1, 2016/2017

BACC 4

2.30 pm – 5.30 pm 24/12/2016

ACC 4052 1-3

Public Sector Accounting

Answer ALL questions

QUESTION 1
“To ensure a balance of power, the concept of “Separation of Powers” (both at Federal and
State level) is adopted.”
Required:
a. Describe the execution of separation of powers concept in Malaysia. (6 marks)

“The Malaysian government accounting agencies comprise the Treasury and the Accountant
General Department.”
Required:
b. Explain the roles of the Treasury and the Accountant General Department. (8 marks)

“Public sector criticisms have paved the way for administrative reforms and reorganizations
seeking to address various administrative ailments and enhance the efficiency and performance
of public bureaucracies.”
Required:
c. Discuss the impact of public sector reform on the efficiency and performance of public
sector entities in Malaysia. (6 marks)
(20 marks)

QUESTION 2
“The prime objective of the Malaysian Government procurement is to support Government
programmes by obtaining value for money through acquisition of works, supplies and services.
To meet this objective close attention is given to price factors as well as non-price factors such as
whole life cost, quality, quantity, timeliness, maintenance and warranty.”
“Public Private Partnership is a mode of government procurement which has been emphasized
under the new public management.”

Required:
a. Explain TWO objectives of government procurement. (4 marks)

b. Discuss THREE principles to be adhered in any government procurement. (6 marks)

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 c. Describe TWO differences between Public Private Partnership and traditional mode of
procurement. (4 marks)

d. Discuss how value for money is ensured under the Public Private Partnership. (6 marks)
(20 marks)

QUESTION 3
Budget 2017 has been lauded a “balanced deal”, considering the prevailing economic challenges
facing the country. It addresses the needs of the people and economy without compromising the
country’s financial stability. Budget 2017 was proposed to tackle pressing issues faced by the
public, such as rising cost of living and affordable housing, as well as how to encourage the
growth of local small and medium sized enterprises (The Star online, Oct 22, 2016).

Required:
a. Explain three differences between traditional and contemporary budgeting techniques in
agencies’ budget allocation. (6 marks)

b. With increasing public expectation for improved service delivery, effective budgeting
techniques give emphasis on devolved and participative budgeting. Discuss.
……………………………………………………………………………………(4 marks)

c. State briefly components of need fulfillment as one of the permanent head of expenditure
to be provided in the Islamic government. (4 marks)

d. Explain three roles of responsibility centres for effective budgetary controls. (6 marks)
(20 marks)

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QUESTION 4
With declining income and increase in government spending, citizens will want more
accountability from the government and more information on where their money is being spent.
The existence of better financial reporting can improve the credibility and integrity of public
finances and contribute to a more effective management of public resources.
Required:
a. Explain three features of fund accounting for government. (5 marks)

b. Describe the use of federal consolidated funds and the components of consolidated fund
accounts. (5 marks)

c. Briefly explain the difference between accrual and cash accounting for the treatment of
income, expenditure, assets and liabilities (4 marks)

d. Migrating to accrual accounting, discuss three strategies should be taken by government

organizations to be ready for the full adoption. (6 marks)
(20 marks)

QUESTION 5
‘Accounting information is one important tool in the process of achieving accountability.
However, there may be other ways of enhancing accountability…’ (Patton, 1992)
Required:
a. Describe the concept of accountability in the context of public sector entities. (6 marks)

b. Discuss means for discharging accountability of the government to the public. (9 marks)

c. ‘Performance audit is undertaken to determine government is not overcharged by

government suppliers due to weaknesses in service and purchase contracts’. Describe two
situations that could lead that to happen and suggest one solution each. (5 marks)
(20 marks)
End of Question Paper