The following is a summarized list of the receipts and payments extracted from the ledger of the Consolidated Fund account of the Central Government of Ghana for the year ended 31 December, 2020: Cash payment to support the aged Foreign travelling cost Corporate Income tax Loans and advances granted during the year UN Peace keeping Expenses Refund of medical expenses of paupers Transfer to the Road Fund Borrowing from the domestic commercial banks Medical support for pregnant women Training and capacity building Value added taxes Domestic debt interest paid Other expenses Subsidies on utilities Other bilateral grants National award and celebrations Recoveries of opening Taxes Receivables Net Treasury Operations Repayment of domestic borrowing during the year Repayment of external borrowing during the year Transfer to District Assembly Common Fund (DACF) Seminar and workshops Recoveries of loans and advances GHc'000 3,450 1,250 6,450 8,560 1,410 1,960 1,320 3,280 1,280 1,730 10,870 1,340 1,790 1,280 1,380 1,120 1,230 1,740 1,810 1,640 1,590 1,820 820 Page 1 of 5 14,270 1,570 2,680 1,980 2,170 1,230 5,120 1,650 860 3,140 2,840 2,340 6,110 External borrowing during the year External debt interest paid Grant received in support of school feeding programme Subsidies on fuel Infrastructure works in progress Repairs and maintenance Fines, Penalties and forfeiture Transfer to GET Fund Administrative cost Fees and charges for services rendered Non-established post salaries Financial investment during the year Established post salaries Custom and Excise duties Purchase of property plant and equipment 13% SSF contribution Rent tax Staff allowances Transfer to other statutory funds Proceeds from disposal of PPE State Protocol Expenses Infrastructure works completed Trust funds Income tax (PAYE) Capital project grants received Dividends and other investment income 6,790 1,680 1,260 3,960 2,050 1,110 2,910 720 6,170 1,780 8,360 1,270 1,240 The following additional information is made available: 1. The Government of Ghana applies the full accrual basis International Public Sector Accounting Standards (IPSAS) as the basis for preparing its financial statements. 2. The approved budget for the 2020 fiscal year excluding that of capital expenditure and investments is as follows: Original Budget Supplementary Budget Direct taxes Indirect taxes Non-tax revenue GHc 000 8,000 11,000 9,000 GHc '000 5,000 6,000 2000 Page 2 of 5 Grants Compensation of employees Goods and Service cost Public debt interest Subsidies Transfers Social benefits Other expenses Consumption of Fixed Capital 8,000 8,000 6,000 2,000 2,000 6,000 2,000 2,000 2,000 3,000 3,000 1,000 2,000 2,000 1,000 1,000 3,500 3. Balances extracted from the ledger of the Consolidated Fund as at 1/01/20 consisted of: GHC 000 Consumption of Fixed Capital: PPE Infrastructure completed PPE Infrastructure completed Trust Funds Inventories Loans and advances Domestic Debt Financial Investments External Debt Taxes Receivable Payables Cash and cash equivalent Accumulated fund Infrastructure in progress Treasury bills issued Revaluation Reserve 2,590 1980 12,310 4,320 3,210 1,980 7,640 9,870 4,560 7,630 2,480 1,430 2,890 8,750 6,740 3,480 3,980 6. Inventories included in use of goods and services available at the end of the year was as follows: Inventories for use Inventories for sale GHc'000 GHc'000 Historical Cost 2,000 2,500 Replacement Cost 1,000 800 Net Realizable Value 900 1,000 Page 3 of 5 4. The probability of receipt of the outstanding opening Taxes Receivables as at 15th February 2021 was only 5% as the entity from which government expects to collect the tax from had been declared insolvent. In December 2020 Investments with a carrying amount of GHc1,110,000 was liquidated for GHc 1,020,000. 5. The capital project grant was received from the Government of Japan in November 2020. The Government of Ghana reasonably expects to comply with the grant agreement. The Government of Ghana is unlikely to comply with some of the conditions for grants amounting to GHC450,000 of the other bilateral grants. The Government of Ghana has already complied with grant condition in respect of a bilateral grant from the South Korea amounting to GHc1,890,000. This grant is highly probable to be received in the first month after the financial year end. 7. Domestic debt interest and external debt interest amounting to GHc1,210,000 and GHc540,000 respectively was due but not paid due to the financial constraints during the year. 8. It is the policy of government to provide for consumption of fixed assets on all non- financial assets acquired during the year and those already existing using the straight line method at the following rates: Property, Plant and Equipment 25% Infrastructure asset completed 20% No depreciation is charged on assets sold during the year. 9. Salaries and other emoluments outstanding during the year amounted to GHc1,270,000 while that of use of goods and services amounted GHc760,000. Additionally, GHc3,030,000 of rent paid during the year relate to 2021. GHc570,000 relating to other expenses was outstanding as at 31" December, 2020. 10. As at 31" December, 2020, corporate tax assessments amounting to GHc4,500,000 was still outstanding to be paid by corporate entities to government, whilst the total amount owed to government as at 31" December, 2020 in respect of taxes on goods and services stood at GHc3,880,000. It is estimated that, only 90% of the outstanding taxes to government may be recovered. 11. The Government of Ghana applies the revaluation model for its non-current assets (existing prior to the adoption) in line with IPSAS 17: Property, Plant and Equipment. In this respect, a Professional Valuer was engaged who produced the following values as at 31* December, 2020: Property, Plant and Equipment GHc 14,560,000; Infrastructural assets completed GHc24,960,000 and Infrastructural assets in progress GHc18,210,000. GHc5,740,000 of Infrastructure in progress was completed and transferred to Infrastructure 11. The Government of Ghana applies the revaluation model for its non-current assets (existing prior to the adoption) in line with IPSAS 17: Property, Plant and Equipment. In this respect, a Professional Valuer was engaged who produced the following values as at 31 December, 2020: Property, Plant and Equipment GHc 14,560,000; Infrastructural assets completed GHc24,960,000 and Infrastructural assets in progress GHc 18,210,000. GHc5,740,000 of Infrastructure in progress was completed and transferred to Infrastructure Page 4 of 5 at 31* December, 2020. Prior to the revaluation exercise, Property, Plant and Equipment with a cost of GHc1,040,000 and accumulated Depreciation of GHc330,000 was sold. All additions to non-current assets were done before 31" December, 2020. You are required to: Prepare the following financial statements in accordance with the PFM laws of Ghana, the Chart of Accounts of government and relevant accrual basis IPSAS: a) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2020; 25 marks b) Statement of Financial Position of the Consolidated Fund as at the year ended 31 December 2020; 25 marks c) Statement of Changes in Net Assets and Equity for the year ended 31* December, 2020; 5 marks d) Separate Statement of Budget Comparison with Actuals in accordance with IPSAS 24; and 20 marks e) Show detailed workings for all derived answers 25 marks Total Marks: 100% The following is a summarized list of the receipts and payments extracted from the ledger of the Consolidated Fund account of the Central Government of Ghana for the year ended 31 December, 2020: Cash payment to support the aged Foreign travelling cost Corporate Income tax Loans and advances granted during the year UN Peace keeping Expenses Refund of medical expenses of paupers Transfer to the Road Fund Borrowing from the domestic commercial banks Medical support for pregnant women Training and capacity building Value added taxes Domestic debt interest paid Other expenses Subsidies on utilities Other bilateral grants National award and celebrations Recoveries of opening Taxes Receivables Net Treasury Operations Repayment of domestic borrowing during the year Repayment of external borrowing during the year Transfer to District Assembly Common Fund (DACF) Seminar and workshops Recoveries of loans and advances GHc'000 3,450 1,250 6,450 8,560 1,410 1,960 1,320 3,280 1,280 1,730 10,870 1,340 1,790 1,280 1,380 1,120 1,230 1,740 1,810 1,640 1,590 1,820 820 Page 1 of 5 14,270 1,570 2,680 1,980 2,170 1,230 5,120 1,650 860 3,140 2,840 2,340 6,110 External borrowing during the year External debt interest paid Grant received in support of school feeding programme Subsidies on fuel Infrastructure works in progress Repairs and maintenance Fines, Penalties and forfeiture Transfer to GET Fund Administrative cost Fees and charges for services rendered Non-established post salaries Financial investment during the year Established post salaries Custom and Excise duties Purchase of property plant and equipment 13% SSF contribution Rent tax Staff allowances Transfer to other statutory funds Proceeds from disposal of PPE State Protocol Expenses Infrastructure works completed Trust funds Income tax (PAYE) Capital project grants received Dividends and other investment income 6,790 1,680 1,260 3,960 2,050 1,110 2,910 720 6,170 1,780 8,360 1,270 1,240 The following additional information is made available: 1. The Government of Ghana applies the full accrual basis International Public Sector Accounting Standards (IPSAS) as the basis for preparing its financial statements. 2. The approved budget for the 2020 fiscal year excluding that of capital expenditure and investments is as follows: Original Budget Supplementary Budget Direct taxes Indirect taxes Non-tax revenue GHc 000 8,000 11,000 9,000 GHc '000 5,000 6,000 2000 Page 2 of 5 Grants Compensation of employees Goods and Service cost Public debt interest Subsidies Transfers Social benefits Other expenses Consumption of Fixed Capital 8,000 8,000 6,000 2,000 2,000 6,000 2,000 2,000 2,000 3,000 3,000 1,000 2,000 2,000 1,000 1,000 3,500 3. Balances extracted from the ledger of the Consolidated Fund as at 1/01/20 consisted of: GHC 000 Consumption of Fixed Capital: PPE Infrastructure completed PPE Infrastructure completed Trust Funds Inventories Loans and advances Domestic Debt Financial Investments External Debt Taxes Receivable Payables Cash and cash equivalent Accumulated fund Infrastructure in progress Treasury bills issued Revaluation Reserve 2,590 1980 12,310 4,320 3,210 1,980 7,640 9,870 4,560 7,630 2,480 1,430 2,890 8,750 6,740 3,480 3,980 6. Inventories included in use of goods and services available at the end of the year was as follows: Inventories for use Inventories for sale GHc'000 GHc'000 Historical Cost 2,000 2,500 Replacement Cost 1,000 800 Net Realizable Value 900 1,000 Page 3 of 5 4. The probability of receipt of the outstanding opening Taxes Receivables as at 15th February 2021 was only 5% as the entity from which government expects to collect the tax from had been declared insolvent. In December 2020 Investments with a carrying amount of GHc1,110,000 was liquidated for GHc 1,020,000. 5. The capital project grant was received from the Government of Japan in November 2020. The Government of Ghana reasonably expects to comply with the grant agreement. The Government of Ghana is unlikely to comply with some of the conditions for grants amounting to GHC450,000 of the other bilateral grants. The Government of Ghana has already complied with grant condition in respect of a bilateral grant from the South Korea amounting to GHc1,890,000. This grant is highly probable to be received in the first month after the financial year end. 7. Domestic debt interest and external debt interest amounting to GHc1,210,000 and GHc540,000 respectively was due but not paid due to the financial constraints during the year. 8. It is the policy of government to provide for consumption of fixed assets on all non- financial assets acquired during the year and those already existing using the straight line method at the following rates: Property, Plant and Equipment 25% Infrastructure asset completed 20% No depreciation is charged on assets sold during the year. 9. Salaries and other emoluments outstanding during the year amounted to GHc1,270,000 while that of use of goods and services amounted GHc760,000. Additionally, GHc3,030,000 of rent paid during the year relate to 2021. GHc570,000 relating to other expenses was outstanding as at 31" December, 2020. 10. As at 31" December, 2020, corporate tax assessments amounting to GHc4,500,000 was still outstanding to be paid by corporate entities to government, whilst the total amount owed to government as at 31" December, 2020 in respect of taxes on goods and services stood at GHc3,880,000. It is estimated that, only 90% of the outstanding taxes to government may be recovered. 11. The Government of Ghana applies the revaluation model for its non-current assets (existing prior to the adoption) in line with IPSAS 17: Property, Plant and Equipment. In this respect, a Professional Valuer was engaged who produced the following values as at 31* December, 2020: Property, Plant and Equipment GHc 14,560,000; Infrastructural assets completed GHc24,960,000 and Infrastructural assets in progress GHc18,210,000. GHc5,740,000 of Infrastructure in progress was completed and transferred to Infrastructure 11. The Government of Ghana applies the revaluation model for its non-current assets (existing prior to the adoption) in line with IPSAS 17: Property, Plant and Equipment. In this respect, a Professional Valuer was engaged who produced the following values as at 31 December, 2020: Property, Plant and Equipment GHc 14,560,000; Infrastructural assets completed GHc24,960,000 and Infrastructural assets in progress GHc 18,210,000. GHc5,740,000 of Infrastructure in progress was completed and transferred to Infrastructure Page 4 of 5 at 31* December, 2020. Prior to the revaluation exercise, Property, Plant and Equipment with a cost of GHc1,040,000 and accumulated Depreciation of GHc330,000 was sold. All additions to non-current assets were done before 31" December, 2020. You are required to: Prepare the following financial statements in accordance with the PFM laws of Ghana, the Chart of Accounts of government and relevant accrual basis IPSAS: a) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2020; 25 marks b) Statement of Financial Position of the Consolidated Fund as at the year ended 31 December 2020; 25 marks c) Statement of Changes in Net Assets and Equity for the year ended 31* December, 2020; 5 marks d) Separate Statement of Budget Comparison with Actuals in accordance with IPSAS 24; and 20 marks e) Show detailed workings for all derived answers 25 marks Total Marks: 100%