BKAL3023_—__ CONFIDENTIAL CONFIDENTIAL ® UNIVERSITI UTARA MALAYSIA FINAL EXAM SECOND SEMESTER SESSION 2010/2011 COURSE CODE/NAME —: BKAL3023 PUBLIC SECTOR ACCOUNTING DATE : 21 MAY 2011 (SATURDAY) TIME :9.00AM — 12.00PM (3 HOURS) VENUE, :DTSO INSTRUCTION : 1. This book script contains FOUR (4) questions in FOUR (4) printed pages excluding the cover page. 2. Answer ALL the questions in the answer sheets provided. MATRIC No: | | ‘Cin-word ) (Cin number ) IDENTIFICATION CARD No:| : IETTT LECTURER: GRoup ; TABLE No :[_ | DO NOT OPEN THIS EXAMINATION PAPER UNTIL INSTRUCTED CONFIDENTIALBKAL 3023 PUBLIC SECTOR ACCOUNTING QUESTION 1 (25 MARKS: 45 MINUTES) A. The Government of Malaysia has clearly stated that the way forward is to enhance transparency and accountability of the public sector. In realizing these objectives, there is a need for all sectors of the economy to collaborate and contribute towards nation building. (Deputy Minister of Human Resource of Malaysia, 2010) REQUIRED: Based on the statement above, discuss how the accountability process can be used as a tool by the government in realizing their objectives. (Support your answer with the related rules and regulations) (15 Marks) Describe the concept of federalism for the Government of Malaysia. (2 Marks) Based on Schedule 9, Article 74 and 77 of the Federal Constitution list; (a) Three (3) responsibilities each of the federal government and the state government (6) Two (2) joint responsibilities of these two governments. (8 Marks)BKAL 3023 PUBLIC SECTOR ACCOUNTING QUESTION 2 (25 MARKS: 45 MINUTES) A (@) Identify two (2) important laws that are related to accounts, finance and audit enacted by the Parliament. (6) Explain the general and specific purpose of these two acts. (9 Marks) B. __ Data below are related to the Ministry of Health for year 2010 Budget Estimates Programme/activity | General object | Type of | Status’ ‘of | Amount code Expenditure | programme/ | (RM'000) activity “General 10000 Emoluments | Existing 45,141,900 administration 20000 Services Existing 24,844,800 | General health | 10000 Emoluments | Continuation | 28,697,500 services 50000 Others extension 280,000 Health education | 30000 Assets New 17,512,800 Others 10000 Emoluments | New 87,500 20000 Services Existing 55,400 Other information: 1. Efficiency dividend for the year 2009 and 2010 are 2.0%. 2. The ministry practiced Modified Budgeting System technique in determining the budget estimate. 3. The previous year budget will lapse at the end of the year. Total expenditure approved and spend for the year 2009 are RM103,498,700 including RM45,000 on new policy, while the total emolument for the year are RMS3,600,400. 4, Emolument are increased by 1.5% for a year.BKAL 3023 PUBLIC SECTOR ACCOUNTING REQUIRED: 2. Calculate the expenditure target for the year 2010 and 2011. (Show all calculations). (12 Marks) b. Describe the nature of one-off expenditure. (4 Marks) QUESTION 3 (25 MARKS: 45 MINUTES) A. Below is the summarized accounting information for Becca State Government as at 31 December 2010. Peity cash —_| ‘ash in transit Revenue from land Entertainment tax i 2,567,577.63 Cash at bank 271 264.43 Permit TA 678.56 Revenue from forestry 3,955,622,84 Revenue from rental 731,981,00 Drainage tax I 770,642.40 | Domestic deposit | 3,000,000.00 ‘MBI shares. a 72,237.94 Tnterest and return on investments _ | 37200,503.69 Returns from sales of goods | ¥4,131,575.83 Refunds of expenditure I 321,213.87 | Receipts from Government Ag 31,906,945.61 Services and services fees 2,644,226.73 Fine and forfeitures 103,801.00 Development fund 49,732,250.55 ‘Water supply fund (80,130,123.24) Government trast fund _ 45,875,615.05 Public trust fund 7,546,063.13 Deposit 35,030,298.87 [Loan fund |__25,030,727.99BKAL 3023 PUBLIC SECTOR ACCOUNTING Additional information: 1, The balance for Statement of Revenue and Expenditure for the year ended 31 December 2009 is (112,980,607.85). 2, The operating expenditures are as follows: Salary and wages RM 19,433,308.66 Permanent allowances 1,181,520.48 Raw material supplies 6,542,612.68 Communication and utili 4,242,604.04 Overtime 1,610,720.52 Transport of goods 5,931,892.16 Travel and transport | 5,521,124.49 Land and land maintenance 2,567,697.46 Vehicle and machinery - 1,579,000.00 Grants and fixed charges 32,815,507.36 Other expenditures 203,272.00 REQUIRED A. (a) Prepare the Statement of Revenue and Expenditure for the year ended 31 B. December 2010. (12 Marks) (b) Prepare the Balance Sheet as at 31 December 2010. (7 Marks) Briefly explain the phases in the auditing process of the public sector financial statement. (6 Marks) QUESTION 4 (25 MARKS: 45 MINUTES) A Briefly discuss five (5) reasons why public sector organizations need to measure their performance. (15 Marks) Briefly discuss four (4) weaknesses as indicated by MAMPU (MALAYSIA ADMINISTRATIVE MODERNISATION AND MANAGEMENT PLANNING UNIT) study in 1989 when solving the problems and issues of accountability in public sectors. (10 Marks) END OF QUESTIONS 4