Question 1 The first task of John Nyamah, a newly appointed Assistant Accountant of Azadagli Municipal Assembly, is to prepare the 2022 financial statements of the Assembly in compliance with the International Public Sector Accounting Standards (IPSAS), the Public Financial Management Act 2016 (Act 921) and the current Chart of Accounts of the Republic of Ghana. Nyamah submitted on 5th March 2023 the draft financial statements, presented below, to the Director of Finance for review. Page 1 of 10 Notes to the Financial Statements Notes 1: Decentralised Transfer District Assembly Common Fund Salary subventions District development facility Other grants Notes 2: Internally Generated Fund Licences Fees and Charges Rates Sanitation grant from the central government Investment Interest Rent Note 3: Donations 200,000,000220,000,00075,000,0005,000,000500,000,000 Concerned Citizens Network made the donation to the Assembly Note 4: Compensation for employees Established post salaries Non-established post salaries Travel allowances Travel and Transport Assembly members sitting allowance Pensions Note 5: Use of goods and Services Car maintenance allowances Repairs and Maintenance Office expenses Computers for the Office Training, Seminars and Conferences Note 5: Capital Expenditure (CAPEX) Construction of new market Purchase of motor vehicles Access roads Furniture and refurbishment. Plant and Machinery 80,000,000150,000,00030,000,00010,000,0006,000,0004,000,000280,000,000 200,000,00040,000,00030,000,00010,000,00015,000,0005,000,000300,000,000 12,000,00018,000,00020,000,00040,000,00010,000,000100,000,000 120,000,000 80,000,000 200,000,000 150,000,000 50,000.000 Page 2 of 10 Note 6: Property Plant and Equipment Property, Plant and Equipment are accounted for in the Statement of Financial Performance. As a Senior Accountant of Azadagli Municipal Assembly, you are to review and provide recommendations for improvement to the financial statements. Required: a) Discuss the extent to which the financial statements presented comply with the components of financial statements required under IPSAS1: Presentation of Financial Statements. (10 marks) b) Discuss, with evidence, the extent to which the financial statements presented reflect the qualitative characteristics of general-purpose financial statements under Chapter 3 of Conceptual Framework of Financial Reporting in the Public Sector. (10 marks) c) Under no more than five headings (categories), discuss the shortcomings you have observed in the financial statements presented, if any. Note that you must categorise the observations. (10 marks) d) Provide recommendations for improvement based on your reviews. (5 marks) (Total: 35 marks) Question 1 The first task of John Nyamah, a newly appointed Assistant Accountant of Azadagli Municipal Assembly, is to prepare the 2022 financial statements of the Assembly in compliance with the International Public Sector Accounting Standards (IPSAS), the Public Financial Management Act 2016 (Act 921) and the current Chart of Accounts of the Republic of Ghana. Nyamah submitted on 5th March 2023 the draft financial statements, presented below, to the Director of Finance for review. Page 1 of 10 Notes to the Financial Statements Notes 1: Decentralised Transfer District Assembly Common Fund Salary subventions District development facility Other grants Notes 2: Internally Generated Fund Licences Fees and Charges Rates Sanitation grant from the central government Investment Interest Rent Note 3: Donations 200,000,000220,000,00075,000,0005,000,000500,000,000 Concerned Citizens Network made the donation to the Assembly Note 4: Compensation for employees Established post salaries Non-established post salaries Travel allowances Travel and Transport Assembly members sitting allowance Pensions Note 5: Use of goods and Services Car maintenance allowances Repairs and Maintenance Office expenses Computers for the Office Training, Seminars and Conferences Note 5: Capital Expenditure (CAPEX) Construction of new market Purchase of motor vehicles Access roads Furniture and refurbishment. Plant and Machinery 80,000,000150,000,00030,000,00010,000,0006,000,0004,000,000280,000,000 200,000,00040,000,00030,000,00010,000,00015,000,0005,000,000300,000,000 12,000,00018,000,00020,000,00040,000,00010,000,000100,000,000 120,000,000 80,000,000 200,000,000 150,000,000 50,000.000 Page 2 of 10 Note 6: Property Plant and Equipment Property, Plant and Equipment are accounted for in the Statement of Financial Performance. As a Senior Accountant of Azadagli Municipal Assembly, you are to review and provide recommendations for improvement to the financial statements. Required: a) Discuss the extent to which the financial statements presented comply with the components of financial statements required under IPSAS1: Presentation of Financial Statements. (10 marks) b) Discuss, with evidence, the extent to which the financial statements presented reflect the qualitative characteristics of general-purpose financial statements under Chapter 3 of Conceptual Framework of Financial Reporting in the Public Sector. (10 marks) c) Under no more than five headings (categories), discuss the shortcomings you have observed in the financial statements presented, if any. Note that you must categorise the observations. (10 marks) d) Provide recommendations for improvement based on your reviews. (5 marks) (Total: 35 marks)