CHAPTER 12

LEARNING OUTCOMES

CLO 1
Identify main components of the public sector and the relevant
management concepts
Chapter Outline
• Definition of Accountability
• Objectives of Accountability
• Principles of effective accountability
• Types of Accountability
• Accountability frameworks
• Components of Accountability
• Chain of Accountability
• Challenges in Accountability
• Approaches in enhancing Accountability
 Accountability-Definition
Accountability refers to the institutionalized relationship
between two parties- accountor and accountee.

Relates to ensuring certain parties to be responsible and

answerable for their actions on a given task, as well as take
necessary remedial actions for any unfulfilled responsibilities.

“a relationship based on obligations to demonstrate, review

and take responsibility for performance, both the results
achieved in light of agreed expectations and the means used
(Auditor General of Canada, 2002).
Accountability-Definition
“ … the process whereby public sector entities, and the
individuals within them, are responsible for their
decisions and actions, including their stewardship of
public funds and all aspects of performance, and
submit themselves to appropriate external scrutiny. It is
achieved by all parties having a clear understanding of
those responsibilities, and having clearly defined roles
through a robust structure. In effect, accountability is
the obligation to answer for responsibility conferred”
IFAC (2001)
Accountability-objectives
Accountability-PRINCIPLES
OF EFFECTIVE
ACCOUNTABILITY
Accountability-PRINCIPLES
OF EFFECTIVE
ACCOUNTABILITY
• the roles and responsibilities of the parties in the accountability
relationship should be well understood and agreed upon
• the objectives being pursued, the accomplishment expected, and
the constraint to be respected should be explicit and agreed upon
• performance expectations should be clearly linked to and balanced
with each party's capacity to deliver
• Credible and timely information should be reported to
demonstrate what has been achieved, whether the means used
were appropriate and what has been learned
• Fair and informed review and feedback on performance should be
carried out by the parties
Accountability-types
Accountability-types
Types of Accountability
1. Financial / Public Accountability
• Covers the responsibility of government
personnel to comply with all laws, rules and
regulations in performing all their functions
• Sec 4 FPA 1957.
• To ensures the accounts maintained are in an
orderly manner and with integrity in accordance
with the applicable laws and regulations i.e. FC,
FPA 1957, Audit Act 1957, TI , TC and Accountant
General Circulars
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Types of Accountability
2. Programme Accountability
• Government personnel is responsible to ensure that
the objectives of the individual programme and
activity of government organisations are achieved.
• The plans of programmes & activities stated in the
annual budget will have to be implemented
accordingly
• In Malaysia, each agency is bound to implement all
the plans identified.

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Types of Accountability
3. Management Accountability
• Management of government organisation is
responsible to ensure there is effective, efficient and
economic utilisation of government resources under
their control
• Budget as management tools is the key element of
accountability in Malaysia
• As a result, various statement and reports will than
be prepared to measure the level of accountability
achieved
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Accountability-frameworks
Accountability-components
Chain of Accountability
• Budget submission from agency -Parliament approve –Treasury
disburse money
• Agency submit yearly estimate-submit annual financial statement
for audit
• Accountant General Department will consolidate and prepare
annual financial statement and sent for audit before submit to the
Parliament.
Accountability-Challenges
Accountability-Challenges
• Managing Outcome-Based Results
• Issues relating to human capital
• Managing attitudes concerning ‘resistance to change’
• Creating high work ethics and values
• Keeping up with the growing information technology environment
Approaches in enhancing
Accountability
ENHANCE ACCOUNTABILITY
Establish regular review
• to ensure that systems and practices remain up
to date and relevant, then all public sector will
be well guided

Existence of good governance setting

• each organisation shuld ensure that there are
exists a standard of behaviour, which can be
present in the form of code of conduct and
strong management leadership
ENHANCE ACCOUNTABILITY
• Strengthen Internal control
• effective internal control will facilitate the
management of operations, internal control system,
proper financial accounting system to ensure the
organizations services are of good quality.

• Encourage Performance achivement

• organisation should identify the most suitable way in
embracing good work ethics among employees and
helathy workplace for the employees.
• Good performance staff should be given recognition
and rewards ; diciplinary actions should be taken in
any wrong doings or misconduct
ENHANCE ACCOUNTABILITY

Create sufficient post

• should create sufficient number of jobs positions to
cater for the increasing load of services to be provided.

Build active “public participation”

• initiative for the organisations to obtain comments
and feedbacks for effective fulfilment of stakeholders'
needs and demands
• aim for a better decisions that are supported by
various stakeholders