Chapter Four

Monthly Reports

1
 2

 1.1 Revenue/Assistance/Loan Report

 According to MOFED manual, the only monthly reports
verified by Ministry of Finance and Economic Development
are 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.
 3

 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.
 4

 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.
 5

 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 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.
 6

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

 7

 Example 1:
 You are provided with the following general ledger balances
as at May 31, 2004 for Ethiopian Civil Service College with
budget category 319/01/07/00/000/1800 and bank account
[Link], assume also that you are the accountant
of the college.
 Required: Based on the below data, you are required to
prepare the monthly reports for the month of May, 2004
except capital expenditure and transfer report part II. Begin
with the preparation of
revenue/assistance/loan report for example
 8

Account General Ledger

Code Debit Credit
1101 6750
1415 750
1429 1000
1485 500
4001 57550
4002 33450
4005 9600
4009 2750
4055 6750
4101 22850
4103 3100
4203 9600
5004 19850
611 67500
6131 4050
6213 7000
6217 15000
6241 1950
6257 1200
6258 600
6259 600
 9

Solution:
Revenue/Assistance/Loan report
Me/He 21
Month __May ________
Name of Public Body:___ ECSC________________ code: __319_____
Name of Program:___________________________ code: ____01___
Name of Sub Agency:________________________ code: ___07____
Name of Sub Program: ________________________code: __00_____
Name of Project: _____________________________code: _000______
Bank Account Number:___10645839____________________

Account YEAR-TO-DATE
Code Account description Revenue
Debit Credit
1101 Tax on wages and salaries 6750
1415 Court fees 750
1429 Other fees and charges 1000
1465 Interest on loans to government employees
1485 Other miscellaneous revenue 500
Total (To Trial Balance) 9000

Prepared by Name and Signature

 10

 1.2. 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 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.
 11

 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.
 The format of the report is indicated below.
 12

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

 13

 Example 2:
 Based on the data given on Example 1, prepare the
Recurrent Expenditure report
 14
Solution:

Recurrent Expenditure Report

Me/He 22
Month___May________
Name of Public Body:____ECSC____________________ code: __319_____
Name of Program:___________________________ code: __01_____
Name of Sub Agency:________________________ code: __07_____
Name of Sub Program:________________________code: __00_____
Name of Project:_____________________________code: __000_____
Source of Finance:____________________________ code: _1800______
Bank Account Number:___10645839____________________

Account YEAR-TO-DATE
Code Account Description Expenditure
Debit Credit
6111 Salary to permanent staff 67500
6131 Gov’t contribution to perm. Staff-pension 4050
6241 Maintenance and repair of vehicles 1950
6257 Electricity charges 1200
6213 Printing 7000
6258 Telecommunication charges 600
6259 Water and other utilities 600
6217 Fuel and lubricants 15000
Total (To Trial Balance) 97900

Prepared by Name an Signature

 15

 1.3Capital Expenditure Report

 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.
 16

 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.
 17

Figure 1.3: 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

 18

 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.
 19

 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.
 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.
 20
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

 21

 Example 3:
 Based on the data given in Example 1, you are required to
prepare the Transfer Report Part I.
 22
Solution:
Transfer Report - Part 1

Me/He 24 Month___May_______
Name of Public Body:____ECSC________________ code: _319______
Name of Program:___________________________ code: ___01____
Name of Sub Agency:________________________ code: ___07____
Name of Sub Program: ________________________code: _00______
Name of Project :_____________________________code: _000______
Bank Account Number:___10645839____________________

Account YEAR-TO-DATE
Code Account Description Balance
Debit Credit
4001 Recurrent salary and allowances 57550
4002 Recurrent operating expenditure 33450
4003 Capital salary and allowances
4004 Capital expenditure
4005 Staff advances 9600
4006 SSDP funds
4007 Grace period payables
4008 Between BI and/or Region
4009 Other cash transfers 2750
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 6750
Total (To Trial Balance) 2750 107350

Prepared by Name and Signature

 23

 Part 2
 Each cash transfer during the month between the accounting
Unit and Ministry of Finance and Economic Development is
listed individually in Part 2 of the Transfer Report. The
information required for Part 2 is transcribed from the
following cash transfer account Ledger cards:
 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
 Any other transfer code used during the month to transfer Funds to
/from MOFED
 24

 Columns are identified by account code.

 The date and amount of each transaction recorded in the
account code's Ledger card during the month are transcribed
in the corresponding sub-column of the Transfer report.
 Each transaction is recorded in a separate row.
 Transfers received from Ministry of Finance and Economic
Development are credits.
 Transfers of cash to Ministry of Finance and Economic
Development are debits.
 Debit and credit sub-columns are totaled and the total is
recorded in the total row.
 25

 The difference between the totals in the debit and credit

sub-columns for each account code is calculated.
 If the total of debits is greater than the total of credits, the
difference is recorded in debit sub-column of the Net
activity row.
 If the total of credits is greater than the total of debits, the
difference is recorded in credit sub-column of the Net
activity row.
 26

 The balance from the account code's Ledger Card at the

beginning of the month is recorded in the beginning of
month (BOM Balance) row.
 The amount in the Net Activity row is combined with the
amount in the BOM Balance row and recorded in the end of
month (EOM Balance) row.
 The EOM Balance must equal the balance in the account
code's Ledger Card at the end of the month, which equals
the balance recorded for the account code in Part 1 of the
Transfer Report.
 27

Transfer Report - Part 2 is shown in Figure 1.5

Figure 1.5: Transfer Report - Part 2

Me/He 24

4001 4002 4003 4004

D De Cre Dat De Cre Da De Cre Da De Cred
at bit dit e bit dit te bit dit te bit it
e

Total
Net
activity
BOM
Balance
EOM
Balance
 28

Figure 1.5 (Continued)

4005 4006 4007

Da De Cre Dat De Cre Da De Cre Da De Cred
te bit dit e bit dit te bit dit te bit it

Total
Net
activity
BOM
Balance
EOM
Balance
 29

 [Link] 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.
 30

 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.
 31

Figure 1.6: 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
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

 32

 Example 4:
 Based on the data provided in Example 1, you are required
to prepare receivable report.
 33

Solution:
Receivables Report

Me/He 25
Month__May________
Name of Public Body: _________ECSC_____________ code: _319______
Name of Program:___________________________ code: ____01___
Name of Sub Agency:________________________ code: ___07____
Name of Sub Program: ________________________code: __00_____
Name of Project :_____________________________code: __000_____
Bank Account Number:___10645839____________________

Account YEAR-TO-DATE
Code Account Description Receivables
Debit Credit
4201 Suspense
4202 Cash shortage
4203 Advance to staff 9600
4204 Advance for SSDP
4205 Advance for staff from next year's budget
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) 9600

Prepared by Name and Signature

 34

 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.
 35

Figure 1.7: Payables Report

Me/He 26 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:___________________

YEAR-TO-
Account Account Description DATE
Code Payables
Debit Credit
5001 Grace period payables
5002 Sundry creditors
5003 Pension contribution payable
5004 Salary payable
5021 Due to staff
5022 Due to Ministry of Finance and Economic Development for
SSDP
5023 Due to Ministry of Finance and Economic Development for
staff from next year’s budget
5024 Due to Ministry of Finance and Economic Development for
recurrent expenditures from next year’s budget
5025 Due to Ministry of Finance and Economic Development for
capital expenditures from next year’s budget
5026 Due to regions
5027 Other payables to Ministry of Finance and Economic
Development
5028 Other payables within government
5051 Custom deposits
5052 Court deposits
5053 Hospital deposits
5054 Other deposits
5061 Retention on contract
Total (To Trial Balance)

Prepared by Name and Signature

 36

Example 5:
Based on the information given in Example 1, you are required to prepare the Payables report.

Solution:
Payables Report
Me/He 26 Month__May_________
Name of Public Body: ______ECSC_________Code: _319____
Name of Program: _______________________ Code: __01___
Name of Sub Agency: ____________________ Code: _07____
Name of Sub Program: ___________________ Code: _00____
Name of Project: _______________________ Code: _000____
Bank Account Number_____10645839_____
YEAR-TO-
Account Account Description DATE Payables
Code
Debit Credit
5001 Grace period payables
5002 Sundry creditors
5003 Pension contribution payable
5004 Salary payable 19850
5021 Due to staff
5022 Due to Ministry of Finance and Economic Development for SSDP
5023 Due to Ministry of Finance and Economic Development for staff
from next year’s budget
5024 Due to Ministry of Finance and Economic Development for
recurrent expenditures from next year’s budget
5025 Due to Ministry of Finance and Economic Development for capital
expenditures from next year’s budget
5026 Due to regions
5027 Other payables to Ministry of Finance and Economic Development
5028 Other payables within government
5051 Custom deposits
5052 Court deposits
5053 Hospital deposits
5054 Other deposits
5061 Retention on contract
Total (To Trial Balance) 19850

Prepared by Name and Signature

 37

 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 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.
 38

 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.
 39

 Please note that in profit-making organizations, trial balances

are prepared directly form 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.
 40

Figure 1.8: Trail Balance

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.
 41

Example 6:
Based on the data given in activity 1, you are required to prepare the monthly trial balance.

Solution:
Trail Balance

Me/He 27
Month_ May_______
Name of Public Body: ____ECSC___________Code: __319____
Name of Program: _______________________ Code: ___01__
Name of Sub Agency: ____________________ Code: __07___
Name of Sub Program: ___________________ Code: ___00__
Name of Project: ________________________ Code: __000___
Bank Account Number __10645839_________________
Code Account Description Debit Credit
Revenues/Assistance/Loan: (from Revenue/Assistance/Loan report 9000
Expenditures:
Recurrent expenditure (Total of Recurrent Expenditure Reports) 97900
Capital expenditure (Total of Capital Expenditure Reports)
Transfers: (from Transfer Report) 2750 107350
Receivables: (from Receivables Report) 9600
Payables: (from Payables Report) 19850
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 22850
4102 Cash at bank in foreign currency
4103 Cash at bank 3100
TOTAL 136200 136200

Prepared by Name & Sig. Checked by Name & Sig. Authorized by Name & Sig.
 42

 1.8. 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.
 43

 Ifthere is a reporting entity that is distinct from the accounting

unit, the reports must be sent to the reporting entity before the
end of the second week of the month.
 The reporting entity should:
 Verify the mathematical accuracy of all reports.
 Verify that totals in the revenue/assistance/loan report,
recurrent expenditure report, capital expenditure report,
transfer report, receivables report, and payable report are
carried forward to the trial balance.
 Verify that the end of month balance in Part 2 of the transfer
report is carried forward to part 1 of the transfer report.
 Visit any accounting unit that does not report within two
weeks and assist in the preparation of monthly reports.
 44

 The reporting entity does not consolidate reports.

 The reports from the accounting units are forwarded to
Ministry of Finance and Economic Development intact.
 The reporting entity is required to send their monthly
reports to the MoFED during the third week of the month.
 Central Accounts Department at Ministry of Finance and
Economic Development will:
 Verify the mathematical accuracy of all reports.
 Verify that totals in the revenue/assistance/loan report,
recurrent expenditure report, capital expenditure report,
transfer report, receivables report, and payable report are
carried forward to the trial balance.
 45

 Verify that the EOM Balance in Part 2 of the transfer

report is carried forward to part 1 of the transfer report.
 Reconcile individual transfers recorded on the transfer
report with its records.
 Visit any reporting entity that does not report within three
weeks to identify and assist with monthly reporting.
 Prepare and distribute various reports for FGE.
 Consolidate balances for each account into a FGE
Financial Statement.
 Chapter Five

Financial
Statements
46
 47

 The financial statements presented are intended to meet the

needs of users who are not in a position to demand reports
tailored to meet their specific requirements.
 These users include stakeholders such as members of the
legislature, donors, lenders, tax payers and employees.
 The objective of the financial statements is to provide
information about the financial position, performance and
cash flows that is useful in making and evaluating decisions
about the sources, allocation and uses of financial resources
and about how the activities were financed.
 In addition, the financial reporting also provides users with
information about whether resources were used in
accordance with the approved budget
 48

 Transparency in government begins with full and fair

disclosure of financial information.
 The FGE uses the International Public Sector Accounting
Standards (IPSAS) issued by the Public Sector Section of
the International Federation of Accountants as a basis for
establishing the financial statements.
 49

 The FGE accounting system can produce the following set of financial
statements:
 A set of federal-level financial statements that includes:
 Statement of Financial Position
 Statement of Financial Performance
 Statement of Changes in Net Assets/Equity
 Cash Flow Statement
 Accounting Policies and Notes to Financial Statements
 Statement of Comparison of Budget and Actual Amounts – Domestic
Revenue
 Statement of Comparison of Budget and Actual Amounts – External
Assistance
 Statement of Comparison of Budget and Actual Amounts –
Expenditure
 Comparison of Original and Adjusted Budget and Actual Amounts
 Statement of Expenditure by Functional Classification
 50

 A set of countrywide financial statements that includes:

 Summary Statement of Domestic and External Revenues
 Summary Statement of Expenditure
 Summary Statement of Expenditure and its Statement.
 In addition to the above financial statements, the accounting
system also produces detailed revenue and expenditure
schedules that provide detailed information and analysis of
the summary countrywide financial statements.
 The remainder of this chapter describes the format of each
financial statement.
 51

GOVERNMENT OF ETHIOPIA

Statement of Financial Position

As at 7 July 20X2

Ethiopian Birr '000

Notes 20X2 20X1

ASSETS (CURRENT)
Cash and cash equivalents 1 0 0
Receivables 2 0 0

Total Assets 0 0

LIABILITIES(CURRENT)
Current Liabilities - Payables 3 0 0

Total liabilities 0 0

Net Current
Assets/(Liabilities) 0 0

NET ASSETS/EQUITY
Accumulated surpluses/deficits 0 0
 52

GOVERNMENT OF ETHIOPIA
Statement of Financial Performance
For the year ended 7 July 20X2
Ethiopian Birr '000
Notes 20X2 20X1
OPERATING ACTIVITIES
Operating Revenue
Tax revenues 4 0 0
Non-tax revenues 5 0 0
Subsidies 6 0 0
Municipality revenues 7 0 0
Other revenue 8 0 0
Total operating revenue 0 0

Operating Expenses
Subsidies 0 0
Personnel services 9 0 0
Goods and services 10 0 0
Fixed assets and construction 11 0 0
Other expenses 12 0 0
Total operating expenses 0 0

Surplus/(deficit) from operating activities 0 0

NON OPERATING ACTIVITIES

External assistance 13 0 0
External loans 14 0 0
Capital revenue 15 0 0
Debt repayments - principal 16 (0) (0)
Finance costs 17 (0) (0)

Surplus/(deficit) from non operating activities 0 0

Surplus/(deficit) for the year 0 0

 53

GOVERNMENT OF ETHIOPIA
Statement of Changes in Net Assets/Equity
For the year ended 7 July 20X2

Ethiopian Birr '000

Balance at 7 July 20X1 0

Changes in accounting
policy/Fundamental errors 0

Restated balance 0

Net surplus/(deficit) for the year 0

Balance as at 7 July 20X2 0

 54

GOVERNMENT OF ETHIOPIA
Cash Flow Statement
For the year ended 7 July 20X2
Ethiopian Birr '000 20X2 20X1
1 CASH FLOW FROM OPERATING ACTIVITIES
Tax revenues 0 0
Non tax revenues 0 0
Other income 0 0
Miscellaneous income 0 0
Municipality revenues 0 0
Regional subsidy 0 0
Total Receipts - A 0 0
Personnel services 0 0
Goods and services 0 0
Finance charges 0 0
Subsidies 0 0
Other expenses 0 0
Total Payments - B 0 0
Non Cash Movements
Increase/(Decrease) in payables 0 0
Increase/(Decrease) in receivables 0 0
Total Non Cash Movements - C 0 0

Net Cash Flow fromOperating Activities 0 0

 55

2 CASH FLOW FROM INVESTING ACTIVITIES

Sale of assets 0 0
Sale of equity 0 0
Repayment of borrowings to government 0 0
Privatization proceeds 0 0
Capital receipts from non government 0 0
Total Receipts (A) 0 0
Fixed Assets and Construction 0 0
Govt. lending or equity investments 0 0
Total Payments (B) 0 0

Net Cash Flow fromInvesting Activities 0 0

 56

GOVERNMENT OF ETHIOPIA
Cash Flow Statement
For the year ended 7 July 20X2
Ethiopian Birr '000
20X2 20X1
3 CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from external assistance 0 0
Proceeds from external loans 0 0
Total Receipts (A) 0 0

Debt repayments – external Total Payments (B) 0 0

Net Cash Flow fromFinancing Activities 0 0

4 NET INCREASE/(DECREASE) IN CASH &CASH EQUIVALENTS 0 0

5 Cash and Cash Equivalents at Beginning of Year 0 0

6 Net Increase/(Decrease) in Cash Equivalents During the Year 0 0

7 Cash and Cash Equivalents at End of Year 0 0

 57

GOVERNMENT OF ETHIOPIA
Accounting Policies and Notes to Financial Statements

Notes to Financial Statements

Ethiopian Birr ‘000

1 Cash and Cash Equivalents 20X2 20X1
Domestic currency
Foreign currency
Budget support
Counterpart funds
SSDP
Cash in transit
Sinking fund
Others

Domestic currency refers to local currency held in a safe as well as in a bank account. Foreign
currency is cash held in a bank account denominated in foreign currency. Budget support refers to
cash from a foreign source held in a bank account available for unrestricted general budgetary
support. Counterpart funds refer to grants held in a bank account reserved for specific program
support.
 58

2 Receivables

Advances
Prepayments
Others ___________ ______

Advances represent amounts due from government entities and staff. Prepayments represent
amounts due from suppliers, contractors and consultants. Others represent amounts due from
peasant associations, cooperatives, individuals, private organizations and others.
 59

GOVERNMENT OF ETHIOPIA
Accounting Policies and Notes to Financial Statements

Notes to Financial Statements

Ethiopian Birr ‘000

3 Payables 20X2 20X1

Accounts Payable
Payables within Government
Direct advances
Treasury bills
Deposits
Retentions ___________ ______
Accounts payables represent grace period payables, sundry creditors, pension contributions
payable, salary payable and other payroll deductions. Payables within government represent
amounts due to government entities and staff. Deposits represent customs, court, hospital bid
bond, VAT and other deposits.
 60

 [Link] Revenues
 Tax revenues are legally mandated payments to
government.
 Tax revenues represent taxes on income, profits and capital
gains, value added tax and sales turnover tax on
domestically manufactured goods and services, excise tax
and foreign trade taxes which include excise tax, value
added tax, customs and export duties.
 The breakdown of tax revenues by revenue item is provided
in the statement of comparison of budget and actual
amounts – domestic revenue.
 61

5 Non Tax Revenues

 Non-tax revenues represent administrative fees and charges,
sales of goods and services and miscellaneous revenues.
 The breakdown of non tax revenues by revenue item is
provided in the statement of comparison of budget and
actual amounts – domestic revenue.
 62

 6. Subsidies
 Subsidy revenue represents treasury funds received by
regions from the federal government to execute their
recurrent and capital budgets and subsidy expense
represents treasury funds transferred by the federal
government to regions to execute their recurrent and capital
budgets.
 7. Municipality Revenues
 Municipality revenue represents different types of
municipal taxes, municipal rents and service charges and
sale of goods and municipal services.
 63

 8. Other Revenues
 Other revenue represents government investment income
including dividend income, residual surplus and capital
charges. The breakdown of other revenues by revenue item
is provided in the statement of comparison of budget and
actual amounts – domestic revenue.
 64

 9. Personnel Services
 Personnel services represent government pension
contributions made to pension funds and salaries, wages,
allowances/benefits paid to permanent, contracted,
externally contracted and casual staff.
 The breakdown of personnel services by expense item is
provided in the statement of comparison of budget and
actual amounts – expenditure.
 65

 10. Goods and Services

 Goods and services represent expenditure incurred on goods
and supplies, traveling, maintenance and repairs, training,
stocks of emergency and strategic goods and contracted
services.
 The breakdown of goods and services by expense item is
provided in the statement of comparison of budget and
actual amounts – expenditure.
 66

 11. Fixed Assets and Construction

 Fixed assets and construction represent expenditure incurred
in the acquisition of fixed assets and the pre-construction
and construction of buildings and infrastructure.
 The breakdown of fixed assets by expense item is provided
in the statement of comparison of budget and actual
amounts – expenditure.
 67

 12. Other Expenses

 Other expenses include contingency and miscellaneous
payments, compensation to individuals and institutions,
government investments, grants to institutions, and
contributions to international organizations.
 The breakdown of other expenses by expense item is
provided in the statement of comparison of budget and
actual amounts – expenditure.
 68

 [Link] Assistance
 External assistance represents the amounts contributed by
donors as grants and are recognized as revenue on receipt of
funds.
 The breakdown of external assistance by donor is provided
in the statement of comparison of budget and actual
amounts – external assistance.
 69

 14. External Loans

 External loans represent amounts received from external
lenders as loans during the fiscal year and are recognized as
revenue on receipt of funds directly or payments to
suppliers on behalf of the government.
 The breakdown of external loans by lenders is provided in
the statement of comparison of budget and actual amounts –
external loans.
 70

 15. Capital Revenues

 Capital revenue represents proceeds from the privatization
of state owned enterprises, sale of fixed assets, stocks and
intangible assets and amounts received from non-
governmental sources for capital purposes.
 The breakdown of capital revenues by item of revenue is
provided in the statement of comparison of budget and
actual amounts – domestic revenue.
 71

 16. Debt Repayments

 Debt repayments to domestic and external lenders represent
the principal amounts repaid during the year and are
recognized as expenditure.
 The breakdown of debt repayments by internal and external
debt is provided in the statement of comparison of budget
and actual amounts – expenditure.
 72

16 Finance Costs

Finance costs represent payments of bank charges and interest on external and domestic debt.

17 Long Term Foreign Loans

20X2 20X1
At the beginning of the year 0 0
Additions 0 0
Amounts written off 0 0
Repayments 0 0
Exchange Differences 0 0
At the end of the year 0 0

The amounts falling due for repayment within the next 12 months amount to Birr …..

Details of the lenders, date of obtaining loan, amount due in foreign currency and the period of
repayment are detailed below:

Name of Lender Date of loan Amount Due Period

 73

16 Long Term Domestic Loans

20X2 20X1

At the beginning of the year 0 0

Additions 0 0
Repayments 0 0
At the end of the year 0 0

Maturity Analysis
Due within 1 year 0 0
Due within 2 to 5 years 0 0
Due after more than 5 years 0 0

The loans represent long term bonds issued.

 74

 20. Comparison of Budget and Actual Amounts –

Domestic Revenue
 The causes for material differences between the actual
amounts and the budget amounts are detailed below by item
of revenue:
 21. Comparison of Budget and Actual Amounts –
Expenditure
 The causes for material differences between the actual
amounts and the budget amounts are detailed below by item
of expenditure:
 75

 22. Contingent Liabilities

 A list of contingent liabilities, explaining its type, nature
and circumstances should be provided together with a
reliable estimate of the probable amount.
 23. Other Notes
 Any other notes and disclosures that MOFED may decide to
include as part of the financial statements.
 76

 Accounting Policies
 The principal accounting policies of the Government, which
are set out below, have been applied consistently throughout
the period.
 BASIS OF ACCOUNTING
 The financial statements have been prepared on the historical
cost basis using a modified cash basis of accounting that
recognizes the following non-cash transactions:
 Revenue is recognized when:
 Aid in kind is received.
 Payroll is processed (income tax and employee fines)
 Salary advance is made to an employee (interest on salary
advances)
 Withholding tax is deducted from the amount due to a supplier
 77

 Expenditure is recognized when:

 Payroll is processed (salary and pension expenses)
 Aid in kind is received
 Goods are received or services are rendered
 At the end of the year, a grace period payable is accounted for.
 Intergovernmental transfers are recognized without actual cash
movement
 Amounts borrowed using treasury bills and direct advances from
the National Bank of Ethiopia are recognized as current liabilities
 REVENUE
 Revenues are recognized on receipt of amounts except as stated
above.
 FINANCE COSTS
 Finance costs are recognized as an expense in the period in which
they are paid.
 78

 TRANSLATION OF FOREIGN CURRENCIES

 Transactions denominated in foreign currencies are
translated into Ethiopian Birr at the rates of exchange ruling
at the date of the transaction.
 Cash and bank balances that are denominated in foreign
currencies are translated at the rates of exchange ruling at
the year end and the exchange gains/loss arising from such
translation are recognized as revenue/expenditure
respectively.
 CONSOLIDATION
 The accounts of controlled entities are not consolidated– for
example Ethiopian Airlines and Ethiopian
Telecommunications Corporation.
 79

GOVERNMENT OF ETHIOPIA
Statement of Comparison of Budget and Actual Amounts - Domestic Revenue
for the year ended 7 July 20X2
Ethiopian Birr '000
20X2 20X1
Budget Actual Variance Budget Actual Variance
OPERATING REVENUE
Tax revenues
Tax on income, profit and capital gains
Value Added Tax on goods & services
Excise Tax
Sales turnover tax on goods & services
Stamp sales and duty
Customs Duty on imported goods
Excise Tax on imported goods
Value Added Tax on imported goods
Export Duties
Timber Tax
Municipality Tax revenue
Total tax revenues
Non-tax revenues
Administrative fees and charges
Sales of public goods and services
Miscellaneous revenue
Municipality revenues
Total non-tax revenues
Subsidies
External assistance
External loans
Total operating revenues
 80

GOVERNMENT OF ETHIOPIA
Statement of Comparison of Budget and Actual Amounts - Domestic Revenue
for the year ended 7 July 20X2
Ethiopian Birr '000
20X2 20X1
Budget Actual Variance Budget Actual Variance
Other revenues
Government investment income
Dividend income
Residual surplus
Interest income and capital charges
Total government investment income
Contribution to pension funds
Capital revenue
Sale of properties, stock and intangible assets
Privatization proceeds
Capital transfers from non-governmental sources

Collection of principal from on-lending

Municipality capital and investment revenue
Total capital revenues
Total other revenues
TOTAL REVENUE
 81

GOVERNMENT OF ETHIOPIA

Statement of Comparison of Budget and Actual Amounts - External Assistance

for the year ended 7 July 20X2

Ethiopian Birr '000

20X2 20X1
Adjusted Adjusted
Budget Actual Variance Budget Actual Variance
External Assistance
List of donors
0 0 0 0 0 0

Total 0 0 0 0 0 0
 82

GOVERNMENT OF ETHIOPIA

Statement of Comparison of Budget and Actual Amounts - External Loan

for the year ended 7 July 20X2

Ethiopian Birr '000

20X2 20X1
Adjusted Adjusted
Budget Actual Variance Budget Actual Variance
External Loan
List of lenders
0 0 0 0 0 0

Total External Loan 0 0 0 0 0 0

 83

GOVERNMENT OF ETHIOPIA

Statement of Comparison of Budget and Actual Amounts - Expenditure

for the year ended 7 July 20X2

Ethiopian Birr '000

20X2 20X1

Adjusted Adjusted

PERSONNEL SERVICES Budget Actual Difference Budget Actual Difference

Emoluments

Salaries to permanent staff 0 0 0 0 0 0

Salaries to military staff 0 0 0 0 0 0

Wages to contract staff 0 0 0 0 0 0

Wages to casual staff 0 0 0 0 0 0

Wages to external contract staff 0 0 0 0 0 0

Miscellaneous payments to staff 0 0 0 0 0 0

Total 0 0 0 0 0 0
 84
GOVERNMENT OF ETHIOPIA
Comparison of Original and Adjusted and Actual Amounts

for the year ended 7 July 20X2

Ethiopian Birr '000

Original Adjusted
Variance Actual Variance
Budget Budget

6100 PERSONNEL SERVICES

6110 Emoluments

6120 Allowances/benefits

6130 Pension contribution

6200 GOODS AND SERVICES

6210 Goods and supplies

Traveling and official entertainment
6230
services
6240 Maintenance services

6250 Contracted services

6270 Training services

Stocks of emergency and strategic

6280
goods
FIXED ASSETS AND
6300
CONSTRUCTION
6310 Fixed assets

6320 Construction

6400 OTHER PAYMENTS

6410 Subsidies, investments and payments

6000 TOTAL
 85

GOVERNMENT OF ETHIOPIA
Statement of Expenditure by Functional Classification
for the year ended 7 July 20X2
Ethiopian Birr '000

Administration & General Services Economic Services Social Services Others

Total
100 200 300 400
Code Category and Sub-Category

Adjusted Adjusted Adjusted Adjusted

Actual Variance Actual Variance Actual Variance Actual Variance Budget Actual Variance
Budget Budget Budget Budget

6100 PERSONNEL SERVICES

6110 Emoluments

6120 Allowances/Benefits

6130 Pension Contributions

6200 GOODS AND SERVICES

6210-20 Goods and Supplies

6230 Travel & Entertainment

6240 Maintenance & Repair

6250 Contracted Services

6270 Training Services

Stocks of Emergency &

6280
Strategic Goods
 86

GOVERNMENT OF ETHIOPIA
Summary Statement of Domestic and External Revenues
For the year ended 7 July 20X2

ITEM OF REVENUE

Ethiopian Birr ‘000

A. ORDINARY REVENUE
Direct Tax

Indirect Tax
Taxes on Foreign Trade
Government Investment Income
Other Revenue
Total Ordinary Revenue

B. EXTERNAL ASSISTANCE
Counter Part Fund Grants
Technical Assistance
Total External Assistance

C. CAPITAL REVENUE
Domestic Sources
Counter Part Fund Credit
External Loan
Total Capital Revenue

D. DOMESTIC BORROWING

GRAND TOTAL
 87
GOVERNMENT OF ETHIOPIA
Summary Statement of Expenditure
For the year ended 7 July 20X2
Ethiopian Birr ‘000
Particulars Recurrent Expenditure Capital Expenditure Subsidies Total
Administrative & General Service: 100 series
Organs of State
Justice and Security
National Defense
General Services
Others:

Economic Services: 200 series

Agriculture & Rural Development
Water Resources
Trade and Industry
Mines and Energy
Transport and Communication
Construction
Others:

Social Services: 300 series

Education
Information and Communication
Culture and Sport
Health
Labor and Social Affairs
Prevention and Rehabilitation
Others:

Other Expenditures: 400 series

Transfers
Subsidies to regions
Debt
Contingencies and Bank Charges
Miscellaneous
Others:

Grand Total
 88

GOVERNMENT OF ETHIOPIA
Summary Statement of Expenditure and its Financing
For the year ended 7 July 20X2

Ethiopian Birr ‘000

1. EXPENDITURE

A. Recurrent Expenditure
A dministrative and General Service
Economic Service
Social Service
Other Service
Total Recurrent Expenditure
B. Capital Expenditure
Economic Development
Social Development
General Development
Other Development
Total Capital Expenditure
C. Subsidy to Regions
Total Expenditure

2. FINANCING

A. Domestic Revenue:
Tax Revenue
Non Tax Revenue
Total Domestic Revenue
B. External A ssistance:
Counter Part Fund A ssistance
Technical A ssistance
Total External Assistance
C. Borrowings:
External Loan & Credit
Counter Part Fund Credit
Project Loan
External Loan Total
Domestic Loan
Direct A dvance N.B.E.
Treasury Bills
Deposit & Other A ccount Balances
Net Domestic Loan & Other Deposit A ccounts
Grace Period Credits
Total Borrowing
Total Financing
 Chapter 6

Financial
Administration in FGE
Accounting System
89
 90

 The financial administration in FGE mainly involves

Ministry of Finance and Economic Development (MOFED)
and Regional Finance and planning offices and a Public
Body.
Figure 1.2 Shown the structure of financial administration in the budget process.

Figure 1.2: SRTUCTURE OF FINANCIAL ADMINISTRATION IN

THE BUDGET PROCESS

Ministry of Finance and Economic Development

Public Body

Budgetary Institution: Project

ACCOUNTING UNIT
or Sub-Agency
 91

FIGURE 1.1 shows this administrative structure.

FIGURE 3.1 STRUCTURE OF FINANCIAL ADMINISTRATION WITHIN A PUPLIC BODY

Head of Public Body

Head of Administration and Finance

Head of Budget and General Service

Accounts

Budget Section
Accounts Section

The remaining sections in this chapter include an overview of the roles and responsibility of
MoFED and PBs in the FGE accounting system.

Programs
Accountant Cashier
Programs
Planning is conceived in terms of programs and encompasses periods of up to three years. A
 92

 The following are responsibilities of MOFED, Budgetary Institutions,

Accounting unit, Reporting Entity, Cashier and Accountant in the
financial administration in the Budget process and within the Public Body

 Ministry of Finance and Economic Development (MOFED)

 MOFED administers the financial system for the federal government and
has the highest level of administrative authority. MOFED consists of a:
 Budget Department that prepares and distributes notification of approved
federal budgets and administers the budget.
 Central Accounts Department that receives monthly repots and compiles
financial statements for the federal government.
 Central Treasury Department that receives and distributes cash from central
treasury.
 Credit and Investment Department that manages the federal government's
investments and debt.
 This is not a complete description of MOFED or its departments. This is
description of their roles and responsibilities within the accounting
system.
 93

 Budgetary Institution (BI)

 Budgetary Institutions are defined as those institutions that
are fully or partially financed by Government.
 The budget process assumes the appropriation of budgets.
The appropriated budget is the budget approved by the
Council of people's Representatives (CPR).
 The appropriated budget is broken down by:
 Recurrent and capital expenditure for the federal
government, and
 Subsidy for each regional government
 94

 Accounting Unit
 For cash management, another entity is created: the Bank Account (BA).
 The BA is not coded in the chart of accounts and does not receive a budget.
However, it is important for cash Management and control.
 The FGE accounting system includes the BA in the accounting system.
 A PB may administer many BIs and many BAs, or a PB may have only one
BI and one BA. Each BA:
 Is managed by an accountant.
 May:
 Have its own cashier,
 Share a cashier with other BAs, or
 Have no cashier associated with it (like foreign currency bank
accounts)
 Handles cash flows:
 For one or more than one BI, and
 From one source of financing (domestic, assistance or loan).
 For more than one type of budget (capital/recurrent).
 95

 An accounting unit is the unit that initially captures and

records transactions into the accounting system.
 If a BA handles cash for only one BI(BI/BA), the
accounting unit:
 Processes transactions for the BI/BA,
 Maintains registers for the BI/BA,
 Maintains a general ledger for the BI/BA.
 Maintains subsidiary ledgers for:
 Asset accounts.
 Liability accounts.
 Letters of credit.
 Prepares a monthly report for the BI/BA.
 96

 Reporting Entity
 A reporting entity is the entity that sends monthly reports to
MOFED.
 Although the accounting unit prepares monthly reports, every
accounting unit may not send monthly reports directly to
MOFED.
 Each of the following may apply to a reporting entity:
 A reporting entity may be an accounting unit, and an
accounting unit may consist of only one BI. Therefore, a
single BI may be a reporting entity.
 A reporting entity may be a PB that receives the monthly
reports from several accounting units.
 Whoever sends the reports to MOFED is the reporting entity.
Therefore, the reporting entity is not, necessarily, an
accounting unit.
 97

 Cashier and Accountant

 In the FGE accounting system of cash control, the cashier's
function and the accountant's function are distinct.
 Cash consists of currency and checks.
 The cashier's function is to maintain and control cash in the
safe.
 The accountant's function is to maintain and control cash at
the bank.
 Only the cashier can receive currency and checks and make
disbursements in currency.
 Daily, the cashier should count cash on hand and reconcile
ending cash on hand to the cash book.
 The cash in safe is controlled by an imprest system.
 98

 Public Bodies with Branch Bank Accounts

 Some PB s establishes operations or branches in more than one
location, and opens a bank account at each branch.
 These branch bank accounts do not receive or send transfers
directly to MOFED.
 The public Body uses Branch bank accounts for operations within
the Public Body. They are blocked at the end of the year.
 Some public Bodies maintain other types of bank accounts for
special purposes, such as deposits. These are not blocked at the end
of the year and are not considered branch bank accounts.
 Depending on the capacity of the PB, accounting for the branch
bank account can be handled in one of the two ways:
 If there is sufficient capacity, each branch bank account can be
treated as an accounting unit.
 If there is no sufficient capacity, each branch bank account
can be treated as a safe.
 99

 Branch Bank Account treated as Accounting Unit

 If the branch bank account is treated as an accounting unit:
 A general ledger is established for the branch bank
account
 Cash movements between the main bank account of the
PB and the branch bank account are recorded as transfers,
 Subsidiary ledgers are established for each BI receiving
funds from the branch bank account, and
 A monthly report is prepared and sent to the accounting
unit of the PB's main bank account
 100

 Branch Bank Account treated as a Safe

 If the branch bank account is treated as a safe:
 A cash book is maintained for the branch bank account,
and
 Receipt and payment vouchers are given to the main bank
account's accounting unit.
 The accounting unit of the PB's main bank account does the
following:
 Cash movements between the main bank account of the
PB and the branch bank account are recorded as
advances, and
 Receipt and payment vouchers received from the branch
bank account are recorded in general and subsidiary
ledgers.