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GOVERNMENT MACHINERY
 LEARNING OUTCOMES
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CLO1: Identify main components of the public sector

and the relevant management concepts
 CHAPTER
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OUTLINE
 Government Administrative Machinery
 Institution and Agencies
 Administrative Personnel
 Administrative Systems and Procedures
 Government Accounting Machinery
 Institution and Agencies
 Accounting Personnel
 Accounting Systems and Procedures
 What is the government
4 MACHINERY?

 The interrelated structures and processes

that pertain to the governance and
accountability structure,
administrative as well as financial
management aspects.
 Categories of Government Machinery
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 Government Administrative Machinery
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 includes all the mechanisms to implement government

policies.
 made up of three main levels: federal, state and local
government.
 each level will involve two categories of officers
responsible for administration: 1 from political post and
1 conventional public service post.
 the two officers take directions from the executive to:
 implement policies;
 bring about development;
 provide services & facilities
 Government Administrative Machinery
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Required by the Constitution

COMMISSIO
N COUNCILS
1. Permanent • National DEPARTMENT
GOVERNMENT • Audit general
Commission Finance Council
ADMINISTRATIVE • Election Department
INSTITUTIONS & •National Land
Commission Council
AGENCIES •Public Services •National Council
Commission for Local
Government
2. Temporary •Armed Forces
Commission Council
• Salaries
Commission
 Government Administrative Machinery
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Discretion of the Executives

MINISTRIES SELF-
• Highest body in ACCOUNTING
GOVERNMENT NON-SELF-
federal level MINISTRIES/ ACCOUNTING
ADMINISTRATIV DEPARTMENTS MINISTRIES/
• Carry out
E INSTITUTIONS • maintain own DEPARTMENTS
responsibilities
& AGENCIES entrusted to t\he govt. set of accounting •Don’t maintain
• Minister- records. accounts
direct/plan/coordinate/ • pay their own • Depends on
enforce/implement bills AG office
govt. policy • Eg: Ministry of
Secretary General- Defence
senior administrative
officer
 Government Administrative Machinery
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Discretion of the Executives

PUBLIC
GOVERNMENT COMMITTEES
ENTERPRISES COUNCILS • eg: National
ADMINISTRATIV • Statutory bodies • National Action development
E INSTITUTIONS • Non-statutory bodies Council Planning
& AGENCIES •National
DEPARTMENT Economic Council
• carry out ministries’ •National
functions
Security Council
• headed by the Director
General
 Government Administrative Machinery
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 Government
Administrative Machinery
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Government administrative personnel

 include those who work in public service fields

(armed forces, judicial & legal services, general &
public services, police force).

 qualifications would be regulated by federal law or

yang di-Pertuan Agong & Yang Di-Pertuan Negeri.
 Government Administrative Machinery
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Government administrative systems and procedures

 include the non-financial systems & procedures in
the govt. service circulars.
 Matters on appointment, promotion, leave &
disciplinary procedure of govt. personnel.
 Government Accounting Machinery
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 relates to the governance structure for financial

management of the country’s public sector.
 comprise of Ministry of Finance, Treasury, Accountant
General Department,.
 GOVERNMENT ACCOUNTING
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MACHINERY

GAM

Agency Personnel System & Procedure

MOF Accountant General Fed. Constitution

FPA 1957
Treasury Controlling Officer Govt Acctg Std
Accountant Accounting Officer Audit Act 1957
General dept Treasury Instructions
Treasury Circular
SAD AG Circular
RC State Govt Circular
 GOVERNMENT ACCOUNTING
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AGENCIES
 All government accounting agency report to MOF
 Sec 6 of FPA1957
 It is include:
 Ministry of Finance

 Treasury

 Accountant General Department

 Self-accounting Department (SAD)

 individual responsibility centres

 Government Accounting Agencies
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- Ministry of Finance
 Highest body in Federal Government to administer
& govern public moneys & public stores.
 Administer and govern the public money and
public stores
 The duty and responsibilities vested in Federal
Treasury
 Government Accounting Agencies
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- TREASURY
 A Central agency of government
 Operates under MOF, accountable to MOF ( Sec 6
FPA1957)
 Vision of Treasury – to be premier agency
responsible for national financial and economic
management and to be an exemplary world class
agency both domestically and internationally
 Government Accounting Agencies
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- Treasury
Objectives
Ensure sustained and continuous economic growth

Strengthen national competitiveness and economic resilience

Ensure effective and prudent financial management

Purse a more equitable sharing of national wealth

Improve quality of life and well-being of society

Role & responsibility – to inform, to plan & to implement fiscal

& budgetary policies
 Government Accounting Agencies
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- TREASURY
Function
To formulate and implement fiscal and monetary policies

To formulate financial management and accounting processes,

procedures and standards
To manage the acquisition and disbursement of Federal
Government Loan
To monitor Minister of Finance Incorporated Companies

To monitor the financial management of Ministries,

Government Departments and Statutory Bodies
To formulate and administer policies related to the Government
Procurement
To formulate policies and administer Government Housing
Loans
 Government Accounting Agencies
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- Accountant General Department
 Known as JANM formed before independence.
 Responsibility- to maintain & prepare the account for
Federal Government
 Vision – an organization of global repute in public
sector accounting and financial services
 Government Accounting Agencies
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- Accountant General Department-
Mission
To design, develop and implement excellent government
accounting system
To provide advisory services and approve accounting and
financial system in line with best practice
To advise the decision makers in relation to accounting and
finance
To enhance competency and career development of the HR for
the accounting services
To enforced the Unclaimed Monies Act 1965
 Government Accounting Agencies
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- Accountant General Department-
Objectives
To enhance accountability and transparency in Federal
government’s accounting and financial management
To enhance accounting and financial management system
for all government agencies
To assist government in making effective decisions

To develop and implement HR management system for the

accounting services
 To enhance the enforcement of the Unclaimed Monies Act
1965
 Government Accounting Personnel
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 Officers who deal with public moneys & accounting

systems & procedures
 Responsible & legally bound to government’s
statutory requirement.
 i.e. Accountant General, Controlling Officer &
Accounting Officer
 Government Accounting
Personnel-Accountant General
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(AG)
Chief Accountant and Head of JANM
 Authority in approving accounting matters and procedures in respect of
Federal and State accounts
 Definition of AG (TI3)
‘ The principal accountant in the government of the Federation and the
head of the Accounts Division of the Federal Treasury with the authority
in matters of accounting procedure over the accounts of the Governments
of the Federation and of the States’
 AG has the authority on the accounting procedures of inflows & outflows
of public money & public stores
 Government Accounting
Personnel-Accountant General
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(AG)
Duties T138
a)1-To see a proper system of accounts is established & 2-
appropriate precautions instituted against losses by fraud or
negligence
b)i. to exercise supervision over the receipt of the federal revenue
and to take step to secure its functional collection
ii. To accept only properly authorised expenditures as charges
in his accounts
iii. To report to the SG of the Treasury any material
irregularity connected with the public accounts that may have
been brought to his notice.
 Government Accounting
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Personnel-Controlling Officer
 Sec 15A of FPA 1957 – roles & responsibility of CO
 Chief of the accounting officer, appointed by MOF
or CM or MB in respect of each purpose of
expenditure provided for any financial year.
 Responsible for an effective management of public
money allocated to the agency under his control
 Government Accounting Personnel-
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Controlling Officer
Duties (Sec15A of FPA 1957)
To control the authorised estimates for the particular purpose

To be in charged for the public moneys collected, received, held or

disbursed and all public stores received, held and disposed
To secure proper exercise of performance of their duties

To report to the appropriate Svs Comm and fin. Authority for every event of
possible surcharge arises or occurs under their control
To be responsible to explain for the correctness of the statement of public
money under which he is controlling
Examine, consolidate and ensure budget of all agencies or dept under his ctrl
 Government Accounting
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Personnel-Accounting Officer
 Sec 3 FPA 1957
 Duties of Accounting Officer – Sec 4 FPA 1957,
keep accounting books & prepare such accounts as
prescribed by the act or as instructed by treasury
 Sec 5 FPA 1957 – need to obtain authorisation from
Federal Treasury or State Financial Authority before
they can open official account with any bank
 Surcharge
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 Fine imposed to any person who is or was in the

employment of Federal Government or State
Government
 Fail to carry out:
 Fail to collect money
 Improper payment, not duly vouched
 Deficiencies of public moneys
 Fail to keep proper accounts
 Fail to make any payment
 Surcharge
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 Procedure:
 Notify by HOD
 Withdrawn if Service Commission satisfy with
explanation
 Amount surcharged recover from salary or pension by
equal installment
 Government Accounting Systems
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& Procedures
 Federal Constitution
 FPA 1957
 Government Accounting Standard
 Audit Act 1957
 Treasury Instructions
 Treasury Circular
 Accountant General Circulars
 State Government Circulars
 Government Accounting Systems
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& Procedures
Why needed?
 Diverse government objectives

 Large annual expenditure at all level

 To ensure accountability of public money

 To take care of public interest

 To ensure the objectives of public sector are achieved