Accrual - Change Management - Slides

8/10/2019 Accrual - Change Management - Slides

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Lau Kar Woh PBS1312188Izzaty binti Johari GM04408

Ammselaxmy a/p Manickadass PBS1311158

Tan Chwee Guan PBS1311217

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Management information systems (MIS)helping peopleperform all tasks related to information processing andmanagement.

3 key resources:1. People

2. Information

3. Technology

2McGraw-Hill/Irwin Copyri ght 2013 by The McGraw-H il l Companies, In c. All ri ghts reserved.


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Federal Government of Malaysia

1 January 2015Modified cash accounting Accrual accounting

Kotters Eight-Step Model

Mendelow-Scholess Power-Interest Matrix

Keys to success

Communication

Involvement

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Modified

cash

accounting

1 Jan 2015

Accrual

accounting

Federal Government of Malaysia

Accounting Basis


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Lewin

1. Increase Urgency

2. Build Guiding Teams

3. Get the Vision Right

4. Communicate for Buy-In

5. Enable Action

6. Create Short-Term Wins

7. Dont Let Up

8. Make It Stick

Engaging and enabling the

whole organisation

Implementing and sustaining the

change

Unfreeze

Move

Refreeze

Kotter (1995)

Creating a climate for change


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Eight Strategic Reform Initiatives (SRIs)

SRI 4 Strengthening the public sector

Policy Purpose: Strengthen public finance management

Policy Measures:

Adopting accrual accounting for prudent fiscal management

Implement efficient broad-based tax for revenue and fiscal stability(eg GST)

Strengthen expenditure control (eg eBidding)

Improve fiscal policy institutions and processes

Source: , New Economic Model for Malaysia: Part 1 - Strategic Policy Directions, National Economic

Advisory Council, 30 March 2010, Putrajaya.

, New Economic Model for Malaysia: Concluding Part - Strategic Policy Measures , NationalEconomic Advisory Council, 3 December 2010, Putrajaya.

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4 enablers in adopting accrual accounting,facilitate by Accrual Accounting ImplementationTask Force:

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Policiesand

standards

Laws andregulations

Technologyand

processPeople


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Main Responsibilities

Accrual Accounting Implementation Task Force

Strategise planon accrualaccountingimplementation

Developaccountingpolicy andstandards(MPSASs)based on

IPSASs

Review andproposeamendments tothe FederalConstitutionand relevant

laws, ifnecessary

Design anddevelop anintegratedaccountingsystem

Manage change


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Treasury Circular No. 4 Year 2013 Federal Governmental AccrualAccounting Implementationacts a framework in guiding ministrieson implementation.

Each ministry shall establish a Ministerial Accrual AccountingImplementation Committeeefficient and sustainableimplementation.

Chaired by Controlling Officerto oversee the development ofthe accrual accounting implementation at the ministerial level.

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Note: Additional members are subjected to the requirement of respective ministries.


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Motto
http://www2.anm.gov.my/


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Mendelow-Scholes Power-Interest Matrix

1Interest means stakeholders have some levels of interest in organisational activities.

2Power refers to stakeholders have some degrees of power to influence organisational strategies.

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Levelof2power

High C. Keep satisfiedIntervention

IFAC, IMF, UNDP, Auditor-General-

engagement

D. Key playersPart/ co-

Gov head of departmentcircular,

interview, keynote, town hall,

collaboration

Low

A. Minimal effortDirection

Public (people)website, reports

Private (accountants)MIA

Conferences

B. Keep informedEdu/ com

Gov accounting officers

questionnaire, courses,

conferences, workshops,

communication tools

Low High

Level of 1interest


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Assemblies

Dialogues

BadgesBuntings

Posters

Newsletter

Mass mediaHelpdesk

Website

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http://www2.anm.gov.my
http://www2.anm.gov.my/http://www2.anm.gov.my/http://www2.anm.gov.my/


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Endorse MPSASs

Establish policies base

on MPSASs

Review and

propose

amendment to

Federal

Constitution,

Financial Procedure

Act 1957 (Revised

1972) [Act 61] and

other acts

Perform gap

analysis

Design and develop

accrual accounting system

Manage change

Develop human capital

Involve finance and

accounting officers in

implementation


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The team has to gather and design a timeline for theimplementation of the new system team to keep track and monitorthe activity and time.

The timeline was made up for 6 years by quarters. Each year wasdivided by quarters and activities were segregated by quarters.

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Ensure guilding teams are persisting, monitoring andmeasuring progress, and not declaring victory prematurely

Get involved and communicate progress

Ensure the change is reaching all levels

Feedback on effectiveness

Keep momentum on!


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Held meetings with ministerialaccountants about challenges,

trainings, and human capital inimplementing accrual accounting.

Accounting-

General

Organised a series of dialogueswith users (high interestlowpower).

Accountingoffices/Ministerial

Accountants


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1

recognise, reward, and

model new behaviour!

2 make the change!


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Accrual accounting as one of ministerial key performance indicators(KPIs).

Government is serious and committed, use reward power to influenceand refreeze intended behaviour.

Government

Go Live 2015

Innovation and Integrity Realise Accrual AccountingMotto

Accountant-Generals Department adopts user-train-users approach.Training

Assemblies, dialogues, badges, buntings, posters, newsletter, massmedia, helpdesk and website.

Other communicationtools

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1st January 2015 will not a full stopof accrual accountingimplementation, but a starting point

of paradigm change which involveschange in thinking, working culture,advancement in skills andcompetence. It also means the startof the new way of doing business inthe government. The challengefor us is really what we do on day-2!

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Datuk Wan SelamahWan Sulaiman

Town Hall Session, 24Februari 2014


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Keys to success

Communication

Involvement

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Acknowledgment

1.Accountant-Generals Department

2.Malaysian Maritime Enforcement Agency

Note

The views expressed in this paper are the writers own, and notAccountant-Generals Departments official representations.

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