1. PURPOSE

These guidelines aim to give an explanation about allocation control and payment process by the Ministry / Department for projects under the financing of Private Finance Initiative (PFI).

2. ALLOCATION CONTROL

(Spending Authority Letter / Small Allocation Warrant)

2.1 The Ministry of Finance (Budget Management Division) will issue the Spending Authority Letter which elaborates ceilings as well as details of PFI projects and the FAITH code to the Controller Officer.

2.2 Based on the said Spending Authority Letter, the Controller Officer is required to issue the small allocation warrant to the Responsibility Centre (RC) or Implementing agency given the responsibility to implement and pay for the said project.

2.3 Information and details required to be filled in the warrant are the same as for normal development projects except for items (a) and (e):


  • Purpose (must use the letter ‘S’ in replace of the letter ‘P’)
  • Department
  • RC / CC
  • Project / FAITH
  • Object; and
  • Amount
2.4 Co-operation is requested to ensure that project details (5 characters), FAITH (3 characters) and CP (S) are filled correctly and duly completed

3. PAYMENT


3.1 At the preparation level of voucher payment, the RC will enter details like the ones prepared in the small allocation warrant as follows:

Vot Jab PTJ/PK Prog/Akt Amanah Project Faith CP Object Amount
SXX XXX XXXXXX - - XXXXX XXX S XXXXX X,XXX.xx


amount

Example of filling up the Payment Voucher for the APD Housing Project of Pekan, Pahang under the Vote of the Prime Minister’s Department.

Vot Jab PTJ/PK Prog/Akt Amanah Project Faith CP Object Amount
S06 111 010101 - - 08500 015 S 33101 X,XXX.xx


 

3.2 Payment can be made manually and also through e-SPKB and if allocations for the project still have balance by the year end, the balance will be brought forward to the following year automatically and expenditure can be charged directly to the current year.

3.3 Payment within the period of Accounts Payable (AP):

        i. According to current practices, AP payments for trust accounts are taken into account by the Accounting Office in the previous year and the Trust Account Book takes into account in the current year.

        ii. AP payments for trust accounts are being reviewed whether used for trust accounts or not.

 - If APs payments are not used for trust accounts, therefore payments within the AP period can be charged into the current year and reported in the current year.
 - If AP payments are used for trust accounts, therefore payments within the AP period can be charged to the previous year and reported in the previous year.

4. REPORT

4.1 The Accounting Office will issue report C2335 and report C350 which is the Detailed Report of Expenditures PTI Vote to the Responsibility Centre monthly. Report C233S shows elaborated details of allocations and expenditures done under Vote 5 according to the projects of each ministry / department RC whereas report C350 lists out expenditures according to the trust account code 885508 of the ministry / department RC.

4.2 As for the Controller Officer, Report A499S, A421S and A441 will be issued by the Accountant General’s Department Head Office monthly. Report A499S and A421S will list out expenditures for PFI projects of each ministry / department according to the projects whereas report A441 lists out the PFI total expenditure of the ministry / department according to the trust account code 885508.
(Report A499S and A421S are still under construction).

5. EXPENDITURE ACCOUNT ADAPTATION

5.1 To ensure that all expenditures are taken into account by the Paying Office, all RCs are required to prepare monthly adaptation between the expenditures as in Report C233S and the expenditures as recorded in the Ministry / department Book and submit to the Accounting Office and Controller Officer / Ministry.

5.2 The Ministry should prepare adaptation at ministry level based on the adaptation from RCs under its control with Report A441 or A449S and submit to the Central Operation and Agency Services Division (BPOPA), Accountant General’s Department of Malaysia.

6. CLOSING

All ministries / departments are required to comply with the regulations as in paragraphs 2 until 5 to ensure that the PFI project expenditures are accounted for accurately and perfectly.


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