THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA)

PUBLIC SECTOR ACCOUNTING QUESTION PAPER

NOVEMBER 2014
QUESTION 1
The following are the balances extracted from the Consolidated Fund of the Public Accounts for
the year ended 31st December, 2012.
GH000
Taxes paid by Individuals
Taxes paid by Companies & Enterprises
Other Direct Taxes
Taxes on Goods & Services
National Pension Contribution
Allowances to Employees
Non-Established Post-salaries
Established Post-salaries
Grant
Other Revenue
Materials and Office Consumables
Utilities
Rentals, Travel & Transport
Domestic Debt Interest
Training, Seminar and Conference Cost
External Debt Interest
Cash & Bank balances
Advances & Receivables
Long Term Receivables
Payables
Deposits and Other Trust Monies
Short-term Borrowings
Equity Investments
Infrastructure, Plant & Equipment
Work-in-Progress
Domestic Debt
External Debt
LEAP Programme Cost
School Feeding Programme Cost
Free School Uniform Cost
Other Expenses
Consumption of Fixed Capital
General Taxes on Goods and Services
Excises
Customs and Other Import Duties
Accumulated Surpluses (1/1/2012)

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405,218
67,892
49,119
132,532
45,440
28,000
200,052
400,400
14,055
25,464
58,763
17,280
20,805
20,100
27,125
41,886
980,449
30,082
1,418,308
605,522
1,876,206
5,649,911
1,809,876
1,014,403
152,440
11,859,794
16,141,574
33,060
15,250
34,339
20,662
123,973
132,532
46,450
290,794
30,671,838 (DR)

THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA)

PUBLIC SECTOR ACCOUNTING QUESTION PAPER
NOVEMBER 2014

Required:
a]

Prepare Consolidated Fund Statement of Revenue and Expenditure for the year ended 31st
December, 2012.

b]

Prepare Statement of Financial Position for the Consolidated Fund as at 31st December,
2012.
NOTE: Students must use the current chart of Accounts for Revenue and Expenditure
items classifications and the Statement of Financial Position must fully reflect
all central Government Assets and liabilities as required by IPSAS.
(20 marks)

QUESTION 2
a]

In Central Government Budgeting, Expenditure Projections are very important.

Required
State five (5) factors to be considered in Government Expenditure Projections.
(5 marks)

b]

Subject to Article 179 of the Constitution, the President shall cause to be laid before
Parliament at least one month before the end of the financial year, estimate of Revenue
and Expenditure of the government for the ensuing financial year.

Required:
Outline five (5) major steps followed by Ministry of Finance in the preparation and execution of
the estimate of revenue and expenditure.
(5 marks)
c]

The Consolidated Fund is divided into four main classifications, namely, Above-TheLine Accounts, Below-The-Line Accounts, General Revenue Balance and Reserve.

Required:
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THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA)

PUBLIC SECTOR ACCOUNTING QUESTION PAPER
NOVEMBER 2014
Give five (5) reasons for this classifications.

d]

(5 marks)

Privatization is part of a process of structural adjustment and redefining the role of the
State Enterprises with the aim of achieving some policy objectives.

Required:
State five (5) policy objectives that influence a Government to privatize State Enterprises.
(5 marks)
(Total: 20 marks)
QUESTION 3

i]

What is the difference between the Consolidated Fund and the Treasury Main Account?
(3 marks)

ii]

List the four (4) stages in public sector business cycle in Ghana.
(2 marks)

iii]

State four (4) ways in which the Internally Generated Funds [IGF] of Local
Governments can be improved.

(5 marks)

(Total: 10 marks)

QUESTION 4

a]

The Parliament of Ghana has failed in its financial duty to control Government
expenditure.

Required:
State five (5) reasons that account for the failure of Parliament to control expenditure.
(5 marks)
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THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA)

PUBLIC SECTOR ACCOUNTING QUESTION PAPER
NOVEMBER 2014
b]

The National Pensions Scheme aims at ensuring income security of retirees and ensuring
prompt payment of pension benefits to provide a dignified retirement life.

Required:
State five (5) benefits of the first Tier (Mandatory Basic National Social Security Scheme) to a
contributor.
(5 marks)
c]
The following have been identified as some of the problems of public debt management
in Ghana.
{i}

Interest ceilings

{ii}

Debt limitation

{iii}

Unstable commodity prices

{iv}

Fluctuating tax receipts

{v}

Burden of transfer

Required:
Explain how each of these problems affect the management of public debt in Ghana.
(5 marks)
d]

A number of reasons explain the lack of concern for cash management in the public
sector.

Required:
State five (5) main reasons why cash management is poorly practised by MDAs in public
financial management.
(5 marks)
(Total: 20 marks)

QUESTION 5

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THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA)

PUBLIC SECTOR ACCOUNTING QUESTION PAPER
NOVEMBER 2014
a]

Public Private Partnerships (PPP) try to achieve the best of both worlds in the
improvement of Infrastructure Development in the Public Sector.

Required:
i]

Briefly explain the concept of the Public Private Partnership as used in the 1ublic sector.
(2 marks)

ii]

State three (3) main reasons for this partnership in Government business.
(3 marks)

b]

From an economic point of view, the central Government budget serves as a major
fiscal policy tool for the management of the nations macro-economic objectives.

Required:
State five (5) main purposes of the Central Governments budget.

(5 marks)

c]

State five (5) fundamental principles of public procurement in the public sector.
(5 marks)

d]

Integrated Financial Management System (IFMS) is a web based system for complete
Government Financial Accounting adopted by the Government of Ghana called
GIFMIS.

Required:
State five (5) objectives for the adoption of GIFMIS by the Government of Ghana.
(5 marks)
(Total: 20 marks)

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