DEPARTMENT OF ACCOUNTING

FACULTY OF MANAGEMENT SCIENCES

KADUNA STATE UNIVERSITY, KADUNA
PROGRAM: POSTGRADUATE DIPLOMA IN ACCOUNTING (PGD)
COURSE: ASCE XXX (PUBLIC SECTOR ACCOUNTING AND REPORTING)
COURSE: LOADING: 2 UNITS
SEMESTER: SECOND (2ND)
MODULE V: TREASURY FINAL ACCOUNTS

INTRODUCTION
This module will dwelled on the Federal Treasury Department and the preparation of the treasury
final accounts. You will also learn about the components or units of the Federal Treasury
Department. Furthermore, 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.

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
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 ssets 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:
 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
 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
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