BAC 2654 Public Sector Accounting

Group Name : Andrews group

NO

NAME

STUDENT ID

PANG REH CHEE

1131121097

KOK YING MIAN

1131121227

TAN CHIN RUI

1122702661

ANDREW WONG THENG FONG

1131121585

Title : Perbadanan Tabung

Pendidikan Tinggi Nasional (PTPTN)

Background
PTPTN Education Financing Scheme
Issued by National Higher Education Fund
Corporation/ Perbadanan Tabung Pendidikan
Tinggi Nasional (PTPTN) in 1997 under
Perbadanan Tabung Pendidikan Tinggi
Nasinal Act 1997 (Act 566)

Objective
Providing education financing to students
pursuing studies in local institutions of higher
education.
Finance their course fees and cost of living
Diploma, first degree, master, doctorate and
professional courses levels
Financial Constraints

University
Universities and University Colleges Act 1971;
Universiti Teknologi MARA Act 1976;
Private Higher Educational Institutions Act 1996;
Polytechnics established and maintained by the Minister
under the Education Act 1996; and
Any other higher educational institutions established or
deemed to have been established under the Education
Act 1996 and which is determined by the Minister to be
a higher educational institutions.

Who
Citizen of Malaysia;
Does not exceed 45 years of age on the date of application;
Been offered a place at IPTA/ IPTS and Polytechnic by fulfilling entry requirements
determined by the Ministry of Education and Malaysian Qualifications Agency (MQA);
Course pursued must have registration approval from the Ministry of Education;
For IPTS students, course pursued must have the Certificate of Accreditation from the
MQA and still valid on the date of application;
For a student who has other qualifications, verification must be obtained from the
department or agency as stated above;
Remaining period of study at the time of application should not be less than one (1)
year;
Has no other sponsor(s); and
Has opened SSPN-iaccount

Takaful Group
Financing amount disbursed to recipients will be fully
covered by the companies under takaful insurance

Termination
Do not meet the minimum requirement of grade result
Withdrawal study from approved IPT
Voluntary terminate

Government Agencies Accountable for PTPTN Loan

Program

National Higher Education Fund Corporation/

Perbadanan Tabung Pendidikan Tinggi Nasional
Manage disbursement for the purpose of higher
educations
Collect loan settlement
Collect deposits, design and offer saving schemes for
the purpose of saving for higher education
Carry out any other functions given to the PTPTN under
any written legislation

VISION
To become a leading institution in education financing
management by 2015

MISSION
To manage fund for financing students in institutions of
higher education

OBJECTIVE
To ensure efficient financing for eligible students to pursue
education at institutions of higher learning in line with the
government's aspiration to guarantee no student is deprived
from tertiary education due to financial reasons

 Ministry of Higher Education/Kementerian

Pengajian Tinggi
Provides financial assistance at all levels of higher
education
Approved institutions of higher education
Malaysia Qualification Agency
Approved course that can apply PTPTN
Ensure the high quality assurance of the program
Ministry of Finance/Kementerian Kewangan
Malaysia

Budgeting
Preparation of Estimates
According to PTPTN Act 1997, PTPTN shall submit an estimate
of the expenditure to the MOHE
The minister notify PTPTN about the amount authorized for
the expenditure before the beginning of the year
PTPTN may submit to the Minister at any time a
supplementary estimate of its expenditure
Minister may allow the whole or any part of the additional
expenditure
No information regarding the budgeting amount

Budgeting
Expenditure On The Fund
Granting of educational loans to students for the
payment of fees, equipment and aids, cost of living
expenses
Administrative expenses including remuneration,
retirement benefits, gratuities and allowances of the
servants and officers of PTPTN
Other expenses incidental to the management of the
fund and functions of the PTPTN

Budgeting

Loan Amount
Date

Actual Accumulated
Amount
(RM billion)

Total Students
(million)

Incremental
Amount (RM
billion)

31 August 2012

45.41

2.03

23 January 2013

48.09

2.14

2.68

31 October 2013

52.69

2.35

4.83

24 August 2014

56.69

2.46

3.77

30 September 2015

58.60

2.97

1.91

The amount increased by RM2.68 billion (5months),

RM4.83 billion (9months), RM3.77 billion (10months)
and RM1.91 billion (13months)
Due to the low repayment amount, PTPTN has decided
to decreased the loan amount from year 2014

Budgeting
Repayment
Oct 2014 March 2015, RM348.46 million collected
through 20% discount incentive
RM331.45 million collected through 10% discount
incentive in the same period
Discount given were RM87.12 million and RM33.15
million respectively
As of March 2015, the borrowers had started to make
repayment totaling RM6.24 billion

Budgeting
New Adjustment Loan Amount Beginning
November 2014
Full loan students whose parents getting 1Malaysia Peoples Aid
(BR1M)
75% of loan students with household income <RM8,000
50% of loan students with household income >RM8,000
Loan decreased by 5% for students attending local universities
Loan decreased by 15% for students attending private universities

Number of
students
receiving
full
financing
from the
PTPTN is
expected to
reduced by
43%
(180,000 to
102,000).

Exemption of PTPTN Loan

Under Budget Plan 2010, PTPTN loan will be converted to
scholarships for students who get a first class honour degree
Conditions :
1. Attended full time course
2. Completed the study within the period
3. PTPTN financing does not overlap with other sponsorship
4. Submit the complete application within 12 months from the date
of convocation
5. Course attended have been accredited by Malaysian
Qualification Agency (MQA)

 RM116,230 has been allocated for exemption of PTPTN

loan
4,430 graduates eligible for exemption between 20052009
Only 1,335 graduates apply for the exemption
Remaining 3,095 borrowers who were eligible did not
make any application

Auditor General Report

Issue #1: ELMAS Is Not
Comprehensive and Not Secured

Applications for extension of loan and deferment of

repayments were done through another system which is
called e-UPKB.

E-UPKB does not share the same user interface with ELMAS
and ELMAS-I

Recommendations

Reconstruct the whole interface of its data system

Creation of Matrix Access Control which ensure a detail user

access

Auditor General Report

Issue #2: 104 Unused Personal
Computers

104 unused PCs are found

Possibility of fraud/collusion

2 laptops per officer a waste of resource

Recommendations

Policy of 1 laptop per officer

Excess laptops must be returned immediately

Auditor General Report

Issue #3: No Service Level
Agreement/Guarantee

There is no SLA supplier failed to provide WAN network

service

There is no SLG unable to ask supplier for repayment and

also to impose penalty

Recommendations:

Draft the SLA immediately and signed by both parties

SLA should define the performance standards and also includes

the rights of both parties

Auditor General Report

Issue #4: Data Cleansing of ELMAS &
ELMAS-i

No data cleansing

Accumulation of old and outdated data

Damaged the integrity and consistency and slows down the

whole system

Recommendations

Data cleansing should be carried out systematically and

periodically

Remove data is more than 7 years old

Auditor General Report

Issue #5: No Training on Disaster Recovery
Simulation

Staff may not be competent and aware of their responsibilities in the

event of disaster

Possibly halt the entire operation and adverse impact on cash flows

Recommendations:

Disaster recovery plans must be laid out and communicated to the staffs

Data and backup stored at separate locations around the world

Database should be periodically tested to ensure works as intended and

also to detect the vulnerability to attacks

Emerging Issues
1. Exemption for PTPTN Loan Repayment
First Class Honours
4,430 students eligible 2005-2009
1,335 students applied
June 2012 - 13,192 students exempted
33 top scorers medical scholarships
Serve as government doctor 10 years
Inequality rate of First Class Honours
Should have uniform rate(CGPA)

Emerging Issues
2. Reduce the Size of PTPTN Loan
5% - Public Universities
15% - Private Universities
Medicine course not affected
Reduce number of students from 180,000 to
102,000

Emerging Issues
3. 20% Discount on PTPTN Loan
1st Oct 2012 20th Dec 2013 every level
10% given to installment repayment
21,289 borrowers Total discount RM15.53
2,962 borrowers full repayment RM15m
Oct 2014 March 2015
39,239 borrowers RM87.12 million
10% discount 119,954 bprrowers RM331.45m

Emerging Issues
4. Number of Defaulters increased (Biggest
problem)
Influence next generations insufficient fund
Reason change address/email
Unemployed - Email to PTPTN to delay repayment

5. Court/Legal Action
First time (2005)
2nd & 3rd Notice letter being ignored
200 graduates from first bath (1997)
Publish defaulters name on newspaper
2006, decide not to publish anymore - ineffective

Emerging Issues
6. Barred the Defaulters from Leaving
Oversea
2005 barred 81 defaulters (1999)
25% make repayment
Between 2001-2014, 134,664 students had been barred
2014-2015, still 80,000 students blacklisted
Monthly installment sign contract

Emerging issues
7. Payroll cut
Implemented since September 2015
Duty of an employer to deduct from the salary of
recipient, upon being notified by IRB
Raising the dissatisfaction and rebuttal of borrowers
CUEPACS declared that cutting the salaries with
maximum amount is unreasonable
CUEPACS might withdraw authorization for PTPTN to
make salary cut for civil servants

 PTPTN has returned the monthly deduction of December

to 3,193 borrowers
Civil servants with outstanding loans from the PTPTN
must negotiate the methods of repayment
IRB appointed as collection agent under the PTPTN Act
1997
Pay to the PTPTN the total sum of repayment collected
every three months
Due to this issue, the government has decided that
effective from November 1st, IRB no longer acts as
PTPTN collection agent

Emerging issues
8. Central Credit Reference Information System
(CCRIS)
Online system that collects credit information on borrowers
Used CCRIS to educate borrowers, discipline them in making
payment regularly
First stage involve 173,895 borrowers who had not started repay
their loan three years after graduating
Apply for loan, financial institution will first evaluate credit
worthiness of a person
Analyzing the loan balance, record of installment payments for a
period of 12 months

Conclusion
PTPTN helped a huge number of needy university
students in completing their studies
Repayment of funds had been an emerging issues
All loan receivers have the responsibility to make
repayment
To give an opportunity to the future generation to
further their education
PTPTN should be considerate when taking actions and
the borrowers should always follow up with the
repayment