DEPARTMENT OF ACCOUNTING

FACULTY OF MANAGEMENT SCIENCES

KADUNA STATE UNIVERSITY, KADUNA

PROGRAM: POSTGRADUATE DIPLOMA IN ACCOUNTING (PGD)

COURSE: ASCE XXX (PUBLIC SECTOR ACCOUNTING AND REPORTING)

COURSE: LOADING: 2 UNITS

SEMESTER: SECOND (2ND)

MODULE V: TREASURY FINAL ACCOUNTS

TABITHA PHLIPFINAL ACCOUTNS UNIT

It is the ultimate responsibility of the Final Accounts unit within the Treasury Department of the
Accountant-General’s office that is responsible for the production of the final accounts of government.
To do this, the unit obtains information from various sources such as:

(a) Transcripts from the Ministries and Extra-Ministerial Departments.

(b) Accounts from the Federal Pay Offices, States and Local Government Councils.

(c) Accounts from the Nigeria High Commissions Overseas

FINANCIAL STATEMENTS PRODUCED BY THE TREASURY

The types, number and format of financial statements produced by the treasury in Nigeria has
undergone several changes. By law, with effect from 2016, the Accrual-bases International Public Sector
Accounting Standards (IPSAS) are operational in practice. However, it is common knowledge that apart
from some public sector entities including Millennium Development Agencies, most governments at the
federal, states and local government councils still maintain and operate the cash based system. As a
result the two systems will be presented here. The cash based system is presented here while the accrual
based IPSAS are discussed later. With effect from January, 2003, the following statutory financial
statements are prepared at the Federal and State Government Levels:

1. Preface to the financial statements: This is a statement by the Minister of Finance/Commissioner

for Finance that gives an overview of the financial statements of the Government as prepared
and presented by the Accountant-General. The overview cover among other things, the
following: (i) overview of the global economy, (ii) Evaluation of Government performance for
the year under review, (iii) Future economic outlook. And any other relevant remarks.

2. Statement of responsibility for the financial statements: Here the Accountant-General of the
Federation (or the State) states, among others, that the financial statements have been prepared
in accordance with the provision of the Finance (Control and Management) Act, Cap 144 LFN
1990 (as amended) and in compliance with the generally accepted accounting practice.

3. Statement of opinion of the Auditor-General. This is in the form of a Certificate given by the
Auditor –General indicating whether or not the financial statements present a true and fair view
of the financial position of Government as at 31st December of the relevant Year and its
operations for the year ended on that date.

4. Statement No. 1 Cash Flow Statement

 5. Statement No. 2 Statement of ssets and Liabilities

6. Statement No. 3 Statement of Consolidated Revenue Fund

7. Statement No. 4 Statement of Capital Development Fund

8. Notes to the Financial Statements The formats of the statements are stated below:

FORMAT OF STATEMENT NO 1

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DEC., 20XX

NOTES CURRENT YR PREVIOUS YR

N N

Cash flow from Operating Activities

Receipts

Statutory Revenue Allocation 3 X X

VAT 4 x x

Internally Generated Revenue 5 x x

Grants / Subventions 6 x x Miscellaneous
7 x_ x_ Total Receipts.
X x

Payments

Personnel Emoluments 8 (x) (x) Pensions and

Gratuities (x) (x) Consolidated Revenue Fund Charges
(x) (x) Overhead Costs
(x) (x) Public Debt Charges
(x) (x) Recurrent Grants and Subventions
(x) (x) Subsidies
(x) (x) Miscellaneous Expenses 9 (x)
(x) Total Payments. X
X
Net Cash Flow from Operating Activities.
(x) (x) Cash Flow from Investment Activities:

Purchase / Construction of assets 10 (x) (x) Purchase of

Financial Market Instruments. (x) (x)

Proceeds from sale of Assets. X x_ Net Cash Flow

from Investing Activities. X x

Cash Flow from Financial Activities:

Proceeds from Loans and Other Borrowings 11 x x

Dividends Received 12 x x Repayment of Loans
13 (x) (x)

Net Cash Flow from Financing Activities x x

Net Increase/ (Decrease) in cash & cash Equivalents x x

Cash & Its equivalent at l/2/20xx. X x

Cash & Its equivalent at 31/12/20xx x x

FORMAT OF STATEMENT NO 2

STATEMENT OF ASETS AND LIABILITIES FOR THE YEAR ENDEC31ST DECEMBER. 2XXX

ACTUAL

NOTES CURRENT PREVIOUS

YEAR YEAR

N N

ASSETS:

Liquid Assets:

Cash and Bank Balances 14 xx xx

Others - 15 xx xx
xxx
xxx

Investments:

Min. Of Finance Incorporated 16 xx xx Advances

17 xx XX Treasury clearance
a/cs 18 xx xx
xxx XXX

LIABILITIES:
Consolidated Revenue Fund 19 xx xx
Capital Development Fund 20 xx xx Other
Government Funds 21 xx xx
xxx xxx

Foreign Loans 22 xx xx Internal Loans

23 xx xx Development Loan
Stock 24 xx xx
xxx xxx

STATEMENT NO. 3

CONSOLIDATED REVENUE FUND FOR THE YEAR ENDED 31ST DECEMBER 20XX

ACTUAL NOTES BUDGET ACTUAL VARIANCE PREVIOUS

CURRENT CURRENT

YEAR YEAR YEAR %

Nm Nm Nm

Xx Opening Balance xx xx x

Add Revenue:

Xx Statutory Revenue Allocation

Xx Fines & Sales 25 xx xx

Xx Earning & Sales 26 xx xx

Xx Rent on Government Property xx xx

Xx Interest & Dividend 27 xx xx x

Xx Taxes (Direct & Indirect) 28 xx xx x

Xx Miscellaneous 29 xx xx x

XXX Total Revenue (a) xxx xxx X

Less: Expenditure:

Xx Administrative Services xx xx xx

Xx Education Services xx xx xx

Xx Transport Services 30 xx xx xx

Xx Health Services xx xx XX

Xx Agriculture Services 31 xx xx xx

Xx Others of General Nature xx xx xx

Xx Subsidies xx xx xx

Xx Miscellaneous 32 xx xx xx
Xxx Total Expenditure (b) xxx xxx x

Xxx Operating Balance (a-b) _ xxx xxx x

AppropriatIions/Transfers:

Xx Capital Development Fund xx xx x

Xx Loan Repayment Fund xx xx x

Xxx Closing Balance xxx xxx x