What is Accounting expenditure report

What is Accounting expenditure report?

Statement of expenditure report

Accounting expenditure report Introduction

New accounting systems of government has one of the best devise or continues process of reporting expenditure by operating level officer to concerned central level officer. It also helps in preparation of future budgets. The following statement and reports are discussed in this chapter as per the requirement of government.

• Statement of expenses

• Monthly advance expenditure reports (AGF N0.14)

• Bank reconciliation statement (AGF No. 15)

Meaning of statement of expenditure

Statement of expenditure is also called monthly expenditure report, which is prepared to report the actual expenditure of every operating level office under new accounting system of government. It should be prepared and submitted to central level office for corresponding at the end of every month as monthly report. It has been maintained in prescribed format under AGF N0. 13.

Statement of expenditure should give information not only about the expenditure incurred by an operating level office on different budget heads, but also discloses amount of budget release, annul appropriation of budget and the balance of budget receivable from central office. It also reflects the summary of cash and bank balances, unlearned amount of advance and loan etc till the end of each month.

Importance of statement of expenditure

Statement of expenditure is one of the most importance statements which is prepared of operating level officers to show their expenditure at the end of every month. The importance of statement of expenditure are as follows:

• To evaluate the progress of operating level.

• To provide accounting information to the central level office for maintaining the control over budget.

• To be prepared with the help of the information obtained from the budget sheet, bank cash book, advance level and petty cash book maintained by operating level officers.

• To provide different types of information to the office of treasury and comptroller for making decision regarding budget release and revolving fund.

• To help the central level office can take important financial decision.

• To provide information for making future budget for operating level officers.

Specimen of statement of expenditure

Statement of expenditure is f prepared under the format as designed by AGF No. 13.the specimen of statement of expenditure is as follows:

Parts of statement of expenditure

The statement of expenditure contains the following two parts:

• Part 1: showing the position of budget.

• Part 2: showing the position of fund.

Part 1: showing the position of budget

Part 2: showing the position of fund

It is the second part of statement of expenditure, which includes the cash and bank balance, total amount of budget release, total expenditure unclear advance and position of loan. It shows the status of fund as follows:

1. Total budget release received up to current month: this is the amount which is calculated with the budget received up to current month the from central level officer. It can be calculated by using following formula.

2. Actual expenditure: this is the amount which is calculated with the amount of expenditure after deducting unlearned advance.

3. Bank balance: bank balance is that amount which is shown the bank balance of bank at the end of the month. It is also calculated the following formula.

4. Cash balance: it is the amount, which is shows the amount of cash balance of cash at the ending date of statement. It is also calculated the following formula

Monthly advance expenditure report (AGF N0.14)

Monthly advance expenditure report is one of them importance report to be prepared by operating level officer for the submissions to the central level officer along with expenditure report. It is a statement of recording those advance expenditure, which have not been cleared. It is maintained to control over advance expenditure. The report should be prepared on the format of AGF No. 14. The format contains date of giving advance name of the persons or party receiving the advance the reasons for non-clearance of advance etc. the specimen of monthly advance expenditure report is as follows.

Bank reconciliation statement (AGF N0. 15)

New accounting system of NG has given much emphasis in banking transaction of government activities. All the transactions are operated through bank, so every officer should be open the bank account for operating its financial transactions. The government officer needs expert petty cash expenses. Banks maintained such and make all the payment through cheque bank statements, on the other bank, the same transaction are recorded in bank cash book of sometimes. The balance of pass book and the balance amount shown by these two books must be equal but various reasons. To disclose such reasons of differences and to reconcile the balance of both by the operating level officer and the format of AGF No.15 and this statement should be submitted to central level officer at the end of every month.

Some reasons of disagreement between two balances may be as follows:

• Cheque paid/ deposited into bank but not credited for payment.
• Cheque issued/ drawn but not yet present for payment.
• A customer directly deposited into bank.
• Direct payment made by bank standing order.
• Interest allowed by bank.
• Interest charges/ bank charges charges by bank.

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