Government - of - Ghana - Accounting For COVERED ENTITIES 2018

Government of Ghana Accounting Manual for
Covered Entities
Issued by the Controller and Accountant General
March 2018
The Republic of Ghana
Government of Ghana
Accounting Manual for
Covered Entities
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Glossary
AG – Auditor General
BOG – Bank of Ghana
CAG – Controller and Accountant-General
CAGD – Controller and Accountant-General’s Department
CRF – Commitment Requisition Form
DAI – Departmental Accounting Instruction
DCAG – Deputy Controller and Accountant-General
EFT – Electronic Funds Transfer
EI – Executive Instrument
FAR, 2004 – Financial Administration Regulations, 2004
GCR – General Counterfoil Receipt
GRA – Ghana Revenue Authority
GIFMIS – Ghana Integrated Financial Management and Information System
IGF – Internally Generated Funds
IPSAS – International Public Sector Accounting Standards
JV – Journal Voucher
Covered Entity – Ministry, Department and Agency/ Metropolitan, Municipal and District
Assemblies
PDI - Public Debt and Investment
PFMA - Public Financial Management Act
PO – Purchase Order
PPA, 2003 – Public Procurement Act, 2003
PPA – Public Procurement Authority
PPD – Payroll Processing Division
PPS – Payroll Processing Section
PV – Payment Voucher
RCC – Regional Coordinating Council
SRA – Stores Receipt Advice
SIV – Stores Issue Voucher
TCR – Treasury Counterfoil Receipt
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Symbol Name Description
Process An operation or action step
Terminator Ends a process
Decision A question or decision point

in a process
Predefined Process A series of process steps

formally defined elsewhere
Document A document or report
Manual Operation A process that is not

automated
On page connector A jump from one point in

the process flow to another
on the same page
Off page connector Continuation of the process

flow on another page
Stored data Indicates that the process

flow stores data
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Contents
1 Introduction to the Manual 1
1.1 Purpose of the manual 1
1.2 Legal Framework 1
1.3 Structure of the manual 2
1.4 Maintenance of this manual 2
2 Financial Accounting Principles and System 3

2.1 Introduction 3
2.2 Generally Accepted Accounting Principles for Covered Entities 3
2.3 Presentation of Financial Statements 13
2.4 GIFMIS Financials 25
2.5 The Covered Entity Accounting System 26
2.6 Records Management 29
2.7 Internal Controls 33
2.8 Control over value books 38
3 Chart of Accounts 40
3.1 Purpose 40
3.2 Overview of the Chart of Accounts 40
3.3 Structure of the Chart of Accounts 48
3.4 Related Documents and References 49
3.5 Maintenance of the Chart of Accounts 49
4 Budgeting 50
4.1 Introduction 50
4.2 Policies and Regulations 50
4.3 Budget Preparation and Approval 51
4.4 Budget Release and Execution 61
4.5 Revote Warrant 70
4.6 Cash Planning 73
5 Revenue Accounting 80
5.1 Introduction 80
5.2 Sources of Revenue 80
5.4 Tax Revenue Accounting 84
5.5 Non Tax Revenue Accounting 92
5.6 Sale of Goods and Services 98
5.7 Grants and Donations 107
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6 Procurement of Works, Goods and Services 111

6.1 Objective 111
6.2 Regulations and Policies 111
6.3 Responsibilities 112
6.4 Procurement Methods for Works, Goods and Services 113
6.5 Procurement Planning Cycle 113
6.6 Procurement of Goods and Services 119
6.7 Procurement of Works 123
6.8 Receipt / Acceptance of Goods, Works and Services 125
6.9 Maintenance of Suppliers 136
7 Expenditure Management 140

7.1 Introduction 140
7.3 Compensation of Employees 141
7.4 Payment for Use of Goods and Services 149
7.5 Payments for Public Debt 163
7.6 Payments for Capital Expenditure 172
7.7 Statutory Payments 176
7.8 Payments from Project Accounts 178
8 Cash and Bank Management 182

8.1 Objectives and Purpose 182
8.3 Opening of Bank Accounts 183
8.4 Bank Account Closure 191
8.5 Bank Reconciliation 195
9 Fixed Assets Accounting 202

9.1 Objectives and Purpose 202
9.3 Heritage Assets 204
9.4 Land 204
9.5 Application for allocation of Government land 205
9.6 Compulsory Acquisition of Land 209
9.7 Additions to Fixed Assets 215
9.8 Fixed Asset Transfers 222
9.9 Depreciation 239
9.10 Fixed Asset Retirement 245
9.11 Fixed Asset Disposal 248
9.12 Fixed Asset Register 253
10 Inventory (Stores) Accounting 258

10.1 Objective 258
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10.3 Issue of Goods 259
10.4 Intra Covered Entity sale of Stock 261
10.5 Inter-Covered Entity Sale of Stock 265
10.6 Disposal of Stores 269
10.7 Donations and Gifts 271
11 Period End Accounting 276

11.1 Introduction 276
11.2 Objectives 276
11.4 Reporting Periods 277
11.5 Quarter/Year End Procedures 277
11.6 Quarter-end Reporting 278
11.7 Year-end Reporting 284
11.8 Unused or Unspent funds 292
11.9 Key Definitions 292
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1 Introduction to the Manual
1.1 Purpose of the manual

The purpose of this manual is to prescribe the standard accounting procedures for Covered
Entities and other public institutions. This manual also provides guidance for users in the
performance of their financial management responsibilities.
The objective of the manual is to explain the accounting and financial procedures to provide a
practical guide for the harmonisation of accounting and financial management practices across all
Covered Entities and other public institutions.
The manual also aims at providing guidance to ensure consistent, accurate and timely recording
of financial transactions across all Covered Entities and public institutions as an enabler for the
timely provision of financial information to key stakeholders to reinforce informed decision
making.
The guidance provided by the manual is based on the relevant legislation for public financial
management.
Adherence to this manual will also promote uniform compliance with the International Public
Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting
Standards Board (IPSASB).
1.1.1 Scope of this manual
The manual provides broad based instructions to users with responsibility for the processing of
financial information and reporting for accountability and statutory purposes at Covered Entities
and other public institutions.
The processes covered in this manual include budgeting, revenue management, cash and bank
management, expenditure and reporting for Covered Entities and other public institutions. The
manual outlines the policies, flow chart illustrations of transaction processing procedures and
forms used in the processing and reporting of financial information.
It is also a basis for Covered Entities in the development of Departmental Accounting Instructions
(DAI).
1.1.2 Intended users

This manual is primarily intended for use by all accounting personnel but will also serve as a
useful reference document for auditors, financial systems developers, trainers and all staff with
financial management responsibilities at Covered Entities.
1.2 Legal Framework

The Public Financial Management Act, 2016 (Act 921) sets out the framework for the regulation
of financial administration in the public sector and provides the structure to ensure the efficient
and effective management of the financial resources of the Government.
In line with Regulation 3 of the Financial Administration Regulations, 2004 (L.I. 1802) – the
Controller and Accountant-General has the responsibility for the preparation of an accounting
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manual, which will serve as a guide for the Heads of Departments in the discharge of their
financial management responsibilities.
The systems, work processes and controls presented in this manual are thus compliant with the
financial management principles espoused in the aforementioned laws and regulations.
1.3 Structure of the manual

The manual is organised into 11 main chapters as follows:
Chapter 1- Introduction to the Manual
Chapter 2 – Financial Accounting Principles and System
Chapter 3 – Structure of the Chart of Accounts
Chapter 4 – Budgeting
Chapter 5 – Revenue Accounting
Chapter 6 – Procurement of Goods and Services
Chapter 7 – Expenditure Management
Chapter 8 – Cash and Bank Management
Chapter 9 – Fixed Asset Accounting
Chapter 10 – Inventory (Stores) Accounting
Chapter 11 – Period End Accounting
Each chapter has subsections, which elaborate on the main elements of the relevant business
process area.
1.4 Maintenance of this manual

The Manual is a living document and should be kept in a format that facilitates future revisions.
The Controller and Accountant-General (CAG) will issue updates, in consultation with the
Auditor General (AG), when changes in procedures occur to promote increased transparency,
accountability and efficiency of public financial management at Covered Entities.
The Heads of Covered Entities shall also issue Departmental Accounting Instructions (DAI) using
this manual as a basis, in respect of any accounting policy or procedure where:
 Further guidance is required on routine work
 The existing DAI requires revision or is no longer relevant
 No DAI exists
The Head of Department shall submit a draft DAI to the Controller and Accountant-General for
approval. The Controller and Accountant-General, in consultation with the Auditor General, shall
consider and approve the DAI. The Head of Department shall then distribute the approved DAI
to guide the financial management of the relevant department.
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2 Financial Accounting Principles and System
2.1 Introduction
This section of the manual describes the general structure of the Government of Ghana’s
accounting framework, including the Generally Accepted Accounting Principles (GAAP) for
Covered Entities. This section gives an overview of the accounting bases and concepts that should
underlie the Government’s accounting system.
Public financial statements must be prepared in accordance with instructions issued by the
Controller and Accountant-General, in consultation with the Auditor General, as well as
International Public Sector Accounting Standards (IPSAS)
Accounting policies are the specific principles, bases, conventions, rules and practices adopted
by the Government in preparing and presenting financial statements.
The financial statements must be prepared using the accrual basis of accounting except that the
specific basis and procedures for preparing the accounts shall be determined by the Controller
and Accountant-General (Financial Administration Regulations, 2004, Regulation 186).
Compliance to GAAP, in the context of the public sector, means compliance with the laws and
regulations governing financial management, especially in the areas of budget formulation and
execution, expenditure control and internal audit as well as International Public Sector
Accounting Standards (IPSAS) issued by the International Public Sector Accounting Standards
Board (IPSASB) of the International Federation of Accountants (IFAC).
There are two generally accepted bases of accounting in the public sector:
 Cash basis
 Accrual. basis
Although the Modified Accrual basis of accounting is currently considered as “best practice” for
Covered Entities, it is recognised as a transitional phase in moving towards the full accrual basis
of accounting.
The IPSASs applicable to the Accrual basis of accounting provide for transitional arrangements
and disclosures in moving from the cash basis of accounting to the accrual basis of accounting.
2.2 Generally Accepted Accounting Principles for Covered Entities

Each Covered Entity is responsible for keeping proper books of accounts and preparing periodic
financial statements to account for their stewardship of public funds.
The financial statements must be prepared in accordance with Generally Accepted Accounting
Principles and in accordance with the instructions issued by the Controller and Accountant-
General (CAG), in consultation with the Auditor General (AG).
The remainder of this Section gives overview of the accounting standards that comprise the
GAAP per IPSASs with a focus on IPSAS 1, standard that deals with the presentation of financial
statements and the Conceptual Framework for general purpose financial reporting by public sector
entities. This Conceptual Framework underpins all the accounting standards issued by IPSASB.
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The Section concludes with a discussion of the Management of the Government Accounting
system, including the tasks and organisation of the Finance function, internal controls and an
introduction to the computerised GIFMIS.
2.2.1 Overview of IPSAS

IPSASB has currently issued thirty-two standards for accrual based accounting and one standard
for cash based accounting. (IPSAS Handbook, 2014 Edition). These accounting standards are
issued by the IPSASB for use by national and local governments as well as related agencies and
departments. They are aimed at improving the quality of general purpose financial reporting by
public sector agencies; ultimately leading to better informed resource allocation decisions and
greater transparency and accountability in public financial management.
The thirty-two standards currently in use for accrual based accounting are indicated in the table
below:
No IPSAS Name
1 IPSAS 1 – Presentation of Financial Statements
2 IPSAS 2 – Cash Flow Statements
3 IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors
4 IPSAS 4—The Effects of Changes in Foreign Exchange Rates
5 IPSAS 5—Borrowing Costs
6 IPSAS 6—Consolidated and Separate Financial Statements
7 IPSAS 7—Investments in Associates
8 IPSAS 8—Interests in Joint Ventures
9 IPSAS 9—Revenue from Exchange Transactions
10 IPSAS 10—Financial Reporting in Hyperinflationary Economies
11 IPSAS 11—Construction Contracts
12 IPSAS 12—Inventories
13 IPSAS 13—Leases
14 IPSAS 14—Events after the Reporting Date
15 IPSAS 15—Financial Instruments: Disclosure and Presentation
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No IPSAS Name
16 IPSAS 16—Investment Property
17 IPSAS 17—Property, Plant, and Equipment
18 IPSAS 18—Segment Reporting
19 IPSAS 19—Provisions, Contingent Liabilities and Contingent Assets
20 IPSAS 20—Related Party Disclosures
21 IPSAS 21—Impairment of Non-Cash-Generating Assets
22 IPSAS 22—Disclosure of Financial Information about the General

Government Sector
23 IPSAS 23—Revenue from Non-Exchange Transactions

(Taxes and Transfers)
24 IPSAS 24—Presentation of Budget Information in Financial Statements
25 IPSAS 25—Employee Benefits
26 IPSAS 26—Impairment of Cash-Generating Assets
27 IPSAS 27—Agriculture
28 IPSAS 28—Financial Instruments: Presentation
29 IPSAS 29—Financial Instruments: Recognition and Measurement
30 IPSAS 30—Financial Instruments: Disclosures
31 IPSAS 31—Intangible Assets
32 IPSAS 32—Service Concession Arrangements: Grantor
33 IPSAS 33--- First-time Adoption of Accrual Basis
34 IPSAS 34--- Separate Financial Statements
35 IPSAS 35--- Consolidated Financial Statements
36 IPSAS 36--- Investments in Associates and Joint Ventures
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No IPSAS Name
37 IPSAS 37--- Joint Arrangements
38 IPSAS 38--- Disclosure of Interests in Other Entities
39 IPSAS 39--- Employments Benefits
2.2.2 Scope
The Conceptual Framework explains the concepts that are applied in the development of IPSASs
applicable to the preparation and presentation of general purpose financial statements by public
sector entities. It deals with the concepts that are applicable for general purpose financial reporting
under the accrual basis of accounting.
The Framework also outlines the objectives of financial statements, the qualitative characteristics
that define the usefulness of financial statements, the recognition and definition of the elements
from which financial statements are constructed and the measurement of the elements recognised
in the financial statements.
IPSAS 1-Presentation of Financial Statements, prescribes the manner in which financial
statements should be presented to ensure comparability of the reporting entity’s financial
statements across different periods as well as with the financial statements of other entities. IPSAS
1 sets out the overall considerations for the presentation of financial statements, general guidance
on their structure and the minimum requirements with respect to contents for financial statements
prepared under the accrual basis of accounting.
The recognition and measurement as well as disclosure requirements for specific transaction types
are covered by other IPSASs as indicated in the table above.
Generally, all IPSASs are applicable to financial statements prepared by all Public Sector Entities
other than Government Business Entities under the accrual basis of accounting. Public Sector
entities using the cash basis of accounting should comply with the provisions of the Cash Basis
IPSAS - Financial Reporting under the Cash Basis of Accounting.
Government Business Enterprises (GBEs) are business entities, which under the control of a
Public Sector Entity. GBEs generally operate to make a profit` and are in substance not different
from entities conducting similar activities in the private sector. GBEs apply International
Financial Reporting Standards (IFRS) in the preparation and presentation of their financial
statements.
The main function of Government and other Public Sector entities is to apply public funds to the
provision of services that enhance or maintain the wellbeing of citizens. Government and other
Public Sector entities are thus accountable to Parliament, the Civil Society as well as other
stakeholders who provide them with resources. Government and other Public Sector entities are
also accountable to the society, which depends on them to provide the required services on a
sustainable basis.
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This drive for accountability is the primary motivation for the passage of the FAA, 2003 and FAR,
2004 by the Parliament of the Republic of Ghana to provide the framework for the regulation of
financial management in the public sector and to control the use of public funds.
IPSAS supports this objective by providing a consistent framework for the recognition,
classification, measurement and reporting of financial transactions and events in a structured
manner.
The financial statements of a Covered Entity are primarily aimed at serving the common
information needs of a wide range of users. Some of these users may require, and have the right
to obtain, information including what is contained in the financial statements.
Most users, however, have to rely on the financial statements as their major source of financial
information and such financial statements should, therefore, be prepared and presented with their
needs in view. These users include donors, employees, suppliers of goods and services, customers
for specified goods and services rendered by Covered Entities, private sector companies and other
NGO’s, local and foreign investors, researchers, and the public at large.
A complete set of financial statements under IPSAS comprises:
 A statement of financial position
 A statement of financial performance
 A cash flow statement
 A comparison of budget and actual amounts either as a separate additional statement or as a
budget column in the financial statements
 Notes comprising a summary of the significant accounting policies and any other explanatory
notes
In addition to the financial statements referred to above, the FAR, 2004 requires that the following
statements be part of a complete set of financial statements:
 A balance sheet showing the Covered Entity’s assets and liabilities as at the end of the year
 A statement of receipts and payments classified by nature and by source of funds showing
year to date balances compared with the approved budget estimates
 A statement of revenue and expenditure against warrants classified by nature showing year to
date balances
 A cash flow statement of the Covered Entity for the financial year
 Notes to the accounts including details of the extent to which the performance criteria in
relation to the Covered Entity’s output specified in the approved budget estimates have been
satisfied. This shall include:
o An Expenditure Analysis Statement showing expenditure for the current period
and the year to date
o A schedule of advances to staff and third parties
o Commitment Control Report
It is worthy to note the requirements of Ghanaian laws governing financial management and
reporting supersedes the provisions of IPSAS. IPSAS makes provisions for the disclosure of the
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effect of such departures from its principles where applicable. However, an entity cannot claim
to be IPSAS compliant if such departures are material.
2.2.3 The Purpose of Financial Statements

The objective of financial statements is to provide information about the financial position,
financial performance and cash flows of an entity; that is useful to a wide range of users in
determining the entity’s accountability and for making economic decisions.
Specifically, the purpose of financial reporting in the public sector is to demonstrate
accountability for the resources entrusted to a Covered Entity and to provide information that is
useful for decision making as well as for evaluation of resource allocation decisions.
Financial statements also serve a forward looking purpose by providing information that is useful
for predicting the resources required for continuing operations and the resources generated from
continuing operations as well as the associated risks.
Financial statements show the results of the stewardship of the Head of a Covered Entity in respect
of the resources entrusted to them. For example, it provides useful information for the assessment
of whether a Covered Entity obtained and used public funds in accordance with the approved
budget. Financial statements can also provide information on whether a Covered Entity complied
with relevant legal and contractual requirements, such as authorisation limits, in the use of public
funds for its operations.
2.2.4 Financial Position, Financial Performance and Cash Flows

The economic decisions that are taken by users of financial statements require an evaluation of
the ability of a Covered Entity to generate cash and cash equivalents and of the timing and
certainty of their generation. This ability ultimately determines, for example, the capacity of the
Covered Entity to fund its development expenditure program, pay its employees, suppliers and
service its debt obligations.
Users are better able to evaluate this ability to generate cash and cash equivalents if they are
provided with information that focuses on the financial position, performance and cash flows of
the Covered Entity.
Information about financial position is primarily provided in a Statement of Financial Position
(Balance Sheet). Information about financial performance is primarily provided in the Statement
of Financial Performance (Revenue and Expenditure Statement). Information about cash flows is
provided in the annual accounts by the Cash Flow Statement. The Notes to the accounts provide
information about other statutory disclosures to the accounts and various reports and supporting
schedules.
2.2.5 Notes and Supplementary Schedules

The financial statements also contain notes, supplementary schedules and other information. For
example, they may contain additional information that is relevant to the needs of users about the
items in the Statement of Financial Performance and Statement of Financial Position.
They may include disclosures about the risks and uncertainties affecting the Covered Entity and
any resources and obligations not recognised in the balance sheet (such as mineral reserves and
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guarantees for external borrowings given on behalf of trading concerns controlled by the Covered
Entity).
Information about geographical and sectorial segments and the effect of inflation on the Covered
Entity, for example, can also be provided as part of supplementary information to the financial
statements.
2.2.6 Underlying Assumptions

Underlying assumptions are the common principles or concepts, which entities are presumed to
apply in the preparation of financial statements under generally accepted accounting principles.
The key underlying assumptions are as follows:
2.2.6.1 Accrual basis

In order to meet their objectives, financial statements are normally prepared on the accrual basis
of accounting. Under this basis, the effects of transactions and other events are recognised when
they occur (and not as cash or its equivalent are received or paid) and they are recorded in the
accounting records and reported in the financial statements of the periods to which they relate.
Financial statements prepared on the accrual basis inform users not only of past transactions
involving the payment and receipt of cash but also of obligations to pay cash in the future and of
resources that represent cash to be received in the future.
Hence, they provide the type of information about past transactions and other events that is most
useful to users in making economic decisions
2.2.6.2 Going Concern

The financial statements should be prepared on the assumption that the Covered Entity is a going
concern and will continue in operational existence for the near future.
Hence, it is assumed that the Government has neither the intention nor the need to end or curtail
significantly the scale of the Covered Entity’s operations. If such an intention or need exists, the
financial statements shall be prepared on a liquidated basis and the basis used disclosed.
2.2.7 Qualitative Characteristics of Financial Statements

Qualitative characteristics are the attributes that make the information provided in financial
statements useful to users and support the objectives of financial reporting; which is to provide
information useful for decision making and accountability purposes.
The principal qualitative characteristics are relevance, faithful representation, understandability,
timeliness, comparability, and verifiability
2.2.7.1 Relevance
Information is useful if it is relevant to the decision making needs of its users. Information has
the quality of relevance when it influences the economic decisions of users by helping them
evaluate past, present or future events or confirming, or correcting, their past evaluations.
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Information is relevant if it assists users to confirm present or past events or to predict future
events with reasonable certainty.
The predictive and confirmatory roles of information are interrelated. For example, information
about the current level and structure of asset holdings has value to users when they endeavour to
predict the ability of the Government to take advantage of opportunities and its ability to react to
adverse situations.
The same information plays a confirmatory role in respect of past predictions about, for example,
the way in which Government finances were structured at a given time or the outcome of planned
operations.
Information about the current financial position of the Government and its immediate past
operating performance and cash flows is frequently used as the basis for predicting its future
financial position, income and expenditure, cash flows and other matters in which users are
directly interested. Such as enhanced levels of service delivery, promised pay increases for its
employees, completion of approved development expenditure programs, achievement of a
balanced budget and the general ability of the Government to meet its commitments as they fall
due.
To have predictive value, information need not be in the form of an explicit forecast. The ability
to make predictions from financial statements is enhanced, however, by the manner in which
information on past transactions and events is displayed. For example, the predictive value of the
income statement is increased if unusual, abnormal and infrequent items of income or expense
are disclosed separately.
2.2.7.2 Faithful Representation

To be reliable, information must represent faithfully the transactions and other events it either
purports to represent or could reasonably be expected to represent. Thus, for example, a balance
sheet should faithfully represent the transactions and other events that result in assets and
liabilities of the Government at the reporting date, which meet the relevant recognition criteria.
Most financial information is subject to some risk of being less than a faithful representation of
that which it purports to portray. This is not due to bias, but rather to inherent difficulties either
in identifying the transactions and other events to be measured or in devising and applying
measurement and presentation techniques that can convey messages that correspond with those
transactions and events.
In certain cases, the measurement of the financial effects of items could be so uncertain that they
are generally not recognised in the financial statements.
2.2.7.3 Understandability
An essential quality of the information provided in financial statements is that it is readily
understandable by users. For this purpose, users are assumed to have a reasonable knowledge of
the working of the Government, its system of financial management and a willingness to study
the information with reasonable diligence.
However, information about complex matters that should be included in the financial statements
because of its relevance to the economic decision-making needs of users should not be excluded
merely because it may be too difficult for certain users to understand.
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Understandability of financial information is enhanced if classified and presented concisely and

in a structured format. Comparability of information also improves its understandability.
2.2.7.4 Timeliness
Financial information is most useful for evaluating accountability and informed decision making
if it is made available in a timely manner. Information can be less useful for decision making
purposes if it provided later rather than sooner.
That said some information retains its usefulness long after the reporting period. For example,
prior year financial statements are useful for establishing trends in an entity’s compliance with
approved budgets as well as its financial performance over a number of years.
2.2.7.5 Comparability
Users of financial statements must be able to compare Government’s financial statements over
time to identify trends in its financial position, income and expenditure and cash flows. Users
must also be able to compare the financial statements of different Covered Entities to evaluate
their relative financial position, performance and cash flows.
Hence, the measurement and display of the financial effect of like transactions and other events
must be carried out in a consistent way throughout a Covered Entity and over time for that
Covered Entity and in a consistent manner for different Covered Entities.
An important implication of the qualitative characteristic of comparability is for users to be
informed of the accounting policies employed in the preparation of the financial statements, any
changes in those policies and the effects of such changes. Users need to be able to identify
differences between the accounting policies for like transactions and other events used by the
same Covered Entity from period to period and by different Covered Entities. Compliance with
accounting standards and guidelines, including the disclosure of the accounting policies used by
a Covered Entity, helps to achieve comparability.
The need for comparability should not be confused with spurious uniformity and should not be
allowed to become an impediment to the introduction of improved accounting standards. It is not
appropriate for a Covered Entity to continue accounting in the same manner for a transaction or
other event if the policy adopted is not in keeping with the qualitative characteristics of relevance
and reliability. It is also inappropriate for a Covered Entity to leave its accounting policies
unchanged when more relevant and reliable alternatives exist and the CAG has approved the use
of these alternatives.
Because users wish to compare the financial position, performance and cash flows of a Covered
Entity over time, it is important that the financial statements show corresponding information for
the preceding periods.
2.2.7.6 Verifiability
Financial statements provide users with the relevant information to evaluate accountability and
make informed decisions. For this objective to be achieved, the information contained in financial
statements must be verifiable. That is users must be assured the information contained in the
financial statements represents the economic circumstance it purports to represent.
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In this regard, financial statement must disclose the key assumptions and methodologies used in
compiling the information as well as the circumstances or factors that support any opinions
expressed in the financial statements. These disclosures must be transparent, in that any
knowledgeable and independent observer will reach the same general conclusion as presented in
the financial statements using the same underlying methodologies and assumptions.
2.2.8 Constraints on information included in the financial statements
2.2.8.1 Materiality
Information is material if its omission or misstatement could influence the economic decisions
users make based on the financial statements. Materiality depends on the size of the item or error
judged in the particular circumstances of its omission or misstatement. Thus, materiality provides
a threshold or cut-off point rather than being a primary qualitative characteristic which
information must have if it is to be useful. Assessments of materiality should be made in the
context of the FAA, 2003 and FAR, 2004 as well as the instructions given by the CAG, in
consultation with the AG.
In determining materiality, due consideration should be given to the nature, legality and
consequences of past or future event, the parties involved and the circumstances given rise to
them. For example, reporting the completion of a major development project may affect the
assessment of the risks and opportunities facing a Covered Entity irrespective of the materiality
of the actual results achieved by the project in the reporting period. In another case, disclosure of
information on compliance or non-compliance with legislation may be material because of its
nature, irrespective of the amount involved.
2.2.8.2 Balance between Benefits and Costs

Preparation of financial statements is costly. The benefits derived from information should exceed
the cost of providing it. The evaluation of benefits and costs is, however, substantially a
judgemental process. Furthermore, the costs do not necessarily fall on those users who enjoy the
benefits. Users other than those for whom the information is prepared may also enjoy benefits;
for example, the provision of further information to lenders may reduce the borrowing costs of a
Covered Entity and/or the Government.
Applying the cost-benefit constraint is to assess whether the benefits of reporting information are
likely to justify the cost incurred to prepare and use the information. When making this
assessment, it is necessary to consider whether one or more qualitative characteristic might be
sacrificed to some degree to reduce cost.
2.2.8.3 Balance between the Qualitative Characteristics

The qualitative characteristics work together to contribute to the usefulness of financial
information. For example, information must be timely and understandable to be relevant.
In practice a balancing, or trade-off, between qualitative characteristics is often necessary.
Generally, the aim is to achieve an appropriate balance among the characteristics in order to meet
the objective of financial statements. The relative importance of the characteristics in different
cases is a matter of professional judgment.
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2.3 Presentation of Financial Statements
2.3.1 Purpose of Financial Statements

The objective of financial statements is to provide information about the financial position,
operating performance and cash flows of an entity that is useful to a wide range of users in making
and evaluating resource allocation decisions.
Financial statements also provide information on the results of the stewardship of responsible
Public Officers of the resources entrusted to them for a financial year (1 January to 31 December).
To meet these objectives Covered Entities are required to prepare financial statements, which
provide relevant information on their financial position and performance.
The financial statements comprise the following:
 A statement of financial position
 A statement of financial performance
 A cash flow statement
 Notes comprising a summary of the significant accounting policies and any other explanatory
notes, including analysis of the extent which the Covered Entity complied with the approved
budget
2.3.2 Responsibility for Financial Statements

Responsibility for the preparation of financial statements by Covered Entities is grounded on the
Public Financial Management Act, 2016 Act 921 and the Financial Administration Regulations,
2004 (L.I. 1802).
The Controller and Accountant-General is responsible for the preparation of the Statement of
Public Accounts.
The Auditor General is responsible for the audit and verification of the accounts and their eventual
certification to Parliament and other stakeholders.
Part V of the FAA, 2003 (Act 654) requires that Heads of Covered Entities, at the end of each
financial year, prepare and submit financial statements to the Auditor General, copying the
Controller and Accountant-General.
2.3.3 Components of Financial Statements

A complete set of financial statements should include the matters itemized above. However,
Heads of Covered Entities are encouraged to provide such additional information that will assist
users of the accounts in assessing the financial statements and the stewardship of resources of the
reporting Covered Entity as well as making decisions about resource allocation. This additional
information may include for example; statements of service delivery, programme reviews and
performance indicators.
A complete set of financial statements shall include:
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date balances
 Notes to the accounts including a details of the extent to which the performance criteria in
satisfied.
2.3.4 Overall Considerations
2.3.4.1 Fair Presentation and Compliance with IPSAS

Financial statements should fairly present a Covered Entity’s financial position, financial
performance and cash flows. Fair presentation implies the faithful representation of the effects of
transactions and other events in accordance with the definitions and recognition criteria for assets,
liabilities, revenue and expenses as defined in IPSAS and relevant legislation.
Preparers and Auditors of the financial statements of a Covered Entity should mention the fact
that the financial statements prepared and audited comply with the relevant accounting standards.
All such financial statements should comply with the approved standards in all material respects.
If they do not comply, a statement should be given in a prominent manner to indicate the extent
of, and the reasons for, non-compliance, giving comparative figures if compliance had taken
place.
In virtually all circumstances, fair presentation is achieved only by compliance in all material
respects with applicable accounting standards and relevant legislation. A fair presentation
requires:
 Selecting and applying accounting policies in accordance with paragraph 2.3.4.2 below;
 Presenting information, including accounting policies, which is relevant, reliable, comparable
and understandable; and
 Providing additional disclosures when the requirements in the approved accounting standards
are insufficient to enable users to understand the impact of particular transactions or events
on the Entity's financial position and financial performance.
2.3.4.2 Accounting Policies

Per section 186 of the FAR, 2004, financial statements shall generally be prepared on the accrual
basis except that the Controller and Accountant-General determines the procedures and specific
basis for the preparation of financial statements.
In line with this, the Controller and Accountant-General, in consultation with the Auditor General,
issues accounting instructions which direct Covered Entities accounting personnel in the selection
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and application of accounting policies so that the financial statements comply with all the
requirements of the applicable accounting standards.
Where there is no specific requirement, the Head of the Covered Entities should initiate a DAI to
ensure that the financial statements provide information that is:
a) Relevant to the decision-making needs of users; and
b) Reliable, in that they:
- Represent faithfully the results and financial position of the Entity;
- Reflect the economic substance of events and transactions and not merely the legal form;
- Are neutral, that is free from bias;
- Are prudent; and
- Are complete in all material respects.
In developing an accounting policy that provides the most useful information to users on the
Covered Entities financial circumstances, the accounting staff should consider:
a. The requirements and guidance in approved accounting standards dealing with similar or
related issues;
b. The definitions, recognition and measurement criteria for assets, liabilities, revenue and
expenses as set out in IPSAS 1 on the presentation of financial statements and;
c. Pronouncements of the International Public Sector Accounting Standards Board, other

standard setting bodies and generally accepted best practices, but only to the extent, that
these are consistent with (a) and (b) of this paragraph.
2.3.4.3 Going Concern

Financial statements are normally prepared on the assumption that the Covered Entity will
continue to be in operation and thus be able to meet its statutory obligations in the foreseeable
future.
Hence, it is assumed that the Government has neither the intention nor the need to end or curtail
significantly the scale of the Covered Entity’s operations. If such an intention or need exists, the
financial statements shall be prepared on a liquidated basis and the basis used disclosed.
When financial statements are not prepared on a going concern basis, that fact shall be disclosed,
together with the basis on which the financial statements are prepared and the reason why the
entity is not regarded as a going concern.
2.3.4.4 Consistency of Presentation

The treatment of accounting transactions, including choice of accounting basis, presentation and
classification of specific items in the financial statements should be retained from one period to
the next unless:
1 A significant change in the nature of the operations of the Covered Entity; or
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2 a review of its financial statement presentation demonstrates that the change will result in a
more appropriate presentation of events or transactions; or
3 A change in presentation is required by a new approved accounting standard
2.3.4.5 Materiality and Aggregation

Each material item should be presented separately in the financial statements. Items that are
judged to be immaterial amounts individually should be aggregated with amounts of a similar
nature or function and need not be presented separately.
Financial statements result from processing large quantities of transactions, which are structured
by being aggregated into groups according to their nature or function. The final stage in the
process of aggregation and classification is the presentation of condensed and classified data,
which form line items either on the face of the financial statements or in the notes. If a line item
is not individually material, it is aggregated with other items either on the face of the financial
statements or in the notes. An item that is not sufficiently material to warrant separate presentation
on the face of the financial statements may nevertheless be sufficiently material that it should be
presented separately in the notes.
In this context, information is material if its non-disclosure could influence the economic
decisions of users take based on the financial statements. Materiality depends on the size and
nature of the item judged in the particular circumstances of its omission. In deciding whether an
item or an aggregate of items is material, the nature and the size of the item are evaluated together.
Depending on the circumstances, either the nature or the size of the item could be the determining
factor. For example, individual assets with the same nature and function are aggregated even if
the individual amounts are large. However, large items, which differ in nature or function, are
presented separately.
Materiality provides that the specific disclosure requirements of approved accounting standards
need not be met if the resulting information is not material. The criteria that are used by the
Covered Entity as to what is or is not material should be applied consistently.
2.3.4.6 Offsetting
Assets and liabilities, revenue and expenses, should not be offset unless it is specifically allowed
by approved accounting standards or legislation. Assets, liabilities, revenue and expenses must be
reported separately on the financial statements.
Offsetting assets and liabilities detracts from the ability of users to fully understand the
transactions or events that have occurred and to assess the reporting entity’s future cash flows.
2.3.4.7 Comparative Information

Comparative information should be disclosed in respect of the previous period for all numerical
information in the financial statements. Comparative information should be included in narrative
and descriptive information in the notes to the accounts because the comparatives are important
in understanding the current period's financial statements.
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In some cases, narrative information provided in the financial statements for the previous
period(s) continues to be relevant in the current period. For example, details of a legal dispute,
the outcome of which was uncertain at the last balance sheet date and is yet to be resolved, should
also be disclosed in the current period. This will enable users to assess the impact of the
uncertainty that existed at the last balance sheet date, and the steps that have been taken during
the period to resolve the uncertainty.
When the presentation or classification of items in the financial statements is changed,
comparative amounts should also be reclassified, unless it is impracticable to do so, to ensure
comparability with the current period, and the nature, amount of, and reason for, any
reclassification should be disclosed. When it is impracticable to reclassify comparative amounts,
the reporting Entity should disclose the reason for not reclassifying and the nature of the changes
that would have been made if amounts were reclassified.
Circumstances may exist when it is impracticable to reclassify comparative information to
achieve comparability with the current period. For example, data may not have been collected in
the previous period(s) in a way that allows reclassification, and it may not be practicable to
recreate the information. In such circumstances the nature of the adjustments to comparative
amounts that would have been made are disclosed. Such circumstances are to be found where
retrospective adjustments are required on the comparative information following any changes in
accounting policy.
2.3.5 Structure and Content
2.3.5.1 Introduction
Some disclosures should be made on the face of the financial statements while others may be
disclosed either on the face of the financial statements or in the notes as prescribed by IPSAS 1.
The disclosure requirements for cash flow statements are set out in IPSAS 2 Cash Flow
Statements.
IPSAS 1 uses the term disclosure in a broad sense, encompassing items presented on the face of
each financial statement as well as in the notes to the financial statements. Disclosures required
by other IPSASs are made in accordance with the requirements of those Standards. Unless IPSAS
1 or another Standard specifies to the contrary, such disclosures are made either on the face of the
relevant financial statement or in the notes.
2.3.5.2 Identification of the Financial Statements

Financial statements should be appropriately headed, clearly identified and distinguished from
other information in the same published document.
The approved accounting standards apply only to the financial statements, not to other
information presented in an annual report or some other document. Therefore, it is important that
users are able to distinguish information that is prepared in accordance with approved accounting
standards from other information which may be useful to users but which is not the subject of
these standards.
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Each component of the financial statements should be clearly identified. In addition, the following
information should be prominently displayed and repeated as necessary for a proper
understanding of the information presented:
1. The name of the reporting Covered Entity
2. Whether the financial statements are in respect of the financial transactions of the
Covered Entity alone or includes those of other entities under its control
3. The reporting date of the balance sheet or the period covered by the statement of financial
performance, the changes in net assets and the Cash Flow Statement . A statement shall
be prominently displayed at the beginning of the notes to the accounts that these notes
form an integral part of the financial statements. The primary financial statements should
likewise make this statement in referring to the notes to the accounts;
4. The reporting currency. The reporting currency in Ghana is the Ghana Cedi. Transactions
of the entity that involve foreign currency must be translated to Cedi by following the
requirements for IPSAS 4, The effects of changes in foreign exchange rates; and
5. The level of precision used in the presentation of figures in the financial statements.
Financial statements are often made neater and more understandable by presenting
information in thousands or millions of Cedi, or in whole Cedi omitting the Pesewa, rather
than in precise figures. This is acceptable as long as the level of precision in presentation is
disclosed and relevant information is not thereby lost.
2.3.5.3 Reporting Period

IPSAS requires that financial statements are prepared at least annually. The FAR, 2004 specifies
that financial statements be prepared for the financial year starting on 1 January and ending on 31
December each year.
2.3.5.4 Timeliness
The usefulness of financial statements is impaired if they are not made available to users within
a reasonable period after the balance sheet date. The PFM Act, 2016 stipulates that Heads of
Covered Entities prepare and submit their financial statements to the Auditor-General, Controller
and Accountant-General and the Minister of Finance by 28 February of the year following the
end of the financial year to which the financial statements are related.
2.3.5.5 Statement of Financial Position

The statement of Financial Position also referred to as the Balance Sheet. It gives a representation
of the reporting entity’s assets and liabilities.
Current/Non-Current Assets and Current/Non-Current Liabilities Distinction

Each Covered Entity should present in its financial statements, based on the nature of its
operations, clear classifications between current assets and non-current assets and another
between its current and non-current liabilities as separate classifications on the face of the balance
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sheet. When such classification is impractical the assets and liabilities should be grouped broadly
in their order of liquidity.
Whichever method of presentation is adopted, the Covered Entity should disclose, for each asset
and liability, amounts expected to be recovered or settled within twelve months of the balance
sheet date, and those expected to be recovered or settled beyond twelve months.
Whenever possible, the Covered Entity should present separate classification of current and non-
current assets, current and non-current liabilities on the face of the balance sheet. This provides
useful information by distinguishing the net assets that are continuously circulating from those
used in the Covered Entity's long-term operations, highlighting assets that are expected to be
realized within the current operating cycle and liabilities that are due for settlement within the
same period. The net difference between current assets and current liabilities should be
prominently disclosed, described as working capital, an important measure of short-term liquidity.
Information about the maturity dates of assets and liabilities is useful in assessing the liquidity
and solvency of a Covered Entity. Approved standards require the disclosure of the maturity dates
of both financial assets and financial liabilities. Financial assets include trade and other debtors
and financial liabilities include trade and other creditors. Information on the expected date of
recovery and settlement of non-monetary assets and liabilities such as stocks and provisions is
also useful whether or not assets and liabilities are classified between current and non-current.
Current Assets
An asset should be classified as non-current assets unless it meets the following criteria, in which
case it should be classified as a current asset. A current asset:
i. Is expected to be realised in, or is held for sale or consumption in, the normal course of
the Covered Entity’s operations; or
ii. Is held primarily for consumption or trading purposes or for the short-term and expected
to be realised within twelve months of the balance sheet date; or
iii. Is cash or a cash equivalent asset not restricted in its use
IPSAS 1 uses the term “Non-Current Assets” to include tangible, intangible, operating and
financial assets of a long-term nature. It does not prohibit the use of alternative descriptions as
long as the meaning is clear.
The operating cycle of a Covered Entity is the time between the acquisition of materials entering
into a process and its realization in cash or an instrument that is readily convertible into cash. For
example, the reporting cycle of a Covered Entity is twelve month period during which
Government transfers resources to it and the Covered Entity converts the resources to goods and
services.
Current assets include stocks and trade debtors that are respectively bought, consumed, sold and
realised as part of the normal operating cycle even when they are not expected to be realised
within twelve months of the balance sheet date. Marketable securities are classified as current
assets if they are expected to be realised within twelve months of the balance sheet date; otherwise
they are classified as non-current assets.
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Current Liabilities
A liability should be classified as a non-current liability unless it meets the following criteria, in
which case it should be classified as a current liability. A liability is classified as a current liability
if:
i. It is expected to be settled in the normal course of an Covered Entity’s operations;
ii. It is held primarily for the purpose of being traded,
iii. It is due to be settled within twelve months of the balance sheet date; or
iv. The Covered Entity does not have the unconditional right to defer settlement of the
liability for at least twelve months after the reporting date.
Current liabilities can be categorised in a similar way to current assets. Current liabilities like
government transfers payable and accruals for employee and other operating costs are deducted
from the current assets in arriving at the working capital used in the normal operating cycle of the
Covered Entity. Such operating items are classified as current liabilities even if they are due for
settlement after more than twelve months from the balance sheet date.
Other current liabilities are not settled as part of the current operating cycle, but are due for
settlement within twelve months of the balance sheet date. Examples are the current portion of
interest-bearing liabilities, bank overdrafts, dividends payable and other non-trade creditors.
Interest-bearing liabilities that provide long-term financing are not due for settlement within
twelve months and are therefore classified as long-term, not current liabilities.
That portion of the long-term liabilities that is due for repayment within 12 months of the balance
sheet date should be re-classified as current liabilities (described as “current maturities of long
term liabilities”) and included in determining working capital. An entity should also reclassify its
financial liabilities as current when they are due to settled within twelve months after the reporting
date even if:
i. The original term was for a period of more than twelve months;
ii. The Covered Entity intends to refinance the obligation on a long-term basis; and
iii. That intention is supported by an agreement to refinance, or to reschedule payments,
which is completed before the financial statements are approved.
However, if an Covered Entity expects and has the discretion to refinance or roll over a liability
for at least twelve months after the reporting date under an existing loan facility, it should classify
the liability as noncurrent even if it would otherwise be due in a shorter period. Where refinancing
or rollover of obligations are not at the discretion of the Covered Entity (for example, no
agreement to refinance exists at reporting date), then the potential for refinancing is ignored and
the liability is classified as current.
The classification and re-classification of noncurrent liabilities as current liabilities or vice-versa
in accordance with the foregoing paragraph, together with information in support of this
presentation, should be reconciled and disclosed in the notes to the balance sheet.
Some obligations that are due to be repaid within the next operating cycle may be expected to be
refinanced or “rolled over” at the discretion of the Covered Entity and, therefore, are not expected
to use its present working capital. Such obligations are considered to form part of the Covered
Entity’s long-term financing and should be classified as such. However, in situations in which
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the refinancing cannot be considered to be automatic, the obligation should be classified as current
unless the refinancing agreement is completed before the financial statements are approved.
Some borrowing agreements incorporate undertakings by the borrower which have the effect that
the liability becomes payable on demand if certain conditions related to the borrower's financial
position are breached. In these circumstances, the liability should be classified as long term only
if:
i. the lender has agreed in writing, prior to the approval of the financial statements, not to
demand payment as a consequence of the breach; and
ii. It is not probable that further breaches will occur within twelve months of the balance
sheet date.
Information to be presented on the face of the Statement of Financial Position

As a minimum, the face of the balance sheet shall include line items that present the following
amounts:
i. Property, Plant and Equipment;
ii. Investment Property;
iii. Intangible Assets ;
iv. Financial Assets; (excluding amounts shown under v, vii, viii and ix)
v. Investments accounted for using the equity method;
vi. Inventories;
vii. Recoveries from non-exchange transactions (taxes and transfers);
viii. Receivables from exchange transactions;
ix. Cash and Cash equivalents;
x. Taxes and transfers payable;
xi. Payables under exchange transactions;
xii. Provisions;
xiii. Financial Liabilities; (excluding amounts shown under x, xi and xii)
xiv. Minority interests in net assets/equity; and
xv. Net assets/equity attributable to owners of the entity.
Additional line items, heading and subtotals shall be presented on the face of the balance sheet
when the size, nature or function of an item or the aggregation of similar items is such that separate
presentation is relevant to an understanding of the Covered Entity’s financial position.
The judgements on whether additional items are presented separately are based on an assessment
of the nature and function of assets within the entity and the liquidity of assets as well as the
nature, timing and amounts and liabilities.
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Information to be presented either on the face of the Statement of Financial Position or in the
Notes
A Covered Entity shall disclose either on the face of the balance sheet or in the notes, further sub
classifications of the line items presented in a manner appropriate to its operations.
The level of detail provided in the sub classifications is dependent on the requirements of IPSASs
and the nature, function and size of the amounts involved. For example, taxes and transfers
payable are disaggregated into tax refunds payable, transfers payable and amounts payable to
related parties to the reporting Covered Entity (for example, other Covered Entities).
2.3.5.6 Statement of Financial Performance

The Statement of Financial Performance also referred to as the Income Statement, the Profit and
Loss Account or the Statement of Receipts and Expenditure provides information useful for
measuring the reporting entity’s financial performance.
Surplus or Deficit for the Period

All items of revenue and expenses recognised within a reporting period must be included in the
surplus or deficit for the period. An excess of revenue over expense results in the surplus and the
reverse results in a deficit.
There are some circumstances which permit specific items to be excluded from surplus or deficit
for the period. Such circumstances include, the correction of errors, the effect of changes in
accounting policies (IPSAS 3), revaluation surpluses (IPSAS 17).
Information to be presented on the face of the Statement of Financial Performance

As a minimum, the face of the Statement of Financial Performance should include line items
which present the Covered Entity’s main line items under consistent categories in line with the
Government’s chart of accounts. Separate disclosure should be made for following amounts
where they exist:
i. Revenue;
ii. Finance costs;
iii. Share of surplus or deficit of associates and joint ventures accounted for using the equity
method;
iv. Pre-tax gains or losses recognised on the disposal of assets or settlement of liabilities
attributable to discontinuing operations;
v. Surplus or Deficit
In cases where an entity is not wholly owned by the reporting Covered Entity, the following shall
be disclosed on the face of the Statement of Financial Performance as allocation of the surplus or
deficit for the period.
i. Surplus or deficit attributable to Minority interests; and
ii. Surplus or deficit attributable to owners of the controlling entity.
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Additional line items, headings and sub-totals should be presented on the face of the income
statement when required by a specific IPSAS, or when such presentation is necessary to present
a fair and faithful view of the Covered Entity’s financial performance.
The effects of a Covered Entity’s various activities, transactions and events differ in sustainability,
risk and predictability. The disclosure of the elements of performance assists in an understanding
of the performance achieved and in assessing future results. Additional line items are included on
the face of the income statement and the descriptions used and the ordering of items are amended
when this is necessary to explain the elements of performance.
Factors to be taken into consideration include materiality and the nature and function of the
various components of income and expenses.
2.3.5.7 Statement of Changes in Net Assets

The Statement of Changes in Net Assets/Equity shows the changes in an entity net assets/equity
between two reporting dates, reflecting an increase or a decrease in the net assets of that entity
during the reporting period.
The following items are presented on the face of the Statement of Changes in Net Assets:
1. Surplus or deficit for the period;
2. Each item of revenue and expense for the period that, as required by other Standards, is
recognized directly in net assets/equity, and the total of these items;
3. Total revenue and expense for the period (calculated as the sum of (1) and (2)), showing
separately the total amounts attributable to owners of the controlling entity and to minority
interest; and
4. For each component of net assets/equity separately disclosed, the effects of changes in
accounting policies and corrections of errors recognized in accordance with IPSAS 3.
2.3.5.8 Cash Flow Statement

Cash flow information is useful in providing users of financial statements with a basis to assess
the ability of the Entity to generate cash and cash equivalents and the Entity’s needs to utilize
cash and cash equivalents.
2.3.5.9 Notes comprising a summary of the significant accounting policies and any
other explanatory notes
The notes to the financial statements of a Covered Entity should:
i. Present information about the basis of preparation of the financial statements and the
specific accounting policies selected and applied for significant transactions and events;
ii. Disclose other information required by IPSASs and relevant legislation, such as the
FAR, 2004, that is not presented elsewhere in the financial statements; and
iii. Provide additional information which is not presented on the face of the financial
statements but that is necessary for a true and fair presentation.
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Notes to the financial statements should be presented in a systematic, annotated manner. Each
item on the face of the balance sheet, income statement and cash flow statement should be cross-
referenced to any related information in the notes.
Notes to the financial statements include narrative descriptions or more detailed analyses of
amounts shown on the face of the balance sheet, income statement, cash flow statement and
statement of changes in equity, as well as additional information such as contingent liabilities and
commitments. They include information required, and encouraged to be disclosed, by the
Financial Reporting Standards and other disclosures necessary to achieve a true and fair
presentation.
Notes are normally presented in the following order which assists users in understanding the
financial statements and comparing them with those of other Entities:
i. Statement of compliance with IPSASs;
ii. Statement of the measurement basis (bases) and accounting policies applied;
iii. Supporting information for items presented on the face of each financial statement in
the order in which each line item and each financial statement is presented; and
iv. Other disclosures, including:
1) Contingencies, commitments and other financial disclosures; and
2) Non-financial disclosures.
In some circumstances, it may be necessary or desirable to vary the ordering of specific items
within the notes. For example, information on interest rates and fair value adjustments may be
combined with information on maturities of financial instruments although the former are income
statement disclosures and the latter relate to the balance sheet. Nevertheless, a systematic structure
for the notes is retained as far as practicable.
Information about the basis of preparation of the financial statements and specific accounting
policies may be presented as a separate component of the financial statements.
2.3.5.10 Disclosure of Accounting Policies

The accounting policies section of the notes to the financial statements should describe the
following:
i. The measurement basis (or bases) used in preparing the financial statements; and
ii. Each specific accounting policy that is necessary for a proper understanding of the
financial statements.
In addition to the specific accounting policies used in the financial statements, it is important for
users to be aware of the measurement basis (bases) used (historical cost, current cost, realisable
value, fair value or present value) because they form the basis on which the whole of the financial
statements are prepared. When more than one measurement basis is used in the financial
statements, for example when certain fixed assets are re-valued, it is sufficient to provide an
indication of the categories of assets and liabilities to which each measurement basis is applied.
In deciding whether a specific accounting policy should be disclosed, the Covered Entity Head
should consider whether disclosure would assist users in understanding the way in which
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transactions and events are reflected in the reported performance and financial position. This
consideration should be guided by the instructions issued by the CAG.
Each Entity considers the nature of its operations and the policies which the user would expect to
be disclosed for that type of Entity. For example, Covered Entity would reasonably be expected
to disclose an accounting policy for the recognition of taxes, grants and other non-exchange
transactions.
When an Entity has significant foreign operations or transactions in foreign currencies, disclosure
of accounting policies for the recognition of foreign exchange gains and losses and the hedging
of such gains and losses would be expected. In consolidated financial statements, the policy used
for determining goodwill and minority interest is disclosed.
An accounting policy may be significant even if amounts shown for current and prior periods are
not material. It is also appropriate to disclose accounting policies which are not specifically
required by IPSAS, but selected and applied in accordance with IPSAS 3.
2.3.5.11 Key Sources of Estimation Uncertainty

The reporting Covered Entity must also disclose in the notes, information about the key
assumptions concerning the future and other key sources of estimation uncertainty that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year.
These disclosures in respect of those assets and liabilities must include details of the nature and
carrying amount of related assets and liabilities as at the reporting date.
2.4 GIFMIS Financials

The Ghana Integrated Financial Management Information System (GIFMIS) is a major pillar for
the reform of public financial management in Ghana. GIFMIS is designed to provide a seamless
platform for the management of Government finances from planning, through to reporting.
GIFMIS provides automation support for the budget preparation, budget execution, accounting
and reporting as well as cash management functions of Government.
GIFMIS is based on Oracle E-Business Suite of applications, a leading edge financial application
widely used by governments and large corporations alike for enterprise wide financial
management.
The Government of Ghana is implementing six modules of the Oracle E-Business Suite across all
Covered Entities. The six modules are:
 General Ledger
 Purchase Ordering
 Accounts Payable
 Accounts Receivable
 Cash Management
 Fixed Assets
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GIFMIS is integrated with the Government HRMIS to promote greater efficiency in the
management of Government’s wage bill.
GIFMIS serves as the single platform across all Covered Entities for budget execution, cash and
treasury management and payment of goods and services as well as financial management and
reporting.
GIFMIS will strengthen financial discipline and promote accountability and transparency in
public financial management by automating financial and operating controls among others.
GIFMIS will ultimately promote more effective public service delivery by providing managers in
the public sector and other key stakeholders with the accurate and relevant information on a timely
basis to support informed decision making.
Refer to the GIFMIS Operations Manual for information on how to process transactions on the
platform.
2.5 The Covered Entity Accounting System

The basic financial management and accounting practices and controls underpinning the
management of financial transactions at the Covered Entity are outlined in the Public Financial
Management Act, 2016 Act 921 and the Financial Administration Regulations, 2004 (L.I 1802).
Covered Entities receive resources from the central Government and other sources such as
Development Partners (DP). The Covered Entities use these public funds to provide goods and
services to the public at large.
The financial operations of the Covered Entities are subject to the oversight of the Controller and
Accountant-General and Auditor General, who by law prescribe financial regulations and
requirements, including financial management systems.
Covered Entities must therefore ensure at all times that all the revenue due them are properly
recognised and accounted for; and provide the assurance that the spending of public resources is
in accordance with the approved systems of control and accountability.
It is in order to promote the achievement of this objective that the Government has introduced the
GIFMIS, which is a primary financial management tool across government to foster greater
financial discipline in public financial management.
2.5.1 The Accounting and Finance Function

This section outlines the Finance function of Covered Entities and gives an overview of the file
and records management as well as a discussion of the internal control principles that underpin
the financial management system.
2.5.1.1 Minister of Finance

The Ministry of Finance (MoF) has the overall responsibility for the financial management system
which includes:
 Developing and implementing a macro economic and fiscal policy framework for the country
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Covered Entities
March 2018
 Preparation, publication and control of the national budget as well as the financial accounting
functions of Government
 Supervising the administration of public funds
 Advising Government on resource allocation decisions
 Collating and presenting annual estimates to Parliament for approval
2.5.1.2 Controller and Accountant-General

The Controller and Accountant-General has primary responsibility for the safety and custody of
the Consolidated Fund. The CAG is the Government’s main advisor on matters relating to
accounting. In this regard, the CAG:
 Approves accounting instructions for use by Covered Entities in financial management
 Determines the standards for accounting systems within Covered Entities
2.5.1.3 Heads of Covered Entities

Heads of Covered Entities have the responsibility for ensuring the proper administration of the
resources allocated to them in accordance with approved estimates and in compliance with
approved accounting standards and relevant legislation for financial management.
In this light, the Head of the Covered Entity is responsible for ensuring:
 Maintenance of proper books of accounts in compliance with the instructions issued by the
CAG
 Preparation and presentation of monthly and annual financial statements to CAG, AG and
Minister of Finance as stipulated in the FAR, 2004
2.5.2 Functions of the Finance Directorate

The Department responsible for finance is a service department to the Covered Entity. It has the
overall responsibility for the management of the Covered Entity’s financial affairs. The
Department’s core function is to ensure that the financial resources of the Covered Entity are
managed effectively and efficiently.
The principles for the management of a Covered Entity’s finances are set out in the Public
Procurement Act, 2016 Act 921 and the Financial Administration Regulations, 2004 (L.I. 1802).
The Department responsible for finance oversees and coordinates the implementation of the
appropriate accounting policies and financial management systems to ensure that the financial
and management reports of the Covered Entity complies with the relevant accounting standards
and statutory regulations issued by the Controller and Accountant-General in consultation with
the Auditor General.
In general, the responsibilities of the Finance Department are to:
 Maintain the books of accounts and other records of all the financial transactions of the
Covered Entity
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Covered Entities
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 Comply with statutory and prescribed accounting standards and guidelines

 Make recommendations to the Controller and Accountant-General for amendments to
accounting procedures and / or principles in response to or in anticipation of new
developments (Internal and external)
 Initiate adequate control measures to safeguard the assets and liabilities of the Covered Entity
 Provide accurate, timely and relevant information to the management of the Covered Entity
for informed decision making
 Advise the management of the Covered Entity on all financial matters
 Provide annual financial statements for submission to the Controller and Accountant-General
and other key stakeholders and also to facilitate the work of the Auditor General by providing
such information as may be required for statutory audit purposes.
 Develop and implement internal control procedures for the Covered Entity
2.5.3 Organisation Structure of the Finance and Accounting Function

This section describes the organisational structure and key responsibilities of the Finance and
Accounting functions of Covered Entities.
2.5.3.1 Finance and Accounting Function of Covered Entities
Fig 2. Organisational Structure of the

MDAs’ Department responsible for finance
Head of Finance
Deputy Head of Finance
Accounting,
Payroll Section Reporting and Treasury Section
Monitoring Section
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Covered Entities
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The Finance Division consists of three core sections as shown in the diagram above. The title of
the Head of Finance may differ from one Covered Entity to the next, for example, the position
may be referred to as the Director of Finance or the Director of Finance and Administration, but
the function remains the same.
The functions of the core sections are briefly described below:
Payroll Section
The Payroll Section is responsible for the control of personnel emoluments of a Covered Entity.
It is responsible to liaising with the Payroll Division of the CAGD to ensure that all employee
related emoluments and data are up to date
Treasury Section
The Treasury Section of the Covered Entity is responsible for cash management including:
 Payment and receipt of cash
 Bank account management
Accounting, Reporting and Monitoring Section

This Section is responsible for the maintenance of the Covered Entity’s books of accounts. It is
responsible for advising the Head of the Covered Entity on financial accounting matters and
providing the timely management reports for informed decision making.
The Section is also responsible for the preparation of the Covered Entity’s monthly and annual
statutory financial statements.
It also monitors the effectiveness of internal controls on revenue and expenditure, assets and
liabilities.
Stores
The Stores Section is responsible for maintaining control over the receipt, custody, issue and
disposal of the Covered Entity’s assets and inventory.
2.6 Records Management

The Covered Entities’ financial records and books of accounts must be properly managed for the
efficient operations of the Covered Entity and the Government. Financial records and the books
of accounts are not only required by law but are also an important part of sound financial
management practice.
Financial records and books of accounts are the primary evidence of the activities of the Covered
Entity over time and thus accurate, timely and regular financial information are dependent on the
availability and ease of access to books of accounts and their underlying financial records.
Financial records and books of accounts must thus be properly maintained from the time they are
created or received up to the time of their eventual disposal. The proper management of records
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Covered Entities
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will involve the classification, control and security, storage and destruction or archival
preservation of records in some cases.
Part ten of the FAR, 2004 sets out the principles for the management of financial and accounting
records by Covered Entities.
2.6.1 Filing of Financial Records

Each Covered Entity must establish an archive to hold all financial and accounting records that
are no longer required for day to day office reference purposes.
The financial records of the Covered Entity must be clearly labelled and filed in date order. Pre-
numbered vouchers and receipts must be filed in numerical sequence and periodically reviewed
by a responsible Officer for completeness. If there are any missing receipts or vouchers on a file,
the responsible Officer must notify the person or persons responsible for them to make them
available for the archive.
Serially numbered documents in use must be registered, filed and checked in strict numerical
order. Any gaps in the order of numbering must immediately be investigated and resolved.
All receipts, vouchers and other value books must be properly secured at all times.
2.6.2 Retrieval of Financial Records

Records held in the archive must only be released for use on written authorisation by the Head of
a Covered Entity or an Officer delegated by the Head of Covered Entity to be responsible for the
financial records of the Covered Entity.
For the proper dissemination of information to the relevant stakeholders, it may be necessary to
mark certain files as classified or confidential as appropriate.
Each person who takes a file or any item of financial record should be held personally liable for
the custody and safe return to storage of the financial record. A register must be maintained to
record the issue and return of all financial records. The register must indicate what record has
been issued, to whom and also when the record was returned and to whom.
2.6.3 Distribution of Financial Records

The financial records of a Covered Entity are generally confidential and as such, their distribution
should be restricted only to the responsible officials of the Covered Entity. Administrative
procedures should be put in place for the distribution of financial records and documents only
through properly approved channels and to ensure that they always reach their intended recipient.
Some financial documents however are public documents, an example being the annual financial
statements of the Covered Entity, which are published at the end of each financial year. Such
financial documents should be made readily accessible to the public and where necessary at a
known cost.
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2.6.4 Records Retention and Storage

The retention policy for financial records, which dictates the minimum number of years financial
records should be retained in the Covered Entity’s archives before being transferred to the Public
Records and Archives Administration Department, after the end of the financial year to which
they relate, is outlined in this section. This policy notwithstanding, no financial records should be
destroyed if they are the subject of a present or impending audit query or other investigation.
The minimum retention period for the various classes of financial records is indicated in the table
below:
Table 1a Period of Retention of Records
Category of records Description Period of retention

in years
Ledgers All ledgers 10
Register of Fixed Assets 10
Accounting Reports (Data Processing print 10

outs)
Disbursement Accounts 10
Miscellaneous Attendance Books 5

Accounting Records
Job Cards 5
Vehicle Log books 2
Fixed Asset Inventory records 10
Accounting Staff handing over notes 10
Monthly management reports 10
Staff deduction records 9
Trial balances 10
Monthly cash requirement statements 10
Journal vouchers 10
Other Vouchers Travelling Claim voucher 6
Salary Change Advice 9
Payroll records 9
Purchase Invoices 10
Purchase Order 117
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Covered Entities
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in years
Payment Advice 11
Payment Voucher 117
Supplier statements 7
Bank Advice 10
Cheque books 10
Bank Statements 10
Pay in Slips 12
Cash till rolls 3
Fixed Asset Authorisation form 7
Registers and Master Accounting Manual Indefinitely

Files
Register of accounting manual holders Indefinitely
Register of accounting manual amendments Indefinitely
Consumable Stores standard prices file 2
Register of authorised suppliers 7
Register of Safe and Store keys 10
Master Accounts Code amendments File 10
Register of cheques issued 10
Loss Reports Stores Loss reports 10
Cash Loss reports 10
Asset Loss reports 10
Stores Records Bin Cards 5 after stock balance

is transferred to new
card
Stock control cards or sheets 5 after stock balance
is transferred to new
card
Stores Receipt Advice 5
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in years
Stores Issue Voucher 5
Inventory records 5
Source: Omnibus Schedule for the Retention and Disposition of Public Records
In all cases, a Board of Survey with the Director of Internal Audit or his representative as the
Chair must be convened to recommend the destruction of financial records. The destruction of
financial records should be by burning or shredding.
A record of the financial records destroyed must be maintained indefinitely. The record should
indicate the following details for the destroyed records:
 Name of the document
 Reference number
 Date produced / initiated
 Retention period
 Date destroyed
 Name and signature of approving authority for the destruction of record
This table was to be validated and source provided. Check from the Guidelines on Financial
Record Retention
2.6.4.1 Retention of Electronic Records

Section 8 of the Electronic Transactions Act (Act 772), provides that documents, records or
information kept in electronic form are kept for at least six years Thus all financial records
generated on GIFMIS must be kept in readily accessible storage for at least six years.
2.7 Internal Controls

The CAG is the Government’s chief advisor on all financial accounting matters, including internal
control and financial risk management. The CAG carries out this function in collaboration with
the Director of the Internal Audit Agency.
The main objective of effective internal control is to ensure compliance with all applicable
legislation and other regulations and also to properly safeguard public funds and foster the
economic, efficient and effective use of public funds in accordance with the laws and regulations
that govern their use.
Internal controls can be defined as the whole system of controls, financial, administrative or
otherwise established by Management in consultation with the Director of Internal Audit and the
AG for use by Covered Entities, to secure as much as possible the correctness, accuracy and
reliability of the Covered Entity’s records as well as the security of its assets.
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The Public Financial Management Act, 2016 Act 921, Financial Administration Regulations,
2004 (L.I. 1802) and the Internal Audit Agency Act, 2003, underpin the framework for internal
control.
For internal controls to be effective and efficient, it needs to be based on a strong foundation of
an appropriate internal control environment; where key officials have a clear understanding of the
philosophy, objectives, goals, policies and procedures related to internal control.
The Internal Audit Agency is the central authority for the regulation, coordination and facilitation
of internal audit activities within Covered Entities.
The object of the Internal Audit Unit is to co-ordinate, facilitate and provide quality assurance for
internal audit activities within the Covered Entities.
The core function of the Internal Audit Unit (Internal Audit Agency Act, 2003, Part 1 – Section
3) is to ensure that financial, managerial and operational information reported by the Covered
Entity internally and externally are accurate, reliable, timely and in compliance with the laws,
policies, procedures, standards and plans.
Every official involved in the commitment of public funds must have a strong understanding of
the objectives of internal controls, which are summarised below and include the following:
i. To ensure that the policies of the Covered Entity are carried out effectively to facilitate
the achievement of its objectives
ii. To ensure reliability and integrity of financial statements
iii. To ensure compliance with statutory requirements
iv. To deter and/or prevent fraud, corruption, and related crimes and to provide early warning
signs
v. To ensure that the operations of the Covered Entity are carried out effectively and
efficiently by among others reducing duplication of effort and waste
vi. To protect against loss of the Covered Entity’s assets from misuse, pilferage and other
causes
2.7.1 The Control Environment

The control environment of an Covered Entity includes the actions and attitudes of those charged
with governance and management as well as the governance and management functions and
structures of an Covered Entity concerning its internal controls and the importance of internal
controls to the Covered Entity.
The control environment encompasses a Covered Entity’s:
 Human resource management policies and procedures
 Delegation of authority and approvals processes
 Internal control processes and requirements
 Organisational structure
 Code of conduct
The internal control structures underpins the strength of the control framework of an Covered
Entity, however, it is important that the Head of the Covered Entity and the management team
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Covered Entities
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have a good understanding of the importance of controls to positively influence the effectiveness
of controls in the Covered Entity.
The primary responsibility for establishing an appropriate control environment rests upon the
Head of the Covered Entity. This is a pre-requisite to the establishment of an effective financial
control system.
2.7.2 Operational Aspects of Internal Controls

Internal controls can broadly be grouped in two main classes; accounting controls and
administrative controls.
Accounting controls are primarily aimed at ensuring that accounting records are complete and
accurate and also that they match up to the actual existence of assets and liabilities, income and
expenses.
Administrative controls on the other hand are aimed at ensuring compliance with the Covered
Entity’s policies and procedures and also encouraging reduction of waste and duplication of effort
in the operations of the Covered Entity.
2.7.2.1 Accounting Controls

Accounting controls should ensure:
a. Proper books of accounts are maintained to facilitate data collection, recording,
classification, summarization and reporting
b. Thorough reconciliation procedures are put in place to ensure that transactions are recorded
correctly, data input, and data processing is complete and accurate.
The control procedures will include:
1. Approval and control of documents
2. Checks on the arithmetical accuracy of records
3. Pre-numbering of vouchers
4. Maintenance and review of control accounts
2.7.2.2 Administrative Controls

These are controls instituted to achieve the following:
 Ensure that individual work is organized to achieve the most efficient use of resources to
generate the agreed objectives
 Ensure that resources are adequate at the supervisory level to meet the level of required output.
 Establishment of clear control on the use of assets.
The Covered Entity’s organisational structure is designed to clearly define reporting channels as
well as the areas of responsibility. This allows for the clear demarcation of the Covered Entities
responsibilities to its Departments and Sections, as appropriate and promotes the overall
coordination of the Covered Entity’s activities.
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Covered Entities
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2.7.2.3 Segregation of Duties

Segregation of duties also constitutes an effective internal control mechanism. It is intended to
achieve the following:
1. Creation and distribution of work by establishing separate areas of work to reduce the risk of
intentional errors, abuse, or opportunity for collusion and to promote accountability
2. Establishment of independent validation and reconciliation of one work area by another.
2.7.2.4 Authorisation
This is an essential aspect of internal control aimed at ensuring that, the other aspects of a
workflow are working as expected. It involves
i. Establishment of clear lines of authority.
ii. Ensuring that only legitimate costs are paid for and improper payments are eliminated
2.7.2.5 Supervisory Controls

Supervisory controls should ensure that:
 Internal checks are carried out effectively
 Procedural errors are detected and corrected through systematic checks
 Areas of potential weaknesses are identified; recommendations made for redress and follow
up compliance tests carried out for effectiveness of application.
2.7.2.6 Manpower Resources

A well trained and competent workforce is essential for the effective operation of a Covered
Entity. To this end, a framework for the continuous development of staff is necessary to achieve
effective financial control. This must include a program of constant training to enhance the skills,
knowledge and expertise of staff.
2.7.2.7 Operation of computerized system

The system should ensure that accurate data is available to enable formulation of the plan,
objectives, targets, budgets, and corrective measures to be taken. The accurate data can be made
available through the effective use of Application controls namely Input Control, Processing
Control, Output Control and Database Control.
i Input Controls include all measures instituted to ensure completeness and accuracy of data
input. They involve Batch control, Password Protection, Data conversion checks and Screen
checks
ii Processing controls are those controls applied to confirm the accuracy of data processing by
the computers. They include format checks, reasonableness or range checks, exception
checks, compatibility checks, sequence checks, control totals and control over standing data.
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Covered Entities
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iii Output Controls are the controls designed to ensure accuracy of processed data and reports
as well as distribution is limited to intended users. These include control totals, exception
reports
iv Database/Master File Controls ensure physical security, limited access, authorization of
amendments and periodic checks on accuracy by user departments.
Effective application of these controls promote effective internal control by:
i Providing timely information on actual performance to key management staff to enable
continuous monitoring and control.
ii Assisting management to monitor performance measures that are of financial and non-
financial nature.
iii Identifying deviations from targets /plans and budgets for prompt decision making.
iv Enabling management to anticipate changing circumstances and to be able to correct
performance.
2.7.2.8 Security
With increasing uptake of computerised accounting systems and especially the continuing rollout
of the GIFMIS across government as the single platform for the maintenance of accounts, security
is increasingly becoming of paramount importance.
Extensive security procedures have been built into the GIFMIS to prevent unauthorized voucher
entry, voucher authorization and/or production of cheques. These procedures are based on each
operator and authorizing officer being setup as a user of the system with a user-name and each
user having a secret network or system password which is chosen by the user and regularly
changed.
Each user is prohibited from sharing his/her password with anybody else. These same security
standards are expected of all computerised accounting systems in use.
The use of user names and passwords has the dual role of:
i Restricting a person's access to tasks and code ranges for which he/she is directly involved,
and
ii Enabling a complete transaction log showing who entered particular transactions, when and
on which computer. Safeguards exist to ensure this log is protected from all kinds of
fraudulent behaviour and sabotage - including arson and theft.
Operators and authorising Officers who share their passwords or allow their passwords to be
known to others should be personally held liable for any losses that arise. A security matrix
for users should be developed for each implementation of a computerised accounting system.
2.7.2.9 Scope of Procedural Change

Following the implementation of the GIFMIS, there is a shift in emphasis from maintaining a
multitude of manual books to one where the system handles mundane work and accounts staff
spends more effort in regulating the system, producing, interpreting and distribution of
meaningful reports, budget management and analysis and budgetary control.
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Covered Entities
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The GIFMIS has removed the need for the manual maintenance of books of account, since the
complete and consistent records will be accessible through the system. It is suggested that hard
copies of the various reports be produced at regular intervals during the year, sequentially page
numbered, verified, signed and filed in loose-leaf files. At the year-end all pages should be
collated and bound into books for audit and archive purposes.
The introduction of the GIFMIS also results in some of the accounting forms being unsuitable for
data entry purposes. Entry forms need to be revised to share a similar logical format with the
related entry screen on GIFMIS for example. The Controller and Accountant-General will issue
guidance on how these revisions are to be handled as the GIFMIS is rolled out.
2.8 Control over value books

This section outlines the control procedures for cash handling and the control over value books.
2.8.1 Control of Accountable documents

1 The main stock of used and unused value books shall be under the control of the Head of
Finance and shall be stored under lock and key in the Head of Finance’s office. The Head of
Finance is responsible for the security of the value books in his or her custody.
2 The Head of Finance shall maintain a Stock Register to track issues and receipts of all value
books and issue unused value books to responsible Officers, only in exchange for a fully used
one.
3 The Head of Finance shall also maintain a Distribution Register to track details of all value
books issued to responsible Officers.
4 Requisitions for replenishment of value books shall be authorised by the Head of Finance and
the Head of Covered Entity.
2.8.2 Cancelled Receipt / Cheque leaflets and other value books

Irrespective of the reason; where a receipt, cheque leaflet or other value book is cancelled, the
Head of Finance must ensure that:
 The cancelled copy has been clearly marked as cancelled
 All cancelled copies are retained in the booklets
2.8.3 Cash Control and Security

1 All cash and accountable documents must be kept in the safe provided by the Covered Entity.
The safe shall be of such a design that two keys are required to open it. The Head of Finance
and the Cashier shall keep a key each. Duplicates of the key shall be deposited with a bank
and used only in emergencies. Both the Head of Finance and the Cashier shall sign requests
for access to the duplicate keys. In the absence of either person, the Head of Covered Entity
may act as a signatory.
2 The Cashier must ensure that the safe is locked whenever it is not in use
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Covered Entities
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3 Cash and cheque receipts should be banked with 24 hours of receipt or the next working day
as practicable.
4 The Cashier must lock up all unbanked cash at the end of each day
5 The Head of Finance must ensure that all revenue receipts are banked gross
6 Monies collected on behalf of the Covered Entity cannot be used for any other purposes. The
total amount collected must be deposited in the Covered Entity’s designated bank account
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Covered Entities
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3 Chart of Accounts
3.1 Purpose
Covered Entities process large volumes of financial transactions each year. These transactions
need to be recorded according to a structured framework from which they can be measured,
summarized and analysed for management and policy formulation purposes. The classification or
chart of accounts provides that framework.
The chart of accounts is therefore a list of all the accounts that are used to classify transactions in
the general ledger.
The Chart of accounts provides a basis for financial data collection and processing. It facilitates
coordination of different types of work carried out by different staff as well as providing a
framework for compilation of Financial Statements
3.2 Overview of the Chart of Accounts

As part of ongoing public financial management reform initiatives the Government of Ghana has
adopted the Government Financial Statistics, 2001 version 2 (GFS), published by the International
Monetary Fund, as the framework for its chart of accounts. This is to among others, introduce
consistency in the classification of financial transactions across the country for all Covered
Entities.
A new chart of accounts has thus been developed taking into consideration the GFS and
Government’s reporting requirements. The main features of the chart of accounts are:
i. It reflects financial responsibility and accountability
ii. It enables analyses of the budget by sector, geography and activity
iii. It follows a logical pattern and so after some initial training and experience is relatively
simple to understand and operate
iv. It allows scope for future refinement and development and the introduction of more
sophisticated forms of accounting; elements of accrual accounting are already provided
for
v. It facilitates the integration of recurrent and development activities and provides for the
separation of recurrent and development expenditure
vi. It enables direct comparison of budget, commitment and actual transactions on modified
accrual accounting and also facilitates measurement of resources.
vii. It introduces cost centre budgeting and accounting, which provides management of a
budget at a decentralized level. These cost centres are equivalent to Head and sub Head
Controllers as well as projects
viii. It facilitates the production of consistent financial information at different levels of
aggregation, resulting in a consolidated level of accountability to all interested parties.
ix. It is based on the International Monetary Fund, Government Finance Statistics Manual
(GFS)
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Covered Entities
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The chart of accounts has been designed to reflect the generic organisational structure of
Government and its requirements for financial reports. The accounts codes are built up in a
structured manner to provide a sound foundation for the classification of financial transactions
and the production of analytical reports.
All transactions are classified using a 74 character code, which is broken down into distinct
segments and components enabling analysis of data in various different combinations and levels.
The table below shows the segments and the components within those segments.
The chart of accounts comprises 74 characters divided into ten segments as shown in the table
(1b) below:
Segment Classification Segment Description Number of

Components Characters
Segment 1 Institution Reporting entity Government of 2
Ghana
Segment 2 Funding Fund Type and Consolidated 5
Fund Source Fund, Other
Funds
Segment 3 Function of Head 3
Government
Sub Head 1
Sub Sub Head 1
Segment 4 Organisation Covered Entity 3
Department or 2
Agency
Division 2
Unit 3
Segment 5 Program 6
Segment 6 Sub Program 7
Segment 7 Project 7
Segment 8 Activity 6
Segment 9 Location Region 2
District 2
District type 1
Sub Metro 2
Segment 10 Policy Objective 6
Segment 11 6
Segment 12 Natural Account Account Class Revenue, 1
Expenditure,
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Covered Entities
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Segment Classification Segment Description Number of

Components Characters
Asset and
Liabilities
Head Assets and 1
Liabilities
Item 1
Sub item 1
Sub sub item 3
Total 74
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Covered Entities
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Presented below is an illustration of the coding grid as it may appear for the various segments of the chart of accounts using the CAGD as an
example:
Table 1c
Transaction Institution Funding Function of Organisation Program Sub Project Activity Location Natural Account
type Government Program
Entity
Dept or Donor
Account Class
Sub Sub Head
MCOVERED
Sub Sub item

District Type
Sub Metro
Sub Head
ENTITY
Sub item
Division
Covered
District
Region
Head
Head
Item
Unit
Compensation 01 11001 701 1 2 010 02 00 000 000000 0000000 0000000 000000 03 00 0 00 2 1 11 001
of Established
Post
Printed 01 11001 701 1 2 010 02 00 000 000000 0000000 0000000 000000 03 00 0 00 2 2 10 101
Material and
Stationery
Bungalows / 01 11001 701 1 2 010 02 00 000 000000 0000000 0000000 000000 03 00 0 00 3 1 1 1 103
Flats
Accounts 01 11001 701 1 2 010 02 00 000 000000 0000000 0000000 000000 03 00 0 0 4 1 1 7 502
payable –
Goods
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Covered Entities
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Using a building block metaphor, the detailed coding of transactions provides a sound foundation
for producing consistent reports at successive levels of analysis. The accounts codes are built up
in a structured manner to provide a sound foundation for the classification of financial transactions
and the production of analytical reports.
The chart of accounts is the underlying framework for the classification of all financial
transactions and has been designed to provide linkages between transactions as well as the stages
in the budget cycle. Its harmonised nature also means that Government can have a coherent picture
of all its activities across the country in a more efficient manner. The chart of accounts is thus an
integral part of the GIFMIS.
The codes of the chart of account consist of 74 characters, divided into twelve segments. Using a
building blocks metaphor, the segments of the chart of accounts are explained below:
3.2.1 Segment 1 - Institution

Institution: An institutional unit is defined in the Government Financial Statistics, 2001 manual,
as “an economic entity that is capable, in its own right, of owning assets, incurring liabilities, and
engaging in economic activities and in transactions with other entities”. In this light, the
Government of Ghana is defined as an institutional unit. The various Covered Entities of State
are not institutional units because they generally are funded by appropriations from the budget,
which is controlled by the Parliament of Ghana, their budgets, and related financial reports are
consolidated as the financial statements of the Government of Ghana.
It is represented by 2 characters
3.2.2 Segment 2 – Funding

This segment identifies the fund type and source into which monies are received and from which
payments are made. It indicates whether funds are from the Consolidated Fund or other funds
The source of funding is represented by 5 characters
3.2.3 Segment 3 – Function of Government

This segment provides an overview of expenditure on the broad socioeconomic objectives of
Government. It allows information to be collated on expenditure for the functions of Government,
which can be analysed to provide useful information to key stakeholders, such as the effectiveness
of programs aligned to a socio economic objective.
It comprises five numeric characters
i. Head: represents the broad classification of a Government function such as Health,
Education, Defence etc.
The Head is represented by the first 3 characters of the Function of Government segment
on the Chart of Accounts
ii. The next character represents a Sub Head under the Head. A Sub Head represents a sector
under a function of Government such as Hospital Services under the main function (Head)
of Heath
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Covered Entities
March 2018
The last character represents the Sub Sub Head. This is a class within the sector (Sub Head) an
example will be Maternity Services under Hospital Services.
3.2.4 Segment 4 – Organisation

This segment identifies the organisation responsible for the financial transaction. It comprises 10
numeric characters on the Chart of Accounts. It is divided into the following sub segments:
i. Covered Entity
This represents the Spending unit within Government. It is identified by three numeric characters
ii. Department or Agency
This represents Departments or Cost Centres of the Covered Entity. It is identified by two numeric
characters
iii. Division
This represents a Division or Section of the Departments of the MCovered Entity. It is identified
by two numeric characters
iv. Unit
This represents a Unit / Section of the Division of the Covered Entity. It is identified by three
numeric characters
3.2.5 Segment 5 – Programme

This segment outlines the programmes of the Covered Entities. It is identified by six numeric
characters
3.2.6 Segment 6 – Sub Programme

This segment identifies the key components of the Programme. It is identified by seven numeric
characters
3.2.7 Segment 7 – Project

These are development projects within the Covered Entity. It is represented by seven numeric
characters
3.2.8 Segment 8 - Activity

This segment represents the tasks and activities to be completed under a project. It is identified
by six numeric characters
3.2.9 Segment 9 – Location

This segment identifies the geographical location of the financial transaction. It is represented by
seven numeric characters as follows:
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March 2018
 Region
This identifies which Region of the country. It is represented by two numeric characters
 District
This identifies the District in the Region. It is also represented by two numeric characters
 District Type
This classifies Districts into Metropolitan, Municipal or District Assemblies. It is represented by
one numeric character
 Sub Metro
This identifies the Sub Metropolitan offices of Metropolitan Assemblies. It is represented by two
numeric characters.
3.2.10 Segment 10 – Policy Objectives

This segment outlines the broad objectives the Government through the Covered Entities has set
itself to achieve. It is identified by six numeric characters
3.2.11 Segment 11 – Spare

This is to take account of future business expansion and to make the system more flexible. It has
six numerical characters
3.2.12 Segment 12 – Natural Accounts

This represents the classification of financial transactions into revenue, expenditure, assets or
liabilities.
It determines the accounting treatment of accounting treatment of transactions as well as some
reporting requirements.
It is based on the Government Financial Statistics (GFS) published by the International Monetary
Fund for compiling national statistics.
By using the GFS framework, the Chart of Account categorises transactions according to their
nature and applies an identical classification structure for recurrent and development purposes.
This will enhance the ability to more accurately aggregate public sector revenues and expenditures
for macroeconomic reporting and for policy formulation purposes
The segment comprises 7 numeric characters, made up of the five sub sections below:
 Account Class
This represents the classification of transactions into assets, liabilities, revenue and expenditure.
It is identified by one numeric character.
 Head
This applies only to assets and liabilities. It represents a category of assets or liabilities of a similar
nature. It is represented by one numeric character.
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 Item
The item represents a category under the Account Class. It is represented by one numeric character
 Sub Item
This represents a group of transactions under the Item. It is represented by two numeric characters
for revenue and expenditures transactions and one numeric character for asset and liabilities
transactions
 Sub Sub Item
This represents a group of transactions under the Sub Item. It is represented by three numeric
characters
Table 1d below outlines a high level summary of the natural accounts
Table 1d
Account Class Description GFS Flow Nature of Item

Account
1 Revenue
Taxes Inflow Revenue 11
Donor Grants and Inflow Revenue 13
Reliefs
Other Revenue Inflow Revenue 14
2 Expenditure
Compensation of Outflow Expenditure 21
Employees
Use of Goods and Outflow Expenditure 22
Services
Consumption of Outflow Expenditure 23
fixed capital
Interest Outflow Expenditure 24
Grants Outflow Expenditure 26
Social Benefits Outflow Expenditure 27
Other expenses Outflow Expenditure 28
3 Assets
Non-Financial Inflow/Outflow Asset 31
Assets
Financial Assets Inflow/Outflow Asset 32
4 Liabilities
Domestic Inflow/Outflow Liability 41
Foreign Inflow/Outflow Liability 42
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3.3 Structure of the Chart of Accounts

The GFS/Accounts classification comprises of seven digits. The first character identifies the
Account class; the next character identifies an item in the account class (for revenue and
expenditure items) or a Head (for asset and liability items – in which case the next character
identifies the item).
The next character or the next two characters identify an item within the earlier category for asset
and liabilities or revenue and expenditure respectively. And the last three characters represent the
specific item in the group.
The chart of accounts structure enables the GoG to tailor its reporting to the requirements of
International Public Sector Accounting Standards (IPSASs) issued by the International Public
Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants
(IFAC).
Table 1e illustrates the structure of the chart of accounts
Table 1e
Account Class Item Sub Item Sub Sub Item

2 Expenditure 22 Use of Goods and 2210 Materials and 2210100 Printed Material
Services Office Consumables and Stationery
2210102 Office Facilities,
Supplies & Accessories
2210103 Refreshment
Items
2210104 Medical
Supplies
2210105 Drugs
2210106 Oils and
Lubricants
2210107 Electrical
Accessories
2210108 Construction
Material
2210109 Spare Parts
2210110 Specialised
Stock
2210111 Other Office
Materials and
Consumables
2210112 Uniform and
Protective Clothing
2210113 Feeding Cost
2210114 Rations
2210115 Textbooks &
Library Books
2210116 Chemicals &
Consumables
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Account Class Item Sub Item Sub Sub Item

2210117 Teaching &
Learning Materials
2210118 Sports,
Recreational & Cultural
Materials
2210119 Household
Items
2210120 Purchase of
Petty Tools/Implements
2210121 Clothing and
Uniform
3.4 Related Documents and References

The related documents and references for the chart of accounts as follows:
i. References
a. The GIFMIS chart of accounts of the GoG
b. GIFMIS user manuals
ii. Forms
a. Chart of accounts update form
3.5 Maintenance of the Chart of Accounts

The Controller and Accountant-General has the sole responsibility for the management of the
chart of accounts. This implies the Controller and Accountant-General is the custodian of the
chart of accounts.
All requests for changes to the chart of accounts must be addressed in writing to the Controller
and Accountant-General. In view of the broader reach of the chart of accounts, the Controller and
Accountant-General shall consult Director of Budget with respect to requests for changes to the
budget classifications.
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4 Budgeting
4.1 Introduction
The budget is an action plan of the Government of Ghana’s revenue from all sources and how
such revenue will be spent in accordance with its objectives, programmes and activities,
prioritised for a specified period. The budget represents monetary a quantification of the annual
action plans of public sector institutions.
Budgets are thus an integral part of the planning process and focuses attention on the achievement
of set targets in line with the objectives and priorities of Government.
4.2 Policies and Regulations

The legal framework governing the budget formulation process is founded on the following
legislation:
i. The Constitution of the Republic of Ghana
ii. The Public Financial Management Act, 2016 Act 921
iii. The Financial Administration Regulations, 2004 (L.I. 1802)
iv. The Appropriations Act that is passed for every fiscal year
v. Public Procurement Act, 2003 (Act 663)
The main provisions of the legislative framework are summarised below:
 The Constitution
o The President of the Republic of Ghana, acting through the Minister responsible
for Finance, causes the preparation of estimates of the revenue and expenditure
of the Government of Ghana in respect of the following financial year and laid
before Parliament, at least one month before the end of the current financial year.
The President may request the estimates of revenue and expenditure to be
prepared for a period exceeding one financial year.
 The Public Financial Management Act, 2016 (Act 921)
(1) The Minister is responsible for the policy and strategic matters related to the efficient operation
of the public financial management system of the country subject to policy guidance from
Cabinet.
(2) For the purpose of (1) and subject to the Constitution and any other enactment, the Minister
shall
 prepare the annual and supplementary budget estimates and reports for submission
to Parliament;
 submit to Parliament for approval, the budget of covered entities as required under
this Act or any other enactment to ensure compliance of the covered entities;
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Covered Entities
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 monitor and assess the implementation of the annual budget and ensure the
implementation of the fiscal policy of Government;
4.3 Budget Preparation and Approval

The procedure involved in the preparation of budgets by Covered Entities are outlined in this
section
4.3.1 Budget Planning and Formulation
4.3.1.1 Roles and Responsibilities

PARTICIPANT ROLES AND RESPONSIBILITIES
Minister Responsible for Finance  Issue budget guidelines to all Covered
Entity Heads
 Receive and endorse draft GoG annual

draft budget estimates
Director of Budget  Receive draft Covered Entity budget

estimates from all Covered Entities
 Facilitate Budget hearings with Covered

Entities
 Consolidate Covered Entity budget

estimates into the draft GoG annual
budget estimates
 Submit draft GoG annual budget estimates

to the Minister responsible for Finance
Head of Covered Entity  Receive budget guidelines
 Allocate ceilings to Cost Centres
 Approve and submit Covered Entity

budget estimates to Director of Budgets
Covered Entity Budget Committees  Facilitate budget hearing sessions with all
Cost Centre Heads
 Harmonise and consolidate departmental

budget estimates for the Covered Entity
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 Submit Covered Entity budget estimates

to the Head of Covered Entity for approval
Office of the Head of Civil Service / Public  Issue circular on manpower guidelines
Services Commission
 Hold manpower hearings
Covered Entity Cost Centre Heads  Receive notification of budget guidelines
and ceiling allocations
 Prepare Cost Centre budget estimates
 Submit draft Budget estimates to the

Sector Ministry for consolidation, review
and approval
4.3.1.2 Documents (Input / Output)

NAME INPUT OUTPUT
Budget guidelines 
Cost Centre Ceiling Allocations 
Manpower guidelines 
Draft Cost Centre budget estimates 
Draft Covered Entity budget estimates 
Draft GoG budget estimates 
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4.3.1.3 Budget Planning and Formulation Process

BU01 – Budget Planning and Formulation
responsible for
Finance
Minister
BU01-1
Issue budget
guidelines to all
MDA Heads
Head of Civil
Office of the
Service
BU01-4
BU01-3 Prepare and issue
Hold manpower manpower
hearings guidelines to all
MDA Heads
Head of MDA
BU01-5
BU01-2 Incorporate BU01-6
Receive and review manpower ceilings Constitute and A
budget guidelines in estimate Budget Committee
preparation
Yes
Budget Committee (MDA)
BU01-7
BU01-8 BU01-11
Determine Cost
Notify Cost Centre Receive and BU01-12
Centre ceilings
Heads of ceilings discuss budget Accurate &
based on MDA
and guidelines for estimate at Budget complete?
constraints and
budget preparation Hearing
sector priorities
No
BU01-13
Notify Cost Centre
Head to make
amendments
Centre Heads
MDA Cost
BU01-9
BU01-10 BU01-14
Receive guidelines
Submit Cost Centre Make necessary
and prepare Cost
budget estimates to amendments to
Centre budget
Budget Committee budget estimates
estimates
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BU01 – Budget Planning and Formulation

MDA Budget
Committee
BU01-16
BU01-15 BU01-23
Submit consolidated
A Consolidate draft Make necessary
budget estimates to
Cost Centre budget amendments to
Head of MDA for
estimates budget estimates
approval
Head of MDA
BU01-17 BU01-18 BU01-22

Review and Forward MDA Receive notification
endorse MDA consolidated and instruct Budget
consolidated budget to Director Committee to make
budget estimates of Budget necessary changes
BU01-19 BU01-21
Receive and BU01-20 Notify MDA Head to
discuss MDA Accurate & No make the
Director of Budget
budget at complete? necessary

ministerial hearing amendments
Yes
BU01-25
BU01-24
Submit consolidated
Consolidate MDA
budget estimates to
budget estimates
the Minister of Finance
responsible for
Finance
Minister
BU01-26 BU01-27
Receive and review Endorse draft BU02
draft national budget national
budget estimates estimates
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4.3.1.4 Process Description

1 The Minister responsible for Finance issues budget guidelines to all Covered Entity Heads to
provide guidance on the format of budget documents and statements, classification and
costing of budgetary activities, procedures and timelines for the preparation and submission
of the budget
2 The Office of the Head of Civil Service shall also hold manpower hearing and issue guidelines
and manpower ceilings to all Covered Entity heads
3 Heads of Covered Entities receive the budget guidelines from the Minister of Finance and
constitutes a Budget Committee to coordinate the preparation of the Covered Entity’s budget
estimates
4 The Budget Committee determines ceilings for Cost Centres based on the Covered Entity’s
constraints and sector priorities and notify the Cost Centre Head accordingly in internal
guidelines for the preparation of budge estimates
5 The Cost Centre Heads shall receive the guidelines and prepare the Cost Centre’s draft budget
estimates. The Cost Centre Heads submits the draft budget estimates to the Budget Committee
for review and consolidation
6 The Budget Committee facilitates a budget hearing to discuss and review the Cost Centre
draft budget estimates to ensure that the estimates are in line with the Covered Entity’s
strategic plans and ceilings, sector and ministerial policies. If any Cost Centre estimates are
not in line with the guidelines or the ceilings, the Budget Committee returns the estimates to
the Cost Centre Head to make the necessary corrections and resubmit for review
7 The Budget Committee consolidates the Cost Centre budget estimates into the draft budget
estimates for the Covered Entity and submits it to the Head of the Covered Entity for approval
8 The Head of the Covered Entity shall endorse the consolidated Covered Entity draft budget
estimates and forward it the Director of Budget
9 The Director of Budget receives all the Covered Entity draft budget estimates and facilitates
a ministerial hearing to discuss and review the Covered Entity draft budget to ensure that they
are in line with the approved ceiling and national priorities and strategic objectives. If an
Covered Entity’s draft estimates are not consistent with the approved ceiling or national
priorities, the Director of Budget returns it the relevant Covered Entity Head to make the
necessary changes and resubmit the draft estimates for review
10 The Director of Budget consolidates the Covered Entity draft budgets into the draft national
budget and submits it to the Minister responsible for Finance
11 The Minister responsible for Finance receives and reviews the draft national budget and
endorses it. The Minister then presents the endorsed draft national budget to Cabinet for
approval as described below in this manual.
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Covered Entities
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4.3.2 Budget Approval

Minister responsible for Finance  Submit draft national budget estimate to
the Cabinet for approval
 Submit draft national budget estimates to

Parliament for review
 Present draft national budget estimates to

Parliament for approval
Cabinet  Review and approve draft national budget

estimates
 Submit Appropriation Bill to Parliament
Parliament  Receive and review draft national budget

estimates (Appropriation Bill)
 Approve draft national budget estimates
 Pass Appropriation into Appropriation

Act
President  Sign Appropriation Act for

implementation

NAME INPUT OUTPUT
Draft national budget estimates 
Appropriation Bill 
Appropriation Act 
Approved national budget estimates 
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4.3.2.3 Budget Approval

BU02 – Budget Approval
President
BU02-15
BU02-16
Receive and sign
End Sign approved national
Appropriation and
budget estimates
Finance Bills into Acts
BU02-14
BU02-6 BU02-10 Submit approved
BU02-7
Review and debate Endorse and forward national budget,
Amendments No
draft national draft national budget Appropriation and
required?
Parliament
estimates estimates to Minister Finance Bills to the

President to ratify
Yes
BU02-13
BU02-8 Approve national
Notify Minister budget estimates and
responsible for enact Appropriation
Finance and Finance Bills
Minister responsible for Finance
BU02-1
Submit draft BU02-5 BU02-12
BU02 BU02-9 BU02-11
national budget Present draft Present national
Make necessary Receive endorsed
estimates to national budget budget estimates in
amendments to national budget
Cabinet estimates to to Parliament for
budget estimates estimates
Parliament approval
BU02-4
Receive approved
draft national
budget estimates
BU02-3
Cabinet
BU02-2
Approve and submit
Receive and review
draft national budget
draft national
estimates to Minister
budget estimates
responsible for Finance
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1 The Minister responsible for Finance presents the draft national budget estimates to the
Cabinet for approval
2 The Cabinet receives and reviews the draft national budget for consistency with the
programmes, activities and policies of the Government. The Cabinet approves and returns the
draft national budget estimates to the Minister responsible for Finance
3 The Minister responsible for Finance receives the draft national budget estimates as approved
by Cabinet and presents it to Parliament for review
4 Parliament receives and reviews the draft national budget. The Finance Committee and other
Parliamentary Select Committees review and discuss Covered Entity budget with the relevant
Covered Entity Heads and Officers from the Ministry responsible for Finance. The Finance
Committee then reports to the full House on the draft national budget estimates. The House
debates the draft national estimates. The House may recommend revision of the draft budget
estimates, in which case, the Minister responsible for Finance shall cause the draft budget
estimates to be amended accordingly and resubmit the revised draft budget estimates to
Parliament for consideration. Otherwise Parliament endorses the national budget estimates
5 The Minister responsible for Finance lays the endorsed national budget estimates with the
Appropriation Bill before Parliament.
6 Parliament approves the national budget estimates and passes the Appropriation Bill into an
Act and submits the Act to the President for ratification
7 The President receives and signs the Appropriation Act and also approves the budget
4.3.3 Supplementary Budget

The need for a supplementary budget arises when the Head of Covered Entity considers that the
underlying assumptions of the approved budget have changed significantly with the effect that
the budget no longer adequately covers existing activities for the financial year or there is the
need for new activities, which were not foreseen at the time the budget was approved.
Where additional expenditure is of such an urgent nature that the Covered Entity cannot postpone
it to the next financial year or meet it by prioritisation of the activities of the Covered Entity
(reallocation of expenditure from other items) without adversely affecting its ability to deliver on
its key performance indicators, then a supplementary budget is prepared.
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Covered Entities
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Head of Covered Entity  Apply to Minister responsible for Finance
for a supplementary budget estimates with
justification
 Receive notification of approval of

supplementary budget
Minister responsible for Finance  Review application for supplementary

budget
 Present supplementary budget estimates to

Parliament for approval
 Notify Head of Covered Entity of

approval of supplementary budget
Parliament  Receive and review supplementary budget

estimates
 Approve supplementary budget estimates

NAME INPUT OUTPUT
Draft supplementary budget estimates 
Approved supplementary budget 
Notification of approval of 
supplementary budget
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Covered Entities
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4.3.3.3 Supplementary Budget

BU03 – Supplementary Budget
BU03-1
Determine need for
supplementary
budget estimates
Head of MDA
BU03-3
BU03-10
BU03-2 Submit draft
Receive notification
Prepare draft supplementary
of approval and End
supplementary estimates to Minister
commence
budget estimates responsible for
implementation
Finance
Minister responsible for FFinance
BU03-4
Receive and review BU03-9
draft supplementary Notify Head of MDA
estimates
BU03-5
Submit draft
supplementary BU03-8
estimates to Receive approved
Parliament for supplementary
approval budget
Parliament
BU03-6 BU03-7
Receive and review Approve
draft supplementary supplementary
budget estimates budget estimates
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Covered Entities
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1 The Head of a Covered Entity determines the need for a supplementary budget as a result of
significant changes in the assumptions underlying the approved budget or the need for new
activities, which were unforeseen during the budget formulation period but which are urgent
and cannot be postponed to the next year. The Head of Covered Entity prepares supplementary
budget estimates and applies to the Minister responsible for Finance with justification.
2 The Minister responsible for Finance receives and reviews the application for supplementary
budget. The Minister endorses and presents the supplementary budget to Parliament for
approval
3 Parliament receives and reviews the supplementary budget estimates from the Minister
responsible for Finance. Parliament debates and approves the supplementary budget
4 The Minister responsible for Finance receives the approved budget and then notifies the Head
of Covered Entity
5 The Head of receives notification of the approved supplementary budget and commences
implementation
4.4 Budget Release and Execution
4.4.1 Introduction
The purpose of the budget release process is to enable Covered Entities access the budget
approved by Parliament for specific activities. It also aims at ensuring that Covered Entities
effectively control their respective expenditure to eliminate or minimise over commitments.
4.4.2 Cash Plan Preparation

After receiving the approved budget, the Head of the Covered Entity instructs all Cost Centre
Heads of the Covered Entity to prepare cash plans indicating the timing of their cash requirements.
The Cost Centre Heads prepare and submit their respective cash plans to the Budget Committee
for review and consolidation. The Budget Committee submits the cash plans to the Minister
responsible for Finance through the Head of the Covered Entity. These cash plans are used as the
basis for determining the ceilings for periodic cash releases to the Covered Entity and its Cost
Centres.
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Covered Entities
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Head of Covered Entity  Instruct Cost Centre Heads to prepare cash
plans after receiving approved budget
 Review and endorse consolidated cash

plan
 Submit Covered Entity cash plan to the

Minister responsible for Finance  Receive and review cash plan
 Forward to Director of Budget to

determine cash ceilings for periodic cash
releases to Covered Entity
Budget Committee  Receive and review Cost Centre cash

plans
 Consolidate Cost Centre cash plans and

submit to Head of Covered Entity for
approval

NAME INPUT OUTPUT
Cost Centre cash plans 
Covered Entity cash plan 
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Covered Entities
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4.4.2.3 Cash Plan Preparation process

BU04 – Cash Plan Preparation
Director of
Budget
BU04-13
Determine cash
End
ceilings based on
approved cash plans
Minister responsible
for Finance
BU04-12
Endorse MDA cash
BU04-11
plan and forward to
Receive and review
Director of Budget for
MDA cash plan
cash ceiling
determination
Head of MDA
BU04-2
BU04-10
Convene Budget BU04-9
BU04-1 Submit consolidated
Committee to Receive and endorse
Receive notice of cash plan to Minister
coordinate consolidated cash
budget approval responsible for
preparation of cash plan
Finance
plan
Committee
BU04-8
Budget
BU04-3 BU04-6
BU04-7 Consolidate Cost
Issue guidelines for Receive and review
Accurate & Yes Centre cash plans
Cost Centre Heads to Cost Centre cash
complete? and submit to Head
prepare cash plans plan
of MDA
Cost Centre
Heads
BU04-5
BU04-4
Submit / amend cash No
Prepare cash plans
plan
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Covered Entities
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1 The Head of Covered Entity receives notification of the approval of the budget from the
Minister responsible for Finance and convenes the Budget Committee to coordinate the
preparation of cash plans
2 The Budget Committee issues guidelines to all Cost Centre Heads for the preparation of their
respective cash plans
3 The Cost Centre Heads prepare and submit their respective cash plans to the Budget
Committee for review
4 The Budget Committee facilitates a hearing to review the respective Cost Centre cash plans.
Where cash plans are found to be inconsistent with the approved budget, the relevant Cost
Centre Heads is advised to make the necessary changes to the cash plan and resubmit it for
review. Otherwise if all the cash plans are consistent with the approved budget, the Budget
Committee consolidates the Cost Centre cash plans into the Covered Entity cash plan and
submits it to the Covered Entity Head for approval
5 The Head of the Covered Entity receives and reviews the consolidated cash plan from the
Budget Committee. The Head of Covered Entity endorses the consolidated cash plan and
submits it to the Minister responsible for Finance for approval
6 The Minister responsible for Finance receives and reviews the consolidated cash plan from
the Head of Covered Entity. The Minister endorses the consolidated Covered Entity cash plan
and forwards it to the Director of Budget for the determination of cash ceilings for the relevant
Covered Entity
7 The Director of Budget receives the approved cash plan and uses it in the determination of
cash ceilings for Covered Entities
8 The Minister responsible for Finance issues releases with warrants to Covered Entities based
on the approved cash plans
4.4.3 Warrant Release Distribution and allocation to items

The Minister responsible for Finance, issues warrant releases to Covered Entities. Heads of
respective Covered Entities distribute the warrant releases to Cost Centres based on the Covered
Entity’s cash plan. Cost Centre Heads subsequently distribute the warrant releases to items based
on the approved cash plan.
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Covered Entities
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Director of Budget  Issue warrant release to Covered Entity
Head
 Issue copy of warrant release to CAG
Head of Covered Entity  Receive warrant release notification
 Allocate and forward warrant release

allocations to Cost Centres
 Review and approve allocation to items by

Cost Centre Heads
Cost Centre Heads  Receive notification of warrant release

allocation to Cost Centre
 Allocate warrant release to items
Controller and Accountant-General  Receive copy of warrant releases to

Covered Entity

NAME INPUT OUTPUT
Warrant Release Notification 
Warrant release distribution 
notification
Allocation to items – Covered Entity 
Cost Centres
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Covered Entities
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4.4.3.3 Warrant Release Distribution to Cost Centres
BU05 – Warrant Release Distribution and allocation to items

Controller and
Accountant
General
BU05-1
Receive MDA warrant
release
Director of Budget
BU05-2
Issue warrant release
to Head of MDA
copying Controller
and Accountant
General
BU05-8
Head of MDA
BU05-3 BU05-4 BU05-7 Notify Cost Centre

Receive MDA warrant Notify Cost Centre Approve allocation to Heads to commence End
release Heads of allocations items implementing
planned activities
Cost Centre
BU05-6
Head
BU05-5
Determine allocation
Receive warrant
to items based on
allocation notification
approved cash plan
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Covered Entities
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1 The Minister responsible for Finance, acting through the Director of Budget, issues a warrant
release to the Covered Entity Head based on the approved cash plan, copying the Controller
and Accountant-General
2 The Head of the Covered Entity receives notification of the warrant release and determines
and applies the allocation to Cost Centres based on the approved cash plan. The Head of the
Covered Entity notifies the Cost Centre Heads of their respective allocations
3 The Cost Centre Heads on receipt of the notification of their respective allocations determine
and apply the allocation to items based on the approved cash plan for the Cost Centre.
4 The Head of the Covered Entity shall review and approve the allocation to items by the Cost
Centre Heads and then notify the Cost Centre Heads to commence implementation activities
per the approved plan
4.4.4 Virement
Where circumstances arise in which the operating requirements of a department make it necessary
to re-arrange the budget provisions for sub-heads , items or sub-items or sub- sub -items within
the ambit of a single head, savings under one classification may be utilised to provide for extra
expenditure under another without affecting the total funds to be disbursed from the head. Re-
arrangement or re-allocation of budget provision as described above is known as Virement.

Cost Centre Head  Request for reallocation of allocations to
items
 Record reallocation of allocations on
approval
Head of Covered Entity  Approve virement request if within
administrative approval limits
 Endorse virement request and forward to
Minister responsible for Finance for
approval if request is outside
administrative approval limits
 Notify Controller and Accountant-General
of approved virement
Minister responsible for Finance  Approve virement request
Controller and Accountant-General  Receive notification of approved virement
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Covered Entities
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NAME INPUT OUTPUT
Virement request 
Virement approval notification 
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4.4.4.3 Reallocation of allocations to items (Virement)

BU06 – Reallocation of Allocations to Items (Virement)
Accountant General
Controller and
BU06-10
End Receive notification
of approved virement
Cost Centre Head
BU06-1
Complete request for
BU06-4 BU06-12
reallocation of
Receive notification End Receive and record
allocations to items
of no approval virement
and submit to Head
of MDA
No
BU06-5 BU06-9 BU06-11 BU06-13

BU06-2
BU06-3 Within Endorse virement Send approved Review and approve
Receive and review Yes Yes
Head of MDA
Approved? approval request and notify virement request to reallocation of

request for virement
limits? CAG Cost Centre Head allocations to items
No
BU06-6
Endorse request and
submit to Minister
responsible for End
Finance for approval
Minister responsible
for Finance
BU06-8
BU06-7
Approve request and
Receive and review
forward to Head of
virement request
MDA
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Covered Entities
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1 A Cost Centre Head completes a request for virement and submits it to the Head of Covered
Entity for approval
2 The Head of Covered Entity receives and reviews the request for virement. If the Head of
Covered Entity denies the request the Cost Centre Head is notified accordingly. Otherwise, if
the request is within the administrative approval limits of the Covered Entity Head, the
Covered Entity Head approves the virement request and forwards it to the Cost Centre Head,
notifying the Controller and Accountant-General.
3 If the request is outside the administrative approval limits of the Covered Entity Head, the
Covered Entity Head endorses the virement request and submits it to the Minister responsible
for Finance for approval
4 The Minister responsible for Finance receives and reviews the request for virement. The
Minister approves the request and the forwards it to the Head of the Covered Entity
5 The Covered Entity Head forwards approved virement requests to the requesting Cost Centre
Head.
6 The Cost Centre Head on receipt of the approved virement request, records the reallocation
of allocation to items and notifies the Head of Covered Entity
7 The Head of Covered Entity reviews and approves the reallocation of allocations to item
4.5 Revote Warrant

The balance of appropriations which remain unspent at the end of the financial year lapse and are
no longer available for use by an Covered Entity unless the Head of Covered Entity obtains a
revote warrant from the Minister responsible for Finance. The revote warrant authorises the Head
of Covered Entity to apply balances of appropriations to undischarged commitments carried over
from the previous financial year.
4.5.1 Roles and Responsibilities

Head of Procurement Unit  Collate list of outstanding invoices at year
end and forward to Head of Budget Unit
Covered Entity Head of Budget Unit  Reconcile list of open POs with
commitments register
 Prepare statement of undischarged

commitments up to the limit of unspent
balances
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March 2018
 Forward statement of undischarged

commitments to Head of Covered Entity
for approval
 Receive revote warrant and update budget

balances
Head of Covered Entity  Receive and approve statement of

undischarged commitments
 Apply to Minister of Finance for revote

warrant
 Receive revote warrant and forward to

Head of Budget Unit to update relevant
budget balances
Minister of Finance  Receive and review application for revote

warrant
 Approve application and issue revote

warrant to Head of Covered Entity
4.5.2 Documents (Input / Output)

NAME INPUT OUTPUT
Schedule of purchase orders with 
outstanding invoices
Statement of undischarged 
commitments
Application for revote warrant 
Revote warrant 
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Covered Entities
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4.5.3 Revote Warrant

BU10 – Revote Warrant
Procurement
BU10-1
Head of
Collate list of BU10-2

Unit
purchase orders with Forward schedule to

outstanding invoices Head of Budget Unit
at the end the year
MDA Head of
Budget Unit
BU10-3 BU10-4 BU10-12

Receive and Prepare statement of BU10-5 Receive revote
reconcile list of open undischarged Forward to Head of End warrant and update
Pos with the commitments up to the MDA for approval relevant budget
commitments register limit of unspent balances balances
BU10-6
Review and approve
statement of
undischarged
Head of MDA
committments
BU10-7
BU10-11
Forward statement of
Receive revote warrant
undischarged
and notify Head of
commitments to Minister
Budget Unit to update
of Finance and apply for
budget balances
a revote warrant
Minister of Finance
BU10-8
BU10-9
Receive and review BU10-10
Confirm availability of
statement of undischarged Approve request and
unspent funds to finance
commitments and issue revote warrant to
undischarged
application for revote Head of MDA
committments
warrant
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Covered Entities
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4.5.4 Process Description

1 The Head of Procurement collates a list of all purchase orders with outstanding invoices at
the end of the financial year and forwards it to the Covered Entity Head of Budget Unit
2 The Covered Entity Head of Budget Unit receives the schedule from the Head of Procurement
and reconciles it with the commitments register
3 The Covered Entity Head of Budget Unit prepares a statement of undischarged commitments
up to the limit of unspent balances and forwards it the Head of Covered Entity for approval
4 The Head of Covered Entity receives, reviews and approves the statement of undischarged
commitments. The Head of Covered Entity forwards the approved statement of undischarged
commitments with an application for a revote warrant to the Minister responsible for Finance
5 The Minister responsible for Finance receives and reviews the statement of undischarged
commitments and the application for a revote warrant. The Minister responsible for Finance
confirms the availability of unspent funds to finance the undischarged commitments.
6 The Minister responsible for Finance approves the request and issues a revote warrant to the
Head of Covered Entity
7 The Head of Covered Entity receives the revote warrant and notifies Covered Entity Head of
Budget Unit to update the relevant budget balances
8 The Covered Entity Head of Budget Unit receives the revote warrant and updates the relevant
budget balances appropriately
4.6 Cash Planning
4.6.1 Introduction
After the budget has been approved, the cash planning and release process ensures that as much
as practically possible, commitment of public funds are effectively controlled and payments are
also streamlined to maximise use to public funds.
The cash planning and release processes collectively referred to as cash management coordinates
the pooling and efficient distribution of public moneys to facilitate the operations of Covered
Entities to enable them achieve their set targets.
4.6.2 Cash Planning

Cash planning is a two tiered process. There is the aspect that is focused on management of cash
for the entire GoG and is managed by the Minister responsible for Finance and the other, which
is focused on the effective management of cash at the Covered Entity level.
At the GoG level, the Cash Management Steering Committee comprises:
 The Minister responsible for Finance
 The Controller and Accountant- -General
 The Governor of the Bank of Ghana
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Covered Entities
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 The Commissioner of the Ghana Revenue Authority

This Committee meets on a monthly basis to review the cash forecasts and also sets a ceiling for
amount of cash to be made available to Covered Entities for their operations for the forecast
month.
The Committee is supported by a Technical Cash Management Committee which is drawn from
the Ministry of Finance, the Controller and Accountant-General’s Department, the Ghana
Revenue Authority and the Bank of Ghana. The Technical Cash Management Committee prepare
the cash forecast for the GoG based on the approved cash plans for Covered Entities, payments
and inflows due and falling due in the forecast period and cash balances for the period.
Cash planning at the Covered Entity level is underpinned by the monitoring of cash requirements
by the Head of Covered Entity. The determination of the Covered Entity’s cash requirements at
any point in time is based on a collation of the claims for payment that have been duly approved
and have fallen due for payment. As well as the cash availability report, which pools together
cash balances on all accounts from which, the Covered Entity can issue payments.
The Head of the Covered Entity then prioritises the payment of invoices based on the approved
work plan and the amount of cash available for payment at the time of payment processing.
4.6.2.1 Roles and Responsibilities – GoG

Cash Management Steering Committee  Receive and review cash forecast
 Set monthly cash release ceiling of public

moneys to Covered Entities
Cash Management Technical Committee  Prepare monthly cash forecasts
 Submit cash forecasts to Cash

Management Steering Committee on a
monthly basis
CAGD  Process cash release instructions to

Covered Entities

NAME INPUT OUTPUT
Approved cash plan for GoG 
Cash requirements report for GoG 
Cash pool report for GoG 
Draft cash forecast 
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NAME INPUT OUTPUT

Approved cash forecast 
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4.6.2.3 Cash Planning - GoG

BU07 – Cash Planning (GoG)
Technical Cash Management
BU07-2
BU07-1
Obtain consolidated
Obtain approved
cash requirements
consolidated work
reports for forecast
plan
Committee
month
BU07-5
BU07-3 BU07-4
Submit monthly cash
Obtain revenue Analyse and prepare
forecast to Cash
performance and cash forecast for the
Management
cash balances month
Steering Committee
Cash Management Steering
BU07-6
Receive and analyse
Committee
cash forecast
BU07-8
BU07-7
Notify CAG and
Determine ceiling for
MDAs of cash
cash releases for the
ceilings for forecast
forecast period
period
BU07-9
Process cash release
CAGD
instructions for the

End
forecast period,
subject to approved
ceiling
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1 The Technical Cash Management Committee obtains the approved consolidated cash plan,
the cash requirements for the forecast month as well as the consolidated cash position and the
revenue performance. The Committee analyses these reports and prepares a cash forecast for
the next month. The Technical Cash Management Committee submits the cash forecast to the
Cash Management Steering Committee.
2 The Cash Management Steering Committee receives and reviews the cash flow forecast from
the Technical Committee. The Steering Committee analyses the report and determines a
ceiling for cash releases during the forecast period.
3 The Cash Management Steering Committee notifies the Controller and Accountant-General
of the ceiling for cash releases for the forecast period
4 The Controller and Accountant-General receives notification of the ceiling for the forecast
period and notifies the Chief Cashier
5 The Chief Cashier receives notification of the ceiling for cash releases and processes cash
releases for the relevant period up to the approved ceiling
4.6.2.5 Roles and Responsibilities – Covered Entity

Head of Finance  Prepare monthly cash forecast
Covered Entity Head  Receive and review cash forecast
 Prioritise payment processing based on

cash plan and approved cash ceiling

NAME INPUT OUTPUT
Covered Entity approved cash plan 
Covered Entity cash requirements 
report
Covered Entity cash balances report 
Covered Entity cash forecast 
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4.6.2.7 Cash Planning (Covered Entity)
BU08 – Cash Planning (MDA)

Head of Finance
BU08-1
Prepare monthly cash BU08-2
forecast based on cash Submit cash forecast to Head
requirements and cash of MDA
balances
Head of MDA
BU08-4
BU08-3
Prioritise payments based on
Receive and analyse cash End
cash plan and cash ceiling for
forecast
the period
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1 The Covered Entity Head of Finance prepares monthly cash forecasts based on the approved
claims for payments. The Head of Finance submits the cash forecast to the Head of the
Covered Entity
2 The Head of the Covered Entity receives and reviews the report. The Head of Covered Entity
prioritises payment of claims based on the approved cash plan and the approved cash ceiling
for the period.
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5 Revenue Accounting
5.1 Introduction
This section covers the procedures involved in the recognition, measurement and accounting for
revenue.
It also outlines the collection procedures for the various revenue sources.
5.2 Sources of Revenue

The Government of Ghana’s sources of funds can be classified under two main groups as follows:
 Tax Revenue
 Non Tax Revenue
These two main groups of revenue are further sub categorised as follows
Tax Revenue:
 Direct Taxes
 Indirect Taxes
Non Tax Revenue:
 Grants
 Reliefs
 Other Revenue (including)
 Fines and Penalties
 Rent
 Fees
 Investment income
 Donations and bequests
 Proceeds from disposal of assets
All these sources of revenue and other receipts collectively constitute the Public Funds under
Article 175 of the Constitution, which consist of:
 Consolidated Fund
 Contingency Fund
 Any other Public Funds as may be established by or under the authority of an Act of
Parliament
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The financial regulations and policies for the management of revenue are outlined in the Public
Financial Management Act, 2016 Act 921, Financial Administration Regulations, 2004 (L.I.
1802), Ghana Revenue Authority Act, 2009 (Act 791) and the Retention of Funds Act, 2007 (Act
735).
The main provisions are summarised below:
i. Any Public Officer or Revenue Collector who collects or receives public and trust moneys
must issue official receipts and bank the gross amount received or collected into the
designated Public Fund Account within twenty four hours except in exceptional
circumstances to be identified by the Minister responsible for Finance
ii. Pay in slips or bank advices in respect of all lodgements of public and trust moneys into
the designated Public Funds Account shall be presented within forty eight hours to a Public
Officer acting under the authority of the Controller and Accountant-General to issue a
receipt in the format approved by the Controller and Accountant-General for all revenues
deposited in the Consolidated Fund account
iii. Departments and Agencies that have legislative approval to retain part or all of their
revenue collections or internally generated funds collected must first lodge the gross
amount of the revenue or internally generated funds collected, as the case may be, into the
Public Funds bank account designated by the Controller and Accountant-General before
any disbursements are made
iv. Heads of Covered Entities with the legislative authority to retain all or a part of their
revenue collections or internally generated funds must disclose to the Controller and
Accountant-General, on a monthly basis, all revenue collected or received, lodged and
retained for the previous month.
5.3.1 Revenue Accounting

Revenue shall be accounted for in accordance with the legislative framework summarised in the
policies and regulations section (5.3 above), however the provisions of IPSAS for revenue
management are summarised below:
IPSAS 23, Revenue from non-exchange transactions (Taxes and Transfers) and IPSAS 9,
Revenue from Exchange transactions prescribe the requirements for the reporting of revenue.
Non-exchange transactions occur when a Covered Entity receives resources and provides nominal
consideration in return or provides consideration, which is significantly less than the fair value of
the resources received.
For example, taxpayers pay taxes because the law requires that they do so. Even though the
Government provides a range of services that benefit the taxpayer, the Government does not do
this in direct consideration for the taxes received.
Exchange transactions on the other hand are characterised by an exchange of assets which are
approximately equal in value. Exchange transactions occur when an Covered Entity receives
assets or services from a third party and directly provides goods, services or use assets of
approximately the same value as the assets or services received to that third party.
Examples of exchange transactions include;
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Covered Entities
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o Sale of goods and services

o Royalties to allow use of the Covered Entity’s assets
o Lease of property, plant and equipment at market rates
The main principles of IPSAS 23, Revenue from Non-Exchange transactions are summarised
below:
Recognition
 Revenue comprises gross inflows of economic benefits or service potential received or
receivable by a Covered Entity, which represents an increase in its net assets, other than
contributions from Government. Amounts collected as agents of Government or other third
parties are not recognised as the revenue or increase in net asset for the agent because the
agent cannot control the use of, or otherwise benefit directly from the collected assets in
performing its functions.
 An inflow of resources from a non-exchange transaction recognized as an asset shall be
recognized as revenue, except to the extent that a liability is also recognized in respect of the
same inflow.
Measurement
 Revenue from non-exchange transactions shall be measured at the amount of increase in net
assets recognised by the Covered Entity
The key principles of IPSAS 9, Revenue from Exchange Transactions are summarised below:
Recognition
The key requirements for the recognition of revenue from the major classifications of exchange
transactions are as follows:
 Rendering of Services
o Revenue from the rendering of the services shall be recognised by reference to
the stage of completion as at the reporting date when the outcome of the
transaction involving the rendering of the service can be reliably estimated. The
outcome of a transaction is deemed to reliably estimable when:
 The amount of revenue can be measured reliably
 It is probable that the economic benefits or service potential associated
with the transaction will flow to the Covered Entity
 The stage of completion at the reporting date can be reliably measured
 The costs incurred and the cost to complete the transaction can be
reliably measured
o When the outcome of the transaction involving the rendering of services cannot
be reliably estimated, revenue shall be recognised only to the extent of recognised
expenses that are recoverable
 Sale of Goods
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Covered Entities
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o Revenue from the sale of goods is recognised when all the following conditions
have been satisfied
 The Covered Entity has transferred the significant risks and rewards of
ownership to the purchaser
 The Covered Entity does not retain continuing involvement in the
management of the goods, to the extent usually associated with
ownership or exercise effective control over the goods
 The costs incurred or to be incurred in respect of the transaction can be
reliably measured
 Interest, Royalties, Dividends and other similar distributions
o Revenue from the use by others of an Covered Entity’s assets resulting in
royalties, interest, dividends or similar distributions shall generally be recognised
when:
o Revenue shall be recognised for each of the classes of revenue as follows:
 Revenue from royalties shall be recognised as they are earned in
accordance with the substance of relevant agreement governing the use
of the Covered Entity’s asset by a third party
 Interest shall be recognised on a time proportion basis that takes into
account the effective yield on the Covered Entity’s asset
 Dividends and other similar distributions shall be recognised when the
shareholder or Covered Entity’s right to receive a payment is established
5.3.2 Responsibilities
The Controller and Accountant-General, as Government’s Chief Accounting Officer, has overall
responsibility for the safe custody of Public and Trust moneys payable into the Consolidated Fund
and other designated Funds. Any Public Officer who performs a custodial function with respect
to Public or Trust moneys is deemed to be acting under the delegated authority of the Controller
and Accountant-General.
Heads of Covered Entities, in this regard, also have custodial responsibility for all public and trust
moneys collected or received by their respective organisations from the time a Collector or Other
Public Officer collects or receives public or trust moneys until such a time as the relevant public
and trust moneys are lodged in the designated Public Funds account.
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5.4 Tax Revenue Accounting

The Ghana Revenue Authority is responsible for the administration and collection of tax revenues
on behalf of the Government of Ghana.
5.4.1 Tax Revenue assessment

Tax Revenue Officer  Determine tax due from Tax Payers for the
period
 Prepare and submit summary schedule to
Head of Tax Office for review
 Receive approved summary schedule
from Head of Tax Office
 Prepare journal voucher to update ledger
and submit to Head of Tax Office for
review
 Receive and review summary schedule
GRA Head of Tax Office
from the Revenue Officer
 Endorse and submit summary schedules to
Commissioner for review
 Review and post journal voucher to update
ledger
 Receive and review summary schedules
GRA, Commissioner-General
from Head Tax Office
 Approve summary schedules and forward
to Head of Tax Office to update ledgers

NAME INPUT OUTPUT
Tax Assessment 
Summary schedule of tax assessments 
Journal Voucher 
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5.4.1.3 Tax Revenue Assessment
RV01 – Tax Revenue asssement

Revenue Accounts
RV01-2
RV01-1 RV01-11 RV01-12
Officer
Prepare and submit RV01-16

Determine tax Receive approved Forward journal to
summary schedules Make necessary
assessments summary schedule Head of Tax Office for
to Head of Tax Office amendments as instructed
and prepare journal review
RV01-3 RV01-6
RV01-13
Receive and review Instruct Revenue Officer to
Receive and review
summary schedules make the necessary
journal
from Revenue Officer amendments
Head of Tax Office
No
RV01-4 RV01-10
Review tax RV01-5 Forward approved
assessments for Accurate & summary schedule to RV01-15
RV01-14
accuracy and complete? Revenue Officer to Instruct Revenue Officer to
Accurate & No
completeness prepare journal make the necessary
complete?
amendments
Yes
Yes
RV01-7
Submit summary RV01-17
schedule to Post journal to update End
Commissioner ledgers
General
Commissioner-
General
RV01-8
RV01-9
Receive and review
Approve and forward
summary schedule
summary schedule to
from Head of Tax
Head of Tax Office
Office
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Covered Entities
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1 The Tax Revenue Officer determines the tax assessments due for a period and prepares a
summary schedule of the taxes due for the period. The Revenue Officer submits the summary
schedule to the Head of Tax Office for review
2 The Head of Tax Office reviews the summary schedule and the tax assessments for accuracy
and completeness. If the summary schedule and the associated assessments are accurate and
complete, the Head of Tax Office endorses the summary schedule and submits to the
Commissioner for approval. Otherwise, the Head of Tax Office directs the Revenue Officer
to make the necessary amendments to the assessments and/or the summary schedules and
resubmit them for review.
3 The Commissioner receives and reviews the endorsed summary schedule from the Head of
Tax Office. The Commissioner approves and returns the summary schedule to the Head of
Tax Office
4 The Head of Tax Office receives the approved summary schedule and forwards it to the
Revenue Officer to prepare a journal for the update of the ledgers
5 The Revenue Officer receives the approved summary schedule and prepares a journal for the
update of the ledgers. The Revenue Officer submits the journal to the Head of Tax Office for
review
6 The Head of Tax Office receives and reviews the journal. If the journal is accurate and
complete, the Head of Tax Office posts it to update the ledgers. Otherwise, the Head of Tax
Office returns the journal to the Revenue Officer with instructions to make the necessary
changes and resubmit the journal for review.
5.4.1.5 Accounting Entries

Tax Revenue Journal posting Debit Credit
Accounts receivable 328xxx
Daily Rated 111xxx
5.4.2 Tax Revenue Collection

Tax Payer  Receive tax assessment

 Make payment for taxes due to a Revenue
Officer
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Covered Entities
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 Receive original copy of receipt for
payment made
Revenue Officer  Receive payment for taxes due from Tax

Payer
 Issue receipt in triplicate
 Generate daily cash collection schedule
 Reconcile cash on hand with daily cash
collection balance and submit cash with
records to Supervising Revenue Officer
Revenue Officer (Finance)  Receive and vet daily cash collection

schedule and GCR
 Endorse vetted daily cash collection
schedule and GCR
 Receive cash from revenue collections
Supervising Revenue Officer (Finance)
from Revenue Officer
 Endorse cash collection schedule and
receipt books
 Update ledgers with cash receipts
 Lodge cash receipts for the day
 Instruct transfer of revenue collections to
Head of Finance
treasury main account at BOG

NAME INPUT OUTPUT
Tax Assessment 
General Counterfoil Receipt 
Cash Book 
Journal Voucher 
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5.4.2.3 Tax Revenue Collection

RV02 – Tax Revenue Collection
Tax Payer
RV02-1
Receive tax RV02-8 RV02-10
assessments and Make good cash or End
Receive receipt
make payments for cheque payments
tax due
RV02-7
Request
No
replacement
No
Revenue Officer (Finance)
cheque
RV02-5 RV02-9
RV02-6 Payment Prepare receipt in
Yes Yes
Valid cheque? amount triplicate and issue
accurate? original to Taxpayer
No
RV02-4 RV02-11
RV02-2 RV02-3
Count cash to Perform end of day
Receive payment from Cash Yes
agree procedures and
Tax Payer payment?
payment submit cash collected
to Supervisor
Supervising Revenue
Officer (Finance)
RV02-12
RV02-14
RV02-13 Receives cash
Perform end of day
Secure cash in collected and
and predefined
overnight safe completes predefined
banking procedures
receipting procedures
Head of Finance
RV02-15
Instruct transfer of
A
revenue collections to
Treasury Main account
at BOG
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Covered Entities
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RV02 – Tax Revenue Collection
RV02-18
CAGD
RV02-17
Issue Treasury
Receive Pay In slips End
counterfoil receipt to
and bank advice
Revenue Officer
(Finance)
Revenue
RV02-16
Officer
A Submit pay in slips

and bank advice to
CAGD
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Covered Entities
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1 The taxpayer submits payment for the tax assessment due to a Revenue Officer of the GRA.
2 The Revenue Officer receives the payment and if it is a cash payment, counts the cash and
agrees it to the amount due. If the payment is by cheque, the Revenue Officer shall check if
the Tax Payer has completed the cheque details properly and the payment amount agrees with
the amount due. If the cheque is invalid or the cash amount does not agree to the amount due,
the Revenue Officer requests the Tax Payer to replace the cheque or pay cash to match the
amount due.
3 If the amount tendered matches the amount due, the Revenue Officer prepares a receipt in
triplicate and issues the original to the Tax Payer
4 At the close of each day, the Revenue Officer batches together all duplicate receipts and
generates a daily cash collection report. The Revenue Officer then reconciles cash on hand
received to cash summary report. If the amounts do not reconcile to the cash collection report,
the Revenue Officer reconfirms the cash summary report to the duplicate receipts for an
explanation of the difference. If the balances reconcile, the Revenue Officer files the day’s
report and closes the cash till for the day. If the balances do not reconcile, administrative
procedures to the recovery of losses from employees will apply.
5 The Revenue Officer submits the reconciled cash collection report with the duplicate receipts
and the cash at hand to the Supervising Revenue Officer for review. The Supervising Revenue
Officer counts the cash at hand and reconciles it to the cash collection report. If the amounts
do not reconcile, the Supervising Revenue Officer investigates the cause of the discrepancy
and, where necessary, initiates administrative procedures for recovery of losses from
employees. If the amount reconcile, the Supervising Revenue Officer endorses the cash
collection report, receives the cash collections into the safe
6 At the start of the next day, the Supervising Revenue Officer retrieves the revenue receipts of
the previous day from the safe and directs an Accounts Officer to re-verify the total sum in
his or her presence. If the total sum does not match the amount received the previous day, the
Supervising Revenue Officer shall investigate and initiate necessary administrative
procedures for the recovery of losses from employees as appropriate.
7 The Supervising Revenue Officer shall direct the Revenue Officer to lodge the revenue
receipts in the designated revenue collection bank account. The Revenue Officer shall lodge
the revenue receipts in the designated collection bank account as directed and return the
stamped pay in slip to the Supervising Revenue Officer
8 The Supervising Revenue Officer then directs the Revenue Officer to prepare a journal to
update the ledgers with the revenue collections for the day.
9 The Revenue Officer prepares the journal voucher and submits it to the Supervising Revenue
Officer for review. The Supervising Revenue Officer reviews the journal and if it is accurate
and complete, posts it to update the ledgers with the collections made that day. If the journal
is inaccurate, the Supervising Revenue Officer directs the Revenue Officer to make the
necessary corrections and resubmit the journal for review.
10 The Supervising Revenue Officer prepares a summary of lodgements made for the day and
submits it to the Head of Finance
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11 The Head Finance reviews the summary of lodgements and reconciles to the cash balances
per the bank statements.
12 The Head of Finance instructs the bank holding the collections lodged to transfer the relevant
revenue collections to the Treasury main account at the Bank of Ghana within 48 hours of
these collections being lodged
13 The Revenue Officer batches and submits pay in slips for collections lodged to the Controller
14 The Controller and Accountant-General issues a treasury counterfoil receipt to the Revenue
Officer

On receipt of revenue Debit Credit
Cash in Transit 3215xxx
Accounts receivable 328xxxx
On lodgement of revenue Debit Credit
Tax Revenue Collection Bank 3215xxx

account
Cash in Transit 3215xxx
On transfer to Treasury main Debit Credit

account
Treasury main account 3218xxx
Tax Revenue Collection Bank 3218xxx

account
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Covered Entities
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5.5 Non Tax Revenue Accounting
5.5.1 Introduction
Non-tax revenue encompasses revenue sources other than tax revenue. It includes, grants, sale of
goods and services, fees and fines, rent and royalties, dividends, interest, investment income,
donations and disposal of property, plant and equipment.
5.5.2 Revenue from Fees and Fines

Payer  Make payment for fee or fine

 Receive original copy of GCR
Revenue Officer  Receive payment and issue receipt in

triplicate
 Generate daily cash summary report
 Reconcile cash on hand to cash summary
report and submit cash with records to
Supervisor
Supervising Revenue Officer  Receive cash and records

 Reconcile cash summary report to GCR
 Endorse cash summary report
 Lodge cash receipts for the day
 Prepare journal to update ledgers
 Submit Pay In slips to CAG
 Receive and file TCR
Head of Finance  Review journal and reconcile to cash

summary reports and pay in slips
 Reconcile lodgements to bank statements
 Post journal to update ledgers
 Prepare instruction to transfer lodgements
to Consolidated Fund Account
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Head of Covered Entity  Approve instruction to transfer lodgement

to Consolidated Fund Account
Controller and Accountant-General  Receive pay in slips and bank advice

 Issue Treasury Counterfoil Receipt

NAME INPUT OUTPUT
Fee or fine notice 
Cash Summary report 
Journal Voucher 
Pay in slips 
Treasury Counterfoil Receipt 
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5.5.2.3 Revenue from Fees and Fines

RV03 - Revenue from Fees and Fines
RV03-8
RV03-1
Make good
Payer
Tender RV03-10
cash or Receive End
payment for
cheque receipt
fees or fine
payment
RV03-7
Request
No
replacement
cheque or cash
No
Revenue Officer
RV03-9
RV03-6
RV03-5 Prepare GCR in
Yes Amount Yes
Valid cheque? triplicate and issue
accurate?
original to Payer
No
RV03-11
RV03-12
RV03-2 RV03-3 Generate cash
RV03-4 Submit cash and
Receive Cash Yes summary and
Count cash records to
payment payment? perform end of day
Supervisor
procedures
Supervising
Revenue
RV03-15
Officer
RV03-14 RV03-13
Perform end of day
Endorse cash Reconcile cash
procedures and
summary summary to GCR
bank revenue
RV03-17
Finance
Head of
RV03-16
Prepare instruction
Review and post
to transfer
journal to update
lodgment to
ledgers
Consolidated Acct
Head of MDA
RV03-18
Review and A
approve transfer
instruction
94
Covered Entities
March 2018
RV03 - Revenue from Fees and Fines

Finance
Head of
RV03-19
A Instruct Revenue
Officer to submit pay
in slips to CAGD
Revenue
Officer
RV03-20 RV03-23
Submit Pay In slips Receive and file End
to CAG TCR
Controller and
Accountant
General
RV03-22
RV03-21
Issue TCRs to
Receive Pay In slips
Revenue Officer
95
Covered Entities
March 2018

1 The Payer submits payment for the amount for the fee or fine to a Revenue Officer
2 The Revenue Officer receives the payment and if it is a cash payment, counts the cash and
agrees it to the amount due. If the payment is by cheque, the Revenue Officer shall check if
the Payer has completed the cheque details properly and the payment amount agrees with the
amount due. If the cheque is invalid or the cash amount does not agree to the amount due, the
Revenue Officer requests the Payer to replace the cheque or pay cash to match the amount
due.
3 If the amount tendered matches the amount due, the Revenue Officer prepares a receipt in
triplicate and issues the original to the Payer
4 At the close of each day, the Revenue Officer batches together all duplicate receipts and
generates a daily cash collection report. The Revenue Officer then reconciles cash on hand
received to cash summary report. If the amounts do not reconcile to the cash summary report,
the Revenue Officer reconfirms the cash summary report to the duplicate receipts for an
explanation of the difference. If the balances reconcile, the Revenue Officer files the day’s
report and closes the cash till for the day. If the balances do not reconcile, administrative
procedures to the recovery of losses from employees will apply.
5 The Revenue Officer then submits the cash on hand with the records to the Supervising
Revenue Officer. The Supervising Revenue Officer receives and reconciles the cash summary
report to the GCR and to the cash on hand. Where there are discrepancies, the Supervising
Revenue Officer instructs the Revenue Officer to make the necessary corrections to the
records and resubmit them for review. If the records are accurate and complete, the
Supervising Revenue Officer endorses the cash summary report and lodges the cash in gross
in the designated holding account at Bank of Ghana. Where there is no BoG branch the
lodgement shall be made into an approved transit account with a Commercial Bank and
subsequently transferred into a BoG Holding Account within 48 hours. The Supervising
Revenue Officer initiates the relevant administrative procedures for the recovery of losses if
the cash on hand does not reconcile with the records
6 The Supervising Revenue Officer submits the endorsed cash reports and Pay- In -Slips to the
Head of Finance. The Head of Finance reconciles the cash summary reports and the pay in
slips to the bank statement and instructs the Revenue Officer to prepare a journal to update
the ledgers. Where the lodgements per the bank statement do not agree with the cash summary
reports, the Head of Finance investigates and initiates the relevant administrative procedures
to recover losses.
7 The Head of Finance reviews and posts the journal to update the ledgers. Where the journal
is not accurate, the Head of Finance directs the Revenue Officer to make the necessary
corrections and resubmit the journal for review
8 All lodgement made into Holding Account is then split into the Consolidated Fund Account
and Covered Entity’s Operational Account in a ratio as defined in the Retention Act.
9 The Head of Finance directs the Revenue Officer to submit the pay in slips and bank advice
to the Controller and Accountant-General
96
Covered Entities
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10 The Controller and Accountant-General receives the pay in slips and bank advice and issues
a treasury counterfoil receipt to the Revenue Officer
11 The Revenue Officer receives and files the treasury counterfoil receipt.

On lodgement of revenue collection Debit Credit
Holding Account 3216xxx
IGF 14xxxxx
On transfer of retained revenue Debit Credit

and Consolidated Fund
Covered Entity Retention account 3212xxx
Treasury Main Account 3218xxx
Holding Account 3216xxx
In the books of CAGD Debit Credit
Treasury Main Account XXXX
Non tax Revenue XXXX
97
Covered Entities
March 2018
5.6 Sale of Goods and Services

This section describes the procedures to be followed for the recognition of revenue from the sale
of goods and services to third parties by a Covered Entity.
5.6.1 Policies and Procedures

In addition to the general policies for revenue accounting, the following specific policies apply
for sale of goods and services by a Covered Entity.
i. Sales shall be initiated by pre numbered sales orders (commitments). Sales orders shall
record the quantities, price and agreed terms such as (e.g. discount, delivery terms etc.)
ii. Sales Orders shall be subject to the same controls as other value books
iii. Approved sales orders must be matched with a Stores Issue Voucher for all sale of goods
before a sales invoice is prepared
iv. Pre numbered sales invoices must be issued to the Customer at the point of sale for goods
or when the service(s) is performed and properly brought to account.
There are two main classes of sales of goods and services that Covered Entities engage in, these
are:
1 Over the counter Sales (Cash sales) and
2 Credit Sales
5.6.2 Over the Counter Sales

 Submit request for goods to Head of
Customer
Department
 Receive approved Stores Issue Voucher
and tender payment to Cashier
 Receive GCR for payment made
 Submit approved Stores Issue Voucher
and GCR to the Storekeeper for items to
be issued
 Review and approve customer request
Head of Department
 Direct Accounts Officer to prepare Stores
Issue Voucher for approval
98
Covered Entities
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 Approve and issue Stores Issue Voucher
to Customer
 Receive payment from Customer and
Revenue Officer
issue GCR
 Retain a copy of SIV for accounting
purposes
Storekeeper
and GCR from Customer
 Issue goods specified on Stores Issue
Voucher to Customer
 Prepare and issue waybill to customer

NAME INPUT OUTPUT
Request for Goods or Service 
Stores Issue Voucher 
Waybill 
99
Covered Entities
March 2018
5.6.2.3 Over the counter sale of goods and services

RV04 – Over the Counter Sales (Cash Sales)
RV04-13
Cashier
RV04-14
Perform
Retain copy of SIV
predefined cash
and issue GCR to
receipting
Customer
procedures
RV04-1
Request sale RV04-5 End
RV04-12
of goods or Receive RV04-15
Receive SIV
Customer
services End Submit GCR

notification of and tender
no approval and SIV to
payment to
Storekeeper
Cashier RV04-18
RV04-2 Receive goods
Submit request from
to Head of Storekeeper
No
Department
Head of Department
RV04-3 RV04-11
Receive and RV04-4 RV04-9 RV04-10 Endorse SIV
Yes
review request Approved? Review SIV Approved? and issue to
for sale Customer
Yes
RV04-6
Forward request
to Accounts Clerk
to prepare SIV
No
Accounts
Officer
RV04-8
RV04-7
Submit / amend
Prepare SIV
SIV
Storekeeper
RV04-17
RV04-16
Issue goods
Receive GCR
to Customer
and SIV
based on SIV
100
Covered Entities
March 2018

1 The third party Customer requiring the goods or services from the Covered Entity submits a
request to the Covered Entity Head of Department for the supply of the goods and / or services
2 The Head of Department receives and reviews the request. If the requested goods are in stock
and available for sale, the Head of Department approves the requests and forwards it to an
Accounts Officer to prepare an SIV. If the Head of Department declines the request, the Head
of Department notifies the Customer accordingly.
3 The Accounts Officer receives the approved request and prepares an SIV based on the
approved request. The Accounts Officer submits the approved request to the Head of
Department for review.
4 The Head of Department receives and reviews the SIV for accuracy and completeness. If the
SIV is accurate and complete, the Head of Department endorses and issues it to the Customer
to make payment. Otherwise, the Head of Department returns the SIV to the Accounts Officer
to make the necessary amendments and resubmit it for review.
5 The Customer receives the approved SIV and makes payment to the Revenue Officer based
on the approved SIV
6 The Revenue Officer receives the payment from the Customer. The Revenue Officer
completes the GCR in triplicate and issues the original to the Customer
7 The Customer receives the GCR, attaches it to the SIV and submits it to the Storekeeper
8 The Storekeeper receives and inspects the GCR and the SIV from the Customer and issues
the goods specified on the approved Stores Issue Voucher and paid for on the General
Counterfoil Receipt to the Customer, following administrative guidelines
9 The storekeeper prepares waybill in triplicate and issue as:
a. Customer
b. Revenue officer
c. Book copy
10 The Customer receives the goods from the Storekeeper
11 The Revenue Officer lodges the receipts into the designated bank account within 24 hours

On receipt of revenue from sales Debit Credit
Cash in Transit Account 3216xxx
Non tax revenue 14xxxxx
101
Covered Entities
March 2018
On issue of goods Debit Credit
Use of goods and services 22xxxxx
Goods for resale 3122xxx
On banking of revenue Debit Credit
Revenue bank account 3212xxx
Cash in Transit Account 3216xxx
5.6.3 Credit Sales

Customer  Submit request for goods to Head of
Department
and submit to Storekeeper
 Receive requested goods and waybill from
Storekeeper
 Receive sales invoice from Accounts
Officer
Head of Department  Receive and approve request for goods
from Customer
 Direct Accounts Officer to prepare Stores
Issue Voucher for approval
 Inform Head of Finance to create customer
account for new Customer
 Review and approve Stores Issue Voucher
Storekeeper  Receive approved Stores Issue Voucher
from Customer
 Prepare waybill and issue goods to
Customer
 Forward copy of waybill and SIV to
Accounts Officer
102
Covered Entities
March 2018

Head of Finance  Approve customer account set up for new
customers
 Approve sales invoice and ledger update
Accounts Officer  Complete new customer account set up
 Prepare sales invoice
 Update ledger with approved sales invoice
details

NAME INPUT OUTPUT
Request for Goods or Service 
New customer account request 
Waybill 
Sales Invoice 
103
Covered Entities
March 2018
5.6.3.3 Revenue from sale of goods and services – Credit sales

RV05 – Credit Sales
RV05-1
Request sale
of goods or RV05-12
services B
Customer
Submit SIV to
Storekeeper
RV05-2 RV04-5
Submit request Receive
to Head of notification of
Department no approval
No
Head of Department
RV05-3 RV05-6
RV05-5
Receive and RV05-4 Forward request
Yes New No
review request Approved? to Accounts Clerk
customer?
for sale to prepare SIV
Yes
RV05-11
RV05-13 RV05-9 RV05-10 Endorse SIV
Yes
Request new Review SIV Approved? and issue to
customer setup Customer
Schedule
Officer
RV05-8
RV05-7
Submit / amend No
Prepare SIV
SIV
RV05-15
Finance
Head of
RV05-14 RV05-18 RV05-20

Instruct Account
Receive Review RV05-19 Notify HoD of
Officer to update Yes
Customer Customer set Approved? Customer
ledger with
details up account details
customer details
A
Accounts
RV05-16 RV05-17
Officer
Set up customer Submit / amend No

account on the customer details for
ledger review
104
Covered Entities
March 2018
RV05 – Credit Sales

Customer
RV05-25
RV05-29
Receive goods
Receive sales End
with copy of
invoice
waybill
Storekeeper
RV05-23 RV05-24 RV05-26

B Receive Issue goods Submit copies
approved and prepare of SIV and
SIV waybill waybill to AO
Head of Department
RV05-22
Approve and
issue SIV to
Customer
RV05-21
Receive Customer
A
account details
from Head of
Finance
Accounts
RV05-27
Officer
RV05-28 RV05-30
Prepare
Issue invoice to Update customer End
invoice for
Customer account on ledger
goods issued
105
Covered Entities
March 2018

1 The third party Customer requiring the goods or services from the Covered Entity submits a
request to the Covered Entity Head of Department for the supply of the goods and / or services
2 The Head of Department receives and reviews the request. If the requested goods are in stock
and available for sale, the Head of Department approves the requests and forwards it to an
Accounts Officer to prepare an SIV. If the Head of Department declines the request, the Head
of Department notifies the Customer accordingly.
3 If the Customer is new to the Covered Entity, the Head of Department submits a request for
the creation of new customer account to the Head of Finance on the books of the Covered
Entity. The Head of Department shall only approve the Customer’s request after receiving
notification from the Head of Finance of the creation of the new Customer’s account
4 The Accounts Officer receives the approved request and prepares an SIV which is then
submitted to the Head of Department for review
5 The Head of Department receives and reviews the SIV for accuracy and completeness. If the
SIV is accurate and complete, the Head of Department endorses and issues it to the Customer
to make payment. Otherwise, the Head of Department returns the SIV to the Accounts Officer
to make the necessary amendments and resubmit it for review.
6 The Customer receives the approved SIV and submits it to the Storekeeper
7 The Head of Finance on receipt of the request to create a new customer account, direct the
Accounts Officer to create a new customer account with the details provided by the Head of
Department
8 The Accounts Officer creates the new customer account and submits it the Head of Finance
for review
9 The Head of Finance reviews and approves the new customer account set up if it is accurate
and complete, otherwise the Head of Finance directs the Accounts Officer to make the
necessary changes and resubmit the account setup for approval
10 The Head of Finance notifies the Head of Department of the new customer account details
11 The Head of Department proceeds with the approval of the Customer’s request on receipt of
the Customer’s account details as described above
12 The Storekeeper receives the approved Stores Issue Voucher from the Customer and issues
the goods specified on it to the Customer. The Storekeeper prepares a waybill in triplicate for
the Customer to initial as confirmation of receipt of the goods issued. The Storekeeper issues
the original of the waybill to the Customer and the duplicate with a copy of the Stores Issue
Voucher to the Accounts Officer for the preparation of a sales invoice
13 The Accounts Officer receives the waybill and Stores Issue Voucher and prepares a sales
invoice in duplicate based on them. The Accounts Officer issues the original copy of the sales
invoice to the Customer after review and approval by the Head of Finance
14 The Customer receives the sales invoice from the Accounts Officer
15 The Accounts Officer updates the Customer’s account with the details of the sales invoice
106
Covered Entities
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On issue of sales invoice Debit Credit
Account Receivable 328xxxx
Non tax revenue 14xxxxx
On issue of goods Debit Credit
Use of goods and services 22xxxxx
Goods for resale 3122xxx
5.7 Grants and Donations
5.7.1 Introduction
The Government of Ghana receives grants and donations from development partners on a periodic
basis. These grants can be specific or general in nature. The specific grants are grants to be applied
exclusively to specific activities agreed on by the Government of Ghana and the development
partner, whereas general grants are applied according to the priorities of the Government of
Ghana.
5.7.2 Accounting for Revenue from Grants and Donations

Controller and Accountant-General  Update GoG revenue records and notify of
relevant Covered Entity
Head of Covered Entity  Receive notification of receipt of funds
 Notify Project Accountant to update
project records
Project Accountant  Update project accounts on receipt of
notification
Bank of Ghana  Notify Controller and Accountant-General
of receipt of funds
Donor  Deposit grants into designated account
based on agreement
107
Covered Entities
March 2018

NAME INPUT OUTPUT
Bank Transfer Advice 
Journal Voucher 
108
Covered Entities
March 2018
5.7.2.3 Revenue from grants and donations

RV06 – Revenue from Grants and Donations
Donor
RV06-1
Deposit grant funds
in designated
account
Bank of Ghana
RV06-2
Receive funds and
notify CAG
Accountant General
Controller and
RV06-4
RV06-3 Update revenue
Receive notification accounts and notify
of funds transfer Head of MDA of
funds receipt
Head of MDA
RV06-6
RV06-5 Notify Project
Receive notification Accountant to
of funds reciept update project
records
Accountant
Project
RV06-7
Update project End
records
109
Covered Entities
March 2018

1 The Donor transfers grant funds into the designated bank account
2 The Bank of Ghana on receipt of the grant funds notifies the Controller and Accountant-
General
3 The Controller and Accountant-General updates the revenue accounts on receipt of the
notification of funds receipt and the notifies the relevant Head of Covered Entity
4 The Head of Covered Entity receives notification of the funds receipt from the Controller and
Accountant-General and notifies the Project Accountant to update the project records
5 The Project Accountant updates the project records on receipt of the notification from the

On receipt of grant funds Debit Credit
Covered Entity Bank Account 321xxxx
Grants and Reliefs 13xxxxx
110
Covered Entities
March 2018
6 Procurement of Works, Goods and Services
6.1 Objective
Procurement constitutes a significant proportion of the Covered Entity’s total expenditure.
Consequently, there is a large potential for achieving economies through efficient procurement
procedures.
The Public Procurement Act, 2003 (Act 663)as amended in 2012 and 2016, provides for the
establishment of the Public Procurement Authority, makes administrative and institutional
arrangements for procurement, and stipulates tendering procedures and provides for related
matters. The amended version issued in 2012 was to provide for the establishment of a Public
Procurement Authority, separate from its governing Board of Directors.
The object of the Act is to harmonize the processes of public procurement in the public service to
secure a judicious, economic and efficient use of state resources in public procurement and ensure
that public procurement is carried out in a fair, transparent and non-discriminatory manner.
6.2 Regulations and Policies

The following provisions have been set out in the Public Procurement Act, 2003 (Act 663) to
direct all procurements by Government entities:
i. Parts I and II of the PPA, 2003 describe the establishment of the structures and
procurement bodies to undertake and oversee public procurement.
ii. Part III of the Act describes, the procurement procedures and qualifications needed by
suppliers to bid for Government tenders
iii. Parts IV describes the methods to be applied in public procurement
iv. Part V outlines the following procurement processes
a. Invitation of tenders and prequalification applications
b. Receipt of tenders
c. Evaluation of tenders
d. Award of contract
v. Part VI covers the procedures for the procurement of consultant services
vi. Part VII outlines the guidelines for a supplier, contractor or consultant to seek the review
of a procurement
vii. Part VIII covers disposal procedures
viii. Part IX covers the code of conduct, statutory audit and investigations, procurement
related offences and corrupt practices as well as regulations and interpretations
ix. There are four schedules to the Public Procurement Act, 2003, which outline the
framework for the public procurement
111
Covered Entities
March 2018
a. Schedule 1 defines the membership and functions of the Ministry Tender

Committee
b. Schedule 2 outlines the functions of the |(Ministry Tender Review Board) in the
national capital only
c. Schedule 3 defines the thresholds for various procurement methods and
d. Schedule 4 outlines the standard documents for public procurement
With specific reference to government stores, Section 30(1) of the FAA, 2003, also stipulates that
the Minister of Finance, in consultation with the Public Procurement Board, established under the
Public Procurement Act, 2003 (Act 663) may make Regulations governing the acquisition,
receipt, custody, control, issue, and disposal of the stores.
Section 30(2) of the FAA, 2003 also directs that all Covered Entity procure their stores from VAT
registered suppliers only, unless the Minister of Finance or another law grants an exemption.
In relation to the foregoing, the PPA, 2003 (Section 97) also states that the Minister of Finance,
in consultation with the Public Procurement Board, may issue regulations by legislative
instrument on the following:
 Preparation and submission of tenders
 Provision for the manner of publication of the notice of procurement contract awards
 On margin of preference in evaluation of tenders
 On the preparation and submission of applications to prequalify for a tender
 Procurement proceedings on the basis of nationality
 Procurement process where one entity or specially appointed agent is to procure items on
behalf of another entity
 The disposal of unserviceable stores and obsolete equipment
 The amendment of the schedules of the Act
 On any other matter concerned with public procurement
The Public Procurement Authority has issued a Public Procurement Manual, which provides
detailed guidance for the procurement of goods, services and works as well as the disposal of
assets.
Adherence to the Public Procurement Manual will ensure uniform procedures are applied for the
public procurement of goods, works and services by all Covered Entities, as well as ensuring
consistent application of the Public Procurement Act, 2003.
6.3 Responsibilities
Each Covered Entity as a procuring entity shall have a Procurement Unit headed by a competent
person who shall be responsible for all procurement activities of the Covered Entity.
The Head of the Procurement Unit shall be responsible for ensuring application of the provisions
of the PPA, 2003 and PFMA, 2016 (especially Part IV) in all procurement activities.
112
Covered Entities
March 2018
The Procurement Unit shall be responsible for the planning, control and implementation of all
procurement activities of the Covered Entity.
It shall prepare the Procurement plan for the Covered Entity and compare actual performance
against the plan to assist the management of the Covered Entity in making informed and timely
decisions.
6.4 Procurement Methods for Works, Goods and Services

The Public Procurement Manual outlines the procurement methods that can be used for the
procurement of works, goods and services as follows:
6.4.1 Procurement Methods for Works and Goods

i. International Competitive Tendering
ii. National Competitive Tendering
iii. Two Stage Competitive Tendering
iv. Restricted Tendering
v. Single Source (Direct Procurement)
vi. Request for quotations
6.4.2 Procurement Methods for Consultancy Services
i. Quality Based Selection
ii. Quality and Cost Based Selection
iii. Consultant Qualification
iv. Least Cost Selection
v. Fixed Budget Selection
vi. Single Source Selection
6.5 Procurement Planning Cycle

Covered Entities are required under section 21 of the Public Procurement Act, 2003 (Act 663) to
prepare a procurement plan to support their respective approved programmes for each fiscal year
and also update the plan on a quarterly basis for approval by the Tender Committee.
The procurement planning process is integrated with the budget preparation process and is guided
by circulars issued by the Public Procurement Board in consultation with the Ministry of Finance.
The PPA manual provides detailed guidance on the procurement planning and implementation
process. The PPA manual stipulates that preparation of the procurement plan must begin at least
four months before the start of the Financial Year to allow sufficient time for a realistic and
accurately costed plan to be compiled. Section 21 of the PPA, 2003, requires that the annual
procurement plan for the next financial year is submitted to the Tender Committee not later than
one month to the end of the current financial year.
113
Covered Entities
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The PPA manual enjoins the Head of the Procurement Entity to instruct the Procurement Unit to
prepare a procurement plan in accordance with the instructions issued by the Public Procurement
Board and the Ministry of Finance and ensure that the draft annual procurement plan is reviewed
and approved by the Tender Committee not less than one month before the start of the new
financial year. The Head of the Procurement Entity must also ensure that the approved annual
procurement plan is included in the annual budget submission to the Ministry of Finance.
If the budget funds per the approved budget is lower than planned, the Head of the Procurement
Entity must instruct the Procurement Unit to review the procurement plan according to the
Entity’s service priorities, obtain approval of the final annual procurement plan from the Tender
Committee and forward a copy of the approved procurement plan to the Public Procurement
Board.
Additionally, the Head of the Procurement must ensure that the procurement plan is updated on a
quarterly basis for approval by the Tender Committee and submit a copy of the updated and
approved procurement plan to the Public Procurement Board.
The approved procurement plan is the guideline for all procurement activities to undertaken in a
financial year following the procurement methods listed above for goods, services and works.
A summary of the roles and responsibilities of the participants in the procurement planning
process per the PPA manual is presented below. Refer to the PPA manual for details of the
process.
Head of Covered Entity  Receive circulars from Public

Procurement Board and Ministry of
Finance
 Instruct Procurement Unit to develop
annual procurement plan
 Review and approve procurement plan
 Include procurement plan in Budget
submissions to Ministry of Finance
 Instruct Procurement Unit to adjust
procurement plan if approved budget
estimates are less than planned
 Submit procurement plan to Tender
Committee for approval
 Submit copy of approved procurement
plan to Public Procurement Board
Tender Committee  Receive and review annual procurement

plan
114
Covered Entities
March 2018

 Approve annual procurement plan
 Receive and review updated annual
procurement plan
 Approve updated annual procurement
plan
Procurement Unit  Receive instructions to prepare annual

procurement plan
 Issue detailed instructions to the Heads of
Cost Centres indicating the format and
content of the procurement plan
 Receive and validate submissions from
Heads of Cost Centres
 Consolidate Cost Centre procurement
plans and submit to Head of Covered
Entity for review and approval
 Inform Heads of Cost Centre Heads to
adjust procurement plans in accordance
with service priorities
 Receive and validate submissions from
Heads of Cost Centres
 Consolidate and submit updated annual
procurement plan to Head of Covered
Entity for review and approval
 Notify Heads of Cost Centres of their
approved procurement plans
Heads of Cost Centres  Receive notification of procurement plan

guidelines and budget ceilings
 Prepare draft Cost Centre procurement
plan
 Submit draft Cost Centre procurement
plan to the Procurement Unit for
consolidation
 Adjust Cost Centre procurement plan for
service priorities if approved budget is less
than planned
115
Covered Entities
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 Receive notification of approved Cost
Centre procurement plan
NAME INPUT OUTPUT
Procurement Planning Circular 
Budget Circular 
Procurement Plan 
116
Covered Entities
March 2018
6.5.3 Procurement Planning
PR00 – Procurement planning
Ministry of
Finance
PR00-15
PR00-14
A Approve budget
Receive and review
submissions and notify
budget submissions
Head of MDA
Public Procurement
Board / Ministry of
PR00-1
Issue procurement
Finance
planning / budget
guidelines to Head of
MDA
Head of MDA
PR00-3 PR00-13
PR00-2 PR00-12
Instruct Procurement Submit procurement
Receive and review Review and endorse
Unit to prepare plan with budget
guidelines procurement plan.
procurement plan submissions to MoF
PR00-4
Procurement Unit
Prepare and issue PR00-7 PR00-11

PR00-8
detailed instructions for Receive and review Consolidate and submit
Accurate and Yes
preparation of Cost Centre to Head of MDA for
complete?
procurement plan to procurement plans review
Cost Centre Heads
No
PR00-9
Notify Cost Centre
Head to make
amendments
Head of Cost
PR00-5 PR00-10
Centre
PR00-6
Receive instructions Make necessary
Submit Cost Centre
and prepare Cost amendments to Cost
procurement plan to
Centre procurement Centre procurement
Procurement Unit
plan plan
117
Covered Entities
March 2018

1 The Public Procurement Board issues a procurement planning circular to Heads of Covered
Entities at least four months to the commencement of the financial year to provide guidance
on the format, content and timelines for the preparation and submission of the annual
procurement plan
2 The Head of Covered Entity receives the procurement planning guidelines from the Public
Procurement Board and instructs the Procurement Unit to coordinate the preparation of the
Covered Entity’s annual procurement plan
3 The Procurement Unit prepares and issues detailed instructions for the preparation of the
procurement plan to Heads of Cost Centres with guidelines on the content and format of the
procurement plan
4 Heads of Cost Centres receive, review the guidelines and prepare the Cost Centre’s draft
procurement plan based on its planned programmes and activities. The Heads of Cost Centres
submit the draft procurement plans to the Procurement Unit for review and consolidation
5 The Procurement Unit reviews the Cost Centre procurement plans to ensure they are
consistent with the Covered Entity’s strategic plans, ceilings as well as sector and ministerial
priorities and also comply with the procurement planning guidelines. If any Cost Centre
procurement plan is not in line with the guidelines or the ceilings, the Procurement Unit
returns the procurement plan to the relevant Head of Cost Centre to make the necessary
corrections and resubmit for review
6 The Procurement Unit consolidates the Cost Centre procurement plans into the draft annual
procurement plan for the Covered Entity and submits it to the Head of the Covered Entity for
approval
7 The Head of the Covered Entity receives, reviews and endorses the draft annual procurement
plan. The Head of Covered Entity then includes the procurement plan with budget
submissions to the Minister responsible for Finance
8 The Minister responsible for Finance receives, reviews and approves the Covered Entity
budget submissions. The Minister responsible for Finance notifies the Head of the Covered
Entity with the approved budgets.
9 The Head of Covered Entity receives the approved budget and confirms that budgets estimates
have not reduced in the approved budget. If the approved budget is not less than the budget
estimates, the Head of the Covered Entity submits the procurement plan to the Tender
Committee for approval. Otherwise, the Head of the Covered Entity instructs the Procurement
Unit to reprioritise the procurement plan according to the approved budget and service
priorities.
10 The Procurement Unit informs Heads of Cost Centres to reprioritise their respective Cost
Centre procurement plans
11 Heads of Cost Centres adjust their respective Cost Centre procurement plans according to the
approved budget and service priorities and submit the updated procurement plan to the
Procurement Unit for review and consolidation
12 The Procurement Unit receives and reviews the Cost Centre plans for completeness and
consistency with the approved budget and service priorities. If any Cost Centre procurement
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plan is inconsistent with the approved budget, the Procurement Unit returns the procurement
plan to the relevant Head of Cost Centre to make the necessary corrections and resubmit for
review
13 The Procurement Unit consolidates the Cost Centre procurement plans into the annual
procurement plan for the Covered Entity and submits it to the Head of the Covered Entity for
approval
14 The Head of the Covered Entity receives and reviews the updated annual procurement plan
and then submits it to the Tender Committee for approval at least one month before the start
of the financial year.
15 The Tender Committee reviews and approves the Covered Entity’s procurement plan and
returns a copy to the Head of the Covered Entity
16 The Head of the Covered Entity receives the approved procurement plan from the Tender
Committee and forwards it to the Procurement Unit with a copy to the Public Procurement
Board
17 The Procurement Unit receives the approved procurement plan and notifies Heads of Cost
Centres of their approved procurement plans and budgets
18 The Heads of Cost Centres receive notification of the approved procurement plans and
budgets for their respective Cost Centres and conduct their procurement activities in line with
the approved procurement plan
19 The Public Procurement Board receives a copy of the approved Covered Entity procurement
plan from the Head of Covered Entity
6.6 Procurement of Goods and Services

The process for the procurement of goods and services is described below. The PPA manual
provides detailed guidance on this process.
Spending Officer / Head of Covered Entity  Review and approve request memo
 Review and approve Purchase Order
Head of Cost Centre  Review and endorse request memo

 Submit to Head of Covered Entity for
approval
 Receive approved request memo and
instruct End User to raise purchase
requisition
 Review and approve purchase requisition
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End User / Requestor  Prepare and submit request memo to Head

of Cost Centre
 Raise purchase requisition on receipt of
approved request memo
 Submit approved requisition for goods to
Storekeeper and approved requisition for
services to Procurement Unit
 Receive and confirm receipt of goods from
Storekeeper
Storekeeper  Receive approved requisition for goods

 Issue goods to Requestor if goods are in
stock
 File requisition for reorder if goods are not
in stock
 Forward reorder requests to the
Procurement Unit
Procurement Unit  Receive approved requisitions / reorder

requests
 Select Vendor based on PPA regulations
 Prepare and issue PO to selected vendor
Vendor  Receive PO and commence performance
NAME INPUT OUTPUT
Request Memo 
Purchase requisition 
Request for Tender 
Purchase Order 
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6.6.3 Procurement of Goods and Services
PR01 - Procurement of Goods and Services
Head of Cost Spending Officer / Head of
PR01-7
PR01-12
Receive and PR01-8
Yes Approve request
review request Approve?
memo
memo
MDA
No
PR01-9 PR01-13
Notify Cost Centre Forward approved
Head of no memo to Cost
approval Centre Head
PR01-14
Center
PR01-3 PR01-6 PR01-21

PR01-4 PR01-10 Receive approved PR01-18
Receive and Endorse memo PR01-19 Authorise
Accurate and Yes Inform Requestor request memo and notify Review purchase Yes
review request and submit to Approve? purchase
complete? of no approval Requestor to raise requisition
memo Head of MDA requisition
purchase requisition
No
No
PR01-2
PR01-5 PR01-22
Submit request PR01-11 PR01-17
Amend request PR01-15 PR01-20 Receive
memo to Cost Receive Send for approval
memo Receive Amend request authorised
Centre Head notification of no by Cost Centre
notification memo purchase
End User / Requestor
approval Head requisition
PR01-1 PR01-16
Prepare request End Raise purchase PR01-24
PR01-23
memo requisition Forward requisition
No Request for
for services to Head
goods?
of Procurement
Yes
PR01-25
B Forward
requisition to
Storekeeper
Storekeeper
PR01-26
A Receive approved
requisition for
goods
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1 The End User prepares and submits a request memo to the Head of Cost Centre
2 The Head of Cost Centre receives and reviews the request memo. If the request memo is
accurate and complete, the Head of Cost Centre endorses and submits the request memo to
the Head of Covered Entity for approval otherwise the Head of Cost Centre directs the End
User to make the necessary changes to request memo and resubmit for review
3 The Head of Covered Entity receives and reviews the request memo from the Head of Cost
Centre. If the Head of Covered Entity approves the request memo, the Head of Covered Entity
forwards the approved request memo to the Head of Cost Centre otherwise the Head of
Covered Entity notifies the Head of Cost Centre that the request is declined
4 The Head of Cost Centre receives the approved request memo and notifies the requestor to
raise a purchase requisition. If the request memo is not approved by the Head of Covered
Entity, the Head of Cost Centre notifies the Requestor
5 The Requestor receives notification to raise a purchase requisition and raises a purchase
requisition. The Requestor submits the request to the Head of Cost Centre for review and
approval
6 The Head of Cost Centre receives and reviews the purchase requisition. If the purchase
requisition is accurate and complete, the Head of Cost Centre approves the purchase
requisition and forwards it to the Requestor. Otherwise the Head of Cost Centre returns the
purchase requisition to the Requestor to make the necessary changes and resubmit the
purchase requisition for approval
7 The Requestor receives the approved purchase requisition. If the purchase requisition is
respect of a request for goods, the Requestor forwards the requisition to the Storekeeper for
the issue of the required goods from Stores. Otherwise the Requestor submits the approved
purchase requisition to the Procurement Unit
8 The Storekeeper receives the approved requisition and issues the required goods to the
Requestor if the goods are in stock. The Storekeeper prepares a Stores Issue Voucher to issue
the requested goods to the Requestor. If the requested items are not in stock, the Storekeeper
files the requisition awaiting the reorder of the relevant goods.
9 The Storekeeper submits reorder requests to the Procurement Unit for the procurement of
goods which are at the reorder level
10 The Procurement Unit receives approved requisitions and selects a Vendor per the PPA
regulations
11 The Procurement Unit prepares and issues a purchase order, approved by the Head of Covered
Entity, to the selected Vendor
12 The selected Vendor receives the purchase order and commences performance
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6.7 Procurement of Works

The procurement process for works is outlined in this section

Minister of Finance  Receive and review request for
commencement certificate / warrant
 Approve request and release warrant /
commencement certificate based on
approved appropriation
Head of Covered Entity  Submit request for commencement
certificate / warrant to Minister of Finance
 Receive commencement certificate /
warrant and inform Procurement Unit to
commence procurement activity
 Review and approve Purchase Order
Procurement Unit  Receive notification to commence
procurement activity
 Select Vendor per PPA regulations
 Prepare Purchase Order for Head of
Covered Entity to approve
 Issue Purchase Order to selected Vendor
Contractor  Receive Purchase Order and commence
performance
NAME INPUT OUTPUT
Request for commencement certificate 

/ warrant
Commencement certificate / warrant 
Request for Tender 
Purchaser Order / Contract 
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6.7.3 Procurement of Works (Capital Expenditure)
PR02 – Procurement of Works (Capital Expenditure)

Head of MDA
PR02-1 PR02-5
Submit request for PR02-4 Inform Head of
Commencement Receive warrant / Procurement Unit to
Certificate / warrant to commencement certificate commence
MoF procurement activity
Minister of
PR02-3
PR02-2
Finance
Approve request and

Receive and review
release warrant /
request for
commencement
commencement
certificate based on
certificate / warrant
appropriation
Procurement Unit
PR02-6 PR02-8
PR02-7
Receive notification to Prepare and
Select Vendor per
commence procurement issue PO to
PPA regulations
activity selected Vendor
Contractor
PR02-9
Receive PO and End
commence performance
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1 The Head of Covered Entity submits a request for commencement certificate / warrant to the
2 The Minister responsible for Finance receives and reviews the request for a commencement
certificate / warrant
3 The Minister responsible for Finance approves the request and releases a warrant /
commencement certificate to the Head of Covered Entity based on the approved
appropriations for the Covered Entity
4 The Head of Covered Entity on receipt of the warrant / commencement certificate instructs
the Procurement Unit to commence activities to procure the required works
5 The Procurement Unit on receipt of the instruction selects a Vendor per the PPA regulations
6 The Procurement Unit prepares and issues a purchase order, approved by the Head of Covered
Entity, to the selected Vendor
7 The selected Vendor receives the purchase order and commences performance
6.8 Receipt / Acceptance of Goods, Works and Services

6.8.1 Receipt of Goods and Invoice matching
The PPA manual provides detailed guidelines on the processes to be followed for receiving goods.
An outline of the process is presented in this section
6.8.1.1 Roles and responsibilities

Supplier  Deliver ordered goods to stores

 Prepare and submit invoice for payment
processing based on signed waybill
Storekeeper  Receive goods into temporary storage

pending inspection by Inspections team
 Issue interim receipt for goods received
pending inspection
 Receive accepted goods into stores
 Sign copies of waybill or delivery note to
confirm receipt of goods and issue original
to the Accounts Section, duplicate copy to
the supplier and retain triplicate copy
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 Complete Stores Receipt Advice and
forward copies to Accounts and
Procurement
Inspections Team  Inspect delivered goods for compliance

with specifications and quantities
(Storekeeper, Internal Auditor, User Division
Representative or External Expert, Security  Reject goods if specifications not met
Officer)
 Prepare inspections report detailing
specification and quantities of goods
inspected
 Release accepted goods to be taken into
stores
 Verify goods delivered against the
specifications on the PO to ensure that the
correct items have been delivered in the
required quantities
 Leader of inspection team stamp sign
waybill or delivery note and invoice when
goods are found to be satisfactory
 Reject the order immediately where the
goods supplied are found to be defective,
not in accordance with specifications or
variation in prices compared to the PO.
 Where quantity of goods delivered are
short of the quantity specified on the PO
or contract, the inspection team may
accept partial delivery
 Submit a report to be circulated to: Head
of Finance, Head of Procurement,
Storekeeper, Head of User Division
Finance Office  Receive and file copy of Stores Receipt

Advice
 Receive invoice from supplier
 Confirm invoice quantities and price from
Stores Receipt Advice and Purchase Order
 Prepare Payment Voucher
 Review payment voucher
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 Initiate payment Processing
Head of Covered Entity  Approve invoice for payment processing

NAME INPUT OUTPUT
Waybill/ Delivery Note 
Stores Receipt Advice 
Temporary receipt for goods 
Invoice 
Purchase order 
Payment Voucher 
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6.8.1.3 Receipt of Goods and Invoice Matching Process flow

PR03 – Goods receipt and Invoice Matching
PR03-3 PR03-8
PR03-4 PR03-6
Inspection Team
Inspect goods Prepare inspection

Specifications Yes Quantity matches Yes
within two days of report in
met? order
delivery quadriplicate
No
PR03-5 PR03-9
Reject goods Release accepted
goods to Stores
Storekeeper
PR03-2 PR03-12
PR03-10
Receive goods into PR03-11 Submit invoice to
Prepare SRA to
temporary storage Receive and register Finance Office for
receive accepted
and issue interim No invoice payment
goods into Stores
reciept processing
Supplier
PR03-1
PR03-16
Deliver goods PR03-7 PR03-15
Submit invoice for
with delivery Rectify order Correct invoice
payment processing
note/waybill
No
Finance Office
PR03-17
PR03-13
Endorse and PR03-14
Receive invoice
submit invoice to Yes Invoice passes
and apply invoice
Head of MDA for matching test?
matching rules
approval
Head of MDA
PR03-19
PR03-18
Approve invoice for PY03
Receive and review
payment
invoice
processing
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1 The Supplier delivers the ordered goods with a delivery note to the Storekeeper
2 The Storekeeper received the goods into temporary storage and issues an interim receipt to
the Supplier pending the inspection of the goods by the Inspections team.
3 The Inspections team inspects the delivered goods within two days of delivery in the presence
of Supplier’s representative (at the discretion of the Supplier) and confirm that the delivered
goods are in compliance with the purchase order specifications.
4 The Inspections team shall prepare an inspection report detailing the specification and
quantities of goods inspected and the reasons for accepting or rejecting any. Copies of the
inspections report shall be circulated to the Head of Finance, Head of Procurement, Store
Keeper and the Head of the User Division
5 If the delivered goods do not meet the agreed specifications on the purchase order, the
Inspections team shall reject the goods. The Supplier shall be notified to rectify the order.
6 If the goods meet the agreed specification and the quantity ordered, the Storekeeper shall
receive the goods into stores. The Storekeeper shall sign and retain a copy of the Supplier’s
delivery note / waybill. If the quantity of goods delivered is less than the quantity ordered, the
Storekeeper shall accept the partial delivery in line with administrative guidelines and notify
the Supplier to deliver the full order.
7 The Storekeeper shall prepare a Stores Receipt Advice for the quantity of goods received into
stores in triplicate and issue original copy to the Finance Office and the duplicate copy to
Supplier. The triplicate copy shall be retained at the store.
8 The Supplier shall prepare and submit an invoice on receipt of the signed waybill/delivery
note
9 The Finance Office shall receive and file the Stores Receipt Advice.
10 The Finance Office receives the invoice from the Supplier and compare it to Purchase Order
and the Stores Receipt Advice to confirm the prices and quantities. If there are any
discrepancies, the invoice is returned to the Supplier to make the necessary corrections and
resubmit the invoice, otherwise the Accounts Officer shall submit the invoice to the Head of
Finance
11 The Head of Finance Officer shall review, endorse and forward the invoice to the Head of
Department for approval.
12 The Head of Department shall review and approve the invoice for payment processing.
13 The Head of Finance shall receive the approved invoice and initiate payment processing (See
Payment for Goods and Services section in this manual)
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6.8.2 Acceptance of Works

Inspections Team  Inspect works to ensure specifications

have been met and all defects have been
(Project Manager, Representative from
rectified
Procurement and Technical Units)
 Certify takeover of the works and sign
Certificate of Completion
 Prepare inspection report
 Issue takeover certificate
Project Manager  Receive invoice from Contractor for

payment processing
 Prepare payment certificate and submit to
Head of Covered Entity for approval
 Log payment certificate and invoice in
Contracts Register
Contractor  Submit invoice for payment processing
Head of Covered Entity  Review and authorise payment certificate

 Review and approve invoice for payment
processing
Finance Office  Receive invoice and initiate payment

processing

NAME INPUT OUTPUT
Interim Take over certificates 
Final Take over certificate 
Interim Payment certificates 
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NAME INPUT OUTPUT
Final Payment Certificate 
Invoice 
Contract / Purchase Order 
Payment voucher 
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6.8.2.3 Acceptance of Works

PR03a – Works Acceptance and Invoice Matching
Inspection
PR03a-1
Team
Inspect works and

issue takeover
certificate
Contractor
PR03a-2
PR03a-5
Submit invoice for
Rectify invoice
payment processing
No
PR03a-6
Manager
PR03a-10
Project
PR03a-3 Endorse invoice PR03a-9

PR03a-4 Forward payment
Receive invoice and prepare Log payment
Invoice passes Yes certificate and invoice
and apply invoice payment certificate certificate and invoice
matching test? to Finance Office for
matching rules for approval by in Contracts Register
payment processing
Head of MDA
Head of MDA
PR03a-8
PR03a-7
Approve payment
Receive and review
certificate and
payment certificate
invoice. Forward to
and invoice
Project Manager
Finance Office
PR03a-11
Receive approved
payment certificate PY03
and invoice.
Commence payment
processing
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1 The Inspections Team inspects the works to confirm that the works meet agreed specifications
and also that all defects have been properly rectified. The Inspections Team signs the
certificate of completion to certify acceptance of the works. The Inspections Team prepares
and submits a report to the Head of Covered Entity.
2 The Contractor submits an invoice to the Project Manager for payment processing after the
inspection has been completed
3 The Project Manager receives the invoice and applies the invoice matching rules. If the
invoice in inconstant with contractual obligations, the Project Manager returns the invoice to
the Contractor to make the necessary adjustment and resubmit the invoice for payment
processing. Otherwise the Project Manager prepares a payment certificate, endorses and
attaches the invoice with other supporting documents to the payment certificate and submits
it to the Head of Covered Entity for approval
4 The Head of Covered Entity receives, reviews and approves the payment certificate and the
invoice and forwards it the Project Manager
5 The Project Manager updates the Contracts Register with the details of the approved payment
certificate and forwards the payment certificate and invoice to the Finance Office for payment
processing
6 The Finance Office receives the approved invoice and payment certificate and initiates
payment processing
6.8.3 Acceptance of Services

Consultant  Submit invoice for payment processing
Procurement Unit  Receive invoice and confirm adherence to

contractual requirements
 Endorse and forward invoice to Head of
Covered Entity to approve for payment
processing
 Receive approved invoice and update
Contracts Register
 Forward approved invoice to Finance
Officer for payment processing
Head of Covered Entity  Receive and review invoice
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 Approve invoice for payment processing
Finance Office  Receive approved invoice and initiate

payment processing
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6.8.3.2 Acceptance of Services
PR03b – Services Acceptance and Invoice matching

Consultant
PR03b-1
PR03b-4
Submit invoice for
Rectify invoice
payment processing
No
Procurement
PR03b-5 PR03b-9
PR03b-2
PR03b-3 Endorse and PR03b-8 Forward approved
Unit
Confirm contractual
Invoice passes Yes submit invoice for Update Contract invoice to Finance
requirements are
matching test? Head of MDA’s Register Office for payment
met
approval processing
Finance Office Head of MDA
PR03b-6
PR03b-7
Receive invoice
Forward approved
and approve for
invoice to
payment
Procurement Unit
processing
PR03b-10
Receive approved
invoice and PY03
commence
payment
processing
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Covered Entities
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1 The Consultant prepares and submits an invoice for payment processing
2 The Procurement Unit confirms that the Consultant has met the relevant contractual
requirements and also that the invoice amount is consistent with the contracted payment
amount. The Procurement Unit endorses and submits the invoice to the Head of Covered
Entity to approve for payment processing if all the relevant contractual conditions for a
payment have been met. Otherwise, the Procurement Unit returns the invoice to Consultant
for rectification and resubmission of the invoice
3 The Head of Covered Entity receives, reviews and approves the invoice for payment
processing. The Head of Covered Entity forwards the approved invoice to the Procurement
Unit
4 The Procurement Unit receives the approved invoice and updates the Contracts Register. The
Procurement Unit then forwards the approved invoice to the Finance Office for payment
processing
5 The Finance Office receives the approved invoice and initiates payment processing
6.9 Maintenance of Suppliers


Supplier  Provide relevant information to Covered Entity
(Procurement Unit).
Covered Entity (Procurement  Receive and review supplier information

Unit)
 Forward Supplier information to CAGD to set up/amend
Supplier details
 Receive feedback from the CAGD confirming the setting

up/amending Supplier details
CAGD  Set up/amend Supplier details on the financial

management System
 Communicate feedback to Covered Entity (Procurement

Unit)
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Covered Entities
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Name Input Output
Supplier registration form 
Confirmation of supplier setup 
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Covered Entities
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6.9.3 Supplier maintenance Process flow
PY14 – Maintenance of Suppliers
PY14-1
PY14-4
Provide details
Provide / amend
information to
Suppliers
information
MDAs
No
PY14-2
PY14-3
Receive and
Accurate and
review supplier
complete?
information
MDAs
Yes
PY14-5
Forward information PY14-8
to CAGD to set up Receive feedback End
supplier or amend from CAGD
supplier details
CAGD
PY14-6
PY14-7
Set up supplier or
Communicate
amend supplier
feedback to MDAs
details
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Covered Entities
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1 The Supplier shall provide relevant detailed information including; name, address, contact
number, VAT registration certificate to the Covered Entity (Procurement Unit).
2 The Covered Entity (Procurement Unit) shall receive and review Supplier information. If the
Supplier information is accurate and complete, the Covered Entity (Procurement Unit) shall
forward the Supplier information to the CAGD to set up/amend Supplier details, otherwise
the Covered Entity (Procurement Unit) shall request the Supplier to provide the necessary
information.
3 The CAGD shall set up/amend Supplier details in the financial management system and
communicate feedback to the Covered Entity (Procurement Unit) accordingly.
4 The Covered Entity (Procurement Unit) shall receive feedback from the CAGD confirming
the setting up/amending Supplier details in the financial management system
139
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7 Expenditure Management
7.1 Introduction
Effective management of public expenditure is an essential mechanism for the effective allocation
and use of public funds to achieve the state’s policy objectives.
To facilitate the effective control of Covered Entities’ cash flow and promote financial discipline,
it is essential that the regulations and the instructions given by the CAG, with respect to
disbursement of public funds, are fully complied with. This includes ensuring the details of all
payments are properly authorised and captured in the financial management systems prior to the
issue of a cheque or transfer advice. This will facilitate the use of public funds in a manner that
secures optimal value for money and is consistent with the intentions of Parliament.
The categories of expenditure are presented under the following sub headings:
1 Compensation of Employees
2 Payment for use of Goods and Services
 Procurement related payments
 Non-Procurement related payments
- Payments of Trust Money
- Imprest payments
3 Public Debt Payments
4 Payments for Capital Expenditure
5 Statutory Payments
6 Payments from Project Accounts

The Public Financial Management Act, 2016 Act 921 and the Financial Administration
Regulations, 2004 (L.I. 1802) set out the legal requirements for payment processing and
disbursement of public funds. In addition to this, the Controller and Accountant-General provides
guidelines on payment processing to Covered Entities.
A summary of the major provisions are presented below:
i. An Approving Officer shall only approve a commitment where sufficient unspent and
uncommitted warrant balance exists for the purpose of the commitment or where the
Minister of Finance has approved a commitment extending beyond the current financial
year
ii. A payment from the Covered Entity’s account shall only be made where an Approving
Officer has duly authorised the payment and the Head of Finance has certified that the
details of the payment are correct and the payment may be properly made.
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Covered Entities
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iii. All payments must be supported by a payment voucher which shall contain the particulars
of the service or goods being paid for by the Covered Entity
7.2.1 Responsibilities
The Head of a Covered Entity has the overall responsibility for ensuring that all moneys allocated
to the Covered Entity is appropriately utilised to achieve value for money and for the purpose in
respect of which Parliament approved the appropriation of public funds.
The Head of Finance has the responsibility of ensuring that all expenditure and payments of the
Covered Entity are duly authorised, correct and properly accounted for in the books of accounts.
The Head of Finance also ensures that the distribution of payment vouchers and value books are
carefully controlled, in compliance with statutory requirements and best practice.
7.3 Compensation of Employees

7.3.1 Financial Regulations and Policies
The following policies are to be applied in respect of payments of compensation to employees:
i. All established and contract staff are paid monthly. Personnel emoluments are due and
payable according to the calendar of pay days for a period published by the Controller and
Accountant-General. The Controller and Accountant-General shall communicate any
changes in published pay days to all stakeholders.
ii. All payroll amendments must be authorised by a responsible Officer and evidenced by duly
approved supporting documents.
iii. Payment of salaries or wages of the Covered Entity’s employees shall be normally made
by direct bank transfer or cheque payment into the employee’s bank account. Where salary
payments are made by cash, the payment should be made by a Paying Officer in the
presence of a witness authorised by the Covered Entity for this purpose and the recipient
should be required to produce a valid proof of identity.
iv. No deductions shall be made from employees’ personal emoluments, except for statutory
deductions, disciplinary awards and voluntary deductions authorised by the Head of
Department in line with administrative guidelines.
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Covered Entities
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7.3.2 Mechanised Payroll (Ministries)

This section outlines the process for the payment of Ministries’ employee salaries.

Covered Entity HR Unit  Collate payroll amendments from Cost Centres
 Submit payment amendments to PPS to initiate
payroll processing
Covered Entity PPS  Validate payroll amendments
 Submit validated amendments with supporting
documents to the PPD for payroll processing
CAGD/ Payroll Division  Run test payroll for the month
 Run final payroll for the month
 Instruct Chief Cashier to prepare BTA/swift
instructions for payments
 Instruct banks to pay or transfer funds/salaries into
individuals’ accounts.
Head of Cost Centre  Receive test payroll for verification
 Send verified payroll to CAGD
 Receive copy of final payroll
Chief Cashier  Prepare BTA/Swift Instructions for transfer funds
 Raise Journal Vouchers for transfers

NAME INPUT OUTPUT
Payroll amendments 
Draft payroll reports 
Final payroll reports 
Journal Vouchers 
142
Covered Entities
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7.3.2.3 Mechanised Payroll (Ministries) Process flow

PY01 – Mechanised Payroll – (Ministries)
MDA HR Unit
PY01-1 PY01-6
PY01-2
Collate payroll Liaise with Cost
Forward approved
amendments Centre Head to
amendments to
from Cost Centre confirm payroll
PPS
Heads amendment
PY01-3
Receive and
validate payroll
amendments
PPS
PY01-7
PY01-5
Forward validated PY01-4
Return to MDA HR
amendments and Yes Accurate and No
Unit for
supporting complete?
rectification
documents to PPD
MDA Head of
Cost Centre
PY01-18
PY01-12
PY01-13 Endorse payroll
Receive and
Submit feedback reports for
review draft
to CAGD/PPD payments
payroll reports
processing
PY01-8 PY01-14
PY01-11 PY01-17 PY01-19
Receive approved Receive feedback
Forward payroll Forward payroll Receive approved End
payroll on draft payroll
CAGD / PPD
reports to MDA reports to MDA payroll reports

amendments reports
PY01-10 PY01-16 PY01-23

PY01-9 PY01-20
Generate draft PY01-15 Generate payroll Instruct commercial
Validate and Inform Chief
payroll journal and Process final journal and banks to credit
process payroll Cashier to process
supporting payrun supporting employee salary
amendments salary payments
schedules schedules accounts
Chief Cashier
PY01-22
PY01-21 Prepare journal
Prepare BTA for vouchers for
cash transfer payment
processing
143
Covered Entities
March 2018

1 The Covered Entity HR Unit collates payroll amendments such as overtime, joiners etc. from
the Cost Centres and submits them to the PPS to initiate payroll processing after the
amendments have been duly authorised by the responsible Officers
2 The Covered Entity Payroll Processing Section (PPS) receives and validates the payroll
amendments and submits the validated amendments with supporting documents to the Payroll
Processing Division, CAGD (PPD) for processing in accordance with the approved payroll
calendar. If any amendment cannot be validated from the supporting documents submitted,
the PPS returns it to the HR Unit for resolution and resubmit for payroll processing
3 The PPD receives the payroll amendment with the supporting documents. The PPD confirms
the payroll amendments against the supporting documents for accuracy and completeness and
processes the payroll amendments for the month. The PPD generates draft reports and forward
copies to the Head of Cost Centre for verification. If any amendment is not verifiable by the
supporting documents, the PPD removes it from the pay run and informs the PPS to provide
the necessary support before that amendment is processed
4 The Head of Cost Centre validates the draft payroll report against staff records and provides
feedback to the PPD on the accuracy and completeness of the draft payroll reports
5 The PPD receives the verified payroll data and completes the final pay run for the month. The
PPD shall forward copies of the final payroll reports to the Head of the Cost Centre to approve
for payment processing
6 The Head of Cost Centre shall review, endorse and forward the verified payroll report to the
PPD for payment processing
7 The PPD shall seek final approval from the Controller and Accountant-General (CAG) to
authorize payments. The CAG shall instruct the Chief Cashier to prepare BTA/swift
instructions for payments to be made.
8 The Chief Cashier shall prepare BTA/swift instructions and attaching supporting documents.
The Chief Cashier shall also raise Journal Vouchers for the transfers and update the books of
accounts accordingly.
9 The PPD shall instruct the respective banks to pay or transfer funds/salaries to relevant
individuals’ accounts.

Salary Journal posting Debit Credit
Established Post 2111001
Daily Rated 2111101
Monthly paid & casual labour 2111102
144
Covered Entities
March 2018
Allowances 21112xx
SSF – Employer Contribution 2121001
Net Salary Payable 4117xxx
SSF 4117xxx
Income Tax (PAYE) 4117508508
Contribution to Provident Fund 4117xxx
Union Contribution 4117505505
Salary advance deduction 32811023281102
Other salary deductions 32811013281101
7.3.3 Non mechanised Payroll (Other Agencies)

Human Resources Manager  Collate payroll amendments for the month and submit
to the Head of Finance to review
 Endorse and forward amendments with supporting

documents to the Payroll Unit for processing
 Review and endorse payroll reports
 Forward payroll report to Head of Finance for

payment processing
Payroll Processing Unit  Receive and process payroll amendments
 Forward payroll reports to the Human Resource

Manager for review
Head of Finance  Review and endorse payroll report
 Submit to Head of Covered Entity for approval
145
Covered Entities
March 2018

 Receive approved payroll report and process
payments
Head of Covered Entity  Review and approve payroll for payment processing

NAME INPUT OUTPUT
Payroll amendments 
Test payroll reports 
Final payroll reports 
Journal Vouchers 
146
Covered Entities
March 2018
7.3.3.3 Compensation of Employees (Other Agencies) Process flow
PY02 - Non Mechanised Payroll

HR Manager
PY02-1 PY02-7
Collate payroll PY02-4 PY02-5 Endorse payroll
amendments and Review payroll Accurate & reports and forward to
forward to Payroll reports complete? Head of MDA for
Unit for processing approval
Processing
Payroll
PY02-2 PY02-3 PY02-6

Unit
Receive and Forward payroll Make necessary

process payroll reports to HR corrections to the
amendments Manager for review payroll and rerun
PY02-8
Finance
Head of
Review and PY02-11

endorse payroll Receive approve
End
report. Forward to payroll and initiate
Head of MDA for payment processing
approval
Head of MDA
PY02-9 PY02-10
Review and approve Forward approved
payroll for payment payroll to Head of
processing Finance
147
Covered Entities
March 2018

1 The Agency’s HR Manager collates monthly payroll amendments from the Agency’s
departmental Heads, validates and forwards them to the Payroll Processing Unit
2 The Payroll Processing Unit receives the payroll amendments from the Human Resources
Manager, processing the payroll and generates draft payroll reports. The Payroll Processing
Unit submits the draft payroll reports to the Human Resources Manager for review
3 The Human Resources Manager receives and reviews the draft payroll reports for accuracy
and completeness. If the payroll reports are accurate and complete, the Human Resources
Manager endorses the report and forward it to the Head of Agency through the Head of
Finance for approval to commence payment processing otherwise the Payroll Processing Unit
is informed to make the necessary corrections to the payroll and resubmit payroll reports for
review
4 The Head of Finance receives and reviews the payroll reports. The Head of Finance endorses
the payroll reports and the forwards it to the Head of Agency for approval
5 The Head of the Agency receives and reviews payroll report and approves it for payroll
processing. The Head of the Agency forwards the approved report to the Head of Finance to
initiate payment processing
6 The Head of Finance receives the approved payroll reports and prepares Swift Instructions
for the transfer of funds, attaching supporting documents. The Head of Finance also raises
Journal Vouchers for the transfers and updates the books of accounts accordingly.

Established Post 2111001
Daily Rated 2111101
Monthly paid & casual labour 2111102
Allowances 21112xx
SSF – Employer Contribution 2121001
Net Salary Payable 4117xxx
SSF 4117xxx
Income Tax (PAYE) 41175084117508
Contribution to Provident Fund 4117xxx
148
Covered Entities
March 2018
Union Contribution 41175054117505
Salary advance deduction 32811023281102
Other salary deductions 32811013281101
7.3.4 Unclaimed salaries

Salaries may remain uncollected for a variety of reasons. Salaries that are uncollected after certain
specified number of days may be re-banked. The Paying Officer should return the amount to the
Cashier and receive a receipt voucher, clearly indicating the Employee’s cheque number, name,
section, the amount and period to which the salary relates.
Where separate bank accounts have been established for third party deposits, any unclaimed
salary should be deposited to that account. If a separate bank account has not been established,
unclaimed salaries may be deposited to the Covered Entity’s expenditure account

Payment posting Debit Credit
Bank Account 3212xxx
Unclaimed Salaries Account 4117xxx
7.4 Payment for Use of Goods and Services

This section outlines the processes for payment of purchase order and non-purchase order initiated
expenditure transactions.
In this section, the term payment voucher refers to the GIFMIS invoice and the invoice refers to
the Supplier’s invoice.
7.4.1 Payment for Goods and Services

Accounts Officer  Prepare payment voucher
 Prepare cheques and payment list
 Dispatch cheques to payees
 Receive and file receipts from payees
149
Covered Entities
March 2018

Head of Finance  Review and endorse payment voucher
 Review and sign cheques and payment list
 Post approved payments to update ledger
Head of Covered Entity  Review and approve payment voucher for

payment processing
 Review and countersign cheques and

payment list
Payee  Receive cheque
 Issue receipt to acknowledge payment

NAME INPUT OUTPUT
Payment voucher 
Cheque 
Payment list 
Receipt 
150
Covered Entities
March 2018
7.4.1.3 Payment for use of Goods and Services Process flow
PY03 – Payment for Goods and Services

Head of MDA Chief Cashier
PY03-9
PY03-8
Transfer funds to
Receive and review
MDA operational
payment list
bank account
PY03-4 PY03-7
PY03-3
Forward approved PV to Endorse and forward
Review and approve PV
Finance Unit for payment list to Chief
for payment processing
processing Cashier
PY03-5 PY03-10
PY03-2
Generate payment PY03-6 Process EFTs and
PY03-1 Generate PV and
list for approved PVs Submit payment list to cheque payments
Receive approved invoice submit to Head of
and submit to Head Head of MDA when funds are
MDA for approval
of MDA received
Finance Unit
PY03-11
Post approved
payments to update
ledgers
Payee
PY03-13
PY03-12
End Issue receipt for payment
Receive payment due
received
151
Covered Entities
March 2018

1 The Accounting Officer receives the approved invoice and generates a Payment Voucher
2 The Head of Finance shall review and approve the payment voucher with its supporting
documents for accuracy and completeness. If the payment voucher and supporting documents
are accurate and complete, the Head of Finance shall endorse and forward the payment
voucher to the Covered Entity Head for approval, otherwise the Head of Finance shall return
the payment voucher to the Accounts Officer to make the necessary corrections and resubmit
for approval
3 The Covered Entity Head reviews and approves the payment voucher and forwards it to the
Head of Finance for payment processing
4 The Head of Finance receives the approved payment voucher and generates a payments list
5 The Head of Finance submits the payments list to the Head of Covered Entity for review and
approval
6 The Head of Covered Entity endorses and submits the payments list to the Chief Cashier for
transfer of funds to process payments
7 The Chief Cashier receives and reviews the payment list from the Head of Covered Entity and
checks availability of funds on the cash pool
8 The Chief Cashier processes a BTA to transfer funds to the Covered Entity’s operational bank
account and informs the Head of Covered Entity
9 The Head of Covered Entity on receipt of notification of funds transfer advises the Head of
Finance to complete payment processing
10 The Head of Finance instructs the Accounting Officer to prepare EFT instructions and
cheques as appropriate per the approved payment list
11 The Accounting Officer prepares the EFT instructions and cheques and submits them to the
Head of Finance for review
12 The Head of Finance shall review and sign the cheques and EFT instructions per the payment
list if they are accurate and complete, and forward them to the Covered Entity Head for
approval. If the cheques or EFT instructions are not accurate and complete, the Head of
Finance shall return them to the Accounting Officer to make the necessary corrections and
resubmit for approval
13 The Covered Entity Head receives, review and countersign the cheques and forward them to
the Head of Finance for dispatch to payees. The Head of Covered Entity also approves EFT
instructions to advise the bank to make direct transfers of approved funds to the bank of
beneficiaries from the Covered Entity’s operational bank account
14 The Head of Finance updates the ledger with the payment details and forward the cheques to
the Accounting Officer for issue to the Payees
15 The Accounting Officer shall receive and issue the cheques to the respective Payees
16 The Payees shall receive their respective cheques and issue a receipt to the Accounting Officer
17 The Accounting Officer shall receive and file the receipts from the Payee
152
Covered Entities
March 2018

Accounts Payable 4117xxx
7.4.2 Payments for Trust Money and Other Charges

Payee  Submit claim for payment
 Receive cheque
Head of Department / Division  Receive and review application for

payment of claim
 Endorse application for payment of claim
Accounts Officer  Receive approved payment request
 Prepare payment voucher
 Dispatch cheques to payees
 Receive and file receipts from payees

payment processing

payment list
153
Covered Entities
March 2018
7.4.2.2 Documents (Input/Output)

NAME INPUT OUTPUT
Claim for payment 
Payment voucher 
Cheque 
Payment list 
Receipt 
154
Covered Entities
March 2018
7.4.2.3 Payments for Trust Money and Other Charges Process flow
PY04 – Payment for Trust Moneys and other Charges
PY04 -24
Payee
PY04 -1 PY04 -25

Receive
Submit claim Issue
cheque/
for payment receipt
payment
PY04 -2
Receive
Accounts Officer
PY04 -26
approved request
Receive and
for payment
file receipt
for payment
PY04 -12 PY04 -23
PY04 -11
PY04 -3 Submit / amend Dispatch
Prepare cheque No
Enter / amend cheques and cheques
payments
details of PV and payment list to payees End
submit to Head of
Finance
No
PY04 -22
PY04 -10 PY04 -13 PY04 -14 Forward cheques
Forward to Receive payment Accurate and to Accounts
Accounts Officer list and cheques complete? Officer for
disbursement
Head of Finance
Yes
PY04 -6 PY04 -21
PY04 -4 PY04 -5 PY04 -9 PY04 -16
Endorse PV and PY04 -15 Post approved
Receive and Accurate and Yes Receive approved File cheques
submit to MDA No Funds payments to
review PV complete? PV awaiting funds
Head available? update ledger
availability
Yes
PY04 -20
PY04 -17
Receive approved
Sign cheques /
cheques/payment
payment list
list
MDA Head
PY04 -18
PY04 -19
Receive and
PY04 -7 PY04 -8 Forward to Head
countersign
Review PV and Approve PV for of Finance for
cheque/payment
supporting payment disbursement
list
scheduls processing
155
Covered Entities
March 2018

1 A claimant shall apply to the Head of the relevant Department / Division for the payment of
a claim
2 The Head of Department shall receive and review the application for the payment of claims,
and recommend it for payment processing if it is a valid claim and the application is accurate
and complete, otherwise the Head of Department shall refuse the application and notify the
claimant accordingly.
3 The Head of Department forwards endorsed claims for payment to the Head of the Covered
Entity to initiate payment processing
4 The Head of the Covered Entity shall receive and review the claim. The Head of the Covered
Entity shall approve the claim and forward it to the Head of Finance for payment processing
5 The Accounts Officer shall prepare payment vouchers for the charges due based on an
approved payment list and forward to the Head of Finance for review
for approval
7 The Covered Entity Head shall review and approve the payment voucher and forward it to the
8 The Head of Finance shall receive the approved payment voucher and forward it the Accounts
Officer to process payments
9 The Accounts Officer shall prepare cheques and payment list and submit to the Head of
Finance for review
10 The Head of Finance shall review and sign the cheques and payment list if they are accurate
and complete and also funds are available, and for them to the Covered Entity Head for
approval. The cheques are not accurate and complete, the Head of Finance shall return them
to the Accounts Officer to make the necessary corrections and resubmit for approval
11 The Covered Entity Head shall receive, review and countersign the cheques and payment list
and forward them to the Head of Finance for dispatch to payees
12 The Head of Finance shall update the ledger with the payment details and forward the cheques
to the Accounts Officer for issue to the payees
13 The Accounts Officer shall receive and issue the cheques to the respective Payees
14 The Payees shall receive their respective cheques and issue a receipt to the Accounts Officer
15 The Accounts Officer shall receive and file the receipts from the Payee
156
Covered Entities
March 2018

7.4.3 Imprest Payment

An imprest is an advance granted to a Public Officer to make payments for incidental expenditure
using the normal payment procedures.
Applicants shall make a request for imprest against budgeted expenditure items. The applicant
will be recorded as a debtor and the same time the imprest amount will be committed. The
applicant will complete an imprest request form and submit it for the necessary approvals, which
will include checks to ensure that there are funds available for the imprest amount before the
request is granted.
7.4.3.1 Policies and Regulations

1 Imprests shall be granted and applied in accordance with the provisions of the FAR, 2004 or
instructions issued by the Controller and Accountant-General
2 Imprest must be retired at the end of each financial year.
3 The Head of an Covered Entity is responsible for ensuring that all imprests are retired and
accounted for at the due date. The Head of the Covered Entity must report details of imprests
and imprest holders which are not retired and accounted for at the due date to the Controller
and Accountant-General copying the Auditor General
7.4.3.2 Types of Imprest

There are two types imprest: General or Standing Imprest and Special Imprest
General or Standing Imprest

The General imprest is a fixed amount given to a Division or Section at the start of the financial
year. Recoupments are made as and when the monies are used until the end of the financial year
Special Imprest
Special imprests are advanced to an individual for a specified assignment and is to be retired at
the end of that assignment

Applicant  Complete application for imprest
157
Covered Entities
March 2018

 Receive and sign for imprest payment
Cost Centre Head  Approve request for imprest payment
Head of Department  Authorise request for imprest payment
 Approve request for payment processing
Head of Finance  Generate payment of imprest
 Update ledger with imprest payment

NAME INPUT OUTPUT
Payment voucher 
Application for imprest 
Cheque 
158
Covered Entities
March 2018
7.4.3.6 Imprest Payments Process flow

PY06 – Imprest Payments
Applicant
PY06-4 PY06-15
PY06-1 PY06-14
Receive Sign register to
Submit application End Receive
notification of no acknowledge
for imprest cheque
approval receipt
PY06-2 End
Cost Centre Head
PY06-3
Review application
Approved?
for application
PY06-5 PY06-8
Endorse application Receive
and forward to Head notification of no
of Department approval
Department
Head of
PY06-9
PY06-6
PY06-7 Approve application
Receive and
Approved? for payment
review application
processing
Head of Finance
PY06-11
PY06-10 PY06-12 PY06-13
Process
Receive approved Post imprest debt Issue cheque
payment of
application on ledgers to applicant
imprest
159
Covered Entities
March 2018

1 The Applicant shall complete and submit an imprest application form to the Cost Centre Head
for review and approval
2 The Cost Centre Head shall review and endorse the application if it is in line with planned
activities and there are sufficient budget balances on the items of expenditure otherwise the
Cost Centre Head shall turn down the application and notify the Applicant
3 The cost Centre shall forward endorsed applications to the Head of Department for
authorisation and approval for payment processing
4 The Head of Department shall receive and review the application. If the application is
approved, the Head of Department shall forward it Head of Finance for payment processing
to be initiated
5 The Head of Finance shall receive and process the approved application for payment. The
Head of Finance shall issue the cheque to the Applicant and post the imprest payment as a
debt in the ledger
6 The Applicant shall receive and acknowledge receipt of the cheque from the Head of Finance

Imprest Journal posting Debit Credit
Staff Advances Account 3281xxx
Imprest payment posting Debit Credit
160
Covered Entities
March 2018
7.4.2 Imprest Retirement

Imprest retirement will involve the completion of an imprest retirement form by the imprest
holder which shall be submitted to the Head of Department with any unspent funds for approval
and forwarded to the Head of Accounts to record on the books of account.

Imprest Holder  Complete and submit imprest retirement
form for approval by Head of Department
Head of Department  Review and approve imprest retirement

form
 Forward to Head of Finance to record on

books of account
Head of Finance  Receive and endorse imprest retirement

form
 Review and post imprest retirement form

details on ledger
Accounts Officer  Receive imprest retirement form
 Receive and account for any money

attached to imprest retirement form
 Prepare journal with imprest retirement

details

NAME INPUT OUTPUT
Imprest Retirement Form 
Journal Voucher 
Receipt ( for returned funds) 
161
Covered Entities
March 2018
7.4.1.5 Imprest Retirement Process flow
PY08 – Imprest Retirement

Imprest Holder
PY08-1
Complete and
submit imprest
retirement fom
PY08-2 PY08-3
Department
Review and Forward

Head of
endorse imprest retirement form to

retirement form Head of Finance
PY08-6 PY08-7 PY08-10

Accounts Officer
Receive Cash Yes Cash receipting

retirement form retirement? procedures
No
PY08-8
Record retirement
Finance
Head of
PY08-4 PY08-5
PY08-9
Review and Forward to
Review and post End
endorse Accounts Officer
retirement
retirement form for processing
162
Covered Entities
March 2018

1 The Imprest Holder shall complete an imprest retirement form and submit it to the Head of
Department for approval
2 The Head of Department shall review, endorse and submit the imprest retirement form to the
Head of Finance
3 The Head of Finance shall review, endorse and forward the imprest retirement form to the
Accounts Officer to record
4 The Accounts Officer shall direct the Imprest Holder to pay any unspent funds to the Cashier
and submit the receipt with retirement form. The Accounts Officer shall prepare a journal
with the imprest retirement form
5 The Head of Finance shall review and post the journal voucher to update the ledgers

Imprest retirement Journal Debit Credit
posting
Expenditure 2210xxx
Imprest retirement posting (with Debit Credit

cash)
Expenditure 2210xxx
7.5 Payments for Public Debt

In the event that Government planned expenditure exceeds planned revenue for a given period,
Government finances the shortfall through a variety of mechanisms including:
 Borrowing, that is obtaining loans from creditors
 Grants, that is assistance in cash or kind from donors and other development partners
 Debt Instruments, that is financial instruments issued through the Bank of Ghana (BOG) to
raise funds. An example is the Treasury Bill
163
Covered Entities
March 2018
 Investment Income, that is income from the Government investments in profit making
activities
Of the mechanisms listed above, borrowing and public instruments impose repayment obligations
on the Government.
Payments from public debt are processed on the Debt Management Division’s system which is
referred to as the Commonwealth Secretariat Debt Management and Recording System (CS-
DRMS). The CS-DRMS is interfaced the general ledger on GIFMIS.
The processes to be observed in making due repayments are outlined below.
7.5.1 Loan Repayments

Creditor  Submit demand notice for repayment due
 Receive and acknowledge receipt of funds
Minister of Finance  Receive demand notice
 Minute to DMD, Director to initiate

payment processing
 Approve warrant release for loan

repayment
DMD, Director  Validate demand notice
 Prepare payment letter to initiate payment

processing
 Forward payment letter and supporting

documents to Director of Budget to
request for warrant release
 Update ledgers with warrant and notify

PDIU, Director to effect loan repayment
Director of Budget  Receive and review payment letter and

warrant release request
 Issue warrant for loan repayment
PDI, Director  Receive warrant for loan repayment
164
Covered Entities
March 2018

 Receive payment letter and supporting
documents from DMD
 Inform Chief Cashier to process funds

transfer and update the books of account
Chief Cashier  Receive notification to process funds

transfer
 Prepare BTA to process funds transfer
Bank of Ghana  Receive BTA from Chief Cashier
 Process funds transfer for loan repayment
7.5.1.2 Documents (Input/Output)

NAME INPUT OUTPUT
Demand notice 
Letter of payment 
Warrant request memo 
Warrant release notice \ 
Journal Voucher 
165
Covered Entities
March 2018
7.5.1.3 Payments for Public Debts (Loans) Process flow

PY09 – Public Debt Payments (Loans)
Creditor
PY09-1 PY09-12
Issue demand Receive and
End
notice to Minister acknowledge
of Finance receipt of funds
BOG
PY09-11
Process funds
transfer
PDIU, Director <Function>
PY09-10
Notify BOG
process funds
transfer
PY09-8 PY09-9
Receive warrant, Inform Chief
payment letter Cashier to
and supporting process funds
documents transfer
Minister of
Finance
PY09-2
Receive and minute
demand notice to
DMD, Director
DMD, Director
PY09-4 PY09-7
PY09-3
Send letter of Update ledgers and
Validate demand
payment and forward letter of
notice and initiate
demand notice to payment PDIU,
payment
Director of Director for payment
processing
Budget processing
Director of
PY09-6
Budget
PY09-5 Forward warrant

Raise warrant for to DMD, Director
the payment and PDIU,
Director
166
Covered Entities
March 2018

1 When a repayment is due, the Creditor shall submit a demand notice to the Minister of Finance
2 The Minister of Finance shall receive and minute the demand notice to the Director-DMD for
validation and payment
3 The DMD, Director shall receive and validate the demand notice to confirm the repayment
amount and timing is consistent with the agreed repayment schedule. The DMD, Director will
liaise with the Creditor to correct any discrepancies and then initiate payment processing by
preparing payment letter
4 The DMD, Director shall submit the payment letter and supporting documents to the Director
of Budget with a memo requesting for the authorisation to make payment for the repayment
amount on the demand notice
5 The Director of Budget shall receive and review the warrant request and then prepare a
warrant for approval by the Minister of Finance. The Director of Budget shall send the
approved warrant to the DMD, Director copying the PDI Director
6 The DMD, Director on receipt of the warrant shall update the ledgers and forward a request
for payment processing to PDI of CAGD
7 The PDI, Director shall review the request for payment with the its supporting documents and
then instruct the Chief Cashier to effect the funds transfer in favour of the Creditor if the
request is accurate and complete. The PDI will update the books of accounts accordingly.
8 The Chief Cashier on receipt of the approved request for payment, processes a BTA and
submits it to the Bank of Ghana to effect a transfer in favour of the Creditor.
9 The Bank of Ghana will process a funds transfer on receipt of a BTA from the Chief Cashier
in favour of the Creditor
10 The Creditor shall receive the funds and acknowledge receipt of the funds

On Principal repayments Debit Credit
Lender account 4123xxx
Bank Account 3218030
On Interest repayments Debit Credit
Lender account 2411101
Bank Account 3218029
167
Covered Entities
March 2018
On cancellation of loan Debit Credit
Lender account 4123xxx
Grants and reliefs 1311xxx
7.5.2 Payments for Public Debt (Debt Instruments)

Bank of Ghana  Compile list of matured debt instruments
and forward copy to CAG
 Process payment to liquidate mature debt

instruments
Controller and Accountant-General  Receive list of matured debt instruments

and minute to PDIU, Director
PDIU, Director  Analyse and update records with principal

and interest due for matured debt
instruments
 Notify Head of Public Accounts to update

the ledgers with the details of matured
debt instruments
 Inform Chief Cashier to process payments

for matured debt instruments
Chief Cashier  Receive notification to process funds

transfer
 Prepare BTA to process funds transfer
Head of Public Accounts  Update books of accounts with details of

matured debt instruments
168
Covered Entities
March 2018

NAME INPUT OUTPUT
List of matured debt instrument 
Analysis of matured debt instrument 
Journal Voucher 
169
Covered Entities
March 2018
7.5.2.3 Payments for Public Debts (Debt Instruments)

PY10 – Public Debt Payments (Debt Instruments)
Bank of Ghana
PY10-1
Compile details of PY10-7
matured debt Process payments for End
instruments and matured instruments
interest due
Accountant General
Controller and
PY10-2
Receive list of
instruments due for
redemption and
minute to PDIU,
Director
Chief Cashier
PY10-6
Instruct Bank of
Ghana to process
payments for matured
instruments
PDIU, Director
PY10-3 PY10-5
PY10-4
Analyse and update Inform Chief Cashier
Notify Head of Public
records with principal to process payments
Accounts to update
and interest of for matured
ledgers
matured instruments instruments
Head of Public
Accounts
PY10-7
Update ledgers for
End
matured debt
instruments
170
Covered Entities
March 2018

1 The Bank of Ghana shall compile a list of maturing Government debt instruments on a
periodic basis and forward a copy to the Controller and Accountant-General
2 The Controller and Accountant-General shall receive and minute the list of maturing debt
instruments to the PDIU, Director for processing
3 The PDIU, Director shall receive and analyse the maturing debt instruments to determine the
principal and interest repayments due and update the records accordingly. The PDIU, Director
shall inform the Chief Cashier to process payments for mature public debt instruments
4 The Chief Cashier processes a BTA on receipt of the notification and forwards it to the Bank
of Ghana to process payments for the matured debt instruments and notifies the Head of Public
Accounts to update the ledgers with details of the principal and interest due on matured debt
instruments
5 The Bank of Ghana shall process payments in respect of matured debt instruments on receipt
of the Bank Transfer Advice
6 The Head of Public Accounts shall update the ledgers with the details of the principal and
interest due on matured debt instruments

On maturity Debit Credit
Debt Instrument 4112xxx
Accrued Interest 24xxxxx
Accounts payable 4117xxx
On redemption Debit Credit
171
Covered Entities
March 2018
7.5.3 Administering Authority for Government Investments

The Head of Covered Entity as the Administering Authority shall be responsible for
managing Government investments under their Ministry
The Head of Covered Entity shall ensure that copies of annual financial statements of companies
which has Government’s investment is available to CAG and the Minister of Finance
7.6 Payments for Capital Expenditure

Accounts Officer  Prepare payment voucher
 Dispatch cheques to Supplier
 Receive and file receipts from Suppliers

payment processing

payment list
Supplier  Submit invoice and certificate of

completion for payment
 Receive cheque
172
Covered Entities
March 2018
NAME INPUT OUTPUT

Invoice / Certificate of Completion 
Payment voucher 
Cheque 
Payment list 
Receipt 
173
Covered Entities
March 2018
7.6.3 Payments for Capital Expenditure Process flow
PY11- Payments for Capital Expenditure
PY11-1
Supplier
Submit / amend PY11-14

invoice with End Receive payment and
certificate of No issue receipt
completion /for
payment
Accounts Officer
PY11-2 PY11-4 PY11-7 PY11-8

PY11-3
Receive and review Submit to Head of Receive approved invoice Enter / amend details of
Accurate and Yes
invoice and supporting Accounts to approve for and initiate payment PV and submit to Head of
complete
documents payment processing processing Finance
No
PY11-6
PY11-5
Minute invoice and PY11-9 PY11-10
Head of Finance
Receive and endorse

supporting documents to Review PV and supporting Accurate and
invoice for payment
Accounts Officer for schedules complete
processing
payment processing
Yes
PY11-13
PY11-11
Process
Process payment and
cheques / funds
update books of
transfers to
account
relevant Payees
Head of MDA
PY11-12
Approve payment
174
Covered Entities
March 2018

1 The Supplier shall submit an invoice for the amount due with the relevant Certificate of
Completion to the Accounts Officer. The Accounts Officer shall review the invoice and
supporting documents for accuracy and completeness. If the invoices and supporting
documents are accurate and complete, the Accounts Officer shall receive and forward them
to the Head of Finance to approve for payment processing
2 The Head of Finance shall review the invoice and supporting documents and minute them to
an Accounts Office for payment processing
3 The Accounts Officer shall prepare payment vouchers for the approved invoice and forward
to the Head of Finance for review
for approval
5 The Covered Entity Head shall review and approve the payment voucher and forward it to the
6 The Head of Finance shall receive the approved payment voucher and forward it the Accounts
Officer to process payments
7 The Accounts Officer shall prepare cheques and payment list and submit to the Head of
Finance for review
8 The Head of Finance shall review and sign the cheques and payment list if they are accurate
and complete and also funds are available, and for them to the Covered Entity Head for
approval. The cheques are not accurate and complete, the Head of Finance shall return them
to the Accounts Officer to make the necessary corrections and resubmit for approval
9 The Covered Entity Head shall receive, review and countersign the cheques and payment list
and forward them to the Head of Finance for dispatch to payees
10 The Head of Finance shall update the ledger with the payment details and forward the cheques
to the Accounts Officer for issue to the payees
11 The Accounts Officer shall receive and issue the cheques to the respective Suppliers
12 The Payees shall receive their respective cheques and issue a receipt to the Accounts Officer
13 The Accounts Officer shall receive and file the receipts from the Supplier
175
Covered Entities
March 2018
7.6.5 Accounting Entries
Capital Expenditure Journal Debit Credit

Fixed Asset 311xxxx

7.7 Statutory Payments

CAGD  Process warrant for onward release of funds to
Administrator of Statutory/Statutory Bodies
 Instruct Chief Cashier to prepare BTA for transfer of
Statutory Funds.
 Authorise transfers of funds to beneficiary Statutory Bodies
or Administrator of Statutory Funds accounts.
Chief Cashier  Prepare BTA/Swift Instructions for approved warrants for
the transfer of funds.
 Update books of accounts with details of transfer of
Statutory Funds.
Administrator of  Receive the Statutory Funds for their activities or programs.
Statutory/Statutory Bodies
NAME INPUT OUTPUT

Warrant 
Journal Voucher 
176
Covered Entities
March 2018
7.7.3 Statutory Payments Process Flow
PY05 – Statutory Payments
Statutory Funds/
Statutory Bodies
Administrator of
PY12-7
Receive Statutory End
Funds
PY12-1
Receive warrant
from Minister of
Finance
CAGD
PY12-6
PY12-3 Authorize the
PY12-2 transfer of cash/
Instruct Chief
Process warrant funds
Cashier to prepare
BTA
Chief Cashier
PY12-4 PY12-5
Prepare BTA for Update system
transfer of with transfer
Statutory Funds details
177
Covered Entities
March 2018

1 The Controller and Accountant-General (CAG) shall receive warrant for Statutory Payments
from the Minister of Finance and shall process the warrant for onward release of funds. The
CAG shall instruct the Chief Cashier to prepare BTA for the transfer of Statutory Funds.
2 The Chief Cashier shall prepare BTA/Swift Instructions for the approved warrants for the
transfer of funds from the Consolidated Fund
3 The Chief Cashier shall update the books of accounts with the details of the transfer of the
Statutory Funds.
4 The CAG shall authorize the transfers of funds to the beneficiary Statutory Bodies or
Administrator of Statutory Funds accounts.
5 The Administrators of Statutory Funds or the Statutory Bodies shall receive the Statutory
Funds for their activities or programs.
Transfer of funds Debit Credit
Trust fund 2631xxx
7.8 Payments from Project Accounts

Donors  Receive and review proposed Project Budget from
Recipient Entity
 Sign Financing Agreement with Recipient Entity
 Transfer project funds into project designated accounts

agreed at the contracting stage
 Receive project reports from Recipient Entity for review

and evaluation of the project.
Recipient Entity  Prepare budget for prospective project and submit it to

Project Donors
 Raise a Withdrawal Application of project funds and seek

approval from relevant authority.
178
Covered Entities
March 2018

 Submit approved Withdrawal Application to Project
Donors for the release of funds.
 Undertake procurement process to select a consultant or

contractor to carry out the project.
 Receive an invoice or certificate of completion after

delivery of tasks by consultant or contractor.
 Pay consultant/contractor, reconcile project accounts and

submit project reports to Project Donors
BoG / Commercial Bank  Receive project funds from the Project Donors
 Acknowledge receipt and notify all relevant stakeholders
NAME INPUT OUTPUT

Project Budget 
Withdrawal of funds application 
Contract / Purchase Order 
Invoice / Certificate of Completion 
Payment Voucher 
Journal Voucher 
Receipt 
179
Covered Entities
March 2018
7.8.3 Payments from Project Accounts Process flow
PY13 – Payment from Project Accounts
End
Donors
PY13-3 PY13-6
Review and Transfer funds into
approve project project designated
funding account PY13-12
Receive project
report
PY13-5
PY13-4 PY13-9
PY13-2 Submit approved
Raise Withdrawal Receive PY13-10
Submit project Withdrawal
Application and invoice/ Pay supplier/
budget to Donor Application to
seek approval certificate after contractor/
Donor
delivery of consultant
Recipient Entity
tasks
PY13-1
Prepare budget
for prospective
project
PY13-8 PY13-11
Undertake Reconcile
procurement project
process accounts and
submit report
Commercial Bank
PY13-7
BOG /
Receive funds
from Donor and
acknowledge
receipt
180
Covered Entities
March 2018

1 The Recipient Entity shall prepare budget for the prospective project and after agreement with
all relevant stakeholders, the Recipient Entity shall submit the Project Budget to the Project
Donors.
2 The Project Donors shall receive and review the proposed Project Budget from the Recipient
Entity. If the Project Budget is accurate and complete, the Project Donors shall approve the
Project Budget, otherwise the Project Donors shall return the Project Budget to the Recipient
Entity to make the necessary corrections.
3 The Project Donors shall sign Financing Agreement with the Recipient Entity stating the
amount of funds expected, funds breakdown, project life, transfer agreement, etc.
4 The Recipient Entity shall raise a Withdrawal Application of project funds and shall seek
approval from relevant authority.
5 The Recipient Entity shall submit the approved Withdrawal Application to the Project Donors
for the release of funds for the project.
6 The Project Donors shall transfer project funds into the Project Designated Accounts agreed
in the contracting stage (usually with BoG).
7 The BoG shall receive the project funds from the Project Donors and shall acknowledge
receipt and notify all relevant stakeholders.
8 The Recipient Entity shall undertake procurement process to select a consultant or contractor
to carry out the project. The Recipient Entity shall receive an invoice or certificate of
completion after delivery of tasks by consultant or contractor.
9 The Recipient Entity shall pay the consultant/contractor, reconcile the project accounts and
shall submit project reports to the Project Donors.
10 The Project Donors shall receive the project reports from the Recipient Entity for review and
evaluation of the project.
On receipt of Funds Debit Credit
Donor Grants 1311xxx
Bank Account 32xxxxx
On expenditure Debit Credit

Expenditure / Asset 2xxxxxx / 31xxxxx
On payment of liability Debit Credit

Bank Account 321xxxx
181
Covered Entities
March 2018
8 Cash and Bank Management
8.1 Objectives and Purpose

The objective of cash management is to ensure that the Covered Entities effectively manage and
properly record all cash and cash equivalents and to maintain adequate cash balance at all times.
Cash management is therefore the system, procedures and documentation used for the banking of
collections and disbursements of public funds to ensure compliance with the Public Financial
Management Act, 2016 Act 921 and the Financial Administration Regulations (L.I. 1802).

The Public Financial Management Act, 2016 Act 921 and the Financial Administration
Regulations, 2004 (L.I. 1802) set out the governance framework for the management of cash and
bank accounts. The Controller and Accountant-General may also issue guidelines on cash and
bank management to Covered Entities.
The main provisions of the FAA, 2003 and FAR, 2004 with respect to cash and bank management
are summarised below:
v. The Controller and Accountant-General shall open bank accounts for public funds at the
Bank of Ghana or its agents for the purpose of conducting Government financial business,
in currencies as may be determined by the Controller and Accountant-General in
consultation with the Minister responsible for Finance
vi. The Controller and Accountant-General, as the Chief Accounting Officer of Government,
is responsible for the custody of Public and Trust moneys. Any Public Officer performing
custodial duties of Public and Trust moneys is deemed to be acting under delegated
authority of the Controller and Accountant-General
vii. All bank accounts established by the Controller and Accountant-General and designated as
Consolidated Fund Account as well as the balances of allocations from the Consolidated
Fund Account in the Operational bank accounts of Covered Entities shall form part of the
Consolidated Fund
viii. Covered Entity bank accounts can only be opened after authorisation from the Controller
ix. The Controller and Accountant-General, on authorising the opening of a bank account for
an Covered Entity, shall also advise the relevant bank of the conditions under which the
account must be maintained including:
a. A requirement for the bank to provide the Head of the Covered Entity with
regular bank statements
b. The Covered Entity bank account must not be overdrawn
c. The names and specimen signatures of the officers authorised to sign cheques on
the bank account
x. All collections of the public and trust moneys must be supported with official receipts and
must be banked within twenty four hours except in exceptional circumstances to be
identified by the Minister responsible for Finance
xi. All public moneys collected must be banked gross into the designated public fund account.
No disbursements shall be made from the moneys collected unless under an enactment.
182
Covered Entities
March 2018
xii. An Covered Entity, which under the MDA Retentions Act, 2007, has the legal approval to
retain all or a portion of internally generated funds collected must first lodge the gross funds
collected into their respective operational bank account designated by the Controller and
Accountant-General before disbursements are made
8.3 Opening of Bank Accounts

The procedure for opening bank accounts are described in this section
8.3.1 Opening of Cedi Denominated Bank Account

Head of Covered Entity  Submit application to the Controller and Accountant-
General requesting opening of new bank account
 Receive bank account details and submit specimen

signatures of the designated signatories to the CAG
CAG  Receive and review application
 Instruct Bank to open the required account on

approval of the application
 Receive new bank account details from the Bank and

notify the Head of Covered Entity and request
specimen signatures of designated signatories
 Receive and forward specimen signatures of the

designated signatories to the Bank
Bank  Receive instruction to open new bank account from

the CAG
 Open bank account per instructions and submit

account details to the CAG
 Receive specimen signatures of the designated

signatories to the new bank account from the CAG
Chief Cashier  Record the details of the new bank account in the
bank account register
 Request an account code for the new bank account

from the Public Accounts Section and sets it up in the
cash management module
Head of Public Accounts / GIFMIS  Receive request for new account code
- CAGD
 Generate new account code on the chart of accounts
for the new bank account
183
Covered Entities
March 2018
8.3.1.2 Document (Input / Output)

Name Input Output
Application letter 
New account opening instruction letter 
Notification of new bank account details 
Specimen signature form 
Bank account register update 
Chart of account update request 
184
Covered Entities
March 2018
8.3.1.3 Opening of Cedi denominated Bank Account

CB01 – Opening of Cedi denominated Bank Account
Head of MDA
CB01-12
CB01-1 Provide specimen
Submit application letter to CB01-5 CB01-11
signatures of the
CAG requesting for the Receive notification End Receive notification of new
designated signatories
opening of new bank of no approval bank account details
in quadruplicate to the
account CAG
Controller and Accountant
CB01-4 CB01-10 CB01-13

Notify Head of Notify Head of MDA of new Receive specimen
MDA of no bank account details and signatures of designated
approval request specimen signatures signatories to the account
for designated signatories from Head of MDA
General
No
CB01-2 CB01-6 CB01-14

Receive and review CB01-3 Issue a letter instructing the CB01-16
Yes CB01-9 Forward three copies of
application for new bank Approved? bank to open the required Forward details of the
Receive new bank account the specimen
account bank account new bank account to
details signatures to the bank
the Chief Cashier
and file a copy
CB01-15
CB01-7
Bank
CB01-8 Receive and update

Receive instruction
Submit details of the new account with specimen
letter and open new
bank account to the CAG signatures of the
bank account
Chief Cashier
CB01-18 CB01-17
Request for an account Update the bank
code on the chart of register with the details
accounts for the new of the new bank
bank account account
Accounts Section
Head, Public
CB01-20
Generate new account CB01-19
End code and notify the Receive request for new
Chief Cashier and Head account code
of MDA
185
Covered Entities
March 2018

1 The Head of Covered Entity requiring a new bank account submits an application letter to the
Controller and Accountant-General (CAG) with the following information
 The purpose for which the account is required
 The names and positions of the signatories to the account
 The name of the account and the contact persons
 The place where the account is to be opened
 The matrix showing the number of persons required to sign a cheque on the account at a
time
2 The CAG receives and reviews the application to open a new bank account from the Head of
Covered Entity. If the CAG approves the request, the CAG sends an instruction letter to the
bank to open a new bank account with the details supplied by the Head of Covered Entity.
Otherwise the CAG notifies the Head of Covered Entity that the request for a new bank
account is declined
3 The bank opens a bank account as requested by the CAG and notifies the CAG of the account
name and number of the new bank account. The bank shall request for specimen signatures
of the designated signatories to the bank account with the notification of account opening
4 The CAG sends a letter to the Head of Covered Entity with details of the new bank account
and requests for specimen signatures of the designated signatories to the account
5 The Head of Covered Entity on receipt of the notification instructs the designated signatories
to the new bank account to provide their respective specimen signatures on a prescribed form
in quadruplicate. The Head of Covered Entity forwards the specimen signatures of the
designated signatories to the CAG
6 The CAG receives the forwards three copies of the specimen signatures of the designated
signatories to the Bank and files one copy.
7 The Bank receives the specimen signatures and updates the bank account appropriately.
8 The CAG forwards the details of the new bank account to the Chief Cashier to update the
register of bank accounts
9 The Chief Cashier receives the details of the new bank account from the CAG and records the
details in the register of bank accounts. The Chief Cashier then submits a request for an
account code for the new bank account on the chart of accounts from the Public Accounts
Section of the CAGD. The Chief Cashier sets up the new bank account in the cash
management module on receipt of the account code
10 The Public Accounts Section creates a new account code on the chart of account on receipt of
the request in accordance with approved approval processes. The Public Accounts Section
then notifies the Head of the Covered Entity and the Chief Cashier of the new account code
186
Covered Entities
March 2018
8.3.2 Opening of Foreign Currency Denominated Bank Account

Head of Covered Entity  Submit application to the Minister responsible for
Finance requesting opening of new bank account
 Receive bank account details and submit specimen

signatures of the designated signatories to the CAG
Minister responsible for Finance  Receive and review application
 Instruct CAG to open required bank account on

CAG  Instruct Bank to open the required account on

 Receive new bank account details from the Bank and

notify the Head of Covered Entity and request
specimen signatures of designated signatories
 Receive and forward specimen signatures of the

designated signatories to the Bank
Bank  Receive instruction to open new bank account from

the CAG
 Open bank account per instructions and submit

account details to the CAG
 Receive specimen signatures of the designated

signatories to the new bank account from the CAG
Chief Cashier  Record the details of the new bank account in the
 Request an account code for the new bank account

from the Public Accounts Section and set it up in the
cash management module
Head of Public Accounts / GIFMIS  Receive request for new account code
- CAGD
 Generate new account code on the chart of accounts
for the new bank account
187
Covered Entities
March 2018

Name Input Output
Application letter 
New account opening instruction letter 
Notification of new bank account details 
Specimen signature form 
188
Covered Entities
March 2018
8.3.2.3 Opening of Foreign Currency Denominated Bank Account

CB02 – Opening Foreign currency denominated Bank Account
Head of MDA
CB02-12
CB02-1 Provide specimen
CB02-11
Submit application letter to CB02-5 signatures of the
Receive notification of new
CAG requesting for the Receive notification End designated signatories
bank account details
opening of new bank of no approval in quadruplicate to the
account CAG
Minister of Finance
CB02-4
Notify Head of
MDA of no
approval
CB02-2 CB02-6
Receive and review CB02-3 Issue a letter instructing the
application for new bank Approved? CAG to open the required
account bank account
Accountant General
Controller and
CB02-15
CB02-10
CB02-13 Update register of
CB02-7 Notify Head of MDA
Forward copies of bank accounts and
Instruct Bank to open of new account
specimen signatures create new account
bank account details and request
to Bank and file copy code on chart of
specimen signatures
accounts
CB02-14
CB02-8
Bank
CB02-9 Receive and update

Receive instruction
Submit details of the new account with specimen End
letter and open new
bank account to the CAG signatures of the
bank account
189
Covered Entities
March 2018

1 The Head of Covered Entity requiring a new bank account submits an application letter to the
Minister responsible for Finance with the following information
 The purpose for which the account is required
 The names and positions of the signatories to the account
 The name of the account and the contact persons
 The place where the account is to be opened
 The matrix showing the number of persons required to sign a cheque on the account at a
time
2 The Minister receives and reviews the application to open a new bank account from the Head
of Covered Entity. If the Minister approves the request, the Minister sends an instruction letter
to the Controller and Accountant-General (CAG) to open a new bank account with the details
supplied by the Head of Covered Entity. Otherwise the Minister notifies the Head of Covered
Entity that the request for a new bank account is declined
3 The CAG submits a letter to the bank instructing it to open an account in accordance with the
instructions of the Minister.
4 The bank opens a bank account as requested by the CAG and notifies the CAG of the account
name and number of the new bank account. The bank shall request for specimen signatures
of the designated signatories to the bank account with the notification of account opening
5 The CAG sends a letter to the Head of Covered Entity with details of the new bank account
and requests for specimen signatures of the designated signatories to the account
6 The Head of Covered Entity on receipt of the notification instructs the designated signatories
to the new bank account to provide their respective specimen signatures on a prescribed form
in quadruplicate. The Head of Covered Entity forwards the specimen signatures of the
designated signatories to the CAG
7 The CAG receives the forwards three copies of the specimen signatures of the designated
signatories to the Bank and files one copy.
8 The Bank receives the specimen signatures and updates the bank account appropriately.
9 The CAG forwards the details of the new bank account to the Chief Cashier to update the
register of bank accounts
10 The Chief Cashier receives the details of the new bank account from the CAG and records the
details in the register of bank accounts. The Chief Cashier then submits a request for an
account code for the new bank account on the chart of accounts from the Public Accounts
Section of the CAGD
11 The Public Accounts Section creates a new account code on the chart of account on receipt of
the request in accordance with approved approval processes. The Public Accounts Section
then notifies the Head of the Covered Entity and the Chief Cashier of the new account code
190
Covered Entities
March 2018
8.4 Bank Account Closure

The procedure for closing bank accounts are described in this section
8.4.1 Closing of Bank account

Head of Covered Entity  Submit application to the Controller and Accountant-
General requesting closure of a bank account
 Administer balances on bank account as directed by

the CAG
 Receive notification of bank account closure
CAG  Receive and review application
 Direct Head of Covered Entity how to administer the

balances on the bank account
 Instruct Bank to close the bank account
 Receive notification of bank account closure from the

Bank and notify Head of Covered Entity
Bank  Receive instruction to close bank account from the

CAG
 Close bank account per instructions and notify the

CAG
Chief Cashier  Record the details of the closed bank account in the
 Request an account code for the bank account to be

deactivated on the chart of accounts
Head of Public Accounts / GIFMIS  Receive request for deactivation of account code
- CAGD
 Deactivate account code for the closed bank account
191
Covered Entities
March 2018

Name Input Output
Application to close bank account 
Bank reconciliation statement 
Instruction to bank to close account 
192
Covered Entities
March 2018
8.4.1.3 Closure of Bank Account

CB03 – Closure of Bank Account
Head of MDA
CB03-1
Submit application letter CB03-7
to CAG requesting the Receive notification of bank End
closure of a bank account closure
account
Controller and
Accountant
General
CB03-2 CB03-3 CB03-6 CB03-8

Receive and review Issue letter to the bank Receive notification of Notify Chief Cashier to
application to close instructing the closure of account closure and update the register of bank
bank account specified bank account advise Head of MDA accounts
CB03-4
Bank
CB03-5
Receive instruction
Notify CAG of account
letter and close bank
closure
account as advised
Chief Cashier
CB03-9 CB03-10
Update the bank Request for the
account register with deactivation of closed
details of the closed bank account on the
bank account chart of accounts
Accounts Section
Head, Public
CB03-11
Receive request to
deactivate account code
End
and deactivate specified
account on the chart of
account
193
Covered Entities
March 2018

1 The Head of Covered Entity requiring the closure of a bank account submits an application
letter to the Controller and Accountant-General (CAG) requesting for the closure of a bank
account, after confirming that the correctness and completeness of the bank balance and the
use of funds. The application letter shall include:
- The name of the account to be closed
- The account number
- The bank name and location
- The reasons for the closure of the account
- Where any balances remain on the account, how the balances must be administered
on closure of the account. Generally balances on accounts to be closed are
administered as following depending on the source of funds:
 For donor funds, the balances are administered in accordance with the relevant
project agreement
 For internally generated funds, the Covered Entity specifies another account
designated for internally generated funds, which remains in active use, into which
the balance shall be transferred
 For allocations from the Consolidated Fund, where the closure of the bank account
happens before the end of the year, the Covered Entity shall specify another active
account designated for allocations of the Consolidated Fund to receive the
balance. Otherwise, where the closure is at the end of the year the balance shall
be transferred to the Government of Ghana Treasury Main Account
2 The CAG receives and reviews the application from the Head of Covered Entity. The CAG
then issues a letter to the bank instructing it to close the account. The letter will include
instructions on the handling of any balances on the bank account where appropriate.
3 The bank receives the instruction letter from the CAG and closes the specified bank account
in accordance with the CAG’s instructions. The bank then notifies the CAG of the closure of
the specified bank account
4 The CAG receives notification of the closure of the bank account and informs the Head of
Covered Entity accordingly. The CAG then notifies the Chief Cashier to update the register
of bank accounts with the details of the closed bank account
5 The Chief Cashier receives the details of the closed bank account from the CAG and records
the details in the register of bank accounts. The Chief Cashier then submits a request to the
Head of the Public Accounts Section for the account code of the bank account to be
deactivated on the chart of accounts
6 The Public Accounts Section deactivates the account code on the chart of account on receipt
of the request in accordance with approved approval processes. The Public Accounts Section
then notifies the Head of the Covered Entity and the Chief Cashier of the deactivation of the
account code for the closed bank account
194
Covered Entities
March 2018
8.5 Bank Reconciliation

This section describes the procedure for the reconciliation of bank accounts maintained by
Covered Entities
8.5.1 Policies for bank reconciliation
i. Bank reconciliations must be carried out on a monthly basis. The Treasury main account
must be reconciled on a weekly basis due to the large volume of transactions
ii. Bank reconciliations for the previous month must be completed within ten working days
of the next month
iii. Reconciliation staff should not also be responsible for making payments
iv. Cheques, Bank Transfer Advices and Direct Transfer payments which remain
outstanding after six months shall be deemed to have gone stale and the relevant payment
entries must be reversed accordingly
8.5.2 Reconciliation of Central GoG Bank Accounts
The Chief Cashier is responsible for the reconciliation of the central GoG bank accounts which
include the:
 GoG Treasury Main bank account
 GoG Foreign bank accounts
 Central Non-Tax Revenue bank account
 Other GoG bank accounts (e.g. Pensions and Salaries, Debt and Interest Payment
accounts)
The procedure for the reconciliation of central GoG bank accounts is outlined below.

Bank  Extract periodic bank statement and submit to the
Chief Cashier
 Receive notification of errors on bank account, where

relevant, and correct same
Chief Cashier  Receive bank statement

 Notify bank of errors on bank statement
 Review and endorse bank reconciliation statement
 Investigate non-reconciling amounts
195
Covered Entities
March 2018
 Forward copy of endorse bank reconciliation

statement to Deputy Controller and Accountant-
General, Treasury
Accounts Officer, Chief Cashiers  Receive bank statement from Chief Cashier
Office
 Reconcile bank statement to cash book
 Notify Chief Cashier of errors on bank statement
 Notify Chief Cashier of non reconciling items
 Generate bank reconciliation statement and forward
to Chief Cashier for approval
Deputy Controller and  Review and approve bank reconciliation statement

Accountant-General, Treasury
Head, Public Accounts Section  Receive copy of bank reconciliation statement for
periodic financial reporting

Name Input Output
Bank statement 
Notification of errors on bank statement 
Notification of non-reconciling items 
196
Covered Entities
March 2018
8.5.2.3 Reconciliation of GoG Central Bank Accounts

CB04 – Reconciliation of GoG Central Bank Accounts
General, Treasury
Deputy Controller
and Accountant
CB04-19
CB04-18
Forward copy of
Receive and
approve bank
End approve bank
reconciliation
reconciliation
statement to Head,
statement
Public Accounts
CB04-1 CB04-10
Bank
Extract bank Receive

statement and notification and
forward to Chief correct errors as A
Cashier advised
Chief Cashier
CB04-2 CB04-3 CB04-17

CB04-9 CB04-12 CB04-15
Receive and Forward bank CB04-16 Endorse and
Notify bank to Investigate non- Receive and review
review bank statement to Accounts Accurate & Yes forward bank
correct errors on reconciling items bank reconciliation
statement for Officer to reconcile to Complete? reconciliation to
bank statement and resolve statement
completeness cash books DCAG, Treasury
CB04-8
Accounts Officer, Chief Cashier’s
Notify Chief
Cashier of errors
on bank statement
Yes
CB04-4 CB04-7 CB04-11

Office
Receive bank Error on bank No Notify Chief

statement statement? Cashier
No
No
CB04-5 CB04-13 CB04-14

Reconcile CB04-6 Generate bank Submit / amend
A Yes
statement to cash Reconciles? reconciliation bank reconciliation
book statement statement
197
Covered Entities
March 2018

1 The Chief Cashier receives bank statements for a given month from the bank and reviews
them for completeness. If the bank statements are incomplete, the Chief Cashier notifies the
bank to resend the complete set of bank statements. The Chief Cashier then forwards the bank
statements to an Accounts Officer for reconciliation with the cash book
2 The Accounts Officer receives the bank statement and reconciles it to the cashbook. If there
are no non-reconciling differences, the Accounts Officer shall generate and forward a bank
reconciliation statement to the Chief Cashier for approval. If there are non-reconciling
differences, the Accounts Officer shall determine if there are due to errors on the bank
statement or errors in the cash book and notify the Chief Cashier
3 If there are errors on the bank statement, the Chief Cashier shall notify the bank to correct the
errors on the bank statement and resend it for reconciliation to the cashbook. If the non-
reconciling items are from errors in the cash book, the Chief Cashier shall investigate them
and resolve them according to administrative guidelines
4 The Chief Cashier receives the bank reconciliation statement from the Accounts Officer and
reviews it for accuracy and completeness. If the bank reconciliation statement is accurate and
complete, the Chief Cashier endorses and forwards it to the Deputy Controller and
Accountant-General, Treasury for approval. Otherwise, the Chief Cashier returns the bank
reconciliation statement to the Accounts Officer to make the necessary corrections to it and
resubmit for review
5 The Deputy Controller and Accountant-General, Treasury receives the endorsed bank
reconciliation statement from the Chief Cashier, reviews and approves it. The Deputy
Controller and Accountant-General, Treasury forwards a copy of the approved bank
reconciliation statements to the Head of the Public Accounts Section
6 The Head of the Public Accounts Section receives and files the approved bank reconciliation
statement
8.5.3 Reconciliation of the Covered Entity Bank Accounts
The Covered Entity Head of Finance is responsible for the reconciliation of the Covered Entity’s
bank accounts, which includes:
 The Covered Entity Operational bank accounts
 Project bank accounts
 Non-Tax Revenue bank accounts
The guidelines for the reconciliation of bank accounts is described below
198
Covered Entities
March 2018
8.5.3.1Roles and Responsibilities

Bank  Extract periodic bank statement and submit to the
Covered Entity Head of Finance
 Receive notification of errors on bank account, where
relevant, and correct same
Covered Entity, Head of Finance  Receive bank statement
 Notify bank of errors on bank statement
 Review and endorse bank reconciliation statement
 Investigate non-reconciling amounts
 Forward copy of endorse bank reconciliation
statement to Deputy Controller and Accountant-
General, Treasury
Accounts Officer  Receive bank statement from Covered Entity, Head
of Finance
 Reconcile bank statement to cash book
 Notify Covered Entity, Head of Finance of errors on
bank statement
 Notify Covered Entity, Head of Finance of non-
reconciling items
 Generate bank reconciliation statement and forward
to Covered Entity, Head of Finance for approval
Deputy Controller and  Review and approve bank reconciliation statement
Accountant-General, Treasury
Head, Public Accounts Section  Receive copy of bank reconciliation statement for
periodic financial reporting

Name Input Output
Bank statement 
Notification of errors on bank statement 
Notification of non-reconciling items 
199
Covered Entities
March 2018
8.5.3.3 Reconciliation of Covered Entity Bank Accounts

CB05 – Reconciliation of MDA Bank Accounts
General, Treasury
Deputy Controller
and Accountant
CB05-19
CB05-18
Forward copy of
Receive and
approve bank
End certify bank
reconciliation
reconciliation
statement to Head,
statement
Public Accounts
CB05-1 CB05-10
Bank
Extract bank Receive

statement and notification and
forward to MDA, correct errors as A
Head of Finance advised
MDA, Head of
CB05-17
Finance
CB05-2 CB05-3 Endorse and

CB05-9 CB05-12 CB05-15
Receive and Forward bank CB05-16 forward bank
Notify bank to Investigate non- Receive and review
review bank statement to Accounts Accurate & Yes reconciliation to
correct errors on reconciling items bank reconciliation
statement for Officer to reconcile to Complete? DCAG, Treasury
bank statement and resolve statement
completeness cash books through Head of
MDA
CB05-8
Notify MDA, Head
of Finance of
errors on bank
statement
Accounts Officer
Yes
CB05-4 CB05-7 CB05-11

Receive bank Error on bank No Notify MDA, Head
statement statement? of Finance No
No
CB05-5 CB05-13 CB05-14

Reconcile CB05-6 Generate bank Submit / amend
A Yes
statement to cash Reconciles? reconciliation bank reconciliation
book statement statement
200
Covered Entities
March 2018

1 The Covered Entity, Head of Finance receives bank statements for a given month from the
bank and reviews them for completeness. If the bank statements are incomplete, the Covered
Entity, Head of Finance notifies the bank to resend the complete set of bank statements. The
Covered Entity, Head of Finance then forwards the bank statements to an Accounts Officer
for reconciliation with the cash book
2 The Accounts Officer receives the bank statement and reconciles it to the cashbook. If there
are no non-reconciling differences, the Accounts Officer shall generate and forward a bank
reconciliation statement to the Covered Entity, Head of Finance for approval. If there are non-
reconciling differences, the Accounts Officer shall determine if there are due to errors on the
bank statement or errors in the cash book and notify the Covered Entity, Head of Finance
3 If there are errors on the bank statement, the Covered Entity, Head of Finance shall notify the
bank to correct the errors on the bank statement and resend it for reconciliation to the
cashbook. If the non-reconciling items are from errors in the cash book, the Covered Entity,
Head of Finance shall investigate them and resolve them according to administrative
guidelines
4 The Covered Entity, Head of Finance receives the bank reconciliation statement from the
Accounts Officer and reviews it for accuracy and completeness. If the bank reconciliation
statement is accurate and complete, the Covered Entity, Head of Finance endorses and
forwards it to the Deputy Controller and Accountant-General, Treasury through the Head of
Covered Entity.
Otherwise, the Covered Entity, Head of Finance returns the bank reconciliation statement to
the Accounts Officer to make the necessary corrections to it and resubmit for review
5 The Deputy Controller and Accountant-General, Treasury receives the endorsed bank
reconciliation statement from the Covered Entity, Head of Finance, reviews and approves it.
The Deputy Controller and Accountant-General, Treasury forwards a copy of the approved
bank reconciliation statements to the Head of the Public Accounts Section
6 The Head of the Public Accounts Section receives and files the approved bank reconciliation
statement
201
Covered Entities
March 2018
9 Fixed Assets Accounting

Fixed Assets are those assets with a long life (expected to be in use for more than one year), which
the Covered Entity owns and uses in its operations to generate revenue or provide services. Fixed
Assets are not held with the intention of reselling in the Covered Entity’s normal operational
cycle. It should be noted Covered Entities must make reference to the capitalisation policy issued
by the CAGD for guidance on the threshold for recognition of fixed assets as well as the treatment
of donated assets in the books of account.
9.1 Objectives and Purpose

Fixed assets represent a significant part of the expenditure of Covered Entities. The objective of
fixed assets accounting is to provide guidance on accounting for the cost, depreciation, disposal
and valuation of Fixed Assets.
The purpose of fixed asset management is to:
 Ensure that assets are properly identified and tracked throughout their lifecycle
 Confirm that fixed assets are properly accounted for in the Government’s book of accounts
 Promote the uniform application of accounting policies for fixed asset management across all
of Government

The financial regulations and policies for the management of fixed assets are outlined in the Public
Procurement Act, 2003, Public Financial Management Act, 2016 Act 921 and the Financial
Administration Regulations, 2004 (L.I. 1802). The main provisions are summarised below:
i. Acquisition and disposal of fixed assets shall be properly authorised in accordance with
the provisions of the Public Procurement Act, 2003 and any regulations or instructions
issued by the Minister of Finance and / or the Controller and Accountant-General
ii. Each Covered Entity shall maintain a register of the assets it owns or leases. The register
should at a minimum detail the following for each asset:
a. Unique identification code
b. The date of acquisition
c. Location
d. Vendor or Contractor
e. Purchase price or cost
f. Provision for depreciation
g. Details of any additions, including date and cost
h. Details of disposal, including date, method of disposal and disposal price
i. Insurance details
202
Covered Entities
March 2018
IPSAS 17 – Property, Plant and Equipment provides guidance on the recognition, measurement
and derecognition of fixed assets. The main principles are summarised below:
 Recognition
The cost of an item of property, plant and equipment is recognised as an asset if it meets the
following conditions:
 It is probable that future economic benefits or service potential associated with the item
will flow to the Covered Entity
 The cost or fair value of the item can be measured reliably
 Measurement
 An item of property, plant and equipment that qualifies for recognition as an asset shall
be measured at its cost.
 The cost of PPE comprises
a. Its purchase price including import duties and non-refundable purchase taxes,
after deducting trade discounts and rebates
b. Any costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by management
c. The initial estimate of the costs of dismantling and removing the item and
restoring the site on which it is located
 If an asset is acquired through a non-exchange transaction, its costs shall be measured
at its fair value at the date of its acquisition. A non-exchange transaction is one in which
an entity receives resources and provides no or nominal consideration in return.
 Measurement after Recognition
The CAG determines the basis of measurement for fixed assets. The CAG has determined the
cost model as the basis of measurement for fixed assets. An Covered Entity must apply for
approval from the CAG to apply the revaluation model as its accounting policy and shall
consistently apply that policy to an entire class of property, plant and equipment
 Cost Model. The asset is carried at cost less accumulated depreciation and impairment
 Revaluation Model. The asset is carried at a revalued amount, being its fair value at the
date of revaluation less subsequent depreciation, provided that fair value can be
measured reliably. Under the revaluation model, revaluations should be carried out
regularly, so that the carrying amount of an asset does not differ materially from its fair
value at the balance sheet date. If an item is revalued, the entire class of assets to which
that asset belongs should be revalued
 Derecognition
The carrying amount of an asset shall be derecognised (written off) if:
 The asset is disposed, lost or destroyed
 No future economic benefits are expected to the accrue to the Covered Entity from the
use or disposal of the asset
203
Covered Entities
March 2018
 Disclosure
For each class of property, plant and equipment, an Covered Entity must disclose the following:
 Basis for measuring carrying amount;
 Depreciation method(s) used;
 Useful lives or depreciation rates;
 Gross carrying amount and accumulated depreciation and impairment losses;
 Reconciliation of the carrying amount at the beginning and the end of the period, showing:
 Additions;
 Disposals;
 Acquisitions through business combinations;
 Revaluation increases;
 Impairment losses;
 Reversals of impairment losses;
 Depreciation;
 Net foreign exchange differences on translation
9.3 Heritage Assets

Heritage assets are assets which have a significant cultural, historical or environmental value,
such as castles and forts, monuments, archaeological sites and works of art.
IPSAS 17 – Property, Plant and Equipment, does not set out a measurement basis for heritage
assets, however it requires compliance with the disclosure requirements of standard indicated
above in this section.
Where a heritage asset has future economic value or service potential other than its heritage value,
for example a historic building being used for accommodation, the building may be recognised
and measured on the same basis as other buildings.
9.4 Land
The Lands Commission is charged with the management of all public land including any lands
vested in the President or any other lands vested in the Lands Commission by enactment.
The Lands Commission, among its other functions, facilitates the acquisition of land on behalf of
Government.
The Lands Commission Act, 2008 (Act 767) outlines the functions of the Lands Commission to
include facilitation of land for Government, management of land vested in or acquired by the state
in accordance with approved land use plans and registration of title to land and other interests in
land.
204
Covered Entities
March 2018
The process for the acquisition of land is governed by the provisions of State Lands Act, 1962
(Act 125) as amended by State Lands Amendment Act, 2000 (Act 586).
There are two main modes of land acquisition for Covered Entities, depending on whether the
land is owned by Government or not.
Where land is already owned by Government, Covered Entities essentially apply to the Lands
Commission to be granted access to enter onto the land in line with approved land use plans.
On the other hand, where land is not owned by Government, Covered Entities apply for
Government to acquire that land by compulsory acquisition.
Generally, Covered Entities which are funded primarily from the Consolidated Fund(for example,
Ministries) are granted certificates of allocation to enter Government land whereas other Public
Sector entities (for example , Electricity Company of Ghana) are granted leases to enter
Government land.
9.5 Application for allocation of Government land

The process for Covered Entity apply for use of Government land is described below
Head of Covered Entity  Submit application to RCC for allocation

of Government land
 Receive Certificate of allocation / Lease

Agreement
Head of RCC  Receive application
 Constitute Site Advisory Committee to

inspect the land
 Approve and forward application to Lands

Commission
Lands Commission  Receive and review application
 Confirm no encumbrances attached to the

land applied for
 Prepare certificate of allocation and

submit to Minister responsible for Lands
for approval
205
Covered Entities
March 2018
 Issue Certificate of Allocation / Lease

Agreement to Head of Covered Entity
Site Advisory Committee 1  Inspect land and make recommendations

to Head of RCC
Minister responsible for Lands  Receive and approve Certificate of

allocation / Lease Agreement
1
Membership of the Site Advisory Committee includes: The District Chief Executive of the
district in which the land is situated, Representatives from the Ministries of Health, Roads, Works
and Housing, Lands and Forestry, Town and Country Planning Department, Ghana Water
Company, Electricity Company of Ghana, the acquiring Covered Entity and the Lands
Commission (Secretary).
NAME INPUT OUTPUT

Application for allocation of land 
Site Plan 
SAC report 
Certificate of allocation / Lease agreement 
206
Covered Entities
March 2018
9.5.3 Allocation of Government Land
FA08 – Allocation of Government Land
Head of MDA
FA08-1 FA08-15
Submit application for FA08-8 Receive approved
allocation of land to Receive notification End Certificate of
Head of RCC of no approval Allocation / Lease
Agreement
Head of RCC
FA08-6
FA08-3 FA08-9
FA08-2 Receive
Constitute Site FA08-7 Refer approved
Receive and review recommendations
Advisory Committee Approved application to Lands
application and make decision on
to inspect land Commission
application
Site Advisory
Committee
FA08-4
FA08-5
Inspect land and
Submit
confirm availability of
recommendations to
funds to implement
Head of RCC
proposed use of land
Commission
FA08-11 FA08-10 FA08-14

Lands
Prepare Certificate of Receive application Forward approved

Allocation / Lease and confirm no Certificate of
Agreement and encumbrances Allocation / Lease
submit to Minister attached to land Agreement to MDA
responsible for
FA08-13
FA08-12
Minister
Forward approved
Lands
Review and approve

Certificate of
Certificate of
Allocation / Lease
Allocation / Lease
Agreement to Lands
Agreement
Commission
207
Covered Entities
March 2018

1 The Head of Covered Entity submits an application for the allocation of Government land to
the Head of the Regional Coordinating Council
2 The Head of RCC shall receive and review the application. The Head of RCC shall constitute
a Site Advisory Committee to confirm the availability of funds to implement proposed use of
the land and where the land is not serviced, the feasibility of extending services to the land to
facilitate the implementation of the proposed use of the land
3 The Site Advisory Committee shall inspect the land and also confirm that the proposed use of
land is consistent with the approved land use plan and make recommendations to the Head of
the RCC
4 The Head of RCC on receipt of the recommendations of the Site Advisory Committee, shall
make an approval or denial decision on the application for the allocation of land. If the Head
of RCC denies the application, the Head of RCC shall inform the Head of the requesting
Covered Entity of the denial of the application appropriately.
5 If the Head of RCC approves the application, the Head of RCC shall endorse and refer the
application to the Lands Commission for the allocation land to the requesting Covered Entity
6 The Lands Commission on receipt of the application shall confirm that the land is free from
any encumbrances and prepare a Certificate of Allocation or a Lease Agreement, depending
on which Covered Entity is applying for the use of land, and submit it to the Minister
responsible for Lands for approval
7 The Minister responsible for Lands shall receive, review and approve the Certificate of
Allocation or Lease Agreement and return it to the Lands Commission
8 The Lands Commission receives the approved Certificate of Allocation / Lease Agreement
and forwards a copy to the Head of the requesting Covered Entity through the Regional
Coordinating Council
9 The Head of Covered Entity receives the approved Certificate of Allocation / Lease
Agreement and proceeds to enter and use the land for approved purpose
208
Covered Entities
March 2018
9.6 Compulsory Acquisition of Land

The process for the acquisition and allocation to a Covered Entity of land not already owned by
the Government is outlined below
Head of Covered Entity  Submit application to RCC for acquisition

of land
 Receive Certificate of allocation / Lease

Agreement
Head of RCC  Receive and review application
 Constitute Site Advisory Committee to

inspect the land
 Approve and forward application to Lands

Commission
Lands Commission  Receive and review application
 Prepare Executive Instrument and submit

to Minister responsible for Lands for
approval
 Publicise Executive Instrument in Gazette,

newspapers, site and locality
 Receive claims for compensation from

previous owners
 Determine claims due and settle claims

with Previous Owners
 Issue Certificate of allocation / Lease

Agreement to Head of Covered Entity
Site Advisory Committee 1  Inspect land and make recommendations

to Head of RCC
Minister responsible for Lands  Receive and approve Certificate of

Allocation / Lease Agreement
209
Covered Entities
March 2018
Previous Land Owners  Submit claims for compensation to Lands

Commission
Lands Tribunal / High Court  Settle compensation disputes between

Land Commission and Previous Land
Owners
1
Membership of the Site Advisory Committee includes: The District Chief Executive of the
district in which the land is situated, Representatives from the Ministries of Health, Roads, Works
and Housing, Lands and Forestry, Town and Country Planning Department, Ghana Water
Company, Electricity Company of Ghana, the acquiring Covered Entity and the Lands
Commission (Secretary).
NAME INPUT OUTPUT

Application for allocation of land 
Site Plan 
SAC report 
Executive Instrument 
Notice of Acquisition 
Compensation Claims 
Land Title Certificate 
Certificate of allocation / Lease agreement 
210
Covered Entities
March 2018
9.6.3 Process flow for Compulsory Acquisition of Land
FA09 - Compulsory acquisition and Allocation of Land
Head of RCC Head of MDA
FA09-1 FA08-15
Submit application for FA09-8 Receive approved
allocation of land to Receive notification End Certificate of
Head of RCC of no approval Allocation / Lease
Agreement
FA09-6
FA09-3 FA09-9
FA09-2 Receive
Constitute Site FA09-7 Refer approved
Receive and review recommendations
Advisory Committee Approved application to Lands
application and make decision on
to inspect land Commission
application
Site Advisory
Committee
FA09-4
FA09-5
Inspect land and
Submit
confirm availability of
recommendations to
funds to implement
Head of RCC
proposed use of land
Commission
FA09-18 FA09-10
FA09-14
Lands
Prepare acquisition FA09-17 FA09-13 Prepare Executive

Gazette and publicise
plan and determine Receive claims for Receive approved Instrument and
approved Executive
compensation due compensation Executive Instrument submit to Minister of
Instrument.
Claimants Lands for approval
Previous Land
Owners
FA09-16
FA09-15
A Submit compensation
Prepare claims for
claims to Lands
compensation
Commission
responsible for
Minister
FA09-12
Lands
FA09-11
Forward approved
Review and approve
Executive Instrument
Executive Instrument
to Lands Commission
211
Covered Entities
March 2018
FA09 - Compulsory acquisition and Allocation of Land
Head of MDA
FA09-27
Receive approved
Certificate of End
Allocation / Lease
Agreement
Previous Land
Owners
FA09-19
A
Conflicting claims or
dispute claim amount
Tribunal / High
Courts
Lands
FA09-20
Settle disputes
Commission
FA09-21 FA09-23 FA09-26

FA09-22
Lands
Process agreed Prepare Certificate of Forward approved

Complete relevant
compensation Allocation / Lease Certificate of
land registration
amounts to relevant Agreement and Allocation / Lease
processes
parties submit to Minister Agreement to MDA
responsible for
FA09-25
FA09-24
Minister
Forward approved
Lands
Review and approve

Certificate of
Certificate of
Allocation / Lease
Allocation / Lease
Agreement to Lands
Agreement
Commission
212
Covered Entities
March 2018

1 The Head of Covered Entity submits an application for the allocation of Government land to
the Head of the Regional Coordinating Council
2 The Head of RCC shall receive and review the application. The Head of RCC shall constitute
a Site Advisory Committee to confirm the availability of funds to implement proposed use of
the land and also whether the suitable land is not available for use without the acquisition
3 The Site Advisory Committee shall inspect the land to confirm that the proposed use of land
is consistent with the approved land use plan, availability of funds to implement the proposed
use of land and non-availability of suitable land for the proposed purpose except for the
acquisition. The Site Advisory Committee shall make recommendations to the Head of the
RCC on the acquisition of the land.
4 The Head of RCC on receipt of the recommendations of the Site Advisory Committee, shall
make an approval or denial decision on the application for the acquisition of the land. If the
Head of RCC denies the application, the Head of RCC shall inform the Head of the requesting
Covered Entity of the denial of the application appropriately.
5 If the Head of RCC approves the application, the Head of RCC shall endorse and refer the
application to the Lands Commission for the acquisition of the land on behalf of the requesting
Covered Entity.
6 The Lands Commission confirms no encumbrances are attached to the land on receipt of the
approved application and prepare an Executive Instrument.
7 The Lands Commission submits the Executive Instrument to the Minister responsible for
Lands for approval.
8 The Minister responsible for Lands receives and approves the Executive Instrument and
forwards it to the Lands Commission.
9 The Lands Commission gazettes and publicises the Executive Instrument in the newspapers,
on the site of the land, the District Assembly premises and the neighbourhood within which
the land is situated.
10 Any persons with an interested in the land, shall prepare their claims for compensation and
submit them to the Lands Commission.
11 The Lands Commission prepares a plan for the acquisition of the land which includes a
determination of the compensation due on the compulsory acquisition of the land.
12 If the Individuals with an interest in the land dispute the amount of the claim determined by
the Lands Commission or if there is disagreement about the rightful owner(s) of the land, the
Lands Tribunal or the High Courts shall resolve any such disputes.
13 The Lands Commission shall the process compensation payments to the Claimants and
complete the processes for the registration of the title to the land.
14 The Lands Commission shall then prepare a Certificate of Allocation or Lease Agreement as
appropriate and submit it to the Minister responsible for Lands for approval.
15 The Minister responsible for Lands shall receive, review and approve the Certificate of
Allocation or Lease Agreement and return it to the Lands Commission.
213
Covered Entities
March 2018
16 The Lands Commission receives the approved Certificate of Allocation / Lease Agreement
and forwards a copy to the Head of the requesting Covered Entity through the Regional
Coordinating Council
17 The Head of Covered Entity receives the approved Certificate of Allocation / Lease
Agreement and proceeds to enter and use the land for approved purpose

Recognition of asset posting Debit Credit
Land 311xxxx
On payment of compensation Debit Credit
Bank 321xxxx
Recognition of lease due Debit Credit
Lease / Rental 2210xxx
On payment of lease Debit Credit
Bank 321xxxx
214
Covered Entities
March 2018
9.7 Additions to Fixed Assets

Additions to fixed assets can be categorised into two broad classes as follows:
a) Non constructed fixed assets
b) Constructed fixed assets
The process for accounting for additions of fixed assets in both classes are outlined below:
Estates Manager as used in this section of the manual refers to both Estates Manager and the
Transport Manager.
9.7.1 Non Constructed Assets

Storekeeper  Receive fixed asset into stores on a Stores
Receipt Advice (SRA)
 Issue fixed asset to user section on receipt

of approved requisition
Estates Manager  Label asset with identification code and

update asset register with asset’s physical
attributes
 Notify Head of Finance of asset

identification code
Head of Finance  Receive copy of SRA
 Update Asset Register with asset’s

financial attributes
 Review Asset Register
Head of Covered Entity  Approve Asset Register
 Approve issue of asset

NAME INPUT OUTPUT
Purchase Order / Contract 
Certificate of completion / Waybill / Delivery note 
215
Covered Entities
March 2018
NAME INPUT OUTPUT

Invoice 
Approved Requisition for goods 
Asset Register 
216
Covered Entities
March 2018
9.7.1.3 Additions to Fixed Assets (Non Constructed) Process flow
FA01 – Additions to Fixed Assets (Non Constructed Asset)

Department
FA01-5 FA01-8
User
Request for Receive fixed

goods asset
Storekeeper
FA01-1 FA01-2 FA01-7 FA01-9

FA01-6
Receive Issue copy of SRA to Issue asset to Issue copies of SIV
Receive approved
asset into Head of Finance / Dir User to Head of Finance
requisition
stores of Admin Department & Estates Manager
Manager
Estates
FA01-3 FA01-10 FA01-14

Assign code to Update location Physically label End
asset records asset with id code
Finance
Head of
FA01-4 FA01-12
FA01-11
Receive SRA and Submit asset
End Update asset
update asset register to MDA
register
register Head for approval
Head of MDA
FA01-13
Review and
End
approve asset
register
217
Covered Entities
March 2018

1 The Storekeeper shall receive fixed asset into stock from vendor and issue a Stores Receipt
Advice to the Head of Finance and Estates Manager
2 The Estates Manager shall assign a unique identification code to the asset and inform the Head
of Finance of the assigned code
3 The Head of Finance shall receive the Stores Receipt Advice and the notification of the asset
identification code and update the assets register
4 The Storekeeper shall issue the fixed asset to a User Department upon receipt of a duly
approved requisition. The Storekeeper shall issue a Stores Issue Voucher and inform the
Estates Manager
5 The Estates Manager shall update the records with the new location of the asset and physically
label the asset with the unique identification code
6 The Estates Manager shall update the asset register with the new location of the asset.
7 The Head of Finance shall submit the updated asset register to the Head of the Covered Entity
for approval
8 The Head of the Covered Entity shall review and approve the asset register

Fixed assets 311xxxx
Accounts Payable 4117xxx / 312xxxx
9.7.2 Constructed Fixed Assets

Director of Administration  Receive the fixed asset in consultation
with Estates Manager
 Approve asset completion certificate
Estates Manager  Update asset records
 Assign asset code and notify Head of

Finance
Head of Finance  Update asset register
218
Covered Entities
March 2018
 Submit asset register to Head of Covered

Entity for approval
Head of Covered Entity  Approve Asset Register

NAME INPUT OUTPUT
Certificate of completion / Waybill / Delivery note 
Asset Register 
Building Permit and relevant documentation 
219
Covered Entities
March 2018
9.7.2.3 Additions to Fixed Assets (Constructed) Process flow
FA02 – Additions to Fixed Assets (Constructed Assets)

Manager
FA02-1
Project
FA02-2
Oversee
Certify
construction and
completion of
accumulation of
asset
WIP
Administration
Director of
FA02-3
Receive
asset
Manager
Estates
FA02-4
Assign asset code
and notify Head of
Finance
FA02-6
FA02-5
Finance
Head of
Submit asset
Update asset
register to MDA
register and ledger
Head for approval
Head of MDA
FA02-7
Review and
End
approve asset
register
220
Covered Entities
March 2018

1 The Project Manager oversees the construction of the asset and prepares interim completion
certificates to confirm progress of work at predetermined intervals. The Head of Finance
recognises the build-up of WIP in the general ledger based on the interim payment certificates.
2 The Project Manager prepares a final completion certificate and a final takeover certificate
(see PPA manual and section 6.8.2 of this manual for details) to confirm completion of the
construction of the assets
3 The constructed asset shall be formally handed over to the Director of Administration on
completion. The Director of Administration shall receive the asset by approving the relevant
asset completion documentation.
4 The Estates Manager shall assign an asset code to the asset and update the asset records.
5 The Estates Manager inform the Head of Finance via an asset completion form
6 The Head of Finance shall update the asset register and the ledger with the details of the asset
completion form
7 The Head of Finance shall submit the asset register to the Head of Covered Entity for approval
8 The Head of Covered Entity shall approve the asset register

Asset construction posting Debit Credit
Fixed assets WIP account 311xxxx
Contractor 4117xxx
Fixed assets 311xxxx
Fixed assets WIP account 311xxxx
221
Covered Entities
March 2018
9.8 Fixed Asset Transfers

Fixed assets may be transferred within a Covered Entity from one division to another and also
between Covered Entities. To protect a Covered Entity’s assets from inappropriate or
unauthorised use, the Head of the Covered Entity must approve all asset transfers. The Director
of Administration must coordinate the actual transfer of the asset and update the Covered Entity’s
records accordingly.
9.8.1 Intra-Division Transfers of Fixed Assets

Recipient User  Complete and submit an asset transfer
form to the Head of Section for review
Head of Receiving Section  The Head of Section shall review and

endorse the ATF and forward it to the
Head of the Issuing Section
Head of Issuing Section  The Head of the Issuing Section reviews

and endorses the ATF for approval by the
Head of Division
Head of Division  Receive and approve asset transfer form
Estates Manager  Receive approved Asset Transfer Form for

asset transfer
 Coordinate relocation of asset
 Update asset register

NAME INPUT OUTPUT
Asset transfer form 
Approval notification memorandum 
Asset listing 
Asset Register 
222
Covered Entities
March 2018
9.8.1.3 Transfer of Fixed Assets (Intra-Division)

FA03 – Transfer of Assets (Within a Division)
Recipient User
FA03-1
Complete Asset FA03-7
FA03-9
Transfer Form Receive notification End
Receive asset
(ATF) and submit to of no approval
Source User
requesting Section
FA03-2
Head of
Endorse Asset
Transfer Form
(ATF) and submit to
Head of issuing
Section
Head of issuing
FA03-3
Endorse Asset
Section
FA03-6
Transfer Form
Receive notification
(ATF) and submit to
of no approval
Head of Division for
approval
Estates Manager
FA03-8
FA03-10
Receive ATF and
Update asset
No coordinate transfer of End
register and file
approved asset to
ATF
new location
Head of Division/
Section
FA03-4
FA03-5
Receive and Yes
Approve ATF?
review ATF
223
Covered Entities
March 2018

1 A User requiring the transfer of an asset from another section within the same Division
completes an Asset Transfer Form (ATF) and submits to the Head of Section for review
2 The Head of the requesting Section receives and reviews the ATF. The Head of the requesting
Section endorses and forwards the ATF to the Head of the issuing Section
3 The Head of the issuing Section receives and reviews the ATF. The Head of the issuing
Section endorses the ATF and submits to the Head of Division for approval
4 The Head of Division receives and reviews the ATF. The Head of the Division shall make an
approval/denial decision regarding the ATF. If the decision is to approve the ATF, the Head
of the Division shall endorse the ATF with his approval and forward it to the Estates Manager.
If the decision is to deny the ATF, then the Head of the Division shall endorse the ATF with
his denial and return the ATF to both the Issuing User and the Recipient User.
5 If the request for transfer is denied, the Heads of the issuing and requesting Sections receive
notification of the denial from the Head of Division
6 The Estates Manager on receipt of the approved ATF shall coordinate the transfer of the asset
to the approved location as well as re-tag the asset with a new Asset Tag Number.
7 The Recipient User endorses the ATF indicating its receipt of the asset.
8 The Estates Manager shall update the asset register.
9.8.2 Inter Division Transfers of Fixed Assets
When an asset is transferred from one Division to another within the same Department or Agency,
the following procedures will apply.

Head of requesting Division  Submit formal request for the transfer of
asset
Head of Issuing Division  Receive formal request
 Approve formal request within approval

limits
 Endorse and forward request to Head of

Department / Agency for approval
Head of Department / Agency  Review and approve asset transfer

requests
Director of Administration  Receive approval notification memo
224
Covered Entities
March 2018

 Direct Estates Manager to coordinate
transfer of asset
Estates Manager  Receive approval notification memo for

asset transfer
 Update asset records
 Notify Head of Finance
Head of Finance  Receive notification of asset transfer
 Update asset register and ledger
 Submit asset register to Head of

Department/Agency for approval

NAME INPUT OUTPUT
Asset transfer form 
Asset register 
225
Covered Entities
March 2018
9.8.2.3 Inter Division Transfer of Assets

FA04 – Transfer of Assets between Divisions in the same Department / Agency
requesting
Head of
Division
FA04-1 FA04-8
Submit ATF to Head of Receive notification of End
issuing Division no approval
Head of
Division
issuing
FA04-2
Review and review ATF. FA04-7
Endorse and forward to Receive notification of
Head of Administration no approval
Head of Administration
FA04-6
FA04-3 FA04-4
FA04-5 Notify Head of Issuing /
Receive and review Within Yes No a
Approved? Requesting Dept. of no
ATF approval limits
approval
No Yes
FA04-10 FA04-15 FA04-16

FA04-9
Endorse and forward Receive approved ATF Forward ATF to
Approve ATF and
ATF to Head of and notify Head of Estates Manager to
forward to Estates
Department / Agency for Issuing / Requesting coordinate asset
Manager
approval Departments transfer
Head of Department /
FA04-13
a
Inform Head of
Administration of no
approval
Agency
No
FA04-14
FA04-11 FA04-12 Approve ATF and
Yes
Receive and review ATF Approved? forward to Head of
Administration
Manager
FA04-18 FA04-17
Estates
Update asset Coordinate asset

End register with new transfer to new
location details and location and assign
tag number new tag number
226
Covered Entities
March 2018

1 The Head of the requesting Division completes and submits an Asset Transfer Form (ATF)
to the Head of the issuing Division
2 The Head of the issuing Division receives, reviews and the endorses the ATF before
forwarding it the Head of Administration
3 The Head of Administration receives and reviews the ATF. If the ATF is within the approval
limits of the Head of Administration, the Head of Administration shall make an approval or
denial decision otherwise the Head of Administration endorses the ATF and forwards it to the
Head of the Department / Agency for approval.
4 If the ATF is within the approval limits on the Head of Administration and the Head of
Administration approves the ATF, the Head of Administration forwards the approved ATF to
the Estates Manager to coordinate the transfer of the asset and notifies the Heads of the issuing
and requesting Divisions. If the Head of Administration denies the asset transfer request, the
Head of Administration shall notify the Heads of the requesting and issuing Divisions
5 The Head of Department / Agency receives and reviews the ATF from the Head of
Administration. The Head of the Department / Agency shall make an approval or denial
decision on the asset transfer request. If the Head of Department / Agency denies the request,
the Head of Department / Agency informs the Head of Administration and the Head of
Administration in turn informs the Heads of the requesting and issuing Divisions.
6 If the Head of Department / Agency approves the request, the Head of Department / Agency
endorses and forwards the ATF to the Head of Administration to oversee the transfer of the
asset
7 The Head of Administration receives the approved ATF and informs the Heads of the
requesting and issuing Divisions of the approval of the asset transfer request. The Head of
Administration forwards the approved ATF to the Estates Manager to coordinate the transfer
of the asset to the requesting Division
8 The Estates Manager receives the approved ATF, assigns a new asset tag to the asset and
coordinate the transfer of the asset to the new location
9 The Estates Manager updates the asset register with the new location and asset tag details of
the transferred asset
9.8.3 Inter Department / Agency Transfer of Assets within the same Ministry
When an asset is transferred from one Department or Agency to another Department or Agency
within the same Ministry, the following procedures will apply.
227
Covered Entities
March 2018

Head of requesting Department / Agency  Submit formal request for the transfer of
asset
Head of issuing Department / Agency  Receive formal request for transfer of

asset
 Approve formal requests within approval

limits
 Endorse and forward requests above

approval limit to Chief Director for
approval
 Issue approval notification memo to

Director of Administration to complete
transfer of asset
Chief Director  Receive and approve endorsed formal

requests within approval limit

approval limits to the Minister responsible
for the Covered Entity
Sector Minister  Review and approve endorsed requests for

asset transfers from Chief Director
Director of Administration  Receive approval notification memo

transfer of asset
Estates Manager (issuing Department /  Receive approval notification memo for

Agency) asset transfer
228
Covered Entities
March 2018

Estates Manager (requesting Department /  Receive approval notification memo for
Agency) asset transfer
Head of Finance (issuing Department /  Receive notification of asset transfer

Agency)

Entity for approval
Head of Finance (requesting Department /  Receive notification of asset transfer

Agency)

Entity for approval

NAME INPUT OUTPUT
Formal request for asset transfer 
Asset register 
229
Covered Entities
March 2018
9.8.3.3 Inter Department / Agency transfer of assets within the same Ministry
FA05 – Inter Department / Agency asset transfer within same Ministry
Department /
requesting
Head of
Agency
FA05-1
FA05-5
Submit ATF to Head of
a Receive notification of no End
issuing Department /
approval
Agency
No
FA05-18
Department / Agency
FA05-3
FA05-2 Notify Head of requesting
Within FA05-4 A
Receive and review Yes Yes Dept. / Agency and forward
Head of issuing
approval Approved?
asset transfer request approval notification memo to
limits?
Director of Administration
No
FA05-6 FA05-17
Endorse ATF and Receive notification of
forward to Chief Director approval
FA05-16
FA05-8
FA05-7 Forward approval
Within FA05-9
Receive and review Yes notification memo to
Chief Director
approval Approved?
request Head of Department/
limits?
Agency
No No
FA05-11 FA05-10
Endorse request and Notify Heads
a
forward to Sector Department / Agency of
Minister no approval
FA05-15
FA05-12
FA05-13 Forward approval
Sector Minister
Receive and review Yes

Approved? notification memo to
request
Chief Director
No
FA05-14
Notify Chief Director of a
no approval
230
Covered Entities
March 2018
FA05 – Inter Department / Agency asset transfer within same Ministry

(issuing Dept. / Administration
Director of
FA05-20
FA05-19
Direct Estates
A Receive approval
Manager to
notification memo to
coordinate the
transfer asset
asset transfer
Manager
FA05-22
Estates
Agency
FA05-21
Notify Head of
Coordinate transfer
Finance to update
of asset to new
asset register and
location
legders
(requesting
Manager
FA05-26 FA05-27
Agency)
Estates
Dept. /
FA05-25 Update asset Notify Head of

Receive asset at register with tag Finance to update
new location number and asset asset register and
details legders
(requesting
FA05-29
Agency)
Finance
Head of
FA05-28 Submit updated

Dept. /
Update asset asset register to

End
register with asset Head of Dept. /
details Agency for
approval
(issuing Dept. /
FA05-24
FA05-23
Agency)
Finance
Head of
Submit updated
Notify Head of
asset register to
Finance to update End
Head of Dept. /
asset register and
Agency for
legders
approval
231
Covered Entities
March 2018

1 The Head of the Covered Entity which is requesting the transfer of asset shall submit a formal
request to the Head of the Covered Entity which will be issuing that asset
2 The Head of the issuing Covered Entity shall review and approve the request if it is within
the Head of Covered Entity’s approval limits. If the request is approved, the Head of Covered
Entity shall issue an approval notification memorandum to the Estates Officer through the
Director of Administration and copy the Head of the requesting Covered Entity. If the request
is declined, the Head of the issuing Covered Entity shall notify the Head of the requesting
Covered Entity accordingly
3 If the request is above the Head of Covered Entity’s approval limit, the Head of the Covered
Entity shall endorse the request and forward it to the Chief Director for approval
4 The Chief Director shall review and approve the request if it is within the Chief Director’s
approval limits. If the request is approved, the Chief Director shall notify the Head of Covered
Entity of approval for the asset transfer and the Head of the issuing Covered Entity shall issue
an approval notification memorandum to the Estates Manager, through the Director of
Administration with a copy to the Head of the requesting Covered Entity for the asset transfer
to be effected
5 If the request is above the approval limits of the Chief Director, the Chief Director shall
endorse the request and submit it to the Minister responsible for the Covered Entity for
approval
6 The Minister shall receive and review the request for the asset transfer. If the request is
approved, the Minister shall inform the Chief Director of the approval. The Chief Director on
receipt of the notification shall also notify the Head of the issuing Covered Entity
7 If the Minister does not approve the asset transfer request, the Minister shall inform the Chief
Director who in turn shall inform the Head of the issuing Covered Entity. The Head of the
issuing Covered Entity on receipt of the notification shall inform the requesting Head of
8 The Head of the issuing Covered Entity shall issue an approval notification memorandum to
the Estates Manager through the Director of Administration on receipt of the notification of
approval with a copy to the requesting Head of Covered Entity for the asset transfer to be
effected.
9 The Estates Manager on receipt of the approval notification memorandum shall arrange for
the transfer of the asset to the requesting Covered Entity and update the asset records
accordingly.
10 The Estates Manager shall also provide the Head of Finance with the details of the asset
transfer
11 The Head of Finance on receiving the asset transfer details shall update the asset register and
the books of accounts
12 The Head of Finance shall submit the asset register to the Head of Covered Entity for review
and approval
232
Covered Entities
March 2018
13 The Estates Manager at the requesting Covered Entity shall coordinate the receipt of the asset
and assign the asset a unique identification code. The Estates Manager shall also update the
asset records and provide details of the asset to the Head of Finance
14 The Head of Finance on receipt of the asset details shall update asset register and ledgers.
and approval.

On transfer (Issuing Covered Debit Credit
Entity)
Grant Transfers 4117701
Fixed Assets 311xxxx
On receipt (Receiving Covered Debit Credit

Entity)
9.8.4 Inter Covered Entity Transfers of Fixed Assets

When an asset is transferred from one Covered Entity to another, the following procedures will
apply.

Head of requesting Covered Entity  Submit formal request for the transfer of
asset
Head of Issuing Covered Entity  Receive formal request
 Approve formal request within approval

limits

approval limit to Chief Director for
approval
233
Covered Entities
March 2018

 Issue approval notification memo to
Director of Administration to complete
transfer of asset
Chief Director  Receive and approve endorsed formal

request within approval limit

approval limits to the Minister responsible
for the Covered Entity
Minister responsible for Covered Entity  Review and approve endorsed formal
requests from Chief Director
Director of Administration (Issuing Covered  Receive approval notification memo

Entity)
transfer of asset
Estates Manager (Issuing Covered Entity)  Receive approval notification memo for
asset transfer
Estates Manager (Requesting Covered Entity)  Receive approval notification memo for
asset transfer
 Coordinate receipt of asset
Head of Finance (Issuing Covered Entity)  Receive notification of asset transfer

Entity for approval
234
Covered Entities
March 2018

Head of Finance (Receiving Covered Entity)  Receive notification of asset transfer

Entity for approval

NAME INPUT OUTPUT
Formal request for asset transfer 
Asset register 
235
Covered Entities
March 2018
9.8.4.3 Fixed Asset Transfer between Covered Entities Process flow

FA04 – Asset Transfer between MDAs
Head of Issuing MDA
FA04-5
FA04-2
FA04-3 Notify Estates
Receive and review FA04-4 A
Within approval Yes Yes Manager and
request for the transfer Approved?
limits? requesting Head of
of asset
MDA
No No
FA04-6 FA04-11
Endorse request Notify requesting
and forward to End
Head of MDA of
Chief Director no approval
Requesting MDA
Head of
FA04-1
Submit formal request
for asset transfer to
Head of issuing MDA
No
Chief Director
FA04-7 FA04-10
FA04-8
Receive and FA04-9 Notify Head of
Within approval Yes Yes
review request Approved? MDA of approved
limits?
for asset transfer request
No
FA04-12
Endorse request
B
and forward to
Minister for
approval
236
Covered Entities
March 2018
FA04 – Asset Transfer between MDAs
Minister
FA04-13 FA04-16
B Receive and FA04-14 Notify Chief
Yes
review request Approved? Director of
for asset transfer approval
No
Chief Director
FA04-15 FA04-17
Notify requesting Notify Head of
End
Head of MDA of issuing MDA of
no approval approved request
Director of Head of Issuing
FA04-18
MDA
Notify Director of
Admin and Head of
requesting MDA
Administration
FA04-18
Notify Estates
Manager of asset
transfer approval
(Issuing MDA)
FA04-19 FA04-20
Manager
Estates
Coordinate Notify Head of

A
transfer of Finance to update End
approved asset ledgers and asset
to new location register
Estates Manager
(Requesting
FA04-22
FA04-21
(MDA)
Notify Head of
Receive asset
Finance to update End
and update asset
ledgers and asset
register
register
237
Covered Entities
March 2018

16 The Head of the Covered Entity which is requesting the transfer of asset shall submit a formal
request to the Head of the Covered Entity which will be issuing that asset
17 The Head of the issuing Covered Entity shall review and approve the request if it is within
the Head of Covered Entity’s approval limits. If the request is approved, the Head of Covered
Entity shall issue an approval notification memorandum to the Estates Officer through the
Director of Administration and copy the Head of the requesting Covered Entity. If the request
is declined, the Head of the issuing Covered Entity shall notify the Head of the requesting
18 If the request is above the Head of Covered Entity’s approval limit, the Head of the Covered
Entity shall endorse the request and forward it to the Chief Director for approval
19 The Chief Director shall review and approve the request if it is within the Chief Director’s
approval limits. If the request is approved, the Chief Director shall notify the Head of Covered
Entity of approval for the asset transfer and the Head of the issuing Covered Entity shall issue
an approval notification memorandum to the Estates Manager, through the Director of
Administration with a copy to the Head of the requesting Covered Entity for the asset transfer
to be effected
20 If the request is above the approval limits of the Chief Director, the Chief Director shall
endorse the request and submit it to the Minister responsible for the Covered Entity for
approval
21 The Minister shall receive and review the request for the asset transfer. If the request is
approved, the Minister shall inform the Chief Director of the approval. The Chief Director on
receipt of the notification shall also notify the Head of the issuing Covered Entity
22 If the Minister does not approve the asset transfer request, the Minister shall inform the Chief
Director who in turn shall inform the Head of the issuing Covered Entity. The Head of the
issuing Covered Entity on receipt of the notification shall inform the requesting Head of
23 The Head of the issuing Covered Entity shall issue an approval notification memorandum to
the Estates Manager through the Director of Administration on receipt of the notification of
approval with a copy to the requesting Head of Covered Entity for the asset transfer to be
effected.
24 The Estates Manager on receipt of the approval notification memorandum shall arrange for
the transfer of the asset to the requesting Covered Entity and update the asset records
accordingly.
25 The Estates Manager shall also provide the Head of Finance with the details of the asset
transfer
26 The Head of Finance on receiving the asset transfer details shall update the asset register and
the books of accounts
and approval
238
Covered Entities
March 2018
28 The Estates Manager at the requesting Covered Entity shall coordinate the receipt of the asset
and assign the asset a unique identification code. The Estates Manager shall also update the
asset records and provide details of the asset to the Head of Finance
29 The Head of Finance on receipt of the asset details shall update asset register and ledgers.
and approval.

On transfer (Issuing Covered Debit Credit
Entity)
On receipt (Receiving Covered Debit Credit

Entity)
9.9 Depreciation
Depreciation is the decline in the value of a fixed asset over an accounting period because of
normal usage, physical deterioration due to wear and tear and age.
The Controller and Accountant-General has established a depreciation policy to ensure uniformity
in the application of depreciation across the public sector and also to comply with International
Public Sector Accounting Standards. The depreciation policy establishes the depreciation method,
definition of the depreciable amount of an asset as well as the depreciation rate applicable for an
asset.
Covered Entities shall apply the straight-line method of depreciation and the depreciation rates
advised by the Controller and Accountant-General. This method of depreciation allocates the cost
of an asset less its residual value evenly over the expected useful life of the asset.
The depreciation rates in use for the major categories of assets are as detailed below:
Refer to the depreciation policy for the depreciation rates for minor categories of assets.
Asset Class Depreciation rate Expected useful life

Barracks 50 years
2%
Bungalows 50 years
2%
239
Covered Entities
March 2018

Clinics 50 years
2%
Day Care Centre 50 years
2%
Destitute Homes 50 years
2%
Flats 50 years
2%
Health Centres 50 years
2%
Homes of Aged 50 years
2%
Hospitals 50 years
2%
Markets 40 years
2.5%
Office Buildings 50 years
2%
Palace 50 years
2%
School Buildings 50 years
2%
Slaughter House 50 years
2%
Sports Stadium 50 years
2%
Workshop 50 years
2%
Furniture and Fixtures 14.3% 7 years
Apron and ramp Areas 30 years
3.33%
Bridges 50 years
2%
Car/Lorry Park 30 years
3.33%
Cemeteries 40 years
2.5%
Drainage 13 years
7.69%
Electrical Networks 35 years
2.86%
Feeder Roads 40 years
2.5%
Harbour and Landing Sites 50 years
2%
Highways 40 years
2.5%
Infrastructure Assets 20 years
5%
Irrigation Systems 13 years
7.69%
Landscaping and Gardening 10 years
10%
Road Signals 10 years
10%
Runways 30 years
3.33%
Sewers 25 years
4%
Toilets 40 years
2.5%
240
Covered Entities
March 2018

Urban Roads 40 years
2.5%
Utilities Networks 30 years
3.33%
Water Systems 40 years
2.5%
Computer Software 7 years
14.3%
14.3%
14.3%
Heritage Assets 50 years
2%
Intangible Fixed Assets 20 years
5%
Intangible non-produced 20 years
5%
assets
Other naturally occurring 5 years
20%
assets
Subsoil assets 5 years
20%
Land 100 years
1%
Accessories 5 years
20%
Agricultural Machinery 10 years
10%
Air Condition 10 years
10%
Communication Equipment 5 years
20%
Computers and Accessories 7 years
14.3%
Motor Vehicles 7 years
14.3%
Airplanes 40 years
2.5%
Motor bikes and bicycles 5 years
20%
Ships and vessels 35 years
2.86%
Trains 25 years
4%
Oils and lubricants 5 years
20%
Printed Materials and 5 years
20%
Stationery
Strategic stocks 5 years
20%
Specialised stock 5 years
20%
241
Covered Entities
March 2018
9.9.1 Accounting for Depreciation

The process for calculating and updating the ledgers with depreciation at period ends is described
below:

Accounting Officer  Complete and submit asset retirement
form
Head of Finance  Receive asset retirement form
 Review and approve recommendation for

retirement of asset

NAME INPUT OUTPUT
Depreciation policy 
Depreciation calculation schedule 
Journal Voucher 
Asset Register 
242
Covered Entities
March 2018
9.9.1.3 Accounting for Depreciation
FA06 – Depreciation
Accounting Officer
FA06-1 FA06-5
Calculate FA06-2 Make necessary
depreciation for each Submit to Head of corrections to
asset on the asset Finance for review depreciation
register computations
No
Head of Finance
FA06-3
FA06-6
Receive and review FA06-4
Update ledgers with
depreciation Accurate and Yes End
depreciation
computations and complete?
computed
supporting schedules
243
Covered Entities
March 2018

1 The Accounting Officer prepares a schedule of depreciation amounts for each asset on the
asset register at the end of each accounting period and submits it to the Head of Finance for
review
2 The Head of Finance receives and reviews the schedule of depreciation amounts for accuracy
and completeness. If the schedule is not accurate and complete, the Head of Finance directs
the Accounting Officer to make the necessary corrections and resubmit the schedule for
review
3 If the schedule is accurate the complete, the Head of Finance directs the Accounting Officer
to prepare a journal to update the ledger
4 The Accounting Officer generates a general voucher per the approved depreciation schedule
and submits it to the Head of Finance for review.
5 The Head of Finance receives and reviews the journal voucher for accuracy and completeness.
If the journal voucher is not accurate and complete, the Head of Finance directs the
Accounting Officer to make the necessary corrections and resubmit the journal voucher for
review, otherwise the Head of Finance posts the journal voucher to update the books of
account.
9.9.1.4 Accounting entries

Period end Depreciation Debit Credit
Depreciation of fixed assets for the 2311xxx

period
Accumulated depreciation account 3xxxxxx
244
Covered Entities
March 2018
9.10 Fixed Asset Retirement

Retirement of fixed assets involves the physical removal of a capital asset from usage and the
removal of the corresponding value in the asset ledger account and register.
When a fixed asset has to be retired, the User Department shall complete a fixed assets retirement
form and submit it to Estate Manager.

User Department  Complete and submit asset retirement
form
Director of Administration  Receive asset retirement form
 Review and approve recommendation for

retirement of asset
Estates Manager  Receive asset retirement form
 Inspect asset to confirm usability
 Arrange for repair of asset if it is still

usable
 Recommend retirement of asset if it is

unusable
Head of Finance  Receive and review asset retirement form

Entity for approval
Head of Covered Entity  Review and approve asset register
NAME INPUT OUTPUT

Asset retirement form 
Asset Register 
245
Covered Entities
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9.10.3 Fixed Asset Retirement Process flow

FA05 – Fixed Asset Retirement
Head of MDA
FA05-11
Approve asset End
register
Finance
Head of
FA05-10
FA05-8 FA05-9
Submit asset
Receive asset Update asset
register to Head of
retirement form register and ledger
MDA for approval
Administration
Director of
FA05-7
FA05-11 Approve asset
FA05-2
Direct Estates retirement, arrange
Receive asset
Manager to for asset disposal
retirement form
inspect asset and inform Head of
Finance
FA05-6
Endorse
Estates Manager
retirement form
and recommend
retirement
Yes
FA05-5
FA05-3
FA05-4 Arrange for
Inspect asset No End
Unusable? repair of
in question
asset
Department
FA05-1
User
Complete and
submit asset
retirement form
246
Covered Entities
March 2018

1 A User Department shall complete and submit an asset retirement form to the Director of
Administration requesting for an asset to be retired
2 The Director of Administration shall receive the request and forward it to the Estates Manager
to perform an inspection of the asset in question
3 The Estates Manager shall receive and review the asset retirement form and arrange for an
expert to inspect the asset
4 If the asset is found to be usable with reasonable repairs, the Estates Manager shall arrange
for the repair of the asset.
5 If the asset is found to be unusable, the Estates Manager shall endorse the asset retirement
form for approval according to administrative guidelines and submit it to the Director of
Administration
6 The Director of Administration shall approve the retirement of the asset and arrange for the
disposal of assets per administrative guidelines. The Director of Administration shall send a
copy of the asset retirement form to the Head of Finance to update the fixed assets register
7 The Head of Finance shall receive the approved asset retirement form and update the asset
register as well as the ledger
8 The Head of Finance shall submit the asset register to the Head of Covered Entity for approval
9 The Head of Covered Entity shall review and approve the asset register
Derecognition of asset posting Debit Credit
Disposal of Assets with asset’s net 22xxxxx

book value
Fixed assets with asset’s net book 311xxxx

value
247
Covered Entities
March 2018
9.11 Fixed Asset Disposal

A Covered Entity may dispose of assets after they have been retired from use and due
authorisation has been given for their disposal.

Estates Manager  Prepare memo recommending disposal of
retired assets and submit to the Director of
Administration for approval
 Dispose of assets per administrative

guidelines and at no less than valuation on
receipt of approval
Director of Administration  Endorse memo and forward to Head of

Covered Entity for approval
 Receive notification of approval of

valuation report and notify Estates
Manager to arrange for sale of retired
assets
Head of Covered Entity  Receive and approve memo
 Endorse and forward memo to Chief

Director for approval
 Constitute Board of Survey
 Receive and valuation report
 Advise Director of Administration to

arrange for the disposal of retired assets
Chief Director  Receive and approve memo
 Submit proposal to dispose of retired fixed

assets to the Minister responsible for
Minister responsible for Covered Entity  Receive and approve proposal to dispose
of fixed assets
248
Covered Entities
March 2018

Board of Survey  Assess and value retired assets
 Prepare and submit valuation report to

Director of Administration
NAME INPUT OUTPUT

Memo recommending sale of retired assets 
Proposal for sale of retired assets 
Asset valuation report 
249
Covered Entities
March 2018
9.11.3 Disposal of Fixed Assets Process flow
FA06 – Fixed Assets Disposal
Manager
Estates
FA06-1
FA06-7
Prepare memo
Receive notification of no End
recommending sale of
approval
retired fixed assets
Administration
Director of
FA06-2 FA06-6
Endorse memo and Receive notification of no
forward to Head of MDA approval and inform
for approval Estates Manager
FA06-5
FA06-3
FA06-4 Notify Director of
Receive and review No
Head of MDA
Approved? Administration of no
memo
approval
Yes
FA06-8
Endorse memo and
forward to Chief Director
for authorisation to sell No
retired fixed assets
FA06-9
FA06-10
Receive and review
Chief Director
Approved?
memo
Yes
FA06-11
Submit proposal for
A
sale of retired fixed
assets to Minister
for approval
250
Covered Entities
March 2018
FA06 – Fixed Assets Disposal
Head of MDA Chief Director responsible for
FA06-12
Minister
MDA
Review and
A
approve proposal
for sale of retired
fixed assets
FA06-13
Notify Head of MDA
of approval to sell
retired assets
FA06-14
Receive notification FA06-19
FA06-18
of approval and Approve and notify Dir of
Receive and
form Board of Admin to coordinate sale
review report
Survey to value the of assets
assets
Board of
Survey
FA06-16 FA06-17
FA06-15 Assess and Submit valuation
Receive notification value fixed report to Head of
assets MDA
Administration
Director of
FA06-20
Direct Estates
Manager to
proceed with sale
of assets
FA06-21
Manager
Estates
Dispose of assets
per administrative
End
guidelines and at
no less than
valuation amount
251
Covered Entities
March 2018

1 The Estates Manager shall prepare and submit a memo to the Director of Administration
recommending the disposal of the retired fixed assets
2 The Director of Administration shall receive and review the memo. If the Director of
Administration agrees with the sale of the retired fixed assets, the Director of Administration
shall endorse the memo and forward it to the Head of Covered Entity for approval
3 The Head of Covered Entity shall receive and review the memo from the Director of
Administration. The Head of Covered Entity shall approve the memo and forward it to the
Chief Director responsible for the Covered Entity for authorisation to dispose of the retired
fixed assets. If the Head of Covered Entity does not approve of the sale of the retired assets,
the Head of Covered Entity shall not approve the request and will notify the Director of
Administration not to proceed with the disposal of the retired assets.
4 The Director of Administration shall notify the Estates Manager not to dispose of the fixed
assets
5 The Chief Director shall receive and review the memo from the Head of Covered Entity. If
the Chief Director approves the request, the Chief Director shall prepare a proposal for the
sale of the retired fixed assets and submit it the Minister responsible for the Covered Entity
for authorisation to proceed with the sale of the assets. The Chief Director shall notify the
Head of Covered Entity if the request is not approved
6 The Minister responsible for the Covered Entity shall receive and review the proposal to
dispose of retired fixed assets from the Chief Director. If the Minister approves the request,
the Minister shall approve the proposal and notify the Chief Director and the Chief Director
shall notify the Head of Covered Entity of the approval to proceed with the disposal of the
retired assets. Otherwise the Minister shall inform the Chief Director, who will in turn inform
the Head of Covered Entity not to dispose of the retired fixed assets
7 The Head of Covered Entity shall constitute a Board of Survey on receipt of the notification
of approval to proceed with the sale of the retired fixed assets
8 The Board of Survey will assess the value of the retired assets to be disposed of and prepare
a valuation report. The Board of Survey shall submit the valuation report to the Head of
9 The Head of Covered Entity shall review and approve the valuation report and notify the
Director of Administration to coordinate the sale of the assets
10 The Director of Administration shall instruct the Estates Manager to dispose of the assets in
line with administrative guidelines on receipt of the notification to proceed with the sale of
the assets
11 The Estates Manager shall arrange for the sale of the assets per administrative guidelines and
at no less than the valuation amounts of the assets
252
Covered Entities
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On disposal of asset Debit Credit
Other revenue 14xxxxx
On receipt of payment Debit Credit
Bank 3212xxx
9.12 Fixed Asset Register

The Estates Manager has the responsibility of tracking all additions, depreciation and disposal of
all items of fixed assets owned by the Covered Entity.
The assets of the Covered Entity can be categorised into the following broad classifications
 Infrastructure Assets: This comprises asset that is part of the basic physical systems of the
overed Entity, such as roads
 Community Asset: This comprises assets that contribute to the community wellbeing such as
libraries and Police Stations
 Plant and Equipment: These are assets used in the normal course of operations such as
vehicles, computers and furniture
 Investment Assets: These assets acquired for economic gain such as undeveloped land, office
and shopping centres
 Heritage Assets: These are assets of cultural value such as works of art, historically significant
buildings and items
The Estates Manager and the Head of Finance shall maintain a detailed fixed asset register
containing the following information for all fixed assets. The Estates Manager is responsible for
maintaining the data on the physical attributes of an asset, such as date of acquisition, location,
unique identification number. The Head of Finance is responsible for the maintenance of the
financial attributes of an asset such as the rate of depreciation and the periodic depreciation
charge.
253
Covered Entities
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ASSET REGISTER HEADING DESCRIPTION
Date of acquisition/completion: The date when the relevant asset is capitalised,

either by transfer from WIP, purchase from
vendor or issue from stores as explained
above.
Year of commission The year in which the relevant asset is put into
use
Unique identification code: A unique nine character alpha numeric code

for each asset. Details of the structure of the
code are outlined in the next section.
Classification of the asset: A classification of the asset into one of the

broad categories of fixed assets outlined
above
Description of asset A description of the nature of the fixed asset
Cost of asset The total cost incurred in bringing the asset

into its present state
Estimated useful life of asset The approved estimated useful list of the fixed
asset
Location of asset The present location of the fixed asset, i.e. Sub
District Office and Department where the
fixed asset is presently located
Rate of Depreciation The depreciation rate to be applied to the asset

as per Controller and Accountant-General’s
approved depreciation policy for assets in the
relevant category
Depreciation charge The amount of depreciation applied in a

period based on the approved depreciation
rate
Accumulated depreciation The accumulated depreciation amounts

applied to the asset to date
254
Covered Entities
March 2018
ASSET REGISTER HEADING DESCRIPTION
Carrying amount The cost of the asset less accumulated

depreciation
9.12.1 Structure of the Fixed Assets Code

Each item of property, plant and equipment recorded on the fixed assets register is categorised
according a fixed asset categorisation framework and assigned a unique identification code
(which is made up of eleven or twelve alpha numeric characters) for physical identification
purposes.
The coding structures for the two types of fixed asset codes are described below:
9.12.1.1 Fixed Asset Category (Financial Reporting)

Fixed assets are classified under three categories for financial reporting purposes. The first level
category of classification for fixed assets is referred to as the main category. The second third
levels are known as the major and minor categories respectively.
The table below illustrates the structure of the asset categorisation framework:
Main Category Major Category Minor Category

Barracks Barracks
Buildings and Structures
Bungalows/Flats Bungalows
Bungalows/Flats Flats
Clinics Clinics
Day Care Centre Day Care Centre
Furniture and Fittings Bed
Furniture and Fixtures
Furniture and Fittings Bench (Wooden, etc.)
Furniture and Fittings Bookshelves/Bookcase
Furniture and Fittings Chair (Office, Plastic, Cane, Etc.)
Furniture and Fittings Chest of Drawers
9.12.1.2 Fixed Asset Code (Physical Identification)

The asset code for physical identification consists of four segments. The four segments are
described in the table below:
Covered Entity Department Asset Type Unique
Identification Code
XXX(X)1 XXX XX XXX
The Covered Entity portion of code is expandable depending on the abbreviation of a given Covered Entity
255
Covered Entities
March 2018
Covered Entity
This section of the code identifies the Covered Entity, which owns the relevant fixed asset. It is
represented by the Covered Entity’s abbreviation. It is thus a three or four character code
depending on the length of the Covered Entity’s abbreviation. This section of the fixed asset code
is expandable based on the length of the Covered Entity’s abbreviation. Examples are given in
the table below:
Code Covered Entity

MOF Ministry of Finance
MoE Ministry of Education
MoD Ministry of Defence
MOFA Ministry of Food and Agriculture
MOTI Minister of Trade and Industry
Department
This segment of the code describes the Department or Section of the Covered Entity where the
asset is located. It is made up of three alphabetic characters. Examples are given in the table
below:
Code Description
ADM Administration
ACS Accounts
EST Estates
LEG Legal
PRO Public Relations
Asset Type
This segment of the code describes the asset type. It consists of two alphabetic characters.
Examples are as shown in the table below:
Code Description
FF Furniture and Fittings
OE Office Equipment
VH Vehicle
PM Plant and Machinery
Unique Asset Identifier

This segment of the code denotes the unique serial number of the asset. It consists of three numeric
characters (from 001 to 999) for each asset category.
256
Covered Entities
March 2018
To illustrate the coding structure described above, a desk in the Ministry of Finance’s Accounts
Office may have the code MOF/ACS/FF/001 and will have the following meaning:
Covered Entity Department Asset Type Unique

Identification Code
MOF ACS FF 001
Ministry of Finance Accounts Furniture and Fittings Serial Number
257
Covered Entities
March 2018
10 Inventory (Stores) Accounting
10.1 Objective
The purpose of inventory management is to establish general systems and procedures to be
followed for the identification, measurement and presentation of Covered Entity’s supplies of
goods and equipment as well as the appropriate documentation to be used.
The objective of the inventory management system is to maintain control over the acquisition,
custody, valuation, issue, disposal and accounting for Government stores.

Section 52 of the Public Financial Management Act, 2016 Act 921 and Financial Administration
Regulations respectively provide the legal guidelines for the management of Government stores.
The main provisions are summarised below:
i. The Storekeeper shall be responsible for receipt, custody and issue of stores
ii. The Storekeeper maintain proper records in respect of stores
iii. The Head of Covered Entity retains overall responsibility for management of stores held
within the Covered Entity and for the due performance of duties by subordinate staff in
relation to stores.
The provisions of IPSAS 12 – Inventories shall be applied in accounting for stores. The main
provisions are summarised below:
 Recognition
Inventories are defined as assets:
o In the form of materials or supplies to be consumed in the production process;
o In the form of materials or supplies to be consumed or distributed in the rendering
of services;
o Held for sale or distribution in the ordinary course of operations; or
o In the process of production for sale or distribution.
 Measurement
Inventories are measured at the lower of cost and net realisable value except when inventories are
acquired through a non-exchange transaction in which case it shall be measured at the fair value
at the date of acquisition.
Inventories, which are held for:
 Distribution at no or nominal charge or
 Consumption in the production of goods to be distributed at no or nominal charge
Shall be measured at the lower of cost and current replacement cost.
258
Covered Entities
March 2018
The foregoing notwithstanding, Covered Entity shall apply the weighted average method in the
measurement of inventory. Express approval must be given by the Controller and Accountant-
General for the application of a measurement basis other the weighted average method by an
Covered Entity.
 Derecognition of Inventories (Recognition as expense)
When inventories are sold, exchanged or distributed, the carrying amount of those inventories
shall be recognized as an expense in the period in which the related revenue is recognised.
If there is no related revenue, the expense is recognised when the goods are distributed or the
related service is rendered.
Additionally, IPSAS 12- Inventories, provides guidance on cost formulas to allocate costs to
inventories. IPSAS 12 recommends the use of First-In First-Out or Weighted Average Costs
formulas for the attribution of costs to inventories. The notable exception being cost of
inventories, which are unique and not ordinarily interchangeable as well as goods and services
produced specifically for identified projects, in which case the specific costs incurred shall be
assigned to inventories.
10.3 Issue of Goods

User Department  Submit approved requisition for goods to
Storekeeper
 Receive requested goods
Storekeeper  Receive approved requisition for goods
 Issue goods to User Department if they are

in stock
 Update stores records
NAME INPUT OUTPUT

Approved Requisition 
259
Covered Entities
March 2018
10.3.3 Issue of Goods Process flow
IV01 – Issue of Goods

Department
IV01-1
Submit approved
User
IV01-7
requisition for End
Receive goods
goods
IV01-2 IV01-5 IV01-8

IV01-3 IV01-6
Receive approved Yes Complete Stores Update
Items in stock Issue goods
Storekeeper
requisition Issue Voucher ledger
No
IV01-4
Predefined
procurement
process
260
Covered Entities
March 2018

1 The User Department shall submit an approved requisition for goods to the Storekeeper
following the procedures outlined above in this manual
2 The Storekeeper shall receive the approved requisitions and issue the requested goods to the
User Department if the items requested are in stock otherwise the Storekeeper shall batch all
approved requisitions and initiate procurement when the reorder level is reached as described
under Procurement of Goods and Services
3 The Storekeeper shall complete a copy of the stores issue voucher to the recipient of the
requested goods
4 The Storekeeper shall advise the Finance Unit of issued items
5 The Finance Unit shall compute and update the ledgers with the value of the stock issued
On issue of inventory Debit Credit
Use of goods 2210xxx
Inventory 3xxxxxx
10.4 Intra Covered Entity sale of Stock

Head of requesting Cost Centre  Submit approved requisition for goods and
request letter to Head of issuing Cost
Centre
 Receive invoice and issue payment for

requested goods, if required, and obtain
receipt
Head of issuing Cost Centre  Receive and endorse request for goods
 Forward endorsed request for goods to

Head of Department for approval
Head of Department  Receive and approve request for goods
261
Covered Entities
March 2018

 Forward approved request for goods to
Head of Finance
Head of Finance  Receive invoice for requested goods
 Receive and issue receipt for payment
 Update ledgers
Storekeeper  Receive approved requisition, invoice and

receipt (if applicable) for goods
 Issue goods to requesting Department if

they are in stock
NAME INPUT OUTPUT

Request letter for goods 
262
Covered Entities
March 2018
10.4.3 Intra Covered Entity sale of Stock
IV04 – Intra MDA sale of stock
Cost Centre
requesting
IV04-1
Head of
IV04-12
Submit approved IV04-8 IV04-9
Receive requested
requisition and request Receive invoice and Submit payment to End
goods from
for goods letter to Head process payment Head of Finance
Storekeeper
of issuing Cost Centre
issuing Cost
IV04-2
Head of
Centre
Receive and endorse

request for goods.
Forward to Head of
Department for
approval
Department
Head of
IV04-3
Review and approve
request for goods
IV04-7 IV04-10
IV04-4 IV04-5
Head of Finance
Generate invoice and Receive payment and

Receive approved Payment Yes
submit to the Head of issue receipt to Head of
request for goods required?
requesting Cost Centre requesting Cost Centre
No
IV04-6
Update ledgers and
forward approved
request to Storekeeper
to issue goods
Storekeeper
IV04-11
Receive approved
request and issue
goods to requesting
Cost Centre
263
Covered Entities
March 2018

1 The Head of the requesting Cost Centre shall submit an approved requisition for goods with
a request letter to the Head of the issuing Cost Centre
2 The Head of the issuing Cost Centre shall receive and endorse the request for goods from the
Head of the requesting Cost Centre and forward it to the Head of Department for approval
3 The Head of Department shall receive and review the request for goods. The Head of
Department shall approve and forward the request for goods to the Head of Finance for
processing
4 The Head of Finance shall receive the approved request for goods and consider whether per
administrative rules the goods must be paid for by the requesting Cost Centre. If the goods
are not to be paid for, the Head of Finance shall update the ledgers and endorse the request to
the Storekeeper to issue the requested goods.
5 If the goods must be paid for, the Head of Finance shall raise an invoice for the requested
goods and forward it to the Head of the requesting Cost Centre to make payment
6 The Head of the requesting Cost Centre shall make payment on receipt of the invoice to the
Head of Finance
7 The Head of Finance shall receive the payment and issue a receipt to the Head of the
requesting Cost Centre. The Head of Finance shall update the ledgers and endorse the request
for goods together with the invoice and receipt for payment to the Storekeeper to issue the
requested goods
8 The Storekeeper shall receive the approved request from the Head of Finance and issue the
goods to the requesting Cost Centre on a Stores Issue Voucher
9 The Storekeeper shall update the stock records with the details of the issued goods
Inventory 3xxxxxx
On sale of asset Debit Credit
264
Covered Entities
March 2018
Bank 3212xxx
10.5 Inter-Covered Entity Sale of Stock

Head of requesting Department  Submit approved requisition for goods and
request letter to Head of issuing
Department
 Receive invoice and issue payment for
requested goods, if required, and obtain
receipt
Head of issuing Department  Receive and approve request for goods
Head of Finance  Issue invoice for requested goods
 Receive and issue receipt for payment
 Update ledgers
Storekeeper  Receive approved requisition, invoice and
receipt (if applicable) for goods
 Issue goods to requesting Department if
they are in stock
NAME INPUT OUTPUT

Request letter for goods 
265
Covered Entities
March 2018
10.5.3 Inter-Covered Entity Transfer of Goods Process flow
IV02 – Inter-MDA Transfers of Goods
Head of Requesting
IV02-1
IV02-7 IV02-11
MDA
Submit approved IV02-6

Submit payment to Receive requested
requisition and request Receive invoice and End
Head of Finance goods from
for goods letter to Head process payment
(issuing MDA) Storekeeper
of issuing MDA
Head of Issuing
a
IV02-2
MDA
Receive and approve

request for goods
IV02-5
IV02-8
IV02-3 IV02-4 Generate and forward
Head of Finance
Receive payment and

Receive approved Payment Yes invoice to Head of
issue receipt to Head of
request for goods required? requesting MDA for
requesting MDA
payment
No
IV02-9
Update ledgers and
forward approved
request to Storekeeper
to issue goods
Storekeeper
IV02-10
Receive approved
request and issue a
goods to requesting
MDA
266
Covered Entities
March 2018

10 The Head of the requesting Covered Entity shall submit an approved requisition for goods
with a request letter to the Head of the issuing Covered Entity
11 The Head of the issuing Covered Entity shall receive and approve the request for goods from
the Head of the requesting Covered Entity and forward it to the Head of Finance for processing
12 The Head of Finance shall receive the approved request for goods and consider whether per
administrative rules the goods must be paid for by the requesting Covered Entity. If the goods
are not to be paid for, the Head of Finance shall update the ledgers and endorse the request to
the Storekeeper to issue the requested goods.
13 If the goods must be paid for, the Head of Finance shall raise an invoice for the requested
goods and forward it to the Head of the requesting Covered Entity to make payment
14 The Head of the requesting Covered Entity shall make payment on receipt of the invoice to
the Head of Finance
15 The Head of Finance shall receive the payment and issue a receipt to the Head of the
requesting Covered Entity. The Head of Finance shall update the ledgers and endorse the
request for goods together with the invoice and receipt for payment to the Storekeeper to issue
the requested goods
16 The Storekeeper shall receive the approved request from the Head of Finance and issue the
goods to the requesting Covered Entity on a Stores Issue Voucher
17 The Storekeeper shall update the stock records with the details of the issued goods
267
Covered Entities
March 2018
On grant of asset Debit Credit
Grants 26xxxxx
Inventory 3xxxxxx
Inventory 3xxxxxx
On sale of asset Debit Credit
Bank 3212xxx
268
Covered Entities
March 2018
10.6 Disposal of Stores

Stores which have been removed from operational use by the Covered Entity as a result of
obsolescence, damage or fault but still have economic value are disposed of to generate revenue.
Storekeeper  Prepare memo recommending sale of
stock
 Arrange for disposal of goods for no less
than valuation
Head of Finance  Review and approve memo
 Endorse and forward to Director of
Administration for approval
Director of Administration  Review and approve memo
 Endorse and forward to Head of Covered
Entity for approval
 Direct Storekeeper to dispose of stock
Head of Covered Entity  Review and approve memo
 Inform Board of Survey to assess and
value goods
 Receive valuation report and approve sale
of goods
Board of Survey  Assess and value stock
 Prepare and submit valuation report to
NAME INPUT OUTPUT

Memo recommending sale of goods 
Receipt for payment 
269
Covered Entities
March 2018
10.6.3 Disposal of Inventories Process flow
IV03 – Disposal of stock
Storekeeper
IV03-1 IV03-18
IV03-8
Prepare memo Dispose of
No Receive notice of End
recommending asset at no less
no approval
sale of stock than valuation
Head of Finance
IV03-2
IV03-3
Receive and
Approved?
review memo
Yes
IV03-4 IV03-7
Endorse and Receive
forward to Dir of notification of no
Admin approval
No
Administration
Director of
IV03-9 IV03-12
IV03-5 IV03-17
IV03-6 Endorse memo and Receive
Receive and Yes Notify Storekeeper
Approved? forward to Head of notification of no
review memo to dispose of stock
MDA for approval approval
No
Head of MDA
IV03-13 IV03-16
IV03-10
IV03-11 Constitute Review report and
Receive and Yes
Approved? Board of approve sale of
review memo
survey stock
Board of
Survey
IV03-14 IV03-15
Assess and Submit valuation
value stock report
270
Covered Entities
March 2018

1 The Storekeeper shall prepare and submit a memo recommending the sale of goods to the
Head of Finance
2 The Head of Finance shall review and endorse the memo and forward it to the Director of
Administration
3 The Director of Administration shall also review and endorse the proposal. The Director of
Administration shall forward the endorsed memo to the Head of Covered Entity for approval
4 The Head of Covered Entity shall receive and review the memo recommending the sale of
goods. The Head of Covered Entity shall approve the memo and constitute a Board of Survey
to value the goods identified for sale
5 The Board of Survey shall assess and assign a valuation to the goods identified for sale
6 The Board of Survey shall prepare and submit a valuation report to the Head of Covered Entity
7 The Head of Covered Entity shall review and approve the valuation report and notify the
Director of Administration to coordinate the sale of the assets
8 The Director of Administration shall instruct the Storekeeper to dispose of the assets in line
with administrative guidelines on receipt of the notification to proceed with the sale of the
goods
9 The Storekeeper shall arrange for the sale of the assets per administrative guidelines and at
no less than the valuation amounts of the goods
On disposal of asset Debit Credit
Bank 3212xxx
10.7 Donations and Gifts

This section outlines the accounting treatment for donations and gifts to Covered Entities.
271
Covered Entities
March 2018

Third Party  Donate item to Covered Entity
Head of Covered Entity  Receive item on behalf of Covered Entity
 Direct Storekeeper to receive item into

Stores
User Department  Submit approved requisition for donated

item to Storekeeper
 Receive donated item
Storekeeper  Receive donated item into Stores on an

SRA
 Issue donated item to User department on

an SIV copying the Head of Finance and
Estates Manager (if donated item is an
asset)
Estates Manager  Receive SIV
 Assign a unique asset code to the asset and

update asset register
Head of Finance  Receive SIV
 Ascertain value of donated asset and

update the asset register
NAME INPUT OUTPUT

Journal Voucher 
Asset Register 
272
Covered Entities
March 2018
10.7.3 Process flow for Donations and Gifts
IV06 – Donations and Gifts to MDAs
Donor
IV06-1
Donate item to
MDA
Head of MDA
IV06-3
IV06-2
Direct
Receive item
Storekeeper to
on behalf of
receive donated
MDA
item
IV06-8 IV06-9
IV06-4 IV06-11
Receive Issue donated IV06-10
Receive donated Forward copy of
approved item to User Donated item No
item into Stores SIV Head of
Storekeeper
requisition for Department on an asset?

on an SRA Finance
donated item SIV
Yes
IV06-5 IV06-12
Notify User Forward copy of
Department to SIV to Estates
submit requisition Manager and
Head of Finance
Department
IV06-7
IV06-6
User
Submit approved
Process
requisition for
requisition for
donated item to
donated item
Storekeeper
Manager
IV06-13
Estates
Receive SIV and

assign unique
asset code to
donated asset
Finance
Head of
IV06-14
Receive SIV and
End
update ledgers
with value
273
Covered Entities
March 2018

1 A third party makes a donation to an Covered Entity
2 The Head of the Covered Entity receives the item(s) on behalf of the Covered Entity and
directs the Storekeeper to receive the item(s) into Stores.
3 The Storekeeper receives the item(s) into Stores and prepares a Stores Receipt Advice. The
Storekeeper then notifies the Head of the relevant User Department to submit a requisition for
the issue of the donated item from Stores
4 The User Department processes a requisition for the donated item on receipt of the notification
from the Storekeeper and submits an approved requisition to the Storekeeper for the issue of
the donated item
5 The Storekeeper, on receipt of the approved requisition from the User Department, issues the
donated item to the User Department on a Stores Issue Voucher. If the item qualifies as an
asset under the Capitalisation Policy, the Storekeeper forwards copies of the Stores Issue
Voucher to the Estates Manager and the Head of Finance, otherwise the Storekeeper forwards
a copy of the Stores Issue Voucher to the Head of Finance.
6 The Estates Manager on receipt of the Stores Issue Voucher assigns a unique asset
identification code to the asset and updates the asset register with the physical attributes of
the asset.
7 The Head of the Finance receives the copy of the Stores Issue Voucher and updates the asset
register with the financial attributes of the asset. If the item does not qualify as an asset under
the Capitalisation Policy, the Head of Finance updates the relevant inventory account on
receipt of the Stores Issue Voucher.
8 The Head of Finance submits the updated asset register to the Head of Covered Entity for
review
9 The Head of Covered Entity reviews and approves the updated asset register
On receipt of Donation and Gifts Debit Credit
Inventory 31xxxxx
Donor grants and reliefs 13xxxxx
On issue of Donated Fixed Asset Debit Credit
Fixed Asset Account 31xxxxx
Inventory 311xxxx
274
Covered Entities
March 2018
On issue of Donated inventory Debit Credit
Materials and Office Consumables 2210100
Inventory 31xxxxx
275
Covered Entities
March 2018
11 Period End Accounting
11.1 Introduction
Period End Accounting entails all activities that enable the Covered Entity to prepare and publish
financial and management reports on its financial performance, financial position and cash flows
for use by stakeholders. Period end activities include the following tasks:
 Statutory Reporting
 Management Reporting
 Preparation of Bank Reconciliation Statements
 Computation of depreciation and amortisation
 Reconciliation of Accounts Payable and Accounts Receivable
 Relevant Schedules
11.2 Objectives
The objective of financial record keeping and reporting is to be able to provide accountability for
the actions and activities of the various managers and staff of the Covered Entity.
The Financial reports of the Government of Ghana are aimed at a wide array of stakeholders and
thus has been standardised to aid comparability across periods for the Government and where
applicable for comparability with other countries. The Public Financial Management Act, 2016
Act 921 and the Financial Administration Regulations, 2004 (L.I. 1802) and IPSAS provide
guidance on the preparation of financial statements.
The objectives of period end activities can be summarised as provided below:
 To facilitate the preparation of the monthly and quarterly accounts
 To ensure that accurate and reliable accounts are prepared at the end of each accounting
period, whether monthly, quarterly or annual
 To minimize the occurrence of misstatements and errors in accounts preparation
 To facilitate strict adherence to internal controls in line with the accounting/ financial
management systems.
 To ensure that accounts are prepared on a timely basis to meet agreed deadlines.
 To ensure that due processes for the preparation of statutory accounts are followed
 To ensure that statutory accounts are accurately prepared
 To facilitate the timely preparation of final accounts
276
Covered Entities
March 2018

For purposes of effective internal management, Covered Entities are required to prepare monthly
Management Accounts in a format as per appendix 1. The accounts will provide information on
the following:
i. budget performance for the month (revenue and expenditure)
ii. Year to date budget performance
iii. Status of Public Financial management (PFM) Reforms
iv. Systems improvement
v. PFM challenges and recommendations
Also all Head of Covered Entities are required to submit quarterly revenue and expenditure
statements to the Controller and Accountant-General.
In addition, Heads of Covered Entity are required to submit annual financial statements to the
Controller and Accountant-General, with copies to the Auditor General and the Minister
responsible for Finance.
Also, in compliance with the provisions referred to above, the Controller and Accountant-General
is required to prepare quarterly and annual financial statements of the public accounts.
These reporting requirements are mandatory and are designed to foster accountability in the use
of public funds.
11.4 Reporting Periods

The financial year of the Government of Ghana extends from 1st January to 31 December of each
year.
The annual financial statements of each Covered Entity for a given financial year must be
completed and submitted to the Controller and Accountant-General, Minister responsible for
Finance and the Auditor General on or before 28 February of the next financial year.
Each Covered Entity’s quarterly revenue and expenditure accounts must be completed and
submitted to the Controller and Accountant-General, within fifteen days of the end of the quarter.
11.5 Quarter/Year End Procedures

The objective of period end activities is to provide a summary of all financial transactions and
activities for a given period. Period end activities are performed to ensure that all transactions are
posted to the ledgers and reflected in reports for the period.
Period end activities include the reconciliation and balancing off of the general ledger and its sub
ledgers (e.g. Accounts receivable, Accounts Payable, Inventory, Cash and Bank balances etc.)
and extracting a trial balance on the basis of which financial statements can be prepared. A period
is considered closed when these activities have been completed.
277
Covered Entities
March 2018
11.6 Quarter-end Reporting

At end of each quarter, the general ledger and the sub ledgers shall be balanced off to ensure that
all transactions, which relate to that quarter, are properly recorded and classified in the books of
account.
Head of Covered Entity shall submit financial statements to the Controller and Accountant-
General at the end of each quarter. These quarterly statements shall include the following:
 A statement of receipts and payments classified by nature and by source of funds
date balances
Also the Controller and Accountant-General shall prepare and submit a statement of public
accounts to the Auditor General and the Minister responsible for finance.
The quarterly statement of the public accounts shall include the following:
 A balance sheet showing the assets and liabilities of the Consolidated Fund as at the end of
the quarter(Statement of Financial Position)
 A statement of revenue and expenditure of the Consolidated Fund compared to the approved
budget estimates for the year (Statement of Financial Performance)
 A statement of the receipts and payments of the Consolidated Fund compared with the
approved budget estimate for year
 A cash flow statement of the Consolidated Fund for the quarter
 A statement of revenue and expenditure of the retained Internally Generated funds (IGF) by
Covered Entities
 Notes to the financial statements which shall include:
o A statement of cash allocations to Covered Entities
o A revenue statement by source of funds
o A summary expenditure statement by Sector, Covered Entity, and nature
o Variance analysis by Covered Entity and by item
o Reconciliation statements
o A summary expenditure statement by nature
11.6.1 Preparation of quarterly Financial Statements (Covered Entity)
This section describes the process for the preparation of quarterly financial statements by Covered
Entities.
278
Covered Entities
March 2018

Accounting Staff  Update and close sub ledgers at quartered
 Prepare reconciliations for Head of

Finance’s review
 Record adjusting journals if required
Head of Finance  Direct Account Officers to update the sub

ledgers and prepare reconciliations
 Review and agree reconciliations to the

general ledger
 Review and post adjusting journals where

required
 Submit financial report to the Head of

Head of Covered Entity  Review and approve financial reports
 Submit financial report to the Controller

 Submit copies annual audited account to

CAG and Minister of finance

NAME INPUT OUTPUT
Journal entries 
Sub ledger reconciliation reports 
Trial balance 
General ledger 
quarterly reports 
279
Covered Entities
March 2018
11.6.1.3 End of quarter Financial Statement Preparation (Covered Entity) Process

flow
(PEP01) Month End Processes
Head of MDA
PEP01-19
PEP01-20
Review and
Submit monthly
approve monthly
report to CAG
report
End
PEP01-1
PEP01-8 PEP01-9 PEP01-18
Instruct PEP01-4 PEP01-5
Extract Check trial Prepare monthly
Accounts Officer Review general Accurate and Yes
account balance to reports and submit
to close sub Ledgers complete
balances reconciliations to Head of MDA
ledgers
No
Head of Accounts
PEP01-6 PEP01-17
Instruct Officer PEP01-10
Yes Generate the
to make Agreed?
trial balance
adjustment
No
PEP01-16
Post journal to
PEP01-11 update ledger
Instruct
Accounts
Officer to pass Yes
adjusting
journal
PEP01-14
Accurate &
No
complete?
Accouting Staff
PEP01-2
PEP01-13
Receive PEP01-3 PEP01-7 PEP01-12 PEP01-15
Submit journal to
instruction Update and close Pass adjusting Record adjusting Amend adjusting
Head of Accounts
to close the sub ledgers journal entry journal journal
for review
sub ledger
280
Covered Entities
March 2018

1 At the quarter end, the Head of Finance shall instruct Accounting Staff responsible for account
payables, account receivables, inventory, fixed assets, cash and bank etc., to update and
balance off the sub ledger accounts.
2 The Accounting Staff shall balance off the sub ledger accounts and prepare the necessary
reconciliation reports for the Head of Finance’s review. The Head of Finance shall review the
general ledger and the reconciliations to the sub ledgers and where there is the need to make
corrections instruct the Accounting Staff to record an adjusting journal as appropriate.
3 The Accounting Staff shall pass the adjusting journal as required and the Head of Finance
shall review and post it to update the general ledger if it is accurate otherwise the Head of
Finance shall direct the Accounting Staff to make the necessary corrections to the journal and
resubmit it for review.
4 When Head of Finance confirms that all transactions, which relate the quarter, have been
recorded and properly classified in the general ledger, the Head of Finance shall generate a
trial balance and prepare the financial statements for the quarter based on the trial balance.
5 The Head of Finance shall submit the financial statements to the Head of the Covered Entity
for review and approval
6 The Head of the Covered Entity shall receive and review the financial statements. If the
financial statements are accurate and complete, the Head of the Covered Entity shall approve
them and submit a copy to the Controller and Accountant-General, otherwise the Head of the
Covered Entity will return the financial statements to the Head of Finance to make the
necessary corrections and resubmit the financial statements for approval
11.6.2 Preparation of quarterly Statement of Public Accounts (CAGD)

Head of Public Accounts Section  Receive quarterly financial statements
from Covered Entities
 Direct Accounting Staff to consolidate

financial statements and prepare
reconciliations

consolidated accounts

required
 Submit consolidated financial statements

to the Deputy Controller and Accountant-
General – FMS for review
281
Covered Entities
March 2018

 Prepare reconciliations for Deputy
Controller and Accountant-General
(FMS) review
Deputy Controller and Accountant-General  Supervises the Head of Public Accounts in

(Financial Management Services Division) the preparation of the public accounts
 Review and submit Financial Statements

on Consolidated Fund to Controller and
Accountant-General
 Review Covered Entity financial

statements
Controller and Accountant-General  Review and approve consolidated

financial reports
 Submit consolidated financial report to the

Auditor General and the Minister
responsible for Finance

NAME INPUT OUTPUT
Journal entries 
quarterly reports 
General ledger 
Trial balance 
Consolidated monthly report 
282
Covered Entities
March 2018
11.6.2.3 End of Month Consolidated Financial Statement Preparation Process

flow
PEP02 – Month End Reporting
Head of Public Accounts
PEP02-2 PEP02-3
Receive MDA Direct Accounting
monthly financial Staff to consolidate
statements financial statements
PEP02-4
PEP02-5
Review and agree PEP02-9
Submit consolidated
reconciliations to Record adjusting
financial statement to
consolidated journal as required
DCAG (FMS)
accounts
Deputy Controller and Accountant
PEP02-6
PEP02-1
Receive and review
General (FMS)
Review MDA financial

consolidated financial
statements
statements
PEP02-10
PEP02-8
Endorse and submit PEP02-7
Direct Head of Public
financial statements Accurate &
Accounts to record
on Consolidated complete
adjusting journals
Fund to CAG
Accountant General
PEP02-12
Controller and
PEP02-11
Submit consolidated
Review and approve
financial statements to End
consolidated financial
Auditor General and
statements
Minister of Finance
283
Covered Entities
March 2018

1 The Deputy Controller and Accountant-General (Financial Management Services Division)
shall receive quarterly financial statements from all Covered Entities through the Controller
shall direct the Head of the Public Accounts Section to consolidate the financial statements
and prepare the relevant reconciliations to the general ledger
3 The Head of the Public Accounts Section shall consolidate the financial statements of all
Covered Entities, prepare the relevant reconciliation statements and submit them to the
Deputy Controller and Accountant-General (Financial Management Services Division) for
review
shall receive and review the consolidated financial statements for accuracy and completeness.
5 If there are any errors, the Deputy Controller and Accountant-General (Financial Management
Services Division) shall instruct the Head of the Public Accounts Section to make the
necessary corrections and resubmit for review, otherwise the Deputy Controller and
Accountant-General (Financial Management Services Division) shall endorse and submit the
consolidated financial statements to the Controller and Accountant-General for approval
6 The Controller and Accountant-General shall receive and review the financial statements. If
the financial statements are accurate and complete, the Controller and Accountant-General
shall approve them and submit a copy to the Minister responsible for Finance and the Auditor
General.
7 Otherwise, the Controller and Accountant-General will return the financial statements to the
Deputy Controller and Accountant-General (Financial Management Services Division) to
make the necessary corrections and resubmit the financial statements for approval
11.7 Year-end Reporting

Head of Covered Entity are require to prepare and submit annual financial statements to the
Auditor General, Minister responsible for Finance and the Controller and Accountant-General
within two months after the end of the financial year.
The annual financial statements of Covered Entities shall include:
date balances
 Notes to the accounts including a details of the extent to which the performance criteria in
satisfied. This shall include:
284
Covered Entities
March 2018
o An Expenditure Analysis Statement showing expenditure for the current period

and the year to date
o A schedule of advances to staff and third parties
o Commitment Control Report
The Public Financial Management Act, 2016 Act 921 and Part VII of the Financial Administration
Regulations, 2004 (L.I. 1802) also require the Controller and Accountant-General to prepare and
submit annual financial statements to the Auditor General and the Minister responsible for
Finance, within two months after the end of the financial year.
The annual financial statements of the Public accounts shall include:
 A balance sheet showing the assets and liabilities of the Consolidated Fund as the end of the
financial year
 A summary statement of the receipts and payments from the Consolidated Fund compared
with the approved budget summaries for the year
 A statement of the revenue and expenditure of the Consolidated Fund compared with the
approved budget estimates for the year
 A cash flow statement of the Consolidated Fund
 Notes to the accounts including a statement of transactions during the year and an analysis of
the position at the end of the year for:
o Public debt
o Deposits and other trust moneys
o Securities of Government
o Advances
o Public loans
o Equity investments of the Consolidated Fund
o Any other information as may be required by other enactments
285
Covered Entities
March 2018
11.7.1 Year End Reporting – Covered Entity

Head of Finance  At the year end, Instruct Designated
Account Officers to update the sub
ledgers
 Receive and review the general ledger
 Extract account balances from the system
 Check trial balance to ensure it agrees with

reconciliations
 Instruct Officers to record journal

vouchers to correct errors
 Post journal vouchers to correct errors

where necessary
 Post journal vouchers for the year’s

transactions into the system
 Prepare financial statements based on the

extracted trial balance
Accounts Officer  Receive Instructions to record and update

the sub ledgers
 Record and update the sub ledgers
 Receive instruction to post journal

vouchers
 Update the general ledger
Head of Covered Entity  Receive and review the draft annual

financial statements
 Approve the annual financial statements
 Sign and submit copies of the financial

statements to the CAG, AG and Minister
286
Covered Entities
March 2018

NAME INPUT OUTPUT
Journal vouchers 
Trial balance 
General ledger reconciliation reports 
Draft financial statements 
Signed financial statements 
287
Covered Entities
March 2018
11.7.1.3 Year End reporting Process flow

YE02 - Year End Accounting Process Flow
Accounts
YE01-1
Officers
Close sub
ledgers for the
period
Supervisors
Accounts
YE01-2 YE01-3
Reconciliation Pass year
of GL and Sub end adjusting
legders journals
YE01-5 YE01-6 YE01-9

Finance
Head of
YE01-4 Prepare Submit Financial Make

Extract TB financial reports to Head of corrections as
reports MDA for review necessary
No
Head of
YE01-11
MDA
YE01-7 YE01-8 YE01-10

Submit copies to
Receive and Accurate and Yes Approve financial
CAG, AG and
review reports complete? statements
Minister of Finance
Controller and
Accountant
General
YE01-12
Receive copy of
financial reports
Minister of Finance
Auditor General /
YE01-13
Receive financial
End reports and
prepare for audit
activity
288
Covered Entities
March 2018

1 The Accounts Officers shall close and balance off all sub ledger accounts for the year
according the instruction of the Head of Finance
2 Accounts Supervisors shall reconcile the sub ledger accounts to the general ledger to confirm
the accuracy and completeness of the books of account for review by the Head of Finance. If
any errors or omissions are identified, the Accounts Supervisors shall prepare and record the
necessary adjusting journals which shall be reviewed and posted by the Head of Finance
3 The Head of Finance shall then extract a trial balance and prepare the annual financial
statements.
4 The Head of Finance shall submit the draft annual financial statements to the Head of the
Covered Entity for review and approval
5 The Head of the Covered Entity shall review and approve the annual financial statements if it
is accurate and complete, otherwise the Head of the Covered Entity shall return the draft
annual financial statements to the Head of Finance to make the necessary corrections and
resubmit for approval
6 The Head of the Covered Entity shall sign the approved annual financial statements and
submit copies to the Controller and Accountant-General, Auditor General and the Minister
responsible for Finance.
11.7.2 Year End Reporting – CAGD

Deputy Controller and Accountant-General  Receive annual financial statements from
(Financial Management Services Division) Covered Entities
 Direct Accounts Officers to consolidate

financial statements and prepare
reconciliations

consolidated accounts

required
 Submit consolidated annual financial

statements to the Controller and
Accountant-General for approval
289
Covered Entities
March 2018

Head of Public Accounts Section  Consolidate Covered Entity annual
 Prepare reconciliations for Deputy

Controller and Accountant-General
(FMS) review
Controller and Accountant-General  Review and approve consolidated annual

financial reports
 Submit consolidated annual financial

statements to the Auditor General and the

NAME INPUT OUTPUT
Journal entries 
Trial balance 
General ledger reconciliation reports 
Draft annual financial statements 
Consolidated annual financial statements 
290
Covered Entities
March 2018
11.7.2.3 Year end reporting Process flow

YE02 – Year End Reporting
Deputy Controller and Accountant Controller and
Accountant
YE02-9 YE02-10
General
Review and Submit consolidated

approve financial statements to End
consolidated AG and Minister of
financial statements Finance
General (Financial Management
YE02-8
YE02-1 YE02-4
YE02-5 Endorse
Receive monthly Review
Accurate & Yes consolidated
financial statements consolidated
Services Division)
complete? financial statements

from all MDAs financial statements
and submit to CAG
No
YE02-6
Instruct Head of Public
Accounts Section to
make the necessary
corrections
Head of Public Accounts
YE02-3
YE02-2
Submit/Amend YE02-7
Consolidate
consolidated financial Pass the necessary
statements to DCAG adjusting journals
Section
from MDA
(FMS)
291
Issued by the Controller
Ministries and Accountant
Departments General
and Agencies
March 2018

shall receive annual financial statements from all Covered Entities through the Controller and
Accountant-General
shall direct the Head of the Public Accounts Section to consolidate the financial statements
and prepare the relevant reconciliations to the general ledger
3 The Head of the Public Accounts Section shall consolidate the financial statements of all
Covered Entities, prepare the relevant reconciliation statements and submit them to the
Deputy Controller and Accountant-General (Financial Management Services Division) for
review
shall receive and review the consolidated annual financial statements for accuracy and
completeness.
5 If there are any errors, the Deputy Controller and Accountant-General (Financial Management
Services Division) shall instruct the Head of the Public Accounts Section to make the
necessary corrections and resubmit for review, otherwise the Deputy Controller and
Accountant-General (Financial Management Services Division) shall endorse and submit the
consolidated annual financial statements to the Controller and Accountant-General for
approval
6 The Controller and Accountant-General shall receive and review the consolidated annual
financial statements. If the financial statements are accurate and complete, the Controller and
Accountant-General shall approve them and submit a copy to the Minister responsible for
Finance and the Auditor General.
7 Otherwise, the Controller and Accountant-General will return the consolidated annual
financial statements to the Deputy Controller and Accountant-General (Financial
Management Services Division) to make the necessary corrections and resubmit the financial
statements for approval
11.8 Unused or Unspent funds

Unused funds are any public funds appropriated by parliament in any financial year which have
not been spent by the end of that financial year.
Per section 26 of the Public Financial Management Act, 2016 Act 921, each appropriation
approved by Parliament shall cease to have effect at the close of the financial year in respect of
which the appropriation was made. Any balance of moneys unexpended from the Consolidated
Fund or any other public fund for a financial year by Government by the close of the year, shall
elapse by the 31st of January of the ensuing year.
11.9 Key Definitions

 Carrying amount: The amount at which an asset is recognised in the balance sheet after
deducting accumulated depreciation and accumulated impairment losses
292
Departments General
and Agencies
March 2018
 Impairment: An asset is impaired when its carrying amount exceeds its recoverable amount.
 Recoverable amount: The higher of an asset's fair value less costs to sell (sometimes called
net selling price) and its value in use:
 Fair value: The amount obtainable from the sale of an asset in a bargained transaction between
knowledgeable, willing parties.
 Value in use: The discounted present value of estimated future cash flows expected to arise
from:
o the continuing use of an asset, and from
o Its disposal at the end of its useful life.
293
Departments General
and Agencies
March 2018
Appendix 1
FORMAT FOR Covered Entities MONTHLY MANAGEMENT ACCOUNTS
1. INTRODUCTION
(This should outline the purpose, components and scope of the report)
2. FINANCIAL MANAGEMENT REFORMS
(This section should provide a write up on key on-going public financial management reforms
and status of implementation in the Covered Entity)
3. SYSTEMS IMPROVEMENT
(Information on improvement in internal control systems in the Covered Entity is to be provided
under this section)
4. FINANCIAL PERFORMANCE
Budgeted and Actual Revenue for the Month

Item Budget Actual Variance Comment
Tax XXX XXX XX
GoG Subvention XXX XXX XX
IGF XXX XXX XX
Grants- Donor XXX XXX XX
Total XXX XXX XX
Budgeted and Actual Expenditure for the Month

Item Budget Released Actual Variance Comment
(A) Budget Paid Unpaid Total (F=A-E)
(B) Actuals Actuals (E=C+D)
(C) (D)
Compensation XXX XXX XX XX XXX XX
of Employees
Goods and XXX XXX XX XX XXX XX
Services
Consumption XXX XXX XX XX XXX XX
of Assets
Finance Cost XXX XXX XX XX XXX XX
294
Departments General
and Agencies
March 2018
Other XXX XXX XX XX XXX XX
Expenses
Total XXX XXX XX XX XXX XX
Budgeted and Actual Revenue – Year to Date

Item Budget YTD Actual Variance Comment
YTD YTD
Tax XXX XXX XX
GoG Subvention XXX XXs XX
IGF XXX XXX XX
Grants- Donor XXX XXX XX
Total XXX XXX XX
Budgeted and Actual Expenditure – Year to Date
Item Budget Released Actual Variance Comment

YTD Budget Paid Unpaid Total YTD
(A) YTD (B) Actuals Actuals YTD (F=A-E)
YTD YTD (E=C+D)
(C) (D)
Compensation XXX XXX XX XX XXX XX
of Employees
Goods and XXX XXX XX XX XXX XX
Services
Consumption XXX XXX XX XX XXX XX
of Assets
Finance Cost XXX XXX XX XX XXX XX
Other XXX XXX XX XX XXX XX
Expenses
Total XXX XXX XX XX XXX XX
295
Departments General
and Agencies
March 2018
5. CHALLENGES
(Public financial management challenges must be highlighted for Management’s necessary
action)
6. RECOMMENDATION
(This section must outline the proposed steps/actions to address the identified challenges in
section 5)
296

Government - of - Ghana - Accounting For COVERED ENTITIES 2018

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Government - of - Ghana - Accounting For COVERED ENTITIES 2018

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Government of Ghana Accounting Manual for

The Republic of Ghana

Symbol Name Description

Process An operation or action step

Terminator Ends a process

Decision A question or decision point

Predefined Process A series of process steps

Document A document or report

Manual Operation A process that is not

On page connector A jump from one point in

Off page connector Continuation of the process

Stored data Indicates that the process

2 Financial Accounting Principles and System 3

6 Procurement of Works, Goods and Services 111

7 Expenditure Management 140

8 Cash and Bank Management 182

9 Fixed Assets Accounting 202

10 Inventory (Stores) Accounting 258

10.2 Regulations and Policies 258

11 Period End Accounting 276

1 Introduction to the Manual

1.1 Purpose of the manual

1.1.2 Intended users

1.2 Legal Framework

1.3 Structure of the manual

1.4 Maintenance of this manual

2 Financial Accounting Principles and System

2.2 Generally Accepted Accounting Principles for Covered Entities

2.2.1 Overview of IPSAS

1 IPSAS 1 – Presentation of Financial Statements

2 IPSAS 2 – Cash Flow Statements

3 IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors

4 IPSAS 4—The Effects of Changes in Foreign Exchange Rates

5 IPSAS 5—Borrowing Costs

6 IPSAS 6—Consolidated and Separate Financial Statements

7 IPSAS 7—Investments in Associates

8 IPSAS 8—Interests in Joint Ventures

9 IPSAS 9—Revenue from Exchange Transactions

10 IPSAS 10—Financial Reporting in Hyperinflationary Economies

11 IPSAS 11—Construction Contracts

14 IPSAS 14—Events after the Reporting Date

15 IPSAS 15—Financial Instruments: Disclosure and Presentation

16 IPSAS 16—Investment Property

17 IPSAS 17—Property, Plant, and Equipment

18 IPSAS 18—Segment Reporting

19 IPSAS 19—Provisions, Contingent Liabilities and Contingent Assets

20 IPSAS 20—Related Party Disclosures

21 IPSAS 21—Impairment of Non-Cash-Generating Assets

22 IPSAS 22—Disclosure of Financial Information about the General

23 IPSAS 23—Revenue from Non-Exchange Transactions

24 IPSAS 24—Presentation of Budget Information in Financial Statements

25 IPSAS 25—Employee Benefits

26 IPSAS 26—Impairment of Cash-Generating Assets

28 IPSAS 28—Financial Instruments: Presentation

29 IPSAS 29—Financial Instruments: Recognition and Measurement

30 IPSAS 30—Financial Instruments: Disclosures

31 IPSAS 31—Intangible Assets

32 IPSAS 32—Service Concession Arrangements: Grantor

33 IPSAS 33--- First-time Adoption of Accrual Basis

34 IPSAS 34--- Separate Financial Statements

35 IPSAS 35--- Consolidated Financial Statements

36 IPSAS 36--- Investments in Associates and Joint Ventures

37 IPSAS 37--- Joint Arrangements