BKAL 3023 Group H & I

Answer Group Tutorial 2

1. Q 11 Chapter 1; page 92-94 text book (Public Sector Financial Accounting and Reporting
Practiced in Malaysia); UUM press, 2023.
Journal entry for FGOM year 2023.
FGOM Consolidated Fund Journal Entries under MCB
1. Consolidated Revenue Account
a. Dr. Estimate approved revenue RM206,000,000
Dr. Fund balance RM 39,000,000
Cr. Estimate approve expenditure RM245,000,000
(To record approved budget for the year 2023)

b. Dr. Cash RM87,000,000

Cr. Revenue: Taxes RM75,000,000
Cr. Revenue; Non-taxes RM12,000,000
(To record taxes and non-taxes collection)

e. Dr. Expenditures (Charged & Supply) RM113,000,000

Cr. Cash RM113,000,000
(To record charged & supply expenditure out from CRA)

f. Dr. Supply expenditure (3,000,000 + 5,000,000) RM8,000,000

Cr. Cash RM8,000,000
(To record supply expenditure “contribution to housing & sinking fund” out from CRA)
k. Dr. Cash RM35,000,000
Cr. Income/revenue from royalty RM35,000,000
(To record an income from royalty paid by PETRONAS berhad)

2. Consolidated Trust Account

c. Dr. Cash (10% x 8,000,000) RM800,000
Cr. Trust Deposits RM800,000
(To record collection of trust deposits from XYZ company)

d. Dr. Cash RM50,000,000

Cr. Development Fund RM50,000,000
(To record the transfer from CLA to development fund).

f. Dr. Cash (3,000,000 + 5,000,000) RM8,000,000

Cr. Development Fund RM5,000,000
Cr. Covid-19 Fund RM3,000,000
(To record the contribution from CRA to Housing loan fund and sinking fund).

a. Dr. Cash RM800,000

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 Dr. Asset (in-kind) RM150,000,000
Cr. Development fund RM150,800,000
(To record the grant received in cash and in-kind for development fund)

b. Dr. Trust Deposits RM40,000

Cr. Cash RM40,000
(To record a repayment of public trust deposits)

c. Dr. Cash RM100,000,000

Cr. Investment income from sinking fund RM100,000,000
(To record an income from sinking fund investment)

3. Consolidated Loan Account

d. Dr. Cash RM50,000,000
Cr. Treasury Bills RM50,000,000
(To record loan made through 8% Treasury Bill, for infrastructure development)

Dr. Transfer RM50,000,000

Cr. Cash RM50,000,000
(To record transfer of loan for infrastructure to development fund)

d. Dr. Cash RM600,000,000

Cr. Government Bond RM600,000,000
(To record a loan made for loan repayment)

Dr. Loan repayment RM600,000,000

Cr. Cash RM600,000,000
(To record a loan repayment made through borrowing)

2. Q 12 Chapter 2; page 156-158 text book (Public Sector Financial Accounting and Reporting
Practiced in Malaysia); UUM press, 2023.

a. Malaysian Federal Government Statement of Financial Position

FEDERAL GOVERNMENT OF MALAYSIA

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

PUBLIC MONIES NOTE RM

Cash 3 26,030,389,682
Investment 4 40,063,421,604 (a)
66,093,811,286
HELD FOR:
CONSOLIDATED FUND
Consolidated Revenue Account 5 11,863,127,086 /(b)

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 Consolidated Loan Account 6 0
Consolidated Trust Account 7 54,230,684,200 (c)
66,093,811,286

b. Malaysian Federal Government Statement of Memorandum Account

FEDERAL GOVERNMENT OF MALAYSIA

STATEMENT OF MEMORANDUM ACCOUNT
AS AT 31 DECEMBER 2022
NOTE RM
MEMORANDUM OF ASSETS 9
Account Receivables 106,422,742,308 (d)
Investments 33,191,463,711 (e)
Total Assets 139,614,206,019

MEMORANDUM OF LIABILITIES 10
Federal Debt 879,559,708,810 (f)
Private Finance Initiative Liabilities 37,034,467,015
Financial Commitments 269,940,211,375
Other Liabilities 278,000,205
Total Liabilities 1,186,812,387,405

Calculations
a. Investments
Trust Fund Investments 33,289,717,469
General Investments 6,773,704,135
40,063,421,604

b. CRA
Balance at 1 January 2022 RM 11,863,127,086
(+) Total Revenues Collected in the year RM 225,074,947,242
(-) Total operating expenditure (after transfer) RM 225,074,947,242
Balance at 31December 2022 RM11,863,127,086

c. CTA
Government Trust Funds RM 22,722,748,634
Public Trust Fund RM 20,072,175,753
Deposits RM 11,435,759,813
RM54,230,684,200
d. Account Receivables
Recoverable Loans and Advances RM 58,900,685,743
Other Receivables RM 47,522,056,565
RM106,422,742,308
e. Investments
Investment in Companies RM32,174,788,786
Investment in Statutory Bodies RM978,100,696

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 Investment in International Agency RM38,574,229
RM33,191,463,711
f. Federal Debt
Loans (Domestic & Foreign) RM 874,339,147,500
Foreign Assistance RM 5,220,561,310
RM879,559,708,810

3. Q 1 Chapter 3; page 256 text book (Public Sector Financial Accounting and Reporting
Practiced in Malaysia); UUM press, 2023.
The main objective of public sector audit is to provide assurance to parliament, the
government and the public that government department, ministries and agencies are
operating and accounting for their performance in accordance with the Act of Parliament, the
relevant regulations and public interest. To achieve these main objectives, the following three
sub-objectives needs to be achieved;

a. Legal and regulatory compliance - To assure parliament that the transactions

undertaken by the government reporting organization were with the appropriation law
and specifically in line with the regulations set for the organization concern
b. Reliability - To assure parliament as to the fact that, the published accounts resulting
from the organizational transaction in using the appropriated fund is reliable.
c. Value for money - To determine the extent of economy, efficiency and effectiveness that
resulted in the use of the resources that were given to the organization

Alternative Answer
There are four core objectives of SAIs as outlined in the Lima Declaration of Guidelines on
Auditing Precepts agreed by the International Organization of Supreme Audit Institutions
(INTOSAI, 1998) that are highly relevant and related with the fight against corruption, are;

a. the proper and effective use of public funds.

b. the development of sound financial management.
c. the proper execution of administrative activities.
d. the communication of information to public authorities and the general public through the
publication of objective reports.

4. Q 1 Chapter 4; page 307 text book (Public Sector Financial Accounting and Reporting
Practiced in Malaysia); UUM press, 2023.
The concept of accountability and stewardship in Public Sector Financial Management in
Malaysia are as follows;
Both accountability and stewardship are very close and interlinked. In order to be
accountable, the stewardship must be present and the same goes when one has the
stewardship in itself, it must discharge accountability.

Hence, the difference between this two are accountability is more on the obligation
that one should be discharged in order to meet the requirement, or in other
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 word, accountability is come together with the power, while stewardship is something related
to the worship, spirit or awareness to discharge out their obligation, or in other word
voluntarily to be accountable. These two terms work hand in hand to ensure both are
perfectly present.

In the context of public sector financial management, the civil servants who given the power
to manage and make decision on public fund must be shown their accountability and need to
be accountable in order to discharge their duty, and normally published yearly financial
statements are be used as a medium to demonstrate their accountability to the public.

5. Q 1 Chapter 5; page 355 text book (Public Sector Financial Accounting and Reporting
Practiced in Malaysia); UUM press, 2023.
Explain the concept of performance measurement in public sector.
Performance measurement is a very complex matter especially in public sector where it’s
depends on numerous variables such as tools, indicators, target, etc. and requires more than
the mere choice of an adequate measurement model. By definition, performance
measurement is a process of monitoring and reporting organizational or
program performance, in particular progress toward achieving pre-
established goals. Thus, it is comprising of a set of activities involving regular
collection and reporting of information about the results of the government
activities in terms of quality, efficiency and effectiveness . The areas of
performance are wide which included accountability, transparency,
economy, efficiency and effectiveness in the provision of goods and
services.