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Below is the Trial Balance of the Consolidated Fund for the year ended 31 December 2014.
Additional Information:
i) It is the policy of Controller and Accountant General to adopt the accrual basis of preparing the public accounts of the Consolidated Fund for the first time in compliance with the Financial Administration Regulation 2004 and the International Public Sector Accounting Standards (IPSAS). The effective date is 31 December 2014.
ii) The current Chart of Accounts based on the GFS 2001 is used in the classification of revenues and expenditures.
iii) Consumption of fixed capital charged on cost for the year has been computed as GH¢156,000,000.
iv) Direct tax revenues due to government but were not received at 31 December 2014 amounted to GH¢49,000,000.
v) An established post salary in arrears as a result of salary increment in the fourth quarter of 2014 was GH¢56,000,000 and goods and services outstanding at the end of the year amounted to GH¢12,000,000.
vi) The grant shown in the trial balance as expenditure represents a statutory transfer to the District Assembly Common Fund (DACF). Any arrears in the DACF should be treated as payable. The current rate of transfer is 7.5% on the amount received.
vii) Public debt interest of GH¢14,000,000 was due to creditors but was not paid as at 31 December 2014.
Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
i) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2014.
ii) Statement of Financial Position of the Consolidated Fund as at 31 December 2014.
(Show all workings clearly)
b) Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.
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Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December 2020.
| Item Description | DR (GH¢ million) | CR (GH¢ million) |
|---|---|---|
| Cash and Bank | 61,350 | |
| Established Post Salaries | 13,524 | |
| Non-Established Post Salaries | 4,016 | |
| Communications Service Tax | 5,144 | |
| PAYE | 6,940 | |
| Non-Tax Revenues | 2,312 | |
| Travel and Transport | 468 | |
| Administration Cost | 6,704 | |
| Conferences and Seminars | 2,510 | |
| Foreign Travel Cost | 1,490 | |
| Stationery Inventories | 20 | |
| Stationery Purchased | 220 | |
| Vehicles Income Tax | 2,316 | |
| Corporate Tax | 4,626 | |
| Grants | 1,150 | 2,516 |
| Customs and Excise Duties | 1,286 | |
| Subsidies for Consumption | 1,282 | |
| Subsidies for Production | 722 | |
| Value Added Tax | 7,716 | |
| Social Benefits | 760 | |
| State Protocol | 100 | |
| Allowance | 300 | |
| Domestic Debt Interest | 2,906 | |
| External Debt Interest | 3,482 | |
| Motor Vehicle | 4,800 | 1,920 |
| Equipment | 8,400 | 1,680 |
| Computers | 18,400 | 5,240 |
| Railway (Completed) | 5,000 | |
| Work in Progress | 400 | |
| Equity and Security Investment | 1,960 | |
| Loans and Advances | 1,120 | |
| Gold and Other Reserves | 1,620 | |
| Judgement Debt | 280 | |
| Treasury Bills | 22,240 | |
| Domestic Debt | 26,924 | |
| Payables | 34,844 | |
| External Debt | 45,726 | |
| Trust Fund and Deposits | 4,470 | |
| Other Expenditure | 1,800 | |
| Rent Receivable | 1,600 | |
| Accumulated Fund | 29,516 |
Total: 175,900, 175,900
Additional information:
i) It is the policy of the Controller and Accountant General to use Accrual Basis of Accounting in preparing the Public Accounts of the Consolidated Fund financial statements in compliance with the Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378, and the International Public Sector Accounting Standards (IPSAS).
ii) Inventory in respect of stationery outstanding as at 31 December 2020 cost GH¢18 million and has a current Replacement Cost of GH¢12 million. Meanwhile, the Net Realisable value of the Inventories is estimated at GH¢14 million. No market exists for unused inventories.
iii) An Established Post Salary in arrears as a result of a salary increment in the fourth quarter of 2020 was GH¢56 million, and Public Debt Interest outstanding as at 31 December 2020 amounts to GH¢14 million.
iv) Consumption of Fixed Capital is charged on a Straight-Line Basis for the year as follows:
| Asset | Useful life |
|---|---|
| Motor Vehicle | 5 years |
| Equipment | 10 years |
| Computers | 5 years |
| Railway | 20 years |
v) The Multilateral Partners have extended their Debt Forgiveness policy to the Government, which has resulted in the External Debt write-off amounting to GH¢4 billion in the year. However, this transaction has not been accounted for in the books.
vi) In the year 2019, GH¢8 billion was spent in acquiring Equipment to boost Government projects. However, these transactions were recognised in the accounts as Goods and Services Expenditure in the year 2019. This error has since not been rectified.
Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
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The objective of enactments relating to public financial management, among others, is to safeguard public funds from plunder. One way to achieve this objective is by making specific provisions on the modalities for making payments from the Consolidated Fund (Article 178 of the 1992 Constitution). The law requires that all payments from the Consolidated Fund should be authorized and the payment should comply with certain general rules.
Required:
i) Identify and explain THREE ways of authorizing payments out of the consolidated fund. (6 marks)
ii) Identify FOUR statutory payments permissible by law in the public sector. (4 marks)
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b) The financial information below relates to the Consolidated Fund of Ghana.
Statement of Financial Position of the Consolidated Fund as at December 31, 2018
| Item | 2018 (GH¢’million) | 2017 (GH¢’million) |
|---|---|---|
| Non-Current Assets | ||
| Property Plant and Equipment | 4,200 | 5,600 |
| Equity investment | 10,000 | 12,000 |
| Total Non-current assets | 14,200 | 17,600 |
| Current Assets | ||
| Work in progress | 2,500 | 2,000 |
| Receivables | 1,100 | 900 |
| Cash and cash equivalent | 3,250 | 2,980 |
| Other assets | 450 | 600 |
| Total current assets | 7,300 | 6,480 |
| Total assets | 21,500 | 24,080 |
| Funds and Liabilities | ||
| Accumulated Fund | (111,280) | (111,620) |
| Current Liabilities | ||
| Payables | 1,600 | 19,000 |
| Trust monies | 2,540 | 2,300 |
| Domestic loans | 11,240 | 12,500 |
| Total Current Liabilities | 15,380 | 33,800 |
| Non-Current Liabilities | ||
| Domestic loans | 52,000 | 43,000 |
| External loans | 65,400 | 58,900 |
| Total Non-Current Liabilities | 117,400 | 101,900 |
| Total Funds and Liabilities | 21,500 | 24,080 |
Additional Information:
i) The total market value of all final goods and services produced domestically in Ghana for 2018 and 2017 fiscal years amounted to GH¢205,100,940,000 and GH¢185,600,400,000 respectively.
ii) According to the Statistical Service data, the population of the country is estimated as 25,000,000 in 2018 and 23,900,000 in 2017.
Required:
i) From the information above, compute for the two financial years, the following ratios:
ii) Based on the ratios computed, write a report discussing and analyzing the financial position of the Consolidated Fund to the Head of a “think tank” of a Civil Society Organisation for Financial Accountability. (6 marks)
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Additional Information:
i) The Controller and Accountant General uses the modified accrual accounting concept in the preparation of its accounts.
ii) Established Post salaries of GH¢2,937,000 were outstanding as of 31/12/2018.
iii) Interest on domestic and external loans is provided for at 20% and 15%, respectively.
iv) The Central Government depreciates assets on a cost basis using the schedule below:
| Class of Assets | Number of Years |
|---|---|
| Building | 50 years |
| Plant, Machinery, Furniture, and Fittings | 20 years |
| Transport Equipment | 7 years |
| Computer Software and License | 5 years |
v) Provisions:
Specific provision for bad debt is made for loans receivables and investments as and when their non-recoverability is determined, and where a request is made for write-off to parliament. This provision is set at 3% and 5%, respectively.
Required:
a) Prepare the Statement of Financial Performance of the Consolidated Fund for the year ended 31/12/2018.
(10 marks)
b) Prepare the Statement of Financial Position for the Consolidated Fund as at 31/12/2018.
(7 marks)
c) State and explain THREE (3) Accounting Policies that usually accompany Consolidated Fund Financial Statements.
(3 marks)
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Presented below is the Statement of Financial Performance of the Consolidated Fund of Ghana.
Revenue and Expenditure Statement of the Consolidated Fund for the year ended 31 December, 2018
Required:
Based on a Common Size Statement of Financial Performance, write a report discussing and analyzing the financial performance of the Consolidated Fund in line with the Recommended Practice Guide 2, Financial Statement Discussion and Analysis.
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The following are the balances extracted from the Consolidated Fund of Public Accounts for the year ended 31st December 2017:
| Description | Amount (GH¢ ‘000) |
|---|---|
| Consumption of fixed Capital | 208,878 |
| Miscellaneous Direct Taxes | 98,238 |
| Social Security Benefit in Kind | 66,120 |
| 13.5% SSF Contribution | 45,000 |
| Project Grant | 9,370 |
| Fines, Penalties and Forfeitures | 25,928 |
| Materials and Office Consumables | 117,526 |
| General Taxes on Goods & Services | 265,064 |
| Travel & Transport | 41,610 |
| Social Assistance Benefits | 68,678 |
| Established Post- salaries | 800,800 |
| Domestic Debt Interest | 40,200 |
| Gratuity | 20,000 |
| Training, Seminar and Conference Cost | 54,250 |
| External Debt Interest | 83,772 |
| Allowances to Employees | 56,000 |
| Repairs and Maintenance | 34,560 |
| Property Income | 25,000 |
| Cash & Bank Balances | 1,960,898 |
| Advances & Receivables | 60,164 |
| Taxes on Exports | 581,588 |
| Long Term Receivables | 2,836,616 |
| Non-Established Post-salaries | 400,104 |
| Payables | 1,211,044 |
| Accumulated Surpluses (1/1/2017) | (61,343,676) |
| Deposit and Other Trust Monies | 3,752,412 |
| Short-Term Borrowing | 11,299,822 |
| Taxes paid by individuals | 810,436 |
| Subsidy on Petroleum Products | 15,000 |
| Fertilizer Subsidies | 24,068 |
| Equity Investment | 3,619,752 |
| End of Service Benefit | 25,880 |
| Infrastructure, Plant & Equipment | 2,028,806 |
| Taxes paid by Companies & Enterprises | 135,784 |
| Work-In-Progress | 304,880 |
| Domestic Debt | 23,719,588 |
| External Debt | 32,283,148 |
| Employer Social Benefits in Cash | 30,500 |
| Other Expenses (note i) | 22,584 |
| Excise Duties | 92,900 |
Additional Notes:
i) Other Expenses:
During the year, the Government of Ghana benefited from free services provided by medical experts who were task forces of the British Government. The main objective of this task force was to help curb cholera in the country. The fair value of these services amounted to GH¢ 18,740,000. It is the policy of the Government to include goods and services received during the year in kind in its financial statements at fair values.
ii) The annual estimates for the year ending 2017 were as follows:
Required:
a) Prepare a Statement of Revenue and Expenditure of the Consolidated Fund for the year ended December 31, 2017, indicating the accompanying variances to the statement.
b) Prepare a Statement of Financial Position of the Consolidated Fund as of December 31, 2017.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Below is the Trial Balance of the Consolidated Fund for the year ended 31 December 2014.
Additional Information:
i) It is the policy of Controller and Accountant General to adopt the accrual basis of preparing the public accounts of the Consolidated Fund for the first time in compliance with the Financial Administration Regulation 2004 and the International Public Sector Accounting Standards (IPSAS). The effective date is 31 December 2014.
ii) The current Chart of Accounts based on the GFS 2001 is used in the classification of revenues and expenditures.
iii) Consumption of fixed capital charged on cost for the year has been computed as GH¢156,000,000.
iv) Direct tax revenues due to government but were not received at 31 December 2014 amounted to GH¢49,000,000.
v) An established post salary in arrears as a result of salary increment in the fourth quarter of 2014 was GH¢56,000,000 and goods and services outstanding at the end of the year amounted to GH¢12,000,000.
vi) The grant shown in the trial balance as expenditure represents a statutory transfer to the District Assembly Common Fund (DACF). Any arrears in the DACF should be treated as payable. The current rate of transfer is 7.5% on the amount received.
vii) Public debt interest of GH¢14,000,000 was due to creditors but was not paid as at 31 December 2014.
Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
i) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2014.
ii) Statement of Financial Position of the Consolidated Fund as at 31 December 2014.
(Show all workings clearly)
b) Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.
Find Related Questions by Tags, levels, etc.
Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December 2020.
| Item Description | DR (GH¢ million) | CR (GH¢ million) |
|---|---|---|
| Cash and Bank | 61,350 | |
| Established Post Salaries | 13,524 | |
| Non-Established Post Salaries | 4,016 | |
| Communications Service Tax | 5,144 | |
| PAYE | 6,940 | |
| Non-Tax Revenues | 2,312 | |
| Travel and Transport | 468 | |
| Administration Cost | 6,704 | |
| Conferences and Seminars | 2,510 | |
| Foreign Travel Cost | 1,490 | |
| Stationery Inventories | 20 | |
| Stationery Purchased | 220 | |
| Vehicles Income Tax | 2,316 | |
| Corporate Tax | 4,626 | |
| Grants | 1,150 | 2,516 |
| Customs and Excise Duties | 1,286 | |
| Subsidies for Consumption | 1,282 | |
| Subsidies for Production | 722 | |
| Value Added Tax | 7,716 | |
| Social Benefits | 760 | |
| State Protocol | 100 | |
| Allowance | 300 | |
| Domestic Debt Interest | 2,906 | |
| External Debt Interest | 3,482 | |
| Motor Vehicle | 4,800 | 1,920 |
| Equipment | 8,400 | 1,680 |
| Computers | 18,400 | 5,240 |
| Railway (Completed) | 5,000 | |
| Work in Progress | 400 | |
| Equity and Security Investment | 1,960 | |
| Loans and Advances | 1,120 | |
| Gold and Other Reserves | 1,620 | |
| Judgement Debt | 280 | |
| Treasury Bills | 22,240 | |
| Domestic Debt | 26,924 | |
| Payables | 34,844 | |
| External Debt | 45,726 | |
| Trust Fund and Deposits | 4,470 | |
| Other Expenditure | 1,800 | |
| Rent Receivable | 1,600 | |
| Accumulated Fund | 29,516 |
Total: 175,900, 175,900
Additional information:
i) It is the policy of the Controller and Accountant General to use Accrual Basis of Accounting in preparing the Public Accounts of the Consolidated Fund financial statements in compliance with the Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378, and the International Public Sector Accounting Standards (IPSAS).
ii) Inventory in respect of stationery outstanding as at 31 December 2020 cost GH¢18 million and has a current Replacement Cost of GH¢12 million. Meanwhile, the Net Realisable value of the Inventories is estimated at GH¢14 million. No market exists for unused inventories.
iii) An Established Post Salary in arrears as a result of a salary increment in the fourth quarter of 2020 was GH¢56 million, and Public Debt Interest outstanding as at 31 December 2020 amounts to GH¢14 million.
iv) Consumption of Fixed Capital is charged on a Straight-Line Basis for the year as follows:
| Asset | Useful life |
|---|---|
| Motor Vehicle | 5 years |
| Equipment | 10 years |
| Computers | 5 years |
| Railway | 20 years |
v) The Multilateral Partners have extended their Debt Forgiveness policy to the Government, which has resulted in the External Debt write-off amounting to GH¢4 billion in the year. However, this transaction has not been accounted for in the books.
vi) In the year 2019, GH¢8 billion was spent in acquiring Equipment to boost Government projects. However, these transactions were recognised in the accounts as Goods and Services Expenditure in the year 2019. This error has since not been rectified.
Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
Find Related Questions by Tags, levels, etc.
The objective of enactments relating to public financial management, among others, is to safeguard public funds from plunder. One way to achieve this objective is by making specific provisions on the modalities for making payments from the Consolidated Fund (Article 178 of the 1992 Constitution). The law requires that all payments from the Consolidated Fund should be authorized and the payment should comply with certain general rules.
Required:
i) Identify and explain THREE ways of authorizing payments out of the consolidated fund. (6 marks)
ii) Identify FOUR statutory payments permissible by law in the public sector. (4 marks)
Find Related Questions by Tags, levels, etc.
b) The financial information below relates to the Consolidated Fund of Ghana.
Statement of Financial Position of the Consolidated Fund as at December 31, 2018
| Item | 2018 (GH¢’million) | 2017 (GH¢’million) |
|---|---|---|
| Non-Current Assets | ||
| Property Plant and Equipment | 4,200 | 5,600 |
| Equity investment | 10,000 | 12,000 |
| Total Non-current assets | 14,200 | 17,600 |
| Current Assets | ||
| Work in progress | 2,500 | 2,000 |
| Receivables | 1,100 | 900 |
| Cash and cash equivalent | 3,250 | 2,980 |
| Other assets | 450 | 600 |
| Total current assets | 7,300 | 6,480 |
| Total assets | 21,500 | 24,080 |
| Funds and Liabilities | ||
| Accumulated Fund | (111,280) | (111,620) |
| Current Liabilities | ||
| Payables | 1,600 | 19,000 |
| Trust monies | 2,540 | 2,300 |
| Domestic loans | 11,240 | 12,500 |
| Total Current Liabilities | 15,380 | 33,800 |
| Non-Current Liabilities | ||
| Domestic loans | 52,000 | 43,000 |
| External loans | 65,400 | 58,900 |
| Total Non-Current Liabilities | 117,400 | 101,900 |
| Total Funds and Liabilities | 21,500 | 24,080 |
Additional Information:
i) The total market value of all final goods and services produced domestically in Ghana for 2018 and 2017 fiscal years amounted to GH¢205,100,940,000 and GH¢185,600,400,000 respectively.
ii) According to the Statistical Service data, the population of the country is estimated as 25,000,000 in 2018 and 23,900,000 in 2017.
Required:
i) From the information above, compute for the two financial years, the following ratios:
ii) Based on the ratios computed, write a report discussing and analyzing the financial position of the Consolidated Fund to the Head of a “think tank” of a Civil Society Organisation for Financial Accountability. (6 marks)
Find Related Questions by Tags, levels, etc.
Additional Information:
i) The Controller and Accountant General uses the modified accrual accounting concept in the preparation of its accounts.
ii) Established Post salaries of GH¢2,937,000 were outstanding as of 31/12/2018.
iii) Interest on domestic and external loans is provided for at 20% and 15%, respectively.
iv) The Central Government depreciates assets on a cost basis using the schedule below:
| Class of Assets | Number of Years |
|---|---|
| Building | 50 years |
| Plant, Machinery, Furniture, and Fittings | 20 years |
| Transport Equipment | 7 years |
| Computer Software and License | 5 years |
v) Provisions:
Specific provision for bad debt is made for loans receivables and investments as and when their non-recoverability is determined, and where a request is made for write-off to parliament. This provision is set at 3% and 5%, respectively.
Required:
a) Prepare the Statement of Financial Performance of the Consolidated Fund for the year ended 31/12/2018.
(10 marks)
b) Prepare the Statement of Financial Position for the Consolidated Fund as at 31/12/2018.
(7 marks)
c) State and explain THREE (3) Accounting Policies that usually accompany Consolidated Fund Financial Statements.
(3 marks)
Find Related Questions by Tags, levels, etc.
Presented below is the Statement of Financial Performance of the Consolidated Fund of Ghana.
Revenue and Expenditure Statement of the Consolidated Fund for the year ended 31 December, 2018
Required:
Based on a Common Size Statement of Financial Performance, write a report discussing and analyzing the financial performance of the Consolidated Fund in line with the Recommended Practice Guide 2, Financial Statement Discussion and Analysis.
Find Related Questions by Tags, levels, etc.
The following are the balances extracted from the Consolidated Fund of Public Accounts for the year ended 31st December 2017:
| Description | Amount (GH¢ ‘000) |
|---|---|
| Consumption of fixed Capital | 208,878 |
| Miscellaneous Direct Taxes | 98,238 |
| Social Security Benefit in Kind | 66,120 |
| 13.5% SSF Contribution | 45,000 |
| Project Grant | 9,370 |
| Fines, Penalties and Forfeitures | 25,928 |
| Materials and Office Consumables | 117,526 |
| General Taxes on Goods & Services | 265,064 |
| Travel & Transport | 41,610 |
| Social Assistance Benefits | 68,678 |
| Established Post- salaries | 800,800 |
| Domestic Debt Interest | 40,200 |
| Gratuity | 20,000 |
| Training, Seminar and Conference Cost | 54,250 |
| External Debt Interest | 83,772 |
| Allowances to Employees | 56,000 |
| Repairs and Maintenance | 34,560 |
| Property Income | 25,000 |
| Cash & Bank Balances | 1,960,898 |
| Advances & Receivables | 60,164 |
| Taxes on Exports | 581,588 |
| Long Term Receivables | 2,836,616 |
| Non-Established Post-salaries | 400,104 |
| Payables | 1,211,044 |
| Accumulated Surpluses (1/1/2017) | (61,343,676) |
| Deposit and Other Trust Monies | 3,752,412 |
| Short-Term Borrowing | 11,299,822 |
| Taxes paid by individuals | 810,436 |
| Subsidy on Petroleum Products | 15,000 |
| Fertilizer Subsidies | 24,068 |
| Equity Investment | 3,619,752 |
| End of Service Benefit | 25,880 |
| Infrastructure, Plant & Equipment | 2,028,806 |
| Taxes paid by Companies & Enterprises | 135,784 |
| Work-In-Progress | 304,880 |
| Domestic Debt | 23,719,588 |
| External Debt | 32,283,148 |
| Employer Social Benefits in Cash | 30,500 |
| Other Expenses (note i) | 22,584 |
| Excise Duties | 92,900 |
Additional Notes:
i) Other Expenses:
During the year, the Government of Ghana benefited from free services provided by medical experts who were task forces of the British Government. The main objective of this task force was to help curb cholera in the country. The fair value of these services amounted to GH¢ 18,740,000. It is the policy of the Government to include goods and services received during the year in kind in its financial statements at fair values.
ii) The annual estimates for the year ending 2017 were as follows:
Required:
a) Prepare a Statement of Revenue and Expenditure of the Consolidated Fund for the year ended December 31, 2017, indicating the accompanying variances to the statement.
b) Prepare a Statement of Financial Position of the Consolidated Fund as of December 31, 2017.
Find Related Questions by Tags, levels, etc.
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