"accounting officer"  includes every public officer who is charged with the duty of collecting, receiving, or accounting for, or who in fact collects, receives or accounts for, any public moneys, or who is charged with the duty of disbursing, or who does in fact disburse, any public moneys, and every public officer who is charged with the receipt, custody or disposal of, or the accounting for, public stores or who in fact receives, holds or disposes of public stores;

[Am. Act A151; Act A354; Act A398]

  "bank"  in relation to the Consolidated Fund of a State, but not in relation to the Federal Consolidated Fund means any office or branch in Malaysia of a bank licensed under the provisions of the Banking and Financial Institutions Act 1989 (Act 372) or such other banks register

4 PART II ACCOUNTING OFFICERS-4. Duties of accounting officers.

Every accounting officer shall be subject to this Act and shall perform such duties, keep such books and render such accounts as may be prescribed by or under this Act or by instructions issued by the Treasury in matters of financial and accounting procedure not inconsistent therewith:

Provided that a State accounting officer shall in addition be subject to any instructions of the State financial authority not inconsistent with the foregoing.

5 PART II ACCOUNTING OFFICERS-5. Bank accounts.

No accounting officer shall open any public or official account in any bank without the authority in writing of the Treasury in respect of public moneys of the Federation, or of the State financial authority in respect of public moneys of a State, and no accounting officer shall overdraw and no bank shall permit an overdraft on any public or official account unless the same be authorized by the Treasury, in respect of an account of public moneys of the Federation, or under the authority of a law made in accordance with Article III of the Federal Constitution.

[Am. Act A398]

6 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-6. Management and control of Consolidated Funds.

(1) The management of the Federal Consolidated Fund and the supervision, control and direction of all matters relating to the financial affairs of the Federation not specifically assigned to any other person by any other law shall, subject to the Federal Constitution and this Act, vest in the Minister.

(2) The management of the Consolidated Fund of a State and the supervision, control and direction of all matters relating to the financial affairs of a State not specifically assigned to any other person by any other law shall, subject to the Federal Constitution, the Constitution of the State and this Act, vest in the State financial authority.

7 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-7. Consolidated Fund accounts.

There shall be maintained by the financial authority in respect of the Consolidated Fund three separate accounts -

(a) an account to be called the Consolidated Revenue Account in which account shall be kept of all moneys in the Fund other than such moneys as are mentioned in paragraphs (b) and (c) ;

(b) an account to be called the Consolidated Loan Account in which account shall be kept of all moneys received by way of loan upon the public credit of the Federation or of the State, as the case may be; and

(c) an account to be called the Consolidated Trust Account in which account shall be kept of all moneys received subject to a trust and to be applied in accordance with the terms of the trust.

8 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-8. Custody and investment of moneys.

(1) Moneys paid to the Consolidated Fund may be kept with such bank or banks as the financial authority shall from time to time direct.

[Am. Act A151]

(2) All such moneys paid into a bank shall be deemed to be public moneys, the property of the Federation or of a State, as the case may be, lent by the Federation or the State to the bank.

(3) (a) Moneys standing to the credit of the Federation with any bank, or otherwise held by the Federation, may be invested by the Minister -

(i) on deposit in any bank;

(ii) in any of the investments authorized by the Trustee Act 1949 (Act 208), for the investment of trust funds;

(iii) in any joint fund maintained by the Crown Agents for such investment; or

(iv) as otherwise authorized by federal law or by resolution of the Dewan Rakyat,

and the investments together with any

9 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-9. Trust accounts.

(1) The financial authority may establish such trust accounts as may be deemed necessary for the proper accounting of moneys in the Consolidated Trust Account.

[Am. Act A398]

(2) The following moneys shall be paid to the credit of the trust account to which they relate -

(a) all moneys appropriated for the purposes of any trust account;

(b) all moneys received from the sale to any person or department of any articles purchased or produced, or for work paid for, with moneys standing to the credit of a trust account;

(c) all moneys paid by any person for the purpose of any trust account; and

(d) repayment of any loan or advance made from moneys standing to the credit of the trust account and where applicable any interest as provided in subsection 8(4).

(3) Subject to any law and the terms of any trust, the financia

10 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-10. Government trust funds.

(1) (a) There shall be paid from the Federal Consolidated Fund into each of the funds specified in the Second Schedule such sums as may from time to time be appropriated for the purposes of the fund by federal law.

(b) There shall be paid from the Consolidated Fund of a State into the funds specified in subparagraphs (i) and (ii) such sums as may from time to time be appropriated for the purposes of those funds by State law -

(i) in the case of Sabah and Sarawak, into any fund established and placed under the State financial authority by or in accordance with State law; and

(ii) in the case of the other States, into each of the funds specified in the Third Schedule or in accordance with paragraph (4) (b) .

(2) The Minister in the case of a fund specified in the Second Schedule and the State financial authority in the case of a fund specified i

11 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-11. Contingencies Fund.

(1) In accordance with Article 103 of the Federal Constitution, a Contingencies Fund for federal purposes is hereby created consisting of moneys from time to time appropriated thereto.

(2) All moneys appropriated to the Contingencies Fund shall be paid from the Federal Consolidated Fund into the Contingencies Fund and shall be applied by the Minister in accordance with subsection (3), and all moneys not so applied shall be paid into the Federal Consolidated Fund and shall be accounted in a separate account in the Consolidated Trust Account.

(3) The Minister may, if he is satisfied that there has arisen an urgent and unforeseen need for expenditure for federal purposes for which no other provision exists and for which funds cannot be provided under subsection 15(4), make advances from the Contingencies Fund to meet that need.

12 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-12. State Reserve Fund.

All moneys appropriated to the State Reserve Fund created by Clause (6) of Article 109 of the Federal Constitution shall be paid from the Federal Consolidated Fund into the State Reserve Fund and shall be applied by the Minister in accordance with that Article and all moneys not so applied shall be paid into the Federal Consolidated Fund and shall be accounted in a separate account in the Consolidated Trust Account.

13 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-13. Payment of moneys.

(1) No moneys shall be withdrawn from the Consolidated Fund except in the manner provided by this section.

(2) The Minister or the Menteri Besar or Chief Minister, as the case may be, shall by warrant under his hand authorize the issue from the Consolidated Fund of such sums as may be required to meet the cost of any service charged upon the Consolidated Fund, and those sums shall be accounted in the Consolidated Revenue Account:

Provided that this subsection shall not apply to sums issued from the Consolidated Fund to meet the cost of any service charged upon the Consolidated Fund -

(a) authorized by law to be met from moneys accounted in the Consolidated Loan Account or the Consolidated Trust Account; and

(b) withdrawn from the Consolidated Fund in accordance with subsection (4) or (5).

(3) (a) (i) The Minister may by warrant under his hand authorize the issu

14 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-14. Guarantees.

(1) No guarantee involving a financial liability shall be binding upon the Federal Government, unless it is entered into with the written authority of the Treasury or in accordance with federal law.

(2) No guarantee involving a financial liability shall be binding upon a State unless it is entered into under a State law passed in accordance with Clause (3) of Article 111 of the Federal Constitution and such guarantee shall not be given except with the approval of the Federal Government and subject to such conditions as may be specified by it.

[Am. Act A398]

14A PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-14A. Refunds, etc., charged on Consolidated Funds.

Where any law provides for the payment of any refund, rebate or drawback in respect of any money paid into the Consolidated Fund under the authority of any law, and accounted in the Consolidated Revenue Account, the amount of the refund, rebate or drawback shall be charged on the Consolidated Fund.

15 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-15. Estimates and virement.

(1) The estimates of expenditure laid before the Legislature in accordance with the Federal Constitution or the Constitution of any State in respect of any financial year shall show such subdivisions of expenditure as may be proposed for each purpose.

(2) (a) For every purpose of expenditure involving the payment of personal emoluments the estimates shall show such number of public offices as are remunerated at monthly rates of salary as may be authorised for the purpose and the total amount of personal emoluments, excluding emoluments for public offices specified in paragraph (b) hereof, provided therefor.

(b) The Treasury or the State financial authority with the prior approval of the Treasury, may, if it considers it essential and expedient to do so for the proper performance of a service related to the same purpose as provided for in paragraph (a) hereof but paid for out of moneys acc

15A PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-15A. Controlling officers.

(1) The Minister or the Menteri Besar or Chief Minister, as the case may be, may appoint, in respect of each purpose of expenditure provided for any financial year in the estimates, a controlling officer to control, subject to any directions given by the financial authority, the expenditure authorized under that purpose and to be the chief accounting officer in respect of all public moneys collected, received or disbursed and all public stores received, held or disposed of by or on account of the department or service for which the purpose is provided.

(2) Every controlling officer shall, subject to any written law and of any instructions issued by the financial authority under section 4, prescribe the extent to which the powers and duties conferred or imposed upon him may be exercised or performed on his behalf by any accounting officer under his control, and give such directions as may be necessary to secure the proper exercise or performance

16 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-16. Yearly statement of accounts.

(1) The financial authority shall for the purposes of section 9 of the Audit Act 1957 (Act 62) , as soon as practicable after the end of every financial year prepare in respect of that year -

(a) a full and particular statement of the Consolidated Revenue Account showing under the purposes and subdivisions of the estimates laid before the Legislature in respect of that year the amounts estimated to be received and spent in that year and the amounts actually received and spent together with amounts actually received and spent under any purposes and subdivisions not included in the estimates so laid;

(b) a full and particular statement of the Consolidated Loan Account showing receipts and expenditure of loan moneys;

(c) a statement of receipts and expenditure of moneys accounted in the Consolidated Trust Account;

(d) a statement of the accounts of any fund created by

17 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-17. Write-off.

The Minister in respect of public moneys, revenue and stores of the Federation and the Menteri Besar or Chief Minister in respect of public moneys, revenue and stores of the State shall have power-

(a) to write off losses or deficiencies of public moneys and the value of lost, deficient, condemned, unserviceable or obsolete stores; and

(b) to abandon irrecoverable amounts of revenue, debts and overpayments.

18 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-18. Surcharge.

If it appears to the appropriate Service Commission, after consultation with the financial authority, that any person who is or was in the employment of the Federal Government or the Government of a State-

(a) has failed to collect any moneys owing to the Federal Government or the Government of the State for the collection of which he is or was responsible;

(b) is or was responsible for any improper payment of public moneys of the Federal Government or the Government of the State or for any payment of public moneys which is not duly vouched;

(c) is or was responsible for any deficiency in, or for the destruction of, any public moneys, stamps, securities, stores, or other property of the Federal Government or the Government of the State;

(d) being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

(e) has failed

19 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-19. Notification of surcharge.

The Chairman of the appropriate Service Commission shall cause the head of the department of the person surcharged to be notified of any surcharge made under section 18 and the head of department shall thereupon notify the person surcharged.

20 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-20. Withdrawal of surcharge.

The appropriate Service Commission may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the Chairman of the Commission shall at once cause the head of department to be notified of such withdrawal.

21 PART III CONTROL AND MANAGEMENT OF PUBLIC FINANCES-21. Recovery of surcharge.

The amount of any surcharge made under section 18 and not withdrawn under section 20 shall be a debt due to the Government concerned from the person against whom the surcharge is made and may be sued for and recovered in any court at the suit of that Government and may also be recovered by deduction-

(a) from the salary of the person surcharged if the Minister or the Menteri Besar or Chief Minister so directs; or

(b) from the pension of the person surcharged if the Minister so directs,

by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, as the case may be, of the officer.

22-35 PART IV STATE FINANCIAL AND ACCOUNTING PROCEDURE-22-35. (Consolidated with Part III).

36 PART V REGULATIONS-36. Regulations.

(1) The Yang di-Pertuan Agong may, after consulting the National Finance Council, make regulations to be called Financial Regulations not inconsistent with this Act for the purposes of this Act and without prejudice to the generality of this provision the regulations may provide for -

(a) the collection, receipt, custody, issue, expenditure, due accounting for, care and management of all public moneys and the guidance of all persons concerned therein;

(b) the more effectual record, examination, inspection and departmental check of all receipts and expenditure and the keeping of all necessary books and accounts;

(c) the forms for all books and documents whatever required under this Act;

(d) the purchase, safe custody, issue, sale or other disposal or writing off of stores and other property of the Federation and of the States, and the proper accounting for, and stocktaking