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PAR812S-PUBLIC SECTOR FINANCIAL ACCOUNTING AND REPORTING-1ST OPP-NOV 2024 |
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nAmlBIA UnlVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION: BACHELOR OF ACCOUNTING HONORS
QUALIFICATION CODE: 08BOAH LEVEL: 8
COURSE CODE: PAR812S
COURSE NAME: PUBLIC SECTOR FINANCIAL
ACCOUNTING AND REPORTING
DATE: November 2024
DURATION: 3 HOURS
PAPER:THEORYAND CALCULATIONS
MARKS: 100
1st OPPORTUNITY EXAMINATION
EXAMINER(S) Dr. S. Dzomira
MODERATOR: Mr. Mutonga Samuel Mukelebai
INSTRUCTIONS
1. Capture your full name, student number and assessment number on the first page
2. Answer ALL the questions and manage yourtime properly.
3. Number each page correctly
4. Write clearly and neatly.
5. Do not write in pencil and do not use tip-ex, as this will not be marked.
6. The names of people and businesses used throughout this assessment do not reflect
the reality and may be purely coincidental.
7. Use a non-programmable calculator.
8. SHOW ALL WORKINGS!
THIS QUESTION PAPER CONSISTS OF 3 PAGES (excluding this front page)
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Question 1 (60 marks)
Below are the transactions of the consolidated fund for the year ended 31 December 2023
Dr
Cr
N$
N$
Taxes Paid by Individual
15,731,289
Taxes Paid by Companies
11,468,455
Other Direct taxes
6,765,102
Excises
9,433,578
Taxes on Goods and Services
8,021,037
Taxes on Exports
5,350,772
Program Grant
8,148,127
Project Grant
4,988,181
District Development
4,941,719
Property Income
8,758,558
Sales of Goods and Services
5,763,905
Fines, Penalties and Forfeiture
4,963,027
Established Position
12,138,953
Non Established Position
729,399
Allowances
2,192,931
13% SSF
7,195
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
Social Benefit
3,687,172
Capitation Grant Subsides
293,414
Fertilizer Subsidy
292,134
Schools Subsidy
99,381
Utility Subsidy
831,291
Other Expenditure
1,965,089
Consumption of Plant and Equipment
10,005,389
GETFUND
587,683
District Assembly Common Fund
989,171
Trust Monies
10,200,478
Cash and Cash Equivalent
9,341,283
Loans
2,313,142
Equity Investment
4,921,314
Advances
1,231,162
Domestic Loans
13,203,380
External Loans
20,095,386
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Accumulated Fund
6,321,433
Building at Cost
10,231,421
Transport Equipment at Cost
6,931,463
Plant and Equipment at Cost
30,000,214
Work in Progress
9,139,809
Computer Software at Cost
37,528,678
147,845,578 147,845,578
Additional information:
i. The Controller and Accountant General uses modified accrual accounting concept in
the preparation of its accounts.
ii. Established Post salaries ofN$2,937,000 was outstanding as at 31/12/2023.
iii. Interest on domestic and external loans are provided for at 20% and 15%respectively.
iv. The Central Government depreciates assets on cost basis using the schedule below:
Class of assets
Number of years
Building
50
Plant, Machinery, Furniture and Fittings
20
Transport Equipment
7
Computer Software and License
5
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 Statement of Financial Performance of the Consolidated Fund for the year ended
31/12/2023 and (40 marks)
b) Prepare Statement of Financial Position for the Consolidated Fund as at 31/12/2023. (20
marks)
(Show clearly all workings)
Question 2 (20 marks)
Below is the Revenue and Expenditure Extract of the Consolidated Fund for the year ended
31 December 2023.
Consolidated Fund of Namibia
Statement of Financial Performance for the year ended 31
Decem her, 2023
Actual
Original Budget
$'000
$'000
Revenues
Tax revenues
270,000
312,000
Non tax revenues
26,700
39,000
Grants and Donations
7,200
10,800
Total revenue
303,900
361,800
Expenditures
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Compensation of employees
121,500
124,800
Goods and Services
54,000
120,700
Consumption of fixed capital
1,950
Interest
81,000
82,100
Social benefit cost
1,500
1,800
Subsidies
1,080
1,170
Grants
2,700
2,910
Other expenditure
34,020
32,000
Total expenditure
297,750
365,480
Net Operating result
6,150
(3,680)
Additional information:
The Minister for Finance, has presented a mid-year budget review to Parliament that included
a supplementary (additional) budget fl or 2023. The Minister has cited several local and
international reasons for the budget adjustments. The approved supplementary budget is as
follows:
N$'000
Compensation of employees
11,500
Goods and services
17,000
Interest
2,500
Social benefit cost
1,500
Subsidies
180
Total expenditure
32,680
Required:
Prepare a Budget Performance Statement (20 marks)
Question 3 (20 marks)
a) Accounting Concepts and Bases are broad basic assumptions, which underlie the preparation
of the periodic financial statements of entities in the public sector. Unless stated, it would be
assumed that they have been adhered to when preparing financial statements.
Required:
Explain THREE (4) key characteristics of each of the following Accounting Bases used in
Public Sector Accounting:
i) Commitment accounting
ii) Accrual accounting
iii) Cash accounting (12 marks)
b) One objective of Public Sector Accounting is accountability. Accountability requires that
government justifies how public resources are raised and utilized by means of Financial
Reporting. Financial Reporting helps to improve the performance of, and trust in, the public
sector.
Required:
Explain FOUR (4) other objectives of Financial Reporting in public sector organisations. (8
marks)
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