Question 1 (Group 1 and 20) (a) Discuss the provisions provided under the Federal Constitution 1957, The Financial Procedure Act 1957 and Audit Act 1957 with regards to financial management of the public sector (b) Discuss the meaning of financial accountability and programme accountability. Explain the steps taken by the responsible body to improve the performance of financial accountability in public sector agencies.
Question 2 (Group 2) The budget is an annual economic, fiscal and monetary plan for the whole country. It is a rolling plan in that it reflects one-fifth of the five-year plan. (a) Explain the main objectives of government budget. (b) Discuss the major content of the budget speech delivered by the Finance Minister.(Budget 2012)
Question 3(Group 3) (a) Discuss in detail the relationship between the types of Consolidated Fund. Quote relevant legal provisions. (b) Recently, government depends more on domestic borrowings rather than external borrowings. Discuss. (c) Explain in detail the following funds maintained under the Consolidated Trust Account: (i) Government Trust Fund
(ii) Public Trust Fund (iii) Deposits Question 4 (Group 4) (a) Cash Accounting suffers a problem of providing a true picture of the financial position of an organization due to its recognition principle. This problem is experienced by the Malaysian public sector accounting system as well.
Discuss the measures taken by the Treasury to overcome these problems in particular at the year end.
(b) Accrual basis of accounting provides an alternative in accounting and reporting practices for public sector organizations to improve their practice in accounting and reporting financial transactions. Despite this, not all governments resort to this basis in their accounting and reporting practices.
Discuss the challenges that need to be considered by the Malaysian government before implementing the accrual basis of accounting. (c) The public sector is widely known to be using the cash basis of accounting, rather than accrual basis of accounting in recording financial transactions. However, the modified cash basis of accounting is also popular in the government sector.
Compare and contrast the three bases of accounting in recording financial transactions or events.
Question 5(Group 5) Local Authorities are responsible in providing services and basic facilities to the local people and in doing this they need to manage their resources properly according to the stipulated rules and regulations. Based on this statement;
(a) Explain the function and services provided by the Local Authority.
(b) Explain three (3) categories of financial resources received and collected by the Local Authority.
(c) Based on Section 41 of the Local Government Act 1976, explain the borrowing powers of the Local Authority. (d) Why do the Local Governments practice accrual based accounting? (e) Discuss two financial management problems facing the local Governments
Question 6 (Group 6) Section 3 of the Audit Act 1957 provides that the Auditor General shall be deemed to be an officer of the general public office of the Federation. He is responsible to carry out all provisions of the Audit Act 1957.
(a) Briefly explain the main objectives of the Audit Act 1957 (b) Explain the major contents of an audit report to be prepared by the Auditor General as required by the Audit Act 1957. (c) State the powers of the Auditor General as provided by the Audit Act 1957 (d) Discuss the role and challenges of auditors in the era of information technology
Question 7 (Group 7) Accountability in the public sector is vital in ensuring a more effective delivery system. a) Briefly describe:
i) Meaning of public accountability ii) Objective of public accountability iii) Level of accountability (control) in the public sector
b) The Accountant-General have highlighted the issue of excessive public expenditure by many government departments. This is due to lack of supervision and monitoring from the controller.
Briefly state 5 other reasons which could have contributed to the issue.
Question 8 (Group 8) In the Tenth Malaysian Plan, the Government of Malaysia is moving forward in introducing the Outcome Based Budgeting System.
What do you think of the Outcome Based Budgeting System as compared to the current Modified Budgeting System?
Question 9 (Group 9 and 21)
Although a good controlling system is already in place to ensure good management of public fund, the auditing exercise at government agencies have highlighted several unsatisfactory findings.
a) Briefly state the weaknesses evident in the controlling system as follows: 1. Control of revenue collection 2. Control of expenditure 3. Control of assets
b) What are the suggestions to improve public accountability to address the weaknesses mentioned above? Question 10 (Group 10) (a) The Federal Constitution of Malaysia clearly divides the power of the Federation into Legislative power, Executive power and Judicial power. The separation of power occurs both at Federal and State levels, as in keeping with the concept of Federalism, which form the basis of government administration. The reason for the separation of power is to ensure that the same person or body should not be responsible in enacting laws and enforcing them.
By quoting relevant articles from the Federal Constitution, differentiate the three type of power.
(b) Explain why it is important to study public sector accounting
Question 11 (Group 11) (a) Explain what is meant by Programme and Performance Budgeting System (PPBS), and discuss the strengths and limitations of PBBS. (b) “Line-item is about means, programme budgeting is about ends.” Discuss. (c) Discuss the rationale of “identifying objectives” and performance evaluation under PPBS
Question 12 (Group 12) (a) Discuss the government accounting machinery (b) Describe the detail procedure for maintaining the vote book as required by TI 95 (c) Discuss the duties of Accountant General as mentioned in TI 138 (d) What are the procedures to be taken when the collector receives money from the payer
Question 13 (Group 13) Briefly explain the roles and function of the following organizations/individual in discharging their accountability: (a) Parliament (b) Treasury (c) Auditor General (d) Accountant General (e) Controlling officer (f) Public Account Committee
Question 14 (Group 14) (a) What are the purposes of audit in government? (b) Explain the three types of audit: (i) financial audit (ii) compliance audit (iii) performance audit
(c) The financial authority is required by the Financial Procedure Act 1957 to prepare the yearly statements for the consolidated accounts. These statements will then be submitted to the Auditor General for examination and preparation of reports.
Discuss the nature and scope of work conducted by the Auditor General on the consolidated accounts of the Federal as stated in Section 6 of the Audit Act 1957.
(d) Discuss two weaknesses of the public sector commonly highlighted by the Auditor General
Question 15 (Group 15) (a) Explain the components and importance of National Finance Council to the government (b) Explain surcharge and state your opinion on the effectiveness of this measure to control and manage public funds (c) Discuss the circumstances under which supplementary budget can be prepared based on the financial provision of the Federal constitution
Question 16(Group 16) “Budgeting is an important part of management control process in any organization, but it is even more important in non-profit organization than in profit-oriented company”.
(a) Discuss the reasons for the importance of budgets and explain why the budget is particularly important in public sector organizations. (b) Compare and contrast the roles and functions of budgets for public sector and private sector
Question 17 (Group 17) Literally, accountability means the liability or responsibility to give an account for something to somebody.
(a) In the public sector, accountability is classified into three types. Identify and briefly describe all of the three. (b) Discuss the problems faced by the government in achieving maximum accountability. (c) “Government officers and officers investigated for corruption and mismanagement of public fund under the 2006 Auditor-General report will either be charged to court soon or face disciplinary action” Tan Sri Mohd Sidek Hassan, Chief Secretary to the Government The Star, 12 October 2007
Based on the above statements recommend ways for government sector to avoid and improve problems concerning corruption and mismanagement of fund
Question 18 (Group 18) Modified Budgeting System (MBS) encourages link between input, output and the impact. Also it helps to implement other ways of improving public administration such as increasing productivity and total quality management. (b) What are the major objectives of MBS (c) Explain the following elements of MBS: (i) Programme Agreement and Exception Report (ii) More Generalized Approach to Expenditure Control (d) Discuss how the elements in (b) above may lead to more effective and efficient budgeting system.
Question 19 (Group 19) Public Accounts are financial statements of Federal Government prepared annually by the Accountant General for Minister of Finance in compliance with Section 16(1) of Financial Procedure Act 1957. (a) Explain public accounts or financial statements of Federal Government. Quote the relevant statutory and legal requirement. (b) Discuss the contents of the Annual Publics Accounts. (Refer to the latest Annual Public Account )