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    56 views48 pages

    Calculation

    Uploaded by

    Desmond Grasie Zumankyere
    PSAF

    Copyright:

    © All Rights Reserved
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    of 48
    we Me EN ae ER lo da’ Tr aN . a! - \r hi on at ae ESSAY Va gdute 2 . a Bo ea Coe Ene eek, th Yor ae" Yer ae ei Fee 1 INTERVENTION G\ cal Oreo, PUBLIC SECTOR ACCOUNTING 5™ MARCH, 2023 Time allowed elexxNow Reading and planning: 15 minutes Writing: 3 hour ATTEMPT ALL QUESTIONS Do NOT open this paper until instructed by the supervisor. During reading and planning time only the question paper may be annotated. You must NOT write in your answer booklet until instructed by the supervisor, Elexxon Business Consultancy and Financial Training Bleaxon Consultancy and Financial Training: ww.elexxon.com; 0547884068/0201484726 LOCAL GOVERNMENT FINANCIAL STATEMENTS. QUESTION ONE The following details relates to Aboso Municipal Assembly for the year 2022. GHE'000 Dividend Received |G 93,250 Central Government Salaries Je Comet) ers cm 12,000,000. BasicRates A St 370,900 Districts Development Facility ecan kwon =) hers le. 15,000,600 Rent from Land and Building [Gc 6,120,800 Established Posts aw. 1,140,700 Other Expenditure _ £600,000 Non- Established Posts Sir 580,000 ‘Allowances a carne 390,470 Court Fees a See 240,000 Inventory and Consumables — <_< 800,000 Sanitation Fees &G. 370,000 General Cleaning iS 350,000 Common Fund — SS = 2,930,000 Social Benefit — 840300 Equity Investment Acquired — W\O® 420,000 Infrastructure, Plant and Equipment — —\c @ 980,000 WorkInProgress 490,000 LomsReceived Rew Tiana Taps 2,330,000 Interest Expense Eh 200,000 Advances to Staff 7 yf 660,000 Royalties a (Ge 430,000 Consultanciescot SG 470,000 ‘Training and Workshop cost S 275,000 ‘Transport and Travelling cost cs 620,000 ‘Consumption of Fixed Assets 960,000 Special Services = eas 820,000 Utilities =a. £630,000 Page 1 of a5 Market Tolls 870,000 Permit Fees 990,000 Fines and Penalties 330,000 Development Bonds Issued 1,300,000 Hostel License (630,920 Business Income 2,300,600 Chop Bar License 300,400 Proceeds from Sale of Equity 990,320 ‘Accumulated Fund (1/1/2022) 370,600 Herbalist License 530,370 ‘Cash and Cash Equivalent @ (1/1/2022) 12,300,240 Stool Land Revenue 600,000 Lony Park Fees 720,400 ‘Market Store Rent 300,750 Recoveries 194,000 ‘Loan Repayment 143,000 Property Rate 820,900 Additional Information: i) Aboso Municipal Assembly adopts accrual basis of accounting in the preparation of its financial statements. ii) Established Post salaries outstanding as at 31/12/2022 was GH¢180,000,000. iii) Inventory at 31/12/2022 was GH¢170,000,000. Required: Prepare for Aboso Municipal Assembly: a) Statement of financial performance for the year ended 31/12/2022. b) Statement of cash flow for the year ended 31/12/2022. uv Page 2 of 45 QUESTION TWO. Below is the extract from the records of Sepe District Assembly. Trial Balance as at 31 December 2022 _ C GHE000 | GH000 “Travel and transport - 10,000) Seminar and conference - 8,700 Independence Day celebration 5,600 Office consumables 4,100 Inventory of office consumables 1,200 Local Consultancy 300 Limited engagement 1,300. Non-established post salaries 4,400 Allowances for staff. 2,100 ‘Assembly members allowances 950 Foreign travels per diems 500 Foreign travels 1,800 Share of District Assembly Common Fund | 68,000 Share of stool land revenues, 13,000 (Ceded revenues from GRA. 11,250 Basic rates 10,000 Property rates 26,000 Market tolls _ 6,800 Market store fees 9,100 Lorry parks 600 “Advertisements and promotions 7,400 Vehicle licenses 560 Hawkers’ licenses 120 Entertainment licenses 700 Fixed deposit interest 800 Fixed deposit investment 10,000 Motor vehicles 25,000 | _5,000 Furniture and fittings 15,000 [3,000 Premises 36,000 [5,600 Equipment 34,000 | _3,600 Cash and cash equivalent - 5,400 Loans and advances _ 6,200 Revenue receivable 300 Page 3 of a5 ‘Other expenses 1,700 ‘Accumulated surpluses 47,020 District development facility 224,550 | 224.550 Additional Information: i) The Central Government has a Constitutional responsibility to pay all Established Post Salaries of the Assembly from the Consolidated Fund. The Established Post Salaries paid by the Central Government on behalf of the Assembly for 2022 amounted to GH¢64,000,000. This payment has not reflected in the books of Sepe District Assembly, ii) 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 GHe1,050,000. Meanwhile, the Net Realisable value of the inventories is estimated at GH¢1,400,000. iii) Consumption of fixed capital is to be changed as follows: ‘Assets Estimated useful life Motor vehicles S years, Furniture and fittings years Premises 50 years Equipment Si years iv) During the year, the Private Broadcasters Association have given free air to the information service department to promote civic education on election 2022. The estimated cost of the air time was GHC12, 000,000. v)_ Sepe District Assembly could not pay the Blectricity Bill for the last quarter of 2022. This was brought to its attention by the Electricity Company Ltd. of Ghana. The amount involved is GH¢4,000,000. vi) The Government has assigned some young graduates to Sepe District Assembly as part of the Nation Builders Corp programme to support the Assembly in Revenue Mobilisation. The allowances amounting to GH¢2,000,000 due them from Sepe District Assembly for the last month of the year was outstanding, Sepe District Assembly promises to pay them by the end of the Third quarter of 2022. Page 4 of 45, vii) Fixed Deposit attracts interest of 25% per annum and some interest is due as at 31 December 2022, viii) The Assembly took a Loan to purchased equipment at a cost of GHe200,000,000 on 1 January, 2022 and a new equipment valuing GHc100, 000,000 was donated to the Assembly during the ‘year 2022. These pieces of Equipment were assessed to have usefil life of ten years. This has not been accounted for in the trial balance. ix) Extract of the 2022 Budget of the Sepe District Assembly is as follows: Main Budget Revised Budget GH¢"000 GH¢"000 Decentralised transfer 177,000 185,000 Compensation of employees 35,600 74,300 Goods and Services 45,780 35,600 Other expenses, 1,870 1,700 Internally Generated Funds 187,400 102,000 Donations and grants 1,000 1,000 Required: Prepare in accordance with the ZPSAS and the Public Financial Management Act, 2016 (Act 921): a) Statement of Financial Performance for the year ended 31 December 2022. »)_ Statement of Financial Position as at 31 December 2022. ©) Statement of Budget Information in Comparison with Actuals for the year ended 31 December 2022, 4) Notes to the Financial Statements, Pages of 45 QUESTION THREE The following balances was extracted from the books of Eduase Municipal Assembly for the year ended 31% December, 2022 DEBIT | — CREDT GHS GHS [Basic Rate _ 9,121,95 Royalties 61,7653 [Employees Compensation 5,000,6 iReat 7813.4 ines and Fees 4,467.80 [Licenses 10,016,420, Property Rate 57,456,331 ther Levies 224,567 District Development Facility 338,721 Common Fund 171,202 Stool land Revenue 43.33 roceeds from Disposal of Assets 41,500] Investment Income 5.550 unicipal Bond Issued 790,250) [Loans from Prudential Bank 833,524 Prudential Bank Loan repayments 244,150 jond Repayments 287,320 salaries & Wages “Established Positions 2878S Salaries & Wages- Non-Established Posts 718,820) Salary Related Allowances 133,760) jon-Salary Related allowances 228,54 [Gratuities 144,37 [End of Service Benefit (ESB) 100.10) Page 6 of 45 Employer's Pension Contributions 467,650) Materials and Office Consumables 4,169,340} (Utilities. aoe 472,040] {General Cleaning 183,970} entals 150,766 Travel and Transport 1,937,910| ‘epairs and Maintenance 150,817] [Training, Seminar and Conferences 4,425,869 | [Consultancy Expenses 4,001,540} {special Services | ___ 292,280] ther Charges and Fees 3,570,460] [Emergency Services 36,625 [Additions to Infrastructure, Plant & Bquipment 136,239,510) fork In Progress - Constructions and Buildings 20,796,200] Consumption of Fixed assets for the year 5,600,046| rest paid on loans 1,875,781 |Employer social benefits in Cash 1,370,600) [Equity Investments in Companies 3,450, [Cash and cash equivalents (1/1/2022) 39,450,1 Additional Information i, Property Rate outstanding as 31/12/2022 was GHC40,000,000 i, Work in Progress amount of GHC35, 000,000 has been incurred during the period. However, because of liquidity challenges faced by Assembly only GHC28,000,000 has since been paid iii, During the year, the Chiefs and People of the Assembly donated a New Vehicle valued at ‘GH¢400,000 to the Assembly. No record was made in the books Page 7 of a5 Required: a) Prepare a Statement of Financial Performance for Eduase Municipal Assembly for year ended December 31, 2022. b) Prepare a Statement of Cash Flow for Eduase Municipal Assembly for the year ended December 31, 2022. ©) Prepare the Relevant Notes and Schedules to the Financial Statement Page 8 of 45 MINISTRIES DEPARTMENTS AND AGENCIES QUESTION ONE ‘The following Trial Balance relates to Danke State University, a public tertiary educational institution in Ghana, a8 at 31 December, 2022 GH¢'000 GH¢'000 ‘Cash and Bank 264,810] Program Accreditation Cost 508,950 Examination Invigilation Cost 450,000] ‘Sponsorship 7,290 4217510 Proceeds from Sale of Textbooks 98,290] Stationery Inventory (1/1/2022) 98,290 Textbooks Inventory (1/1/2022) 35,550 Purchases of Stationery -261,000[ Purchases of Textbooks 152,740 Mature Entrance Examination Fees 190,280 Graduation Cost/Fees_ 15,580 450,000 Fees Income 3,600,000 61,950 Sale of Admission Vouchers 450,110} Books and Research Allowance 135,600 Established Post Salaries i) 4,452,150] Meeting Sitting Allowance 71,000) Employer's Contribution to Provident Fund 22,550] Non-Established Post Salaries 1,128,240, ‘Exams Seript Marking Cost 78,050) ‘Transcript Fees 24,700] ‘Academic Facility User Fees 7,040,580 Other Facility User Fees (v) 816,010 Property, Plant and Equipment (vil) 13,770,000] 1,105,400 Investment Property (vii) 2,254,500] 716,800] Software (vii) 895,950 Feos Receivables (iv) 421,230] Loans and Advances (iii) 187,200 | Internet Broad Band Cost 5,338,270 | Other Expenses 63,900) Page 9 of a5 ‘Bad debt provision 4,500 Bank Loans 685,000 GoG Subvention 8,646,740) Salary Related Allowances 180,560 Examinations Moderation Cost 226,670 Project Work Supervision Allowance 43,650 Staff Training and Development 2,093,600 Ulty Bis (i) 504,040 Casual labour 250,650 “Applied Research Conference 300,000 Tnterest on Loans 200,000 13% SSF (Employer's contribution) 32,550 Withholding Tax 31,450 Payables 164,550 ‘Accumulated Fund 11,084,700 Basa 570 3addd.570 Additional Information: 4) Itis the policy of the University to prepare Financial Statements on accrual basis in compliance with Public Financial Management Act,2016 (Act 921), Public Financial Management Regulation 2019 (L.12378) and the International Public Sector Accounting Standards (IPSAS), ii) Usility Bills outstanding during the year amounted to GH¢15,500,000 whilst that of Established Post Salaries amounted to GH¢120,000,000. These have been omitted from the trial balance iii) Loans and Advances represent Salary Loan given to some Staff of the University. These loans were granted at a concessionary interest rate of 2%, Provision isto be made for interest on Loans and Advances, iv) The Fees Receivables represents outstanding school fees for 870 students. Out ofthis, 90 students, were expelled from the school for poor academic performance. As a result, it is very unlikely the University would recover the amount of School Fees owed itby the expelled students, This amount constitutes 5% of Fees Receivables. ‘The University from experience also consider that itis very unlikely to recover al the outstanding fees and they intend to set a provision of unrecoverable debt against the remaining school fees at the rate of 7% V) Included in the Other Facility User Fees is hostel fees amounting to GH¢1,050,000 paid in respect ‘of 2022/2023 Academic year. vi) Inventory of Text books as at 31 December 202! amounted to GH¢ 142,500,000 at cost and having 4 Net Realisable value of GHE165,000,000, but its Replacement cost is GH¢78, 000,000. In addition, stationery inventory as at 31 December, 2022 amounted to GH¢17,000,000 and having a Replacement cost of GHE18,000,000 with an estimated Net Realisable Value of GH¢25,000,000. Vii) The University uses Straight Line method of depreciation for Non-Current Assets. Details of Non- Current Assets and their respective useful lives are stated below: ‘Non-Current Assets Useful Life Property, Plant and Machinery 20 years Tnvestment Property 10 years Page 10 of 45 Sivan — Tyan] Required: ) Prepare a Statement of Financial Performance for Danke State University for the year ended 31 December 2022, b) Prepare a Statement of Financial Position for Danke State University as at 31 December, 2022 ©) State FOUR (4) accounting policies applied in preparing the financial statement QUESTION TWO ‘Agogo Municipal Hospital is a Public Hospital established in the Ashanti Region, which serves several communities. Its Trial Balance for the year ended 31 December 2022 is provided below. DR R GHE000 GHE O00 ‘Cash and Cash Equivalent 504,000 Withholding Taxes 180,000 Outpatients 917,000 Tapatients 365,000 Drugs and Medications 657,000 Drugs Purchase 340,000 Inventory of Drags 110,000] Other Service Income 215,790 ‘Ultra Sound Revenue s 232,000 Taboratory Service Fees 458,200 “Travel and Transport 9,000 Seminar and Conferences 80,000 General Cleaning 62,400 Consulting Specialist 25,000 Clinical Consumables 12,000 Contracted Service Expense 15,000 [Established Post Salaries 1,406,400, fasual Labour 102,750 [Extra Duty Allowances 438,500 [Other Allowances 81,000 Stationery Stock 18,000 Purchases of Stationery (63,500 (GoG Subvention 1,503,000) Repairs and Maintenance 70,000 jurgical Fees 120,000] Page 11 of a5 Eye Care Fees 180,000 Rent 664,160 Provision for Undertakings (1/1/2022) 2,700) [Laboratory Equipment 350,000 55,000 Building 1,215,000) 60,750 (tor Vehicles 800,000] 720,000) oftware 10,000 4,000 ixed Deposits 100,000 NHIS Claims Receivables 900,000] [loans and Advances 17,000 Sundry Creditors 144,000 [Ambulance Service Fees 152,000 ental Fees 112,000) ‘Mortuary Fees - 25,000 Bank Loans 150,000 | interest 3,500 linvestment Income (Fixed Deposit) 10,000 ther Expenses Tf 35,800 [Accumulated Surplus 668,250 (Undertaking (Receivables) 30,000 7,198,850) 198,850 Additional information {The hospital's policy is to apply the Accrual Bases of Accounting in preparing its Financial Statements in compliance with the Public Financial Management Act,2016(Act 921), Public Financial Management Regulation 2019 L.1 2378 and the International Public Sector Accounting Standards (IPSAS). ii) The hospital purchased equipment at the cost of GH¢200,000 on 1 April 2022 iii) A new equipment valuing GH¢100,000 was donated to the hospital on 1 July 2022. The equipment was assessed to have a usefil life of ten (10) years. This has not yet been accounted for in the Trial Balance. iv) The Fixed Deposit attracts an interest of 10% per annum. v) Inventory of drugs as at 31 December 2022 amounted to GH¢95,000,000 at cost and had ‘a net realizable value of GH¢1 10,000,000 but its replacement cost is GH¢78,000,000. In addition, stationery stock as at 31 December 2022 cost GH¢28,000,000 and have a replacement cost of GH¢25,000,000 with an estimated net realizable value of (GHE35,000,000. vi) Redundancy pays outstanding as at the end of the year amounted to GH¢25,950,000. vii) Provision for undertaking is estimated at 8%. viii) The hospital currently owes Healer Pharmaceuticals for Drugs amounting to GHE1, 950,000 supplied to the hospital during the years 2022 and 2023 in respect of the following months, Page 12 of aS ‘Months/ years ‘Amount Outstanding GH) November 2022 820,000 December 2022 610,000 January 2023 520,000 Totals 1,250.00) ix) Consumption of Fixed Asset is charged on straight line basis with time apportionment in the year of acquisition ‘Asset Useful life Laboratory Equipment 20 years Building SOyears Motor Vehicles - 10 years Software i Syears Required: Prepare in compliance with the IPSAS and relevant legislations. a) Statement of Financial Performance for the year ended 31 December 2022. b)_ Statement of Financial Position as at 31 December 2022. ©) Notes to the Accotints. QUESTION THREE ‘The following Trial Balance relates to Atonsu State University, a Public Tertiary Educational Institution in Ghana, as at 31/12/2022. Fees Income Resit Registration Fees ‘Admission Forms Establish Post Allowance Consultancy Fees Legal Cost GOG grant ‘Transcript Fees Academic facility user Fees Residential facility user Fees Consultancy Cost Non- Establish Post DR cR GH¢'000 GH¢'000 4,000,000 78,500 300,122 5,312,430 856,670 655,600 25,059 1,540,000 1,360,024 2,266,707 906,683 565,500, 1,253,600 Page 13 of 45 Seminars cost Sponsorship Receivables Payables 22% loan Books and Research Allowance Property, Plant and Equipment Investment Property Software Other Incomes Project Work Supervisory Allowance Cash and Bank Training and Workshop cost Bad debt provision (student fees) Goods and Service Other Expenses Withholding Tax Accumulated Fund Utilities Bills Salaries Subvention, Superannuation End of Service Benefits Stationery Stock Additional information: 300,000 8,100 468,050 150,765 15,300,000 2,505,000 995,500 48,500 294,233 104,000 8,251,735 71,000 360,053 278,500 298,040 399,165, 38,245,900 4,533,414 182,840 8,600 1,006,000 352,000 150,000 211,430 4,940 90,500 11,205,270 9,196,270 38,245,900 i) The University has adopted the Accrual Basis International Public Sector Accounting Standards (IPSAS) as the Basis for the preparation of its financial statements, ii) An NGO has donated a vehicle to the University. The records of the NGO show that the vehicle donated cost GHC80, 000,000, however the fair value of the vehicle is GHCS2, 000,000, with estimated useful life of five years. No records were made in the books of the University. Page 14 of 45 iii) Inventories included in the use of goods and services available at the end of the year were ‘Text books which are held for sale and stationery for consumables. Inventories for use Inventories for sale GHC GHC Historical cost 200,500,000 22,000,000 Replacement coat 157,880,000 15,000,000 Net realisable value 50,000,000 155,254,000 iv) Consultancy cost amounting to GH¢234,500,000 was incurred but not yet paid. ¥) Books and Research Allowance was received from Government during the period amounting to GH¢337,530,000 for disbursement to qualified Lecturers and Administrative staff. vi) Provision is to be made for interest on loans. vii) 65% of the receivables represent an amount of students’ fees outstanding as at 31/12/2022. viii) Provision for doubtful debt is estimated to be 7% of outstanding school fees. ix) Some staffs have sued the University for unlawful dismissal on 15th July, 2022 seeking damages amounting to GHC80,000,000, as at the year end, the case has been heard awaiting judgment. Unfortunately, the judgement shall be given in the favor of the plaintiffs on 20th February, 2023 x) The university uses straight line basis of depreciation for Capital Assets. Capital Assets and their useful lives are detailed out below: Assets Useful Life Plant and Machinery oyears Investment Property 9 years Software 5 years Page 15 of 45 Required: 4) Prepare a Statement of Financial Performance for Atonsu State University for the year ended 31/12/2022. ii) Prepare a Statement of Financial Position as at 31/12/2022, QUESTION FOUR Emem Government Hospital, is « Public Hospital in the Bono Region, which serves several Municipalities, in the Region. Its Trial Balance for the year ended 31* December 2022 is provided below. DEBIT CREDIT GHS"000 ‘GHS"000 ‘Outpatients 196,000 Inpatients 545,000 Drugs and medications 770,000. Drugs purchase 600,000 Inventory of drug 120,000, Other service income 30,000 Ultra Sound 70,000 Laboratory service Fees 120,000 Travel and transport 90,000 Purchases of Stationery 30,000 Seminar and conferences 160,000, General cleaning 20,000 Consulting specialist 100,000, Clinical consumables 320,000 ‘Operational expense 860,000 Established Post Salaries 1,670,000, ‘Casual Labor: 140,000, Extra Duty Allowances 500,000 Other Allowances 200,000 GoG subvention 2,400,000 ‘Surgical Fees 18,000 ‘OPD_ 9,000 Eye care Fees 45,000 Rent 117,000 ‘Accumulated depreciation 1,400,000 PPE at cost 7,000,000 Fixed deposits 60,000 Receivables 50,000 Loans and advances 180.000 Sundry creditors 200,000, ‘Ambulance 44,000 Dental fees 38,000 Page 16 of a5 Mortuary 115,000 Bank and cash 24,000 ‘Bank loans 400,000 Interest ; 40,000 Investment income 7 30 Cither Expenses 30,000 ‘Accumulated surplus 5.65400 120,194,000 120,194,000 ‘Additional information a) ») d) ‘The hospital currently owes Emest Chemist for drugs supplied to the hospital during the year for an amount of GHS 84,000,000 for drugs bought for the year. Arrangement has been made to settle the bills in the third quarter of 2022. Most of the patients are on National Health Insurance Scheme. The hospital made Insurance claim of GHS 70,000,000 for the'Iast quarter of 2032 which has not been received as at 31" December The PPE are Depreciated over 10 years Volunteer specialist from USA was hosted to conduct special operations for the under- privilege patients for free. Their 6 months stay cost the Donor an amount of GHS 240,000,000 which was fully paid. Sixty percent of the cost represents per diems paid to the specialist and the remaining was for goods and services. A Bank Loan of GHS 50,000,000 contracted form CAL Bank in 2021 was recognized as revenue in 2021 Financial Statement. This Loan still remain outstanding as at 31% December, 2022. Inventory of drugs as at 31" December 2022 amounted to GHs 80,000,000 at cost and having a net realizable value of GHc5S0, 000,000, but its replacement cost is Ghe78, 000,000. In addition, stationery stock as at 31° December,2022 cost GHs28,000,000 and having a Replacement cost of GHs25,000,000 with an estimated Net Realisable value of GHe35,000,000. ‘The approved budget extract for 2022 both main budget and supplementary is as follows Page 17 of 45 Internally generated fund Donation GoG subvention Compensation of employees Goods and services Interest Other expenses Required, Main Budget for 2022 GHS, 0000 1,500,000 180,000 3,700,000 2,000,000, 1,200,000 44,000 15,000 ‘Supplementary Budget for 2022 Prepare in compliance with the IPSAS and relevant legislations GHS, 000 500,000 20,000 300,000 500,000 200,000 5,000 a) Statement of Financial Performance for the year ended 31" December 2022 b) Statement of Financial Position as at 31" December 2022 ©) Statement of Budget information in comparison with the actual for the year ended 31" December 2022. 4) Notes to the accounts. CENTRAL GOVERNMENT FINANCIAL STATEMENT. QUESTION ONE Stated below are the balances extracted from the Consolidated Fund of the Republic of Ghana for the year ended 31 December, 2022, Dr, cr GH¢'million | __GH¢'million Cash and Cash Equivalent 10,538 Domestic Debis 15,539 Public Debt Interest 3,459 Taxes paid by Corporations 3,600 Taxes paid by Individuals 4272 Page 18 of 45 Repairs and Maintenance 930 Rentals 9,608 Dividends 1,396 Fertilizer Subsidy 18 Established Position 7,000 Contract Appointment 13 ‘Transfer to School Feeding 554 Counterpart Fund from Development Partners 320 Non-Established Position 727 Subsidies on Petroleum products 21 Emergency Service 135 Materials and Office Consumables 1,437 General Tax on Goods and Services 3,200 Tax on Exports 2,440 Infrastructure 9,960 760 Property, Plant, and Equipment 40,160 840 Investment Propert 9,840 600 Work in Progress 839 Equity and other Investments 2,327 Property Income 476 Petroleum Related Fund 7,010 General Cleaning 1,479 Social Assistance Benefits 773 Other Expenditure 240) ‘Advane: 252 Short Term-Loan 331 Grant 270 Training and Capacity Building 300 Consultaney Expenses 316 Salaries to Secondment staff 84 Receivables 80 Extemal Debt 51,974 Other Payables 6,340 | Supplier Payables 77 ‘Accumulated fund a 10,189 i 102,722 102.722 Page 19 of a5, Additional informatioi i, Itis the policy of the Controller and Accountant General to adopt Accrual Basis in preparing the Public Accounts of the Consolidated Fund in compliance with Public Financial Management Act, 2016(Act 921), Public Financial Management Regulation 2019 (LI 2378) and the Intemational Public Sector Accounting Standards (IPSAS). ii, During the year, staff of Controller and Accountant General benefited from an IPSAS centfication training programme fully funded by the Swiss govemment. The fair value of these services amounted to GH¢18 million. This transaction has not been recorded in the Trial Balance. iii) Some multilateral partners have extended Debt Forgiveness Policy to the Government which has resulted in external debt amounting to GH¢3 billion being written off during the year. However, this transaction has not been reflected in the books of aecounts. iv) The Grant shown in the trial balance as revenue relates to Project Grant which Government has applied from African Development Bank amounting to $56 million but the grant received in the Trial Balance represents part of the expected grant, The Minister of Finance and Controller and Accountant General have provided enough evidence indicating that Government will fulfil all the conditions that merit the full release of the Grant to the State and it is highly probable that the remaining Grant will be released. The exchange rate as at the balance sheet date ‘was GH¢6 to $1 ¥) Consumption of Non-Current Assets is charged on Straight reat as follows: Basis for the ‘Asset Useful life Property, Plant, and Equipment 20 years Tnvestment Property 40 years Infrastructure 30 years vi) On 1 September, 2021, GH¢S billion was spent in acquiring Motor Vehicle to boost Government project, However, these transactions were included in the accounts as Goods and Service in the year 2021. This error has since not been rectified Require Prepare in a form suitable for publication: a) Statement of Financial Performance for the year ended 31 December 2022. ) Statement of Financial Position as at 31 December, 2022, ©) Notes to the accounts. Page 20 of a5 QUESTION TWO Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December, 2022. DR cR Gii¢ million | GH million Cash and Bank 61,350, Established Post Salaries ae 13,524 Non-Established Post Salaries 4,016 Communications Service Tax 5,144 PAYE 6,940 Non-Tax Revenues 2,312 Travel and Transport 468 Administration Cost 6,704 Conferences and Seminars 2,510 Foreign Travel Cost_ 1,490 Stationery Inventories 20 Stationery Purchased 20 Vehicles Income Tax 2,316 ‘Corporate Tax 4,626 Grants. 1,150 2,516 Customs and Excise, Duties 1,286 ‘Subsidies for Consumption 1,282 | | Subsidies for Production 722 Value Added Tax 7.716 Social Benefits 760 State Protocol 100 Allowance 300 Domestic Debt Interest 2,906 Extemal Debt Interest 3,482 Motor Vehicle 4,800 | 1,920 Equipment 8,400 1,680 Computers 18,400 5,240 Building 5,000 ‘Work in Progress 400 ‘Equity and Security Investment 1,960 Loans and Advances 1,120 Gold and Other Reserves 1,620 Judgement Debt 280 Page 21 of 45 Treasury Bills 22,240 Domestic Debt 26,924 Payables 34,844 External Debt 45,726 ‘Trust Fund and Deposits 4,470 (Other Expenditure 1,800 Rent Receivable 1,600 ‘Accumulated Fund 29,516 175.900 175,900 Additional information: i) It is the policy of Controller and Accountant General to use Accrual Basis of Accounting in preparing the Public Accounts of the Consolidated Fund financial statements in compliance with Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.1 2378 and the International Public Sector Accounting Standards (IPSAS). ii) Inventory in respect of stationery outstanding as at 31 December, 2022 cost GH¢18 million and has a current Replacement Cost of GH¢12 million. Meanwhile, the Net Realisable value of the Inventories is estimated at GH¢14 million. No market exists for unused inventories. iii) An Established Post Salary in arrears as a result of salary increment in the fourth quarter of 2022 was GH¢56 million and Public Debt Interest outstanding as at 31 December, 2022 amounts to GH¢ 14 million. iv) Consumption of Fixed Capital is charged on Straight Line Basis for the year as follows: Asset Useful life Motor vehicle S years Equipment 10 years Computers 5 years Building 50 years v) The Multilateral Partners have extended their Debt Forgiveness policy to the Government which has resulted in the Extemal Debt write off amounting to GH¢4 billion in the year. However, this transaction has not been accounted for in the books. vi) In the year 2021, GH¢8 billion was spent in acquiring Equipment to boast Government project, however, these transactions were recognised in the accounts as Goods and Services Expenditure in the year 2021. This error has since not been rectified. Page 22 of 45 Required: Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS: a) Statement of Financial Performance for the year ended 31 December 2022. ) Statement of Financial Position as at 31 December, 2022. QUESTION THREE Stated below are the balances extracted from Consolidated Fund of the Republic of Ghana for the year ended 31st December, 2022. Dr or ‘Gug 000 | GHE ‘000 Cash and Cash Equivalent 16,600,250. 15% Loan Note (Domestic Debt) — 3,474 430 Extemal Debt [nterest 324,300 “Taxes paid by Corporations 16,085,530. “Taxes paid by Individuals 16,926,230 Repairs and Maintenance 7,163,200, Rentals 12,010,500 | Public Debt Interest Arrears 1,745,600, ‘Subsidies, on utilities 23,530 Established Position 8,766,800 Staff Compensation Acerued 4,189,040 “Transfer to Schoo! Feeding 3,561 ‘Other Income. 11,985,330 ‘Non-Established Position 908,752 Subsidies on Petroleum products 26,400 Cost of Purchases for use 2,694,606, ‘Cost of Purchases for sale 1,796,404 General Tax on Goods and Services 15,586,130 “Tax on Exports - 3,050,000 Tnfrastructure 12,450,000 950,000 Plant and Equipment ‘50,200,500 | 1,050,000 [Tnyestment Property 12,300,000. "750,550 ‘Work in Progress — 1,048,950, | Bquity and other investments _ 2,909,870 Property income. 12,180,290, Accumulated fund 12,681,300, ‘Revenue from fines, penalties and forfeits 1,263,500 General Cleaning 1,849,600, LEAP Program Cost 966,250, ‘Other Expenditure 714,900 Advances 3,161,877 Project Grant 377,200 “Training, Seminar and Conference Cost 1,000,970, Page 23 of aS Consultancy Expenses 3145500 ‘Probation. 105,250. Receivables 100,170 Extemal Debt 2,468,000 Domestic Debis Interest 706.100 Deposits and Other Trust Monies 5581820 Withholding Tax, 2,812,030 Suppliers 96.260 | 1a7.6s8240 | 127. ask-240 Additional Information: i, It is the policy of Controller and Accountant General to Adopt Accrual Basis of preparing the Public Accounts of the Consolidated Fund in compliance with Public Financial Management Act,2016(Act 921), Public Financial Management Regulation 2019 L.12378 and the International Public Sector Accounting Standards (IPSAS). ii, During the year, Trade Union Congress successfully negotiated with the Goverament for wages and salaries increment. Government determined to respond positively to them. This resulted in accumulated amears of GH¢2,140,000,000 to be settled in 31/10/2022. iii, Inventories included in use of goods and services available at the end of the year were as follows: Inventories for use | Inventories for sale ‘GH¢°000 GH¢"000 Cost 257,800 300,350 Replacement Cost. 350,880 288,500 Net Realisable Value. 250,770 305,200 iv. vi During the year, Government received relief in a form of Ambulance from UN to combat the Covid-19 pandemic. These Ambulances have a total fair value of GH 550,250,000 and an estimated useful life of 10 years. In 2021 fiscal year, the Government of Ghana contracted a loan from World Bank amounting to GH¢6 million. This amount was wrongly recognized as revenue in 2021 financial statement. However, this loan is still outstanding. Consumption of fixed capital is charged on straight line basis for the year as follows: Asset Useful life Plant and Equipment 0 years Investment Property 15 years Infrastructure 30 years Page 24 of 45 (All figures to the nearest whole number) Required: Prepare in a form suitable for publication: a) Statement of Financial Performance for the year ended 31 December 2022. b) Statement of Financial Position as at 31st December, 2022. ©) Notes to the accounts. QUESTION FOUR Below are the balances of the Consolidated Fund for the year ended 31° December, 2022 DEBIT | CREDIT GS Gas) [Tax paid by Individuals 57,456,330 [Tax Paid by Other Businesses 61,765,3 iscellaneous Taxes for individuals and Other Businesses 5,000, General Taxes on Goods and Services 7,813,401 Excises 4,467.80 {Customs and Other Import Duties 756,42 [raxes on Exports, 9,121,951 Levies ___ 224,561] Programme & Project Grants 338,729 roperty Income Taxes 171,207 jevenue from Sale of Goods and Services 43.33 ines, Penalties and Forfeiture 41,500] Miscellaneous Non-Tax Revenue 5.550] [Bilateral Loans Received __ | 360,000] [Multilateral Loans Received 430.250] Loans from External Commercial Institutions 789,520 lLoan from Domestic Commercial Institutions 44,000] [Proceeds from sale of shares in Private Companies 9,260,0 [Bilateral Loan repayments 133,000 [Multitateral Loan repayments 111,150 ixtemnal Commercial Institutional loan repayments, 167,520 jomestic Commercial Institutional loan repavments 117,800 salaries & Wages -Established Positions 2,878,500 Salaries & Wages- Non-Established Posts 718,820 Salary related allowances 133,760 Page 25 of a5 jon-Salary related allowances 228.540} [Gratuities 144,371 [End of Service Benefit (BSB) 100,11 [Employer's Pension Contributions 467,654 aterils end Office Consumables 4,169,340, Utilities 472,04 [General Cleaning 183,97 ventals 150,71 [Travel and Transport 1,937,91 Repairs and Maintenance 150,817} [fraining, Seminar and Conferences 4,425,869, (Consultancy Expenses 4,001,549 Bpecial Services. 292,280, [ther Changes and Fees 3,570,460) [Emergency Services 36,625] \Additions to Infrastructure, Plant & Equipment 136,239,511 |Work In Progress - Constructions and Buildings 20,796,201 (Consumption of Fixed assets for the year 3,500,04 [interest paid on domestic loans $88,555, Interest paid on extemal loans 987,226 Subsidies on Utility. 1,438,200, Bubsidies on Petroleum Products 922,44 Employer ‘social benefits in Cash_ 1,370.6 Equity Investments in. ‘Companies & Public 3,450, ish and cash equivalents (1/1/2022) 37,089.48 Page 26 of a5 Additional Information i) Direct Taxes Outstanding as 31/12/2022 was GHC40,000,000. ii) Corporation Tax amounting to GHC400,000 was paid in advance as at 31/12/2022. iii) Work in Progress amount of GHC35, 000,000 has been incurred during the period. However, because of liquidity challenges faced by Government only GHC28,000,000 has since been paid. iv) T-VET, a multinational company with branches in several countries including Ghana paid a Property Income taxes for two (2) years at an amount of GHC30,000. This amount is included in the Trial Balance. ¥) Government Received Donation from USA Government in the form of Motor vehicle which value GHC358,000 with a useful life 1Oyears. This has not been accounted for in the Trial Balance. Required: a) Prepare a Statement of Financial Performance of the Consolidated Fund for the year ended December 31, 2022 b) Prepare a Statement of Cash Flow of the Consolidated Fund for the year ended December 31, 2022. ©) Prepare the relevant Notes and Schedules to the financial statement, Page 27 of 45 BUDGET AND PEFA QUESTIONS QUESTION ONE ‘Below is the Revenue and Expenditure Extract of the Consolidated Fund for the year ended 31 December 2022, Consolidated Fund of Ghana Statement of Financial Performance for the year ended 31 December, 2022 Actual Original Budget GHg'000 GH¢'000 Revenues Tax revenues 270,000 312,000 ‘Non tax revenues 26,700 39,000 Grants and Donations —1.200 10,800. Total revenue 303,900 361,800 Expenditures Compensation of employees 121,500 124,800 Goods and Services 54,000 120,700 Consumption of fixed capital 1,950 - Interest 81,000 82,100 Social benefit cost 1,500 1,800 Subsidies 1,080 1,170 Grants 2,700 2,910 Other expenditure 34,020 32,000 Total expenditure 297.750, 365.480 Net Operating result 6.150 680) Page 28 of 45 Additional information: The Minister for Finance, has presented a mid-year budget review to Parliament that included a supplementary (additional) budget for 2022. The Minister has cited several local and international reasons for the budget, adjustments. The approved supplementary budget is as follows: GHg"000 Compensation of employees 11,500 Goods and services 17,000 Interest 2,500 Social benefit cost 1,500 Subsidies 180 Total expenditure Required: Prepare a Budget Performance Report showing relevant variances and explanation for the possible causes. Page 29 of 45 QUESTION TWO One important pillar in Public Financial Management is accounting and financial reporting, according to the Public Expenditure and Financial Accountability (PEFA) Framework of 2016, The pillar has three indicators with ten dimensions scored using the ‘Weakest Link Method (M1) and Average Method (M2). ‘The information below relates to the scoring of accounting and reporting pillar for Ghana in the 2019-2020 PEFA Report. Pillar (PI-07) Accounting and Financial Reporting Indicators/dimensions | Descriptions ‘Score Indicator 1 (P1-07.1)_| Financial data integrity To be determined Dimensions (M2) ‘Bank account reconciliation D Suspense accounts D ‘Advance accounts A Financial data integrity process c Indicator 2 In-year budget reports To be determined Dimensions (MI) Coverage and comparability of reports B Timing of in-year budget reports c ‘Accuracy of in-budget reports B | Indicator 3 ‘Annual financial reports To be determined Dimensions (MI) Completeness of annual financial report c Submission of reports for extemal audit B ‘Accounting standards D Required: ‘i)Distinguish between the weakest link method and average method of scoring the performance indicators, ii) Compute the score for each of the three indicators using the appropriate method of scoring and interpret your result. iii) Suggest TWO (2) ways the government can improve its performance in indicator 3: Annual financial reports. Page 30 of a5 QUESTION THREE Since the ereation of Atuum District Assembly (ADA) in 2014, inadequate revenue mobilisation has been its major challenge making the Assembly unpopular. The newly appointed District Chief Executive (DCE) is coticemed about the effectiveness of the revenue budget system of the Assembly. Below is the extract of the Reventie Budget of the Assembly for the 2022 financial year. Revenue ‘Annual Budget] Actual to March be GHE Gug Licenses 880,000 244,000 Fees and Miscellaneous charges 3,400,000 890,000 Investment income 600,400, 178,000 Property rate 5,400,000 | 1,310,000 Basic Rate 750,000 120,000 Grants and donations, 7,000,000 320,000 The budget allocation over the various items over the quarters is in the ratio of 3:3:2:2. The DCE indicates that the budget reliability measures of Public Expenditure and Financial Accountability (PEFA) are ideal for assessing the budget performance of the ‘Assembly. In the framework, the following interpretation is given to budget outruns: + Outtum/variance not greater than 5% is scored as A, indicating very good budget reliability + Outtum higher than 5% but not exceeding 10% is scored B, indicating good budget reliability. + Outtum higher than 10% but not exceeding 15% is scored C, indicating average budget reliability. + Outtum higher than 15% is scored as D, indicating poor budget reliability. Note that each revenue item is treated as an indicator under the PEPA framework, Required: i) As the Budget Officer, prepare the statement of budget performance for the first quarter of the 2022 financial year, indicating clearly the outturn percentage and the respective scores. ii) Write a report to the DCE on the budget performance of the Assembly and suggest ways of improving the budget reliability of the Assembly. Page 31 of 45 QUESTION THREE ‘The following details represent statements of Financial Performance for the Consolidated Fund for the year ended 2019 and its Budget. Direct tx Indirect tax. ‘Non tax rev. Less exp, Compensation of employees Goods and services Social benefit Interest, Subsidises Grants ‘Total exp, Surplus You are required to: Actual 50,000 70,000 7,000 15,000 442,000 35,000 18,000 5,300 4,300 2,000 4,000 $8,600 (73,400) Budget 92,300 46,000 10,000 11,000 32,000 19,000 8,200 6,000 9,000 3,000 81,800) Prepare budget out-turn statement for 2019 fiscal year in both absolute amount and in relative terms. Page 32 of 45 INTERPRETATION OF PUBLIC FINANCIAL STATEMEMT ANALYSIS QUESTION ONE Presented below is the Statement of Financial Performance of Bekwai Municipal Assenibly for the year ended 31 December 2022. GH¢'million —GHmillion GH" million 2022 2021 2022 Actual Actual Budget Revenues Decentralized Transfer 16,450 12,400 20,200 IGF 22,200 25,600 34,100 Donation and Grants 1,300 1,900 2,000 ‘Total revenue 39,950 39,900 56,300 Expenditure Compensation for employees 29,800 24,300 25,900 Use of goods and services 10,300 9,860 18,000 Consumption of fixed Asset 240 220 - Interest 19,660 14,550 16,780 Grants 510 430 1,920 ‘Other expenses 1,600 1,430 2.450 Total Expenditure 62.110 30,790 65,050 Net Operation Result (22.160) 10,890) (8.750) Required: 4) Prepare Common Size Statement of Financial Performance for the year ended 31 December 2022. ii) Based on the Common Size Statement of Financial Performance prepared in i) above, write a report analysing the financial performance of Bekwai Municipal Assembly in line with the Recommended Practice Guide 2, Financial Statement Discussion and Analysis. Page 33 of a5 QUESTION TWO a) The financial information below relates to the Consolidated Fund of Ghana. Statement of Financial Position of the Consolidated Fund as at December 31, 2022 Non-Current Assets Property Plant and Equipment Equity investment Total Non-current assets Current Assets ‘Work in progress Receivables Cash and cash equivalent Other assets Total current assets Total assets Funds and Liabilities Accumulated Fund Current Liabilities Payables ‘Trust monies Domestic loans Total Current Liabilities Non-Current Liabilities Domestic loans External loans Total Non-Current Liabilities Total Funds and Liabilities 2021 GH¢'million (111,280) 1,600 2,540 240 15,380, 2022 GH¢’million 5,600 12,000 12.600 2,000 900 2,980 600, 6.480 (111,620) 19,000 2,300 12.500 33.800 43,000 58,900 01,900 24,030 Page 34 of 45 Additional Informatio, i) The total market value of all final goods and services produced domestically in Ghana for 2022 and 2021 fiscal year amounted to GH¢205,100,940,000 and GH¢185,600,400,000 respectively. ii) According to the Statistical Service data, the population of the country is estimated as 25,000,000 in 2022 and 23,900,000 in 2021. Required: 4) From the information above, compute for the two financial years, the following ratios: 0 Gross Debt + Net Debt percentage + Debt per Capita + Debt to Gross Domestic Product ratio + Total Asset to debt + Capital Asset per Capita ii)Based on the ratios computed, write a report discussing and analysing the financial Position of the Consolidated Fund to the Head of a “think tank” of a Civil Society Organisation for Financial Accountability. Page 35 of 45 QUESTION THREE Country X and Country Y are West African Countries that attained independence around the same period, Presented below are the financial statements of the two countries, Statement of Financial Performance for the year ended 31 December 2022 Country X Country Y GH¢ million GH¢ million Revenues Domestic tax 39,675 25,500 International trade tax 27,300 31,995 Non-tax revenue 11,250 19,200 Grants 1,950 1.650 Total revenue 80,175 78.345 Expenditure ‘Compensation for employees 44,700 30,450 Use of goods and services 15,450 21,000 Consumption of fixed capital 360 420 Exchange difference 1,485 900 Interest 29,490 15,690 Subsidies 765 180 Other expenses 2.400 2145 ‘Total Expenditure 94,650 70.785 Net Operation Result (14,475) 1560 Other information: Population 30,000,000 22,500,000 Gross Domestic Product (GH) 217,500,000,000 165,000,000,000 Page 36 of 45 Statement of Financial Position as at 31 December 2022 Country X GH¢ million Non-Current Assets Property, plant and equipment 3,675 Equity investment 12,000 15,625 Current Assets Receivables 10,050 Cash and cash equivalent 2.050 12100 Total Assets 22215 Funds and Liabilities Accumulated Fund (120,300) Current Liabilities Payables 9,300 Trust monies 2,100 Domestic debt 24,000 35.400 Non-current Liabilities Domestic debt 54,000 External debt 63.675, 112.675 7,200 6,150 1,350 4,250 27,000 E 000 Page 37 of a5 ‘Total Fund and Liabilities Required: 32,715 ’) From the information provided, compute for the two countries respectively: + Grant to Total Revenue ratio + Wage Bill to Tax Revenue ratio + Interest to Revenue ratio + Debt to GDP ratio * Capital expenditure per Capita + Wages bill to Total Expenditure ratio 81,450 ii) Based on the result in question, write a report discussing and analysing the Financial Performance and Financial Position of the two countries. Include in your report the limitations of the analysis of the two countries. QUESTION FOUR [The following information is given about two countries in West Africa for 2021 financial year | Statement of Financial Performance for the year ended 31st December 2021 Ghana ‘Nigeria “Annual [Annual Actual Budget Actual Budget $000 $1000 $000 $004 Revenues Tax revenues 7,010,000, 7,350,400 45,000,000 52,000,001 (on tax revenues 800,000 1,200,600, 4,450,000 6,500,001 Grants and Donations 300,200 20,000 1,200,000 1,800,009 otal revenue 8,110,200 $971,000 30,650,000 60,300,000) [expenditures Compensation of employees | 3,855,500 3,307,680, 20,250,000 20,800,000] joods and services 801,700 2,310,600 9,000,000 20,800,000) (Consumption of fixed capital 67,500 zi 325,000 interest 2,939,000 7,940,500 13,500,000 13,000,000 Social benefit cost 45,600 67,000 250,000 300,00 Subsidies 86,000 95,000 180,000 195,00 Page 38 of 45 [Grants 38,000 80,000 450,000 485,00 Dthier expenditure 980,000 1,890,000 3,670,000 62,000,0( [Total expenditure 8,830,300 | 10,690,780 49,625,000 117,580,0 jet Operating result = 720,100__| = _ 1,719,780 1,025,000 = 57,280,004 Page 39 of 45 Statement of Financial Position as at 31st December 2021 Country G Country N Actual Actual Assets $000 1000 Non-Current Assets Property Plant and equipment 100,000,000 550,120,000 Capital work in Progress 2,000,000 7,600,000 Equity investment 50,000,000 120,000,000 ‘Loans receivable o 2,000,000 152,000,000 684,720,000 Current Assets Loan receivable and loans 1,250,000 5,670,000 Tnventory 2,400,500 8,700,000 Cash and Cash equivalent 2,560,000 1,360,000 1,090,500 15,730,000 Total Assets 153,090,500 200,450,000 Fund and Liabilities Accumulated Fund 670,000 800,000 Operating Surplus (720100) 1.025.000 (50,100) 1,825,000 Current Liability Payables 4,340,600 6,225,000 Long term liabilities Domestic Debt 666,000,000 320,700,000 Extemal debt 82,800,000 371,700,000 Total liabilities 153,140,600 698,625,000 ‘Total funds and liabilities 153,090,500 700,450,000 Page 40 of a5 Additional Information i) The Statistical and economic data of the two countries for 2021 is given below: Ghana Nigeria Population 29 million 106 million Gross Domestic Product ($000) 238,000,000 1,890,000,000 ii) All figures of the two countries were originally presented in their respective reporting currencies and have been converted into US Dollar to facilitate analysis. ii) Non tax revenue reported include dividend received from the Goverament Business Enterprises of respective Governments. Dividend income constitutes 50% of the non- tax revenues of country Ghana and 80% of the non-tax revenues of country Nigeria, iii) Include in the Non-Tax Revenue is Annual Budgeting Funding Amount of $160 million and $110 million for country Ghana and country Nigeria respectively iii) The Property, Plant and Equipment balances of Ghana and Nigeria at carrying amount at the beginning of year 2021 were $92, 200,000,000 and $541,600,000,000 respectively. Req a) Compute the following accounting ratios of the two countries respe: i, Percent Tax Outtum, ii, Total Revenue to Gross Domestic Debt iii, Fiscal balance to Gross Domestic product (actual and budget) iv, Interest to Tax Revenue v. Return on equity investment vi, Debt to Gross Domestic Product vii. Primary Fiscal Balance to Gross Domestic Product Page 41 of 4S QUESTION FIVE ‘The following Financial Statement relates to Amansie Central District Assembly. STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31°* DECEMBER, 2022. 2022 2021 Revenue GHC’000 GHC’000 Decentralised Transfer 95,000 80,000 IGF 150,000 145,000 Donations and Grants 50,000 48,000 295,000, 273,000 Expenditure Compensation 20,000 18,000 Goods and Services 25,000 23,500 Social Benefit 10,000 73,800 Interest 5,000 5,500 Consumption of Fixed Assets 2,550 1,755 Other Expenses 72,000 80.000 141,550 128,755 SURPLUS 153.450 144.245 Page 42 of a5 STATEMENT OF FINANCIAL POSITION AS AT 315" DECEMBER, 2022. 2022 GHC'000 NON-CURRENT ASSET Property, Plant and Equipment 395,000 Investment Property 200,000 Financial Asset . 160,000 Intangible Asset 180,500 CURRENT ASSET Inventory, 30,000, Receivables 140,000 TOTAL ASSET 1,476,450 LIABILITIES AND FUND CURRENT LIABILITIES Payables 700,450 Deposit 500,500 NON-CURRENT LIABILITIES 20% Loan note 200,000 Accumulated Fund 15,500. TOTAL LIABILITIES AND FUND 1,476,450. Required: Prepare Common Size Report on 2021 GHC'000 365,880 250,000 165,000 165,900 45,000 150,000 1,492,230 800,230 300,000 i) Statement of Financial Position of Amansie Central District Assembly. ii) Statement of Financial Performance of Amansie Central District Assembly. Page 43 of a5 QUESTION SIX Consolidated Fund of Ghana ‘Statement of Financial Position as at 31 December, 2022 2021 ASSETS GH¢'million GHg'million | GH¢’million — GHg’million Non-Current Asset Property, Plant and 88,191 78,220 Equipment Financial Assets 2.124 27.289 Total Non-Current Assets 115,315 105,509 Current Asset Inventory 3,207 1,903, Cash and Cash Equivalents 16,106 4,007 9.313 5.910 (Current liabilities Payables 12,154 4,581 Deposits and Trust Monies 1054 10,909. Total Current Liabilities 23.208 3,895) | 15.490 420 Net Asset 111.420 105.929 FINANCED BY: ‘Accumulated Fund 20,481 19,312 Non-Current Liabilities Domestic Debt 45,924 44,791 Extemal Debt 45.015 41,826 111.420, 105.929, Required: ’) Prepare Common Size Statement of Financial Position for the year ended 31 December 2022 and 2021 ii) Based on the Common Size Statement of Financial Position prepared in i) above, write a report analysing the financial position in line with the Recommended Practice Guide 2, Financial Statement Discussion and Analysis. Page 44 of 45 QUESTION SIX Presented below is the Statement of Financial Performance of the Consolidated Fund of Ghana, Revenue and Expenditure Statement of the Consolidated Fund for the year ended 31 December, 2022 GH¢' million GH¢’million_ GH¢’million 2022 2021 Actual Actual 2022 Budget Revenues Direct tax 16,450 12,400 20,200 Indirect tax 22,200 25,600 34,100 Non-tax revenue 7,500 5,800 7,000 Grants 1,300 1,900 2,000 Total revenue 47.450 45.200 63,300 Expenditure Compensation for employees 29,800 24,300 25,900 Use of goods and services 10,300 9,860 18,000 Consumption of fixed Asset, 240 220 = Interest 19,660 14,550 16,780 Subsidies 510 430 1,920 Other expenses 1,600 1,430 2,450 Exchange difference 620 400 - ‘Total Expenditure 62,730 51,190 65,050 Net Operation Result 45,280) (5.490) (4.750) Required: Based on a Common Size Statement of Financial Performance, write a report discussing and analysing the financial performance of the Consolidated Fund in line with the Recommended Practice Guide 2, Financial Statement Discussion and Analysis. 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