Government Accounting - The Institute of Chartered Accountants of

458 Pages·2012·1.57 MB·English

NOTE: This is a work in progress. All topics in the syllabus are covered but editing
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PUBLIC SECTOR ACCOUNTING

FOR

ACCOUNTING TECHNICIANS SCHEME OF WEST AFRICA
(ATSWA)
STUDY PACK
i
NOTE: This is a work in progress. All topics in the syllabus are covered but editing
for necessary corrections is in progress.
Thanks.
CHAPTER ONE
INTRODUCTION TO GOVERNMENT ACCOUNTING SYSTEMS
1.1 Learning Objective
1.2 Introduction
1.3 Definition of Terms
1.3.1 Government
1.3.2 Government Accounting
1.3.2.1 Government Accounting Processes
1.3.2.2 Government Accounting System
1.4 Nature and Objectives of Government Accounting
1.5 Purpose of Public Sector Accounting
1.6 Users of Government Accounting
1.6.1 Internal Users and the purpose for which they use the Accounts.
1.6.2 External Users and the purpose for which they use the Accounts.
1.7 Comparisons between Public and Private Sectors
1.8 Summary and Conclusion
1.9 End of Chapter Review Questions

CHAPTER TWO

CONSTITUTIONAL, LEGAL AND ADMINISTRATIVE FRAMEWORK OF
GOVERNMENT ACCOUNTING
2.1 Learning Objectives
2.2 Introduction
2.3 Legal Basis of Government Accounting
2.3.1 Constitutional Provision
2.3.2 The Finance (Control and Management) Act of 1958
2.3.3 The Financial Administration Act 2003
2.3.4 The Provision of Audit Act 1956
2.3.5 Appropriation Act
2.3.6 Financial Regulation
2.3.7 Treasury and Finance Circular
2.3.8 Official Gazette
2.4 Bases of Accounting
2.4.1 Cash Basis
2.4.2 Accrual Basis
2.4.3. Modified Accrual Basis
2.4.4 Modified Cash Basis
2.4.5 Commitment Basis
2.5 Summary & Conclusion
2.6 End of Chapter Review Questions

CHAPTER THREE

GOVERNMENT ACCOUNTING THEORY AND PROCESSES
3.1 Learning Objectives
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NOTE: This is a work in progress. All topics in the syllabus are covered but editing
for necessary corrections is in progress.
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3.2 International Public Sector Accounting Standard Board (IPSASB)
3.2.1 The Relevant Standards
3.2.2 Objectives of the IPSASB
3.2.3 The Adoption of IPSASS
3.2.4 Relevant Definitions of IPSASB
3.3 Pension Acts 102 and 103 of 1979
3.4 Ministry of Finance Incorporated (MOFI)
3.5 The Annual Appropriation Acts.
3.6 Financial Regulations/Accounting Manual
3.6.1 Advantages of Financial Regulations or Accounting Manual.
3.6.2 Disadvantages of Financial Regulations/Accounting Manual.
3.7. Financial Memoranda for Local Government
3.7.1. Objectives of Financial Memoranda
3.7.2. Content of Local Government Financial Memoranda

CHAPTER FOUR
THE CONSTITUTIONAL AND FINANCIAL RESPONSIBILITIES OF PRINCIPAL GOVERNMENT OFFICERS
4.1 Learning Objectives
4.2 Introduction
4.3 Accounting Officer
4.3.1 Functions of the Accounting Officer
4.4 Accountant General of the Federation
4.4.1 Appointment of the Accountant-General of the Federation
4.4.2 Powers of the Accountant-General of the Federation
4.4.3 Functions of the Accountant-General of the Federation
4.5 Auditor General for the Federation
4.5.1 Appointment of Auditor-General for the Federation
4.5.2 Functions of the Auditor-General for the Federation
4.5.3 Constitutional Functions of the Auditor-General for the Federation
4.5.4 Independence of the Auditor-General of the Federation
4.5.5 Removal of the Auditor-General of the Federation
4.6 Auditor-General for State Government
4.6.1 Appointment of Auditor-General for State Government
4.6.2 Functions of Auditor-General for State Government
4.6.3 The Constitutional Functions of Auditor-General for State Government
4.7 Office of the Auditor-General for Local Government
4.7.1 Legal Framework
4.7.2 Statutory Functions of the Auditor-General for Local Government
4.7.3 The financial duties of the Auditor-General for Local Government
4.8 The Sub-Accounting Officer
4.8.1 Function of Sub-Accounting Officer
4.9 The Sub-Treasurer of the Federation
4.9.1 Functions of the Sub-Treasurer of the Federation
4.10 The Revenue Collector
4.10.1 Functions of the Revenue Collector
4.10.2 The Revenue Collectors‟ Cash Book
4.11 The Federal Pay Officer
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NOTE: This is a work in progress. All topics in the syllabus are covered but editing
for necessary corrections is in progress.
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4.11.1 Functions of the Federal Pay Officer
4.12 Director of Budget
4.12.1 Functions of the Director of Budget
4.13 Minister of Finance
4.13.1 Appointment of Minister of Finance
4.14 Summary
4.15 End of Chapter Review Questions.

CHAPTER FIVE
SOURCES OF GOVERNMENT REVENUE
5.1 Learning Objectives
5.2 Introduction
5.3 Sources of State & Local Government Finance
5.3.1 State/Central Government Revenues
5.3.1.1 Public Monies
5.3.2 Local Government/District Assembly Revenues
5.3.2.1 Central Government Transfers
5.3.2.2 Locally Generated Revenues
5.3.3 Loans and Grants
5.3.3.1 Loans
5.3.3.2 Grants
5.3.4 Other Public Monies
5.3.5 Trust Monies
5.4 Revenue Estimations
5.5 Federal/Unitary Government Accounts
5.5.1 Public Accounts
5.5.2 Departmental Accounts
5.5.3 Other Government Accounts
5.6 The Fund System of Accounting
5.6.1 Definition of Fund
5.6.2 Types of Fund
5.7 Summary of Types of Fund
5.8 Advantages of Fund
5.9 Disadvantages of Fund
5.10 Accounting Entries
5.11 Summary & Conclusion
5.12 End of Chapter Review Questions

CHAPTER SIX
GOVERNMENT EXPENDITURE
6.1 Learning Objectives
6.2 Introduction
6.3 Types of Expenditures
6.4 Expenditure Estimations
6.5 Expenditure Authorisation Procedures
6.6 The Concept of Warrant
6.7 Classes of Warrants
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for necessary corrections is in progress.
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6.7.1 Recurrent Expenditure Warrants
6.7.2 Specific or Capital Expenditure Warrants
6.8 Payment Procedure
6.9 Summary & Conclusion
6.10 End of Chapter Review Questions

CHAPTER SEVEN
PREPARATION OF VOUCHERS
7.1 Learning Objectives:
7.2 Introduction
7.2.1 Types of Vouchers
7.3 Payment Vouchers
7.3.1 Features of a Valid Payment Voucher
7.3.2 Voucher Certificate
7.3.3 Format of a Payment Voucher
7.3.4 Loss of Payment Voucher
7.4 Receipt Vouchers
7.4.1 Illustration of Receipt Voucher
7.5 Adjustment Vouchers
7.5.1 Uses of Adjustment Vouchers
7.5.2 Content of Adjustment Vouchers
7.6 Journal Vouchers
7.6.1 Supplementary Journal Voucher (SJV)
7.6.2 Principal Journal Voucher (PJV)
7.7 Accounting Treatment of Loss of Government Fund
7.7.1 Accounting Entries
7.8 Salary Vouchers
7.8.1 Personal Emolument Form
7.8.2 Personal Emolument Record Card
7.8.3 Group Register
7.8.4 Salary Variation Advice
7.8.5 Variation Control Sheet
7.8.6 Payroll Summary Voucher
7.8.7 Advice of Deduction from Salary
7.8.8 On-Payment Vouchers
7.8.9 Cheque or Cash Order Form
7.9 Integrated Personnel and Payroll Information System (IPPIS)
7.9.1 Functions of IPPIS
7.10 Summary
7.11 End of Chapter Review Questions

CHAPTER EIGHT
PRERARATION OF CASH BOOK, TRANSCRIPTS AND SUBSIDIARY ACCOUNTS.

8.1 Learning Objective
8.2 The Cash Office
8.2.1 Essential Features of a Cash Office
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NOTE: This is a work in progress. All topics in the syllabus are covered but editing
for necessary corrections is in progress.
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8.2.2 Functions of the Cash Office
8.2.3 Books of Accounts to Be Maintained In the Cash Office
8.3 The Cash Book
8.3.1 The Treasury Cash Book (TF15a)
8.3.1.1 Illustration
8.3.1.2 Illustration
8.3.2 Format of a Treasury Cash Book
8.4 Imprest Cash Book
8.4.1 Imprest Holder
8.4.2 Types of Imprest
8.4.3 Checks and Balances for Keeping an Imprest Account
8.4.4 Re-Imbursement of Imprest
8.5 Revenue Collector‟s Cash Book
8.6 Transcripts
8.6.1 Types of Transcripts
8.6.2 Preparation of Transcripts
8.6.3 Documents required to be Transmitted along with Transcript
8.6.4 Certificate of Cash and Bank Balances
8.7 Cheque Summary Register
8.8 Preparation of Bank Reconciliation Statement
8.9 Advances
8.9.1 Types of Advances
8.9.2 Advance Payment Vouchers
8.10 Departmental Vote Expenditure Allocation Book
8.10.1 Purpose of Keeping a Vote Book
8.10.2 Maintenance of Vote Book
8.10.3 Format of a Vote Book
8.10.4 Verification of Entries in the Vote Book
8.10.5 Functions of Officer Controlling Expenditure
8.11 Summary
8.12 End of Chapter Review Questions

CHAPTER NINE
FINANCIAL CONTROL SYSTEM IN GOVERNMENT
9.1 Learning Objectives
9.2 Introduction
9.3 The Concept of Financial Control
9.4 Control Structures
9.4.1 Legislative Control
9.4.2 The Executive Control
9.4.3 Departmental Controls
9.4.4 The Treasury Control
9.4.5 Ministry of Finance Control
9.5 Summary & Conclusion
9.6 End of Questions Review Questions

CHAPTER TEN
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NOTE: This is a work in progress. All topics in the syllabus are covered but editing
for necessary corrections is in progress.
Thanks.
PROCUREMENT PROCEDURES
10.1 Learning Objective
10.2 Due Process Procedures
10.2.1 Benefit of Due Process
10.3 Government Accounting and Contract
10.3.1 Contract Payment Voucher
10.3.2 Contract Payment Voucher
10.3.3 Contract Register
10.3.3.1 Content of a Contract Register
10.3.3.2 Documents Accompanying a Contract Payment Voucher
10.3.4 Tenders Board on Contracts
10.3.4.1 Types of Tenders Board
10.3.4.2 Procedure for Award of Contract
10.3.5 Post Award Activities
10.3.5.1 Tenders Board Information on Voucher
10.3.6 Other Contract Terms
10.4 Stores and Stores Accounting
10.4.1 Stores Classification
10.4.2 Further Classification of Stores
10.4.3 Documentation of Stores
10.4.4 Maintenance of Tally Card or Bin Card
10.4.5 Receipt Of and Payment for Stores
10.4.6 Transfer Of Stores
10.4.7 Issue of Stores
10.5 Store Procurement Procedure
10.5.1 Stores Handover
10.5.2 Loss of Stores
10.5.2.1 Procedure for Report of Loss of Stores
10.5.2.2. Summary of Actions to Be Taken By Concerned Officers In The Event Of Loss
of Store
10.6 Stock Valuation Methods
10.7 Summary
10.8 End Of Chapter 9 Review Questions

CHAPTER ELEVEN
COMPILATION OF FINANCIAL STATEMENTS AND SCHEDULES.
11.1 Learning Objective
11.2 The Federation Account
11.2.1 Statutory Allocation Formula
11.2.2 Sources of Revenue into the Federation Account
11.3 Consolidated Revenue Fund or Federal Government Account
11.3.1 Sources of Revenue into CRF
11.3.2 Charges against Consolidated Revenue Fund
11.4 Development Fund
11.4.1 Sources of Revenue into the Development Fund.
11.4.2 Charges against Development Fund
11.5 Contingencies Fund
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for necessary corrections is in progress.
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11.5.1 Operation of Contingencies Fund
11.6 The Revenue Mobilisation Allocation and Fiscal Commission
11.6.1 Functions of the Commission
11.7 Federal Government Final Accounts
11.7.1 The Estimate
11.7.2 The Official Gazette
11.7.3 The Annual Report of the Accountant General.
11.7.4 The Financial Statements
11.8 Cashflow Statements
11.8.1 Preparation of Cashflow Statement
11.9 Summary
11.10 End of Chapter 10 Review Questions

CHAPTER TWELVE
THE LOCAL GOVERNMENT
12.1 Learning Objectives
12.2 Definition
12.3 Functions of Local Government
12.4 Functions of Local Government Officers
12.4.1 Functions of the Chairman
12.4.2 Functions of the Vice-Chairman
12.4.3 Functions of the Secretary
12.4.4 Functions of the Treasurer
12.4.5 Functions of the Head of Personnel Management
12.4.6 Functions of the Council Legislature
12.5 Financial Control in Local Government
12.5.1 Internal Control
12.5.2 External Control
12.6 Financial Memoranda for Local Government
12.6.1 Objectives of the Financial Memoranda
12.6.2 Content of Local Government Financial Memoranda
12.7 Documentation of Revenue and Expenditure
12.7.1 Sources of Local Government Revenue
12.7.2 Local Government Revenue & Expenditure Sub-Head
12.7.3 Format of Statement of Revenue and Expenditure
12.7.4 Format of Statement of Assets and Liabilities
12.8 Audit of Local Government Accounts
12.8.1 Internal Auditing
12.8.1.1 Objectives of Internal Auditing of Local Government
12.8.2 External Auditing
12.8.2.1 Objectives of External Auditing of Local Government
12.9 Summary
12.10 End of Chapter 11 Review Questions

CHAPTER THIRTEEN
BUDGETING PROCESS

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NOTE: This is a work in progress. All topics in the syllabus are covered but editing
for necessary corrections is in progress.
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13.1 Learning Objectives
13.2 Introduction
13.3 Definition of Budget
13.4 Objectives of Budgeting
13.5 The Budgetary/Government Accounting Concept
13.6 Budgetary Control
13.6.1 Implementing a Good Budgetary Control System
13.6.2 Budgetary Control Responsibility
13.7 National Budgetary Control
13.7.1 National Budgetary Control Areas
13.8 Elements of Organisational Budgetary Control
13.8.1 Responsibility
13.8.2 Organisational Budgetary Variation
13.8.3 Organisational Budgetary Progress
13.9 Types of Budget Systems
13.9.1 The Traditional Budget
13.9.2 Performance Budgeting
13.9.3 The Zero-base Budgeting (ZBB)
13.9.4 Planning Programming Budgeting System (PPBS)
13.10 The Modern Expenditure Budgeting System - The Medium Term Expenditure
Framework (MTEF) (a) Benefits of the MTFEF Concept
13.11 The Budget Cycle
13.12 The Principle of Annuality
13.13 Summary & Conclusion
13.14 End of Chapter Review Questions

CHAPTER FOURTEEN
PENSION AND GRATUITY ACCOUNTING

14.1 Learning Objectives
14.2 Definition of Terms
14.3 Transfer/Merger of Service
14.4 Statutory Age of Retirement
14.5 Pension and Gratuity Table
14.6 Documents that should Accompany Application for Retirement Benefits
14.7 Conditions and Requirements for Processing of Gratuity and Pension
14.8 Determinants of Entitlements
14.9 Computation of Pension and Gratuity
14.10 Non Pensionable Service
14.11 Death Benefits
14.12 Pension Reform Act 2004
14.12.1 Objectives of the New Pension Reform Act. 2004
14.12.2 Exemption from New Pension Reform Act. 2004
14.12.3 Rates of Contribution
14.12.4 Retirement Savings Account (RSA)
14.12.5 Withdrawal from Retirement Savings Account
14.12.6 Retirement Benefits
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for necessary corrections is in progress.
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14.12.7 Tax Exemption
14.12.8 Pension Fund Commission
14.12.8.1 Composition of the Commission
14.12.8.2 Functions of the Commission
14.12.8.3 Powers of the Commission
14.12.9 Pension Fund Administrator (PFA)
14.12.9.1 Functions of Pension Fund Administrator (PFA)
14.12.10 Pension Assets Custodian (PAC)
14.12.10.1 Functions of Pension Assets Custodian (PAC)
14.12.11 Investment of Pension Fund
14.13 End of Chapter Review Questions

CHAPTER FIFTEEN
ETHICAL CONSIDERATIONS IN GOVERNMENT ACCOUNTING
15.1 Learning Objectives
15.2 Fiscal Responsibility Act. 2007
15.2.1 Establishment of the Fiscal Responsibility Commission by the Act
15.2.2 Functions of Fiscal Responsibility Commission
15.2.3 Funding of the Commission
15.2.4 Composition of the Commission
15.2.5 Qualification and Appointment of Members of the Commission
15.2.6 Tenure of the Members of the Commission
15.2.7 Powers of the Commission
15.2.8 Cessation to Hold Office by Members of the Commission
15.3 Public Procurement Act 2007
15.3.1 Establishment of National Council on Public Procurement
15.3.2 Composition of the Council
15.3.3 Functions of the Council
15.4 Bureau of Public Procurement
15.4.1 Objectives of the Bureau
15.4.2 Functions of the Bureau of Public Procurement
15.4.3 Powers of the Bureau
15.5 Code of Conduct Bureau
15.5.1 Composition of the Code of Conduct Bureau
15.5.2 Powers of Code of Conduct Bureau
15.5.3 Punishment by the Code of Conduct Tribunal on any Public Officer Guilty of
the Provisions of the Code of Conduct Bureau
15.5.4 General
15.6 Economic and Financial Crimes Commission (EFCC)
15.6.1 Composition of EFCC
15.6.2 Functions of EFCC
15.6.3 Powers of the Commission
15.7 Independent Corrupt Practices and other Related Offences Commission (ICPC)
15.7.1 Composition of the Commission
15.7.2 Appointment of Members
15.7.3 Tenure
15.7.4 Duties/Functions of ICPC
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