Chapter Four
Monthly Reports
Introduction: The purpose of this unit is to describe the monthly reports submitted by a
reporting entity to ministry of finance and Economic development. The reports are highly
interrelated. The first section of this unit deals with Revenue /Assistance/ Loan report which is
prepared to provide information on the year to date revenues of an accounting unit from each
source of finance. It also helps to facilitate consolidation of the actual revenues, assistance and
loan collected by the FGE and to facilitate comparison of budgeted revenues to actual revenues
by account category. The second and third section of this unit deals with Recurrent Expenditure
Report, Capital Expenditure Report respectively and these reports provide information on the
year - to - date expenditures of each BI managed by an accounting unit. Its function is to
facilitate consolidation of the actual expenditures made by the FGE and to facilitate comparison
of budgeted expenditure to actual expenditure.
The fourth section of this unit will describe about Transfer Report whose function is to serve as a
control tool to verify case transfers between MOFED and an accounting unit and vice versa. The
fifth section of this unit deals with Receivables Report, which provides information on the year -
to_ date receivables owed to an accounting unit. This report helps to facilitate consolidations of
the actual receivables owed to the FGE.
The sixth section of this unit will present about the Payables Report. The payables report
provides information on the year-to-date payables owed by an accounting unit. This report
facilitates consolidation of the actual payables owed by the FGE. The total of all the
revenue/Assistance/loan reports, recurrent and capital expenditure reports, receivables and
payables reports will be carried forward to the trial balance.
The seventh section of this unit is about a trial balance, which is the summary of the net
cumulative year -to - date debit, and credit balances contained in the general ledger at the end of
each month for each account code represented by a general ledger card. It proves the arithmetical
accuracy of the general ledger. The total amount of debit column must be equal with the total
amount of the credit column in the trial balance. The trial balance serves as a basis to produce
financial statements. Finally, the last section of this unit is about submitting monthly reports to
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MOFED. This is about the importance of submitting monthly reports on a timely basis to
MOFED by a reporting entity so that Ministry of Finance and Economic Development
consolidates the reports for each account in to a FGE financial statement. The consolidation is
done by central accounts department at MOFED.
1.1 Revenue/Assistance/Loan Report
According to MOFED and DSA Project manual, December 2002, the only monthly reports
verified by Ministry of Finance and Economic Development is the transfer report and the Trial
Balance. The transfer Report is verified by Ministry of Finance and Economic Development to
ensure that all disbursements to an accounting Unit by Ministry of Finance and Economic
Development and all disbursements from an Accounting Unit to Ministry of Finance and
Economic Development are accounted for within the accounting system to enhance control over
cash transfers.
The Trial Balance is verified by Ministry of Finance and Economic Development to ensure that
the total debits and credits are equal and that general Ledgers are balanced. Also, Ministry of
Finance and Economic Development verify the cash balance for the domestic source of finance
from the trial Balance to enhance cash management practices at federal level.
All other monthly reports that are submitted to Ministry of Finance and Economic Development
serve as input documents to consolidate reports and produce financial statements at the Federal
Level. The Inspection Department and the Office of The Auditor General verify these reports.
All monthly reports are prepared in two copies. The original copy is sent to Ministry of
Finance and Economic Development and the second copy is retained as a permanent record at
the reporting entity. The Revenue/Assistance/Loan Report provides information on the year-to-
date revenues of an accounting unit from each source of finance. The purpose of the
revenue/Assistance/Loan Report is to facilitate consolidation of the actual revenues, assistance
and loan collected by the FGE and Regional State to facilitate comparison of budgeted revenues
to actual revenues by account category (MOFED and DSA Project manual, January, 2002).
The Accountant prepares a revenue/Assistance/Loan report for the Accounting Unit. The source
document to prepare the revenue/Assistance/Loan report is the general Ledger. Each item of
revenue, assistance or loan is identified by account code. The amount from the balance column
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in the general ledger card is transcribed into the revenue/assistance/Loan Report. The grand
totals from each revenue/Assistance/Loan report are carried forward to the trial Balance.
Balances in the Revenue/Assistance/Loan Report are normally credits. Each accounting Unit
prepares one revenue/assistance/Loan Report as indicated in figure 1.1 below.
Figure 1.1: Revenue/Assistance/Loan report
Me/He 21
Month__________
Name of Public Body:________________________ code: _______
Name of Program:___________________________ code: _______
Name of Sub Agency:________________________ code: _______
Name of Sub Program: ________________________code: _______
Name of Project: _____________________________code: _______
Bank Account Number:_______________________
Account YEAR-TO-DATE
Code Account description Revenue
Debit Credit
1101 Tax on wages and salaries
1465 Interest on loans to government employees
1485 Other miscellaneous revenue
Total (To Trial Balance)
Prepared by Name and Signature
Recurrent Expenditure Report
The recurrent expenditure report provides information on the year-to-date recurrent expenditures
of each budgetary Institution managed by an accounting Unit. The purpose of the recurrent
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expenditure report is to facilitate consolidation of the actual recurrent expenditures made by the
FGE and regional state to facilitate comparison of budgeted expenditure to actual expenditure.
The Accountant prepares the recurrent expenditure report for each BI. The source document to
prepare the recurrent expenditure report is the subsidiary ledger. The balance of each subsidiary
ledger card is transcribed to the appropriate account code or in the recurrent expenditure report.
Balances in the recurrent expenditure Report are normally debits. Each accounting unit prepares
a recurrent expenditure Report for each BI that it manages (MOFED and DSA Project manual,
December 2002). The format of the report is indicated below.
Figure 1.2: Recurrent Expenditure Report
Me/He 22
Month___________
Name of Public Body:________________________ code: _______
Name of Program:___________________________ code: _______
Name of Sub Agency:________________________ code: _______
Name of Sub Program:________________________code: _______
Name of Project:_____________________________code: _______
Source of Finance:____________________________ code: _______
Bank Account Number:___ ____________________
Account YEAR-TO-DATE
Code Account Description Expenditure
Debit Credit
Preprinted Preprinted
Total (To Trial Balance)
Prepared by Name an Signature
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1.3 Capital Expenditure Report
In Manual 3 volume I, Accounting for modified cash basis transactions, which is prepared by
MOFED &DSA Project, in December 2002, the Capital expenditure Report, provides
information on the year-to-date capital expenditures of each BI managed by an Accounting Unit.
The purpose of the capital expenditure report is to facilitate consolidation of the actual capital
expenditures made by the FGE and state governments and to facilitate comparison of budgeted
expenditure to actual expenditure. The Accountant prepares the capital expenditure Report for
each BI. The source document to prepare the Capital expenditure Report is the subsidiary
Ledger. The amount from the balance column in each subsidiary Ledger card is transcribed to
the appropriate account code in the recurrent expenditure Report. Balances in the Capital
Expenditure Report are normally debits, which are similar to the capital expenditure. Each
Accounting Unit prepares a capital expenditure Report for each BI that it manages. The format of
the report is indicated below.
Capital Expenditure Report
Me/He 23
Month___________
Name of Public Body:________________________ code: _______
Name of Program:___________________________ code: _______
Name of Sub Agency:________________________ code: _______
Name of Sub Program: ________________________code: _______
Name of Project: _____________________________code: _______
Source of Finance:____________________________ code: _______
Bank Account Number:_______________________
Account YEAR-TO-DATE
Code Account Description Expenditure
Debit Credit
Preprinted Preprinted
Total (To Trial Balance)
Prepared by Name and Signature
(Source: MOFED and DSA Project manual, December 2002)
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1.4 Transfer Report
Transfer report delivers information of cash flow made between the accounting unit and
MOFED/State year-to-date and during the month. The transfer report consists of two parts:
Part 1 summarizes transfer account balances from the general Ledger.
Part 2 provides information on each monthly cash transfer between the accounting Unit
and Ministry of Finance and Economic Development.
The purpose of the transfer report is to serve as a control tool to verify cash transfers between
Ministry of Finance and Economic Development and an accounting Unit and vice versa. The
Accountant prepares a transfer Report for each accounting Unit. The source documents to
prepare the Transfer Report are the General Ledger Cards. Balances in the Transfer Report are
debits or credits depending on the nature of the transfer account. One Transfer report is prepared
for each Accounting Unit (MOFED AND DSA Project, December, 2002)
Part 1
The amount from the Balance Column in the General Ledger Card is transcribed into the transfer
report - Part 1as indicated in figure 1.4. The grand totals from each Transfer report - Part 1 are
carried forward to the trial Balance.
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Figure 1.4 Transfer Report - Part 1
Me/He 24 Month__________
Name of Public Body:________________________ code: _______
Name of Program:___________________________ code: _______
Name of Sub Agency:________________________ code: _______
Name of Sub Program: ________________________code: _______
Name of Project :_____________________________code: _______
Bank Account Number:_______________________
Account YEAR-TO-DATE
Code Account Description Balance
Debit Credit
4001 Recurrent salary and allowances
4002 Recurrent operating expenditure
4003 Capital salary and allowances
4004 Capital expenditure
4005 Staff advances
4006 SSDP funds
4007 Grace period payables
4008 Between BI and/or Region
4009 Other cash transfers
4010 Within BI or MOFED
4051 Recurrent salary and allowances: non-cash
4052 Recurrent operating expenditure: non-cash
4053 Capital salary and allowances: non-cash
4054 Capital expenditure: non-cash
4055 Other non-cash transfers
Total (To Trial Balance)
Prepared by Name and Signature
(Source: MOFED AND DSA project, December 2002)
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1.5. Receivables Report
The receivables report provides information on the year-to-date receivables owed to an
accounting unit. The purpose of the receivables Report is to facilitate consolidation of the actual
receivables owed to the FGE. The accountant prepares a receivables Report for each accounting
unit. The source document to prepare the receivables report is the general ledger. Each item of
receivable is identified by account code. The amount from the balance column in the general
ledger card is transcribed into the receivables report. The grand totals from each receivable
report are carried forward to the trial balance. Balances in the receivables report are normally
debits. One receivables report is prepared for each accounting unit (MOFED and DSA, Project
manual, January 2002).
Figure 1.6 Receivables Report
Receivables Report
Me/He 25
Month__________
Name of Public Body:________________________ code: _______
Name of Program:___________________________ code: _______
Name of Sub Agency:________________________ code: _______
Name of Sub Program: ________________________code: _______
Name of Project :_____________________________code: _______
Bank Account Number:_______________________
Account YEAR-TO-DATE
Code Account Description Receivables
Debit Credit
4201 Suspense
4202 Cash shortage
4203 Advance to staff
4204 Advance for SSDP
4205 Advance for staff from next year's budget
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4206 Advance for recurrent expenditures from next year's budget
4207 Advance for capital expenditures from next year's budget
4208 Advance to regions
4209 Other advances to BI
4210 Other advances within government
4251 Advance to contractors
4252 Advance to consultants
4253 Advance to suppliers
4254 Other advances outside government
4271 Peasant associations
4272 Cooperatives
4273 Individuals and private organizations
4274 Others
Total (To Trial Balance)
Prepared by Name and Signature
(Source: MOFED and DSA Project Manual, January 2002)
1.6. Payables Report
The payables report provides information on the year-to-date payables owed by an accounting
unit. The purpose of the payables report is to facilitate consolidation of the actual payables owed
by the FGE or regional state. The accountant prepares a payables report for the accounting unit.
The source document to prepare the payables report is the general ledger. Each payable item is
identified by account code and the amount from the balance column in the general ledger card is
transcribed into the payables report. The grand totals from each payables report are carried
forward to the trial balance. Balances in the payables report are normally credits. One payable
report is prepared for each accounting unit (MOFED and DSA Project manual, December 2002).
1.7. Trial Balance
The trial balance is the summary of the net cumulative debit and credit balances contained in the
general ledger at the end of each month for each account code represented by a general ledger
card. The trial balance proves the arithmetical accuracy of the general ledger. The total amount
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of the debit column must equal the total amount of the credit column in the trial balance. The
trial balance serves as a basis to produce financial statements. The accountant prepares the Trial
balance for each Accounting Unit (MOFED and DSA Project, December 2002).
According to MOFED and DSA Project also, the source documents to prepare the Trial Balance
are:
Revenue/Assistance/Loan Report,
Recurrent Expenditure Report,
Capital Expenditure Report,
Transfer Report,
Receivables Report,
Payable Report, and
The General Ledger.
Please note that in profit-making organizations, trial balances are prepared directly from the
general ledger accounts and each account will be listed in the trial balance as long as it has a
balance. However, in FGE system of accounting, the trial balance is prepared from the reports
already produced for it facilitates the process and provide pertinent figures for the period end
reports. In addition to the reports mentioned above, some balance amounts are directly taken
from the general ledger accounts. The account codes that are taken from the general ledger
directly to the trial Balance are:
Letters of Credit - balances in each account should be credits.
Net Assets/Equity - balance should be credit.
Cash and Cash Equivalents - balances in each account should be debits.
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Trail Balance Fugger
Me/He 27
Month________
Name of Public Body: ____________________ Code: ______
Name of Program: _______________________ Code: _____
Name of Sub Agency: ____________________ Code: _____
Name of Sub Program: ___________________ Code: _____
Name of Project: ________________________ Code: _____
Bank Account Number ___________________
Code Account Description Debit Credit
- Revenues/Assistance/Loan: (from Revenue/Assistance/Loan
Report)
- Expenditures:
- Recurrent expenditure (Total of Recurrent Expenditure
Reports)
- Capital expenditure (Total of Capital Expenditure Reports)
- Transfers: (from Transfer Report)
- Receivables: (from Receivables Report)
- Payables: (from Payables Report)
Letters of Credit: (by account code-from General Ledger)
5601 Net Assets/Equity (from General Ledger)
Cash and Cash Equivalents (by account code-from General
Ledger)
4101 Cash on hand
4102 Cash at bank in foreign currency
4103 Cash at bank
TOTAL
Prepared by Name & Sig. Checked by Name & Sig. Authorized by Name & Sig.
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Submitting Monthly Reports to the Ministry of Finance and Economic Development
Monthly reports will be prepared and submitted to concerned body or Ministry of Finance and
Economic Development within two weeks of the last day of the month by all Accounting Units.
All transactions that occur during a month should be recorded daily on the Transaction Register
and into the appropriate General and Subsidiary Ledgers. However, if some transactions for the
month are not entered into the Transaction Register by the end of the month, they will not be
included in the report of the specified month.
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