Question Tag: FAAC

The following information was extracted from the records of the Accountant-General of Harmony State for the year ended December 31, 2020:

The following additional information was made available:
(i) Owing to the inability of the State to fulfill its obligation towards the
payment of the salaries of local government staff, a federal government
bailout of N301,024,000 was received after fulfilling all necessary
criteria set for accessing the fund.
(ii) During the year, the state government made claims for the repayment
of N65,483,000 relating to funds spent on the rehabilitation of federal
roads and was granted.
(iii) Details emerging from the Federation Accounts and Allocation
Committee (FAAC) showed the following:

(iv) Capital expenditure funded from aids and grants and external loan
amounted to N15,387,748,000
(v) During the year, the federal government made a transfer for the refund
on reconciliation of Paris Club account amounting to N41,310,000
(vi) Refund of bank charges to the Ministry of Finance in the state amounted
to N51,112,000.
(vii) Cash and cash equivalents as at January 1, 2020 and December 31, 2020
N1,546,699 and N301,657,000 respectively.
(viii) Other revenue sources of the state government during the year also
included an exchange difference amounting to N490,575,000.
(ix) Details of capital expenditure are categorised as follows:

Required:
a. Prepare statement of cash flows using direct method for the Harmony
State government for the year ended December 31, 2020.