COURSE SYNOPSIS The course is related to the management of finance in public sector.

It exposes students to various concepts, ethics and issues in Public Sector Accounting, especially in the context of public sector in Malaysia. Course coverage includes the role and importance of public sector, public sector components, laws relating to public finance, government management mechanism, management of public sector finance, budget and budget controls, governments accounting operation, governments financial statements and the mechanisms in detecting and measuring accountability in the management of finance in public sector. COURSE OBJECTIVES To instil in students the basics and important principles which are being practiced in the public sector in Malaysia To expose students to theories of general scenarios and work ethics of public sector accounting in Malaysia To prepare students in being capable of carrying out job responsibilities relating to public sector/ government and not limited to profit-making organisation only

UNIVERSITI SAINS MALAYSIA School of Management Bachelor of Accounting Degree

COURSE OUTLINE ACW 420 PUBLIC SECTOR ACCOUNTING

COURSE EVALUATION Coursework Mid Term Exam Quizzes/Project/Tutorial Assignments Final Exam TOTAL 40% 10% 10% 20% 60 % 100 %

LEARNING OUTCOME 1. To be able to understand the role and importance of accounting and accountants in public sector institutions. 2. To be able to describe and understand the role and structures of governments agencies at every levels. 3. To understand the accounting principles and practices in public sector organisations. 4. To understand public sectors budgetary process, planning and control of expenditures. Learning outcome 1 2 3 4 Assessment Quiz Mid term Assignment Project Final exam Teaching Learning Method 1,2 1,2, 8 1,2, 5, 8 1,5,8 Learning outcome 1,2,3,4 1,2,3,4 1,2,3,4,5 1,2,3,4 1,2,3,4 Levels of Learning 1,2,3 1,2,3,4 1,2,3,4,5 1,2,3,4,5,6 1,2,3,4,5,6

Levels of Learning: 1. Recall 2. Comprehension 3. Understanding 4. Analysis 5. Application 6. Synthesis

ATTENDANCE Students have to fulfil 70% class attendance requirement. Failure to observe this rule will result in the student not being able to sit for the final exam. COURSE CONTENTS Week 1 Discussion Topic TO PUBLIC

INTRODUCTION ACCOUNTING

SECTOR

aTeaching Learning Methods: 1. Lecture 2. Tutorials 3. Problem Based Learning 4. Case Study 5. Project 6. Project Presentation 7. Library Search

2&3

Definition of public sector and public sector accounting The differences between Public Sector accounting and Private Sector accounting Roles and importance of public sector Objectives of Public Sector Accounting Characteristic of Public Sector Accounting Components of public sector Management mechanism of the Malaysian government Roles of public sector accountants The users and uses of Financial Report

GOVERNMENT STRUCTURE AND THE LAW FRAMEWORK IN MALAYSIAN PUBLIC SECTOR

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

4&5

BUDGETING AND BUDGETARY CONTROL

Planning and Control of Public Finance The concept and importance of budgeting The differences between budgeting in public and private sector Purposes of budget Types of budgeting Evolution of countrys budgetary system and process Budgeting process Component of budgeting Budgeting Techniques/Methods Discussions on the achievements and effectiveness of MBS ACCOUNTING PRINCIPLES AND PRACTICES Basic concepts, principles and accounting

assumptions - Consolidated Fund - Accounting Basis Features of public sector accounting - Budgetary Accounting - Fund Accounting - Accounting for Vote - Recognition of incomes and expenditures - Recognition of Assets Classification and coding Accounting treatments and recognition - Recording of incomes, expenditures and adjustments - Recording of Assets - Transfer of fund/allocation characteristics of government accounting Accounting Practices at - Federal Government - State Government - Local government The Malaysian Government Computerised Accounting System

7 9 & 10

Mid Semester Examination FINANCIAL REPORTING OF PUBLIC SECTOR ENTITY

Objectives Financial Reporting Legal requirements and procedures Essential features in Financial Reporting Preparation of the financial statements for -Federal/state government - Local government/statutory bodies Statements need to be prepared -Balance Sheet - Incomes and Expenditures Statement - Cash flow Statement - Statement of changes in equity - Notes to the accounts

6&8

11 &12

PUBLIC SECTOR AUDITING

Disclosures requirements Presentation of the Financial Statement - Presentation at the Parliament and State Assembly Memorandum Account Other issues relating to Financial Statements Concepts and Objectives of Auditing Legal requirements and procedures Roles and responsibilities of Auditor General Scope and types of auditing Audit process Audit Reports The differences between auditing in public sector and private sector Public Account Committee Internal Audit in public sector Issues related with the public sector auditing

Malaysian Law, Federal Constitution of Malaysia, Jabatan Cetak Kerajaan, Kuala Lumpur. Malaysian Law, Financial Procedures Act 1957 Jabatan Cetak Kerajaan, Kuala Lumpur. Malaysian Law, Statutory Bodies Act 1980, Jabatan Cetak Kerajaan, Kuala Lumpur Malaysian Law, Audit Act, 1957, Jabatan Cetak Kerajaan, Kuala Lumpur. Malaysian Law, Local Government Act 1976, Jabatan Cetak Kerajaan, Kuala Lumpur.
ADDITIONAL REFERENCES Omar Othman, Mohamad Sharofi, Syed Soffian, Siti Zabedah et al. (2007). Public Sector Accounting in Malaysia, Thompson, Kuala Lumpur Engku Ismail, Mohamad Sharofi, Syed Soffian, Siti Zabedah & Zarifah (2006). Perakaunan Sektor Awam Di Malaysia, Penerbit Universiti Utara Malaysia: Sintok Hanley D., Likierman A., Perrin J., Evans M., Lapley I. & Whiteoak J. Public Sector Accounting and Financial Control (HHL & P, 3rd edition, 1992) Jones R. & Pendelbury M. Public Sector Accounting (Pitman, J&P, 1982)

13 & 14

DETECTION MECHANISM AND ACCOUNTABILITY MEASUREMENT IN FINANCIAL MANAGEMENT OF PUBLIC SECTOR

Accountability and Stewardship in Public Sector The role of financial information in public accountability The present process and mechanisms Problems in measuring and achieving accountability Accountability principles A framework analysis Government Governance Financial performance

MAIN TEXT BOOKS AND REFERENCES Syed Soffian, Engku Ismail, Fauziah Hanim & Hassan (2011). Public Sector Accounting and Financial Management in Malaysia, (Concepts and Practice), Prentice-Hall. Kuala Lumpur.

Freeman, R.J., Shoulders, C.D., (2003), Govermental and Nonprofit Accounting. Prentice Hall: New Jersey.
Azham Md. Ali. Accountability in the Audit Profession in Malaysia. Briston J.R. (1983) Government Accounting, an Introduction to Accountancy and Finance, MacMillan, UK Hartman D.J. Government Accounting and Budgeting. Lynn & Freeman. Fund Accounting (1974). Razek J.R. & Hosch G.A. Introduction to Governmental and NotFor-Profit Accounting (Prentice-Hall, 1985). Tan Sri Dato Abdullah Ayub. The Constitution of Malaysia, Its Development 1957-1977 Financial Provision of the Malaysian Constitution and Their Operation in Practice. Wu Min Aun. Malaysian Legal System (1982). Malaysian Economic Report. Bank Negara Malaysia (BNM) Report. Malaysia Kita.

Treasury Circulars, no. 9, 2004 Treasury Circulars, no. 15, 1994 Treasury Circulars, no. 2, 1979 Treasury Circulars, no. 9, 1993 Treasury Circulars, no. 2, 1993 International Standard of Auditing Malaysian Accounting Standards Board related pronouncement International Accounting Standard related pronouncement Piawaian Perakaunan Kerajaan. Akauntan Negara Malaysia, Kuala Lumpur

Others Acts, Circulars and Standard Treasury Instruction, Jabatan cetak kerajaan, Kuala Lumpur. Treasury Circulars, no. 5, 2007 Treasury Circulars, no. 5, 2004