ACCOUNTING FOR GOVERNMENT 9/24/2018

REVENUE

SOURCES OF GOVERNMENT REVENUE

 Internal sources
1. Tax
ACCOUNTING FOR
2. Licences
GOVERNMENT REVENUE 3. Charges
MSAIDI, S. G. 4. Fines
5. Issue of bonds
[CPA(T), MSC. AF, BAF]
6. Statutory minimum reserves
7. etc

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SOURCES cont… Receivers of revenue

 External sources  The collection of specified items of public revenue is
the responsibilities of revenue.
1. Borrowing i.e. internally and externally  A great part of government revenue is collected by the
2. Grants Treasury (about 90%).
 The remaining of 10% is collected by other Ministries,
3. Etc. Departments, authorities, agencies and Regions.
 Receivers of revenue must ensure that proper
registers/records of revenue receivable and those
actually received are maintained and that all revenue
received is properly safeguarded against fraud and
misappropriation by depositing the same to the Bank.

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Receivers of revenue cont… Receivers of revenue cont…

 s/he appoint collectors of revenue and ensure that b) The duplicate copy is attached with the Revenue
adequate suppliers of prenumbered approved forms such as
Exchequer Receipt Vouchers, Revenue Collectors Cash Book, Collectors’ cash book.
Bank Pay in Slips, Return of Unused Counterfoils and other c) The triplicate is placed in a file as a reserve in
forms are made available to them.
the event the accounting copy (duplicate) is
 Revenue tendered by the Revenue Collector will be
acknowledged by raising/issuing an Exchequer Receipt or misplaced.
other approved acknowledgement receipt form. d) The quadruplicate remains in the receipt book.
 Such receipt are normally prepared by carbon process in
four copies and distributed as follows;
a) The original copy is handled over to the person tendering • The revenue account code to be credited will
money
also be indicated in the receipt form.

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MSAIDI, SEVERIN GASPER [CPA(T),

MSc. AF, BAF] 1
ACCOUNTING FOR GOVERNMENT
REVENUE
Receivers of revenue cont…
 After the revenue collector has lodged the revenue in
the bank account, he submit the following documents
to the Ministerial/Regional/District Cashier or the
Internal Revenue Collector as the case may be for
posting in the revenue cash book.
i. Revenue Collector’s Cash Book folios
ii. Duplicate copies of all Exchequer Receipt Vouchers or
other forms of receipts issued and entered in the
Revenue Collector’s Cash Book.
iii. A copy of the bank pay in slip duly stamped as
acknowledgement by the bank.
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Inward remittances
 It is a considerable amount of revenue which may be received
through the post office by the way of cheques, postal orders, money
orders etc.
 It is necessary that all such revenue is promptly recorded in a
register containing the following minimum information.
i. The date of receipt
ii. Where the money is received from
iii. The post office reference numbers e.g. postal order number/
money order number/ register number etc
iv. Amount received
v. Analysis of money received
vi. Receipt number and date issued to acknowledge the money.
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Revenue bank account
 Revenue received by/and for Internal Revenue Officers are
deposited to the Bank Account designated “PMG Recurrent
Revenue Account A”
 Revenue received by/and for Receivers of Revenue other
than the Treasury are deposited to Bank Account
designated “PMG Recurrent Revenue Account B.”
 The Internal Revenue Officers in Dar es salaam and all other
cities bank their revenue at the Bank of Tanzania.
 The Internal Revenue Officers stationed outside Dar es
salaam bank their revenue to the nearest National
Microfinance Bank (NMB) branches.
 All the above bank accounts are numbered by the Banks
concerned on the basis of their own numbering schemes.
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MSAIDI, SEVERIN GASPER [CPA(T),
MSc. AF, BAF]
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Receivers of revenue cont…
 Where there are no banking facilities, the Revenue Collectors will
submit the Revenue Collectors’ Cash Book sheets duly completed
and supported by copies of all receipts issued together with cash to
the nearest Ministerial/Regional/District cashier or Internal Revenue
Officer.
 The cashier or Internal Revenue Officers will issue an Exchequer
Receipt for the amounts lodged with them and keep the money for
safe custody pending lodgments to the Bank.
 All the documents in support of revenue paid to the Internal
Revenue Officer but receivable by an accounting officer other than
the principal Secretary to the Treasury will be submitted to the
appropriate Receiver of Revenue for posting into Revenue Receipts
cash book.
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Acceptance of inward remittance
 Generally, cheques may be accepted in payment of government dues. The
following factors, however, should be taken into account in this connection;
a) Every cheque, postal order or money order received for the credit of an
account of the government should immediate be crossed if it has not
already been crossed by the person tendering it.
b) Third part cheques should not be accepted form members of the public.
All cheques for the credit of government account must be drawn in
favour of the appropriate Ministry, Region, Department etc
c) Where an officer has reasonable grounds for believing that a cheque
tendered to him will not be honoured, he may request the payer to
tender cash instead.
d) A post-dated cheque should not be accepted. Where on occasion this is
done the official receipt should not be issued before the cheques
concerned matures.
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Revenue bank account cont…
• Double entry system is as follows;
– DR. NMB/BOT Cash A/c
– CR. NMB/BOT PMG Recurrent Revenue A/c A or B
Being to record the deposits of government
revenues made of Receivers of Revenue and
Internal Revenue Officers.
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ACCOUNTING FOR GOVERNMENT 9/24/2018
REVENUE

Procedure of transmission to
Procedure cont…
exchequer a/c
• NMB transfers weekly to the Bank of Tanzania amounts • At BOT;
credited to PMG Recurrent Revenue Account A or/and B in – DR. BOT PMG Recurrent Revenue A/c A or B
their books. – CR. MOF Exchequer A/c
• The transfer advice in duplicate is accompanied by the original Being to record the TRANSFER of government revenues made of
copies of Bank Pay in Slips. Receivers of Revenue and Internal Revenue Officers from NMB
to Treasury.
• Entries are;
– DR. NMB PMG Recurrent Revenue A/c A or B
• The original copies of the Bank Pay in Slips will
also be submitted by the Bank to the Accountant
– CR. MOF Exchequer A/c
General who from time to time issues
Being to record the TRANSFER of government revenues
made of Receivers of Revenue and Internal Revenue
instructions to the BOT to transfer the amounts
Officers from NMB to Treasury. to the Exchequer Account.

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REFUND OF REVENUE REFUND OF REVENUE cont…

 Those refunds must be made by the Receiver of Revenue
concerned.
 The amounts will be debited to the same revenue account which
was credited at the time of receipt irrespective of the year of receipt
and will be effected by means of a cheque drawn from special
account styled “PMG Recurrent Revenue Refund Account” at the
BOT.
 The PV for each refund will after being prepared be authorized by
the Receiver of Revenue and distributed as follows;
i. The original and duplicate together with the original exchequer
receipt voucher (on which the revenue to be refunded was
acknowledged) will be submitted to the Commissioner of
Revenue (TREASURY) in Dar es salaam.
ii. The triplicate copy will be retained at the paying
station.
 Upon receipt of the original and duplicate copies of
vouchers supported by the original Exchequer Receipt
Voucher, from the Receiver of Revenue, the
Commissioner of Revenue will examine the authenticity
of the refund, and if satisfied, a cheque will be drawn
and posted in a Revenue Refund Cash Book.
 The cheque accompanied with the duplicate copy of PV
will be submitted to the originating station which shall
pass on the same claimant.

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SECURITY AND CONTROL

OF OFFICIAL RECEIPTS SECURITY cont….
 Various receipt forms e.g. exchequer receipt vouchers, i. All stocks received must be properly stored with maximum
security
fixed fee receipts etc are issued to various collectors of ii. Proper, accurate, and prompt records must be maintained
revenue for the purpose of acknowledging government (preferably in registers) to reflect stocks held, stocks received and
revenue and other public money. issued and the recording of series completions.
iii. All stocks received should be thoroughly checked in order to
 These forms therefore are susceptible to being misused ensure that;
if they are left loosely. a) No printing errors have occurred (e.g. incorrect numbering,
 In order to prevent such forms from their unauthorized originals and copies not matching, insufficient copies etc)
b) The items and quantities received correspond with the issue note
or improper use, all forms which have been approved particulars.
to acknowledge the receipt of public money must be iv. The avoidance of overstocking – especially at the places where
subjected to the following control measures by any there is actual cash collection. In other words, avoid over issue to
officer entrusted with them; cash collectors.

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MSAIDI, SEVERIN GASPER [CPA(T),

MSc. AF, BAF] 3
ACCOUNTING FOR GOVERNMENT
REVENUE
SECURITY cont….
v. Instructions should be given to the collectors of
revenue to promptly lodge with the Bank all
collections and submit the accounting copies of
the official receipts frequently and regularly.
vi. Insistence on the prompt submission of
accurate returns of unused receipts by all
persons having such in their charge.
vii. Arranging for the prompt checking of all returns
of unused receipts against records of issues and
of receipts already brought to account.
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Disposal of receipts
A) Used
 book copies of all issued receipts must be stored safely until
such time as the CAG has advised that he no longer require
them to be held available.
 it will then be for the Accounting Officer of the Ministry or
Region concerned to say whether the copies should be
retained or destroyed.
B) Unused
 Where an officer is in possession of unused receipts books
surplus to his requirements he will arrange for their return
to the officer from whom he received. The consignment will
be fully listed with a copy to the CAG.
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Safe custody
 Every officer who is required to hold government cash must
ensure that the means of cash storage available to him are
both secure and adequate. Where it is not so, he must
immediately make a report to the accounting officer.
 It is the duty of every accounting officer to ensure that the
cash security arrangements in force throughout his
organization are fully satisfactory, that his officers are fully
instructed in all aspect of cash handling and that no officer
is made responsible for holding cash without being provided
with suitable means of safeguarding it.
 The cash security arrangements of an organization must be
frequently reviewed to ensure that changing circumstances
have not rendered particular security measures obsolete or
unsafe.
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MSAIDI, SEVERIN GASPER [CPA(T),
MSc. AF, BAF]
9/24/2018
Completion of receipts forms
a) Every form of receipt will be completed in full, in ink or indelible
pencil and signed by the officer issuing it. The particulars should
be inserted in the space provided according to the layout of the
form.
b) The completion of form of receipts means the completion of the
original and all copies thereof simultaneously by the use of double
sided red carbon paper. No other means of production is
permitted.
c) All receipts will be issued by a Collector in strict serial number
order.
d) Where an error occurs in the writing of an amount received
whether in figures or written sum, the receipts and all its copies
will be cancelled and a fresh one issued. Cancelled receipt and all
copies, except that for retention in the book will be included in
the next batch for accounting.
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GENERAL RESPONSIBILITY
REGARDING SECURITY OF CASH
 Every officer having government cash in his
possession is held fully responsible for it during
the whole period of such possession and he must
be able at any time to account in full for the value
of the cash held as follows;
i. Disbursement of cash – by producing cash and
properly authenticated paid vouchers equal to
total cash issued to him for payment purposes.
ii. Cash Receipts – by producing duplicate receipts
or in the case of receipts having no official copy,
a statement of issue.
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Safe custody cont…
• The methods of cash used at a particular time
will depend largely on the value and quantity
of cash to be stored; the length of time it is
necessary to store it and the circumstances in
which collecting or handling officer operates.
• Accounting Officers should pay particular
attention to mobile cash and issue suitable
instructions.
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ACCOUNTING FOR GOVERNMENT
REVENUE
CASH BOXES – SAFE AND STRONG
DOORS
a) Supply
Ministries requiring any of the above cash storage
means should place an indent upon the Treasury.
Before doing this they should check and confirm that
the safes, cash boxes already indented and obtained
from the Treasury are being properly utilized.
b) Anchorage
every safe and every cash box used within a building
for the storage of cash will be securely buitl in to an
inside wall of the building in which it is situated.
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CASH BOXES cont…
• the Treasury will hold the duplicate keys for Dar
es salaam.
• Every officer holding stock of duplicate keys will
maintain a suitable register which will reflect
details of all keys held and the location of the
safes, cash boxes and strong rooms to which they
relate.
• All transfers of cash boxes, safe etc effected by
the ministries must be notified to the Treasury.
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CASH BOXES cont…
iv) Where the lost keys relate to a cash box, a fresh
key will be cut before the box is again brought
into use.
v) The box will be transferred to another part to
the region under intimation to the holder of the
duplicate key.
vi) Where the key relates to a safe or a strong
room, it will be necessary for the wards of the
lock to be changed. The cost of the new key or
ward change will be recovered from the officer
responsible for the loss of the key.
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MSAIDI, SEVERIN GASPER [CPA(T),
MSc. AF, BAF]
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CASH BOXES cont…
c) Use
Government safes, cash boxes and strong rooms are
provided for the safe custody od Government property and
of non government property which is temporarily in the
custody of government. No private cash or property should
be kept in them.
d) Keys
 all persons holding keys of a cash box, safe or a strong room,
should keep the same carefully and guard against letting
them out of their possession even for the shortest period of
time.
 the duplicate keys of every safe, cash box and a strong room
in a region will be held in safe custody by the Regional
Commissioner.
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CASH BOXES cont…
e) Loss of key of a cash box, safe etc.
 If the key of a cash box, safe or a strong room is lost,
the following action will be taken;
i) The officer responsible to hold the key will report the
loss without delay to his immediate superior and the
police.
ii) His superior will arrange to obtain the duplicate key,
and the cash box, safe or strong room concerned will
be opened in the presence of suitable witness and
the contents to be verified.
iii) The loss will be reported as soon as possible to the
Accounting officer and the Treasury.
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Loss of cheque
• If a cheque is reported lost, stop order will be
placed on the bank.
• Replacement cheque will not be issued unless
the bank certified non payment of the lost
cheque and confirmed noting of stop order.
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ACCOUNTING FOR GOVERNMENT
REVENUE
Handing over procedure
 Following action will be taken when handing over
charge of cash;
(i) The cash book revenue and stamps registers etc
will be balanced and both the outgoing and
incoming officers will sign then for the amount
handed over Vote books will be written up to
date and totaled.
(ii) Both the outgoing and incoming officer will
physically check the amount of cash stamps in
the cash box, safe or a strong room and see that
it agrees with the amount shown in the cash
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book registers etc.
CASH BOXES cont…
• These statements will be signed by both
outgoing and incoming officers and a copy
thereof will be sent to the accounting officer.
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Board of Survey (CASH) cont…
• The board is required to submit its report to
the accounting officer concerned. Any surplus
found should be brought to account and any
deficit charged to ‘advances account’ of the
officer responsible.
• Surprise Boards of Survey may also be
appointed which will operate in the same way
as regular boards.
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MSAIDI, SEVERIN GASPER [CPA(T),
MSc. AF, BAF]
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CASH BOXES cont…
(iii) A handing over statement will be prepared in
which the details of following articles
documents records will be noted;
(a) keys of the cash boxes, safes, etc handed over
(b) Revenue stamps, official postage stamps
embossed paper etc
(c) Trophies viz elephant tusks, rhino teeth and
animal skins etc as per trophies register.
(d) Accountable documents as per counterfoil
register.
(e) Copies of all orders, circulars, financial orders
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and books regulations.
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Board of Survey (CASH)
 At the end of each financial year ‘Board of Survey’
is appointed to examine the balance of cash,
bank, stamps and embossed paper after the close
of the last working day.
 The Board consists of three members one of
whom is nominated as president.
 It is appointed by the Principal Secretary Treasury
in the case of officers in Dar es salaam and by the
regional Development Directors concerned in case
of regions.
 The resident magistrate, officers of the Treasury,
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and the Exchequer and Audit department are
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prohibited from taking part in the survey.
LOSS OF CASH/STAMP
 No action is required to be taken in the case of
minor loss of cash of less than T.Shs 20 arising out
of the normal hazards of cash handling provided
that the shortage is immediate made good.
 All other losses of cash stamps promisory notes
etc will be immediately reported to the officer in
local charge of the department who will arrange
for an investigation.
 Where fraud or theft is apparent or suspected the
police will be informed.
 If the amount of loss is in excess of T.Shs 10,000
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the Treasury will also be informed on the day of
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the loss or of the discovery of the loss by
telegram/fax.
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ACCOUNTING FOR GOVERNMENT 9/24/2018
REVENUE

LOSS OF CASH/STAMP cont… MONTHLY FINANCIAL RETURNS

 As soon as possible a brief report or the loss
will be sent to the head of the department
concerned and to the accounting officer.
 In case the amount of loss exceeds T.Shs
10,000 report will be sent to the Treasury also.
 All cases of loss of cash will be pursued
energetically till finalized. No case will be
closed till the issue of a “Loss Finalization
Certificate.”
 A copy of the loss report (for each loss) and
copies of all correspondence must be sent to
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 Each receiver of revenue is required to maintain a
revenue receipt cash book as well as revenue
ledger cards of each of the revenue
items/accounts.
 The accounting officer maintain two sets of ledger
cards. One set to account for revenue relating to
his vote in his capacity as receiver of revenue and
the other to account for revenue collected by
Internal Revenue Officers in the region.
 From the ledgers cards maintained by each
ministerial and regional central accounting
37 section, all receivers of revenue and internal
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the Exchequer and Audit Department also. revenue officers will prepare monthly statements
of their revenue receipts.

MONTHLY FINANCIAL RETURNS MONTHLY FINANCIAL RETURNS

cont… cont…
 In the regions the statements of revenue receipts (ii) Duplicate to the office of the CAG
form the Internal Revenue Officers will be
submitted to the Regional Finance Officers (iii) Triplicate is retained by the Ministerial or
(Accountants) who will prepare consolidated Regional Receiver of Revenue
statement of revenue of all the (Internal Revenue (iv) Quadruplicate is retained by the Ministerial
Officers) in the region. or Regional Accountant for record
 The Ministerial and regional receiver of revenue
will prepare their own statements separately.
These statements will be in quadruplicate and
distributed as follows;
(i) Original to Accountant General Treasury and
should reach his office not late than 15th of the
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subsequent month.

ILLUSTRATION ILLUSTRATION cont…

• The following information pertains to Ministry • The following revenue which are in arrears as
X for the year 30th June, 2004 at 30th June 2004 fell due to since the 2002/3
CODE DESCRIPTION APPROVED ESTIMATES ACTUAL REVENUE
COLLECTED
financial year and 30th April, 2004 respectively
T.Shs T.Shs CODE ITEM TOTAL 2002/3 OR 2003/4 UP TO
ARREARS EARLIER 30TH APRIL
1602 Forest Royalties 2,500,000 3,000,000 T.Shs T.Shs T.Shs
1603 Farm Produce 3,000,000 2,000,000
1604 Licenses for Timber Cutting 1,000,000 1,500,000 1602 Forest Royalties 1,209,503 600,503 609,000
1605 Forest Industrial Unit 800,000 820,000 1603 Farm Produce 303,500 100,500 203,000
TOTAL 7,300,000 7,320,000 1604 Licenses for
Timber cutting 120,000 20,000 100,000
TOTAL 1,633,003 721,003 912,000

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MSAIDI, SEVERIN GASPER [CPA(T),

MSc. AF, BAF] 7
ACCOUNTING FOR GOVERNMENT 9/24/2018
REVENUE

ILLUSTRATION cont… ILLUSTRATION cont…

• The following revenue amounts were
abandoned during the financial year ended
CODE th ITEM AMOUNT ABANDONED
30 June
1602
2004;
Forest Royalties 200,000
1604 Licences for Timber Cutting 15,000
1. MINISTRY ‘X’
STATEMENT OF REVENUE RECEIVED DURING
THE YEAR ENDED 30TH JUNE 2004
• Required
• A statement of Revenue received during the
year ended 30th June 2004 with the footnotes
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which are required to be incorporated

underneath.

ILLUSTRATION cont… ILLUSTRATION cont…

CODE DESCRIPTION ESTIMATES ACTUAL AMOUNT AMOUNT OVER-
RECEIPTS UNDER- COLLECTED
COLLECTED T.Shs
T.Shs T.Shs T.Shs ……………………….………………………………….
SIGNATURE OF RECEIVER OF REVENUE
1602 Forest Royalties 2,500,000 3,000,000 500,000 DATE………………………………
1603 Farm Produce 3,000,000 2,000,000 1,000,000

1604 Licenses for 1,000,000 1,500,000 500,000

Timber Cutting
• FOOTNOTES
1605 Forest Industrial 800,000 820,000 20,000 (1) Code 1603 – Farm produce, amount under collected is
Unit
T.Shs 1,000,000 a variation of 33.3% because …..
TOTAL 7,300,000 7,320,000 1,000,000 1,020,000 (2) Code 1604 – Licenses for Timber Cutting, amount
over collected T.Shs 500,000 a variation of 50%
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ILLUSTRATION cont… ILLUSTRATION cont…

2. Statement of Arrears of Revenue as at 30th 3. Statement of Arrears of Revenue abandoned
April 2004 uncollected as at 30th June 2004 during the year ended 30th June 2004
CODE ITEM 2002/3 OR 2003/4 TOTAL CODE ITEM AMOUNT
EARLIER ARREARS ABANDONED
T.Shs T.Shs T.Shs 1602 Forest Royalties 200,000
1604 Licences for Timber 15,000
1602 Forest Royalties 600,503 609,000 1,209,503 Cutting
1603 Farm Produce 100,500 203,000 303,500 TOTAL 215,000
1604 Licenses for Timber
cutting 20,000 100,000 120,000
TOTAL 721,003 912,000 1,633,003

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MSAIDI, SEVERIN GASPER [CPA(T),

MSc. AF, BAF] 8
ACCOUNTING FOR GOVERNMENT 9/24/2018
REVENUE

END OF TOPIC

NEVER GETS ANY EASIER

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MSAIDI, SEVERIN GASPER [CPA(T),

MSc. AF, BAF] 9