(a) You have just been posted to the Office of the Accountant General Expenditure Unit. The Unit is responsible for the consolidation of Government accounts. You have been asked to analyze the information given below in the Trial Balance of the Consolidated Fund for the year ended 31 December, 2017. Debit K'Million Credit K'Million 6,760 2,010 230 3,350 1,260 750 1,040 1,450 1,740 250 410 560 2,470 Salaries - Superscale Salaries - Div I & II Salaries - Div III Adminstrative cost Conferences & seminars Foreign travel Social benefits Domestic debt interest External debt Interest Purchase of vehicles Purchase of equipment Construction of infrastructure Cash and bank PAYE Corporation tax VAT Fines Fees Fuel Levy Grants Treasury bits Bonds Euro Bond Blateral & mutilateras debt Other expenditure Accumulated Fund 7,330 5,010 2,320 150 310 700 430 11,120 13,460 7,460 19,660 910 44,760 67,950 67,950 Additional information: 1. 2. 3. The Current Chart of Accounts based on the GFS 2001 is used to classify revenues and expenditure. VAT of K50m was due to Government but was not received by Government as at 31 December, 2017 A grant agreement signed 2016 by the Government of Zambia and the Swedish Embassy for the purchase of various medical supplies for Kabwata Health Centre was received and paid for in November 2017, Required: Define the following terms as used in Public Sector Accounting and give two (2) Example of each dassification. 1. Financial Assets (3 marks) 2. Non-Financial Liabilities (3 marks) 0 Using Cash Basis IPSAS of Accounting, outline mandatory disclosure requirements for presentation of financial statements. (4 marks) (m) Using the information from the Trial Balance prepare Statement of Financial Performance for the Consolidated Fund for the year ended 31 December 2017. (20 marks) (b) The next assignment as the accountant in charge of the Expenditure Unit is to assist the Director of Finance in the ministry set up a budget committee. You have also been asked to review the recently issued 2019-2021 Budget Call Circular. As the secretary to the Budget Committee, you have been asked to make a presentation to the members of the committee covering the following issues: Required: 0 Briefly explain the Medium Term Expenditure Framework (MTEF). (5 marks) (0) Briefly explain the Budget Call Circular and explain the difference between Call Circular and the MTEF. marks) Briefly describe two (2) methods of Budgeting that government can use in preparing the annual budgets. marks) (a) You have just been posted to the Office of the Accountant General Expenditure Unit. The Unit is responsible for the consolidation of Government accounts. You have been asked to analyze the information given below in the Trial Balance of the Consolidated Fund for the year ended 31 December, 2017. Debit K'Million Credit K'Million 6,760 2,010 230 3,350 1,260 750 1,040 1,450 1,740 250 410 560 2,470 Salaries - Superscale Salaries - Div I & II Salaries - Div III Adminstrative cost Conferences & seminars Foreign travel Social benefits Domestic debt interest External debt Interest Purchase of vehicles Purchase of equipment Construction of infrastructure Cash and bank PAYE Corporation tax VAT Fines Fees Fuel Levy Grants Treasury bits Bonds Euro Bond Blateral & mutilateras debt Other expenditure Accumulated Fund 7,330 5,010 2,320 150 310 700 430 11,120 13,460 7,460 19,660 910 44,760 67,950 67,950 Additional information: 1. 2. 3. The Current Chart of Accounts based on the GFS 2001 is used to classify revenues and expenditure. VAT of K50m was due to Government but was not received by Government as at 31 December, 2017 A grant agreement signed 2016 by the Government of Zambia and the Swedish Embassy for the purchase of various medical supplies for Kabwata Health Centre was received and paid for in November 2017, Required: Define the following terms as used in Public Sector Accounting and give two (2) Example of each dassification. 1. Financial Assets (3 marks) 2. Non-Financial Liabilities (3 marks) 0 Using Cash Basis IPSAS of Accounting, outline mandatory disclosure requirements for presentation of financial statements. (4 marks) (m) Using the information from the Trial Balance prepare Statement of Financial Performance for the Consolidated Fund for the year ended 31 December 2017. (20 marks) (b) The next assignment as the accountant in charge of the Expenditure Unit is to assist the Director of Finance in the ministry set up a budget committee. You have also been asked to review the recently issued 2019-2021 Budget Call Circular. As the secretary to the Budget Committee, you have been asked to make a presentation to the members of the committee covering the following issues: Required: 0 Briefly explain the Medium Term Expenditure Framework (MTEF). (5 marks) (0) Briefly explain the Budget Call Circular and explain the difference between Call Circular and the MTEF. marks) Briefly describe two (2) methods of Budgeting that government can use in preparing the annual budgets. marks)
