TOPIC: GOVERNMENT EXPENDITURE AUTHORIZATION, CONTROL & PREPARATION OF VOUCHERS AND TRANSCRIPTS

Transcription

1 ICAN PUBLIC SECTOR ACCOUNTING AND FINANCE SKILLS LEVEL TOPIC: GOVERNMENT EXPENDITURE AUTHORIZATION, CONTROL & PREPARATION OF VOUCHERS AND TRANSCRIPTS WEEK THREE QUESTIONS NOV 2016 Kindly go through chapter 1 in the video lecture before you attempt the questions because the topics have been simplified and analyzed for easy understanding STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 1

2 QUESTION ONE a. Briefly explain the term Expenditure control b. What are the objectives of expenditure control c. Enumerate types of expenditure control you know d. Itemize the revenue control procedures that you know e. Explain Revenue Control and the elements of Revenue Control System. f. The KOSOFE state government of Nigeria voted the sum of N6m for its scholarship fund in its 2015 original approved budget. During the year, the state government disbursed scholarships as follows: Students in Nigerian universities N2.8m Students in Nigerian polytechnics N2.5m Students in other institutions in Nigerian N1m Overseas students N2.4m In the month of July 2015, the state government voted supplementary budget of N3m to augment the scholarship fund. REQUIRED: (i) Write up the following books of accounts in respect of the scholarship vote and fund for KOSOFE state government. STARRY GOLD ACADEMY , , Page 2

3 (ii) Scholarship vote account Scholarship fund Cash book extract Use the balances in the scholarship vote account and scholarship fund to determine the actual expenditure on scholarships by KOSOFE state govt for its 2015 fiscal year QUESTION TWO Financial warrants are vital tools in the efficient implementation of the budget before and after its approval and they are also used in controlling the approved budget. You are required to: i. Mention five warrants used in budget implementation. ii. Explain any three of them. iii. List five of the conditions that accounting officers must satisfy in order to make virement of funds according to financial regulations. STARRY GOLD ACADEMY , , Page 3

4 iv. state the conditions for issuing Provisional general warrant. v. Where the Appropriation Act has not come into operation at the beginning of any year, what statutory provision is made for carrying on the services of Government? QUESTION THREE (a.) What is Adjustment Voucher and what transactions require this voucher? (b.) List three uses of Principal Journal Voucher (c.) The following were discovered by the Accountant-General of Ijora State while cross checking the books of accounts of the state: STARRY GOLD ACADEMY , , Page 4

5 i. On 31 March 2005, a double payment of N85,000 was made to Ondo Plc in respect of maintenance government buildings. The discovery was made in November of the same year. ii. An amount of N75,000 was fraudulently withdrawn from Ijora State Emergency Relief Fund in September 2004 but the fraud was discovered in November iii. The sum of N570,000 initially charged to Motor vehicle Advances account had been abandoned iv. An amount of N2,750,000 a revenue that should have been collected by the government has been abandoned v. An overpayment of N8,000,000 (not fraud) was made in 2004 and charged to CRF but discovered in Required: To journalize the above discoveries and transactions. STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 5

6 QUESTION FOUR (a.) What do you understand by the term Monthly Transcript of accounts? (b.) Explain the steps to be followed when preparing the monthly transcript of accounts of any ministry. (c.) List out TWO statutory documents which should be attached to the transcript to the office of the Accountant-General of the Federal Republic of Nigeria. (d.) Mention any TWO types of Transcripts you know. STARRY GOLD ACADEMY , , Page 6

7 (e.) The following balances were extracted from the Analysis book of the ministry of Foreign Affairs of the Federal republic of Naija for the month of June 2005: Receipts Description =N= 000 Heads Sub 2 1 Company income tax 17 4 Sales of 4004 housing estate 2 7 Stamp duties and penalties 405, , , Sales tax 28, Pre-operational levies of companies 18,095.4 STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 7

8 17 1 Refund of over payments 4, Petroleum profit tax 2,297, Sundries 25, Head Below the line receipts: 6910 Advances 82, Deposits 72, Payments Head Sub Description =N= Contribution to foreign bodies 19,500 STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 8

9 68 1 Personnel cost 1,201, Utility services 12, Travel and transport Contribution to foreign bodies Training & staff development 68 7 Maintenance of vehicle Entertainment & hospitality 68 6 Maintenance of office furniture 369, , , , ,180 3, Grants, 82,500 STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 9

10 contributions subventions 68 8 Consultancy services Miscellaneous expenses Motor vehicle advance Head Below the line payments & 7, , , Advances 46, Deposits 33,375 The balance brought forward from May 2005 was N150, STARRY GOLD ACADEMY , , info@starrygoldacademy.com, Page 10

11 You are required to prepare the monthly transcript of the ministry for the month of June 2005 STARRY GOLD ACADEMY , , Page 11