e-ISSN 2231-8542
ISSN 1511-3701

Home / Regular Issue / JTAS Vol. 27 (2) Jun. 2019 / JSSH-2542-2017


The Effectiveness of Public School Fund Distribution − A Study of Poor Student Trust Fund

Anuar Nawawi and Ahmad Saiful Azlin Puteh Salin

Pertanika Journal of Tropical Agricultural Science, Volume 27, Issue 2, June 2019

Keywords: Accountability, fraud, internal control, Malaysia, public finance management, public sector accounting

Published on: 28 June 2019

The purpose of this study is to examine the effectiveness of the distribution procedure of the Poor Student Trust Fund to schools in Malaysia. This study will also identify the weaknesses in the fund distribution process and associate it with the internal control activities currently applied in that procedure. A mixed method of data collection via analysis of semi structured interviews and document analysis was employed to gain understanding on the current distribution procedures at the state, district, and school levels, while at the same time highlight the strengths and weaknesses in the current processes. This study found that over-dependence on the manual systems, task redundancies, duplication of resources, poor usage of information and communication technologies, and incompetence of human capital are the factors that contributed to the inefficiency of funds distributed from the state to the beneficiaries at the schools. The results provide further confirmation of the poor accountability of the public sector management in Malaysia, particularly in managing public finance in the education sectors. This study provides an indicator to government and stakeholders that various efforts and change are needed to be taken in order to improve the current fund distribution process, at least in the context of poor student trust funds. The internal controls have too many weaknesses that consequently lead to the late acceptance of government financial assistance. This will be worse off if it does not reach the right beneficiaries and is susceptible to fraud.

ISSN 1511-3701

e-ISSN 2231-8542

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