Unutilized voted funds are surrendered to the exchequer grant account at National treasury, and any amount

owing to the Exchequer grant account at the end of the financial year is recognized as "Voted funds to be
surrendered to the revenue fund under "Current liabilities" in the Statement of Financial Position.

 At the beginning of the financial year, Finance receives “budget” inputs from the budget office (Estimates
of National Expenditure (ENE) document)
 Capture the budget on bas (opening journal)
 Dr Exchequer Grant account (exchequer grant informs the department of the available
funds for withdrawal
 Cr General account of the vote (General account of vote, is the budget amount for that
particular financial year)
 The very same transaction is captured when there is a positive adjustment to the budget (increase), and
where there is a decrease, the journal entries are reversed, i.e., Cr to Exchequer Grant and Dr to General
Account of Vote.
 Accounting Clerk / SA / ASD, on a monthly basis, requests the funds through safety web (National
Treasury) according to the schedule received from the budget office (ENE). When the funds are
received, The Department process the journal as follows
 Cr Exchequer Grant account
 Dr Fund Requisition account
 Before the end of each month & year, a “recon” is done to ensure that all drawings are recorded.
If there are differences the department (Finance section) will investigate and corrections will be
done if needed. (typical errors would be, where there were adjustments to budget, or requested
lesser than budgeted)
 At the end of the financial year, the exchequer grant account is credited with the balance of the general
account of the vote, the General account of vote will have a zero balance.
 The exchequer grant is then cleared by the actual expenditure of that financial year, this is an automated
process (year-end batch run), there are no manual journals processed.
 A credit balance on the exchequer grant account indicates that expenditure was less than the budget, and
those funds needs to be paid over (surrendered) to the Revenue Fund, by means of a payment advise
 A debit Balance indicates that the spending was more than the appropriated funds (Unauthorized
expenditure)