The Case Study

The Ministry of Finance in Bahrain requires its staff to carry out their work with reference to the highest levels of ethical behaviour and professional standards. This is particularly the case for those individuals with financial responsibilities or supervisory or management responsibilities for individuals or groups. As public servants , Ministry employees must understand the principles of “the public interest ‘ and carry out their duties with integrity

You are working as an HR Officer at Ministry of Finance in the HR Department, You have requested by your Manager to devise an organisational code of Conduct for the staff in the Purchasing Department with appropriate standards of professional conduct clearly posted. In addition you should address the possible irregularities that the staff my face during their service. In addition the staff in the purchase Department should be able to report any unethical practices to their supervisors following the agreed standards.

The current code of conduct and professional standards need to be reviewed and updated to reflect the best practices in professional accounting bodies.

Main Tasks

1. Determine  the main principles of ethical behaviours and professional practices that should be  used in the purchase department

2. Discuss the risks to the Ministry of Finance resulting from unethical behaviour and financial irregularities.

3. Produce a sample internal report to be used in the Purchase department to highlight the source of  non-compliance and financial irregularities

General Instructions

1.     The assignment front sheet together with the assessment feedback sheet has to be attached with this assignment.

2.     This is and individual work assessment.

3.     Read the assessment carefully and gather the required information from the official sources.

4.     This assessment should be submitted on time.

5.     Work presented after the submission date will not be considered  for grading

6.     Work that is plagiarized or copied will be given the (UNACHIEVED  GRADE)

7.     Assessment paper must be collect from and submitted back to PIBA assigned officer using the agreed submission mechanism.

Task 1 Specifications

Main Task

Determine  the main principles of ethical behaviours and professional practices that should be used in the purchase department

Outcome 1

Understand the principles of ethical behaviour and professional practice as applied in the Ministry of Finance

Assessment Criteria

Sub-Tasks

To Achieve (P)

To Achieve (M)

To Achieve

(D)

Task Grade

1.1

Discuss the key principles of ethical behaviour in Purchasing Department

(P1)

·  Define the term of general ethics

·  List the key principles

·  Identify the accountability of employee’s behaviour

·  Highlight the importance of integrity and transparency for a public sector employer

(M1)

·  Compare the current principles to the standard ones

·  Justify your choice for accountability

(D1)

Determine the best principles with justification

1.2

Assess how effectively the general principles of ethical behaviour are applied in the Ministry of Finance

(P2)

·    Define the confidentiality term under the Code of Ethics context.

·    Discuss the effectiveness of application the principles of ethical behaviours

1.3

Assess the impact of legal and regulatory requirements on financial accountability within the Ministry of Finance.

(P3)

·     Define the accountability term

·     List the different types of accountabilities

·     Define the financial accountability

(M2)

·       Differentiate between accountability and responsibility

1.4

Discuss the responsibilities of International Federation of Accountants.

(P4)

·       List the role and responsibilities of IFA

M(3)

·       Compare the IFA with another regulatory body CIPFA

(D2)

Discuss the role of the  Bahrain Accountants Association’s code of ethics as a guide for accountants in Bahrain

Task 2 Specifications

Main Task

Discuss the risks to the Ministry of Finance of unethical behaviour and Financial irregularities

Outcome 2

Understand the risks to the Ministry of Finance of unethical behaviour and financial irregularities

Assessment Criteria

Sub-Tasks

To Achieve (P)

To Achieve (M)

To Achieve (D)

Task Grade

2.1

 Analyse  risk types

(P5)

· Define the improper practice.

· Classify the Types of potential Risks and challenges that Bahrain Public sector faces.

(M4)

·  Categorise risks based on their importance

·  Differentiate between the terms Risk Transfer, and Risk acceptance.

2.2

Discuss the role of Risk management body

(P6)

·   Discuss the role of government to minimise the risk in the purchase department the public sectors

·   Discuss the role of Management in the MoF in minimizing the risk.

·   List the main components of a risk plan that could be used by the public sector

(M5)

·  Discuss the possible methods that could be used by government to mitigate risk.

(D3)

·  Evaluate the effectiveness of these methods.

·  Evaluate the risk plan management evolvement in a country like Bahrain

2.3

Evaluate  the role of  internal and external Audits  in determining the responsibility and accountability in the MoF practices

(P7)

·  List the different auditing bodies responsible for determining the risk

·  Explain the role of the internal external auditing bodies in minimising the risk.

(M6)

·  Discuss the importance of the reputational risk in the public sector.

·  Give example of  some  situations where legal risk may arise in purchasing department work

Task 3 Specifications

Main Task

Produce a sample internal report to be used in the Purchase department to highlight the source of  non-compliance and financial irregularities

Outcome

Be able to use internal procedures to address and report  non-compliance and financial irregularities

Assessment Criteria

Sub-Tasks

To Achieve (P)

To Achieve (M)

To Achieve (D)

Task Grade

3.1

Discuss the policies and procedures

(P8)

·  State the specific MoF policy and procedure regarding the case under investigation

·  Determine the appropriate scope of ethics for an employee in the public sector

3.2

Propose the best practice framework

(P9)

·  Enumerate the standards of the accountancy profession that are determined by public interest.

·  Describe the Code of Ethics as outlined by ICAEW.

·       Describe the fundamental principles, as laid down by ICAEW, for a professional accountant to follow.

·       Describe the business ethics according to McNamara

(M7)

Explain the impact of McNamara code of ethics on managers

3.3

Address the suspected breach

P(10)

Identify the breach of ethics that cause to plug.  Give an example of ethical breach in the Ministry of Finance.

3.4

Draft the internal report for judgment

P(11)

·  Discuss the possibility of professional accountant use his moral judgement

·  Describe the process of internal auditing done in the Ministry of Finance.

·  Prepared draft internal audit reports as per Bahrain’s public sector