Accountability

1. Accountability

2. Lecture Outline • Definitions • Types of Accountability • Accountability & Public Fund • Components of Accountability • Problems to Achieve Accountability

3. Definitions of Accountability • Webster’s New World Dictionary: • accountable as responsible, liable & explainable. • Chamber’s 20th Century Dictionary : • Accountability as: • the liability to give account for something to somebody; or • the responsibility to give a formal statement of money dealing.

4. Definitions of Accountability • Felix Abisheganaden (1988) defines accountability as follows: • It is a pledge to our boss to perform well the task he has given us. It is a commitment we make to our organisation that through good work we will enhance its reputation. • It is also a commitment we make to ourselves to do our jobs competently, efficiently & completely. • Accountability is something intangible & abstract that comes from within the employee so that he or she would give his or her best on the job & working place.

5. Definitions of Accountability • Alwyn Lim (1986) defines accountability as: • the acceptance of responsibility for action & decision • Normanton (1966) defines • accountability as to give formal statement of money dealings. To be accountable means to give reasons & explanations of what one does.

6. Evidence of Accountability • Government sector • compliance with rules & regulations • Private sector • maximum profit

7. Instances of lacking in accountability • Not doing one’s duties, • Abuse of power • Malpractices and Corruption, Breach of Trust • Corruptions

8. Types of Accountability • Financial Accountability • the term accountability in the context of government operation is known as public accountability or financial accountability which is comprising all aspects of compliance & management on the part of government bureaucrats in administering government operations. • Compliance means that the government servants have to follow the laws, rules & regulations when collecting revenues, spending the funds & accounting the inflows & outflows.

9. Types of Accountability • Program Accountability • to determine whether the objectives stipulated for the government organisation, programs and activities are being achieved.

10. Types of Accountability • Management Accountability • to determine whether there is effective, efficient & economical utilisation of public fund by the organisation in achieving government objectives.

11. Components of Accountability ACCOUNTABILITY Accounting Budgeting Auditing (Source: Rauf, et al, 2003)

12. Components of Accountability • Budgeting: • Provides the precise standards by which to judge the annual accounts. • Accounting: • The process of ensuring all receipts & payments of public moneys follow the required regulations & are accounted properly. • Budgeting & Accounting is to create or establish the evidence of accountability.

13. Components of Accountability • Auditing includes financial & performance audits. • auditing is to prove the existence of the evidence of accountability. • it provides independent judgement of the government’s financial statements.

14. Accountability & Public Fund • In discharging the accountability over the public fund, the government is assisted by the following agencies/dept: • Parliament • Treasury • Agencies e.g.. the Ministries & Departments. • Auditor General, • Public Accounts Committee.

15. Parliament • Role: • Approving budget proposals: • no expenditure can be incurred without parliamentary approval. • no tax can be levied without the necessary legal process. • Parliament is the place where accountability in government begins.

16. Treasury • Roles: • Keeper of the public purse, • examine expenditure proposals before presenting to parliament, • has the right to limit & suspend budget.

17. Agencies i.e. Ministries, Dept. & Statutory Bodies • Role: • Controlling Officers of agencies are required to manage funds under their control in accordance with government policies, procedures & circulars.

18. Auditor General • Roles: • plays the role as the external auditor to government and responsible to conduct: • financial audit (compliance) • performance audit (output & goals) • to prepare audit reports for submission to parliament.

19. Public Account Committee (PAC) • PAC is a parliamentary committee with members from both the ruling & the opposition parties. • Chairman of PAC is from the ruling party, • PAC is also established at state level. • Members not less than 6 but not more than 14.

20. Public Account Committee (PAC) • Roles: • examine the public accounts & the auditor general’s reports, • ensure proper accountability of public funds by public officials. • ensure propriety of government spending, • maintain high standard of public morality.

21. Questions to ponder? • Why is public sector accountable to the public? • How to achieve public accountability? • Why there is an increase concern on Public Sector accountability? • Accountability from the perspective of Islam?

22. How to achieve public accountability? • The creation of an effective control in the management of public moneys • The establishment of effective system for public officials to execute responsibilities entrusted to them • The utilization of public moneys in accordance to authorized purposes and relevant activities without any wastage

23. Why accountability cannot be fully achieved in public sectors? • Attitude of government managers - financial matters should be left to the finance staff. • No real directives or guidelines on new system introduced. eg. the change from cash basis to commercial basis of local authorities.

24. Why accountability cannot be fully achieved in public sectors? • Inadequate accounting staff especially the professionals in government agencies. • Failure of internal control system - staff are not properly trained. • No serious effort to bring about improvements. • Resistance to change

25. Recommendations to Improve Accountability in Public Sector • Disciplinary actions to staffs who failed to perform tasks • Offer better fringe benefits and promotions to staffs • Set up audit committee • Cooperation from other parties • Continuous revision of policies and circulars • Effective recording system