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State Audit Institution - United Arab Emirates
The Fifth General Report and the Sixth Working Plan

The State Audit Institution has prepared its Fifth General Report, and it will send it to the Federal National Council in its capacity as the legislative in the U.A.E.

The Report had treated the role of the S.A.I. in preserving the public funds and evaluated the results of performance in the Administrative, Economic and subsidized sectors in the light of their objectives, as well as the activities of the S.A.I. within the U.A.E. and abroad, during the two years 1987 -1988. The S.A.I. had emphasized during this period the necessity of preparing all requirements for practising performance audit.

The report also was interested in studying many main problems which confronted the public and financial administrative in the U.A.E. such as:-

• The deficit in Budget of the Union.
• Treatment of the trespass in the expenditures appropriations.
• The numerousness of accounts closing in on financial year.
• Documents reliabilities.
• Phenomenon of waste - in the Economic sector bodies.
• Analysed study of financial records.
• Connecting offices abroad, from actual current expenditures.
• Evaluation of new Organizational Structures.

Each study is exposing each prob­lem, explaining its reasons and results and prescribing the best solution for its.

The President of S.A.I, has is­sued the Sixth Working plan of S.A.I, for the period from 1/5/1990 to 30/4/ 1991.

The plan has general objectives which are the objectives of the S.A.I, audit, as well as special and detailed objectives relevant to the strategy or the policy which the S.A.I. intends to apply.

The plan is divided into many plans and programs in a manner consis­tent with the organizational structure of the departments and audit sections of which classification is sectoral or functional. The plan is prepared on the basis of determining the real days of work and daily performance average of the auditor, in result of auditing the financial operations.

The plan also determined the proportion of selective audit which should be applied in auditing these operations, either regularity or performance audit on the basis of accurate statistical principles identified in the light of the audit results in previous years and according to the safety and strength of the internal control systems applied in the auditee.

Also, the plan includes studying of some topics which represent general substantial problems and require the participation of some or all the departments of the S.A.I, to study them for the interest of the general report, such as:

Impact of delaying the payment of the financial accruals

In the sametime, the plan con­centrates on considering performance evaluation on the level of some entities as well as the level of each sector which these entities are attached to.

Douglas MoGregor, an industrial psychologist at the Massachusetts Institute of Technology, draws upon his ob­servations of the management of large companies to characterize a well-functioning, effective, creative group.

1. The atmosphere.................tends to be informal, comfortable, relaxed......
2. There is a lot of discussion in which virtually everyone participates, but it remains pertinent to the task of the group.......
3. The task of objective of the group is well understood and accepted by the members. There will have been free discussion of the objective at some point until it was formulated in such a way that the members of the group could commit themselves to it.
4. The members listen to each other.... Every idea is given a hearing. People do not appear to be afraid of being foolish by putting forth a creative though even if it seems fairly extreme.
5. There is disagreement.................Disagreements are not suppressed or overridden by premature group action. The reasons are carefully examined, and the group seeks to resolve them rather than to dominate the dissenter............
6. Most decisions are reached by a kind of consensus in which it is clear that everybody is in general agreement and willing to go along.................Formal voting is at a minimum; the group does not accept a simple majority as a proper basis for action.
7. Criticism is frequent, frank, and relatively comfortable. There is little evidence of personal attack, either openly or in a hidden fashion......
8. People are free in expressing their feeling as well as their ideas both on the problem and on the group's operation............
9. When action is taken, clear assignments are made and accepted.
10. The chairman of the group does not dominate it, nor on the contrary does the group defer unduly to him. In fact the leadership shifts from time to time depending on the circumstances.................There is little evidence of a struggle for power as the group operates. The issue is not who controls but how to get the job done.
11. The group is self-conscious about its own operation.

McGregor, D. The human side of enterprise. New York: McGraw-Hill, 1960.