Rift Valley University

Department of accounting and finance

Accounting for public sector and civil societies group assignment
Mark: 20% Due date: November 24-31, 2021
General directions
 All questions should be endeavoured by all groups
 Group size 5 members
 Submission after due date result zero mark
 Marking criteria:
 Cover page and Table of content
 Introduction
 Body of the assignment
 Short summary
 Reference

Discussion questions

1. Write and discus the difference between Government & NFP entities based on the following point
of comparison:
a. Organizational objectives
b. Operational focus
c. Sources of Financial Resources
d. Accounting and Financial Reporting
e. Evaluation of Performance and Operating Results
f. Regulation and Control
2. Discuss about thirteen principles of governmental Accounting.
3. Select and discus about accounting procedures of governmental organisation those counterparts
with the following fund types.
a. General fund
b. Special revenue fund
c. Capital project fund
d. Internal service fund
e. Enterprise fund
f. Pension trust fund
4. IPSAS versus IFRS
5. Discuss about the following types of ‘IPSAS’
a. The Conceptual Framework for Public Sector Accounting [The IPSASB]
b. Impairment of Non-Cash-Generating Assets [IPSAS 21]
c. Disclosure of Financial Information about the General Government Sector [IPSAS 22]
d. Revenue from Non-Exchange Transactions (Taxes and Transfers) [IPSAS 23]
e. Presentation of Budget Information in Financial Statements [IPSAS 24]

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Work out question
Assume that on July 1, year 6, The town council of the town of X authorized the establishment of a
special Revenue Fund- its first such fund- to account for Special Assessment against certain residents of
the neighboring village of Y. Because the property tax revenue of the town of X, which among other
services financed street cleaning and street light maintenance for residents of the town only, could not be
used for such services elsewhere, the town council authorized special assessment to finance comparable
services for the requesting residents of the village of Y. the town council adopted a budget for the
special revenue fund for the year ending June 30 year 7, providing for estimated revenues (from the
special Assessments) of 800,000 and appropriations for reimbursement to the General fund for
expenditures made by that fund for the services provided to the village of Y residents) of 75,000.

Following are additional transactions or events of the town of X special revenue fund for the year ending
June 30 year 7.
a. If special Assessments tax totaling 820,000 were levied which are to be paid in full in
Sixty days
b.Cash Receipts from Special Assessment Taxes of 820,000 birr were collected in full.
c. Of the cash receipts, 630,000 was invested in Treasury bills with face amount of
650,000. The treasury bills mature on June 30 year 7 and were redeemed in full on
that date
d.Billings from the town of X General fund, requesting reimbursement of expenditures of that fund,
totaled 760,000; of that amount, 620,000 was paid to the General Fund by
June 30, year 7.
e. On June 30, year 7, the town council of the town of x designated the fund balance
of the Special revenue fund(80,000) for reimbursement of the General Fund during
the year ending June 30, year 8.
Instruction
i. Record the adopted budget
ii. Record special assessments billed
iii. Record collection of special assessment tax in full during the year
iv. Record acquisition of 65,000 face amounts of treasury bills
v. Record receipts of cash for matured U.S treasury bills.
vi. Record billings from general fund for reimbursement of expenditures for street cleaning and
street light maintenance for residents of the village of Y
vii. Records payments of general fund during the year.

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viii. Designate the entire fund balance for reimbursement of General Fund during the year ending
June 30 year 8.
ix. Prepare Closing Entries
x. Prepare Statement of Revenues, Expenditures and Changes in Fund Balance and balance sheet