- 30 Marks
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)
Answer
b. Components of General Purpose Financial Statements (GPFS):
- Cash Flow Statement
- Statement of Consolidated Revenue Fund
- Statement of Capital Development Fund
- Statement of Assets and Liabilities
- Notes to the Accounts
- Performance Reports (Comparison of budget and actual amounts)
- Statistical Reports
- Accounting Policies
- Responsibility Statement
c. Users and their Needs:
- Internal Users:
- Labour Union: Interested in negotiating employment conditions and tenure security.
- Executive Arm (President, Ministers, etc.): Ensures accountability and evaluates performance through efficient record-keeping.
- External Users:
- Legislature: Uses reports to provide stewardship to constituencies and assess governance.
- General Public: Understands government efforts and impacts through financial transparency.
- Topic: Government Revenue
- Series: MAY 2017
- Uploader: Theophilus