The Commission of Audit has just released the special audit report “Funds management by the Second Asian Indoor Games Organizing Committee Co. Ltd.” and expects the audit findings could serve as reference for the Macao Government in the setup of project-companies in the future as well as a stimulus for the establishing of effective measures for funds managing.

The capital of the Second Asian Indoor Games Organizing Committee Co. Ltd. (MAIGOC hereafter) was entirely subscribed by the Government of Macao , in the amount of 870 millions patacas. The Commission of Audit conducted an audit on how MAIGOC managed the funds put to its disposal, seeking to know the procedure of the funds management and whether the applications obtained the highest returns.

The audit found that MAIGOC had no effective procedure to control the moments at which the shareholders should realize their capital contributions; the shareholders paid their parts of the capital too early, resulting in the accumulation of large quantities of unused funds. MAIGOC did not introduced any measure to offset the exchange risk by 11 big expenses in foreign money either which led to further expense of 560 thousand patacas, because of exchange fluctuations.

Based on the audit findings, the Commission of Audit suggests the directors in charge should enhanced the role of funds management, controlling effectively the inflows and outflows of capital, in terms of timing, installments and amounts, according to the real needs of the operations. As for the expenses in foreign exchange, the Commission of Audit suggests that measures should be taken immediately after the authorization of the expenses to prevent the exchange risks.

Copies of the special audit report “Funds management by the Second Asian Indoor Games Organizing Committee Co. Ltd.”, already presented to the Chief of Executive and copy to the Legislative Assembly.