The Budget Department of a Ministry, Department, and Agency (MDA) has received the following inputs from the cost centres for the 2015 budget year:

Expenditure Item Amount (GH¢)
Construction Works – New Projects 289,199.28
Information and Documentation 250,877.16
Depreciation of Assets 450,000.00
Miscellaneous General Expenditure 180,000.00
Property Purchases 366,874.28
Staff Allowances 50,315.60
Research Activities 243,596.45
Charges and Fees 17,752.62
Repairs and Maintenance 32,294.05
Rehabilitation Expenses 661,506.00
Special Services 24,327.00
Travel and Transport 270,789.35
Printing and Publication 151,924.25
Materials and Consumables 193,236.81
General Cleaning 450,000.71
Utilities 650,000.81
Salaries for Established Post 783,594.00
Staff Overtime 871,900.00
Advertisement and Media 170,000.74
Out-of-Station Allowances 131,114.85
Insurance 74,943.28

For the 2015 fiscal year, the Ministry has projected to generate an amount of GH¢3,036,230.57 from Internally Generated Funds. The law in 2015 allowed the MDA to retain all internally generated funds and use it to finance their budget expenditure.

Required:
i) Prepare the MDA’s annual budget using the current chart of accounts for the public sector and submit it to the Ministry of Finance as their proposed budget for the 2015 fiscal year. (8 marks)

ii) Calculate the amount of budgetary subvention support required from the Ministry of Finance for the 2015 fiscal year. (2 marks)

i) MDA’s Annual Budget for 2015 Fiscal Year:

Expenditure Item Amount (GH¢)
Compensation
Salaries for Established Post 783,594.00
Staff Overtime 871,900.00
Staff Allowances 50,315.60
Out-of-Station Allowances 131,114.85
Total Compensation Budget 1,836,924.45
Goods and Services
Utilities 650,000.81
Advertisement and Media 170,000.74
Insurance and Compensation 74,943.28
Information and Documentation 250,877.16
Depreciation of Assets 450,000.00
Miscellaneous General Expenditure 180,000.00
Research Activities 243,596.45
Charges and Fees 17,752.62
Special Services 24,327.00
Travel and Transport 270,789.35
Printing and Publication 151,924.25
Materials and Consumables 193,236.81
General Cleaning 450,000.71
Total Goods and Services Budget 3,052,505.90
Non-Financial Assets
Repairs and Maintenance 32,294.05
Rehabilitation Expenses 661,506.00
Property Purchases 366,874.28
Construction Works – New Projects 289,199.28
Total Non-Financial Assets Budget 1,349,873.61
Grand Total Expenditure Budget 6,239,303.96

(8 marks evenly spread using ticks)

ii) Calculation of Budgetary Subvention Support Required:

Description Amount (GH¢)
Total Expenditure Required 6,239,303.96
Less: Internally Generated Funds (IGF) 3,036,230.57
Total Subvention Required 3,203,073.39