Case Stimulus
The following information relates to one of the ten Local Council Development Authority of Wazobia State.
Trial balance
Ogogo Local Council Development Authority for the year ended December 31, 2023
\begin{array}{l|r|r}
\hline
\textbf{Description} & \textbf{N'000} & \textbf{N'000} \\
\hline
Consultancy cost & 85,500 & - \\
Interest on loan notes & 103,320 & - \\
Interest on financial assets & - & 18,900 \\
Repairs and maintenance & 174,960 & - \\
Conferences & 262,440 & - \\
Commission to revenue collectors & 284,220 & - \\
Office stationaries (1/1/2023) & 329,220 & - \\
Court fines & - & 1,969,200 \\
Donations & - & 1,453,860 \\
Accumulated fund & - & 1,275,660 \\
Gift from Philanthropist & - & 1,054,800 \\
Hawker’s license & - & 668,700 \\
Car Park rates & - & 454,860 \\
Motor vehicles & 1,101,240 & 327,960 \\
Contract retention fee – payables & - & 251,460 \\
Advertisement and promotions for immunisation & - & 207,000 \\
Furniture and fittings & 450,000 & 180,000 \\
Buildings & 2,145,600 & 134,100 \\
Councillors’ allowances & 1,422,000 & - \\
Loans and advances to staff & 372,600 & - \\
Lock-up shops rents & - & 1,540,800 \\
Long-term loan notes & - & 1,355,940 \\
Market tolls & - & 459,900 \\
Marriage and divorce registration & - & 789,120 \\
Warehouse rent & - & 373,500 \\
Special emergency grant from Wazobia & - & 544,680 \\
Open shop licenses & - & 568,620 \\
Withholding tax & - & 817,200 \\
Telecommunication cost & 338,940 & - \\
Other expenses & 461,160 & - \\
Special audit fees & 488,340 & - \\
Purchase of office stationaries & 856,440 & - \\
Printing and publication & 1,189,980 & - \\
Revenue receivable & 3,754,260 & - \\
Salary for non-established post & 4,793,040 & - \\
Salary for established post & 5,671,620 & - \\
Property rate & - & 1,318,140 \\
Payables & - & 1,741,680 \\
Share from federation account & - & 10,574,100 \\
Town-hall meetings & 1,168,020 & - \\
Transport & 984,060 & - \\
Utility bills & 360,720 & - \\
Work-in-progress & 369,360 & - \\
Cash and cash equivalents & 913,140 & - \\
\hline
\textbf{Total} & \textbf{28,080,180} & \textbf{28,080,180} \\
\hline
\end{array}
Additional information:
(i) Included in the work-in-progress is an amount of N36 million relating to a Building which was completed and commissioned by the state Governor on June 1, 2023. After an additional amount of N14.4 million was spent on tiling, the building was put to use for half of the accounting year. This expenditure has not yet been paid.
(ii) Interest on loans to staff is at the rate of 7% per annum.
(iii) Interest on long-term loans is at the rate of 10% per annum.
(iv) Office stationaries and other items bought for N32.4 million remained unused during the year. The fair value of the inventories is now N27.9 million.
(v) Property rates received in respect of 2024 financial year amounted to N36.9 million.
(vi) Salaries outstanding during the year amounted to N13.5 million.
(vii) Other expenses amounting to N19.89 million was paid in respect of 2024 financial year.
(viii) Depreciation of non-current assets is charged on straight line basis for the year as follows:
Assets Useful life
Building 50 years
Furniture and fittings 5 years
Motor vehicles 10 years
The State Government and all Local Council Development Authority have adopted a policy of preparing financial statements in compliance with International Public Sector Accounting Standards (IPSAS) using Accrual Basis.