SAGA Compliance

What is SAGA

SAGA refers to Standard Accounting System for Government Agencies. SAGA is either a customized accounting and financial application system or Commercial Off-The-Shelf (COTS) as well as a support system related to financial data that integrates with it. The application system needs to comply with the accounting and financial systems design approved by Accountants General’s Department of Malaysia (AGD) and SAGA Compliance Criteria.

Objectives

To ensure financial statements can be produced timely, accurate, up-to-date, integrity, comply with the relevant accounting standards, to enhance the accounting and financial management of Government Agencies; and

To ensure the security of the system, data and information are secured in terms of confidentiality, integrity, availability, complete and accessible at any time.

Accrual Accounting for Government

What is Accrual Accounting

Accrual accounting was fully Implemented in Malaysia since 2015 with aim to prove financial management procedures in the public sector. However, accrual accounting always deals with challenges that may influence the migration process and bring a huge impact on many parties. Under accrual accounting, governments recognize all assets and liabilities including financial assets (such as equities), non-financial assets (such as land and buildings), and liabilities other than debt securities and bonds (such as payment arrears and pension obligations).