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PSAF – Mar 2025 – L2 – Q1- Preparation and presentation of financial statements for covered entities

Prepare the Statement of Financial Performance for Hamile Teaching Hospital for 2023 per IPSAS and related regulations.

The Trial Balance below relates to Hamile Teaching Hospital, a public hospital.

Trial Balance for the year ended 31 December 2023
Debit Credit
GHc’000 GHc’000
Government subvention 100,750
Out-patient services fees 35,000
In-patient services fees 40,000
Development Partner grants (ii) 16,000
Established position salaries 62,000
Casual Labour 5,600
Contract appointment (local and foreign) 1,400
Limited engagements 200
Rent (iii) 500 150
Insurance 340
Consultancy services 120
Conferences, workshops and training 4,500
Purchase of drugs 60,000
Purchase of medical consumables 80,000
Office expenses 20,000
Repairs and maintenance 6,000
Interest on loan 10,000
Pharmacy sales 180,000
Diagnostic 85,000
Mortuary Services 9,400
Cafeteria and Canteen 4,650
Extension services 14,500
Furniture and office equipment (iv) 200,000 40,000
Medical equipment & accessories (iv & v) 420,000 120,000
Motor vehicles (iv) 120,000 20,000
Land and buildings (iv) 300,000 70,000
Bank and Cash 30,000
Receivable from National Health Insurance Scheme (vi) 65,000
Receivable from patients 15,000
Payables 26,000
Loan from foreign Institution (2028) (vii) 350,000
Inventory of drugs 22,000
Inventory of medical consumables 12,000
Accumulated Fund 336,210
Other expenses 13,000
1,447,660 1,447,660

Additional Information:
i) The hospital prepares its financial statements in accordance with the International Public Sector Accounting Standards (IPSAS), the Public Financial Management Act 2016, (Act 921), the Public Financial Management Regulation 2019, L.I 2378, and the current Chart of Accounts of the Government of Ghana.
ii) The Development Partner grants received from the Health Care Fund, an international organization that provides free medical care to the rural poor and vulnerable individuals, are typically unconditional. However, 40% of this year’s grant is subject to certain conditions, which had not been met as of December 31, 2023.
iii) Rent received in advance during the year amounted to GH¢20,000 while rent owed by the hospital for the year amounts to GH¢300,000.
iv) The hospital charges consumption of fixed assets on straight line basis as follows

Non-current Assets Estimated Useful Life
Furniture and office equipment 5 years
Medical equipment and accessories 4 years
Motor vehicles 5 years
Buildings 10 years

Land constitutes 30% of the amount of land and building shown in the trial balance.
v) A medical equipment valued at GH¢20,000,000 which is included in the medical equipment and accessories listed on the trial balance, was completely damaged due to consistent power fluctuations. The value of this equipment should be written off.
vi) The hospital submitted a claim of GH¢11,000,000 to the National Health Insurance Scheme for services provided to patients in the last quarter of 2023, but the payment has not yet been received. This transaction has not yet been reflected in the trial balance.
vii) The hospital took a loan of $100,000,000 from Health World Bank on January 1, 2023, when the exchange rate was $1 to GH¢3.50. The exchange rate on 31 December 2023 is $1 to GH¢5.
viii) The inventories on 31 December 2023 were as follows:

Inventory type Cost Net Realizable Value Current Replacement
GHc’000 GHc’000 GHc’000
Drugs 15,000 16,000 14,000
Medical consumables 10,000 11,000 9,000

Required:
Prepare for Hamile Teaching Hospital:
a) Statement of Financial Performance for the year ended 31 December 2023.

b) Statement of Financial Position as of 31 December 2023.

c) Disclosure notes to the financial statements.

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PSAF – Nov 2024 – L2 – Q1a – Financial Statements Preparation

Prepare the Statement of Financial Performance for Paja Teaching Hospital following IPSAS guidelines.

Below is a Trial Balance of Paja Teaching Hospital (PTH) under the Ministry of Health for the year ended 31 December 2023.

Debit (GH¢000) Credit (GH¢000)
Cash and Bank – GoG 3,400
Cash and Bank – IGF 72,200
Cash and Bank – Donor Funds 210,400
Undeposited Cash – IGF 4,000
Petty Cash 100
Investments 2,000
Debtors 661,400
Other Receivables 17,700
Withholding Tax
Trust Funds
Trade Payables
GoG Subsidy – Employee Compensation
GoG Subsidy – Goods & Services
Development Partners Programmes Receipt
Other Non-Operating Income
Medicines & Pharmaceuticals 433,900
Surgical 50,800
Medical 111,400
Investigation 140,900
OPD 238,400
Obstetrics and Gynaecology 135,300
Dental 8,300
Pediatrics 40,300
Ear, Nose & Throat 5,300
Eye Care 7,300
Mortuary 30,000
Ambulance Fees 300
Ophthalmology 3,000
Physiotherapy 3,300
Examination Fees 200
Dialysis 400
Feeding 30,400
Employee Compensation – GoG 3,912,500
Goods & Services – GoG 20,800
Employee Compensation – IGF 148,000
Goods & Services – IGF 978,500
Capital Expenditure – IGF 27,500
Goods & Services – Partners Fund 472,400
Accumulated Fund
Total 6,530,900

Additional Information:

  1. The hospital previously used modified accrual accounting but switched to IPSAS accrual basis in 2023.
  2. The hospital revalued legacy assets as follows:
    • Motor Vehicles: GH¢50,250,000
    • Buildings: GH¢120,540,000
    • Medical Equipment & Other Equipment: GH¢31,500,000
    • Land: GH¢15,000,000
  3. Gavi supported the hospital with GH¢200,000,000 in 2023, but 20% was allocated for Q1 of 2024. The Global Fund committed GH¢250,000,000, but only GH¢200,000,000 was received.
  4. NHIA rejected 10% of the hospital’s total claims of GH¢100,300,000.
  5. Parliament approved a write-off of GH¢20,225,000 for unpaid hospital services.
  6. The capital expenditure consists of:
    • Medical Equipment: GH¢19,236,000
    • Furniture & Fittings: GH¢8,264,000
  7. Depreciation Policy (Straight-Line Basis):
    • Building: 5%
    • Motor Vehicle: 20%
    • Medical Equipment: 10%
    • Furniture & Fitting: 25%
  8. Year-end inventory values:
Inventory Type Cost (GH¢000) Replacement Cost (GH¢000) Net Realisable Value (GH¢000)
Medicines (for resale) 146,800 176,100 132,100
Medical Consumables (For use on clients) 29,400 33,800 30,800
Office Consumables 19,600 29,400 18,600

Required:

In compliance with IPSAS, the PFM Act, and the Government of Ghana Chart of Accounts, prepare:
a) A Statement of Financial Performance for Paja Teaching Hospital for the year ended 31 December 2023.

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PSAF – Nov 2015 – L2 – Q4 – Public Sector Financial Statements

Prepare the financial statements of Egbin Electricity Board for 2014, including statement of financial performance and position.

The following information has been extracted from the books of Egbin Electricity Board, a public sector-owned electricity generating company, for the year ended December 31, 2014:

Item N’000
Accumulated Depreciation, January 1, 2014 45,224
Sale of Electricity 114,392
Purchase of Electricity 95,784
Meter reading, billing, and collection 1,624
Non-Current Assets Expenditure 84,102
Debtors for electricity consumption 12,006
Training and welfare 692
Stock and work-in-progress 1,234
Rents, Rates, and Insurance 2,126
Electricity Estimated unread consumption 7,222
Administration and General Expenses 1,476
Electricity Council Grant 21,556
Preparation of Electricity Council’s Expenses 362
Bank Balance and Cash 1,284
Depreciation for the year 3,634
Hire purchase and deferred payment 2,672
Interest and Financing Expenses 2,434
Creditors and accrued liabilities 13,926
Profit on contracting and sale of appliance poles 534
Reserves 23,116
Rental of Meters Application 556
Distribution cost 4,476
Customer Service 1,810

Required:

Prepare in vertical form the Statement of Financial Performance and Statement of Financial Position for Egbin Electricity Board for the year ended December 31, 2014.

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PSAF – May 2017 – L2 – Q4a – Preparation and presentation of financial statements for local government

This question requires the preparation of a Statement of Financial Performance and a Statement of Financial Position for a Municipal Assembly, along with detailed workings.

The Trial Balance was extracted from the books of Bokom Municipal Assembly (BMA) as at 31st December 2015.

Debit GH¢’000 Credit GH¢’000
Property rate 450 Sundry payables 60
Basic rates 200 Short term loans 120
Special rates 50 Deposits 100
Lorry park fees 40 Accumulated Fund 43
Marriage and divorce registration 10
Building permits 110
Penalties 80
Market toll 620
Share of District Assembly Common Fund 980
District Development Facility 350
Compensation for employees 1,000
Herbalist licenses 20
Hawkers licenses 15
Other licenses 12
Royalties 50
Share of stool land revenue 150
Market Store rent 70
Other rentals 40
Interest on investment 10
Gains from business 30
Established post 1,080
Non-established post 700
Goods and services 950
Interest expense 20
Social benefits 180
Other expenditure 260
Bank and Cash 40
Advances and loans 80
Investment 100
Property, Plant, and equipment 1,200
4,610 4,610

Additional Information:

  1. Revenues are classified as follows: Rate, Land Revenue, Fees and Fines, Licenses, Rent income, investment income, and Grants.
  2. The expenditure classification should comply with the harmonized Chart of Accounts.
  3. Consumption of fixed capital for the year is computed as GH¢260,000.

Required:

a) Prepare:

i)  A Statement of Financial Performance for the year ended 31st December 2015.

ii) A Statement of Financial Position as at 31st December 2015. (Please show all workings clearly). (16 marks)

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PSAF – May 2016 – L2 – Q1 – Preparation and presentation of financial statements for central government

Prepare a statement of financial performance and a statement of financial position using IPSAS for the Department of Aviation Affairs.

Stated below are the balances extracted from the books of the Department of Aviation Affairs for the year ended 31st December 2014.

Account Description Amount (GH¢000)
Taxes 2,570.00
Wages 1,000.00
Fees, fines, licenses, penalties 104.00
Grants and other transfer payments 120.00
Finance costs 52.00
Supplies and consumables 170.00
Transfers from other government entities 250.00
Revenue from exchange transactions 60.00
Depreciation and amortization expense 66.00
Other revenue 150.00
Impairment of property, plant, and equipment 46.00
Other expenses 70.00
Cash and cash equivalents 255.00
Receivables 80.00
Investments (short-term) 45.00
Prepayments 47.00
Inventories 75.00
Intangible assets 190.00
Land and buildings 1,044.00
Payables (short-term) 1,420.00
Other non-financial assets 15,000.00
Investments (Long-term) 170.00
Receivables (Medium-term) 851.00
Short-term borrowings 700.00
Provisions (Current) 45.00
Superannuation 104.00
Payables (Medium-term) 240.00
Borrowings (Long-term) 665.00
Provisions (Long-term) 82.00
Employee Benefits (Medium-term) 150.00
Other non-financial assets 200.00
Current portion of borrowings 55.00
Employee Benefits (Short-term) 74.00
Capital contributed by other Government entities 194.00
Reserves 850.00

Required:
Use the International Public Sector Accounting Standards (IPSAS) to prepare a statement of financial performance for the year ended 31st December 2014, and a statement of financial position for the year ended 31st December 2014, including Net Assets / Equity.

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PSAF – Mar 2023 – L2 – Q2a – Preparation and presentation of financial statements for local government

Preparation of a Statement of Financial Performance for Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.

The following Trial Balance is the financial details of Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.

Additional Information:

  1. It is the policy of the Assembly to adopt Accrual Basis in preparing its Financial Statements in compliance with Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378 and the International Public Sector Accounting Standards (IPSAS) and Local Governance Act 2016, (Act 936).
  2. Office consumables in respect of stationery and other items bought for GH¢1,800,000 remained unused during the year. The current replacement cost of the inventories is GH¢1,550,000. Meanwhile, the net realizable value of the inventories is estimated at GH¢1,400,000. No market exists for unused office consumables and other items.
  3. Property Rates received in respect of the 2022 financial year amounted to GH¢2,050,000.
  4. Salaries outstanding during the year amounted to GH¢750,000, and other expenses amounting to GH¢1,105,000 paid in respect of the 2022 financial year.
  5. Consumption of fixed assets is charged on a straight-line basis for the year as follows:
    • Motor vehicles: 10 years
    • Furniture, Fixtures & Fittings: 5 years
    • Building and Structures: 50 years
  6. Included in the Work in Progress is an amount of GH¢2,000,000 relating to a Building that was completed, commissioned, and put to use on 5 July 2021, after an additional amount of GH¢800,000 was spent to complete the pavement aspect of the building. This expenditure has not yet been paid.
  7. Interest on Loans to staff is at the rate of 15% per annum and interest on long-term Loans is at the rate of 10% per annum.

Required:

a) Prepare a Statement of Financial Performance for Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.
(9 marks)

b) Prepare a Statement of Financial Position for Nsuta-Appiah Krom Municipal Assembly as at 31 December 2021.
(9 marks)

c) State TWO (2) Accounting Policies adopted and applied in preparing the financial statements.
(2 marks)

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PSAF – Mar 2025 – L2 – Q1- Preparation and presentation of financial statements for covered entities

Prepare the Statement of Financial Performance for Hamile Teaching Hospital for 2023 per IPSAS and related regulations.

The Trial Balance below relates to Hamile Teaching Hospital, a public hospital.

Trial Balance for the year ended 31 December 2023
Debit Credit
GHc’000 GHc’000
Government subvention 100,750
Out-patient services fees 35,000
In-patient services fees 40,000
Development Partner grants (ii) 16,000
Established position salaries 62,000
Casual Labour 5,600
Contract appointment (local and foreign) 1,400
Limited engagements 200
Rent (iii) 500 150
Insurance 340
Consultancy services 120
Conferences, workshops and training 4,500
Purchase of drugs 60,000
Purchase of medical consumables 80,000
Office expenses 20,000
Repairs and maintenance 6,000
Interest on loan 10,000
Pharmacy sales 180,000
Diagnostic 85,000
Mortuary Services 9,400
Cafeteria and Canteen 4,650
Extension services 14,500
Furniture and office equipment (iv) 200,000 40,000
Medical equipment & accessories (iv & v) 420,000 120,000
Motor vehicles (iv) 120,000 20,000
Land and buildings (iv) 300,000 70,000
Bank and Cash 30,000
Receivable from National Health Insurance Scheme (vi) 65,000
Receivable from patients 15,000
Payables 26,000
Loan from foreign Institution (2028) (vii) 350,000
Inventory of drugs 22,000
Inventory of medical consumables 12,000
Accumulated Fund 336,210
Other expenses 13,000
1,447,660 1,447,660

Additional Information:
i) The hospital prepares its financial statements in accordance with the International Public Sector Accounting Standards (IPSAS), the Public Financial Management Act 2016, (Act 921), the Public Financial Management Regulation 2019, L.I 2378, and the current Chart of Accounts of the Government of Ghana.
ii) The Development Partner grants received from the Health Care Fund, an international organization that provides free medical care to the rural poor and vulnerable individuals, are typically unconditional. However, 40% of this year’s grant is subject to certain conditions, which had not been met as of December 31, 2023.
iii) Rent received in advance during the year amounted to GH¢20,000 while rent owed by the hospital for the year amounts to GH¢300,000.
iv) The hospital charges consumption of fixed assets on straight line basis as follows

Non-current Assets Estimated Useful Life
Furniture and office equipment 5 years
Medical equipment and accessories 4 years
Motor vehicles 5 years
Buildings 10 years

Land constitutes 30% of the amount of land and building shown in the trial balance.
v) A medical equipment valued at GH¢20,000,000 which is included in the medical equipment and accessories listed on the trial balance, was completely damaged due to consistent power fluctuations. The value of this equipment should be written off.
vi) The hospital submitted a claim of GH¢11,000,000 to the National Health Insurance Scheme for services provided to patients in the last quarter of 2023, but the payment has not yet been received. This transaction has not yet been reflected in the trial balance.
vii) The hospital took a loan of $100,000,000 from Health World Bank on January 1, 2023, when the exchange rate was $1 to GH¢3.50. The exchange rate on 31 December 2023 is $1 to GH¢5.
viii) The inventories on 31 December 2023 were as follows:

Inventory type Cost Net Realizable Value Current Replacement
GHc’000 GHc’000 GHc’000
Drugs 15,000 16,000 14,000
Medical consumables 10,000 11,000 9,000

Required:
Prepare for Hamile Teaching Hospital:
a) Statement of Financial Performance for the year ended 31 December 2023.

b) Statement of Financial Position as of 31 December 2023.

c) Disclosure notes to the financial statements.

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PSAF – Nov 2024 – L2 – Q1a – Financial Statements Preparation

Prepare the Statement of Financial Performance for Paja Teaching Hospital following IPSAS guidelines.

Below is a Trial Balance of Paja Teaching Hospital (PTH) under the Ministry of Health for the year ended 31 December 2023.

Debit (GH¢000) Credit (GH¢000)
Cash and Bank – GoG 3,400
Cash and Bank – IGF 72,200
Cash and Bank – Donor Funds 210,400
Undeposited Cash – IGF 4,000
Petty Cash 100
Investments 2,000
Debtors 661,400
Other Receivables 17,700
Withholding Tax
Trust Funds
Trade Payables
GoG Subsidy – Employee Compensation
GoG Subsidy – Goods & Services
Development Partners Programmes Receipt
Other Non-Operating Income
Medicines & Pharmaceuticals 433,900
Surgical 50,800
Medical 111,400
Investigation 140,900
OPD 238,400
Obstetrics and Gynaecology 135,300
Dental 8,300
Pediatrics 40,300
Ear, Nose & Throat 5,300
Eye Care 7,300
Mortuary 30,000
Ambulance Fees 300
Ophthalmology 3,000
Physiotherapy 3,300
Examination Fees 200
Dialysis 400
Feeding 30,400
Employee Compensation – GoG 3,912,500
Goods & Services – GoG 20,800
Employee Compensation – IGF 148,000
Goods & Services – IGF 978,500
Capital Expenditure – IGF 27,500
Goods & Services – Partners Fund 472,400
Accumulated Fund
Total 6,530,900

Additional Information:

  1. The hospital previously used modified accrual accounting but switched to IPSAS accrual basis in 2023.
  2. The hospital revalued legacy assets as follows:
    • Motor Vehicles: GH¢50,250,000
    • Buildings: GH¢120,540,000
    • Medical Equipment & Other Equipment: GH¢31,500,000
    • Land: GH¢15,000,000
  3. Gavi supported the hospital with GH¢200,000,000 in 2023, but 20% was allocated for Q1 of 2024. The Global Fund committed GH¢250,000,000, but only GH¢200,000,000 was received.
  4. NHIA rejected 10% of the hospital’s total claims of GH¢100,300,000.
  5. Parliament approved a write-off of GH¢20,225,000 for unpaid hospital services.
  6. The capital expenditure consists of:
    • Medical Equipment: GH¢19,236,000
    • Furniture & Fittings: GH¢8,264,000
  7. Depreciation Policy (Straight-Line Basis):
    • Building: 5%
    • Motor Vehicle: 20%
    • Medical Equipment: 10%
    • Furniture & Fitting: 25%
  8. Year-end inventory values:
Inventory Type Cost (GH¢000) Replacement Cost (GH¢000) Net Realisable Value (GH¢000)
Medicines (for resale) 146,800 176,100 132,100
Medical Consumables (For use on clients) 29,400 33,800 30,800
Office Consumables 19,600 29,400 18,600

Required:

In compliance with IPSAS, the PFM Act, and the Government of Ghana Chart of Accounts, prepare:
a) A Statement of Financial Performance for Paja Teaching Hospital for the year ended 31 December 2023.

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PSAF – Nov 2015 – L2 – Q4 – Public Sector Financial Statements

Prepare the financial statements of Egbin Electricity Board for 2014, including statement of financial performance and position.

The following information has been extracted from the books of Egbin Electricity Board, a public sector-owned electricity generating company, for the year ended December 31, 2014:

Item N’000
Accumulated Depreciation, January 1, 2014 45,224
Sale of Electricity 114,392
Purchase of Electricity 95,784
Meter reading, billing, and collection 1,624
Non-Current Assets Expenditure 84,102
Debtors for electricity consumption 12,006
Training and welfare 692
Stock and work-in-progress 1,234
Rents, Rates, and Insurance 2,126
Electricity Estimated unread consumption 7,222
Administration and General Expenses 1,476
Electricity Council Grant 21,556
Preparation of Electricity Council’s Expenses 362
Bank Balance and Cash 1,284
Depreciation for the year 3,634
Hire purchase and deferred payment 2,672
Interest and Financing Expenses 2,434
Creditors and accrued liabilities 13,926
Profit on contracting and sale of appliance poles 534
Reserves 23,116
Rental of Meters Application 556
Distribution cost 4,476
Customer Service 1,810

Required:

Prepare in vertical form the Statement of Financial Performance and Statement of Financial Position for Egbin Electricity Board for the year ended December 31, 2014.

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PSAF – May 2017 – L2 – Q4a – Preparation and presentation of financial statements for local government

This question requires the preparation of a Statement of Financial Performance and a Statement of Financial Position for a Municipal Assembly, along with detailed workings.

The Trial Balance was extracted from the books of Bokom Municipal Assembly (BMA) as at 31st December 2015.

Debit GH¢’000 Credit GH¢’000
Property rate 450 Sundry payables 60
Basic rates 200 Short term loans 120
Special rates 50 Deposits 100
Lorry park fees 40 Accumulated Fund 43
Marriage and divorce registration 10
Building permits 110
Penalties 80
Market toll 620
Share of District Assembly Common Fund 980
District Development Facility 350
Compensation for employees 1,000
Herbalist licenses 20
Hawkers licenses 15
Other licenses 12
Royalties 50
Share of stool land revenue 150
Market Store rent 70
Other rentals 40
Interest on investment 10
Gains from business 30
Established post 1,080
Non-established post 700
Goods and services 950
Interest expense 20
Social benefits 180
Other expenditure 260
Bank and Cash 40
Advances and loans 80
Investment 100
Property, Plant, and equipment 1,200
4,610 4,610

Additional Information:

  1. Revenues are classified as follows: Rate, Land Revenue, Fees and Fines, Licenses, Rent income, investment income, and Grants.
  2. The expenditure classification should comply with the harmonized Chart of Accounts.
  3. Consumption of fixed capital for the year is computed as GH¢260,000.

Required:

a) Prepare:

i)  A Statement of Financial Performance for the year ended 31st December 2015.

ii) A Statement of Financial Position as at 31st December 2015. (Please show all workings clearly). (16 marks)

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PSAF – May 2016 – L2 – Q1 – Preparation and presentation of financial statements for central government

Prepare a statement of financial performance and a statement of financial position using IPSAS for the Department of Aviation Affairs.

Stated below are the balances extracted from the books of the Department of Aviation Affairs for the year ended 31st December 2014.

Account Description Amount (GH¢000)
Taxes 2,570.00
Wages 1,000.00
Fees, fines, licenses, penalties 104.00
Grants and other transfer payments 120.00
Finance costs 52.00
Supplies and consumables 170.00
Transfers from other government entities 250.00
Revenue from exchange transactions 60.00
Depreciation and amortization expense 66.00
Other revenue 150.00
Impairment of property, plant, and equipment 46.00
Other expenses 70.00
Cash and cash equivalents 255.00
Receivables 80.00
Investments (short-term) 45.00
Prepayments 47.00
Inventories 75.00
Intangible assets 190.00
Land and buildings 1,044.00
Payables (short-term) 1,420.00
Other non-financial assets 15,000.00
Investments (Long-term) 170.00
Receivables (Medium-term) 851.00
Short-term borrowings 700.00
Provisions (Current) 45.00
Superannuation 104.00
Payables (Medium-term) 240.00
Borrowings (Long-term) 665.00
Provisions (Long-term) 82.00
Employee Benefits (Medium-term) 150.00
Other non-financial assets 200.00
Current portion of borrowings 55.00
Employee Benefits (Short-term) 74.00
Capital contributed by other Government entities 194.00
Reserves 850.00

Required:
Use the International Public Sector Accounting Standards (IPSAS) to prepare a statement of financial performance for the year ended 31st December 2014, and a statement of financial position for the year ended 31st December 2014, including Net Assets / Equity.

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PSAF – Mar 2023 – L2 – Q2a – Preparation and presentation of financial statements for local government

Preparation of a Statement of Financial Performance for Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.

The following Trial Balance is the financial details of Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.

Additional Information:

  1. It is the policy of the Assembly to adopt Accrual Basis in preparing its Financial Statements in compliance with Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378 and the International Public Sector Accounting Standards (IPSAS) and Local Governance Act 2016, (Act 936).
  2. Office consumables in respect of stationery and other items bought for GH¢1,800,000 remained unused during the year. The current replacement cost of the inventories is GH¢1,550,000. Meanwhile, the net realizable value of the inventories is estimated at GH¢1,400,000. No market exists for unused office consumables and other items.
  3. Property Rates received in respect of the 2022 financial year amounted to GH¢2,050,000.
  4. Salaries outstanding during the year amounted to GH¢750,000, and other expenses amounting to GH¢1,105,000 paid in respect of the 2022 financial year.
  5. Consumption of fixed assets is charged on a straight-line basis for the year as follows:
    • Motor vehicles: 10 years
    • Furniture, Fixtures & Fittings: 5 years
    • Building and Structures: 50 years
  6. Included in the Work in Progress is an amount of GH¢2,000,000 relating to a Building that was completed, commissioned, and put to use on 5 July 2021, after an additional amount of GH¢800,000 was spent to complete the pavement aspect of the building. This expenditure has not yet been paid.
  7. Interest on Loans to staff is at the rate of 15% per annum and interest on long-term Loans is at the rate of 10% per annum.

Required:

a) Prepare a Statement of Financial Performance for Nsuta-Appiah Krom Municipal Assembly for the year ended 31 December 2021.
(9 marks)

b) Prepare a Statement of Financial Position for Nsuta-Appiah Krom Municipal Assembly as at 31 December 2021.
(9 marks)

c) State TWO (2) Accounting Policies adopted and applied in preparing the financial statements.
(2 marks)

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