Beruflich Dokumente
Kultur Dokumente
TOPIC OUTLINES
Introduction Definition of Terminology Structure and administration of Malaysian Government Federal State Local The roles and powers of YDP Agung, Ruler Council, Executive, Legislative and Judiciary Law framework and accounting standards Legal provision Federal Constitution, 1957 Financial Procedure Act, 1957 Treasury Instructions Local Government Act, 1976 Statutory Bodies Act 1980 Audit Act 1957 and others Accounting Standard pronouncement Government Accounting Standard MASB IAS IFAC GASB ISA and others Reporting Objectives
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Introduction
Malaysian is a country that practiced democracy system and federalism concept Government of the people, by the people and for the people Headed by the YDPA with limited ruling power as the legislative implement the executive power lead by prime minister Concept of separation of power which are ruling by Executive, Legislative and judiciary.
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Definition of Terminology
Legal Provisions Refers to the any laws that passed by the legislative authority Including Constitution and Act, enactment, ordinance Regulations
Any rules that approved by the administrative/ministries Including TI, TC, etc.
Standards
Any rules that proposed and approved by the regulated professional bodies Including accounting standard (FRS, MASB, FRS), auditing standard, etc.
Statutory Bodies any organization bodies with any names that are form under Federal Law requirements and also the organizations that form Public Authorities or Government Agencies excluding the public authorities or organization that are registered under Company Act 1965 (Section 2, SBA, 1980).
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Separation of power
Refers to the power of YDPA as a head of the country will exercise by the three bodies namely legislative, executives and judiciary.
Local Government
Refers to any organization that Formed under Local Govt. Act 1976
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YDPA
LEGISLATION
JUDGES
HOUSE OF REPRESENTATIVES
SENATE
MINISTRIES
COURT
Power of FG
Federal list covers the areas of:
External affairs, Defense Internal security Civil and criminal law Citizenship Finance Commerce and industries Shipping Communication Health and labour
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EXECUTIVE
High Court
EXCO
Power of SG
States List covers areas of:
Land Agriculture Forestry Local government Muslim law Several others
CITY HALL
Directly under the Federal
City Council
State Administrative Centre >100,000 Population >RM80 Million yearly yield Have financial institutions
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District Council
Rural based
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legislative power for federal govt. is under Parliament which consist of YDPA and 2 council (Senate and House of Representative)
legislative power for state govt. is under State Legislative Assembly power to make laws or to amend existing laws. to levy taxes or to change existing taxes
Legislative .. cont
The Ninth Schedule of the FC stated: Legislative power is shared between Federal and State Government Systematically distributes it in a Federal List, State List and a Concurrent List Federal list covers the areas of: External affairs, Defense Internal security Civil and criminal law Citizenship Finance Commerce and industries Shipping Communication Health and labour
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Legislative .. cont
States List covers areas of:
Land Agriculture Forestry Local government Muslim law Several others
Concurrent List covers areas of: Governed by both Federal and State Government
Social welfare Scholarship Wildlife protection Town and country planning Any disputes, Federal law takes priority
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power to hear and determine whether a person has committed a crime and the appropriate sentence
interpret the legality of any legislative and executive acts Head of Judiciary is the Lord President of Federal Court the constitution gives Judicial power exclusively to federal court, court of appeal & the 2 high court judges.
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CONTROL TOOLS
All resources and expenditures (money and property)
PROTECTION
Avoid from misused, fraud, waste, divertion, etc
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Federal Constitution, 1957 The Acts ((FPA, 1957, AA, 1957, LGA, 1976, SBA, 1980, FRA, 1997) The Regulations (TI, TC,TCL) Accounting Standard (FRS, MASB, PPK, ISA, IAS, GASB, IPSAS)
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Legal provision
Federal Constitutions, 1957 In Malaysia the constitution is known as Federal Constitution and becomes the basis in making new law. All other laws must be consistent with the constitution The supreme source of legal and the most important All the other law and regulation must be consistence with the FC Provides a basic and important requirement for FG financial aspect (Part VII) (Article 96 112)
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FC .. cont
Summary Flow of Financial requirement in FC
Make law to collect the Revenues (96)
Create CF To Record Revenues (97) Proposed budget to withdrawal the money from CF (98, 100, 101,102, 103, 104)
Prepared the annual financial statement for CF (99) Audit the annual financial statement (105, 106, 107) Approved by the legislative and published the FS
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FC ..cont
Others requirement
Grants for States (109)
Federal shall make to each state a grant, capitation grant State Road Grant for maintenance of state roads Parliament may vary rate of capitation grant, but if reduce, it should not be less than 90% of the previous years Federal shall create State Reserve Fund and make grant for State development purpose
Each state will receive portion of taxes collected within the states Each state will receive 10% of export duties of mineral produced by states
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FPA, 1957
Specific act that interpret and explain the financial requirement stated in FC Provides guidance for; Control and management of public finance for Malaysia Provides a financial and accounting procedure for collection, custody and payment of public monies and procedure for purchase, custody and disposal of public properties Provides authority for the investment of money standing in the consolidated funds To enforce provisions of the Federal Constitution relating to finance
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Contingencies Fund -Created by Article 103 of the Federal Constitution - Money in this fund shall be applied by the Minister to meet urgent and unforeseen need of expenditure for which no other provision exists -Amount used must be replaced by a supply Bill
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The estimates are required to show clearly divisions and subdivisions of every purpose of expenditure The estimates should show as nearly as possible the amount expected to be received or spent during the year The estimates of expenditure in respect of any financial year shall show purposes and subdivision of such expenditure Estimates of personal emolument should show approved number of public offices for each purpose of expenditure No addition to public offices (position or alteration of rate of personal emolument under any purpose of expenditure may be made without prior approval of Treasury/Chief Minister Virement or transfer of allocation between subheads within the same head is allowable but with prior approval from Treasury/state financial Authority Supplementary budget should be prepared after all possible virements have been made Restriction no virement from personal emoluments
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Section 9 of the Audit Act 1957 requires the financial authority of Federal and State at the end of each financial year to prepare:
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Financial regulations
Regulations refers to any instruction/guidelines /circulars provides and approved by the department Treasury Instruction
A regulation provided by the treasury for the purpose of day to day operation Explain the procedure regarding the collecting, holds and payment of public money and procedure for purchase, holds and disposes of public stores The content of TI consist of:
Financial Procedure (power and authorise to made the expenditure and procedure for virement and supplementary and excess expenditure) Accounting procedure (collecting, holds and payment of public money and procedure for purchase, holds and disposes of public stores) Auditing procedure (Audit, Loss and write-off)
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Accounting Standard
Standard published by the accounting body Normally dealt with the reporting format and disclosure requirement Voluntary in-term of applicability, subject to the rules and regulation Normally adopt by the government agencies which have an autonomy power and practice accrual basis accounting. Eg. MASB, FRS
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Conclusion
This topic provides detailed about: Structure, power and administrative government system Rules and regulation that need to be followed and complied by the government especially when dealt with the public fund.
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Tutorial Questions
1. What is the autonomy power and describes the FIVE (5) areas of autonomy power enjoyed by the state government in Malaysia as prescribed by ninth schedule of Federal Constitution, 1957. 2. Identify five main components of the Malaysian government system and describes the power or roles each of them. 3. Describes the purposes of the treasury circulars no. 5, 2004 and no. 2, 2009. 4. Q 1 & 9, Topic 2, pg. 45 and Q 1&7 Topic 3, pg. 59
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