Vote Book

Chapter 9: Financial Accounting

Systems
(page 195-224)
 Learning Objectives

01 02 03
Describe and Record Explain the
explain the vote transaction in the process of
book vote book accounting for
petty cash
Vote Book
A financial record that must be
kept by the government agencies,
and it is useful for recording
allocation of fund received,
expenditure, liabilities and changes
in budget
Responsibilty to maintain expenditure vote and
vote book shall be under Controlling Officer (TI 94):
Where a Controlling Officer or allocation warrant-holder finds it is necessary to place a
portion of an expenditure vote under his control at the disposal of another officer he may
either:

● i) issue an allocation warrant or sub-allocation warrant to the office

concerned; and
● ii) authorise the officer concerned by letter to incur expenditure against the
vote up to a stated limit and to submit vouchers to him for payment.

Reason to maintain vote book:

to control and ensure that expenditure and liabilities do not exceed the approved
allocation and to produce reports on how allocation was utilised
 Vote Book Format

Part I : upper page of the left hand side

• Used for recording vote information such as vote number, programme/activity code
and object code, as well as the total allocation for the year

Part II : upper page of the right hand corner

• records information on increase or decrease in allocation for the year such as
allocation received for expenditure or cancellation of allocation.

Part III : remainder of the page records detailed transaction

• such as the allocation received by warrant, reduction or utilisation of allocation,
virement, to incur liability, to cancel liability, expenses, reconciliation, closing entries
and balancing accounts.
Procedure for Recording the Vote Book
Resource of allocation are categorized as:
● Operating expenditure
Vote B(Bekalan/Supply) and Vote T(Tanggungan/Charged)

● Development expenditure
Vote P (Pembangunan/Development)
 12 types of
transactions
to be recorded
in vote book
1. Allocation warrant received
2. Additional allocation received
3. Reduced allocation
4. Sub-allocation warrant
5. Transfer allocation (virement in and out)
6. Incur liability
7. Cancellation of liability
8. Record expenditure
9. Credit expenditure
10. Adjustment entry
11. Closing entry
12. Liability brought forward
 1. Allocation warrant received
● Part I: vote book is filled up
● Part II: vote book is filled up for the date, amount and amount to date column
● Part III: details of the allocation recorded as “increased allocation” in the credit column

Column effect:
1 Date of warrant, 2 Details of transaction, 5 Reference number, 7 Credit amount, 11 Increase balance to date amount
 2. Received Additional Allocation
● Part I: additional allocation needs to be filled up
● Details in Part II and III increased

Column Effect
1 Date of Warrant, 2 Details of transaction, 5 Reference number, 7 Credit amount, 11 Increase balance to date amount
 3. Reduced Allocation
● Part II: recorded as reduced allocation in Part II
● Part III: shown in debit column

Column Effect
1 Date of Warrant, 2 Details of transaction, 5 Reference number, 6 Debit amount, 9 Copy back the amount of
“Outstanding Liability”, 10 Copy back to the amount of “Net expenditure” , 11 Decrease balance to date amount
 4. Sub-allocation Warrant
● Part II: record in column ‘Date’, ‘Amount’ as a negative value and ‘Total to date’ is reduced
● Part III:
1 Date of Warrant, 2 Details of transaction, 5 Reference number, 6 Debit amount, 9 Copy back the amount of
“Outstanding Liability”, 10 Copy back to the amount of “Net expenditure” , 11 Decrease balance to date amount
 5. Transfer Allocation
Two types of virements:
1. Virement In
● Part II: record in column ‘Date’, ‘Amount’ as a positive value and ‘Total to date’ is increased
● Part III:
1 Date of Warrant, 2 Details of transaction, 5 Reference number, 7 Credit virement amount, 9 Copy back the amount of
“Outstanding Liability”, 10 Copy back to the amount of “Net expenditure” , 11 Increase balance to date amount
 5. Transfer Allocation
2. Virement Out
● Part II: record in column ‘Date’, ‘Amount’ as a negative value and ‘Total to date’ is decreased
● Part III:
1 Date of Warrant, 2 Details of transaction, 5 Reference number, 6 Debit virement amount, 9 Copy back the amount of
“Outstanding Liability”, 10 Copy back to the amount of “Net expenditure” , 11 Decrease balance to date amount
 6) Incurred Liability
Commitment for expenditure of goods and services that is done through:

● Travelling warrant
● Local order
● Work indent Recorded at the time of issuance
● Patrol indent
● Any contract/agreement

Column Effect:

1- Date of a transaction 8- Record the amount of liability

2- Details of transaction (supplier’s name / types of supply) 9- Add to the amount of existing ‘Outstanding liabilities’
4- Expenditure SO/DO code 10- Copy back the amount of ‘Net Expenditure’ (if any)
5- Reference number 11- Decrease balance to date amount

Method to record:
• Based on the amount of the current year, if it is more than a year amount recorded is
limited only to the current year.
i) Direct liability
On 10 January 20XX, issued a local order LO 54365 to Mesin Anika for supplies of fixtures and fittings of electronic goods (expenditure code
27101) for RM21,000.

On 11 January 20XX, issued a local order LO 14366 to Syarikat Maria of office stationaries (expenditure code 27102) for RM1,200.

On 20 January 20XX, issued indent IDN 183001 to ICI Chem for the supplies of chemimacl for laborattory and workshop (expenditure code 27703)
for RM2,500.
Starting in
between current
ii) Period of liability is less than 12 month year =
Proportionate up
to December
On 20 January 20XX, signed a contract P/T 190098 amounted to RM60,000 with Syarikat Malek for supplies of hygienic equipment (expenditure
code 27111) for 1 year starting from May 20XX.
60,000 X 8/12 = RM40,000

Starting January
iii) Period of liability is 12 month = Apportioned
complete 1 year

On 6 January 20XX, signed an agreement P/T 181198 with Syarikat Compufast Services &Suppplies Sdn. Bhd. for supplies of computer
stationaries (expenditure code 27103) for a period of 2 years starting from January 20XX amounted to RM15,000.
15,000 X 12/24 = RM7,500
Page : 207
 7) Cancellation of Liability a.k.a Contra transaction
If any commitment or supplier contract (in 6) is cancelled:

● Liabilities charged
Adjusted
● Outstanding liabilities

Column Effect:
1- Date of a transaction 8- Record the amount of cancellation in bracket ‘( )’
2- Details of transaction (supplier’s name / types of supply) 9- Subtract to the amount of existing ‘Outstanding liabilities’
4- Expenditure SO/DO code 10- Copy back the amount of ‘Net Expenditure’ (if any)
5- Reference number 11- Increase balance to date amount
On 28 January 20XX, a contract P/T 190098 amounted to RM60,000 with
Syarikat Malek for supplies of hygienic equipment for 1 year starting from May
20XX is cancelled.

01 02 03

Page : 209
 8) Recording of Expenditure
Any payment voucher prepared = expenditure including payment of liability.
4 types of expenditure:
1) Direct expenditure
2) Amount liability equal to amount paid
3) Amount liability less than amount paid
4) Amount lability more than amount paid

1) Direct expenditure

Column Effect:
1- Date of a transaction 6- Record amount of voucher as debit
2- Details of transaction (supplier’s name / types of supply) 9- Add to the amount of existing ‘Outstanding liabilities’
4- Expenditure SO/DO code 10- Copy back the amount of ‘Net Expenditure’ (if any)
5- Reference number 11- Decrease balance to date amount

On 12 January 20XX, prepared a payment voucher No. BP 100102 for recoupment of

petty cash (expenditure code 27101) for Administration Department for RM80.
2) Amount liability equal to amount paid

Column Effect:

1- Date of a transaction 6- Record amount of voucher as debit

2- Details of transaction (supplier’s name / types of supply) 8- The amount will be recorded as in bracket ‘ ( ) ‘
4- Expenditure SO/DO code 9- Reduce the amount of existing ‘Outstanding liabilities’
5- Reference number 10- Add to the existing amount of ‘Net Expenditure’ (if any)
11- No effect to the balance to date amount

On 26 January 20XX, prepared a payment voucher No. BP 100402 for the month of January to Syarikat
Compufast Services & Supplies Sdn. Bhd. for the amount of RM625.
 3) Amount liability less than amount paid
Another order (local order, indent order, etc) has to be prepared to show the differences.
There are 2 steps:
1. Record it as an incur liability.
Column Effect:
1- Date of a transaction 8- Record the amount of liability
2- Details of transaction (supplier’s name / types of supply) 9- Add to the amount of existing ‘Outstanding liabilities’
4- Expenditure SO/DO code 10- Copy back the amount of ‘Net Expenditure’ (if any)
5- Reference number 11- Decrease balance to date amount

2. Record as the Payment transaction.

Column Effect:
6- Record amount of voucher as debit
1- Date of a transaction 8- The amount will be recorded in bracket ‘ ( ) ‘
2- Details of transaction (supplier’s name / types of supply) 9- Reduce the amount of existing ‘Outstanding liabilities’
4- Expenditure SO/DO code 10- Add to the existing amount of ‘Net Expenditure’ (if any)
5- Reference number 11- No effect to the balance

On 28 January 20XX, ICI Chem issued bill No. ICI 3111/02 amounting to RM2,800 for the supplies made on 20
January 20XX. Prepare a payment voucher No. BP 100502 to ICI Chem amounting RM2,800 and a new indent
No. 183002 for additional costs.
 4) Amount liability is more than amount paid

Column Effect:

6- Record amount of voucher as debit

1- Date of a transaction 8- The full liability amount will be recorded in bracket ‘ ( ) ‘
2- Details of transaction (supplier’s name / types of supply) 9- Reduce to the amount of existing ‘Outstanding liabilities’
4- Expenditure SO/DO code 10- Add the voucher amount to existing amount of ‘Net Expenditure’
5- Reference number 11- Add the difference amount to the balance to date amount

On 15 January 20XX, prepared a payment voucher No. BP 100202 to Mesin Anika amounting RM10,000 as part of
the payment. On 18 January 20XX, prepare payment voucher No. BP 100302 to Syarikat Maria for supplies of
office stationaries for RM1,000.
Page : 212
 9) Credit Expenditure
Receive refund of payment = credit expenditure (personal telephone charges, cancellation of cheques)
Two situation :

1) No requirement for payment

Column Effect:
1- Date of a transaction 7- Record the amount as credit
2- Details of transaction (supplier’s name / types of supply) 9- Copy back the amount of ‘Outstanding Liabilities’
4- Expenditure SO/DO code 10- Subtract the amount of ‘Net Expenditure’
5- Reference number 11- Add the amount to the balance to date

On 26 January 20XX, made a collection for a personal telephone charges (expenditure code
23102), reference number P.P 20045 amounting RM350.
2) Requirement for payment (will be shown as credit amount)
Column Effect:

1- Date of a transaction 7- Record the amount as credit

2- Details of transaction (supplier’s name / types of supply) 8- Record the amount as liability charged
4- Expenditure SO/DO code 9- Add the amount to the ‘Outstanding Liabilities’
5- Reference number 10- Subtract the amount of ‘Net Expenditure’
11- No effect to the balance to date amount

On 28 January 20XX, cancelled the cheque paid to Mesin Anika amounting to

RM2,000 due to error on the cheque.
Page : 214
10) Adjusting Entry
● Correction fluid or eraser = NOT ALLOWED
● But, straight line across the error and replaced with the correct transaction = ALLOWED
● Adjusting need to be done after error has been identified.
● If transaction is left out = ordinary transaction
● If it is total mistake = 2 steps

1) Reverse the 2) Record the

record to get back transaction as it
the original amount should be.

On 30 January 20XX, the cancellation of a contract with Syarikat Malek is RM40,000

but has been recorded as RM4,000. Adjusting entry is to be made.
Page : 215
11) Closing Entry
● All closing = 31 January in the subsequent financial year (in line with modified cash basis)
● Any balance from liability will be b/f and record in the new vote book in the following year.

1- Date end of the month = 31 January

2- Details of transaction as ‘Liability brought forward’
3- The amount of outstanding liability
5- Reference number of collector’s statement
8- Record the amount as liability charged in bracket ‘( )’
9- Subtract the amount of the ‘Outstanding Liabilities’
10- No effect to the amount of ‘Net Expenditure’
11- Add to the balance to date amount
 12. Liability Brought Forward
Outstanding liabilities b/f in new vote book should be
recorded as follows:
5-Add amount of
Column Effect Outstanding Liabilities
3- On 31 Jan 20xx, closing entry has to be made
7= 84 845 – 5
and carried forward liability to 1 Feb 20xx

1- Date first day

of next month

1 2 3 4 5 6 7

Extract vote book from Figure 9.19 page 221

Reconciliation
of
Vote Book
 Reconciliation
of Vote Book Detailed Report
A process to ensure the Reconciliation
accuracy and completeness Provided by Accountant Statement
of transaction recorded in the General Department shows
vote book as compared to the listing of all payment and Prepared by Controlling
detailed report receipt Officer or any officer who
is authorized for
allocation of public money
 Reasons for
reconciliation

1 2 3 4
To detect any To detect error in To control the To ensure the reports
unauthorised payment posting transaction at expenses and liability from the agencies vote
Accountant General within the authorized book regarding
Department level and allocation allocation, expenditure
to ensure the accuracy and liability are
of expenses recorded reliable, accurate and
in the vote book and complete, thus helps
detailed report in the process of
decision-making
supporting documents in
Reconciliation Statement

List of vouchers that has List of transaction in the vote

not been paid book that is not included in
the detailed report

List of the transaction in the

detailed report that is not
included in the vote book
Reconciliation of Vote Book Procedure
3 Recording contra
transaction in vote book

1 Review the detailed

report with vote book

2 Prepare a
reconciliation statement
1. Review the detailed report with vote book
Checked and marked with transactions recorded in column 6 (debit) and
Detail Report received
column 7 (credit) in vote book for specific month and previous month

Is non-obligated balance & transaction in Vote books=report?

End here. ᴥ Investigate the transaction that appears in only one set of
records (transaction not checked with a mark)
ᴥ Report any unauthorized payments
ᴥ Prepare a Reconciliation Statement (Format A)
ᴥ Recording contra transaction to the reconciliation of vote book
2. Prepare a reconciliation statement

Transaction
Not marked in

Debit/Credit
Detailed report
column
Include in,with

Reconciliation Supporting
Statement document

Non-obligated liability
Balance of budget Voucher that has In vote book
as per detailed report not been paid (as per end of the month)

Reconciliation Statement and supporting document must signed by officer responsible and
present to Accountant General within 2 weeks after detailed report received
3. Recording contra transaction in vote book
If no error of transaction/missing transaction in vote book but included
In detailed report, vote book MUST updated immediately

Contra Transaction
ᴥ Correction error in vote book corrected
immediately
ᴥ Recording transaction missing from
vote book must be recorded
immediately in vote book
Accounting for
Petty Cash
Payments
 Petty Cash

TI 111(a)
The Secretary General to the Treasury Record
or the State Financial Officer may
authorize the Accountant General or the Petty cash transaction must TI 111(c)
State Accountant/State Treasurer as be separated from the main
the case may be to establish imprest cashbook Disbursement from the
system for the petty cash. The petty cash fund to be made
Accountant General or the State in accordance to the
Accountant/State Treasurer may specified warrant
sanction any public officer to utilize the
petty cash fund for the disbursement of
expenditure incurred.
Efficiency in job division:
ᴥ Junior member staff- handling and
recording petty cash payment
ᴥ Experienced staff- complex
responsibilities Advantages
maintain
Petty Cashbook &
Account for
Reduce the
Petty Cash
administration cost
ᴥ If petty cashbook is kept, it would be
monthly total for each period needs
posting to general ledger instead of
recorded it every time the expenses
was paid
Procedure Making Payment from
Petty Cash
1 2 3

Procedure for establishing Procedures for making Procedures for replenishing

petty cash fund payment from petty cash fund petty cash fund TI 113(b)

ᴥ Clerk prepare formal ᴥ If approved & validated,

ᴥ Officers fills in
payment voucher, then petty cashier record
application form and
sent to Head of payment into computer
submitted to personnel
Department for system and pay money
in charge(Clerk)
consideration to officer

In case when amount of float money is finished before end of week, the account will
immediately be reimbursed so that petty cash fund will maintain the float amount
THANK YOU
Prepared by:
Nur Maisarah Jamali
Nur Syafira Natasha Jafri
Norfadzila Abdul Rahman