1

Lau Kar Woh

PBS1312188

Izzaty binti Johari

GM04408

Ammselaxmy a/p Manickadass

PBS1311158

Tan Chwee Guan

PBS1311217

 Management information systems (MIS) helping people

perform all tasks related to information processing and

management.

3 key resources:
1.
2.
3.

McGraw-Hill/Irwin

People
Information
Technology

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

 Federal Government of Malaysia

1 January 2015 Modified cash accounting Accrual accounting

Kotters Eight-Step Model

Mendelow-Scholess Power-Interest Matrix

Keys to success
Communication
Involvement

Federal Government of Malaysia

Accounting Basis

Modified
cash
accounting

1 Jan 2015
Accrual
accounting

Lewin

Kotter (1995)

8. Make It Stick
Refreeze

Implementing and sustaining the

change

7. Dont Let Up
6. Create Short-Term Wins

Move

Engaging and enabling the

whole organisation

5. Enable Action
4. Communicate for Buy-In
3. Get the Vision Right

Unfreeze

Creating a climate for change

2. Build Guiding Teams
1. Increase Urgency

 Eight Strategic Reform Initiatives (SRIs)

SRI 4 Strengthening the public sector
Policy Purpose: Strengthen public finance management

Policy Measures:
Adopting accrual accounting for prudent fiscal management
Implement efficient broad-based tax for revenue and fiscal stability

(eg GST)
Strengthen expenditure control (eg eBidding)
Improve fiscal policy institutions and processes

Source:
, New Economic Model for Malaysia: Part 1 - Strategic Policy Directions, National Economic

Advisory Council, 30 March 2010, Putrajaya.

, New Economic Model for Malaysia: Concluding Part - Strategic Policy Measures, National
Economic Advisory Council, 3 December 2010, Putrajaya.

 4 enablers in adopting accrual accounting,

facilitate by Accrual Accounting Implementation

Task Force:

Policies
and
standards

Laws and
regulations

Technology
and
process

People

Main Responsibilities
Accrual Accounting Implementation Task Force
Strategise plan
on accrual
accounting
implementation

Develop
accounting
policy and
standards
(MPSASs)
based on
IPSASs

Review and
propose
amendments to
the Federal
Constitution
and relevant
laws, if
necessary

Design and
develop an
integrated
accounting
system

Manage change

 Treasury Circular No. 4 Year 2013 Federal Governmental Accrual

Accounting Implementation acts a framework in guiding ministries

on implementation.
Each ministry shall establish a Ministerial Accrual Accounting

Implementation Committee efficient and sustainable

implementation.

Chaired by Controlling Officer to oversee the development of

the accrual accounting implementation at the ministerial level.

10

Note: Additional members are subjected to the requirement of respective ministries.

11

Motto

12

Mendelow-Scholes Power-Interest Matrix

Level of 2power

High C. Keep satisfied Intervention

A. Minimal effort Direction

D. Key players Participation/

collaboration

B. Keep informed Education/

communication

Low
Low
Level of 1interest

1Interest

2Power

High

means stakeholders have some levels of interest in organisational activities.

refers to stakeholders have some degrees of power to influence organisational strategies.

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Mendelow-Scholes Power-Interest Matrix

Level of 2power

High C. Keep satisfied Intervention

IFAC, IMF, UNDP, Auditor-General engagement
A. Minimal effort Direction
Public (people) website, reports
Private (accountants) MIA
Conferences
Low

D. Key players Part/ coGov head of department circular,

interview, keynote, town hall,
collaboration
B. Keep informed Edu/ com
Gov accounting officers
questionnaire, courses,
conferences, workshops,
communication tools

Low
Level of 1interest

1Interest

2Power

High

means stakeholders have some levels of interest in organisational activities.

refers to stakeholders have some degrees of power to influence organisational strategies.

14

 Assemblies
Dialogues

Badges
Buntings
Posters
Newsletter
Mass media
Helpdesk
Website
http://www2.anm.gov.my
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Endorse MPSASs

Establish policies base

on MPSASs

Manage change
Develop human capital
Involve finance and
accounting officers in
implementation

Review and
propose
amendment to
Federal
Constitution,
Financial Procedure
Act 1957 (Revised
1972) [Act 61] and
other acts

Perform gap
analysis
Design and develop
accrual accounting system

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 The team has to gather and design a timeline for the

implementation of the new system team to keep track and monitor

the activity and time.
The timeline was made up for 6 years by quarters. Each year was

divided by quarters and activities were segregated by quarters.

17

18

 Ensure guilding teams are persisting, monitoring and

measuring progress, and not declaring victory prematurely
Get involved and communicate progress
Ensure the change is reaching all levels
Feedback on effectiveness
Keep momentum on!

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AccountingGeneral

Held meetings with ministerial

accountants about challenges,
trainings, and human capital in
implementing accrual accounting.

Accounting
offices/
Ministerial
Accountants

Organised a series of dialogues

with users (high interest low
power).

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1
2

recognise, reward, and

model new behaviour!

make the change!

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Government

Accrual accounting as one of ministerial key performance indicators

(KPIs).
Government is serious and committed, use reward power to influence
and refreeze intended behaviour.

Motto

Go Live 2015
Innovation and Integrity Realise Accrual Accounting

Training

Accountant-Generals Department adopts user-train-users approach.

Other communication
tools

Assemblies, dialogues, badges, buntings, posters, newsletter, mass

media, helpdesk and website.

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Datuk Wan Selamah

Wan Sulaiman

1st January 2015 will not a full stop

of accrual accounting
implementation, but a starting point
of paradigm change which involves
change in thinking, working culture,
advancement in skills and
competence. It also means the start
of the new way of doing business in
the government. The challenge
for us is really what we do on day-2!

Town Hall Session, 24

Februari 2014
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 Keys to success
Communication
Involvement

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Acknowledgment
1.Accountant-Generals Department
2.Malaysian Maritime Enforcement Agency

Note
The views expressed in this paper are the writers own, and not
Accountant-Generals Departments official representations.

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