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ADA404 - Assignment

The document discusses the significance of public financial administration based on an interview. It notes that public financial administration involves a government body that plans, manages, and implements government policies. This body importantly manages government revenue and expenditures. For the Ministry of Health, the Finance Division regulates all acquisitions and spending. The division controls budgets, revenue, and ensures compliance with financial regulations. There are five main significances of public financial administration discussed, including ensuring proper revenue collection and spending, appropriate purchasing and procurement, efficient use of resources, prevention of waste, and avoidance of deception or breach of trust.

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22 views3 pages

ADA404 - Assignment

The document discusses the significance of public financial administration based on an interview. It notes that public financial administration involves a government body that plans, manages, and implements government policies. This body importantly manages government revenue and expenditures. For the Ministry of Health, the Finance Division regulates all acquisitions and spending. The division controls budgets, revenue, and ensures compliance with financial regulations. There are five main significances of public financial administration discussed, including ensuring proper revenue collection and spending, appropriate purchasing and procurement, efficient use of resources, prevention of waste, and avoidance of deception or breach of trust.

Uploaded by

dal shavo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

2.0 The significance of the Public Financial Administration based on the interview.

Referring to public financial administration, it is a process that involves a body that formed by
the Government in carrying out the work of planning, manage and implementing the policies set
by the Government. This body is a one of the most important in a government, where it acts to
manage the revenue and expenses incurred by the government. For the Ministry of Health, every
acquisition and expenditure is regulated by the Finance Division, Ministry of Health located in
Putrajaya. This division functions to control the budget and revenue as well as policy setting and
compliance with financial regulations.

Jaze Gaston: Financial administration is that part of government organization which deals with
the collection, preservation, and distribution of public funds, with the coordination of public
revenue and expenditure, with the management of credit operations on behalf of the State and
with the general control of the financial affairs of public household

There are several significances of the Public Financial Administration: -


a. To ensure the proper revenue system and expenses are carried out correctly
b. To ensure the purchasing/procurement is done appropriately, correctly and legally
c. To ensure the use resources is assessed in terms of their efficiency, effectiveness,
productivity and quality
d. To ensure no wastage of the public fund
e. To ensure the deception (trick/mislead) and breach of trust from the responsibilities given
2.1 To ensure the proper revenue system and expenses are carried out correctly
A revenue and expenditure is a one of the important elements that need to be managed by the
public financial administration. A revenue can be explained as a profit or income earned by the
government either through investment or taxes. While, expenditure is a process where the
government channels the funds and allocations of the budget for something that needed.

At the MoH, income is obtained from the service fees provided. It includes admission fee,
hospitality fee, medical fee and etc. All of these revenue processes are recorded and managed by
the financial department at the Ministry of Health (MOH).

For expenses, the Ministry of Health (MOH) needs to follow the guidelines set by the
Government through the Ministry of Finance. Every expenditure must comply with the
guidelines and processes that have been set.

2,2 To ensure the purchasing/procurement is done appropriately, correctly and legally


Purchasing and procurement is one of the important processes in an organization, especially in
the Government sector. The Malaysian Government through the Ministry of Finance has issued
the guidelines and regulations in the purchase and procurement process. The purpose of these
guidelines and regulations is to ensure that each process runs correctly.

There are several purchasing and procurement methods used by the Malaysian government and it
also apply in the ministry of health (MOH).

Among the methods used are as follows: -


a. Direct purchase
b. Direct appoint
c. Quotation
d. Tender

At the Ministry of Health (KKM), all purchasing and procurement processes are managed by the
Finance Division whether at the ministry, hospital or clinic level.

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