Chapter 4
Monthly Reports
Introduction
After studying this unit, you should be able to:
Prepare Revenue /Assistance/ Loan report;
Prepare recurrent expenditure report;
Prepare capital expenditure report;
Prepare transfer report;
Prepare receivables report;
Prepare payables report; and
Organize necessary data to complete the monthly reports from documents made
available.
1.1 Revenue/Assistance/Loan Report
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 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
(Source: MOFED AND DSA Project manual, December 2002)
1
Activity 1: Preparing Revenue/Assistance/Loan Report
This activity is meant to enable you to prepare Revenue/Assistance/Loan Report.
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 10645839. Further, assume also that you are the accountant of the college.
General Ledger
Account 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
Required: Based on the above 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 activity1.
Feedback:
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
2
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. 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 Code YEAR-TO-DATE
Account Description Expenditure
Debit Credit
Preprinted Preprinted
Total (To Trial Balance)
Prepared by Name an Signature
(Source: MOFED and DSA Project, December 2002)
Activity 2: preparing Recurrent Expenditure Report.
The purpose of this activity is to give you a high light on the fields in the recurrent
expenditure report.
3
Based on the data given on Activity 1, prepare the Recurrent Expenditure report
Feedback:
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 Code YEAR-TO-DATE
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
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.
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:_______________________
4
Account Code YEAR-TO-DATE
Account Description Expenditure
Debit Credit
Preprinted Preprinted
Total (To Trial Balance)
Prepared by Name and Signature
(Source: MOFED and DSA Project manual, December 2002)
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.
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
5
Total (To Trial Balance)
Prepared by Name and Signature
(Source: MOFED AND DSA project, December 2002)
Activity 3: Preparing Transfer Report Part I.
Allow about 15 minutes.
The purpose of this activity is to enable you to prepare the Transfer Report Part I.
Based on the data given in Activity 1, you are required to prepare the Transfer Report Part I.
Feedback:
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
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
6
Any other transfer code used during the month to transfer Funds to /from MOFED
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 (MOFED and DSA Project,
January 2002).
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. 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 (MOFED and DSA Project manual, January 2002).
Transfer Report - Part 2 is shown in Figure 1.5
Figure 1.5: Transfer Report - Part 2
Me/He 24
4001 4002 4003 4004
Da De Cred Date Deb Cred Dat De Cred Dat De Credit
te bit it it it e bit it e bit
Total
Net activity
BOM
Balance
EOM
Balance
Figure 1.5 (Continued)
4005 4006 4007
Dat De Cred Date Deb Cred Dat De Cred Dat De Credit
e bit it it it e bit it e bit
Total
Net activity
BOM
Balance
EOM
Balance
7
(Source: MOFED AND DSA Project, January 2002)
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
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
(Source: MOFED and DSA Project Manual, January 2002)
Activity 4: Preparing Receivable Report. Tan
The objective of this activity is to help you to prepare receivable Report.
Based on the data provided in Activity I, you are required to prepare receivable report.
8
Feedback:
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
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).
9
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-DATE
Account Account Description Payables
Code
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
(Source: MOFED and DSA Project, December 2002)
Activity 5: Preparing Payables Report
The activity is prepared to help you prepare the Payables Report.
Based on the information given in Activity 1, you are required to prepare the Payables report.
Feedback:
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_____
10
YEAR-TO-DATE
Account Account Description 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
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 (MOFED and DSA Project, December
2002).
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 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
11
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
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.
(Source: MOFED and DSA Project December, 2002)
12
Activity 6: Preparing Monthly Trial Balance.
The intent of this activity is to make you familiar with the preparation of the monthly trial
balance.
Based on the data given in activity 1, you are required to prepare the monthly trial balance.
Feedback:
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.
13
