public sector accounting
Government system & procedures
1. Financial procedure
a. Federal Constitution - framework
b. Financial Procedure Act (FPA) 1957 - power to enact
c. Audit Act 1957 - provisions for audit
d. Treasury Instructions - rules approved & document
e. Treasury Circulars - new rules
f. Government Accounting Standard (PPK) - standard & basis
g. International Public Sector Accounting Standard (IPSAS’s) - standard by IFAC for global
2. Non-financial procedure
Financial Provisions of the Federal Constitution (Art 96 to 112)
1. Objectives
a. Establish general framework for control of public expenditure
b. Provide good financial management systems
c. Govern methods of public funds to be administered & accounted
d. Define borrowings powers of Federal & State
e. Provide guidelines on the maintenance of Consolidated Fund
f. Provide guidelines on budget & annual statement of assets & liabilities
2. 8 main categories
a. Revenues
a.i. Art 96 & 110 - all revenues (tax or rate) are due to the Federal government except :
At least 10% export duty on tin produced in the state
Revenue collected by local authorities
Revenue collected by religious department
Entertainment duties, fees from courts
a.ii. State receive annual financial assistance from Federal Government (grant)
Statutory grant
Capitation Grant
Assist operating expenditure
Basis population
State Road Grant
Maintain state roads
Base on consumer price index (CPI) - cost of material, labour & machinery
State Reserve Fund
Assist state with deficit in current account
Base on economic development, infrastructure & wellbeing of state
Revenue Growth Grant
Increase 10% in revenue of federation in financial year
1/6 to states, 1/6 base on population, 2/3 determined by federation non statutory assistance - contributions in aid of rates assistance, payment to service rendered & advance to state government
b. Expenditure
b.i. Art 98 - expenditure should charge to Consolidated Fund
Pensions,
1. Financial procedure
a. Federal Constitution - framework
b. Financial Procedure Act (FPA) 1957 - power to enact
c. Audit Act 1957 - provisions for audit
d. Treasury Instructions - rules approved & document
e. Treasury Circulars - new rules
f. Government Accounting Standard (PPK) - standard & basis
g. International Public Sector Accounting Standard (IPSAS’s) - standard by IFAC for global
2. Non-financial procedure
Financial Provisions of the Federal Constitution (Art 96 to 112)
1. Objectives
a. Establish general framework for control of public expenditure
b. Provide good financial management systems
c. Govern methods of public funds to be administered & accounted
d. Define borrowings powers of Federal & State
e. Provide guidelines on the maintenance of Consolidated Fund
f. Provide guidelines on budget & annual statement of assets & liabilities
2. 8 main categories
a. Revenues
a.i. Art 96 & 110 - all revenues (tax or rate) are due to the Federal government except :
At least 10% export duty on tin produced in the state
Revenue collected by local authorities
Revenue collected by religious department
Entertainment duties, fees from courts
a.ii. State receive annual financial assistance from Federal Government (grant)
Statutory grant
Capitation Grant
Assist operating expenditure
Basis population
State Road Grant
Maintain state roads
Base on consumer price index (CPI) - cost of material, labour & machinery
State Reserve Fund
Assist state with deficit in current account
Base on economic development, infrastructure & wellbeing of state
Revenue Growth Grant
Increase 10% in revenue of federation in financial year
1/6 to states, 1/6 base on population, 2/3 determined by federation non statutory assistance - contributions in aid of rates assistance, payment to service rendered & advance to state government
b. Expenditure
b.i. Art 98 - expenditure should charge to Consolidated Fund
Pensions,