Accountability Report 2019

___
Accountability Report
2019

Today, we stand at a threshold
of a new era, whose ultimate
objective is to entrench the
rule of law and due process,
accountability, transparency
and equal opportunity.

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

In the UAE, our people are
our most cherished assets,
and therefore we are bent on
maintaining our long-running
investment in building qualified
human cadres capable of steering
the helm of our country and
addressing future challenges.

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

1. Chairman’s Message 2
2. ADAA History 5
3. Objectives & Responsibilities 11
4. Strategic Framework 15
5. Subject Entities 21
6. Audit Methodology 27
7. Summary of Achievements During 2018 31
8. ADAA Programs During 2018 37
9. 2019 Workplan 50

Accountability Report
2.0 ADAA HISTORY
Abu Dhabi Accountability Authority
Accountability Report 2019 3

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.
1997
The role of ADAA was
activated with the
issuance of Decree No.8
of 1996 appointing His
Excellency Mohammed
Al Marar as the first
Chairman.
1996
In July 2004, Law No.6
of 2004 was issued to
give ADAA broader
authorities.
2004
2
Abu Dhabi Accountability Authority
Accountability Report 2019 4
2.1 ADAA HISTORY
ABOUT ADAA

In February 2017, His
Highness Sheikh Khalifa
Bin Zayed Al Nahyan, in
his capacity as Ruler of
Abu Dhabi, issued an
Emiri Decree appointing
His Excellency Hamad
Mohammad Al Hurr Al
Suwaidi as Chairman
of ADAA.
In March 2020, His
Highness Sheikh Khalifa
Bin Zayed Al Nahyan, in
his capacity as Ruler of
Abu Dhabi, issued an
Emiri Decree appointing
Humaid Obaid Khalifa
Abushibs as Chairman
of ADAA.
2017
2008 2020
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.
Abu Dhabi Accountability Authority
Accountability Report 2019 5

ADAA has re-designed its organisational structure and operating model to
fulfil its responsibilities and achieve its strategic objectives efficiently and
with the highest quality.
Late in 2019, ADAA implemented a new sector based structure and cultural transformation
initiatives to better align our organization with the Abu Dhabi Government’s strategic
objectives and priorities.
Chairman
Deputy Chairman
Chairman’s Office
Internal Audit
Legal Affairs
Strategy & Performance
Audit Group Support Services Group
ADAA’s people are our most important
resource. They include top-tier professionals
from multicultural backgrounds and are
unified by ADDA’s vision, mission and values.
ADAA is committed to developing and
attracting Emiratis to the Accounting and
Audit Profession. The Authority has defined
career paths and growth plans for all
employees and promotes the success of ADAA
as one unified and collaborative team. ADAA’s
people set the example of in professionalism,
integrity, and independence.
2.1 OUR ORGANISATION STRUCTURE
2.2 OUR PEOPLE
Abu Dhabi Accountability Authority
Accountability Report 2019 6

All ADAA employees commit to the oath before
the ADAA Chairman upon joining the Authority
as per Article (9) of ADAA law of establishment:
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.
Abu Dhabi Accountability Authority
Accountability Report 2019 7

Accountability Report
3.0 OBJECTIVES & RESPONSIBILITIES
3.1 OBJECTIVES
3.2 RESPONSIBILITIES
Abu Dhabi Accountability Authority
Accountability Report 2019 9

> Audit the Government
consolidated financial reports and
subject entities’ 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.
> Ensure compliance of subject
entities with laws, regulations and
rules and governance guidelines.
> Investigate complaints referred
to ADAA, or violations discovered
by it, and examine violations
investigated by Subject Entities.
> Provide advice and
recommendations and perform
other procedures and services
to Subject Entities, as the ADAA
Chairman deems reasonable and
a p p ro p ri a te .
> Train and qualify UAE National
graduates of universities and
institutions.
> Issue regulations, rules, guidelines
and standards that enable ADAA to
exercise its functions and duties
by a resolution of the Chairman.
> Carry out any other functions and
duties requested by the Crown
Prince.
> Ensure public resources and
funds are managed, collected and
expended efficiently, effectively
and economically.
> Ensure accuracy of the financial
reports and compliance of Subject
Entities with relevant laws, rules
and regulations and governance
guidelines.
> Promote accountability and
transparency principles at the
Subject Entities.
Law number 14 of 2008 defines ADAA’s objectives and responsibilities as
follows:
3.1 OBJECTIVES
3.2 RESPONSIBILITIES
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OBJECTIVES &
RESPONSIBILITIES
Abu Dhabi Accountability Authority
Accountability Report 2019 10
3

Abu Dhabi Accountability Authority
Accountability Report 2019 11

Accountability Report
4.0 STRATEGIC FRAMEWORK
4.1 VISION, MISSION & VALUES
4.2 STRATEGIC PILLARS
4.3 GOVERNANCE
Abu Dhabi Accountability Authority
Accountability Report 2019 13

4.2 STRATEGIC PILLARS
ADAA developed a strategy that enables
the delivery of its mandate to ensure
that the services provided support the
Government and the decision making
process.
In its strategy, ADAA identified four strategic
pillars as shown in the figure below:
4.1 VISION, MISSION & VALUES
4Pillars
6Objectives
16Programs
PILLAR OBJECTIVE PROGRAM
Transparent
and Accurate
Financial
Reporting
Provide objective
opinion on Public Entity
Financial Statements
and reports and provide
assurance that External
Auditors procedures
and professional
judgements are free from
Management influence.
1
Enhanced Financial Examination Report for all
Subject Entities to ensure compliance with the
rules of appointing auditors.
2 Financial audit of Departments and other Central
Government Subject Entity Financial Statements.
3
Test of internal controls to verify compliance with
all applicable laws and regulations relevant to the
Financial Statements.
MISSION
“Promoting accountability
and transparency through
objective assurance and
advisory services”
VALUES
Independence
Integrity
Professionalism
VISION
“Excel in safeguarding
public funds”
4
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STRATEGIC
FRAMEWORK
Abu Dhabi Accountability Authority
Accountability Report 2019 14

PILLAR OBJECTIVE PROGRAM
Performance
and
Compliance
with Laws and
Regulations
Provide assurance
of Government
progress in achieving
Abu Dhabi Policy and
Plans outcomes and
provide advice on
improving performance.
4
A “Compliance Review” service for evaluating
Subject Entity Function’s compliance with laws,
regulations and by-laws.
Verify compliance of
Subject Entities with
laws, regulations, rules
and approved guidelines.
5
Develop a service for evaluating progress of
Subject Entities against Abu Dhabi Policy and Plan
goals.
6
Update current Service and Output Reviews to
Performance Reviews and incorporate alignment
to outcomes and, if applicable, Abu Dhabi Policies
and Plans
7
Expand Performance Reviews of Capital Projects to
allow the evaluation of the projects at the Project
Planning and Feasibility Stages
8
Develop a combined Performance and Compliance
Review to provide assurance on Government
Investments in State Owned Enterprises
Integrity
and
Accountability
Ensure that a
Government wide
approach for managing
and reporting financial
and administrative
violations exists and
Leadership is informed of
anti-corruption activity.
9 Establish and manage a Complaint Management
Solution
10 Perform Standardized Examinations of complaints
referred to ADAA, and violations that it discovers
11
Conduct the necessary reviews to verify the
existence of robust governance structures within
select Subject Entities
Promote a highly Ethical
culture within the Public
Sector by championing
awareness, and issuing
guidelines.
12
Issue guidance and related publications, facilitate
training and provide awareness on the risks of non-
compliance
13
Conduct preventive, detective, and predictive
analyses of the various aspects of complaints and
violations
14
Conduct regular surveys across the government
spectrum to gauge the level of awareness of Civil
Service employees on financial and administrative
violations and fraud
Technical
Knowledge
Develop UAE
Nationals technical
and management
capabilities in the
audit field.
15 Upgrade ADAA Academy course offerings
16
Extend ADAA courses to Financial and Audit
professionals in our Subject Entitiesprofessionals
in our Subject Entities
Abu Dhabi Accountability Authority
Accountability Report 2019 15

Leadership
ADAA ensures that all its processes and
operations adhere to the utmost principles
of transparency. ADAA Chairman regularly
communicates with employees, through a
variety of direct and indirect channels, to
promote, explain and enhance understanding
of the overall strategy, set the tone, and
emphasise on ADAA’s strategic direction
and business priorities, as well as ADAA’s
yearly plan and its performance. The Annual
Meeting held at the beginning of every
year and periodic management meetings
to employees, cover different topics of
importance and impact on ADAA’s work and
verify that the operational activities are in
line with the annual plan, and are consistent
with the vision and overall strategy of the
Abu Dhabi Government.
Institutionalization
ADAA’s strategic planning framework
is based on its strategic priorities and
work methodologies for every program
and service provided, in accordance with
international best practices. These strategies
and methodologies are constantly reviewed
and updated to ensure their validity and
relevance to the current needs of Abu Dhabi
and Subject Entities.
Performance Management
ADAA measures its performance against
the six strategic objectives identified in our
revised 2019 Strategy. These measures are
divided into two categories:
> Impact Measures: to evaluate how the
ADAA’s programs and services affect the
Government and Subject Entities. We also
include ADAA’s contribution to international
bodies to support advancements in the field
of financial, performance and compliance
audit, and accountability activities. These
measures provide an indication of whether
ADAA is achieving its strategic objectives.
> Operational Measures: to evaluate ADAA’s
ability to conduct technical and support
activities in an efficient and economic
manner. Operational measures are updated
and monitored by the ADAA Chairman
and Executive Management through the
appropriate Governance Committees.
ADAA considers communication a crucial
and indispensable approach to measure its
performance and achieve transparency with
its stakeholders.
ADAA recognizes the need to earn and sustain the trust of its stakeholders
through adopting and implementing the highest standards of
accountability and transparency. It issues this Annual Report accordingly
and follows a set of guiding principles, regulations, and processes that are
integrated under the following main components of governance:
4.3 GOVERNANCE
Abu Dhabi Accountability Authority
Accountability Report 2019 16

Internal Control
ADAA annually reviews its internal controls,
including financial, operational, compliance
controls and assesses associated risks to
ensure that its processes are in line with best
practice, laws, rules and regulations through
its monitoring activities.
ADAA abides by a Code of Conduct that
safeguards business and professional ethics
to ensure that all ADAA employees understand
and abide by this code of conduct. ADAA has
a “Compliance Officer” to ensure that ADAA
is committed to integrity and the highest
professional standards in every aspect of its
activities.
External Audit
ADAA’s financial statements are reviewed and
audited by an external auditor. For the year
2019, Grant Thornton was reappointed for
a fee of AED 93,000 in accordance with the
Statutory Auditors Appointment Rules issued
by ADAA to review and audit the interim and
annual financial statements of ADAA.
The external auditor was also engaged for
a fee of AED 86,000 to examine and report
on the effectiveness of the internal control
system in accordance with the COSO
framework,
Grant Thornton issued an unqualified audit
opinion for ADAA’s financial statements and
effectiveness of internal control system for
2019.
External Reports
ADAA prepares an annual report
“Accountability Report” to provide
information about its work and achievements,
as well as other information necessary to
assess ADAA’s performance during the year.
The report also includes ADAA’s governance
structure, and the intended work plan for the
following year.
Also, 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.
Abu Dhabi Accountability Authority
Accountability Report 2019 17

Accountability Report
5.0 SUBJECT ENTITIES
5.1 SUBJECT ENTITIES CLASSIFICATION BY TYPE
5.2 SUBJECT ENTITIES CLASSIFICATION BY
SECTOR & INDUSTRY
Abu Dhabi Accountability Authority
Accountability Report 2019 19

CENTRAL GOVERNMENT
1 Department of Community Development
2 Department of Culture and Tourism
3 Department of Economic Development
4 Department of Education and Knowledge
5 Department of Energy
6 Department of Finance
7 Department of Government Support
8 Department of Health
9 Department of Municipalities and Transport
10 Abu Dhabi Executive Office
11 Executive Affairs Authority
12 General Directorate of Abu Dhabi Police
13 Judicial Department - Abu Dhabi
ADAA’s Subject Entities comprise 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 No.14 of 2008.
5.1 SUBJECT ENTITIES CLASSIFICATION BY TYPE
ADAA classified Subject Entities into groups based on their types as shown in the following
figure:
COURTS (DIWANS)
1 Crown Prince Court
2 National Consultative Council
3 Ruler Court
4 Ruler’s Representative Court Al Ain Region
5 Ruler’s Representative Court Al Dhafra Region
5
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SUBJECT ENTITIES
Abu Dhabi Accountability Authority
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STATE-OWNED ENTERPRISES (SOE)
1 Abu Dhabi National Oil Company
2 Abu Dhabi Fund for Development
3 Abu Dhabi Investment Authority
4 Mubadala Investment Company
5 Etihad Aviation Group
6 Abu Dhabi Airports Company
7 Abu Dhabi Health Services Company
8 Emirates Nuclear Energy Corporation
9 Abu Dhabi Power Corporation
10 Abu Dhabi Securities Exchange
11 Abu Dhabi Ports Company
12 National Health Insurance Company
13 Etihad Rail Company
14 Modon Properties
15 Abu Dhabi Development Holding
16 General Holding Corporation - Senaat
17 Abu Dhabi Sewerage Services Company
18 Abu Dhabi National Exhibition Company
19 Abu Dhabi Media Company
20 Emirates Palace Company
Abu Dhabi Accountability Authority
Accountability Report 2019 21

SECTOR INDUSTRY SUBJECT ENTITY
GOVERNMENT
Government
Administration
1 Abu Dhabi Digital Authority
2 Abu Dhabi Executive Office
3 Abu Dhabi Government Media Office
4 Abu Dhabi Human Resources Authority
5 Abu Dhabi Quality and Conformity Council
6 Abu Dhabi Sports Council
7 Crown Prince Court
8 Department of Government Support
9 Executive Affairs Authority
10 National Consultative Council
11 Ruler Court
12 Ruler’s Representative Court Al Ain Region
13 Ruler’s Representative Court Al Dhafra Region
14 Statistics Centre - Abu Dhabi
Utilities 15 Department of Energy
16 The Center of Waste Management - Abu Dhabi
Environment &
Agriculture
17 Abu Dhabi Agriculture and Food Safety Authority
18 Environment Agency - Abu Dhabi
19 International Fund for Houbara Conservation
20 Mohamed bin Zayed Species Conservation Fund
Infrastructure
21 Abu Dhabi General Services Company
22 Abu Dhabi Housing Authority
23 Department of Municipalities and Transport
24 Municipality of Abu Dhabi City
25 Municipality of Al Ain City
26 Municipality of Al Dhafra Region
transportation
27 Compensations Fund for Owners of Taxi Licenses
28 Integrated Transport Centre
29 Presidential Flight Authority
COMMUNITY
Education
30 Abu Dhabi Centre for Technical and Vocational Education and Training
31 Abu Dhabi Government Academy
32 Abu Dhabi Vocational Education and Training Institute
33 Department of Education and Knowledge
34 Emirates College for Advanced Education
ADAA has also classified Subject Entities according to the sector and field they operate in, as
shown in the list below (excluding subsidiaries of SOEs and Government Entities).
5.2 SUBJECT ENTITIES CLASSIFICATION BY SECTOR &
INDUSTRY
Abu Dhabi Accountability Authority
Accountability Report 2019 22

SECTOR INDUSTRY SUBJECT ENTITY
COMMUNITY
Education
35 Institute of Applied Technology
36 Khalifa University for Science and Technology
37 Mohammed University - Abu Dhabi
38 Paris-Sorbonne University–Abu Dhabi
39 Rabdan Academy
40 Abu Dhabi Public Health Center
41 Department of Health
42 The National Rehabilitation Center
Media 43 Media Zone Authority - Abu Dhabi
Security & Justice
44 Judicial Department - Abu Dhabi
45 Monitoring and Control Centre
46 Saif bin Zayed Academy
Security & Safety 47 General Directorate of Abu Dhabi Police
Social Inclusion
48 Abu Dhabi Authority for Arabic Language
49 Abu Dhabi Early child authority
50 Abu Dhabi Social Support Authroity
51 Authority of Social Contribution MAAN
52 Department of Community Development
53 Emirates Foundation
54 Family Development Foundation
55 Khalifa Bin Zayed Al Nahyan Foundation
56 Social Care and Minors Affairs Foundation
57 Zayed bin Sultan Al Nahayan
Charitable and Humanitarian Foundation
58 Zayed Higher Organization
For Humanitarian Care and Special Needs
59 Zayed House for Family Care
Tourism
and Culture
60 Department of Culture and Tourism
61 Emirates Heritage Club
62 Public Institution Zoo and Aquarium in Al Ain
63 Zayed House for Islamic Culture
ECONOMY

Economic
Development
64 Abu Dhabi Council for Economic Development
65 Abu Dhabi Investment office
66 Department of Economic Development
67 Higher Corporation for Specialized Economic Zones
68 Khalifa Fund for Enterprises Development
Energy 69 Supreme Petroleum Council
Finance &
Investment
Management
70 Abu Dhabi Global Market
71 Abu Dhabi Retirement Pensions and Benefits Fund
72 Department of Finance
Abu Dhabi Accountability Authority
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Accountability Report
6.0 AUDIT METHODOLOGY
6.1 ADAA OUTPUTS WORK FLOW
Abu Dhabi Accountability Authority
Accountability Report 2019 25

P
L
A
N
N
I
N
G
E
X
E
C
U
T
I
O
N
6.1 ADAA OUTPUTS WORK FLOW
Abu Dhabi Accountability Authority audit methodology was developed in accordance with the
applicable standards and guidelines issued by the International Federation of Accountants
(IFAC), The International Organisation of Supreme Audit Institutions (INTOSAI) and other
internationally accepted standards, and performs its assignments accordingly.
Step 1
Understanding
the Entity
Step 2
Engagement
Setup
Step 3
Audit Strategy
Step 4
Perform System
Understanding
for Significant
Area
Step 5
Design Audit
Procedures
Step 6
Perform Audit
Procedures
Step 7
Assess Findings
and Conclude
Step 8
Draft Report
Step 9
Issue Final
Report
Step 10
Communicate with
Stakeholders
R E P
O
R
T
I
N
G
6
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AUDIT METHODOLOGY
Abu Dhabi Accountability Authority
Accountability Report 2019 26
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 programs. ADAA’s audit methodology
involves three main phases where each phase includes a number of steps as
shown in the following figure:

Abu Dhabi Accountability Authority
Accountability Report 2019 27

Accountability Report
7.0 ACHIEVEMENTS DURING 2019
7.1 AUDIT REPORTS
7.2 STRATEGIC OBJECTIVES
7.3 INTEGRITY AND ACCOUNTABILITY
7.4 ADAA KNOWLEDGE CENTRE
7.5 ADVISORY
7.6 RESEARCH AND KNOWLEDGE SHARING
7.8 NATIONAL AND INTERNATIONAL
Abu Dhabi Accountability Authority
Accountability Report 2019 29

7.1 AUDIT REPORTS
In line with its Annual Plan for the year 2019, ADAA issued 50 reports covering
all governmental sectors, and State Owned Entities, companies and their
subsidiaries.
Performance
Review
Compliance Audit
Mid Year Review
Integrated Audit
Financial Examination
2019
Achievements
by output
7
___
ACHIEVEMENTS DURING 2019
6 5
2
10
27
2019 Achievements by Industry
Finance & Investment Management
Economic Development
Energy
Government Administration
Infrastructure
Transportation
Enviornment & Agriculture
Utilities
Healthcare
Education
Security & Justice
Culture & Toursim
Media
Community Development
10
4
4
3
3
3
2
2
2
2
1
1
6
Abu Dhabi Accountability Authority
Accountability Report 2019 30

7.2 STRATEGIC OBJECTIVES
7.3 INTEGRITY AND ACCOUNTABILITY
> Implemented the revised and updated
ADAA’s strategic objectives.
> Implemented internal process and structure
changes in line withthe framework of the
International Organization of Supreme
Audit Institutions (INTOSAI).
> Updated and implemented ADAA’s internal
policies and procedures to ensure the
progressive attainment of the desired
strategic objectives.
> The Abu Dhabi Accountability Authority
(ADAA) announced on 9 December 2019
the launch of the digital Violation Reporting
Platform (the Platform) that will enable
the reporting of suspicions of financial
and administrative violations across
government entities. The selection of the
International Anti-Corruption Day to launch
the new platform was done purposely
to demonstrate the full commitment to
support the objectives of the Government
of Abu Dhabi in terms of strengthening
public administration activities, and to the
ongoing efforts to further develop and
evolve transparency standards.
The announcement was made through the
Abu Dhabi Government Media Office in
collaboration with ADAA through social
media platforms, where a team from
ADAA developed an animated educational
infographic addressed to the public at large
for the purpose of demonstrating the use
of the Platform.
The Platform was developed after examining
thorough benchmarks and analyses
of global leading practices in terms of
cases reported with the aim to provide
an efficient and integrated system that
will expedite the process of handling
and managing these cases quickly and
efficiently, and will support the definition
of the necessary means to prevent the
recurrence of similar actions in the future.
It also enhances the role of the stakeholders
of government entities and encourages
the community and the public at large to
help monitor and report any suspicions
of financial or administrative violations,
whether related to the employees of those
entities or its practices, thus contributing
to a competitive business framework that
would increase investor confidence.
> Issuance of 2018 Accountability Report as
well as regular reporting to relevant parties.
> Released “NAZAHA”, a quarterly publication
that includes insights, best practices,
perspectives on regulatory frameworks,
analysis and relevant references on all
matters related to anti-fraud and curbing
violations.
> Conducted special assignments and issued
the reports to concerned parties.
> Engaged on fraud awareness activities via
multiple channels, including NAZAHA, ACFE
Conference, and e-maarifa platform.
Abu Dhabi Accountability Authority
Accountability Report 2019 31

7.5 ADVISORY
> Enhanced the value of the E-maarifa
platform, which allows Abu Dhabi
Government employees to share their
knowledge and best practices across
subject entities and benefit from the rich
repository of expert views, insights and
documents available elsewhere within the
Government. The Internal Audit Community
on E-maarifa now connects more than
820 Internal Audit professionals across 112
subject entities.
> Participation in the membership of Audit
Committees of several Subject Entities.
> Continued providing advisory and support
to Subject Entities upon their request and
assisted Subject Entities to enhance the
capabilities of their Internal Audit function
and support the users of the E-Governance
Portal for 93 Subject Entities.
> Provided advisory to Subject Entities in
implementing ADAA Chairman Resolution
number (1) of 2017 that requires the
statutory auditors to: (1) Test the
effectiveness of internal control over
financial reporting and issuing a separate
opinion about their effectiveness; and (2)
Verify compliance with applicable laws and
regulations and issuing an opinion in this
respect as part of the statutory auditor’s
report.
> Continued expansion of ADAA Knowledge
Centre’s external role by providing
specialized professional training programs.
This included 24 courses for professional
certificates, which benefited 258 trainees
from 60 subject entities during 2019.
> Continued monitoring the “Auditors
Development Program”. The program
offers 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.
> Continued recognition of ADAA Knowledge
Centre as an approved training provider
by the UK Institute of Leadership and
Management and by the Association of
Certified Fraud Examiners (ACFE).
7.4 ADAA KNOWLEDGE CENTRE
24Courses
258Trainees
60Entities
Abu Dhabi Accountability Authority
Accountability Report 2019 32

7.6 RESEARCH AND KNOWLEDGE SHARING
7.8 NATIONAL AND INTERNATIONAL
REPRESENTATION
> Issued 10 technical papers that addressed
complex accounting matters and helped in
unifying accounting interpretations.
> Completed 10+ major research engagements
including international benchmarking
studies, research papers and surveys. These
engagements cover a wide spectrum of
topics such as a survey of UAE National
Auditors in the public sector, SME Sector
Trends & Challenges, benchmarking of
industry practices and regulatory models.
> Membership of the International Forum of
Independent Audit Regulators (IFIAR), its
Board of Directors and Audit Committee;
and participation in its periodical meetings
(Board of Directors, Audit Committee,
Plenary meeting, and Inspection
Workshops).
> Member of IFIAR’s Inspection Workshop
Working Group and member in International
Relevant Development in Audit Marketing
(IRDAM) task force.
> The ACFE ME Fraud Regional Conference
2019 was hosted for a second successive year
in Abu Dhabi with the aim of demonstrating
the efforts of the Emirate of Abu Dhabi within
the government ecosystem to educate and
to raise further awareness about fraud
risks. The Conference achieved a record
attendance exceeding 500 representatives
from various industries, countries and
professions, noting that it represented the
highest number of attendees for any ACFE
organized conference outside the United
States of America.
> Continued to chair the Abu Dhabi Technical
Forum (ADTF) with the aim of unifying
accounting interpretations of International
Financial Reporting Standard (IFRS) and
International Standards on Auditing (ISA)
between ADAA, audit firms and accounting
and auditing professionals in the UAE.
Abu Dhabi Accountability Authority
Accountability Report 2019 33

Accountability Report
8.0 ADAA PROGRAMS DURING 2019
8.1 INTEGRATED AUDIT
8.2 FINANCIAL EXAMINATION
8.3 PERFORMANCE AUDIT
8.4 COMPLIANCE AUDIT
8.5 SUPPORTING ACCOUNTABILITY
Abu Dhabi Accountability Authority
Accountability Report 2019 35

ADAA developed a number of programs 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, 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, and 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:
8.1 INTEGRATED AUDIT
(Financial, Internal Controls, and Compliance Audits)
ADAA carries out Integrated audits in
accordance with International Standards on
Auditing (ISAs), the purpose of which is to
express an opinion on whether the financial
statements present fairly, in all material
respects, the financial performance of the
entity, according to applicable financial
reporting framework (i.e. IPSAS or IFRS).
Our audit report includes an opinion on
Subject Entities’ compliance with legal and
regulatory requirements which have a direct
effect on the financial statements.
Our integrated audit engagements include
issuing a separate report that includes our
opinion on the effectiveness of internal
control systems through obtaining
reasonable assurance (ICoFR).
Our Integrated audit engagements also
include issuing a separate report that includes
our opinion on the entity’s compliance with
legal and regulatory requirements.
Financial
Audit
Internal
Controls
Compliance
Audit
8
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ADAA PROGRAMS
DURING 2019
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AUDIT ELEMENTS AND STANDARDS FOR FINANCIAL EXAMINATION
ADAA developed 390 audit criteria spread over 21 standards within 5 elements as illustrated
in the following figure:
8.2 FINANCIAL EXAMINATION
The financial examination includes ensuring that Subject Entities implement the Statutory
Auditors Appointment Rules (SAAR) issued by ADAA when appointing a Statutory Auditor,
performing a review of the Subject Entity’s financial statements and examining the work
undertaken by the Statutory Auditor.
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 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. Litigations and claims
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
The following are key achievements of the financial and integrated audit
carried out during 2019:
> Financial audit of the Government of Abu
Dhabi financial statements for the year
ended 31 December 2018 in accordance
with international standards.
> Integrated audits of 5 subject entities
(Abu Dhabi Investment Authority, General
Directorate of the Abu Dhabi Police,
Department of Economic Development,
Abu Dhabi Judicial Department, and
Department of Transport) for the year
ended 31 December 2018 in accordance
with international standards.
> Mid-year reviews for 2 subject entities
(Abu Dhabi Investment Authority and
Department of Economic Development) in
accordance with international standards.
> Started the planning and interim visit
relating to the integrated audit for the year
ended 31 December 2019 for 11 Subject
Entities.
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ADAA’s financial examination reports included 307
comments classified as follows:
ADAA issues its report upon completion of the Financial Examinations to those charged
with governance at Subject Entities to ensure future improvement implementation by the
Statutory Auditor and follow up.
Financial
Statements’
Examination
27
Audit criteria for Financial Examination
were developed based on the following:
> Statutory Auditors Appointment Rules
issued in accordance with Law Number 14
of 2008.
> Resolution No. 1 of 2017 issued in accordance
with Law Number 14 of 2008.
> International Standards on Auditing (ISA)
issued by the International Federation of
Accountants (IFAC).
> Accounting standards used for preparing
the financial statements: i.e. IPSAS or IFRS.
ADAA’s Financial Examination report
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 have
resulted in an adjustment.
During 2019, ADAA examined
the financial statements and the
related Statutory Auditors’ working
papers for 27 Subject Entities. These
Subject Entities were selected
based on ADAA risk assessment
exercise. During the examination
ADAA focused on statutory auditors’
assessment of internal control
over financial reporting at Subject
Entities and their compliance with
relevant laws and regulations, in
Addition to complete and adequate
recording of assets and revenues to
reflect actual performance.
Also, ensured Subject Entities
compliance with their budgets and
the requirements of international
financial reporting standards in
preparing their financial statements,
and continued monitoring the
compliance of Subject Entities with
Statutory Auditor Appointment
Rules (SAAR).
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 have resulted in an
adjustment
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The key improvement opportunities relating
compliance of subject entities with relevant
rules and regulations that have an impact
on the financial statements included annual
budget execution and presentation in the
financial statements in accordance with
relevant laws and regulations, recognition
of assets in the financial statements in
accordance with relevant decrees and
resolutions, proper application of the
Statutory Auditors Appointment Rules, and
active participation of UAE national audit
team members in all the phases of the audit
process undertaken by the Statutory Auditor.
The key areas for improvement in financial
reporting by subject entities included the
accuracy of revenue recognition, impairment
testing of intangible and intangible
assets, accounting treatment for lease
arrangements, recognition of fixed assets,
projects, investment properties, and financial
assets, appropriateness of assumptions used,
assessment of recoverability of financial
facilities and loans, validity of amounts
recorded as due from the government of
Abu Dhabi, and preparation of consolidated
financial statements.
The key areas for improvement in audit
procedures performed by the statutory
auditor included communication with
those charged with governance, assessing
going concern, validation of assumptions,
completeness of revenues, involvement
of independent quality review partner,
sufficiency of IT audit, fraud risk assessment,
reliance on the internal controls, and
ensuring compliance with relevant laws and
regulations.
Key improvement opportunities relating to compliance
of subject entities with relevant rules and regulations
that have an impact on the financial statements
Key improvement opportunities relating to compliance
with financial reporting and auditing standards
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8.3 PERFORMANCE AUDIT
Review of whether Subject Entities, operations, programs or activities are
operating in accordance with the principles of economy, efficiency and
effectiveness and whether there is room for improvement. These reviews
provide new information, analysis or insights and, where appropriate,
recommendations for improvement.
Suitable criteria are established for each Performance Audit and differ from
one review to another. These criteria are designed to correspond to the
audit questions and are related to the principles of economy, efficiency and
effectiveness.
In some of these reviews, ADAA aims to assess the performance of the programs of Abu
Dhabi Plans to ensure that coordinating and contributing Subject Entities are making tangible
progress towards achieving the objectives set in the Government plans, including but not
limited to the Abu Dhabi Plan. To achieve that, ADAA has developed the following review
methodology in line with leading practices.
ADAA aims through this review to ensure efficient, effective and economic utilization of
resources (value for money) by Subject Entities.
Elements of Performance Audit
EFFECTIVENESS
Achieving the objectives set
and intended results
ECONOMY
Minimizing the costs of resources
EFFICIENCY
Getting the mostfrom the
avaliable resources
EFFECTIVENESS
EFFICIENCY
ECONOMY
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GOAL DEFINITION & DESIGN
Assure that the Goal is converted into well defined
“success” factors.
RESULTS EVALUATION AGAINST GOAL
Evaluate the progress towards achieving Goal.
PERFORMANCE DIAGNOSTIC
Evaluate the performance of implementing the
programs and initiatives that contribute to achieving
the Goal.
OPINION
Based on the holistic evaluation of the previous
evaluation areas, develop an opinion on whether the
programs are on track to achieve the Goal and/or
resilient enough to adjust to changes..
The Performance Audit deliverables during
2019 were related to various industries and
covered the operations and activities carried
out by a number of Subject Entities as well
as some of Abu Dhabi Plans’ programs to
evaluate alignment with best practices,
industry standards and the approved plans.
ADAA issued 5 Performance Audit reports
during 2019 covering various areas.
These areas were selected based on their
importance to the Government plans and the
importance of the services provided within
each area.
Entities Covered in Performance Audit in 2019
INDUSTRY SUBJECT ENTITY
Government Administration Statistics Centre - Aabu Dhabi (SCAD)
Utilities Abu Dhabi waste Management Center (Tadweer)
Healthcare Abu Dhabi Health services Company (SEHA)
Culture & Tourism Zoo & Aquarium Public Institution in Al Ain (ZAPIA)
Social Development Dar Zayed for Family Care (DZFC)
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ADAA performed compliance audit in accordance with its approved methodology which was
prepared in line with INTOSAI Compliance audit standard (ISSAI 4000).
8.4 Compliance Audit
Review Subject entities compliance with laws and regulations governing their
work through comprehensive framework to achieve the following objectives:
FOCUS
Focus on key processes
that are material and
have impact on the
entity.
COMPREHANSIVE
Provide comprehensive
audit view through aligning
entity’s mandate roles and
responsibilities with its key
processes.
EVALUATE AND ANALYZE
Evaluate and analyze
compliance with laws and
regulations.
STRATEGIC
Enable ADAA to define
the scope that is aligned
with entity strategic
objectives.
Compilance
Audit
Objectives
This methodology focus on the regulatory framework that governs entities’ mandates, roles
and responsibilities. This framework consists of the following:
COMPLIANCE AUDITE
Laws Federal Laws.
Local Laws.
Regulations
Executive Council Resolutions.
Executive requlations that governed entity operation.
Entity Chairman Resolutions.
Policys &
Procedures
Policies.
Procedures
Committee Charters.
Contracts Contracts signed in the entity.
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We have completed 10 compliance audit which was performed in the following sectors
Community
Development 1
Infrastructure 2
Economic
Development 2
Transportation 1
Government
Administration 3
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8.5 SUPPORTING ACCOUNTABILITY
ADAA developed a number of programs under this group to promote
accountability of Subject Entities and to enhance their roles and
responsibilities in this regard, in addition to training and developing UAE
Nationals and supporting sharing knowledge and leading practices:
8.5.1 Accountability Reports
8.5.2 Special Examination
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.
ADAA investigates complaints referred to
it and violations discovered when carrying
out its work at Subject Entities, and examine
violations investigated by Subject Entities
ADAA investigates violations referred to
it, and those 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, in certain cases, requests the
Subject Entity to do so.
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 requires 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.
8.5.2.1 Financial Violation Investigation
8.5.2.2 Financial Violation Examination
In 2019, a number of reports were issued
under this program on matters related
to ADAA’s work; among these important
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 and the Accountability Report.
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8.5.3 Advisory
8.5.4 Technical Knowledge
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 practices and in light of the
information provided by the Subject Entity.
ADAA has implemented 4 secondary
programs under this group with the objective
of training and developing UAE Nationals and
supporting sharing knowledge and leading
practices:
1. Qualifying Emirati Auditors
2. Research and Knowledge Sharing
3. National and International Representation
4. Seminars and Workshops.
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. Professional training programs
were developed specifically for Emiratis
in the Accounting and Audit profession
such as the Certified Public Accountant
(CPA) examination preparation course,
the Chartered Certified Accountant
qualification (ACCA), 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 an audi
8.5.4.1 Qualifying Emirati Auditors
1. Participation in the membership of Audit
Committees of several Subject Entities.
2. Continued providing advisory and
support to Subject Entities upon their
request and assisted Subject Entities to
enhance the capabilities of their Internal
Audit function and support the users of
the E-Governance Portal for 93 Subject
Entities.
1. Expansion of ADAA Knowledge Centre’s
external role by providing 24 courses for
professional certificates, which benefited
258 trainees from 60 subject entities.
2.Continued monitoring the “Auditors
Development Program” offering
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.
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ADAA set up this program 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:
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.
ADAA established the AASD to issue
technical papers related to accounting
and auditing. AASD issues an e-newsletter
every two months called “ADAA Digest”,
which contains accounting and auditing
news, including IFRS and IPSAS updates,
and an in depth technical article. AASD
publications focus primarily on accounting
matters related to the preparation of
Subject Entities’ financial statements, and
assist in eliminating inconsistencies in
the interpretations of current accounting
standards.
In 2010, the 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.
ADAA identifies best practices that
are internationally recognized and
implemented and issues practice guides
for use throughout the public sector.
8.5.4.2 Research and Knowledge Sharing
1. Research and Knowledge Management (RKM) Function:
2. Accounting and Auditing Standards Desk (AASD):
3. E-maarifa:
4. Practice Guides:
1. Issued technical papers that addressed
complex accounting matters and helped
in unifying accounting interpretations.
2.Completed research papers, international
benchmarking studies, and surveys.
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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 Board of Directors and Audit and Finance
Committee.
In addition, ADAA is member of IFIAR’s
Inspection Workshop Working Group and
member in the International Relevant
Development in Audit Marketing (IRDAM)
task force.
Organize seminars and workshops for
Subject Entities on matters that complement
ADAA’s primary role and fall within its area of
expertise such as:
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 unifying of
accounting treatments, thereby improving
the comparability and quality of financial
reporting in Abu Dhabi.
8.5.4.3 National and International Representation
8.5.4.4 Forums, Seminars, and Workshops
8.5.4.5 Abu Dhabi Technical Forum (ADTF): This Forum brings together the UAE
based
1. ADAA is a member of IFIAR’s Board of
Directors, and participates in its periodic
meetings (Board of Directors, Audit and
Finance Committee, annual meeting and
workshops).
2.Collaboration with the Association of
Certified Fraud Examiners (ACFE) to host
the Middle East Fraud Conference in Abu
Dhabi in 2019.
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1. Implement ADAA’s new sector based
structure and cultural transformation
initiatives to better align our organization
with the Abu Dhabi Governments
strategic objectives.
2. Audit the consolidated financial
statements of the Government of Abu
Dhabi.
3. Perform the integrated audit of a
number of departments and government
entities.
4. Financial assurance and related services,
examination of the financial statements
of a group of subject entities and their
budgetary compliance as well as ensure
the preparation of financial reports in
accordance with international standards.
5. Review the compliance with laws and
regulations in a number of subject
entities.
6. Review the performance of some
programs and services delivered by
subject entities.
7. Examine referred violations and issue
Special Examination reports.
8. Continue to expand the number of
professional training courses to subject
entities.
9. Continue to develop the capabilities of
our UAE National Auditors as a priority of
ADAA
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2020 WORK PLAN OVERVIEW
DRAFT SUBJECT TO REVISION.
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