Process of Public Financial Administration .

Stage 1 :
Planning Stage 4 :
Auditing Stages of Budget (Budgetary Process .
·
Audit is an independant assessment
To program's details 1 4) Implementation
organize Preparation Execution and
·
the .

of the fairness and formulation .

↳ company's financial statements and budget has become law , it is implemented in the fiscal year
A are involves preparing estimates of revenue once
- -

·
Financial plan - achieve strategic goals & objectives -

presented by its management.

expenditure for a specific future period , normally by various agencies .
·
performed to ascertain the &
validity a year. -

Budget law (the supply Act) contains

·
Describe the program in detail reliability of information -
Instruction to prepare the budget :
call circular ↳ appropriations on programs and activities
↳ activities ↳ also to provide an assessment of a ↳ issued before the new fiscal year ↳includes such items as salaries ,

↳ ↳ no of
system's internal control In the circular personnel and rank
.
:
resources
-

·
Auditors of financial statement · state of economy ↳ equipment
↳ time frames involved
) carried out by internal auditors
↳ ·
rate of growth ↳ other
are given operating expenditures
established by the organization ( allowed to spend beyond what is
forecast of revenue Agencies .
appropriated
·
-
are not

Produce final output

·
: BUDGET STATEMENT ↳ external auditor in the
spread throughout fiscal year and
coming year -

spending is the is subject

can independant audit firms also states examination by internal and external audits
-
to .
·
Before planning , a study is done to analyze · maximum percentage in the increase or ceiling by each agency -

supplementary expenditure is only allowed :

↳ country's demand ↳ depending on whether times are good or otherwise · in case of emergency or

↳ political Stage 5 : Reviewing · Due to unforeseen circumstances (must go through the same process again)
Assessment achievement of Whatever the state of always reminded
outside) on the economy , agencies
·

Stability (of the country are As for revenue from

-

- social tax :
-
a new

↳ economic
an organization/agency to be prudent in their
budget submission n. ·
separate legislation or amended legislation has had to be passed
↳ in terms of financial performance before it can be collected .

Government agencies involved : that has been achieved throughout 2) Submission to and Examination by Central Agencies. For new source of revenue
the
-
a
totally ,

↳ prime Minister's office year. proposed budget is submitted to the central established for
agencies administrative structure machinery
-

· an must be
↳) the Ministries ·
Reviewing report can highlight responsible for finance and personnel its collection and .
.

management
↳ Economic Planning Unit CEPU) ↳ achievements weaknesses of the -
In Malaysia : -
There is also a system of monitoring the implementation of
↳ MAMPY ↳
shortcoming current financial
plan- · personnel : Public
Service Department Operating Budget .

↳ Bank Negara . ·
financial review report can be used as ↳ to keep track of the amount of fund expended under each standard
·
finance :
Treasury
↳ basis for
preparing future budget plan .

object of expenditures
.
with the latter having the final is responsible
say as it
-

↳ for financial purpose rather than to measure the progress or performance

Stage 2 :
Budgeting Revenues of PFA or Budget for the budget as a whole .
of the agencies·
1) Taxes Cland taxes , business corporate taxes proposed budget of ↳ All agencies submit
or
,
-

agency are required to to the Accountant general a quarterly

Show intended /estimated revenues [expenditures
·

personal taxes , service taxes) (direct . tax) ↳ is scrutinized examined by the central agencies report on the Operating Budget
.

of the government 2) customs duties or tariffs Clevy , import & export which normally prune them down to within the
ceiling
↳ financial resources can be appropriately allocated .

duties) (indirect tax ( set earlier-

3)
Penalties and fines traffic summons) The whole budget covering all the agencies is
-

·
To allow political process 4) Gifts (public donations wakaf international donations) then submitted to of Finance for
5) Audit or Review
political
:
, ,
the minister
5) International

executivebody dy> involves

loans from international organizations and other input prior to submission to the Cabinet,
2 major branches of gov
.

final stage
-

Clmf , World Bank , Asean Bank) Or

the final .
policy-making authority involves
auditing or reviewing the execution or implementation
·
A document that outlined the estimate expenditure & return foreign countries (the Us Japan
, , People
for particular Republic of China) 3) Cabinet and Legislative Approval of the approve budget.
year.
· National finance :
period covered by a budget : a year 6) Quid Pro Quo payment such as fees
, charges . -
National budget proposal is then presented to the
Paka cabinet
designed
-
:
financial / fiscal year
year .
(medical fees in public hospitals, payment for by the Minister of Finance . Reviews of budget implementation are to
·
Government annual budget : statement that explains the renewing driving licence , payment to renew
passports) -
The Cabinet will carefully consider the proposal , · see the effectiveness
:
expected amount of: especially ·
check compliance by the organizations of the authorization to spend
↳ country's expenditure return gains by ·
new programs & taxes for ·
Whether the objectives had been achieved
.
↳ types of ↳ political
expenditure the -
country Expenses of P F
. .
Expenditure (Budget)
· enables the actual financial operation of the gov . 1) Development expenditure : unrepeatable ↳ economic ~ advice of PM

stated G other Auditor General YDPA) concurrence of Conference of pulers

-
in monetary terms . Capital expenditure (to create return) ramifications .

Cappointed by the
=
·
↳ defrayed through 2 financial resources The budget is then , presented to the legislature in the
oresponsible for examining
-

Stage 3 :
Accounting : current account and loan .
form of law
.

· Art of recording , & summarizing

classifying in a signicant 2) operating expenditure repeatable :
-

A budget is more than a revenue and expenditure

·
enquiring into and auditing the accounts of all federal and state agencies.
manner and in terms of expense it contains

↳ money 4)
salary allowances ↳ rents ↳ fiscal deconomic policies of the ruling party
↳ ↳ utilities He submits
trans acti ons and events ↳ ambitious programs annual audit report to the Dewan
Rakyat
-
.
an

Prepared to provide financial information report about the ↳ new taxes/reduction or abolition of some
·
or
2
parts of managing expenses ↳ refers it CPAC)
to its Public Accounts Committee
outside
.

government business to people inside the government entity .

Under legislature is Parliament

Go examine any irregularities
Professional
9) Defrayal expenditure the Westminster model
accountante
:
carried out
by
: -
·

in the of public monies or public stores

Financial procedures
defrayed by Kumpulan Wang accounting .

budget will easily passed ruling party has

·
-

expenditure be as long as the a

Gestablished by the Accountant General Offices
.
Disatukan (Federal consolidated Fund) sizeable majority
·
objective of Accountant General => does not need to
get approval from the When
·
majority is slim
, however an the ruling party
↳ to enhance accountability transparency in the Federal Parliament every year (Royal Allotment ,
is a shaky coalition , budget will face a difficult process.
government's allotment Chief Justice, passed
accounting and financial management. ~ emuneration or for the when a budget law is not or is defeated by
-

↓ or a for the Auditor General .

Legislature
b) supply expenditure expenditure for every ↳ gov cannot function in the fiscal as there are no
year
: ·

Service except that is defrayed by funds to pay for services , salaries and
Consolited Fund other operational costs
·
-
This expenditure is defrayed by Akann
Hasil Disatukan (Consolidated Revenue ACC ) .

Sofia Solehah .