judicial Department - Abu Dhabi
Security 16- General Directorate of Abu Dhabi Police
17- Monitoring and Control Centre
Health 18- Health Authority - Abu Dhabi
19- The National Rehabilitation Centre
Food and
Agriculture
20- Abu Dhabi Food Control Authority
21- Abu Dhabi Farmers Services Centre
22- Abu Dhabi Farmer Financial Support Fund
Social Inclusion
23- Family Development Foundation
24- Zayed Higher Organization For Humanitarian Care and Special
Needs
25- Social Care and Minors Affairs Foundation
26- Zayed bin Sultan Al Nahyan Charitable and Humanitarian
Foundation
27- Khalifa Bin Zayed Al Nahyan Foundation
28- Emirates Foundation
Housing 29- Abu Dhabi Housing Authority

10
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Subject Entities Classification by Sector
SECTOR POLICY AREA ENTITY NAME
Human Capital
Development
Education
30- Abu Dhabi Education Council
31- Khalifa University for Science, Technology and Research
32- Emirates College for Advanced Education
33- Paris-Sorbonne University - Abu Dhabi
34- Mohammed V University - AGDAL - Abu Dhabi
35- Abu Dhabi Centre for Technical and Vocational Education and
Training
36- Abu Dhabi Vocational Education and Training Institute
37- Institute of Applied Technology
38- Petroleum Institute
39- Rabdan Academy
Labour
40- Abu Dhabi Tawteen Council
41- Civil Service Council
42- Abu Dhabi Retirement Pensions and Benefits Fund
Sports 43- Abu Dhabi Sports Council
Infrastructure and
Environment
Urban
Planning and
Municipal
Affairs
44- Abu Dhabi Urban Planning Council
45- Department of Municipal Affairs
46- Municipality of Abu Dhabi City
47- Municipality of Al Ain City
48- Western Region Municipality
49- The Center of Waste Management - Abu Dhabi
50- Abu Dhabi General Services Company - Musanada
Transport
51- Department of Transport
52- The Center for Regulation of Transport by Hire Cars (Trans Ad)
53- Compensations Fund for Owners of Taxi Licenses
Environment
54- Environment Agency - Abu Dhabi
55- International Fund for Habara Conservation
56- Mohamed bin Zayed Species Conservation Fund

11
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Subject Entities Classification by Sector
SECTOR POLICY AREA ENTITY NAME
Government Administration
Government
Administration
57- Ruler Court
58- Crown Prince Court
59- Ruler Representative in the Eastern Region Court
60- Ruler Representative in the Western Region Court
61- National Consultative Council
62- Abu Dhabi Accountability Authority
63- Executive Affairs Authority
64- Vice Chairman of the Executive Council Office
65- General Secretariat of the Executive Council
66- Department of Finance
67- Statistics Centre - Abu Dhabi
68- Presidential Flight Authority
69- Abu Dhabi Systems & Information Centre
Public Investments
Public
Investments
70- Abu Dhabi National Oil Company – ADNOC
71- Abu Dhabi Fund for Development – ADFD
72- Abu Dhabi Investment Authority – ADIA
73- International Petroleum Investment Company – IPIC
74- Abu Dhabi Water & Electricity Authority – ADWEA
75- Abu Dhabi Securities Exchange – ADX
76- Mubadala Development Company – Mubadala
77- Etihad Aviation Group
78- General Holding Corporation – Senaat
79- Tourism Development & Investment Company – TDIC
80- Abu Dhabi Sewerage Services Company – ADSSC
81- Abu Dhabi National Exhibitions Company – ADNEC
82- Abu Dhabi Airports Company – ADAC
83- Abu Dhabi Ports Company – ADPC
84- Abu Dhabi Investment Council – ADIC
85- Abu Dhabi Health Services Company – SEHA
86- Abu Dhabi Media Company – ADMC
87- Emirates Palace Company – EPCO
88- Emirates Nuclear Energy Corporation – ENEC
89- National Health Insurance Company – Daman
90- Etihad Rail Company

12
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
7. GOVERNANCE REPORT
ADAA aims at earning the trust of its
stakeholders and sustaining it through
adopting and implementing the highest
standards of accountability and transparency
and issues its Governance Report accordingly.
In this report, ADAA follows a set of guiding
principles, regulations, ideal fundamentals
and processes that are integrated under the
following main components of governance:
Leadership
ADAA ensures that all its processes and operations adhere to the utmost principles of transparency
whereby its Chairman has welcomed and adopted various channels of communication with the
employees providing adequate communication relating to the overall strategy, ADAA’s yearly plan and
its performance through events such as the Annual Meeting held at the beginning of every year as well
as the periodic management meetings that cover different topics of importance and impact on ADAA’s
work and verifies that the operational activities are in line with the annual plan and is consistent with
the vision and overall strategy of the Abu Dhabi Government.
ADAA has also designed its organizational structure based on its operating model to fulfill its
responsibilities and achieve its objectives:
Institutionalization
ADAA developed a strategic planning
framework based on its strategic priorities.
ADAA also developed work methodologies
for every output and service it provides in
accordance with international best practices
and is considered a guideline for ADAA’s
actions and the provision of its services. These
methodologies are constantly revisited and
reviewed to ensure their validity and relevance
to the current needs of Abu Dhabi and relative
stakeholders.
Leadership
Institutionalization
Performance Management
Control
External Reports
Outcomes
ADAA Mandate
1
2
4
3
5
Objectives
Outputs
Responsibilities
ADAA Chairman
Internal Audit
Financial Audit and
Examination Group
Performance and Risk
Assurance Group
Support Services
Group
Legal Affairs and
Investigations
Department
Deputy Chairman

13
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Performance Management
ADAA’s performance is measured based on a set of
internationally recognized performance metrics to ensure
the objectivity of these measurements. ADAA has developed
three types of performance measures as shown below:
• Outcome Performance Indicators: to measure the impact
of ADAA’s work on the state or condition of the society,
the economy, or the environment and any change in that
state or condition.
• Output Performance Indicators: to measure the cost,
quantity, quality and timeliness of our services (outputs)
(Such as: the cost of the reports, the number of reports,
the quality of the recommendations, issuing reports on
time).
• Internal Performance Indicators: to measure the
performance of ADAA’s internal departments and units.
ADAA implements a remuneration policy and procedure for its employees as well as a performance
management system that ensures fair evaluations of individual performance and identifies a clear
career path and progression plan for each one. 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.
ADAA considers communication a crucial and indispensable approach to measure its performance and
achieve transparency with its stakeholders; be it Subject Entities or the general public. ADAA launched
many initiatives to enhance awareness of its role and responsibilities that included launching its new
identity and its official website www.adaa.abudhabi.ae along with other initiatives to improve the
Accounting and Audit professions and has created communication channels with its Subject Entities to
encourage knowledge sharing such as the monthly e-newsletter “ADAA IFRS Digest”, the e-maarifa
web portal, Abu Dhabi Audit Management portal in addition to networking seminars, workshops and
panel discussions on new services and policies.
ADAA seeks feedback from its Subject Entities on the review process executed after the issuance
of each audit and assurance report. The feedback received constitutes an important guide to the
effectiveness of existing practices and further developments that may be required.
ADAA views its people as its primary asset as it includes top-tier professionals from multi-cultural
backgrounds, unified by the ADAA vision, mission and values.
ADAA is committed to develop and attract Emiratis to the Accounting and Audit profession. The
Authority has equally defined career paths and growth plans for all employees and promotes the
success of ADAA as one team.
Performance
Standards Sets
Outcome
Performance Indicators
Internal Performance
Indicators
Output Performance
Indicators

14
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Control
Internal Control:
ADAA annually reviews its internal controls, including financial, operational, compliance controls and
risk management to ensure that its processes are in line with best practice, laws, rules and regulations
through its internal audit function that follows international standards set forth in the “Internal Audit
Manual” issued by ADAA in 2010.
ADAA also implemented 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
ADAA has established a “Compliance Officer” role whose responsibility is to handle the receipt of
complaints related to employees and to ADAA’s activities, examine complaints and prepare a memo of
the outcomes of the examination and make recommendations with the necessary action.
All ADAA employees take the below mentioned oath before the
ADAA Chairman upon joining the Authority as per Article (9) of
Law (14) of 2008 establishing ADAA:
I SWEAR BY ALMIGHTY GOD TO BE LOYAL TO THE RULER
AND 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
External Audit:
ADAA’s financial statements are reviewed and audited by an external auditor. For the year 2014, KPMG
was appointed in accordance with Statutory Auditors Appointment Rules issued by ADAA to review
and audit the interim and annual financial statements of ADAA. KPMG was appointed for a fee of
AED 125,000.
External Reports
ADAA prepares an annual plan that comprises its operational intentions, objectives and performance
targets for the coming year. The plan also includes ADAA’s strategy, priorities, outputs, outcomes
and performance measures. In addition, ADAA prepares an annual report “Accountability Report” to
provide information about the following:
• Comparison of actual performance against set targets; as well as other information necessary to
assess ADAA’s performance during the financial year.
• Governance Report.
• ADAA’s annual financial statements accompanied with the Statutory Auditor’s report.

15
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Sheikh Zayed Grand Mosque in Abu Dhabi

16
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015

17
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
1. Introduction 18
2. ADAA Audit Methodology 19
3. Financial Audit and Examination 20
4. Performance and Risk Assurance 22
5. Supporting Accountability 25
ADAA Outputs
Part 02

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
18
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
1. INTRODUCTION
ADAA established a number of outputs enabling the execution of its mandate as outlined in its
establishment law. The following table demonstrates ADAA’s outputs in relation to the mandate item it
fulfills:
Law No. 14
• Audit the Government consolidated Financial
Reports and Subject Entities’ Financial Reports.
• Review performance and risk by examining the efficiency,
effectiveness and economy of the financial and
operational activities of Subject Entities and ensuring
compliance with laws, regulations and rules and
governance guidelines.
• Submit reports to HH the Crown Prince as well as carry
out any other functions and duties requested by HH the
Crown Prince.
• Provide advice and recommendations and perform other
procedures and services to Subject Entities as the ADAA
Chairman deems reasonable and appropriate.
• Investigate complaints referred to ADAA and other violations it may
discover as well as examine violations investigated by Subject Entities.
• Train and qualify UAE National graduates of universities and
institutions.
1. Financial Audit
2. Financial Examination
3. Financial Management
Assessment
4. Internal Audit
Function Assessment
5. Procurement Review
6. Service and Output
Review
7. Accountability Reports
8. Advisory
9. Special Examination
10. ADAA Training Center
Financial
Audit and
Examination
Performance
and Risk
Assurance
Supporting
Accountability
ADAA FUNCTIONS AND DUTIES ADAA OUTPUTS
Fishing activities in Abu Dhabi

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
19
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
2. ADAA AUDIT METHODOLOGY
ADAA performs its audit assignments in accordance with a standardized audit methodology to ensure
the quality of audit work performed which is then reflected in its reports and outputs. ADAA’s audit
methodology involves three main phases where each phase includes a number of steps as shown in the
following figure:
In addition, ADAA developed specific “audit criteria” for every output of the Financial Audit and
Examination and Performance and Risk Assurance groups. The high quality of reports detailing the
encompassed findings and recommendations are directly dependent on the presence of auditing
standards developed based on internationally recognized best practices.
Abu Dhabi Accountability Authority audit methodology was developed in accordance with the
standards and guidelines issued by the International Federation of Accountants (IFAC), The
International Organisation of Supreme Audit Institutions (INTOSAI) and other internationally
accepted standards.
Abu Dhabi Accountability Authority performs its audit assignments based on previously defined
”audit criteria” prepared in accordance with generally accepted standards and best practices
applied on the subject of the audit.
Reporting Phase
Execution Phase
Planning Phase
Understand
the business
Define audit
scope criteria and
prepare audit
program
Prepare and send
engagement
letter
Hold “opening
meeting” with
management
Identify findings
Collect data
Analyse data
Collect and
document
evidence and link
them with findings
Draft findings
1
2
3 4
5
6
7
8
9 10
11
12
Coordinate with
SE management
and set time
schedule
Present findings
to SE
Hold “closing
“meeting
with SE
Prepare draft
report
Review
report
Present
report to
ADAA
Chairman
Prepare and
issue final report
Communicate
with those
charged with
governance
and follow
up.
13 14
15
16
17

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
20
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
3. FINANCIAL AUDIT AND EXAMINATION
ADAA developed 3 types of outputs under this group with the objective of enabling it to provide
assurance on the accuracy of the Government’s Consolidated Financial Statements and the Financial
Statements issued by Subject Entities:
• Financial Audit
• Financial Examination
• Financial Management Assessment
3.1 Financial Audit
Audit the Consolidated Financial Statements of the Government of Abu Dhabi to express an opinion
whether the financial statements present fairly, in all material respects, the financial results of the
Government of Abu Dhabi.
ADAA audits the Consolidated Financial Statements of the Government of Abu Dhabi in accordance
with International Standards on Auditing (ISA), the purpose of which is to express an opinion on
whether the financial statements present fairly, in all material respects, the financial results of the
Government of Abu Dhabi, according to International Public Sector Accounting Standards (IPSAS).
3.2 Financial Examination
Ensure that Subject Entities implement the Statutory Auditors Appointment Rules (SAAR) issued by
ADAA when appointing a statutory auditor, perform financial examination of the Subject Entity’s
financial statements and examine the work undertaken by the statutory auditor to provide assurance
on the accuracy of the financial statements of Subject Entities. ADAA developed 390 audit criteria
spread over 21 standards within 5 elements as illustrated in the following figure:
Audit Elements and Standards for Financial Examination
Auditor Appointment
1. Auditor Independence
2. Expertise in the business of
the entity
3. Technical resources and
quality
4. Technical and financial
proposals evaluation
Audit Planning
5. Audit planning
memorandum
6. Understand the entity
business and environment
7. Assess risk of significant
misstatement due to
fraud or error
Audit Conclusion and reporting
19. Conclude the
assignment and evaluate
result
20. Form the opinion and
prepare the report
Legal, Regulatory and Other
Requirements
21. Compliance with relevant
laws and regulations
Audit Execution
8. Test of controls
9. Perform analytical
procedures
10. Significant balances and
transactions
11. Applied accounting
framework
12. Accounting estimates
13. Related parties
transactions
14. Subsequent events
15. Going concern
16. Management
representations
17. Use of expert work
18. Legal cases
Audit criteria for Financial Examination were developed based on the following:
• Statutory Auditors Appointment Rules issued in accordance with Law Number 14 of 2008,
• International Standards on Auditing (ISA) issued by the International Federation of Accountants
(IFAC), and
• Accounting standards used for preparing the financial statements. i.e. IPSAS or IFRS.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
21
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
ADAA’s financial examination reports findings are classified as follows:
Significant improvement required: Significant finding that requires immediate action.
Needs improvement: Finding indicates issues on audit quality that require action to improve the
audit.
Needs improvement - Specific exception noted: Had this exception been noted during the audit
process, it might has resulted in an adjustment.
3.3 Financial Management Assessment
Assess the financial management at a Subject
Entity and its conformity with best practices
to ensure efficiency of the preparation of its
financial statements.
Audit criteria for Financial Management
Assessment were developed based on good
practice statements issued by the Chartered
Institute of Public Finance and Accountancy
(CIPFA). CIPFA is a member of the International
Federation of Accountants (IFAC).
The good practice statements developed by the
institute are structured around three progressive
styles:
• Securing stewardship,
• Supporting performance and
• Enabling transformation.
Good
finance
function
Enabling
transformation
Supporting
performance
Securing
stewardship
C
h
a
n
g
e
m
a
n
a
g
e
m
e
n
t
O
p
p
o
r
t
u
nitydriv
e
n
L
e
a
d
i
n
g
p
r
a
c
t
i
c
e
s
G
o
o
d
fi
n
a
n
c
i
a
l
a
n
a
l
y
s
i
s
S
u
p
p
o r t g o
o
d
G
o
o
d
i
n
t
e
r
p
r
e
t
a
t
i
o
n
o
f
c
o
s
t
d
r
i
v
e
r
s
m
a
n
a
g
e
m
e
n
t
D
er
ivev
a
l
u
e
Risk
d
e c
i s i o n - m a k
i n
g
C
o
n
t
r
o
l
l
e
r
s
h
i
p
A
c
c
o
u
n
t
a
b
i
l
i
t
y
C o m
p
l i
a
n
c
e
d
r
i
v
e
n
4 3.5 2.5 1.5 1
3.0 2.0
Underdeveloped Emerging Maturing Leading
The CIPFA good practice statements are structured around four management dimensions:
• Leadership
• People
• Processes
• Stakeholders
The financial management is assessed against 38 Good Practice Statements based on how far each
Statement is met. The financial management is rated, for each Statement, on a scale from 1-4 with 1
being “not-applied” and 4 being “leading” based on 442 criteria distributed over the dimensions of
the financial management and working methods specified above in each of these dimensions.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
22
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
4. PERFORMANCE AND RISK ASSURANCE
ADAA developed 3 types of outputs under this group with the objective of ensuring Subject Entities’
resources and funds are managed, collected and expended efficiently, effectively and economically and
in compliance with the relevant laws and regulations and governance rules:
• Internal Audit Function Assessment
• Procurement Review
• Service and Output Review
4.1 Internal Audit Function Assessment
Assess the Internal Audit function at Subject Entities to ensure effectiveness of risk management
activities, control and governance at Subject Entities. ADAA has developed 96 audit criteria to assess
the internal audit activity spread over 26 standards within six main elements.
The following figure shows the elements and evaluation standards:
The “Internal Audit Assessment Methodology” was developed based on best practices and in
accordance with the standards issued by The Institute of Internal Auditors (IIA).
Each of the 6 elements are assessed; the outcome of assessing all elements allows the Internal Audit
Activity to achieve an overall “Pass” or “No Pass” score. Due to the dissimilarity of the significance of
those elements, each element was assigned a specific weight according to its criticality.
Internal Audit Activity with “Pass” rates is classified within the following 3 categories:
Category Score Description
Tier 1 Over 89% Minor or no improvement opportunity to meet leading
practices
Tier 2 75% to 89% Specific or minor improvement opportunities to meet leading
practices
Tier 3 50% to 74% Significant improvement needed to meet leading practices
Independence and
Objectivity
1. Organizational Independence
2. Aspects of Organizational
Independence
3. Impairment to
Independence or
Objectivity
4. Recognition of the Definition
of Internal Auditing, the
Code of Ethics, and the
Standards
5. Direct Interaction with the
Board
Organization and
Emiratization
6. Developing the Internal Audit
Strategic Plan
7. Internal Audit Function
Charter
8. Organizational
Structure and Resource
Capabilities
9. Career Development Plans
10. Emiratization Plans
Methodology
11. Internal Audit
Methodology and Manual
12. Methodology and
Technology Interface
13. Methodology Awareness
Operations
14. Resource Management:
Time and Money
15. Audit Planning and Risk
Assessment
16. Audit Execution Process
17. Communication and
Reporting Process
18. Follow-up Process
19. Advisory Services
20. Annual Audit Plan Coverage
21. Management of 3rd Party
Service Providers, if any
Technology
22. Use of Technology
23. Security, Maintenance and
Upgrade
Value
24. Acceptance and Perception
of the Internal Audit
Function within the
Organization
25. Expectation Management
and Value Add
26. Promotion of Better
Governance Practices

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
23
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
4.2 Procurement Review
Review procurement processes at Subject Entities to verify the presence of comprehensive procurement
regulations and procedures at the Subject Entities and ensure their compliance with them. ADAA
has developed 74 audit criteria to review the Procurement spread over 13 standards within three
main elements: Procurement Regulatory Framework, Procurement Practices and Record Keeping and
Reporting.
The following figure shows the elements and evaluation standards:
Procurement Review Methodology was developed based on the pronouncements made by the
Chartered Institute of Purchasing and Supply (CIPS) and in line with the prevailing Laws and Regulation
relating to the Procurement applied in the Emirate of Abu Dhabi. Observations resulted from the
Procurement Review are classified according to their significance as follows:
Observation with medium risk exposure
Observation that refers to a weakness in the procurement process that requires corrective
action(s).
Observation with significant risk exposure
Observation of a significant effect on the procurement process that requires immediate action
to ensure non-recurrence.
Audit Elements and Standards for Procurement Reviews
1. Procurement Policy
2. Authorities and
Delegations
3. Conflicts of Interest
4. Procurement Manual
12. Documentation
13. Procurement Activity
Performance Reports
5. Procurement Planning
6. Registration and
Classification
7. Purchase Requisition
8. Prequalification
9. Request for and Receipt
of Proposals
10. Proposals Evaluation
11. Award
Record
Keeping and
Reporting
Procurement
Practices
Procurement
Regulatory
Framework

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
24
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
4.3 Service and Output Review
Review operations and processes used by Subject Entities to provide services or outputs for the purpose
of ensuring the effective, efficient and economic use of public funds, as well as conformance with
applicable laws and leading practices. It also includes Capital Projects Review addressing the review of
infrastructure assets and critical projects under development by Subject Entities.
ADAA develops set of criteria and standards within three main elements for each review as illustrated
in the following chart:
ADAA has also developed a number of criteria distributed into 17 audit standards to review the projects
within three main elements based on Project Management Standards issued by the Project Management
Institute (PMI) as shown below:
*Audit standards differ from audit to another based on the audit subject.
Audit Elements and Standards
for Service and Output Review
Public Benefits
of Services
Performance
Metrics and
Reports
Practices* Governance
Framework
AD Emirate Laws
and Policies
Outside of
ADAA’s
Scope
Outside of
ADAA’s
Scope
1. Regulatory
Framework
2. Strategy
3. Service Operational
Model
4. Annual Plan
5. Work Manuals
6. IT, Archival and
Continuity
Management
7. Conflict of Interest
Management
1. Issuance of
licenses
2. Renewal of
licenses
3. Revoking of
licenses
4. Inspection and
Quality Control
5. Sanctioning of
violators
1. Performance
Metrics
2. Data Integrity
3. Performance
Reports
Program Management
1. Program Governance
2. Program Planning and Standardization
3. Program Monitoring and Reporting
Project Management
Planning Execution and Monitoring Closeout
1. Project Funding
2. Project Planning
3. Design Management
4. Procurement Management
1. Scope and Contract
Management
2. Cost Management
3. Schedule Management
4. Quality Management
5. Risk Management
6. Health, Safety, and
Environmental
Management
7. Communications and
Stakeholder Management
8. HR Management
1. Facility Closeout
2. Financial Closeout

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
25
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
5. SUPPORTING
ACCOUNTABILITY
ADAA developed 4 types of outputs under
this group to support holding Subject Entities
accountable for their roles and responsibilities,
in addition to training and developing UAE
Nationals and supporting sharing knowledge
and leading practices:
• Accountability Reports
• Advisory
• Special Examination
• ADAA Training Center
5.1 Accountability Reports
ADAA prepares and submits reports to His
Highness the Crown Prince of Abu Dhabi about
its work and carries out other functions, duties
and responsibilities requested by His Highness.
5.2 Advisory
ADAA provides advice to Subject Entities based
on the Subject Entities request and upon
approval of ADAA Chairman. ADAA provides
its advice in accordance with its “Advisory
Provision Methodology” and in light of the
information provided by the Subject Entity.
5.3 Special Examination
ADAA investigates complaints referred to
ADAA and violations discovered when carrying
out its work at Subject Entities and examines
violations investigated by Subject Entities.
The “Special Examination Methodology”
was developed based on best practices and
in accordance with applicable laws and
regulations in the Emirate of Abu Dhabi.
Financial Violation Investigation
ADAA investigates complaints forwarded
to it from His Highness the Crown Prince of
Abu Dhabi and the violations discovered in
the course of its work with the objective of
identifying the nature of these violations and
the individuals responsible in order to hold
them accountable.
ADAA may investigate these violations directly
or assign the responsible officer (Compliance
Officer) at the Subject Entity if he/she has not
investigated the same violation before.
Financial Violation Examination
ADAA’s establishment law requires Subject
Entities to immediately notify ADAA upon
discovering any violation or the occurrence of
any incident that resulted in a violation. It also
obliges these Subject Entities to send a copy of
the investigation documents once completed
supported by the investigation records and
actions taken within a maximum period of ten
days from the date of its issuance.
ADAA examines the investigation documents
sent by the Subject Entity to ensure the
objectivity of the investigation and to determine
the cause of the violation with the corrective
actions taken by the Subject Entity to ensure
eliminating future recurrence of the same
violations.
5.4 ADAA Training Center
ADAA developed 4 types of secondary outputs
under this output with the objective of training
and developing UAE Nationals and supporting
sharing knowledge and leading practices:
• Qualifying Emirati Auditors.
• Research and Knowledge Sharing.
• National and International Representation.
• Seminars and Workshops.
Qualifying Emirati Auditors
Develop specialized training programs with
the objective of contributing to the training
and development of Emirati Auditors and
assisting them to acquire the necessary skills
and knowledge to advance and excel in their
careers. ADAA developed the “Auditors
Development Program” which was designed
as a fast track, all-encompassing opportunity
that takes young Emirati applicants from
entry level Assistant Auditor to a Chief
Auditor over a period of 7 years. Professional
training programs were developed specifically
for Emiratis in the Accounting and Audit
profession such as the Certified Public
Accountant (CPA) examination preparation
course and the Certified Internal Auditor
(CIA) examination preparation course. ADAA
also offers internships on an annual basis
to undergraduates studying to attain a
Bachelor’s Degree in Accountancy, Business
Administration, Economics, or Finance who
may be seeking employment experience and
helping them gain a thorough understanding
of the audit profession and what to expect as a
Financial or Risk Auditor.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
26
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Research and Knowledge Sharing
ADAA set up this output with the objective
of creating awareness of best practices
implemented in the public sector and on an
international level as well as developing a
local knowledge base and resources hub that
contributes to the development of government
performance.
ADAA launched many research and knowledge
sharing initiatives such as:
Research and Knowledge Management
(RKM) Function: ADAA established this
function in 2009 with the objective of
developing, codifying and disseminating
knowledge more effectively across all areas
of ADAA’s operations as well as contributing
towards supporting the research and
knowledge needs and capabilities of Subject
Entities.
Accounting and Auditing Standards Desk
(AASD): ADAA established the AASD to
supervise issuing technical papers in accounting
and auditing and issues a monthly e-newsletter
about the International Financial Reporting
Standards (IFRS) titled “ADAA IFRS Digest”,
a quarterly bulletin on the International
Public Sector Accounting Standards (IPSAS)
and Illustrative IFRS and IPSAS entity and
consolidated and whole of Government
Financial Statements. AASD publications
focus primarily on accounting matters
related to preparation of Subject Entities’
financial statements, and assist in eliminating
inconsistencies in the interpretations of current
accounting standards.
E-maarifa: In 2010, e-maarifa web portal
was launched with the objective of creating a
knowledge platform across the Government
and Subject Entities that enables participants
to share experience and transmit knowledge
more effectively across common operational
functions.
Practice Guides: ADAA identifies best practices
that are internationally recognized and
implemented and issues practice guides for use
throughout the public sector.
National and International Representation
Participate actively in the regulation and
supervision of the accounting and audit
profession through acquiring memberships of
various national and international organizations
that promote and support accountability
and transparency and contribute to the
enhancement of laws and regulations in this
area.
ADAA was the first organization in the Middle
East to become a member of the International
Forum of Independent Audit Regulators (IFIAR)
and to be elected to sit on its Advisory Council.
Seminars and Workshops
Organize seminars and workshops for Subject
Entities on matters that complement ADAA’s
primary role and fall within its area of expertise.
Abu Dhabi Technical Forum (ADTF):
This Forum brings together the UAE based
accounting and audit technical professionals
of the international audit firms. Discussions
focus on current and expected problematic
accounting treatments. The aim of the forum
is to eliminate the local inconsistency in
application of accounting standards by building
consensus on the interpretation of accounting
standards and the acceptability (or not) of
accounting treatments, thereby improving the
comparability and quality of financial reporting
in Abu Dhabi.
Internal Audit Seminar: This event brings
together the heads of the Internal Audit
functions at Subject Entities to discuss
processes, internal controls, policies, issues and
challenges as well as share knowledge of best
practices and developments.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
27
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Arab camel caravan in Bida Zayed - Abu Dhabi

2014 Report
and 2015 Plan
Part 03
1. 2014 Achievements Highlights 30
2. Output Group 1: Financial
Audit and Examination 33
3. Output Group 2: Performance
and Risk Assurance 37
4. Output Group 3: Supporting
Accountability 44
5. 2015 Work Plan 51

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
30
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
1. 2014 ACHIEVEMENTS HIGHLIGHTS
The following is a summary of ADAA’s achievements during 2014:
• Audited the financial statements of the Government of Abu Dhabi in accordance with international
standards and issued the independent audit report with an “unqualified” opinion.
• Performed 73 Financial Examinations (FE) and ensured Subject Entities’ compliance with their budgets
and the requirements of international standards regarding the issuance of the financial statements and
continued monitoring the compliance of Subject Entities with Statutory Auditors Appointment Rules
(SAAR).
• Assessed the Internal Audit function of 52 Subject Entities to ensure the efficiency and effectiveness of
Internal Audit activities.
• Reviewed Procurement functions and issued 22 reports.
• Reviewed services and outputs related to the Sheikh Khalifa Medical City, the program for the
construction of Nuclear Power Plants, the programs for the construction of public housing and the
provision of public housing, and the programs for Al Ain Roads, in addition to the Government
Performance System review.
• Conducted 5 Financial Management Assessments (FMA) to support and strengthen the financial
management function within Subject Entities.
• Participated in International Forum of Independent Audit Regulators (IFIAR) general meetings and its
Advisory Council meetings.
• ADAA joined the “Inspection Workshop Working Group” alongside other members from France,
Germany, Japan, UK and USA. The Inspection Workshop Working Group is responsible for organising
an annual workshop for the IFIAR members to share knowledge and best practices pertaining to audit
regulatory activities, recent inspections findings and audit quality observations.
• Issued the second edition of the Statutory Auditors Appointment Rules (the Rules). The objectives of the
Rules are to regulate the process of appointing the statutory auditors across all Subject Entities and to
ensure that the statutory auditors fulfil their professional duties in accordance with the highest standards
of quality and performance.
• Participated in the 19th World Congress of Accountants (WCOA), at the invitation of the President of
the International Federation of Accountants (IFAC), held in Rome, Italy under the auspices of the IFAC
alongside other professionals from more than 100 countries.
• Participated in the panel discussion held at the College of Government Administration - Oxford University
at the invitation of the College’s Dean, which was hosted to discuss the direct and indirect effects of the
advanced economies’ monetary policies and regulations on emerging and developing economies.
• Participated in the World Bank annual Exchange conference titled “Strengthening Financial Management
Institutions - MENA” in Abu Dhabi.
• ADAA Training Center was approved as a registered sponsor on the National Registry of CPE Sponsors of
the United States of America.
• ADAA’s Chairman was appointed as a member of the High-Level Advisory Group of the International
Federation of Accountants (IFAC).
• ADAA obtained ISO 27001:2005 certification, accredited by Lloyd’s Register Quality Assurance (LRQA)
in UK.
• Continued monitoring the outputs of “Auditors Development Program” related to the training and
development of Emirati Auditors and assisting them to acquire the necessary skills and knowledge
to advance and excel in their careers in addition to providing training courses to obtain professional
certifications.
• Continued the secondment of Emirati employees joining the “Auditors Development Program” to the big
four audit firms.
• ADAA continued to chair the Abu Dhabi Technical Forum (ADTF) unifying accounting interpretations
between ADAA, audit firms and accounting and auditing professionals in the UAE.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
31
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Description Actual Actual Actual Actual Target Actual
2010 2011 2012 2013 2014 2014
Financial Audit and
Examination Group 96 87 80 82 82 82
Performance and Risk
Assurance Group 83 68 86 80 80 80
Total Number of
Reports 179 155 166 162 162 162
Financial Management Assessment (FMA)
Financial Audit (FA)
Procurement Review (PR)
Service and Output Review (SOR)
Internal Audit Function Assessment (IAFA)
Financial Examination (FE)
84 73 70 73
52
5
23
4
5
55
12
19
5
5
62
54
4
10
9
5 14
7
7
5
179 155 166 200
180
160
140
120
100
80
60
40
20
0
2010 2011 2012 2013 2014
73
52
6
22
4
5
162 162
The following figure shows the 824 reports issued during the past five years by output:
Number of reports during the past five years by output
• Issued technical papers that addressed complex accounting matters and unified accounting
interpretations.
• Submitted a number of accountability reports on important issues and examined and investigated
complaints received or violations discovered and issued Special Examination Reports.
• Continued providing advisory and support to Subject Entities upon their request and assisted Subject
Entities to build their capabilities in internal audit.
• Completed research papers, several international benchmarking studies, surveys, and more than 50 other
internal and external research assignments, in addition to continuing the issuance of the monthly Global
Accountability & Transparency Newsletter.
• Enhanced the value of the e-maarifa portal for sharing knowledge and best practices which includes 548
members across 94 entities of Abu Dhabi Government.
• Participated in efforts that led to UAE being selected as an exclusive centre for Qualification in Internal
Audit Leadership (QIAL) exams until 2020.
The following table provides an overview of the number of reports issued by ADAA through the Financial
Audit and Examination Group and the Performance and Risk Assurance Group:

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
32
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
ADAA reports have covered all public sectors. The following figure provides the number of reports
during the past five years by sector:
Further, the following figure provides the total number of reports during the past 5 years by sector:
Human Capital
Social Devt.
Public Admin.
Econo. Devt.
Infra. & Env.
SOE
SOE Sub.
200
180
160
140
120
100
80
60
40
20
0
2010 2011 2012 2013 2014
179 155 166 162 162
63
40 45
66 66
34
15
12
11
14
10
38
14
14
11
8
11
41
23
16
14
16
11
48
19
14
11
10
13
44
17
17
11
16
11
Human Capital
Social Devt.
Public Admin.
Econo. Devt.
Infra. & Env.
SOE
SOE Sub.
56
280
205
88
73
58
64
FMA
FA
PR
SOR
IAFA
FE
275
41
81
373
29 25
Total number of reports during the past five years by output
Number of reports during the past five years by sector
Total number of reports during the past five years by sector
The following figure provides the total number of reports issued during the past 5 years by output:

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
33
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
2. OUTPUT GROUP 1: FINANCIAL AUDIT AND EXAMINATION
This output group is focused on the audit of the financial statements of the Government of
Abu Dhabi, and examination of the financial statements of Subject Entities in accordance with
ADAA methodologies.
This group continues to advise Subject Entities on how to improve the quality of their financial
reporting and specifically in relation to the basis of preparation of their financial statements which
varies according to the Subject Entity’s operations, with a focus on having all Subject Entities prepare
their financial statements using IPSAS accrual basis of accounting or IFRS based on the nature of
their activities. As a result, major changes have occurred to the basis of preparation of the financial
statements of the Subject Entities since 2009.
The following figures demonstrate the change in Government Entities and State Owned Enterprises
(Government Companies) financial statements basis of preparation as recommended by ADAA:
The Financial Audit and Examination Group comprise the following outputs:
• Financial Audit
• Financial Examination
• Financial Management Assessment
2.1 Financial Audit
ADAA completed its audit of the financial statements of the Abu Dhabi Government for the year
ended 31 December 2013 and issued an unqualified opinion. The financial statements were prepared
on a cash basis in accordance with International Public Sector Accounting Standards (IPSAS). ADAA
conducted the audit in accordance with International Standards on Auditing (ISA).
2.2 Financial Examination
During 2014, ADAA examined 73 independent audit reports and the work of statutory auditors,
appointed by Subject Entities. The financial statements and audits covered in 2014 were selected in
accordance with the prioritization criteria developed by ADAA.
60
50
40
30
20
10
0
25
20
15
10
5
0
2014 2014 2008 2008
Government Entities Financial
Statements Basis of Preparation
State Owned Enterprises “SOEs”
(Government Companies) Financial
Statements Basis of Preparation
International
Standards
Other
Standards
7 1
57
20
17
4
39
25
International
Standards
Other
Standards

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
34
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
ADAA’s Financial Examination Comments Summary
ADAA issues its report upon the completion of the financial statements examination and sends
it to those charged with governance at the Subject Entity and to the statutory auditor for future
improvement, implementation, and follow up.
The Financial Examinations continue to highlight a number of areas where improvements are required
including the following:
• Issuing timely financial statements in accordance with relevant circulars and best practice.
• Impairment testing of goodwill and intangible assets in accordance with IFRS/IPSAS.
• Impairment testing of assets if external or internal indications of impairment exist.
• Recognizing revenue in the financial periods to which they relate in accordance with IFRS/IPSAS and
relevant sectors’ best practice.
• Depreciating assets over useful lives in which the assets’ future economic benefits are expected to be
consumed.
• Eliminating profits from transactions with entities under control at the group level in accordance with
IFRS/IPSAS.
• Classification of sale and leaseback transactions as operating or finance leases based on the substance of
transactions and not form.
• Not utilizing a government grant surplus to finance other items they are not designated for.
• Obtaining the necessary approvals to make transfers of appropriations between different budget sections.
• Recognition of all assets legally owned and controlled by Subject Entities in their financial statements.
• Recognition of all assets that generate revenue to Subject Entities in their financial statements.
• Recognition of all assets related to projects and capital initiatives that are financed by the Government of
Abu Dhabi and under the control of Subject Entities in their financial statements.
• Recognition of transactions with the owners in their capacity as owners in the owners’ equity statement
in the financial statements in accordance with IFRS guidelines.
• Presentation of government grants in the financial statements in accordance with final approved budgets.
• Issuing financial statements in Arabic language in accordance with the relevant decrees.
• Estimation of the fair value of investment properties in accordance with the applicable international
standards.
• Sufficiency of provision for doubtful debts.
• Payment of annual bonuses and incentives for employees in accordance with relevant resolutions issued.
• Assessing the recoverability of financial facilities and loans provided to subsidiaries and affiliates that have
indicators of inability to repay.
• Assessing significant differences between generated cash flows from operating activities and profits
recognized in the income statement that are not supported by IFRS.
• Recognition of accumulated losses from foreign investments in accordance with IFRS.
• Presentation of a statement of comparison between budget and actual amounts in the financial
statements in accordance with the relevant resolutions issued.
• Recording amounts as “Due from the Government of Abu Dhabi” in the statement of financial position
only where there is support that the Subject Entities are entitled to receive such amounts.
• Eliminating limitation of liability in the engagement letter of the audit engagement in accordance with
respective laws.
• Audit procedures performed by the statutory auditor to assess the appropriateness of the going concern
for Subject Entities where events or conditions exist that cast doubt about going concern in accordance
with International Standards on Auditing.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
35
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
• Audit procedures performed by the statutory auditor to ensure the validity of assumptions, including the
discount rate, used in the preparation of the estimated cash flows for the valuation of investments and
the calculation of the assets’ fair value.
• Audit procedures to test the existence and completeness of revenue and the presentation of government
grants and funding.
• Audit procedures performed by the independent quality review partner.
• Audit procedures performed by IT audit specialists.
• Fraud risk assessment procedures.
• Audit procedures performed by the statutory auditor to test and rely on the internal controls and
understand the work of internal auditors.
• Audit procedures over compliance with relevant laws and regulations.
• Audit procedures performed in respect of group audits and related party transactions.
• Communication by the statutory auditor with those charged with governance throughout the audit
phases.
• Ensuring that Management, rather than the statutory auditor, is responsible for the preparation of the
financial statements and accounting treatments.
• Active participation of the UAE national audit team member in all stages of the audit engagement.
• The statutory auditor’s commitment to the number of engagement hours they provided in their audit
proposal.
• The extent of the statutory auditor’s independence, in mind and in appearance, from any of the parties
that have an interest in the financial statements in accordance with the Statutory Auditors Appointment
Rules.
All examination comments are set out in detail in the examination reports sent to Subject Entities for
implementation and improvement in the future. These reports include the responses and explanations
provided by the statutory auditors and ADAA’s final conclusions and views on each examination
comment.
Analysis of Financial Examination Comments
ADAA’s comments in the Financial Examination report are classified into “Significant improvement
required”, “Needs improvement” and “Needs improvement - specific exception noted” based on their
nature and significance to the financial statements of Subject Entities and the statutory auditor’s audit
process.
ADAA’s financial examination reports included 1,128 comments in 2014 classified as follows:
Significant improvement required
412 comments in 2014 were classified into this category. These comments require the immediate focus
of the Subject Entities’ management and their statutory auditors since in our judgement they have a
significant effect on the financial statements of the Subject Entities.
Needs improvement
The majority of our 580 comments in this category focus on audit quality resulting from incomplete
documentation of audit procedures performed, such as review of subsequent events. 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.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
36
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Needs improvement – specific exception noted
136 comments in 2014 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 to the nature and extent of
audit procedures performed and/or the financial statements of the Subject Entities.
Generally, these comments related to areas including, but not limited to, specific accounting treatments
resulting from incorrect application of IFRS or IPSAS, financial statements presentation and disclosures,
and insufficient audit procedures in areas affecting various captions of the financial statements such
as inventories, related parties, estimates and fair values and communication with those charged with
governance.
Below are the results of the financial examination reports in 2014:
Below is an analysis of independent audit reports examined by ADAA in 2014, comments raised and
their respective classification (excluding 354 comments addressed only to Subject Entities):
Implementation of SAAR
The objectives of Statutory Auditors Appointment Rules “SAAR” are to regulate the process of appointing
the statutory auditors across all Subject Entities, which includes all Abu Dhabi Government public entities
and state owned enterprises, and to ensure that the statutory auditors fulfil their professional duties in
accordance with the highest standards of quality and performance. The SAAR also aims at developing the
skills and expertise of the UAE Nationals in the audit and accounting fields by requiring statutory auditors
of the Subject Entities to include, as a minimum, one UAE National in the audit team.
During 2014, ADAA continued monitoring the Subject Entities implementation of SAAR. ADAA’s Financial
Examination reports included 131 comments related to the application of statutory auditors’ appointment
and re-appointment procedures.
Statutory
Auditor
Number
of reports
examined
Comments classification
Significant
improvement
required
Needs
improvement
Needs
Improvement-
Specific
exception
noted
Total
Comments
Firm 1 25 45 148 47 240
Firm 2 21 69 152 46 267
Firm 3 13 36 82 21 139
Firm 4 13 45 56 19 120
Firm 5 1 2 5 1 8
Grand Total 73 197 443 134 774
Significant Improvement Required
Needs Improvement
Needs Improvement - Specific Exception Noted
580
412
136
2014 Classification of Financial Examination (1128 comments)

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
37
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
During September 2014, ADAA issued the second edition of SAAR. According to the second edition
of SAAR, Subject Entities shall appoint statutory auditors through circulating requests for audit services
proposals to at least four statutory auditors. Statutory auditors may be reappointed for additional
periods, up to a maximum of three consecutive years, subject to an annual evaluation by the Subject
Entity on the quality of audit services provided and the competence of the audit team while taking into
consideration comments raised by ADAA.
Statutory auditors cannot be retained for a period exceeding four consecutive years, and Subject
Entities can only appoint the same statutory auditor or the audit engagement partner after a cool off
period of four years from the date of the last audit services provided by either of them.
2.3 Financial Management Assessment
In 2014, ADAA conducted “Financial Management Assessments (FMAs)” in 5 different Subject Entities
reviewing their financial capabilities, processes and assisting them in enhancing and strengthening their
finance functions and financial management processes.
After conducting the 5 FMAs, ADAA found that financial management at 1 Subject Entity was at a
“Maturing” stage, while 4 Subject Entities were at an “Emerging” stage based on the assessment
methodology followed by ADAA.
3. OUTPUT GROUPS 2: PERFORMANCE AND RISK ASSURANCE
This output group provides assurance on the efficient, effective and economic utilization of resources
by Subject Entities and their compliance with laws and regulations and governance guidelines.
ADAA aims through this group to enhance Governance practices at Subject Entities since its
establishment; ADAA has urged Subject Entities to establish Audit Committees and Internal Audit
Functions. The following figure demonstrates the development of Audit Committees and Internal Audit
functions within Subject Entities:
The Performance and Risk Assurance Group comprise the following outputs:
• Internal Audit Function Assessment
• Procurement Review
• Service and Output Review
3.1 Internal Audit Function Assessment
During 2014, ADAA issued 52 Internal Audit Function Assessment reports with the purpose of identifying
gaps in performance, in addition to areas for improvement to bring the internal audit role at Subject Entities
to meet benchmark practices. Another key objective from these assessments is to obtain assurance on the
role of the Internal Audit function in highlighting areas of risk exposure at Subject Entities.
60
30
0 Internal Audit Functions Audit Committees
8
51
18
47
2014
Pre 2008
Number of Audit Committees and Internal Audit functions

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
38
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Internal Audit functions were assessed on a series of 6 elements: Independence and Objectivity,
Organization and Emiratization, Methodology, Operations, Technology and Value.
Internal Audit Function Assessment Reports Summary
During 2014, ADAA issued 1,407 recommendations to improve the Subject Entities’ control
environment and for 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, when requested, to the Audit Committees by element along with the
final score of the assessment and key observations noted.
The figure below recaps the distribution of recommendations by each of the element:
3.2 Procurement Reviews
During 2014, ADAA reviewed capital and operational procurement at Subject Entities and issued 22 reports.
Procurement activities were reviewed to ensure the existence of an approved Procurement Regulatory
Framework at Subject Entities (i.e. the existence of approved policies and procedures) and comparing it
with best practices and to measure the compliance of the Subject Entities with the approved regulatory
framework.
Out of 52 Subject Entities, 21 met pass requirements based on the criteria established by ADAA, while
31 did not.
The following figure shows the results of the internal audit function assessments conducted in 2014:
Independence and Objectivity
Organization and Emiratization
Methodology
Operations
Technology
Value
282
364
90
431
68
172
250 500 0
Pass
No Pass
Results of Internal Audit Function Assessment
21
31

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
39
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
The observations noted through the procurement reviews include a number of non-compliance incidents
for which appropriate recommendations were issued and those individuals responsible were held
accountable and disciplinary actions were taken against them where the incidents discovered represented
disciplinary violations.
3.3 Services and Output Review
The Service and Output Review deliverables during 2014 related to various sectors and covered reviews
of activities, operations, business regulations, policies and procedures and best practices implemented
upon the provision of their services and outputs.
Below are summaries of key Service and Output Reviews that were conducted in 2014 with a brief
description of the scope of the review and recommendations by ADAA:
Classification of Procurement Review Observations (1,072 observations)
400
200
0
Procurement Regulatory
Framework
Procurement and
Contracting Practices Record Keeping and
Reporting
185 176
292
0
39
380
Medium Risk
High Risk
These procurement reviews identified a number of observations that were classified either as High
Risk or Medium Risk. The following figure illustrates the classification of observations within the three
elements of a procurement review:
Emirates Palace in Abu Dhabi

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
40
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Sheikh Khalifa Medical City Review
ADAA conducted a review of the services and outputs of the Sheikh Khalifa Medical City in order to:
• Ensure that an approved governance system for Sheikh Khalifa Medical City is in place and is aligned
with best practices.
• Assess and review the extent of compliance with the implemented governance system, and the
efficiency, effectiveness and economic practices through which the services and outputs of Sheikh
Khalifa Medical City are provided, and their alignment with related best practices.
ADAA’s recommendations included the following:
Recommendations
• Establish a mechanism for reviewing and providing assurance regarding the compliance with
legislations, regulations and requirements of the Ministry of Health and the Health Authority
Abu Dhabi, and for reporting on such matters periodically to concerned parties.
• Develop mechanisms to address the key challenges such as providing required clinical staff
within reasonable timeframes through formal and diligent coordination with the concerned
authorities.
• Review the agreement signed with the Hospital’s management and address related concerns.
• Establish a committee to review and analyze the medical cases submitted from different
Government’s hospitals for referring patients for treatment abroad and determine the availability
of such medical services within such hospitals prior to submitting those cases to the medical
committee in charge of the treatment abroad.
• Set a time-bound action plan that includes the current carrying capacity for emergency
facilities compared with the targeted capacity along with the related milestones, and develop a
mechanism to measure the level of completion on a periodic basis.
• Perform detailed analysis to determine the reasons behind the discrepancies between actual
costs and the amounts of claims from insurance providers according to the available system
applied, to ensure the accuracy of the costing system and to highlight areas for improvement
along with potential solutions to enhance the oversight over such expenses.
• Unify the classification of non-clinical complaints, and assure the centralization of all data
related to such complaints.
• Prepare comprehensive periodic studies recapping the various complaints and their distribution
by facility and by specialization/service, where the studies would highlight the root causes
of such complaints based on the outcome of the related investigations. Accordingly, prepare
comprehensive action plans to address these instances and implement the controls that would
ensure the optimal application of those action plans.
• Ensure that complaints reports include the numbers and ratios of patients who have filed
complaints in comparison to the total number of patients, in addition to highlighting the
complaints by patient and by medical specialty.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
41
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Nuclear Stations Construction Program Review
ADAA conducted a review of the services and outputs related to the program for the construction of
Nuclear Stations in order to:
• Ensure that an approved governance system for the program for the construction of Nuclear Stations
is in place and aligned with best practices.
• Assess and review the extent of compliance with the implemented governance system, and the
efficiency, effectiveness and economic practices through which the services and outputs of the
program for the construction of Nuclear Stations are provided, and their alignment with related
best practices.
ADAA recommendations included the following:
Recommendations
• Execute the transformation plan with regard to the list of new committees and assess their
efficiency and effectiveness in light of the responsibilities assigned to each, and of the clear
delineation of those responsibilities versus those of the departments/divisions that support them.
This will help improve the corporate decision making process and accountability.
• Ensure that any future plans to construct additional units (on site at Barakah or elsewhere in the
country) are supported by a time frame that encompasses all the factors that could affect the
successful execution of the project.
• Work closely with the project sponsor (the Shareholder) to obtain the approval of the final
version of the structure and strategy for financing.
• Define and analyze the circumstances that lead to financial surplus for each financial year, along
with the processes for financial planning and the preparation of the annual budget, and engage
actions to improve these processes.
• Ensure that matters related to changes to the scope of the work are addressed on a timely basis,
and that they are not used to perform works outside the scope of the current contract.
• Ensure that the role of managing and overseeing the principal contract is independent from the
projects’ team and management.
• Develop a strategy to mitigate the risk of foreign currency fluctuations and implement it
promptly to help reduce the related risks and consequently the overall cost of the project.
• Review the risk register and ensure that it includes all the key risks and conduct quantitative analysis
to gauge the actual impact of such risks.
• Track independently probable/likely accidents.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
42
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Housing Projects Program Review
ADAA conducted the Housing Projects Program review in order to:
• Ensure that an approved governance system for the program for constructing Housing Projects
is in place and aligned with best practices.
• Assess and review the extent of compliance with the implemented governance system, and the
efficiency, effectiveness and economic practices through which the services and outputs of the
program for the construction of Housing Projects are provided, and their alignment with related
best practices.
•
ADAA recommendations included the following:
Recommendations
• Develop a strategy for the Housing Program that specifies and defines the criteria for “successful
projects delivery”.
• Consider the establishment of a sound governance system to manage decision making through
a clear and precise approach. This includes the establishment of a Portfolio Management
Committee at the level of Building Project Management Services for the sake of the shuffling of
resources across the various management programs. ADAA also recommends the establishment
of a Program Committee at the level of Housing and Infrastructure Function to deal with project
issues such as change requests, before they are submitted to the decision maker(s).
• Establish a Memorandum of Understanding with the concerned authorities responsible for
public housing that includes the operating model of the Housing projects.
• Prepare and approve policies and regulations to manage existing and potential conflicts of
interest, which would provide an appropriate level of assurance that the decision-making
process is not affected, in fact or in appearance, by any form of conflict of interest, and that the
process is impartially conducted.
• Develop a detailed design document to be used in all housing projects, which in turn will
improve controls over design and construction contracts.
• Set a reasonable timeframe for change requests to ensure they are resolved in a timely manner.
• Develop standard operating procedures for changes to the terms of payment.
• Design, develop and implement a program to emiratize technical functions, including a
competency matrix and career development plan.
• Develop a portfolio approach to review the progress achieved on on-going capital projects on a
periodic basis.
Public Housing Review
ADAA conducted a review of the service and outputs related to public housing in order to:
• Ensure that an approved governance system to provide the services and outputs related to public
housing is in place and is aligned with best practices.
• Assess and review the extent of compliance with the implemented governance system, and the
efficiency, effectiveness and economic practices through which the services and outputs related to public
housing are provided, and their alignment with related best practices.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
43
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Roads Program Review – Al Ain Municipality
ADAA conducted a review of Al Ain Roads Program in order to:
• Ensure that an approved governance system for the Roads Program is in place and aligned with best
practices.
• Assess and review the extent of compliance with the implemented governance system, and the
efficiency, effectiveness and economic practices through which the services and outputs related to the
Roads Program are provided, and their alignment with related best practices.
ADAA’s recommendations included the following:
ADAA’s recommendations included the following:
Recommendations
• Report changes made to the Organization Structure and obtain the necessary approvals.
• Develop a comprehensive plan for Roads Asset Management, along with a clear plan to fund the
maintenance program.
• Implement the appropriate controls to avoid changes to the design after completing the
planning stage.
• Review the policy for negotiation with bidders for capital projects, and compare the current
policy with a policy for submitting final financial offers where there is no need to conduct any
negotiations.
• Ensure that financial offers are evaluated by the employees of the Procurement Function instead
of the consultant.
• Conduct a comprehensive review and update of the general specifications to ensure that the
terms are applicable.
• Implement the General Conditions of the Abu Dhabi Construction Contract template clauses for
Provisional Sums.
• Establish a mechanism to ensure that asset value of utility assets is accurately determined
for their transfer from the Government entity implementing the project to the Service Utility
Providers.
Recommendations
• Develop a better forecast of the housing needs in the Emirate of Abu Dhabi (the Demand) over
the long term (at least for 25 years) with the objective of ensuring the provision of adequate
housing in terms of quantity and quality.
• Improve the planning for housing programs by establishing a direct link with the expected
demand for these programs, and prepare a forecast of the budget requirements and timeframes
to verify the possibility to execute these projects.
• Define a “target unit” for each category of both beneficiaries and non-beneficiaries, where by
the definition of the categories of beneficiaries is important and will render the planning for the
offer and demand for the services and programs more achievable based on the different eligibility
criteria to be established (age, status, income), along with the consideration of the demographic
factors of the population of the Emirate of Abu Dhabi.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
44
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
4. OUTPUT GROUP 3: SUPPORTING ACCOUNTABILITY
This output group provides the necessary support to hold Subject Entities accountable for their roles
and responsibilities and fulfilling them in addition to training and developing UAE Nationals and
supporting sharing knowledge and leading practices.
Government Performance System Review
ADAA conducted a review of the services and outputs related to the Government Performance System
in order to:
• Ensure that an approved governance system for Government Performance is in place and is aligned
with best practices.
• Assess and review the extent of compliance with the implemented governance system, and the
efficiency, effectiveness and economic practices through which the services and outputs related to
Government Performance system are provided, and their alignment with related best practices.
ADAA’s recommendations included the following:
Recommendations
• Develop a comprehensive framework that identifies the desired objectives of the performance
management system, and which determines the roles, responsibilities and authorities of both the
management of the government performance systems and of the entities concerned.
• Mandate all government and state owned entities to prepare reports related to their targeted
performance “expected”, and to present them as part of their annual plans and budgets; also,
mandate those entities to provide reports on their actual performance, that are audited by their
statutory auditors, thus providing concerned stakeholders with the necessary validation and
assurance on the information included in such reports.
• Establish a link between the operational framework for the financial system and the operational
framework for the performance management system.
• Develop and adopt a classification of government and state owned entities according to the
sectors they operate in, so that it can be used for the purposes of the preparation of financial
and performance reports at the same time.
• Prepare and implement standards for the preparation of the targeted performance reports and
for the preparation of actual performance reports for the Government, government entities, and
state owned entities. Also, develop a formal methodology and approach for the preparation of
government performance reports.
• Prepare reports on the targeted performance “expected” of the Government, government
entities, and state owned entities, and prepare the "Government's Performance Report"
according to approved accounting and performance standards that are auditable, noting that
the report would encompass information related to the performance of all government and
state owned entities.
• Include in the "Government Performance Report" a comparison between the actual performance
and the targeted performances, and ensure that there is a clear distinction in the report between
outputs and outcomes as it can be used to assess the feasibility of outputs (programs, projects and
services) provided by an entity in achieving the outcomes and desired goals.
• Measure the efficiency, effectiveness and economy of actual performance based on the four
parameters for performance (cost, quantity, quality, time).
• Request the preparation and presentation of the status of actual performance of the
Government, government entities, and state owned entities, in the form of a predefined
template in terms of its form, content, goal and scope of predetermined use, to be prepared
in accordance with approved standards, and signed and endorsed by those charged with
governance, instead of presenting just information and data.
• Link the government performance electronic system with government enterprise resources
planning system.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
45
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
The Supporting Accountability Group comprises
the following outputs:
• Accountability Reports
• Advisory
• Special Examination
• ADAA Training Center
4.1 Accountability Reports
In 2014, a number of reports were issued under
this output on matters related to ADAA’s work;
among these reports are the reports submitted
to His Highness the Crown Prince such as the
Audit Report on the Consolidated Financial
Statements of the Government of Abu Dhabi,
the Accountability Report that ADAA completes
in the first quarter of each year and the report
showing the results of financial examinations of
the State Owned Enterprises.
4.2 Advisory
ADAA provides advice, in the areas that fall
within its expertise and when it does not
conflict with its independence, upon receiving
requests from Subject Entities and after the
approval of the Chairman of ADAA. Below
are examples of such advisory work provided
during 2014:
Accounting Technical Advice
ADAA publishes accounting technical papers
to provide guidance to Subject Entities on
particular topics. These papers contributed
to the improvement of both the quality and
consistency of International Financial Reporting
Standards (IFRS) and International Public Sector
Accounting Standards (IPSAS) reporting and
understanding. To date technical papers have
been published covering: Leases, Fair Value
Measurement, Investment Property, IFRS
Disclosures, Investment Entities, Related Party
Disclosures and Depreciation.
Internal Audit Function Establishment
support
ADAA provided guidance, tools, methodology
and advice to support a smooth and effective
establishment of the Internal Audit role at a
number of Subject Entities.
In 2014, ADAA completed 10 installations of
the e-Governance Portal along with providing
the necessary training and setting the
methodology.
4.3 Special Examination
In 2014, ADAA received 15 complaints that
were examined as per the “Special Examination
Methodology” outlined by ADAA.
All examinations conducted by ADAA in 2014
were generally identified as violations relating
to the following:
• Abuse of power and conflict of interest.
• Violation of procurement laws, regulations
and procedures.
• Mismanagement and negligence in managing
public money.
• Breaching code of conduct.
• Imprest embezzlement.
During 2014, ADAA continued to encourage
Subject Entities to establish a “Compliance
Officer” role within the Internal Audit Function
whose main tasks include the following:
• Handle the receipt of complaints related to
suspected breaches of laws, regulations or
code of conduct.
• Examine the complaints received to obtain
further information and evidence.
• Prepare a memo on the outcome of the
examination and make recommendations to
the competent authority within the Entity to
either:
– Dismiss and file the matter without further
action due to inaccuracy, absence of a
violation, insignificance or any other dismissal
reasons.
Or
– Refer the matter and violators to the Legal
Department or relevant investigation
committee within the Entity for investigation,
in accordance with applicable laws,
regulations and procedures.
• Maintain an annual log where all complaints
received are registered.
• Inform ADAA as soon as any violation is
discovered or any incident that results in
a violation and refer the results of their
investigations to ADAA supported with the
investigation reports and decisions to be
taken in accordance with Law number 14 of
2008 pertaining to the establishment of
Abu Dhabi Accountability Authority.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
46
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Case 1
• The case relates to an accounting supervisor working for a government department who, taking
advantage of his position, was embezzling sums of money from petty cash which was under his
custody. The scheme involved pulling out the original invoice from its reimbursement attachments
after being paid and claiming it for reimbursement for a second time and taking the cash for
himself. Accordingly, it was recommended to the department to refer the case to the public
prosecutor’s office which began investigation and referred the case to the competent court. The
court issued its decision against the defendant to return the embezzled sum of money and fined
him an additional equal amount along with imprisonment for five years and deportation from the
country.
Case 2
• The case concerned an employee in one of the government company’s overseas offices who
embezzled a sum of money and concealed the incident by posting false periodic journal entries
in the entity’s accounting system. The entity conducted an investigation and concluded the
termination of the official’s employment and referred him to the competent authorities.
4.4 ADAA Training Center
ADAA created an integrated approach to
establishing this output group to fulfil its
objective of training and developing UAE
nationals and supporting sharing knowledge
and leading practices.
The outputs defined under this group are:
• Qualifying Emirati Auditors.
• Research and Knowledge Sharing.
• National and International Representation.
• Seminars and Workshops.
Below is a summary of significant examinations and investigations conducted during 2014:
Video: Emirati Auditors
Development Program
Al Maqta Bridge in Abu Dhabi

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
47
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
4.4.1 Qualifying Emirati Auditors
ADAA further developed specialized training programs with the objective of contributing to the
training and development of Emirati Auditors and assisting them to acquire the necessary skills
and knowledge in order to advance and excel in their careers. ADAA is managing the “Auditor
Development Program” which is designed as a fast track, all-encompassing opportunity that takes
young Emirati applicants from entry level Assistant Auditor to a Chief Auditor over a period of 7 years.
The below figure demonstrates the career path under the “Auditor Development Program”:
Assistant Auditor
Years in Service
Position with ADAA
Optimum progression
within ADAA
Auditor
Senior Auditor
Executive
Auditor
*Chief
Auditor
*Must at this stage hold a professional certification for advancement to Chief Auditor
i.e., CPA/CIA
1 2 3 4 5 6 7

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
48
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
During 2014, 13 Emirati graduates were
recruited into the program bringing the total
number of graduates to 59 since its inception.
The program includes on-the-job training,
secondments to the big 4 audit firms as well as
simultaneously offering professional certifications
in the accounting and audit profession such as
the Certified Public Accountant (CPA) and the
Certified Internal Auditor (CIA). To help facilitate
this development, ADAA has hired a full time
lecturer to provide preparation courses in these
subjects which has already proven beneficial
with the Emirati Graduates obtaining a number
of passes in various examinations.
4.4.2 Research and Knowledge Sharing
ADAA set up this output with the objective
of creating awareness of best practices
implemented in the government public
sector and on an international level as
well as developing a local knowledge base
and resources hub that contributes to the
development of government performance.
Many initiatives were launched under this output
such as:
The Research and Knowledge
Management (RKM) function
In 2014, the Research and Knowledge
Management (RKM) function at ADAA
developed several international benchmarking
studies and research papers on topics such
as whistleblowing in the public sector and
government performance management systems.
Additionally RKM undertook 50+ other research
assignments and issued a monthly Global
Accountability & Transparency Newsletter.
Accounting and Auditing Standards
Desk (AASD)
ADAA seeks to contribute to improve the
quality of financial reporting for Abu Dhabi
Government Business Enterprises and the Public
Sector through the issuing of publications
and comment letters which highlight best
practice in accounting, financial reporting and
governance matters.
ADAA issues a monthly IFRS Digest, a quarterly
IPSAS Bulletin and twice yearly an Audit
Committee Update. The publications feature
ADAA’s hot accounting and financial reporting
topics, what’s new from the IASB, the IPSASB
and the accounting profession.
ADAA publishes illustrative consolidated and
entity financial statements for IFRS and IPSAS
reporters.
The AASD provides comment letters to the
IPSASB and IASB on their exposure drafts of
new international public sector accounting
standards and international financial reporting
standards. The comment letters are published
on the IPSASB’s and IASB’s websites.
E-maarifa
ADAA launched the ‘e-maarifa portal’ in
2010 with the objective of creating a virtual
community of like-minded Abu Dhabi
Government employees with shared interests,
knowledge and expertise. This platform allowed
Abu Dhabi Government employees to share
their knowledge and best practices across
government entities and benefit from the rich
repository of expert views and documents on
several topics.
The Abu Dhabi Government Internal Audit
Community on e-maarifa is one such
community which now connects 548 Internal
Audit professionals across 94 entities of
Abu Dhabi Government.
4.4.3 National and International
Representation
ADAA continued to put in efforts to explore
new opportunities that contribute to enhancing
accountability and transparency across the
Government and the implementation of best
practices.
International Forum of Independent
Audit Regulators
ADAA became the first organization in the
Middle East and North Africa to acquire
membership of the International Forum of
Independent Audit Regulators (IFIAR) in early
2009 and to host the IFIAR Plenary Meeting in
Abu Dhabi in 2010.
During 2014, ADAA participated in the Plenary
Meeting of the IFIAR, held in Washington DC,
United States of America over the period from 7
to 10 April 2014. The highlight of the meeting
this year was around the Members’ approval
to continue developing a proposal to establish
an IFIAR permanent secretariat, a matter that
was initially proposed by ADAA in 2011 and
has been continuously promoted by it since.
The meeting also discussed topics relevant to

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
49
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
audit regulations today including the evolving
economic and business model of audit firms and
audit quality indicators. Members also approved
IFIAR communications policy to enhance external
and internal communications and to facilitate
IFIAR’s ability to comment on standard setting
projects and continued the ongoing exploration
of the potential of a multi-lateral arrangement
for information-sharing for investigation and
enforcement activities.
After the meeting IFIAR issued its second
Inspection Findings Survey which summarized
key inspection results from audits of public
companies, including systemically important
financial institutions, submitted by IFIAR
Members. The Survey reflected continued
deficiencies in key areas of audit, and expressed
concerns about the implications of the findings
for audit quality. The survey resulted in 1,260
total findings from 989 inspected audits of listed
public interest entities, or public companies, and
highlighted the following deficiencies:
1. Auditing fair value measurements accounted
for 17 percent of total findings;
2. 12 percent of the findings relates to internal
control testing; and
3. Procedures to assess the adequacy of financial
statements presentation and disclosures
accounted for 9 percent of the findings.
During the year, ADAA also participated in
the IFIAR interim meeting held in Toronto,
Canada as a member of the IFIAR Advisory
Council as ADAA was elected to be a member
of the IFIAR Advisory Council during the 9th
meeting of IFIAR held in Berlin, Germany in
April 2011 becoming the first organization in
the Middle East and North Africa to be elected
to the Advisory Council. The interim meeting
was held in the attendance of the IFIAR Chair,
Vice Chair, Advisory Council members and
Working Groups chairs to discuss the progress
of the Working Groups projects and other
internal matters related to the work of IFIAR in
preparation of the IFIAR’s Plenary Meeting to be
held in Taipei in April 2015.
World Congress of Accountants
In November 2014, ADAA participated in the
World Congress of Accountants (the Congress)
in Rome, Italy. The Congress was held under
the auspices of the International Federation of
Accountants (IFAC), the worldwide organization
for the accountancy profession. This was the
19th World Congress of Accountants and was
attended by almost 4,000 professionals from
more than 100 countries.
The Congress is a planetary event for the
accounting profession, taking place every four
years and involving professionals from all over
the world, who meet for four days and discuss
the global future of the accounting profession.
The theme chosen for the Congress “2020
VISION: Learning from the past – Building the
future” perfectly summarizes the objective of
the speakers – more than 200 from all over the
world – through highlighting the status of the
profession, but above all, what the future might
bring and what the profession could achieve in
the global society.
Participation in the panel discussion
at the College of Government
Administration - Oxford University
ADAA’s Chairman, along with 28 scientists,
academic experts and practitioners, participated
in a panel discussion at the College of
Government Administration - Oxford University
at the invitation of the College’s Dean, which
was hosted to discuss the direct and indirect
effects of monetary policies and regulations
in advanced economies on emerging and
developing economies. The panel discussed the
dilemmas posed by the monetary and regulatory
policies and the various reaction methods of
the emerging and developing countries in order
to identify ways to improve the global financial
system to better reflect the interests of these
countries.
ADAA Training Center approved as
a registered sponsor on the National
Registry of CPE Sponsors of the USA
During 2014, ADAA Training Center was
approved as a registered sponsor on the National
Registry of Continuing Professional Education
(CPE) Sponsors of the United States of America.
“We, in the United Arab Emirates, can relate to the theme chosen for the Congress
as our founding father always said: ‘He who does not know his past will not have
a present or a future.’ ”
ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
ADAA’s Chairman in the 19th World Congress of Accountants

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
50
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Obtaining such approval affirms ADAA’s
commitment to the delivery of high quality
continuing professional education in compliance
with the Statement of Standards for CPE
Programs jointly published by the AICPA and
NASBA as well as the program requirements of
the National Registry of CPE Sponsors.
Appointing ADAA’s Chairman as a
member in the High-Level Advisory
Group of IFAC
In 2014, International Federation of Accountants
(IFAC) appointed ADAA’s Chairman as a member
of the High-Level Advisory Group of IFAC,
alongside Mr. David Walker, former chair of the
Government Accountability Office in the United
States of America and a former presidential
candidate, and Mr. Chegl Larson, an advisor for
the Organization of Economic Cooperation and
Development and the former Auditor General of
Sweden. The Council leads the “Accountability
Now” initiative launched recently by IFAC in
order to encourage governments in developed
and developing countries on the application
of the highest transparency and accountability
standards and promote awareness of the need to
strengthen public sector management and public
money reports due to the importance of financial
management in the public sector in achieving
the target of global growth and improve living
standards and raise public confidence. The
Group will urge these countries to apply high-
quality accounting standards in the public sector
that supports transparency and accountability
which ensures Decision-makers management
of public funds in a responsible manner. IFAC is
comprised of over 179 members and associates
in 130 countries and jurisdictions, representing
approximately 2.5 million accountants in public
and private sectors.
“The achievement of the Government
of Abu Dhabi in developing the
public policy of the Emirate in which
our Leadership has adopted the
highest standards of transparency
and accountability was one of the
main reasons why the government
of Abu Dhabi is now an example
to be followed. The application of
International Public Sector Accounting
Standards, which is part of executing
the public policy of the Emirate, placed
the Government of Abu Dhabi at the
forefront of the world’s governments in
this field.”
ــــــــــــــــــــــــــــــــــــــــــــــــــــــــ
ADAA Chairman, on the occasion of the
joining the IFAC’s High-Level Advisory
Group
Attending the UAE National Student
Forum in the United States of America
For the third year in succession, ADAA attended
the UAE National Student Forum in Washington
DC, USA. This is an event hosted by the UAE
Embassy in the United States of America for UAE
National students resident there. It provides an
opportunity for them to become familiar with
potential employers. This exposure enables us to
explain not only the role of ADAA but also the
ADP program.
4.4.4 Seminars and Workshops
ADAA conducted workshops and seminars for
Subject Entities and the public on matters that
complement its primary role and that fall within
its area of expertise.
ADAA’s Head of Accounting and Auditing
Standards Desk (AASD) chairs Abu Dhabi
Technical Forum (ADTF), comprising ADAA and
the accounting and audit technical partners of
the audit firms.
The ADTF has met 29 times since inception
in 2010 and reviewed more than 190
accounting technical papers covering topics
such as impairment, fair value, goodwill,
service concession assets, asset recognition,
depreciation, principal and agent, government
contributions, related parties identification
and disclosure, selection and application of
accounting policies, disclosure of sources of
estimation uncertainty, common control
transactions, leases, provisions, investment
property, onerous contracts, and professional
accountants’ code of ethics.
During 2014, ADTF hosted a Retreat attended by
the Middle East Managing and Audit Partners of
the big audit firms.

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
51
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Jebel Hafeet in Al Ain - Abu Dhabi
5. 2015 WORK PLAN
Below are the highlights of ADAA’s 2015 annual
plan:
• Audit the financial statements of the
Government of Abu Dhabi in accordance with
international standards and issue the audit
report within the time frame specified in the
Financial Management Law.
• Conduct examinations of the financial
statements of more than 70 Subject Entities
and enhance and unify Subject Entities’
financial statements basis of preparation
according to Subject Entities’ operations and
aligned with international standards. Review
Subject Entities compliance with budget and
SAAR.
• Assess the Internal Audit function of more
than 50 Subject Entities and continue to
provide support to improve the role of internal
audit.
• Conduct capital and non-capital Procurement
Reviews on more than 20 Subject Entities.
• Conduct a number of Service and Output
Reviews with high priorities.
• Prepare accountability reports and provide
advisory with regards to the preparation of
drafts for governance systems and regulations.
• Examine complaints referred to ADAA or
discovered during its work at Subject Entities
and issue Special Examination Reports
accordingly.
• Address complex accounting matters and
unify interpretations of financial reporting
standards through the Abu Dhabi Technical
Forum.
• Strengthen the financial management
function within Subject Entities and issue
Financial Management Assessments reports.
• Continue to provide advice to Subject Entities,
when requested.
• Enhance the role of the Research and
Knowledge Management function at ADAA
and continue engagement with national and
international auditing bodies through seeking
memberships in appropriate organizations.
• Host the meeting of the Public Interest
Oversight Board (PIOB) in Abu Dhabi during
March 2015.
• Participate in the International Forum of
Independent Audit Regulators (IFIAR) general
meetings in 2015 in addition to the meetings
of the IFIAR Advisory Council.
• Monitor the outputs of the “Auditor
Development Program” and continue the
secondment of Emirati employees joining the
program to the big audit firms.
• Supervise ADAA’s head office building project.

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
52
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015

About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
53
ABU DHABI ACCOUNTABILITY AUTHORITY
ACCOUNTABILITY REPORT 2015
Financial Statements
together with
Independent
Auditor’s Report
For the year ended
31 December 2014
Part 04

About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
Abu Dhabi Accountability Authority
FINANCIAL STATEMENTS
For the year ended at 31 December 2014
Table of Contents
Independent auditor’s report addressed to the Chairman of
Abu Dhabi Accountability Authority
Statement of financial position
Statement of financial performance
Statement of changes in Government of Abu Dhabi account
Statement of cash flows
Statement of comparison of budget and actual amounts
Notes to the financial statements
Page
1
2
3
4
5
6
8

Page 1 of 16
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
Independent auditor’s report
The Chairman
Abu Dhabi Accountability Authority
Abu Dhabi
United Arab Emirates
Report on the Financial Statements
We have audited the accompanying financial statements of Abu Dhabi Accountability Authority
(“the Authority”), which comprise the statement of financial position as at 31 December 2014, and
the statement of financial performance, statement of changes in Government of Abu Dhabi Account,
statement of cash flows, and the statement of comparison of budget and actual amounts for the year
then ended, and notes comprising a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with International Public Sector Accounting Standards (“IPSAS”) and for such internal control
as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on our judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In
making those risk assessments, we consider internal control relevant to the entity’s preparation and
fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Authority as at 31 December 2014 and its financial performance and its cash flows for the
year then ended in accordance with International Public Sector Accounting Standards.
KPMG Lower Gulf Limited
Tamer Ragheb
Registration No.: 797
Abu Dhabi, United Arab Emirates 25 January 2015
KPMG Lower Gulf Limited
Abu Dhabi Branch
P. O. Box 7613
Abu Dhabi
United Arab Emirates
KPMG Lower Gulf Limited, registered in the UAE and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Telephone: +971 (2) 4014 800
Telefax: +971 (2) 6327 612
Website: www.ae-kpmg.com

Page 2 of 16
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
The financial statements were authorised for issue in accordance with a resolution of the Authority’s
Chairman on 25 January 2015.
The attached notes 1 to 15 form part of these financial statements.
The independent auditor’s report is set out on page 1.
Mohammad Al Mehairi
Director of Finance
Seham Al Hammadi
Executive Director Support Services
Riyad Al Mubarak
Chairman
Abu Dhabi Accountability Authority
STATEMENT OF FINANCIAL POSITION
As at 31 December 2014
Notes 2014
AED 2013
AED
ASSETS
Current assets
Cash and cash equivalents 4 246,452 662,163
Government of Abu Dhabi account 5,12 16,357,406 12,596,961
Prepayments and other receivables 6 5,734,484 6,885,582
22,338,342 20,144,706
Non-current assets
Intangible assets 8 1,232,699 435,428
Property and equipment 7 69,421,048 36,310,723
70,653,747 36,746,151
TOTAL ASSETS 92,992,089 56,890,857
LIABILITIES
Current liabilities
Accrued expenses and other payables 9 7,249,061 9,312,924
Deferred government grant related to assets 5 735,640 932,991
7,984,701 10,245,915
Non-current liabilities
Deferred government grant related to assets 5 60,018,005 26,678,040
Retention payables 3,228,745 1,285,967
Employees’ end of service benefits 10 21,760,638 18,680,935
85,007,388 46,644,942
TOTAL LIABILITIES 92,992,089 56,890,857

Page 3 of 16
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
The attached notes 1 to 15 form part of these financial statements.
The independent auditor’s report is set out on page 1.
Notes 2014
AED 2013
AED
Revenue
Revenue from non-exchange transaction
Contributions from Government of Abu Dhabi 5, 12 125,285,836 111,197,373
Revenue from exchange transaction
Other income 1,386,698 2,647,167
Total revenue 126,672,534 113,844,540
Expenditures
Employees’ salaries and other benefits 111,336,821 102,654,191
Depreciation and amortisation 1,008,968 1,275,169
General and administrative expenses 11 14,326,745 9,915,180
Total expenditures 126,672,534 113,844,540
Abu Dhabi Accountability Authority
STATEMENT OF FINANCIAL PERFORMANCE
For the year ended 31 December 2014

Page 4 of 16
About ADAA
ADAA Outputs
2014 Report &
2015 Plan
2014 Audited
Financial Statements
Notes 2014
AED 2013
AED
Balance at 1 January 5 (12,596,961) (12,886,218)
Funds received during the year related to operating
and capital expenditures 5 157,158,565 131,918,762
Funds received during the year related to
capital expenditures and transferred to deferred
government grant 5 (34,151,582) (20,484,460)
Refund to Government of Abu Dhabi during the
year 5 (2,490,560) (1,222,841)
Contribution related to operating expenditures
recognised as revenue during the year 5 (124,276,868) (109,922,204)
Balance at 31 December 5 (16,357,406) (12,596,961)
The account is classified in the statement of financial position as follows:
Current Assets
Government of Abu Dhabi account 5 16,357,406 12,596,961
The attached notes 1 to 15 form part of these financial statements.
The independent auditor’s report is set out on page 1.
Abu Dhabi Accountability Authority
STATEMENT OF CHANGES IN GOVERNMENT OF ABU DHABI ACCOUNT
For the year ended 31 December 2014

Page 5 of 16
About ADAA

ADAA Outputs

2014 Report &
2015 Plan

2014 Audited
Financial Statements
Abu Dhabi Accountability Authority
STATEMENT OF CASH FLOWS
For the year ended 31 December 2014
Notes 2014
AED 2013
AED
OPERATING ACTIVITIES
Adjustments for:
Depreciation and amortisation 1,008,968 1,275,169
Provision for employees’ end of service benefits 10 3,507,728 3,034,047
Gain on sale of property and equipment (16,200) (18,000)
Contributions related to operating expenditures
recognised as revenue during the year 5 (124,276,868) (109,922,204)
Deferred government grant related to assets
recognised as revenue during the year 5 (1,008,968) (1,275,169)
Decrease / (Increase) in prepayments and other
receivables 1,151,098 (1,223,448)
(Decrease) in accrued expenses and other payables (886,067) (1,363,845)
Government contributions received during the year
net of refund 154,668,005 130,695,92

المصدر الرسمي ↗