UNIVERSITI SAINS MALAYSIA

School of Management

Bachelor of Accounting Degree

COURSE OUTLINE

ACW 420 – PUBLIC SECTOR ACCOUNTING

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, government’s accounting operation, government’s 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

COURSE EVALUATION

Coursework 40%Mid Term Exam 10%Quizzes/Project/Tutorial 10%Assignments 20%

Final Exam 60 %

TOTAL 100 %

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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 Teaching Learning Method1 1,22 1,2, 83 1,2, 5, 84 1,5,8

Assessment Learning outcome Levels of LearningQuiz 1,2,3,4 1,2,3Mid term 1,2,3,4 1,2,3,4Assignment 1,2,3,4,5 1,2,3,4,5Project 1,2,3,4 1,2,3,4,5,6Final exam 1,2,3,4 1,2,3,4,5,6

aTeaching Learning Methods:1. Lecture2. Tutorials3. Problem Based Learning4. Case Study5. Project6. Project Presentation7. Library Search

bLevels of Learning:1. Recall2. Comprehension3. Understanding4. Analysis5. Application6. 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 Discussion Topic1 INTRODUCTION TO PUBLIC SECTOR

ACCOUNTING 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

2 & 3 GOVERNMENT STRUCTURE AND THE LAW FRAMEWORK IN MALAYSIAN PUBLIC SECTOR Structure and administration of Malaysian Government

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- 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 country’s budgetary system and

process Budgeting process Component of budgeting Budgeting Techniques/Methods Discussions on the achievements and

effectiveness of MBS6 & 8 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 Mid Semester Examination9 & 10 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

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Disclosures requirements Presentation of the Financial Statement

- Presentation at the Parliament and State Assembly

Memorandum Account Other issues relating to Financial Statements

11 &12 PUBLIC SECTOR AUDITING 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

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.

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)

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Jones R. & Pendelbury M. Public Sector Accounting (Pitman, J&P, 1982)

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 Not-For-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.

Others Acts, Circulars and Standard

Treasury Instruction, Jabatan cetak kerajaan, Kuala Lumpur.

Treasury Circulars, no. 5, 2007Treasury Circulars, no. 5, 2004Treasury Circulars, no. 9, 2004Treasury Circulars, no. 15, 1994Treasury Circulars, no. 2, 1979Treasury Circulars, no. 9, 1993Treasury Circulars, no. 2, 1993International Standard of AuditingMalaysian Accounting Standards Board related pronouncementInternational Accounting Standard related pronouncementPiawaian Perakaunan Kerajaan. Akauntan Negara Malaysia, Kuala Lumpur

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