- 30 Marks
PSAF – May 2017 – L2 – SA – Q1 – Government Revenue
Prepare the financial statements for Kaloba State Government, including Consolidated Revenue Fund, Development Fund, and Statement of Assets and Liabilities.
Question
The following balances were extracted from the books of KALOBA State Government of OTAN as at December 31, 2015:
| Item | Dr (N’Million) | Cr (N’Million) |
|---|---|---|
| Cash Account | 60,000 | |
| Consolidated Revenue Fund as at Jan 1, 2015 | 120,000 | |
| Allocation from Federation Account | 300,000 | |
| Other Revenue | 40,000 | |
| Personnel Costs | 150,000 | |
| Ordinary Shares of N1 each in AKRAN Plc | 150,000 | |
| Deposits | 60,000 | |
| Advances | 80,000 | |
| Loans from Federal Government | 60,000 | |
| Loans to Local Government | 80,000 | |
| Fixed Deposit – LOBO Bank Plc | 60,000 | |
| Total | 580,000 | 580,000 |
Additional information:
- N40 billion should be transferred to the Development Fund for capital projects to be embarked upon in the 1st quarter of 2016.
- Other charges approved by the Fund Management Committee and paid during the year but omitted from the books amounted to N50 billion.
- Total grants of N100 billion collected from the Federal Government for a capital project to be embarked upon in the 1st quarter of 2016 were not recorded in the books.
Required:
Prepare the following statements for submission to the Auditor-General for the State:
- Consolidated Revenue Fund Account for the period ended December 31, 2015. (8 Marks)
- Development Fund Account for the period ended December 31, 2015. (3 Marks)
- Statement of Assets and Liabilities as at December 31, 2015. (9 Marks)
(b) State the components of General Purpose Financial Statements (GPFS) of a typical Federal or State Government. (4 Marks)
(c) State FOUR principal users of government financial reports and their needs. (6 Marks)
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