NIK NUR AZMINA BINTI AZHAR

CONSOLIDATED
FUND
- It represents a system of financial record keeping that focus on how an
organisation uses its finances.
- This system records source of funds & how these funds are being
spent, hence carries stewardship & accountability functions.
- Advantages:-
REGULATORY
i. can track funds generated from various forms of revenue & related
expenditures, which comprise of projects or appropriations
FRAMEWORK
ii. easy to identify which moneys are available for specific purposes
ii. able to isolate & assign certain assets to meet a specific purpose
iv. it separate all finnacial account to individual funds
CONSOLIDATED TRUST ACCOUNT
-Sec 7 (c) of FPA 1957 stated that Consolidated
trust account is set up under which all receipts &
payments of both government & public trust
funds & monies received by the government for
specific purposes are accounted for.
PPK No 4- Dec 2004 effective for financial year
2006
OBJECTIVES
- To determine the financial position and its changes in the
organisation
- To know the results of operations of the organisation
- To check its compliance with legal restrictions.
2016818082
CHARACTERISTICS
Independent Accounting Entity whereby revenue, loan & trust account can stand on its own.
Has its own set of account with complete with double entry & financial statements
Self –balancing (total of assets of particular fund = total its liabilities & fund balance) & autonomous (although
government unit may be composed of several different funds, there should be focus on its general government
activities & spending activities, where crucial decisions, objectives & goals can be identified.
-The establishment of Consolidated Fund is governed by FC which are the Article 97(1) & Article 97(2), while FPA 1957 are the Section
7(a)-(c), & Section 16(1).
- The Government Accounting Standard (PPKs) had been set up aiming to set accounting policies & standards as well as basis for
financial statements presentations that have been complied with the federal & state governments.
Housing Loan Funds
- Government Housing Loan Fund Scheme -Housing Deposits
Loan Fund Act 1971(Act42) Miscellaneous Government Trust - Consists of General Deposits and Adjustment Deposits
- Provides housing loan facilities to members of Federal Funds - General Deposits are the monies received by the Federal Government for a
Administration, members of Parliament, members of - Sec10 FPA 1957 (Act 61)– specific specific purpose under any laws or contractual agreements & is refundable
State Administration and members of Legislative trust purposes in line with FC when the specific purpose has been achieved.
Assembly, Judges, Government employees from Civil - Source of the fund is from - Adjustment deposits are temporary accounts used before payments are
Service, Police Force and Armed Force. appropriations from the government. made or adjustments are made to specific accounts.
- Receipts comprises of appropriation from - 5 main categories- Clearance
Public Trust Funds
Consolidated Revenue Account & Development Fund, Account, Trading Account, Loan
- Sec 9 of FPA 1957(Act61) – established this fund to account for trust
proceeds from loans raised through transfer from Loan Account, Contingency Fund and
monies entrusted to the Federal Government & Special Trust Fund
Account, housing loan repayment & interest earned. Miscellanous Funds
incorporated under relevant Act.
- Until 2012 176 accounts – including

GOVERNMENT Development Funds

- Development Fund Act 1966 (Art406) with the
key aim for the economic development of the
National Trust Fund, Poor Student
Fun, National Sport Fund
- Financial source –receipts from organization or individual, placed in trust
of the government for specific purposes.
- Example; Public Finance Initiative Trust Accounts

TRUST FUNDS nation

- Consist of loans for development, contributions
from Consolidated Revenue Account
repayment of loan given out from this fund.
- Transfer from the Consolidated Loan Accounts
represent the main source of finance to the
Market Loans
& - Loans obtained from International Financial
Institutions,negotiated at common market rates
raised for general purposes.
- Duration – 14-20 years
Project Loans
- Borrowing in term of money, services & technical
studies, which are secured for development projects.
Range from medium to long term loan.
- Examples; Penang Bridge & East West Highway

TYPES OF Development Fund

CONSOLIDATED LOAN ACCOUNT
- Comprise of Syndicated Loan, Bond Issues &
Floating Rate Notes
- Obtained from Multilateral such as World Bank, Asia
Development Bank & Integrated Development Bank;

CONSOLIDATED - Sec 7 (b) FPA 1957 stated that Consolidated Loan - Governed by External Loan Act 1963(Act 403). & Bilateral government sources such as Malaysia &
Account established by the Federal & State Japan..
government to keep all moneys received by way of Wakala Global SUKUK

ACCOUNTS loan
- It is also established in Art 111 of the FC & the detail EXTERNAL - One form of external borrowing for Malaysia government to continue
support its prudent debt management practice

THAT RELATED
- The Wakala Global Sukuk is Malaysia’s 3rd USD denominated sovereign
about this account further explained in PPK No.5
- Sources of domestic borrowing are the local bank &
financial institution, while for external borrowing,
BORROWING sukuk issuance.
- New benchmark for in Islamic capital market

TO THE PKK the source are the foreign banks, financial

institution, IMF & World Bank
Treasury Bills
- Short term loan instruments to finance redemption cost of matured bills
- All receipts & disbursements are accounted for the

INTERNAL
- Major Subscriber are the Commercial Banks & Discount Houses
purpose of repayment of outstanding loans &
- Maturity period not exceeding one year (Short term nature)- 91-365 day
transfer to other funds
- Governed by Treasury Bills Act 1946 (Revised 1977).
PCONSOLIDATED
A R I S I A N . CREVENUE
O ACCOUNT
- Sec 7 (a) FPA 1957 stated that all types of money or revenue received BORROWING SUKUK
- Arabic name for financial certificates.
Equivalent to bonds
Government Investment Issues
except for loan & trusts are the sources to Consolidated Revenue - Aims to meet the government
Account (except Islamic religious revenue). - Sukuk securities are structure to comply
papers based on Islamic principles
- The money are used to maintain operating expenditure; namely Malaysian Government Securities with the Islamic law and its investment
as well as to complement measures
charged expenditure (Art 98 FC) & supply / operating expenditure (Art - Bond issued by the government on a long term basis to finance principles, which prohibit the charging
in controlling excess liquidity in
100 FC). Federal Government expenditure especially development payment of interest.
the financial system
PPK No.3 – May 2004 effective 2005 onwards expenditure - Government Funding Act 1983 with the
- Medium-term loan instruments
- Performance of Federal Government Revenue & Expenditure - Registered stock which are made available to market by tender aim to enable the issuance of instruments
- Maturity period 1-8 years
- There are 4 types of revenue, which are the tax revenue; non-tax and managed by Central Bank of Malaysia that could serve as liquidity management
- Main subscriber are Bank Islam &
revenue; other receipts; and revenue from Federal Territories (Kuala - Maturity period range from 5 to 20 years tools for the Islamic banks through
Islamic Financial Institutions
Lumpur, Labuan, & Putrajaya). -Primary issues and redemption of MGS on maturity are issuance of Shariah-compliance
offering interest-free banking
- It is used to pay for two types of operating expenditure, which are the managed by Central Bank of Malaysia under the Registrar of Government Investment Certificates
services in fulfilling their liquidity
charged expenditure (Article 98, FC) & the supply expenditure (Articles Public Debt- - Murabahah is the certificates of
& investment requirement
100 and 101, FC) - Major subscriber – EPF, Petronas, Central Bank of Malaysia, intedebtness arising from a deffered mark
- Governed by Act 275/83.
- Any excess will be contributed to the Consolidated Trust Account. Pension Trust Fund and BSN up sale transaction of an asset