NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2018 EXAMINATION

COURSE CODE:   ACC 418                                               

COURSE UNIT: 3

COURSE TITLE:    Public Sector Accounting & Finance

TIME ALLOWED:  2 ½ Hours        

Instructions:     1. Attempt question one (1) and any other (3) questions.

                           2. Question one (1) carries 25 marks, while the other      

                                three (3) questions carry 15 marks each.

1. a.        What is the Consolidated Revenue Fund? How is it different from the Federation Account? (4 Marks)

     b.       The Federal Treasury department supplied the following information for the month of December 2016.

                                                                                                                                                                  N, million

Petroleum profit tax                                                                                                    25,000

Companies Income tax                                                                                  15,000

Import duties                                                                                                                1,500

Excise duties                                                                                                                1,400

Export duties                                                                                                                   800

Education tax                                                                                                                 1,000

Value added tax                                                                                               4,000

Pay As You Earn by:

Armed Forces personnel                                                                                      150

Police Personnel                                                                                                 400

Foreign service Officers                                                                                      300  

Capital gains tax by Non-residents                                                                         60

Royalties on minerals                                                                                                    10,000

Sale of Crude oil by NNPC                                                                             18,000

Arms and ammunition license fees                                                                          50

Dividends from Federal government investment                                        90 

Dividends from investment arising from excess crude oil account           1,000

Collection cost by FIRS and Nigerian Customs service                           3,000

The Federal government’s shares from the Federation account and VAT account are 52.68% and 15% respectively. 4.18% of the Federal government’s share of the federation account is set aside for dedicated funds and this is already included in the Federal government share.

Required:

1. Calculate the total amount of money due to the Federal government from the Federation accounts allocation committee for the month of December, 2016.                                 (15 Marks)
2. Determine the total amount to be paid into Federal government Consolidated revenue fund for the month of December, 2016.       (6 Marks)

(Total =25 Marks)

 2.           ( a)         What are the purposes or objectives of  Public Sector Accounting?    (5 Marks)

(b)          Mention four (4) legal documents introduced by the Nigerian Government between 1999 and 2015 in the development of Public Sector Accounting (4 Marks)

(c)          Highlight the significance of Public Sector Accounting Information to the External and Internal Users.     (6 Marks)

(Total =15 Marks)

(3)          The Local Government is the third tier of Government closest to the grassroots.  

(a)          List the various sources of revenue available to the local governments              (5 Marks)

(b)          Discuss the functions of the Accountant General of the federation.                   (5 Marks)

(c)          Define Development Fund and itemize the sources of revenue as well as charges to this account 5 Marks

(Total =15 Marks)

(4)          Woolf (1994) sees an audit as a process in which the accounts of business entities are scrutinized to enable the auditor to form an opinion as to the truthfulness and fairness of the accounts. The government and its parastatals conduct different types of audits with varying objectives and these determine the types of audit to be conducted.

a.            Discuss four functions of the auditor general of the Federation.         (6 Marks)

b.            Explain six duties expected of an internal auditor in a public sector organization                           (9 Marks)

(Total =15 Marks)

5.            a.             What is the purpose of a public budget?                                         (6 Marks)

              c.            List and explain briefly 4 types of budget that could be adopted by the government (9 marks)

(Total =15 Marks)

6.          The following is a list of some items (Revenue and Expenditure) in respect of Consolidated Revenue Fund (CRF) and other receipts of Federal Republic of Nigeria for the years ended 31 December 2011 and 2012 respectively.

Required: Prepare Consolidated Revenue Fund (CRF) and determine the surplus of Revenue over Expenditure or Deficit of Expenditure over Income.    (Total=15 Marks)