Question Tag: Consolidated Fund

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  • 4 Marks

PSAF – Nov 2016 – L2 – Q2c – The context of public financial management.

Explaining modalities for making payments out of the Consolidated Fund.

Explain FOUR modalities for making payments out of the Consolidated Fund. (4 marks)

i) Payments should be approved by Parliament in the Appropriation Act according to the purpose described and within the limits set by item classification.

ii) Release of funds to government entities shall be in accordance with warrants issued by the Ministry of Finance and copied to the Controller and Accountant General.

iii) A valid obligation must exist before making a payment, e.g., supplier performs contract and submits invoices to institutions for processing and payment.

iv) All payments must be certified by the head of department or an authorized officer accountable for the use of public monies.

v) A competent person must certify that goods have been received or services have been carried out as expected.

vi) The invoice and other documents requesting payment must be correct, suitable for payment, and the creditor properly identified.

vii) The approval process of the MDA must be fully followed.

  • 20 Marks

PSAF – Nov 2016 – L2 – Q1a – Preparation and presentation of financial statements for central government

Prepare the Statement of Financial Performance and the Statement of Financial Position for the Consolidated Fund as of 31 December 2014 under accrual basis, in compliance with IPSAS.

Below is the Trial Balance of the Consolidated Fund for the year ended 31 December 2014.

Additional Information:
i) It is the policy of Controller and Accountant General to adopt the accrual basis of preparing the public accounts of the Consolidated Fund for the first time in compliance with the Financial Administration Regulation 2004 and the International Public Sector Accounting Standards (IPSAS). The effective date is 31 December 2014.
ii) The current Chart of Accounts based on the GFS 2001 is used in the classification of revenues and expenditures.
iii) Consumption of fixed capital charged on cost for the year has been computed as GH¢156,000,000.
iv) Direct tax revenues due to government but were not received at 31 December 2014 amounted to GH¢49,000,000.
v) An established post salary in arrears as a result of salary increment in the fourth quarter of 2014 was GH¢56,000,000 and goods and services outstanding at the end of the year amounted to GH¢12,000,000.
vi) The grant shown in the trial balance as expenditure represents a statutory transfer to the District Assembly Common Fund (DACF). Any arrears in the DACF should be treated as payable. The current rate of transfer is 7.5% on the amount received.
vii) Public debt interest of GH¢14,000,000 was due to creditors but was not paid as at 31 December 2014.

Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:
i) Statement of Financial Performance of the Consolidated Fund for the year ended 31 December 2014.
ii) Statement of Financial Position of the Consolidated Fund as at 31 December 2014.
(Show all workings clearly)

b) Disclose any TWO significant accounting policies as part of the notes to your accounts, as much as the information provided will permit.

i) Statement of Financial Performance of the Consolidated Fund
for the year ended 31 December, 2014

ii) Statement of Financial Position as at 31 December 2014

ii) Statement of Financial Position as at 31 December 2014

(b)
Notes on Accounting Policy include:
i) Basis of Accounting
The accounts are prepared on accrual basis for the first time.
ii) Consumption of Fixed Capital/depreciation policy
Depreciation is charged on non-financial assets acquired during the year.
Infrastructure is depreciated at 5% per annum on cost and other PPEs are
depreciated at 10% per annum on cost.
iii) Accounts are prepared in compliance with the IPSAS and the Financial
Laws of the country.

EXAMINER’S COMMENTS
This was generally fairly well answered by most candidates. Some candidates
however performed very poorly in answering the question, showing that they were
ill-prepared for the examination.

 

 

 

  • 20 Marks

PSAF – May 2021 – L2 – Q2 – Preparation and presentation of financial statements for central government

Prepare a Statement of Financial Performance and Statement of Financial Position for the Consolidated Fund of Ghana for the year ended 31 December 2020.

Below is the Trial Balance of the Consolidated Fund of Ghana for the year ended 31 December 2020.

Item Description DR (GH¢ million) CR (GH¢ million)
Cash and Bank 61,350
Established Post Salaries 13,524
Non-Established Post Salaries 4,016
Communications Service Tax 5,144
PAYE 6,940
Non-Tax Revenues 2,312
Travel and Transport 468
Administration Cost 6,704
Conferences and Seminars 2,510
Foreign Travel Cost 1,490
Stationery Inventories 20
Stationery Purchased 220
Vehicles Income Tax 2,316
Corporate Tax 4,626
Grants 1,150 2,516
Customs and Excise Duties 1,286
Subsidies for Consumption 1,282
Subsidies for Production 722
Value Added Tax 7,716
Social Benefits 760
State Protocol 100
Allowance 300
Domestic Debt Interest 2,906
External Debt Interest 3,482
Motor Vehicle 4,800 1,920
Equipment 8,400 1,680
Computers 18,400 5,240
Railway (Completed) 5,000
Work in Progress 400
Equity and Security Investment 1,960
Loans and Advances 1,120
Gold and Other Reserves 1,620
Judgement Debt 280
Treasury Bills 22,240
Domestic Debt 26,924
Payables 34,844
External Debt 45,726
Trust Fund and Deposits 4,470
Other Expenditure 1,800
Rent Receivable 1,600
Accumulated Fund 29,516

Total: 175,900, 175,900

Additional information:
i) It is the policy of the Controller and Accountant General to use Accrual Basis of Accounting in preparing the Public Accounts of the Consolidated Fund financial statements in compliance with the Public Financial Management Act, 2016 (Act 921), Public Financial Management Regulation 2019 L.I 2378, and the International Public Sector Accounting Standards (IPSAS).

ii) Inventory in respect of stationery outstanding as at 31 December 2020 cost GH¢18 million and has a current Replacement Cost of GH¢12 million. Meanwhile, the Net Realisable value of the Inventories is estimated at GH¢14 million. No market exists for unused inventories.

iii) An Established Post Salary in arrears as a result of a salary increment in the fourth quarter of 2020 was GH¢56 million, and Public Debt Interest outstanding as at 31 December 2020 amounts to GH¢14 million.

iv) Consumption of Fixed Capital is charged on a Straight-Line Basis for the year as follows:

Asset Useful life
Motor Vehicle 5 years
Equipment 10 years
Computers 5 years
Railway 20 years

v) The Multilateral Partners have extended their Debt Forgiveness policy to the Government, which has resulted in the External Debt write-off amounting to GH¢4 billion in the year. However, this transaction has not been accounted for in the books.

vi) In the year 2019, GH¢8 billion was spent in acquiring Equipment to boost Government projects. However, these transactions were recognised in the accounts as Goods and Services Expenditure in the year 2019. This error has since not been rectified.

Required:
a) Prepare in a form suitable for publication and in accordance with the relevant Financial Laws and IPSAS:

  • Statement of Financial Performance for the year ended 31 December 2020. (9 marks)
    b) Statement of Financial Position as at 31 December 2020. (7 marks)
    c) State and Explain FOUR (4) Conditions under which Revenue from The Sale of Goods shall be recognized in accordance with IPSAS 9: Revenue from Exchange Transactions. (4 marks)

a)

CONSOLIDATED FUND OF GHANA
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR
ENDED 31/12/2020

 

Statement of Accumulated Fund for the year ended 31/12/2020

 

b)

CONSOLIDATED FUND
STATEMENT OF FINANCIAL POSITION AS AT 31/12/2020

c) Conditions for Revenue Recognition (IPSAS 9):
Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

  1. The entity has transferred to the purchaser the significant risks and rewards of ownership of the goods.
  2. The entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.
  3. The amount of revenue can be measured reliably.
  4. The economic benefits or service potential associated with the transaction will probably flow to the entity.
  5. The costs incurred or to be incurred in respect of the transaction can be measured reliably.
  • 10 Marks

PSAF – May 2017 – L2 – Q2a – Public sector fiscal planning and budgeting

This question explores the methods of authorizing payments from the Consolidated Fund and identifies statutory payments permissible by law in the public sector.

The objective of enactments relating to public financial management, among others, is to safeguard public funds from plunder. One way to achieve this objective is by making specific provisions on the modalities for making payments from the Consolidated Fund (Article 178 of the 1992 Constitution). The law requires that all payments from the Consolidated Fund should be authorized and the payment should comply with certain general rules.

Required:

i) Identify and explain THREE ways of authorizing payments out of the consolidated fund. (6 marks)

ii) Identify FOUR statutory payments permissible by law in the public sector. (4 marks)

i) Ways of authorizing payments out of the Consolidated Fund:

  • Appropriation Act: When Parliament passes an Appropriation Act, it authorizes the withdrawal of funds from the Consolidated Fund to cover expenditures outlined in the budget.
  • Supplementary Estimate: A supplementary estimate approved by Parliament allows additional funds to be withdrawn when new or additional expenditures arise during the fiscal year.
  • Advance of Appropriation: When a budget is not effective from the start of the fiscal year, Parliament may approve an advance of appropriation to authorize expenditure until the full budget is passed.

ii) Statutory payments permissible by law:

  • Interest Payment and Debt Repayment: Payments related to the servicing and repayment of national debt.
  • Pension Payments: Statutory pension payments to retired public sector employees.
  • Statutory Transfers: These include transfers to the District Assembly Common Fund, Ghana Education Trust Fund, and the National Health Insurance Scheme.
  • Statutory Transfers to Ghana Infrastructure Investment Fund: Payments allocated to the Ghana Infrastructure Investment Fund for development projects.
  • 12 Marks

PSAF – Nov 2019 – L2 – Q3b – Public sector fiscal planning and budgeting

Compute and analyze financial ratios for the Consolidated Fund of Ghana for 2017 and 2018.

b) The financial information below relates to the Consolidated Fund of Ghana.

Statement of Financial Position of the Consolidated Fund as at December 31, 2018

Item 2018 (GH¢’million) 2017 (GH¢’million)
Non-Current Assets
Property Plant and Equipment 4,200 5,600
Equity investment 10,000 12,000
Total Non-current assets 14,200 17,600
Current Assets
Work in progress 2,500 2,000
Receivables 1,100 900
Cash and cash equivalent 3,250 2,980
Other assets 450 600
Total current assets 7,300 6,480
Total assets 21,500 24,080
Funds and Liabilities
Accumulated Fund (111,280) (111,620)
Current Liabilities
Payables 1,600 19,000
Trust monies 2,540 2,300
Domestic loans 11,240 12,500
Total Current Liabilities 15,380 33,800
Non-Current Liabilities
Domestic loans 52,000 43,000
External loans 65,400 58,900
Total Non-Current Liabilities 117,400 101,900
Total Funds and Liabilities 21,500 24,080

Additional Information:
i) The total market value of all final goods and services produced domestically in Ghana for 2018 and 2017 fiscal years amounted to GH¢205,100,940,000 and GH¢185,600,400,000 respectively.
ii) According to the Statistical Service data, the population of the country is estimated as 25,000,000 in 2018 and 23,900,000 in 2017.

Required:
i) From the information above, compute for the two financial years, the following ratios:

  • Gross Debt
  • Net Debt percentage
  • Debt per Capita
  • Debt to Gross Domestic Product ratio
  • Total Asset to Debt
  • Capital Asset per Capita (6 marks)

ii) Based on the ratios computed, write a report discussing and analyzing the financial position of the Consolidated Fund to the Head of a “think tank” of a Civil Society Organisation for Financial Accountability. (6 marks)

i)

Ratio 2018 2017
Gross Debt (interest bearing liabilities) GH¢’m 128,640 114,400
Net Debt percentage (Financial Asset -Gross Debt) GH¢’m -114,290 -98,520
Domestic Debt per Capita (Debt/Pop) GH¢* 5145.60 4786.6
Debt to GDP (Debt/GDP*100) % 62.72% 61.64%
*Total Asset to Debt (Total Asset/debt 100) % 16.71% 21.04%
Capital Asset per Capita (Capital asset/pop) GH¢ 568.00 736.00

(12 ticks @ 0.5 marks = 6 marks)

Report of the Financial Position of the Consolidated Fund for 2018 financial year

Introduction
The financial position of the Consolidated Fund has been analyzed using some ratios and other indicators. The report examines the financial condition of the government based on the assets and liabilities disclosed in the financial reports.

Discussions and Analysis
Gross debt measures the total interest-bearing liabilities of the Consolidated Fund. The result shows an increase in total debt of the government from GH¢114.4 billion in 2017 to GH¢128.64 billion in 2018, a percentage increase of 12.45%. This gives a bad signal for the financial position of the government as this will negatively affect the financial performance of subsequent years in the form of high-interest expenses. The debt sustainability of the country is threatened by a high debt to GDP ratio which is on the increase from 61.64% in 2017 to 62.72% in 2018. Domestic debt per capita also increased from GH¢4786.60 in 2017 to GH¢5145.60 in 2018, showing an increasing debt burden on each citizen. Thus, the debt position of the Consolidated Fund is not encouraging and it has serious consequences for sustainability and future service delivery.

The use to which the debt is put is very important. The ratios indicate that the debt might have been used for current purposes and repayment of matured debt. The net debt position is unfavourable, deepening from GH¢98.5 billion in 2017 to GH¢114.3 billion in 2018. This shows that the debt stock of the Consolidated Fund is not backed by adequate financial assets and this increases the country’s risk exposure. The amount of debt used in the acquisition of capital infrastructure is insignificant. The result shows that only 21% of debts reflect in capital infrastructure in 2017 but dropped further to only 16% in 2018. This shows that the debt is being used for recurrent spending and debt payoffs. This trend is disturbing more when the capital asset per capita is very low. The negligible amount of GH¢736.4 share of capital assets by individual citizens in 2017 further dropped to GH¢568 in 2018.

Conclusion
It is observed that the financial condition of the Consolidated Fund is precarious and drastic measures and reforms are required to reverse the trend. Effective debt management policies are needed to reverse the situation. The use of debt for financing recurrent expenditures should be avoided as much as possible.

Award 1 mark each for introduction and conclusion. 1 mark for any point raised to the maximum of 4 points. = 6 marks

  • 20 Marks

PSAF – May 2019 – L2 – Q4a – Preparation and presentation of financial statements for central government

Prepare the Statement of Financial Performance for the Consolidated Fund for the year ended 31 December 2018.

Additional Information:
i) The Controller and Accountant General uses the modified accrual accounting concept in the preparation of its accounts.
ii) Established Post salaries of GH¢2,937,000 were outstanding as of 31/12/2018.
iii) Interest on domestic and external loans is provided for at 20% and 15%, respectively.
iv) The Central Government depreciates assets on a cost basis using the schedule below:

Class of Assets Number of Years
Building 50 years
Plant, Machinery, Furniture, and Fittings 20 years
Transport Equipment 7 years
Computer Software and License 5 years

v) Provisions:
Specific provision for bad debt is made for loans receivables and investments as and when their non-recoverability is determined, and where a request is made for write-off to parliament. This provision is set at 3% and 5%, respectively.

Required:
a) Prepare the Statement of Financial Performance of the Consolidated Fund for the year ended 31/12/2018.
(10 marks)

b) Prepare the Statement of Financial Position for the Consolidated Fund as at 31/12/2018.
(7 marks)

c) State and explain THREE (3) Accounting Policies that usually accompany Consolidated Fund Financial Statements.
(3 marks)

a) Workings:

W1 Direct Taxes (GH¢):

  • Taxes Paid by Individuals = 15,731,289
  • Taxes Paid by Companies = 11,468,455
  • Other Direct Taxes = 6,765,102
    Total Direct Taxes = 33,964,846

W2 Indirect Taxes (GH¢):

  • Excises = 9,433,578
  • Taxes on Goods and Services = 8,021,037
  • Taxes on Exports = 5,350,772
    Total Indirect Taxes = 22,805,387

W3 Grants (GH¢):

  • Program Grant = 8,148,127
  • Project Grant = 4,988,181
  • District Development = 4,941,719
    Total Grants = 18,078,027

W4 Non-Tax Revenue (GH¢):

  • Property Income = 8,758,558
  • Sales of Goods and Services = 5,763,905
  • Fines, Penalties, and Forfeiture = 4,963,027
    Total Non-Tax Revenue = 19,485,490

W5 Compensation of Employees (GH¢):

  • Established Position = 12,138,953
  • Non-Established Position = 729,399
  • Allowances = 2,192,931
  • Add: Established Post Accrued Salaries = 2,937,000
    Total Compensation of Employees = 17,998,283

W6 Goods and Services (GH¢):

  • Utilities = 1,125,614
  • General Cleaning = 392,137
  • Rentals = 18,706
  • Travel and Transport = 284,023
  • Training, Seminar, and Conference = 72,618
  • Consultancies = 2,431,582
  • Materials and Consumables = 1,754,361
    Total Goods and Services = 6,079,041

W7 Subsidies (GH¢):

  • Capitation Grant Subsidies = 293,414
  • Fertilizer Subsidy = 292,134
  • School Subsidies = 99,381
  • Utility Subsidy = 831,291
    Total Subsidies = 1,516,220

W8 Statutory Payment (GH¢):

  • GETFUND = 587,683
  • District Assembly Common Fund = 989,171
    Total Statutory Payment = 1,576,854

W9 Interest on Debt (GH¢):

  • Domestic Debt = (20% × 13,203,380) = 2,640,676
  • External Debt = (15% × 20,095,386) = 3,014,308
    Total Interest on Debt = 5,654,984

W10 Provision for Bad Debt (GH¢):

  • Loans = (3% × 2,313,142) = 69,394
  • Investment = (5% × 4,921,314) = 246,066
    Total Provision for Bad Debt = 315,460

W11 Consumption of Assets (GH¢):

Class of Asset Cost (GH¢) Years Depreciation (GH¢)
Building 10,231,421 50 204,628
Plant, Machinery, Furniture 30,000,214 20 1,500,011
Transport Equipment 6,931,463 7 990,209
Computer Software and License 37,528,678 5 7,505,736
Total Consumption of Assets = 10,200,584

a) REPUBLIC OF GHANA
CONSOLIDATED FUND STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31/12/2018

 

b) REPUBLIC OF GHANA
CONSOLIDATED FUND STATEMENT OF FINANCIAL POSITION AS AT 31/12/2018

 

c) Accounting Policies:

  1. Modified Accrual Accounting:
    • The Consolidated Fund’s financial statements are prepared under the modified accrual accounting concept, which recognizes revenues when they become available and measurable, and expenditures when the obligation is incurred, except for interest on debt which is recognized on an accrual basis.
  2. Depreciation of Non-Current Assets:
    • Non-current assets are depreciated using the straight-line method over their useful lives as follows:
      • Building: 50 years
      • Plant, Machinery, Furniture, and Fittings: 20 years
      • Transport Equipment: 7 years
      • Computer Software and License: 5 years
  3. Provision for Bad Debts:
    • Provisions for bad debts are made for loans and investments based on an assessment of their recoverability. A provision of 3% is made for loans receivables and 5% for equity investments.
    • Expenditure
  • 10 Marks

PSAF – May 2020 – L1 – Q3b – Financial Statements Discussion and Analysis

Analyze the financial performance of the Consolidated Fund based on a Common Size Statement of Financial Performance.

Presented below is the Statement of Financial Performance of the Consolidated Fund of Ghana.

Revenue and Expenditure Statement of the Consolidated Fund for the year ended 31 December, 2018

Required:
Based on a Common Size Statement of Financial Performance, write a report discussing and analyzing the financial performance of the Consolidated Fund in line with the Recommended Practice Guide 2, Financial Statement Discussion and Analysis.

Common Size Statement of Financial Performance of the Consolidated Fund for the year ended December 31, 2018

Revenues 2018 (%) 2017 (%) 2018 Budget (%)
Direct tax 34.67 27.13 31.91
Indirect tax 46.79 56.02 53.87
Non-tax revenue 15.81 12.69 11.06
Grants 2.74 4.16 3.16
Total revenue 100.00 100.00 100.00
Expenditure
Compensation for employees 62.80 53.17 40.92
Use of goods and services 21.71 21.58 28.44
Consumption of fixed Asset 0.51 0.48 –
Interest 41.43 31.84 26.51
Subsidies 1.07 0.94 3.03
Other expenses 3.37 3.13 3.87
Exchange difference 1.31 0.88 –
Total Expenditure 132.20 112.01 102.76
Net Operation Result (-32.20) (-12.01) (-2.76)

Report on Financial Performance of Consolidated Fund for the year ended 31st December 2018

Introduction
The report provides an analysis and discussion of the financial performance of the Consolidated Fund in line with the Recommended Practice Guide (RPG). The analysis and discussions are based on the Common Size Statement of Revenue and Expenditure of the Fund for the period.

Revenue Performance
The Fund’s performance in terms of direct taxes and non-tax revenues exceeded the previous year’s results and that of the budget for the period. Direct tax revenue constituted 34.7% of the total revenue of the year as against 27.1% and 31.9% of the prior year and budget totals respectively. This may be attributed to massive tax education and technology applications introduced into the tax administration system during the period. However, indirect taxes performed below the budget and prior year performance, likely due to a sharp economic decline caused by external factors. Grants have also seen a downward trend over the period, indicating that donor support is decreasing over the years.

Expenditure Performance
Compensation of employees remains the biggest expenditure of the fund for the year, with over 60% of the total revenue generated spent on it. This exceeds the expenditure level of 2017 and even the budget of the year. The fund was expected to spend 40.9% of total revenues of the year on compensation but ended spending 62.8% on it, showing a budget overrun in excess of 29%. This may result from employment without establishment warrants or an increase in wage due to labor unrest during the period. There is a budget underrun in goods and services during the year. The fund budgeted to spend about 28% on goods and services during the year but spent only 21.7%. This may affect efficient delivery of public services as input is likely to be lacking due to failure to release budget allocations to the departments. Interestingly, over 41% of total revenue was spent on interest expense, far in excess of the budgeted proportion of 26.5%. This results from huge public debt during the period. Governments should ensure that debt levels are controlled to create fiscal space for spending on goods and services.

Conclusion
The net operating result of the Fund was a deficit of 32% compared to a deficit of 12% in 2017 and a budgeted deficit of 2.8%. This shows that the financial performance of the Fund was not good enough. Drastic measures should be taken to increase revenues from indirect revenue sources and to reduce spending on compensation of employees and interest on debt.

 

  • 20 Marks

PSAF – May 2018 – L2 – Q4 – Preparation and presentation of financial statements for central government

Prepare the Statement of Revenue and Expenditure and the Statement of Financial Position for the Consolidated Fund for the year ended 31 December 2017.

The following are the balances extracted from the Consolidated Fund of Public Accounts for the year ended 31st December 2017:

Description Amount (GH¢ ‘000)
Consumption of fixed Capital 208,878
Miscellaneous Direct Taxes 98,238
Social Security Benefit in Kind 66,120
13.5% SSF Contribution 45,000
Project Grant 9,370
Fines, Penalties and Forfeitures 25,928
Materials and Office Consumables 117,526
General Taxes on Goods & Services 265,064
Travel & Transport 41,610
Social Assistance Benefits 68,678
Established Post- salaries 800,800
Domestic Debt Interest 40,200
Gratuity 20,000
Training, Seminar and Conference Cost 54,250
External Debt Interest 83,772
Allowances to Employees 56,000
Repairs and Maintenance 34,560
Property Income 25,000
Cash & Bank Balances 1,960,898
Advances & Receivables 60,164
Taxes on Exports 581,588
Long Term Receivables 2,836,616
Non-Established Post-salaries 400,104
Payables 1,211,044
Accumulated Surpluses (1/1/2017) (61,343,676)
Deposit and Other Trust Monies 3,752,412
Short-Term Borrowing 11,299,822
Taxes paid by individuals 810,436
Subsidy on Petroleum Products 15,000
Fertilizer Subsidies 24,068
Equity Investment 3,619,752
End of Service Benefit 25,880
Infrastructure, Plant & Equipment 2,028,806
Taxes paid by Companies & Enterprises 135,784
Work-In-Progress 304,880
Domestic Debt 23,719,588
External Debt 32,283,148
Employer Social Benefits in Cash 30,500
Other Expenses (note i) 22,584
Excise Duties 92,900

Additional Notes:
i) Other Expenses:
During the year, the Government of Ghana benefited from free services provided by medical experts who were task forces of the British Government. The main objective of this task force was to help curb cholera in the country. The fair value of these services amounted to GH¢ 18,740,000. It is the policy of the Government to include goods and services received during the year in kind in its financial statements at fair values.

ii) The annual estimates for the year ending 2017 were as follows:

Required:
a) Prepare a Statement of Revenue and Expenditure of the Consolidated Fund for the year ended December 31, 2017, indicating the accompanying variances to the statement.

b) Prepare a Statement of Financial Position of the Consolidated Fund as of December 31, 2017.

a) Statement of Revenue and Expenditure for the Year Ended 31 December 2017

Description Actuals (GH¢ ‘000) Revised Budget (GH¢ ‘000) Variance (GH¢ ‘000)
Revenue:
Direct Tax 1,044,458 940,000 104,458
Indirect Tax 939,552 1,200,000 (260,448)
Grants 28,110 56,000 (27,890)
Non-Tax Revenue 50,928 49,000 1,928
Total Revenue 2,063,048 2,245,000 (181,952)
Expenditure:
Compensation of employees 1,347,784 1,400,040 52,256
Use of goods & Services 247,946 398,300 150,354
Public Debt Interest 123,972 112,560 (11,412)
Social Benefits 165,298 168,954 3,656
Exchange Difference – 38,676 38,676
Government Subsidies 39,068 29,650 (9,418)
Other Expenses 41,324 32,000 (9,324)
Consumption of Fixed Capital 208,878 202,770 (6,108)
Total Expenditure (2,174,270) (2,382,950) 208,680
Excess of Expenditure over Revenue (111,222) (137,950) 26,728

b) Statement of Financial Position as of 31 December 2017 

Notes:

  1. Direct Taxes:
    • Taxes paid by individuals: GH¢ 810,436
    • Taxes paid by companies and enterprises: GH¢ 135,784
    • Miscellaneous direct taxes: GH¢ 98,238
    • Total Direct Taxes: GH¢ 1,044,458
  2. Indirect Taxes:
    • Taxes on Goods & Services: GH¢ 265,064
    • Excises: GH¢ 92,900
    • Taxes on Exports: GH¢ 581,588
    • Total Indirect Taxes: GH¢ 939,552
  3. Grants:
    • Project Grant: GH¢ 9,370
    • Service in Kind from British Gov’t: GH¢ 18,740
    • Total Grants: GH¢ 28,110
  4. Non-Tax Revenue:
    • Property Income: GH¢ 25,000
    • Fees, Penalties, and Forfeitures: GH¢ 25,928
    • Total Non-Tax Revenue: GH¢ 50,928
  5. Compensation of Employees:
    • Allowances to Employees: GH¢ 56,000
    • Non-Established Post: GH¢ 400,104
    • Established Post: GH¢ 800,800
    • National Pension Contribution:
      • Gratuity: GH¢ 20,000
      • 13.5% SSF Contribution: GH¢ 45,000
      • End of Service Benefit: GH¢ 25,880
    • Total Compensation of Employees: GH¢ 1,347,784
  6. Use of Goods & Services:
    • Materials and Office Consumables: GH¢ 117,526
    • Repairs and Maintenance: GH¢ 34,560
    • Travel & Transport: GH¢ 41,610
    • Training, Seminar, and Conference: GH¢ 54,250
    • Total Use of Goods & Services: GH¢ 247,946
  7. Public Debt Interest:
    • External Debt Interest: GH¢ 83,772
    • Domestic Debt Interest: GH¢ 40,200
    • Total Public Debt Interest: GH¢ 123,972
  8. Social Benefits:
    • Social Security Benefit in Kind: GH¢ 66,120
    • Employer Social Benefits in Cash: GH¢ 30,500
    • Social Assistance Benefits: GH¢ 68,678
    • Total Social Benefits: GH¢ 165,298
  9. Government Subsidies:
    • Subsidy on Petroleum Products: GH¢ 15,000
    • Fertilizer Subsidies: GH¢ 24,068
    • Total Government Subsidies: GH¢ 39,068
  10. Other Expenses:
    • As per Question: GH¢ 22,584
    • Service in Kind – British Govt.: GH¢ 18,740
    • Total Other Expenses: GH¢ 41,324

NB: Assets or services received free of charge or for nominal cost are recognized as Grants at the fair value of the assets or services that the Government would have otherwise paid for, where the fair value can be measured reliably. A corresponding expense is recognized for services received and in the case of assets, the receipts of assets are recognized in the Statement of Financial Position. In this case, a service in kind was received; hence the inclusion of GH¢ 18,740,000 in the Grants and Other Expenses accordingly.

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