DEPARTMENT OF ACCOUNTING

FACULTY OF MANAGEMENT SCIENCES

KADUNA STATE UNIVERSITY, KADUNA
PROGRAM: UNDERGRADUATE IN ACCOUNTING (Bsc. Acc)
COURSE: ACSCE 312 (PUBLIC SECTOR ACCOUNTING AND REPORTING)
COURSE: 3 UNITS
SEMESTER: SECOND (2ND)
MODULE V: TREASURY FINAL ACCOUNTS

GROUP 5

1 JACENTA OKOH KASU/SCE/20/ACC/2012

2 AMINA ISA KASU/SCE/19/ACC/1009

ABDULKADIR
3 ISIYAKU UMAR KASU/SCE/20/ACC/2027

4 HARUNA TIJJANI UMAR KASU/SCE/19/ACC/1021

5 ADAMU YAHAYA KASU/SCE/21/ACC/3001

6 SHIMKYANY P. HOSEA KASU/SCE/19/ACC/1023

7 MARYAM MUHAMMAD KASU/SCE/20/ACC/2028

AHMAD
8 TABITHA PHLIP KASU/SCE/19/ACC/1002

9 ADEBAYO AKEEM KASU/SCE/20/ACC/2014

10 A’SMA’U UMAR GADO KASU/SCE/20/ACC/2006

INTRODUCTION

The Federal Treasury Department plays a crucial role in the financial management of a
country’s government. It is responsible for overseeing the collection, custody, and
disbursement of funds, ensuring the effective and efficient use of the nation’s financial
resources. In addition to these responsibilities, the department also plays a vital role in the
preparation of the Treasury final accounts.

The Treasury final accounts refer to the financial statements that are prepared at the end of a
fiscal year. These statements provide a comprehensive overview of the government’s
financial activities, including revenue, expenditures, assets, liabilities, and changes in equity.
They serve as a key tool for assessing the financial health and performance of the
government, enabling transparency and accountability in financial reporting.

The preparation of Treasury final accounts involves several key steps. The Federal Treasury
Department works closely with various government agencies and departments to gather
financial data and transactions for the relevant period. This includes income and expenditure
records, balance sheets, cash flow statements, and other relevant financial information.

Once the necessary data has been collected, the Treasury Department analyzes and organizes
it in accordance with applicable accounting standards and government regulations. They
ensure that all financial information is accurate, complete, and compliant with established
guidelines. Any discrepancies or errors are identified and reconciled, ensuring the integrity of
the final accounts.

The functions of the Final Accounts Unit of the Treasury Department and the various
financial statements they prepare will be discussed.

THE TREASURY DEPARTMENT

The office of the Accountant –General is responsible for the preparation of the final accounts
at both the federal and state levels. The office is made up of eight departments:

1. Finance and Administration

2. Personnel
3. Administration
4. Treasury
5. Internal Audit
6. Ministry of Finance Incorporated
7. Treasury Academy
8. Inspectorate.

1. Finance and Administration: This department handles the financial management activities
of the organization as a whole. They are responsible for budgeting, financial reporting,
payroll, accounts payable and receivable, and general financial administration.
2. Personnel: The Personnel department, also known as Human Resources (HR), manages
matters relating to the organization’s employees. They handle recruitment, employee
benefits, payroll administration, training and development, and employee relations.

3. Administration: The Administration department supports the overall functioning of the

organization by managing various administrative tasks. This may include office
management, facility management, procurement, travel management, and other
administrative duties.

4. Treasury: The Treasury department is responsible for managing the organization’s

financial assets and liabilities. They handle cash management, liquidity management,
foreign exchange operations, debt management, and investment activities. The treasury
department ensures that the organization has enough funds to meet its financial
obligations and optimizes the use of financial resources.

5. Internal Audit: The Internal Audit department conducts independent and objective
evaluations of the organization’s internal controls, processes, and financial systems. They
review compliance with policies and regulations, assess risks, and provide
recommendations for improvement. Internal Audit helps ensure transparency,
accountability, and the prevention of fraud or misconduct.

6. Ministry of Finance Incorporated: The Ministry of Finance Incorporated is a government

entity that oversees the financial management and operations of government-owned
companies or entities. They provide guidelines, support, and regulatory oversight to
ensure proper financial governance.

7. Treasury Academy: The Treasury Academy is an educational institution or training

center that specializes in providing knowledge and training in treasury-related topics. It
offers courses, workshops, and certifications to professionals working in treasury or those
interested in pursuing a career in treasury management.

8. Inspectorate: The Inspectorate department is responsible for monitoring and enforcing

compliance with regulations, policies, and procedures within the organization. They
conduct audits, investigations, and inspections to ensure adherence to standards and
identify areas that require improvement or corrective actions. The Inspectorate’s role is to
ensure organizational integrity, efficiency, and effectiveness.

Out of these departments, the Treasury Department of the Federal Ministry of Finance is
charged with the responsibility of preparing the final accounts. To execute this function
effectively, the Department of Treasury is sub-divided into five units:

1. Treasury
2. Final accounts
3. Sub-Treasury
4. Revenue Monitoring
5. Cash Supply

1. Treasury: The Treasury department is responsible for managing the financial resources of
an organization, usually a government or large corporation. They ensure the efficient and
effective use of funds, oversee budgeting processes, and handle cash management.

2. Final accounts: Final accounts refer to the financial statements that are prepared at the
end of an accounting period, typically annually. These statements include the balance
sheet, income statement, statement of cash flows, and statement of changes in equity.

3. Sub-Treasury: A sub-treasury is a branch or subsidiary of the Treasury department that

operates in a specific location or serves a particular function. It is responsible for
managing and overseeing financial operations within its designated area.

4. Revenue Monitoring: The revenue monitoring function of the Treasury department

involves tracking and analyzing the organization’s income streams, such as taxes, fees,
and other sources of revenue. It ensures that revenues are collected accurately and in a
timely manner.

5. Cash Supply: The Treasury department manages the cash supply of the organization,
ensuring that there is sufficient liquidity to meet financial obligations. This involves
forecasting cash needs, monitoring cash inflows and outflows, and optimizing the
allocation of funds.
FINAL ACCOUTNS UNIT
It is the ultimate responsibility of the Final Accounts unit within the Treasury Department of the
Accountant-General’s office that is responsible for the production of the final accounts of
government. To do this, the unit obtains information from various sources such as:

(a) Transcripts from the Ministries and Extra-Ministerial Departments.

(b) Accounts from the Federal Pay Offices, States and Local Government Councils.
(c) Accounts from the Nigeria High Commissions Overseas

FINANCIAL STATEMENTS PRODUCED BY THE TREASURY

The types, number and format of financial statements produced by the treasury in Nigeria has
undergone several changes. By law, with effect from 2016, the Accrual-bases International
Public Sector Accounting Standards (IPSAS) are operational in practice. However, it is common
knowledge that apart from some public sector entities including Millennium Development
Agencies, most governments at the federal, states and local government councils still maintain
and operate the cash based system. As a result the two systems will be presented here. The cash
based system is presented here while the accrual based IPSAS are discussed later. With effect
from January, 2003, the following statutory financial statements are prepared at the Federal and
State Government Levels:

1. Preface to the financial statements: This is a statement by the Minister of

Finance/Commissioner for Finance that gives an overview of the financial statements of the
Government as prepared and presented by the Accountant-General. The overview cover among
other things, the following: (i) overview of the global economy, (ii) Evaluation of Government
performance for the year under review, (iii) Future economic outlook. and any other relevant
remarks.

2. Statement of responsibility for the financial statements: Here the Accountant-General of the
Federation (or the State) states, among others, that the financial statements have been prepared in
accordance with the provision of the Finance (Control and Management) Act, Cap 144 LFN
1990 (as amended) and in compliance with the generally accepted accounting practice.

3. Statement of opinion of the Auditor-General. This is in the form of a Certificate given by the
Auditor –General indicating whether or not the financial statements present a true and fair view
of the financial position of Government as at 31st December of the relevant Year and its
operations for the year ended on that date.

4. Statement No. 1 Cash Flow Statement

5. Statement No. 2 Statement of assets and Liabilities

6. Statement No. 3 Statement of Consolidated Revenue Fund

7. Statement No. 4 Statement of Capital Development Fund

8. Notes to the Financial Statements The formats of the statements are stated below:

1. Cash Flow Statements:

Cash flow statements provide information about the inflow and outflow of cash and cash
equivalents from various activities such as operating, investing, and financing. It helps in
understanding the liquidity and cash position of an organization during a specific period. This
statement captures changes in cash balances, highlighting key sources and uses of cash. It is
useful for assessing the ability of the Treasury to meet its financial obligations, manage cash
effectively, and make informed decisions about investments, loans, and expenditures.

FORMAT OF STATEMENT NO 1
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DEC., 20XX
NOTES CURRENT YR PREVIOUS YR
N N
Cash flow from Operating Activities
Receipts
Statutory Revenue Allocation 3 X X
VAT 4 x x
Internally Generated Revenue 5 x x
Grants / Subventions 6 x x
Miscellaneous 7 x_ x_
Total Receipts. x x
Payments
Personnel Emoluments 8 (x) (x)
Pensions and Gratuities (x) (x)
Consolidated Revenue Fund Charges (x) (x)
Overhead Costs (x) (x)
Public Debt Charges (x) (x)
Recurrent Grants and Subventions (x) (x)
Subsidies (x) (x)
Miscellaneous Expenses 9 (x) (x)
Total Payments. X X

Net Cash Flow from Operating Activities. (x) (x)

Cash Flow from Investment Activities:
Purchase / Construction of assets 10 (x) (x)
Purchase of Financial Market Instruments. (x) (x)
Proceeds from sale of Assets. x x_
Net Cash Flow from Investing Activities. x x
Cash Flow from Financial Activities:
Proceeds from Loans and Other Borrowings 11 x x
Dividends Received 12 x x
Repayment of Loans 13 (x) (x)
Net Cash Flow from Financing Activities x x
Net Increase/ (Decrease) in cash & cash Equivalents x x
Cash & Its equivalent at l/2/20xx. x x
Cash & Its equivalent at 31/12/20xx x x

2. Statements of Assets and Liabilities:

Statements of assets and liabilities, also known as balance sheets, provide a snapshot of an
organization’s financial position at a specific point in time. It presents details of the Treasury's
assets, including cash, investments, receivables, and properties, along with its liabilities, such as
debts, payables, and other obligations. This statement helps in understanding the overall financial
health and solvency of the Treasury, showing what it owns and what it owes.

FORMAT OF STATEMENT NO 2
STATEMENT OF ASETS AND LIABILITIES FOR THE YEAR ENDEC31ST
DECEMBER. 2XXX
ACTUAL
NOTES CURRENT PREVIOUS
YEAR YEAR
N N
ASSETS:
Liquid Assets:
Cash and Bank Balances 14 xx xx
Others - 15 xx xx
xxx
xxx
Investments:
Min. of Finance Incorporated 16 xx xx
Advances 17 xx XX
Treasury clearance a/cs 18 xx xx
xxx
XXX
LIABILITIES:
Consolidated Revenue Fund 19 xx xx
Capital Development Fund 20 xx xx
Other Government Funds 21 xx xx
xxx xxx
Foreign Loans 22 xx xx
Internal Loans 23 xx xx
Development Loan Stock 24 xx xx
xxx xxx
 3. Statements of Consolidated Revenue Fund:

The consolidated revenue fund statement provides a comprehensive overview of the

government’s revenue and expenditure activities. It presents details of all revenue collected by
the Treasury, including taxes, customs duties, fees, fines, and other sources of income.
Additionally, it outlines the government’s expenditures across various sectors, such as
education, healthcare, infrastructure, and public services. This statement helps in tracking the
financial performance and accountability of the government, ensuring transparency in the use of
public funds.

STATEMENT NO. 3
CONSOLIDATED REVENUE FUND FOR THE YEAR ENDED 31ST DECEMBER
20XX
ACTUAL NOTES BUDGET ACTUAL VARIANCE
PREVIOUS CURRENT CURRENT
YEAR YEAR YEAR %
Nm Nm Nm
xx Opening Balance xx xx x
Add Revenue:
xx Statutory Revenue Allocation
xx Fines & Sales 25 xx xx
xx Earning & Sales 26 xx xx
xx Rent on Government Property xx xx
x
xx Interest & Dividend 27 xx xx x
xx Taxes (Direct & Indirect) 28 xx xx x
xx Miscellaneous 29 xx xx x
XXX Total Revenue (a) xxx xxx X
Less: Expenditure:
xx Administrative Services xx xx xx
xx Education Services xx xx xx
xx Transport Services 30 xx xx xx
xx Health Services xx xx XX
xx Agriculture Services 31 xx xx xx
xx Others of General Nature xx xx xx
xx Subsidies xx xx xx
xx Miscellaneous 32 xx xx xx
xxx Total Expenditure (b) xxx xxx x
xxx Operating Balance (a-b) _ xxx xxx x
AppropriatIions/Transfers:
xx Capital Development Fund xx xx x
xx Loan Repayment Fund xx xx x
xxx Closing Balance xxx xxx x

4. Statements of Capital Development Fund:

Statements of capital development fund capture the financial transactions related to capital projects
and infrastructure development. This statement focuses on the sources and uses of funds specifically
allocated for capital investments, such as construction, renovation, or acquisition of physical assets. It
helps in monitoring the progress of capital projects, tracking the utilization of funds, and assessing the
return on investment for long-term infrastructure development. This statement is vital for planning,
budgeting, and managing capital expenditures effectively.

In conclusion, the Federal Treasury Department plays a critical role in the preparation of
Treasury final accounts. Through their meticulous data collection, analysis, consolidation, and
collaboration with auditors, they ensure the accuracy, transparency, and compliance of these
financial statements. By providing comprehensive insights into the government’s financial.
References

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Lagos: Corporate Publishers Venture.

Emeni, F. K., Ogiedu, K.O., Mgbame, C.O., &Erhagbhe, E. (2008) Public sector accounting
and finance, Benin City: Mindex Publishing Company Limited

ICAN (2014). Public sector accounting and finance, Lagos: ICAN

Ogiedu, K.O. (2016) Lecture notes on public sector accounting and finance, Benin City,
Unpublisher

Omolehinwa, E.O., & Naiyeju, J.K. (2015) Government accounting in Nigeria: An IPSAS
approach, Lagos: Pumark (Educational Publishers).