Hawassa University

College of Business and Economics

Department of Accounting and Finance

Assessment of effectiveness of public expenditure; in case of sude

woreda finance and economics office

By Hussein Sufian

ID;Acfn0080/06

Aresearch proposal submitted in Partial Fulfillment of the Requirements

for the Bachelor of Arts Degree in accounting and finance

Advisor; Bekalu T.

january, 2016

Awada, Ethiopia

i
 ABSTRACT

The main objective of this study is to assess how the effectiveness of public expenditure office
efficiently and effectively performs their activity on the town. The researcher will use both primary
and secondary data. The primary data will be collected using interview, questionnaire and the
secondary of data willbe collected from deferent types of manual and annual reports.as the
researcherpropose The sampling techniques will be selected from the studies on censes basis from
the employees of the government expenditure office. The data gather will be analyzed using
quantitative and descriptive (qualitative) types of research statistics like tables, percentage and
graphs.
 ACKNOWLEDGMENT

First and for most, I would like to Thank the Almaighty God Allah for helping me in my education
carrier. Next I would also like to express my appreciation and special thanks to my relatives
particularly my brather Muhammed and my family for their encouragement of financial,
materials and moral support throught my academic life.

I would like to express my deepest gratitude and appreciation to my advisor for his relentless
technical assistance and invaluable constructive and precious comments. My special thanks also
go to sude woreda finance and economic office for their positive response in providing me
valuable information.

The last, but not least thanks, goes to my partners who in one way or another contributed for the
betterment of this proposal.
 CHAPTER ONE

INTRODUCTION

1.1 Back ground of the study

Public expenditure refers to governmental expenditure i.e. governmental spending. It is incurred by
central, state and local governments of a country. Public expenditure can be defined as the expenditure
incurred by public. Authorities like central, state and local government to satisfy the collective social
wants of the people is known us public expenditure.

Public expenditure is spending made by the government of a country on collective needs and wants such-
us pension, consumption, infrastructure, defense etc.

Throughout 19th century, most government followed laisefaire economic policies and their function were
only restricted to defending aggression and maintaining law and order. The size of public expenditure
was also very small. But now the expenditure of government all over has significantly increased in the
early 20th century. Then Maynard Keynes advocated the role of public expenditure in determination of
level of income and its distribution.

.In developing countries, public expenditure policy not only accelerates economic growth and promotes
employment opportunities but also plays a useful role in reducing poverty and inequalities in income
distribution.

1.2 Statement of the problem

Expenditure is foundation of planning, authorizing, and controlling and evaluating activities of
fund liability incurred (expandable financial resource used.) (Wison et al 2010)

Public expenditures are faced with numerous problems of wastage of resources mainly due to
weak planning and accounting system poor financial management, and poor procurement
practice and procedures nevertheless, in most developing countries central government budget
allocations are used as indicators of supply of public services (Wisou et al 2010).

The key research questions

 What accounting system sude woreda finance and economics office use to evaluate
expenditure?
 Is managerial control of public spending effective in sude woreda finance and economic
office?
  What is the trend of public expenditure both are capital and recurrent in sude woreda
finance and economic office?

1.3 Objective of the Study

1.3.1 General objective of the study

The general objective of the study would to assess the effectiveness of governmental
expenditure in sude worede.

1.3.2 Specific objective of the study

The specific objectives of the study are

1) To evaluate the public accounting system on expenditure in sude woreda.

2) To evaluate the effectiveness of managerial control in public spending
3) To assess trend of public expenditure both on capital and recurrent in sude woreda.

1.4 Significance of the study

Effective and efficient public resource management and implementation process in very
essential for developing countries. The sample reason resource without control and effective
utilization is noting. The overall significance of the study was used us. To decrease government
to the proper way by identifying the awareness on each and every citizen about the utilization of
resources.

 The study is very important for financial decision makers of the city.
 It helps to improve effectiveness of expenditure management and control.
 It helps to institution and organization that maintaining and implementing public
expenditure.
 It can also help the organization in order
 To follow the lesson they have based on the recommendation of this research.
 The paper is important for academic purpose for those who are understanding
researcher on public finance.
1.5 Scope of the study
The study focused only on the effectiveness of public expenditure of Mekelle city rowing for the
period’s flows and the 2004-2006 of the finance activity held in Mekelle finance and economic
office.

1.6 Organization of the paper

This research contains five chapters. Chapter one deals with the introduction which overviews
the problem and its approach. This part comprises background of the study, statement of the
problem, research questions and objectives, significance of the study, delimitation of the study
and limitation of the study. The next chapter of this study deals with the review of related
literatures, which deals with public expenditure. The third chapter dealt with research
methodology of the study. The presentation and analyses of the results are treated under
chapter fourth. The fifth chapter deals with the summary, conclusions and recommendations
part of the study.

CHAPTER TWO

LITERATURE REVIEW

2.1 The concept of public (government) expenditure

Government spending or expenditure consists of government purchase which can be financed by
signed age, taxes or government borrowing (Wikipedia, government spending).

Public expenditure is a simple concept it denotes the dispensation by the state, non market
however, the detail is highly compels because the modern state is such a difficult concept to
analyze, consequently core is always required in the interpretation of public expenditure, figure,
particularly when these become the subject of heated political debate (David held et al 2002).

2.2 Public expenditure composition

1. Defense

The expenses of defense and aggression have, it must be noticed to be decided in to two distinct
parts. The farmer which may be regarded as a normal regular part the peace establishment the
preparation of war. It is so well recognized a feature of the modern budget that it passes without
comment. The other part of state outlays in this respect is that devoted to actual, it is evidently
irregular in amount and may so for be called abnormal, through it is almost certain to recur at
indefinite intervals. (Charles F. et al, 1917)

2. Justice and security

In tracing the gradual development of state function we fund what the maintenance of internal
security, the protection of each member of the society against the in justice or operation of the
every other member of it or in more modern phrase the establishment of law and order. Was a
task was attempted in the earlier stages of social (Charles, 1917).

3. Education
During the present century the state guided system of primary instruction has become definitely
established, as an examination of the details of expenditure will most clearly show. The
development of this system has brought the existence of several difficulties imperfectly
recognized at its commencement (Charles, 1917)

4. Expenditure on industry & commerce

To faster industry and commerce was long regarded as a leading function of state in that: to this
conception that we are the origin of finance and political economy (Charles, 1917).

2.3 Causes of increasing government expenditure are

It is very difficult to identify specific “causes” of increased government expenditure. However
some major factors definite related to the increasing site of government are increasing incomes,
increased population and urbanization, increased education and human resources (Charles,
1917)
Incomes

Raising real incomes are associated with raising government expenditure in two ways. First, as
income increasing in an economy there is shift from primary extractive industry to secondary
(manufacturing and merchandising) industry to service. Secondly service activity tends to have
lower rate of productivity increase over time.

Population

We note population is self increasing in most causes which thus becomes a major contributing
factors to the growth of public expenditure. The share scale of various public services has to
increase in harmony with the population growth (Charles, 1917).

Urbanization

Urbanization over some range should lead to decreased costs of some public goods and services
as economies of scale are achieved. However, more goods and services are provided publically in
urban than in rural areas causing higher public expenditure and many cities of such site that all
potential economics of scale have been exhausted (Charles, 1917).

2.4 Government accounting (fun & accounting) principle

General accepted accounting principles (GAAP) represent a refinement of the goal and
objectives. They constitute the mechanism through which goals and objectives are applied to
every day practice of accounting (Parcial Douglas, 1991)

Principles of Accounting for government organization

The GASB (Government accounting standard principle) codification of governmental and

accounting and financial reporting standards presents the following 12 principles of
governmental accounting and financial reporting (Emerson, 1988).

Principle one: - Accounting and reporting capabilities. The accounting system of governmental
unit shall provide information necessary to:-

a) Prepare financial position and results of financial operation of the funds and accounts of
units in conformity with generally accepted accounting principle.
 b) Determine and demonstrate compliance with finance and contractual provisions
(Emerson, 1988)
Principle two: Fund accounting system

Governmental accounting system should be organized and operated a fund basis. A fund is
defined as a fiscal and accounting entity with a self balancing set of accounting recording
cash and other financial resources, to gather with all related liabilities and residual equity or
balances and changes there in (Emerson, 1988)

Principle three: - types of funds

There are three categories of funds used in government at accounting

I. Governmental fund

 central fund
 special revenue fund
 capital project fund
 Debit service fund
 Permanent fund

II. Proprietary funds:-

 Enterprise fund
 Internal service fund

III. Fiduciary funds;

 Pension and the employ benefit trust fund

 Investment trust fund
 Private purpose trust funds. agency funds (emerson, 1988)

Principle four: Number of funds

Government units should established and maintain those funds required by law and sound
financial administration only the mini number of funds consistent with legal and operating
requirement should be established (Emerson D. Henke 1988).
 Principle five: - Accounting for capital asset and long term liability

Capital asset include land, improvement to land, buildings ,building improvements, vehicles,
machinery, equipment, work on art and historical treasures E.t.c (Emerson, 1988)

Principle seven: - Depreciation of capital asset

Depreciation of those proprietary funds capital assets should be recorded in the account of that
fund. Depreciation is also recognized in those trust funds where expenses, net income, and or
capital maintenance are measured (Emprson, 1988).

Principle Eight: - Accrual basis in government accounting

In their report local and state government must use the modified accrual basis accounting for
government funds and agency fund but they must use accrual basis of accounting for proprietor
funds and some other fiduciary funds (Emerson, 1988).

Principle Nine: - budgeting and budgetary control and budgetary reporting

An annual budget (s) should be adopted by every governmental unit. The accounting system
should provide the basis for appropriate budgetary control (Emerson, 1988)

Principle Ten: - Revenue, expenditure, transfer and expenditure

Account classification

Inter fund transfers and proceeds of general long term debt issues should be classified
separately from fund revenue and expenditure an expense (Emerson, 1988)

Principle Eleven:- Common terminology and classification

Government units shall consistently, utilize terminology and classification throughout the
budget accounts and financial reports of each fund (Emerson, 1988).
 Principle twelve: - Internal and annual financial reports

The state and local government units should prepared basic financial statement.

Internal financial statement should be prepared to facilitate management control of financial

operation (Emerson, 1988)

2.5 Ethiopian government accounting system

Accounting system is the method records established to identify assemble, analyze, and classify
record and report at a governments transactions and to maintain accountability for the related
assets and liabilities. The federal government of Ethiopia (FGE) has been using a cash basis of
accounting in recognizing revenues and expense and single entry book keeping system since the
reform (Government and non profit).

2.5.1 Chart of accounts

Chart of accounts is systems of coding used by a financial management system to identify and
classify financial entities and events. The chart of account detailed account codes for temporary
and permanent accounts (Government and nonprofit accounting).

2.5.2 Basis of accounting

A term used to refer to when revenues, expenditures transfers and the related assets and
liabilities are recognized in the account and reports in the financial systems. There are three
basis of accounting, accrual accounting, modified cash basis and modified accrual basis of
accounting (Government and nonprofit accounting).

Book keeping method

The federal government Ethiopia accounting system past financial reform period uses double
entry book keeping in which both aspects of each transaction are recorded in the accounting
records. So that for every debit must be equal amount of credit (government and nonprofit
accounting).
2.6 Public expenditure in Ethiopia

2.6.1 Expenditure management and accounting system in Ethiopia

Under the umbrella of the civil service reform project a component called the expenditure
management and control program has been operating since 1997 to improve budget cycle
management in Ethiopia starting from the federal level and then working its way to the regions
under the rubric of the Decentralization support activity previous (PER,) have reported on these
reforms in the detail (Ethiopia public expenditure review volume II 2004).

Central elements of the program are new chart of accounts and as double entry computerized
accounting system to replace existing manual single entry system. The new chart of accounting
provides for uniform classifiers for type of expenditure (economic classification) classification
and a new code for cost centers, which designated the unit which is responsible for managing
that part of budget. The new chart has been applied at the federal level of since 1994-2001/02,
and was adopted by most regions (Ethiopian public expenditure review volume II 2004).

2.6.2 Expenditure planning

The government has been moving for some time forwards a more system affixed medium learn
planning process using a locally a peace approach along the lines of the medium term
expenditure frame work in use in several other countries. The Ethiopian application of the
central concept has involved a three tip approach consists of

a) A rolling macro-economic and fiscal, frame work (which would result in a three year
projection of the likely resource envelope for the country and a breakdown by broad
sectors of federal government expenditure and subsidiary to the regions.
b) A three year public investment program which would be derive its annual calling
(“indicative planning figures”) from the MEFF. And was intended to be transformed in to
a full public expenditure program (PEP) and
c) A binding budget calendar which would ensure that the regions in particular would
receive timely information about the level of the federal subsidy, which constitute the
back of the revenue of regions (Ethiopian public expenditure review volume II 2004)
 CHAPTER THREE

3. RESEARCHMETHODOLOGY

3.1 Methodology of the Study

3.1.1 Data sources and type

In organizing the study so as to meet the objectives of the study; both primary and secondary data were used.
The primary data was collected through questionnaire, unstructured interviews and investigation. Whereas
secondary data are obtained from reports of government expenditure and document of the finance bureaus,
published books, internet website.

This paper was used both qualitative and quantitative methods, the qualitative enables to description the
phenomenon reflected by reasonability as it is. The justification for using the quantitative methods enables
reflected by the measurement of quantity and amount.

3.1.2 Data collection method

The researcher used both open ended and closed ended questionnaire.

1. Interview
The researcher used unstructured interview question in order to get reliable information about subject matter
from respondents particularly the manager.

2. Questionnaire
The researcher used both open and closed ended questionnaire means in order to give freedom to
respondents (person being requested to answer without any fear and to give him/her to answer the
questionnaire by confidence).

3.1.3 Target population

The target population for this study is employees of the finance in mekelle city. The total population of the
finance are 42, from those16 of them are females and the remain are males. Since the number of the
employees are small the researcher uses censes method.

3.1.4 Sample size

Since the numbers of staff employee in the finance section of the city are small, all employees would be
considered in the study.

3.1.5 Data analysis and presentation

After the data collected by using different methods, the researcher would analyze and present by
using graphs, percentage , tables and quantitative methods.
3.1.6 Target population
The target populations from which the representative sample to be taken were the office manager and staff
workers.

CHAPTER FOUR

4. DATA ANALYSIS, INTERPRETATION AND PRESENTATION

This chapter deals on the brief description of Mekelle finance and economic office effectiveness
of public expenditure. The analysis and interpretation is based on the data collected from
primary and secondary data .The primary was collected using questionnaire, unstructured
interview and secondary data was collected from different types of manual and annual report.
Questionnaires were distributed to 42 employees of the finance office that have direct work
relation to finance .All questionnaires are filled and returned.

The following table shows the data analysis, presentation and interpretation.
4.1. General characteristics of the respondents
Table 4.1.1 Gender structures of respondent

Variables Description Respondents in number Respondents in

percentage (%)
Male 26 61.9%
Gender Female 16 38.1%
Total 42 100%
Source: Owen survey, 2015

The above table 4.1.1 shows that 61.9% of the respondents are male and the remaining
38.1%are Females. As it can be viewed from this result the composition of the employees are
almost male than females that means the participation of males exceed that of female in
activating expenditure effectiveness of the city.

Table 4.1.2 Age of respondents

Age in year Respondents in number Respondents in

percentage (%)
20-30 21 50%
30-40 15 35.7%
40-50 6 14.3%
Above 50 0 0%
Total 42 100%
Source: Own survey, 2015

From the above table 4.1.2 out of the total respondents 50% were between ages of 20-30%age.
35.7% were between ages of 30-40 14.3% were age of between40-50. And above 50 were no one
that means 0%.This implies that the majority of the respondents are found in the age of 20-30
years followed by 30-40 years. In other words this means an expenditure activity abundant with
 broad idea in understanding effectiveness of the organization by taking complete responsibility
and accountability for their effectiveness reliability is enough.

Table4.1.3. Educational level of respondents

Variable Description Respondents Respondents in

in number percentage (%)
Educational 12 complete 2 4.76%
Level Degree 27 64.3%
Diploma 10 23.8%
Above 3 7.14%
Total 42 100%
Source: Own survey, 2015

As it can see from the above table 4.1.3, 64.3% of respondents are educational level were degree
holders and the remaining 23.8% of respondents were diploma holders, the remain 7.14% and
4.76% were above degree and certificate holders respectively. Therefore, from the above table
education status of employees shows that it is simple to understands as there is to some level
enough skilled human resource for expenditure effectiveness of organization in other words the
organization have matured skill in a human power.

4.2. Methods of accounting for expenditure

Table 4.2. 1 Methods of accounting for expenditure

No Methods of accounting Respondents Respondents in

in number percentage (%)
1 Yes method accounting for expenditure 42 100%
in office
2 No method accounting for expenditure in 0 0%
office
Total 42 100%
Source: Own survey, 2015
As it can see from the above table 4.2.1 the employees response used of method accounting for
expenditure in office. Thus 100% or all of them have responded that there was a method of
accounting for expenditure in office. The respondents replied that government expenditure
account, modified cash basis of accounting used.

4.3 The types of expenditure items are recorded in office

Fig 4.3.1. Types of expenditure items are records in office

45
40
35
30
25
20
15
10
5
0
Bothe Capital Recerrent
 Source: Own survey, 2015

From the above figure4.3.1 indicate that out of the total respondents response that 45.46% were
recurrent, 33.33% were capital and 21.21% were both recurrent and capital expenditure use.
The majority of government expenditure in the organization is recurrent expenditure in mekelle
city.

4.4. Items of expenditure included in recurrent and capital expenditure

The employees respond that the recurrent expenditure intended for running administrative cost
of the government that includes salary wages, stationary, communication, utilities control, office
services, social security, contribution, allowances, and supplies e.tc. and the other is capital
expenditure is a government outlay for economic and social development that includes
contraction of schools, health centers, dumps, agriculture and industrial development, bridge
and road maintenance, building maintenance and improvements, buildings, machinery plant,
vehicles, and apparatus e.t.c.

Method of recording transaction are used in the office

Table 4.5.1 Method of recording transaction are used in office

No Methods of accounting Respondents Respondents in

in number percentage (%)
1 Yes use method of recording transaction 42 100%
2 No use method of recording transaction 0 0%
Total 42 100%
Source: Own survey

From the above table 4.5.1 shows that 100% of the respondents replied the method of recording
transaction are used in the office. That means the office use double entry recording transaction.
 4.6 The response of expenditure manager
According to the manger of mekelle public expenditure bureau, there are some responses for the
question of the effectiveness government expenditure. The first question about the methods of
accounting for expenditure are used, for this question the finance manager responded that,
modified cash basis of accounting for expenditure are used. That means cash basis applied
except for recognition of the following transaction.

 Revenue is recognized when aid in kind is received

 Expenditure is recognized
 When payroll is processed
 At the end of the year when a grace period payable is recognized.
 When goods are received or services are rendered.
 Intergovernmental transfer are recognized in the absence of actual cash movement

The second and the third question about the items included in capital and recurrent expenditure.
The response for the second question that the items included in capital expenditure are
buildings, machineries, plant, vehicles, building maintenance construction of schools health
center, dumps, agricultural E.t.c---. The response of the 3 rd question that the items included in
recurrent expenditure office service, social security construction, allowances, supplies salaries,
wages, utilities e.t.c.

The response for the fourth question regarding the method of recording transaction for
government expenditure is that the finance used double entry book keeping method. That means
each transaction recorded in the transaction register affects the balance of at least two codes for
expenditure.

Expense -------------------------------------------------xx

Cash/payable/transfer--------------------------------xx

Transaction register serves as a basis to classify and part transaction in to the general ledger.
The general ledger facilitates the report generation process. The accountant maintains one
transaction register for each accountant.

Summarizing transaction by accountant

 Each transaction recorded in the transaction register affect the balance of two account code by
the same amount but one is debit and one is credit. Each debit and credit among for each
transaction must be recorded on a ledger card so called, general and subsidiary ledger.

The subsidiary ledger is a ledger that is separate from the general ledger and contains
transaction detail each control account in the general ledger. Any account in the general ledger
that requires more detail than simply the total account balance becomes a control account with a
subsidy ledger. The purpose of control account and subsidiary ledger account is to facilitate the
report generation places maintain sufficiently detailed records regarding account balance to
assist proper financial management.

The fifth question about the effectiveness of financial administration in finance office. The
response for this question is that the finance manager responds that it is effective but not full.
Because at some time the budgeted amount not sufficient in the cause of service it performs the
materials that are needed in city.

Capital and Recurrent expenditure

Table 2004-2006E.C annual capital and recurrent expenditure adjusted budget and actual
expenditure (year to date expenditure).

Annually Budget Vs Expenditure By Account Code

Tigray National Regional State
01/02/000/152/01/01 Mekelle city
-Plan and Finance Office- Administration and General Servi
Bank Account : A1 Month/Year : Sene / 2004
Source of Finance : All Print Date : 29/05/2015
(Figures in Birr)
Total
Accou Suppl YTD
nt Approved emen Adjusted Expenditure
Code Description Budget t Total Transfer Budget (Birr)

70,649,236.73 428,266,799.65
6000- Items of 335,355,401.0 28,87 434,878,720.
 4,083.
6999 Expenditure 0 13 86
6100- Personnel 118,828,901.0 115,445,792.
6199 Services 0 - -3,383,108.78 22 115,445,792.22
6110- 110,185,125.0 107,131,676.
6119 Emoluments 0 - -3,053,448.58 42 107,131,676.42
Salaries to 103,759,818.6
6111 Permanent Staff 107,302,854.00 - -3,543,035.34 6 103,759,818.66
Wages to Contract
6113 Staff 1,834,146.00 - 475,858.01 2,310,004.01 2,310,004.01
Wages to Casual
6114 Staff 414,600.00 - -50,839.50 363,760.50 363,760.50
Miscellaneous
6116 Payments to Staff 633,525.00 - 64,568.25 698,093.25 698,093.25
6120- Allowances/
6129 Benefits 199,957.00 - -27,049.19 172,907.81 172,907.81
Allowance to
6121 Permanent Staff 174,984.00 - -2,076.19 172,907.81 172,907.81
Allowance to
6123 Contract Staff 24,973.00 - -24,973.00 - -
6130- Pension
6139 Contributions 8,443,819.00 - -302,611.01 8,141,207.99 8,141,207.99
Government
Contribution to
Permanent Staff
6131 Pension 8,443,819.00 - -302,611.01 8,141,207.99 8,141,207.99
6200- Goods and 58,088,930.4
6299 Services 67,320,566.00 - -9,231,635.52 8 56,875,876.33
6210- Goods and 16,673,280.6
6229 Supplies 20,359,654.00 - -3,686,373.39 1 15,545,638.86
6211 1,976,694.00 - -101,471.05 1,875,222.95 760,927.95
Uniforms,
 Clothing, Bedding
6212 Office Supplies 3,735,057.00 - -235,781.30 3,499,275.70 3,499,275.70
6213 Printing 1,282,830.00 - -424,515.47 858,314.53 858,314.53
6214 Medical Supplies 2,172,000.00 - -87,477.21 2,084,522.79 2,084,522.79
Educational
6215 Supplies 107,560.00 - -2,359.62 105,200.38 105,200.38
6216 Food 472,660.00 - 151,017.10 623,677.10 623,677.10
Fuel and
6217 Lubricants 5,134,883.00 - -1,673,407.67 3,461,475.33 3,461,475.33
Other Materials
6218 and Supplies 416,070.00 - -105,429.56 310,640.44 310,640.44
Miscellaneous
6219 Equipment 91,900.00 - -331.19 91,568.81 91,568.81
Agriculture,
Forestry and
6221 Marine Inputs 4,790,000.00 - -1,066,617.42 3,723,382.58 3,710,035.83
Veterinary
Supplies and
6222 Drugs 180,000.00 - -140,000.00 40,000.00 40,000.00
Travelling and
Official
6230- Entertainment
6239 Services 2,584,159.00 - 611,862.90 3,196,021.90 3,196,021.90
6231 Per Diem 842,750.00 - 270,543.49 1,113,293.49 1,113,293.49
6232 Transport Fees 257,709.00 - 47,372.99 305,081.99 305,081.99
Official
6233 Entertainment 1,483,700.00 - 293,946.42 1,777,646.42 1,777,646.42

6240- Maintenance and 17,204,084.0

6249 Repair Services 20,214,329.00 - -3,010,244.99 1 17,204,084.01
 Maintenance and
Repair of Vehicles
and Other
6241 Transport 2,944,304.00 - 186,972.78 3,131,276.78 3,131,276.78
Maintenance and
Repair of Plant,
Machinery and
6243 Equipment 367,200.00 - -55,717.25 311,482.75 311,482.75
Maintenance and
Repair of
Buildings,
Furnishings and
6244 Fixtures 668,428.00 - -66,657.30 601,770.70 601,770.70
Maintenance and
Repair of
6245 Infrastructure 16,234,397.00 - -3,074,843.22 13,159,553.78 13,159,553.78
6250- Contracted 19,526,589.6
6259 Services 19,657,104.00 - -130,514.39 1 19,441,177.21
Contracted
Professional
6251 Services 11,991,513.00 - 185,554.12 12,177,067.12 12,092,790.90
6252 Rent 3,705,580.00 - -25,145.63 3,680,434.37 3,680,433.66
6253 Advertising 478,800.00 - -18,725.36 460,074.64 460,074.64
6254 Insurance - - 89,014.43 89,014.43 89,014.43
6255 Freight 172,040.00 - -64,080.10 107,959.90 107,959.90
6256 Fees and Charges 202,058.00 - -105,141.96 96,916.04 95,780.57
6257 Electricity Charges 1,076,000.00 - 299,943.80 1,375,943.80 1,375,943.80
Telecommunicatio
6258 n Charges 1,718,613.00 - -444,056.66 1,274,556.34 1,274,556.34
Water and Other
6259 312,500.00 - -47,877.03 264,622.97 264,622.97
Utilities
6270-
6279 Training Services 4,505,320.00 - -3,016,365.65 1,488,954.35 1,488,954.35
6271 Local Training 4,505,320.00 - -3,016,365.65 1,488,954.35 1,488,954.35
25,60
6300- Fixed Assets and 0,000. 80,863,936.1
6399 Construction 44,159,150.00 00 11,104,786.12 2 80,786,313.31
6310- 14,310,456.7
6319 Fixed Assets 15,492,000.00 - -1,181,543.25 5 14,310,456.75
Purchase of
Vehicles and Other
Vehicular
6311 Transport 2,980,000.00 - 320,232.00 3,300,232.00 3,300,232.00
Purchase of Plant,
Machinery and
6313 Equipment 5,705,000.00 - -449,640.25 5,255,359.75 5,255,359.75
Purchase of
Buildings,
Furnishings and
6314 Fixtures 6,807,000.00 - -1,052,135.00 5,754,865.00 5,754,865.00
25,60
6320- 0,000. 66,553,479.3
6329 Construction 28,667,150.00 00 12,286,329.37 7 66,475,856.56

6321 Pre-Construction 3,250,000.00 - 720,458.07 3,970,458.07 3,909,075.76

Construction of
Buildings - Non-
6323 Residential 16,867,150.00 - 4,588,444.50 21,455,594.50 21,449,318.35
25,60
Construction of 0,000.
6324 Infrastructure 8,050,000.00 00 6,933,296.16 40,583,296.16 40,573,331.81
 Construction
6326 Supervision 500,000.00 - 44,130.64 544,130.64 544,130.64
3,274,
6400- 105,046,784.0 083.1 180,480,062.
6499 Other Payments 0 3 72,159,194.91 04 175,158,817.79

Subsidies, 3,274,
6410- Investments and 105,046,784.0 083.1 180,480,062.
6419 Payments 0 3 72,159,194.91 04 175,158,817.79
Compensation to
Individuals and
6416 Institutions 32,000,000.00 - 31,185,522.58 63,185,522.58 63,185,522.58
Grants and
Gratuities to
6417 Individuals 225,000.00 - 878,858.11 1,103,858.11 1,103,858.11
Miscellaneous
6419 Payments 150,000.00 - -94,888.00 55,112.00 55,112.00
Monthly Budget Vs Expenditure By Account Code
Tigray National Regional State
01/02/000/152/01/01Mekelle city - Plan and Finance Office - Administration and General Service
Month/Year: Sene / 2005
Source of Finance : All Print Date : 29/05/2015
(Figures in Birr)
Total YTD
Account Approved Suppleme Total Adjusted Expenditure
Code Description Budget nt Transfer Budget (Birr)

6000- Items of 420,121,810 69,519,36 476,215,422 454,206,988

6999 Expenditure .00 7.56 -13,425,755.0 .53 .58

6100- Personnel 142,863,680 3,213,044. 109,268,157 94,804,968.

6199 Services .00 56 -36,808,566.8 .69 88

6110- 131,187,023 2,728,237. 100,077,702 87,034,527.

6119 Emoluments .00 00 -33,837,557.5 .44 60
Salaries to 127,261,969. 2,728,237.0 96,482,740.5
6111 Permanent Staff 00 0 -33,507,465.48 2 83,732,631.8
6113 Wages to Contract - -322,889.3 2,443,750.6 2,292,898.51
Staff
 2,766,640.00 4
Wages to Casual
6114 Staff 550,000.00 - -33,970.00 516,030.00 494,345.00
Miscellaneous
6116 Payments to Staff 608,414.00 - 26,767.26 635,181.26 514,652.28

6120- Allowances/
6129 Benefits 435,863.00 - -151,540.50 284,322.50 273,921.88
Allowance to
6121 Permanent Staff 435,863.00 - -151,540.50 284,322.50 273,921.88
6130- Pension 11,240,794. 484,807.5 8,906,132.7
6139 Contributions’ 00 6 -2,819,468.81 5 7,496,519.4
Government
Contribution to
Permanent Staff 11,240,794.0
6131 Pension 0 484,807.56 -2,819,468.81 8,906,132.75 7,496,519.40
-
6200- Goods and 85,797,296. 439,469.0 20,500,653.3 65,736,111.
6299 Services 00 0 6 64 59,195,106
6210- Goods and 26,079,051. 331,885.0 19,581,630. 16,417,191.
6229 Supplies 00 0 -6,829,305.23 77 08
Uniforms, Clothing,
6211 Bedding 2,921,883.00 3,615.00 -2,227,236.91 698,261.09 404,281.28

6212 Office Supplies 5,775,636.00 - -667,803.94 5,107,832.06 4,794,414.47

6213 Printing 2,171,602.00 - -873,262.88 1,298,339.12 934,353.84

6214 Medical Supplies 2,795,950.00 - -441,018.31 2,354,931.69 1,451,207.86

 Educational
6215 Supplies 190,000.00 - -20,013.25 169,986.75 169,986.75

6216 Food 896,019.00 - -315,596.58 580,422.42 301,036.75

6217 Fuel and Lubricants 5,614,346.00 - -1,433,739.69 4,180,606.31 3,447,438.50

Other Materials
6218 and Supplies 506,500.00 - -305,182.44 201,317.56 8,215.20
Miscellaneous
6219 Equipment 307,115.00 - -173,553.81 133,561.19 49,883.85
Agriculture,
Forestry and
6221 Marine Inputs 4,500,000.00 296,270.00 33,822.58 4,830,092.58 4,830,092.58

Veterinary Supplies
6222 and Drugs 400,000.00 32,000.00 -405,720.00 26,280.00 26,280.00
Travelling and
Official
6230- Entertainment 4,853,701.0 4,657,253.7 3,499,561.4
6239 Services 0 - -196,447.26 4 6

6231 Per Diem 1,871,341.00 - -614,138.44 1,257,202.56 981,906.12

6232 Transport Fees 1,012,000.00 - -372,705.54 639,294.46 414,361.76

Official
6233 Entertainment 1,970,360.00 - 790,396.72 2,760,756.72 2,103,293.58

6240- Maintenance and 18,575,850. 15,454,235. 14,478,106.

6249 Repair Services 00 - -3,121,614.98 02 47

Maintenance and
Repair of Vehicles
6241 4,705,000.00 - -737,297.34 3,967,702.66 3,099,791.45
and Other
 Transport
Maintenance and
Repair of Plant,
Machinery and
6243 Equipment 632,450.00 - -281,102.09 351,347.91 314,856.18
Maintenance and
Repair of Buildings,
Furnishings and
6244 Fixtures 599,200.00 - -271,351.02 327,848.98 256,123.37
Maintenance and
Repair of 12,639,200.0 10,807,335.4 10,807,335.4
6245 Infrastructure 0 - -1,831,864.53 7 7
6250- Contracted 32,368,694. 23,429,106. 22,209,031.
6259 Services 00 - -8,939,587.46 54 62
Contracted
Professional 22,986,860.0 15,782,183.8 15,782,183.8
6251 Services 0 - -7,204,676.19 1 1

6252 Rent 4,490,240.00 - -1,028,742.31 3,461,497.69 2,772,090.33

6253 Advertising 774,928.00 - 139,568.83 635,359.17 634,109.17

6254 Insurance 124,802.00 - -33,498.46 91,303.54 91,303.54

6255 Freight 249,025.00 - -53,394.79 195,630.21 152,260.99

6256 Fees and Charges 135,882.00 - -59,667.05 76,214.95 69,798.20

6257 Electricity Charges 1,185,500.00 - 77,264.44 1,262,764.44 1,206,815.27

Telecommunicatio
6258 n Charges 2,039,957.00 - -417,397.05 1,622,559.95 1,269,993.39
 Water and Other
6259 Utilities 381,500.00 -79,907.22 301,592.78 230,476.92
6270- Training Services 3,920,000.0 107,584.0 -1,413,698.43 2,613,885.5 2,591,215.5
6279
6271 Local Training 3,920,000.00 107,584.00 -1,413,698.43 2,613,885.57 2,591,215.57

6300- Fixed Assets and

6399 Construction 95,866,967. 2,619,543. 10,214,687.8 108,701,197 108,089,837
6310- Fixed Assets 31,971,900. - -2,497,175.43 29,474,724. 28,863,364
6319 00 57
Purchase of
Vehicles and Other
Vehicular 20,660,000.0 20,782,954.6
6311 Transport 0 - 122,954.68 8 20,782,954.6
Purchase of Plant,
Machinery and
6313 Equipment 8,311,900.00 - -1,386,814.01 6,925,085.99 6,640,731.93
Purchase of
Buildings,
Furnishings and
6314 Fixtures 3,000,000.00 - -1,233,316.10 1,766,683.90 1,439,677.90
6320- Construction 63,895,067. 2,619,543. 12,711,863.2 79,226,473. 79,226,473.
6329 00 00 7 27
Construction of
Buildings - Non- 48,687,678.0 2,559,543.0
6323 Residential 0 0 -755,113.18 50,492,107.8 50,492,107.5
Construction of 11,357,389.0
6324 Infrastructure 0 60,000.00 13,239,796.31 24,657,185.3 24,657,185.3
Construction
6326 Supervision 3,850,000.00 - 227,180.14 4,077,180.14 4,077,180.14
 6400- 95,593,867. 63,247,31 192,117,075
6499 Other Payments 00 1.00 33,668,777.3 192,509,955 .98

Subsidies,
6410- Investments and 95,593,867. 63,247,31 33,668,777.3 192,509,955 192,117,075
6419 Payments 00 1.00 6 .36 .98
Grants,
Contributions and
Subsidies to
Institutions and 64,205,012.0 38,876,308. 104,540,208. 104,280,725.
6412 Enterprises 0 16 1,458,888.21 37 69
Compensation to
Individuals and 30,928,855.0 23,200,000. 86,604,201.2 86,508,203.7
6416 Institutions 0 00 32,475,346.21 1 8
Grants and
Gratuities to 1,171,002.8
6417 Individuals 320,000.00 4 -125,457.06 1,365,545.78 1,328,146.51

Miscellaneous
6419 Payments 140,000.00 - -140,000.00 - -
Monthly Budget Vs Expenditure By Account Code
Tigray National Regional State
01/02/000/152/01/01 mekelle city - Plan and Finance Office - Administration and General Service

Bank Account : A1 Month/Year : Sene / 2006

Source of Finance : All Print Date : 29/05/2015

YTD
Account Approved Total Total Adjusted Expenditure
Code Description Budget Supplement Transfer Budget (Birr)

6000- Items of 182,441,618.0 28,521,297.0 29,780,748 240,743, 226,115,871.3

6999 Expenditure 0 0 .40 663.40 7
 -
6100- Personnel 5,036,174. 26,257,9
6199 Services 27,554,938.00 3,739,218.00 35 81.65 26,113,755.76
-
6110- 3,147,201. 23,740,5
6119 Emoluments 24,979,833.00 1,907,921.00 75 52.25 23,596,326.36
-
Salaries to 4,192,493.2 20,125,61
6111 Permanent 22,570,346.00 1,747,760.00 2 2.78 20,125,612.78 -
Wages to 1,825,626.7 2,427,300
6113 Contract Staff 601,674.00 - 6 .76 2,283,074.87
Wages to Casual 940,899.5
6114 Staff 1,528,620.00 160,161.00 -747,881.50 0 940,899.50 -
Miscellaneous
Payments to 246,739.2
6116 Staff 279,193.00 - -32,453.79 1 246,739.21 -
-
6120- Allowances/ 1,528,436. 443,404.
6129 Benefits 297,841.00 1,674,000.00 72 28 443,404.28 -
-
Allowance to 1,528,436.7 443,404.2
6121 Permanent Staff 297,841.00 1,674,000.00 2 8 443,404.28 -
6130- Pension - 2,074,02
6139 Contributions 2,277,264.00 157,297.00 360,535.88 5.12 2,074,025.12 -
Government
Contribution to
Permanent Staff 2,074,025
6131 Pension 2,277,264.00 157,297.00 -360,535.88 .12 2,074,025.12 -

6200- Goods and 5,179,260. 49,529,3

6299 Services 42,104,974.00 2,245,069.00 80 03.80 43,374,540.02
 -
6210- Goods and 1,115,637. 8,988,29
6229 Supplies 9,918,326.00 185,605.00 99 3.01 7,686,349.41
Uniforms,
Clothing, 321,784.8
6211 Bedding 644,073.00 4,453.00 -326,741.20 0 321,784.80 -
2,090,495
6212 Office Supplies 2,668,532.00 1,250.00 -579,286.81 .19 2,090,495.19 -
418,533.3
6213 Printing 664,829.00 - -246,295.64 6 377,851.92
6214 Medical Supplies 90,000.00 - -74,942.35 15,057.65 15,057.65 -
Educational 124,034.9
6215 Supplies 85,000.00 - 39,034.96 6 124,034.96 -

-
6216 20,000.00 - - 20,000.00 20,000.00
Other Materials
6217 18 and Supplies 226,400.00 - -139,175.88 87,224.12 87,223.72
Miscellaneous 124,074.8
6219 Equipment 120,692.00 - 3,382.81 1 124,074.81 -
Agriculture,
Forestry and 1,737,130
6221 Marine Inputs 1,293,000.00 138,802.00 305,328.00 .00 578,149.81
Veterinary
Supplies and
6222 Drugs 200,000.00 - -170,291.75 29,708.25 29,708.25 -
Travelling and
Official
6230- Entertainment 3,435,32
6239 Services 2,937,980.00 171,283.00 326,062.49 5.49 3,073,223.09
6231 Per Diem 1,085,080.00 171,283.00 -294,425.21 961,937.7 961,937.79 -
 9
243,913.2
6232 Transport Fees 753,900.00 - -509,986.72 8 243,913.28 -
Maintenance
6240- and Repair 8,935,694. 18,285,4
6249 Services 9,349,746.00 - 56 40.56 16,830,845.68
Maintenance
and Repair of
Vehicles and 8,529,850.8 11,213,85
6241 Other Transport 2,684,000.00 - 6 0.86 9,808,449.25
Maintenance
and Repair of
Plant, Machinery 101,300.5
6243 and Equipment 455,200.00 - -353,899.49 1 100,300.51
Maintenance
and Repair of
Buildings,
Furnishings and
6244 Fixtures 95,100.00 - -73,795.03 21,304.97 20,254.97
Maintenance
and Repair of 6,948,984.
6245 Infrastructure 6,115,446.00 - 833,538.22 22 6,901,840.95
-
6250- Contracted 2,396,300. 13,937,1
6259 Services 14,558,922.00 1,774,555.00 82 76.18 12,566,815.95
Contracted -
Professional 1,519,975.7 10,338,81
6251 Services 10,084,240.00 1,774,555.00 5 9.25 8,968,459.52

446,549.9
6252 Rent 614,000.00 - -167,450.02 8 446,549.98 -
6253 Advertising 878,500.00 - -196,021.85 682,477.65
682,478.1
 5
101,960.5
6254 Insurance 143,000.00 - -41,039.43 7 101,960.57 -
141,127.0
6255 Freight 229,450.00 - -88,323.00 0 141,127.00 -
Fees and
6256 Charges 106,608.00 - -65,087.07 41,520.93 41,520.93 -
Electricity 1,301,911.
6257 Charges 1,342,900.00 - -40,988.55 45 1,301,911.45 -
Telecommunicat 623,596.4
6258 ion Charges 834,224.00 - -210,627.56 4 623,596.44 -
Water and Other 259,212.4
6259 Utilities 326,000.00 - -66,787.59 1 259,212.41 -
6270- Training 4,883,06
6279 Services 5,340,000.00 113,626.00 -570,557.4 8.56 3,217,305.89
4,883,068.
6271 Local Training 5,340,000.00 113,626.00 570,557.44 56 3,217,305.89
Fixed Assets
6300- and 10,030,000.0 12,788,330 79,348,7
6399 Construction 56,530,420.00 0 .08 50.08 76,046,076.38

6310- 13,832,233 16,752,2

6319 Fixed Assets 2,890,000.00 30,000.00 .26 33.26 15,762,094.26

6311 Purchase of 4,000,000.0 4,120,000. 4,115,000.0

Vehicles and
Other Vehicular
6312 Transport 120,000.00 - 0 00 0
Purchase of
Plant, Machinery 7,290,905.6 10,090,90
6313 and Equipment 2,770,000.00 30,000.00 0 5.60 9,105,766.60
 Purchase of
Buildings,
Furnishings and 2,541,327.6 2,541,327.
6314 Fixtures - - 6 66 2,541,327.66 -
6320- 10,000,000.0 1,043,903. 62,596,5
6329 Construction 53,640,420.00 0 18 16.82 60,283,982.12
Construction of -
Buildings - Non- 6,650,501.0 35,679,09
6323 Residential 32,329,595.00 10,000,000.00 0 4.00 35,149,291.48

Construction of 25,643,02
6324 Infrastructure 20,050,825.00 - 5,592,197.8 2.82 23,860,290.64
Construction 1,274,400.
6326 Supervision 1,260,000.00 - 14,400.00 00 1,274,400.00 -
6400- Other 12,507,010.0 16,849,331 85,607,6
6499 Payments 56,251,286.00 0 .87 27.87 80,581,499.21
Subsidies,
6410- Investments 12,507,010.0 16,849,331 85,607,6
6419 and Payments 56,251,286.00 0 .87 27.87 80,581,499.21
Grants,
Contributions
and Subsidies to
Institutions and 9,777,034.5 72,247,42
6412 Enterprises 51,248,286.00 11,222,107.00 6 7.56 67,388,625.90
Compensation
to Individuals 6,895,427.0 11,895,42
6416 and Institutions 5,000,000.00 - 9 7.09 11,830,600.09
Grants and
Gratuities to 1,464,773.
6417 Individuals 3,000.00 1,284,903.00 176,870.22 22 1,362,273.22
According to the data found from the finance Mekelle city for the last three years there is a
Fluctuation in capital and recurrent expenditure in the two adjusted and year today or plan and
spend expenditure. In 2004E.C it was adjusted budget 438,878,720.86 birr, in 2005E.C.
increased to 476,215,422.53 birr, and in 2006E.C it is decreased to 240,743,663.40birr.in the last
three years the adjusted budget was fluctuating. In 2004E.C the spend or year to date
expenditure is birr 428,266,799.65 in 2005E.C increased to birr 454,206,998.58, further
decreased to 226,115,871.31 in 2006E.

As mention in the above table thus fluctuation caused in 2004E.C there was adjusted budget
amount greater than year to data or spend this happened because of the item of printing,
miscellaneous equipment, official entertainment, advertising, fright, other payments, E.t.c are
less effective and purchase of vehicles and other vehicular transport and Grants are not
sufficient.

In 2005 E.C the plan (adjusted budget) was greater than the spend or year to data because
expenditure amount decreased in some item in the expenditure such as telecommunication
water and other utility, electricity charges, other payment, rent, official entertainment, fees
and charges, electricity and other materials and supplies.

In the next one year 2006E.C the adjusted budget greater than the year to date or spend.
Because some expenditure items were miscellaneous payment, printing, fees and charges.
Rent, advertising prediem transport fees, fuel and lubricants E.t.c are partial effective. In
general the finance expenditure administration in both capital and recurrent expenditure
were less effective means that the amount of plan is greater than the amount of spend
(actual).
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1. Summary of findings

In this chapter the major findings of the study would be arrive at conclusion while doing
summary and conclusion the researcher tried to provided tractors stated under basic questions
and finally the researcher would recommended based on the conclusion. Here only the
important points are presented by referring the previous section.

 Out of total respondents 26(61.9%) were male and the remaining 16(38.1%) were
female.
 Among the sample 21(50%), 15(35.7%), 6(14.3%) and 0(0%) ranged between 20-
30years, 30-40years, 40-50 and above 50 years respectively.

From the total respondents 27(64.3%) were degree holders, the 10(23.8%) were diploma
holders, the remaining 2(4.76) and 3(7.14%) were certificate and above degree holders
respectively.

 The majority educational background of the employees were degree and diploma
 Out of the total respondents for items of expenditure 43.45%, 33.33% and 21.21% were
recurrent, capital and both respectively.
 The response show the 42(100%) of the sample participants said yes for the finance
office have method of accounting for the expenditure.
 The response expressed that for the method of recording transaction used in the
office .That means 100% of the respondents are use.
 The finance manager the following answers for some question
o Modified cash basis of accounting for expenditure used
o The finance use double enter book keeping method that means affects the balance
at least two codes for expense-----------------------------------------xx
Cash/payable transaction-----------------------------------------xx
 Both capital and recurrent expenditure of the town fluctuates in the 3years
5.2 Conclusion
This paper has been conducted mainly to investigation and analysis the effect of public
expenditure on the organization operation and to lay out currently problems and then finally to
recommend some possible solutions. This concluded with some strength and weakness.

The strengths of the organization are;

 As the researchers get information from respondents of the organization, each items of
expenditure are recorded in a double method of recording in which errors can be easily
and self adjusted.
 General and subsidiary ledger is maintained to classify information recorded in the
transaction register by respective account code.
 The organization has sufficient resource or budget to run its operation.
 The organization uses the accounting method of basis which is modified cash basis of
accounting for both recurrent and capital expenditure items.

The weaknesses of the organization are;

As the researcher get information from the organizations secondary data, the researcher layout
the following weakness of the organization;

 There was ineffective utilization of budget in the organization in a successive three years.
 There was quite fluctuating of budget expenditure in a successive three years.
 Lack of attending and making repair and maintenance to the expenditure items after once
are constructed particularly to the capital projects.
 Lack of clear linkage of strategy to operational plan and appends that means a problem at
the time of expenditure preparation may have a resulting effect on expenditure
allocation.
5.3 Recommendation
Based on the result of the study the researcher culled to recommend some possible points in
order to enable mekelle finance and economic office to have effective and efficient public
expenditure in the city.

 Experienced and qualified workers are important to facilitate effective control on

government activities, for production efficiency and social satisfaction as the
finding of the study
 Mekelle finance and economic office of governmental expenditure is governmental
organization as governmental organization the city establish for the main purpose
of providing necessary social activities, but due to some expenditure allocation
and controlling problem the organization is not proving the appropriate service or
activities to the society. The organization considers solving expenditure allocation
and controlling problems. Because good expenditure controlling system is
essential to facilitate the achievements of the City finance goals and objectives.
 Problem of ineffective plan of expenditure was composed for the city. So the city in
order to perform its activities deductively and efficiently, enough planed
expenditure accounting is essential to facilitate the achievement of goals and
objectives.
 To improve less share of capital expenditure, the city effectiveness of
governmental expenditure must specially apply planning activities on capital
expenditure so efficiently applied expenditure is essential to the expenditure for
the town.
 In addition to the budget control and monitor the organization must to attain and
successfully should to monitor the activities done.
 Generally form the focusing on what factors reduces the effectiveness of
expenditure process organization are lack of clear linkage of strategy to
operational plan and appends that means a problem at the time of expenditure
preparation may have a resulting effect on expenditure allocation. So, by
considering this, the organization should focus on it to avoid this problem. That
means having a clear linkage of strategy to operational plans and spends is
important for continuous containment of organization.
 References

 Charles F. Bastable, public Finance third edition and reprinted, 1917, First edition 1817.
 Emerson O. Henke,1988 Nonprofit organization accounting third edition.
 Ethiopia public expenditure review volume II 2004.
 Paricial, Douglas.1991 Government and nonprofit accounting Theory and practice,
edition.

 Emerson O. Henke, Introduction nonprofit organization accounting 3 rd education 1988.

 Wilson, Reck, kattlus 2010 accounting for government and non for project.
 MEKELLE UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

Department of Accounting and Finance

Questionnaire for staff workers

This questioner is prepared by third year accounting and finance student for the full filament of the
requirement for the award of BA degree in accounting and finance and the purpose of this
questionnaire is to collect information concerning government expenditure in Mekelle city Finance
and economic office. Please full the questionnaire carefully by putting “X” on boxes. THANKYOU

I Personal Data

1, Gender Male Female

2, Age; 20-30 30 -40 40-50 Above 50

3, Educational level; 12 complete Diploma Degree Above

i. Data on the research question

4, is there any method of accounting for expenditure in your office?

Yes No

5, if your answer on question No 4 is yes, what method of accounting for expenditure are used?

__________________________________________________________________________________
__________________________________________________________________________

6, what type of expenditure items is in your office records?

Capital Recurrent Both

7, if your answer on question no, is both?, what items are including in recurrent expenditure?
__________________________________________________________________________________
__________________________________________________________________________

8, what items are including in capital expenditure?

__________________________________________________________________________________
__________________________________________________________________________

9, does your office use method of business recording transaction?

Yes No

10, if your answer on question No 9 is yes, what method of recording transaction

Single entry Double entry both

11, if you have any suggestion you are the most well came?

Interview For managers

Instruction please attempt each question specified, and write best answer on the explanation type of
question.

1, what methods of accounting for expenditure are used?

2, what items included in capital expenditure by public body?

3, what items included in recurrent expenditure by public body?

4, what methods recording transaction are used in your office?

5, is expenditure administration effective in your office?

6, what is the contribution of the manager in effective controlling of the public expenditure?