- 10 Marks
PSAF – Mar 2023 – L2 – Q3b – Financial statements discussion and analysis
Computes and discusses financial ratios to evaluate the performance of a Municipal Assembly over two years.
Question
The Financial Information below relates to Agogo Municipal Assembly.
Agogo Municipal Assembly
Statement of Financial Performance for the year ended 31 December
Additional Information:
- The Statistical and economic data of the two years for the Municipal is as follows:
| Description | 2022 | 2021 |
|---|---|---|
| Population | 180,000 | 175,000 |
- Decentralised Transfer includes Common Fund from the Central Government of the respective years. Common Fund constitutes 60% of the Decentralised Transfer for 2022 and 50% of the Decentralised Transfer for 2021.
Required:
i) From the information provided, compute for the respective years:
- Common Fund per Capita
- IGF per Capita
- Compensation of Employees to Total Revenue
- Interest to IGF Ratio
(4 marks)
ii) Based on the results computed in i) above, discuss the performance of the Municipal Assembly.
(6 marks)
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