ASIA PUBLIC SECTOR ACCOUNTING & REPORTING ......— ACCA, CIMA, CPA Australia, MICPA ACCOUNTANT...
Transcript of ASIA PUBLIC SECTOR ACCOUNTING & REPORTING ......— ACCA, CIMA, CPA Australia, MICPA ACCOUNTANT...
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
ASIA PUBLIC SECTOR ACCOUNTING &REPORTING CONFERENCE
REGIONAL AND NATIONAL EXPERIENCES
MALAYSIA
Hotel Hilton, Kuala Lumpur
14th Sept 2015
Devantri Kaur
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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INTRODUCTIONTOP – DOWN APPROACH
— NEM Report
— Fiscal Discipline and Reform
REFERENCES AND ASSISTANCE
● IPSASB STUDY 14 - Transition to the Accrual Basis of Accounting
● IPSAS 33 - First-Time Adoption of Accrual Basis IPSASs
● STUDY VISITS
● INTERNATIONAL MONETARY FUND (IMF) Technical Assistance
— Review Govt. Strategy for Accrual Accounting
— Change Management for External Stakeholders
— Potential Impact on Fiscal Deficit
— Internal Control for Accrual Accounting
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Legend : Work Completed
20162012 2013 2014 20152011
*1GFMAS Go Live !
Awareness
Core Team Set Up
Review & Approve Amendment of FC, FPA 1957 And Relevant Act
GASAC Set Up
Accounting Policies Approval
Development of Accounting Standards
Core Team Training
Data Collection Training (Assets)
SAD’s Set Up
CFO Training
Consultant Appointment
New Biz Requirement
System Design
TOT & EUT
SI Appointment
System Development & Testing
System Documentation & Manuals
Data Collection
Data Migration
PROJECT TIMELINE
*Subject to Readiness of System!
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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GovernmentAccounting
Standard AdvisoryCommittee (GASAC)
GovernmentAccounting
Standard AdvisoryCommittee (GASAC)
SystemDevelopment
Working Committee
SystemDevelopment
Working Committee
Accrual AccountingImplementation
Working Committee
Accrual AccountingImplementation
Working Committee
Accrual AccountingSteering Committee
[Chairman : AG]
Accrual AccountingSteering Committee
[Chairman : AG]
GOVERNANCE STRUCTURE
Ministry AccrualAccounting
ImplementationCommittee
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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IMPLEMENTATION STRATEGY
● STANDARDS & POLICIES
— Accounting Standards (MPSAS)
— Accounting Policies and Manual
● LAW & REGULATION
— Review and Propose amendment of legislation and rules
● PROCESS & TECHNOLOGY
— System and Processes Gap Analysis
— Design and Develop Accounting System
● HUMAN RESOURCES
— Capacity Building
— Change Management
— Training
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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STANDARDS AND POLICIES &LAW AND REGULATION
GOVERNMENT ACCOUNTING STANDARDS ADVISORY COMMITTEE (GASAC)
— Members – Professional Accounting Bodies, Auditor, MOF, Ministries, Universities, StateTreasurer, Accountant General’s Department etc.
● STANDARDS AND POLICIES
— IPSASMPSAS
— Accrual Accounting Policy
— Transition Policy
— Accrual Accounting Manual
— Day 2 SOPs (work in progress)
● LAW AND REGULATION
— Proposed amendments to Financial Procedure Act 1957 and other Relevant Acts(work in progress)
— Concept of Consolidated Fund
— Financial Statements to be tabled
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PROCESS & TECHNOLOGY
● IT SYSTEM – Centralized, Single Data Base, Integrated, Harmonized
● PROCESS TO BE – Payment, Receipting, Payroll, Bulk Payment
● CHART OF ACCOUNTS – New Reporting Structure, COA & AccountingCodes
● FINANCIAL DOCUMENTS – Accrual Requirement, Current Requirement(GST), Value Added Process (e.g. – Online Acknowledgement), InformationAnalysis
● DATA COLLECTION – Assets, Liabilities
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DATA COLLECTION
● TRANSITION POLICY
● SERVICE PROVIDER
● BASE ASSET SYSTEMS
● DATA COLLECTION STRATEGY
— Formulation & Testing Of Templates
— Training
— Roll Out to Pilot and Not Pilot RCCCs
— Cost or Deemed Cost
— Monitoring LMs progress
● DATA VERIFICATION PROCESS
● MOCK RUNS
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HUMAN RESOURCES
CAPACITY BUILDING
● ACCOUNTS DIVISION IN MINISTRIES
— Creation / Strengthen
— Functions
— Management Accounting
— Consultation
— Financial Accounting
— Monitoring
— Administration & Finance
● RCCC
— Strengthening with minimum accounting personnel (work in progress)
● PROFESSIONAL QUALIFICATIONS
— ACCA, CIMA, CPA Australia, MICPA
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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Public AccountsCommittee (PAC) –
Presentation, Reports
Town hall withAccountant General
Meeting – TopManagement of Public
Administration
Thought LeadershipSeminar
National Public SectorAccountants
Conference (NAPSAC)
Promotion - Bulletin,Flyers, Banners,Websites, Video
Courses – FinancialManagement
Accounting Manual
Workshop, CoursesCFO, IPSAS, Soft Skills
etc.Policy and Standards
Financial DocumentsConcepts of Accrual
Accounting
Chart of AccountsSystem Training –
1GFMAS
CHANGE MANAGEMENT& TRAINING
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CHALLENGESSYSTEM DEVELOPMENT
• Complexity of public sector accounting• Requirements for
• Modified Cash and Accrual Reports• Interface with external systems• Dual Ledger• Inter Entity• Trust Accounts
• Tight timeline for system development
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CHALLENGESCAPACITY BUILDING
● LACK/INADEQUATE ACCOUNTING PERSONNEL IN RCCCs
— Budget Constrain
— Government Policy – Lean Organization
● UP SKILL PUBLIC SECTOR PERSONNEL
— Accounting Standard
— Accounting Policies
— Unlearn and Learn
● IT SYSTEM TRAINING
— 50,000 End-Users (First Time SAP users)
— Limited Time
— Many Modules
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CHALLENGESASSETS & LIABILITIES OPENING BALANCES
● Unavailability of Records
● Incompleteness of Records
● Inaccuracy of Records
● Complex Assets and Liabilities (PFIs & PPPs)
● Military Assets
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CHALLENGESMANAGING STAKEHOLDERS’ EXPECTATION
DIVERSE / CONFLICTING EXPECTATIONS
● National Audit Department – True and Fair View
● Top Management Of Public Administration – Adequate Information
● Public Accounts Committee – Accountability
● Public – Accountability & Transparency
● Politicians – Feel / Look Good
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LESSON LEARNT
● Be Practical With Solutions (i.e. componentization)
● Base Asset System Helps
● Motivate The LMs To Get Moving
● Understand The Concept Of Materiality
● Recognize The Need To Focus On Day 2 Activities
● Firm User Requirement
● Minimum Customization – off-the-shelf accounting system
● Realistic Timeline
● Project Management – close monitoring
ACCOUNTANT GENERAL’S DEPARTMENT OF MALAYSIA
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