Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 4: Financial Accounting Framework - Coggle Diagram
Chapter 4: Financial Accounting Framework
Approval For Collections and Borrowings
Type of Grant
State Road Grant
to maintain state roads
State Reserve Fund
assist state that has deficits in their current account and for development purposes
Revenue Growth Grant
whenever there is an increase >10% in the revenue of the Federation
Capitation Grant
assist states' operating expenditure
Computation based on Population
Consolidated Funds
Section 7
Consolidated Revenue Fund
Consolidated Loan Account
Consolidated Trust Account
Regulations of Financial System and Procedures in Malaysia
The Federal Constitution
Collections and borrowings must be accompanied by Parliament's approval
Public Resources must be managed through Consolidated Funds
Budget are to be prepared and presented for approval anually
Accounts are to be prepared and audited
There are special provisions for Sabah and Sarawak
Financial Procedures Act 1957
Treasury Circulars and Treasury Instructions
Audit Act 1957
Others
Local Government Act 1976
Statutory Bodies Act
Procedures Related to Public Moneys
Write- Offs
Maintains that the Minister or Chief Minister has power to authorize a write off of any losses or deficiencies
This power extends to irrecoverable amounts of revenues, debts and overpayment
Virements
A transfer of allocation between subheads within the same head
Withdrawal
Any money to be withdrawn from the consolidated
funds must be by way of warrant
A warrant is a letter of authorization either from the Minister for the Federal or Chief Minister for the states
Estimates should be prepared as to show clearly the purpose of such expenditure