Part 5: Public Sector Accounting Malaysian Context

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Part 5 Public Sector AccountingMalaysian
Context

• i. Government Accounting Machinery

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Government Accounting Machinery
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Government Accounting Machinery(Agency)

• Treasury
• An agency operates under the MOF
• Functions
• To formulate and implement fiscal and monetary
  policies in order to ensure effective and
  efficient distribution and management of
  financial resources.
• To formulate financial management and accounting
  processes, procedures and standards to be
  implemented by all Government..
• To manage the acquisition and disbursement of
  federal Government loans from domestic and
  external sources.
• To monitor that Minister of Finance Incorporated
  companies are managed effectively.
• To Monitor the financial management of
  Ministries, Government Departments and statutory
  Bodies.
• To formulate and administer policies related to
  be the management of Government procurement.
• To formulate policies and administer Government
  hosing loans for public sector employees

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Government Accounting Machinery(Agency)

• Accountant General Department (AG)
• Primary role maintain and prepare the account of
  Federal Govt
• Mission improve the public sector accountability
• Objectives
• To prepare quality public accounts in accordance
  with legal and professional req.
• To provide quality accounting consultancy and
  advisory services
• To manage human resource on accounting public
  sector agencies
• To regulate and enforce accounting mgt related
  matters under relevant regulations
• To provide quality and timely accounting and
  financial info.

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Government Accounting Machinery(Agency)

• Accountant General
• Head of AG Dept (principal accountant in the
  Federal Government)
• Duties
• To see proper system of accounts is established
  and appropriate precautions instituted against
  misappropriations of public assets
• To exercise supervision on the receipts and
  collections of public monies

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Government Accounting Machinery(Personnel)

• Controlling Officer (Pegawai Pengawal)
• Chief of Accounting Officers
• Appointed by MOF/Chief Minister
• Duties
• To control authorized estimates for the
  particular purpose
• To be in charge for the public assets (moneys and
  stores) collected, received, held or disbursed
• To secure proper exercise of performance of their
  duties
• To report to appropriate Service Commission and
  financial authority of any surcharge under their
  control
• To be responsible for the correctness of
  financial statements under his control
• To examine and consolidate the budget of all
  agencies /depts under his control
• To ensure budget allocations are spent
  efficiently and effectively

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Government Accounting Machinery(Personnel)

• Accounting Officers
• Public officers Section 3 (FPA 1957)
• who is charged with the duty of collecting,
  receiving or accounting for, or
• who in fact collect, receives or account for, any
  public moneys, or
• who is charged with the duty of disbursing, or
• who does in fact disburse, any public moneys, or
• who is charged with the receipt, custody or
  disposal of, or accounting for, public stores, or
• who in fact receives, holds or disposes of public
  stores.
• Duties
• To maintain proper books of accounts, and
• To render those accounts as required by act or as
  instructed by Treasury

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Government Accounting Machinery(Systems
Procedures)

• The systems and procedures (S P) pertaining to
  governmental accounts are laid in
• The Federal Constitutions (Financial provisions)
• Financial Procedure Act 1957
• Audit Act 1957
• Treasury Instructions (TI)
• Treasury Circulars
• The objectives of the S P
• Diverse government objectives to meet the legal
  and statutory requirement
• Large amount of expenditure at all levels
• To ensure accountability of public moneys
  entrusted to them
• To take care the public interest the duty to
  serve the public
• To ensure the objectives of public sector are
  achieved in compliance with legal requirement