ICAN 2026 Public Sector Accounting and Finance | Mixed

The following information was obtained from the records of the Office of the Accountant General for the Federal Republic of Obudu for the year ended December 31, 2024. N‘000 Value added receipts 22,950,000 Miscellaneous revenue 3,750,000 Direct tax 105,000,000 Allocation for collection costs to FIRS and custom 30,750,000 Personnel costs 72,000,000 Share of statutory allocation 135,000,000 CRF charges 22,500,000 Grants and subvention from foreign donors 750,000 Rent of federal government properties 2,850,000 Overhead charges 15,000,000 Subvention to parastatals 18,000,000 Sales of federal government properties 3,750,000 Repayment of loans 8,700,000 Purchases and construction of non-current assets 25,000,000 Proceeds from sales of federal government properties 10,500,000 Purchases of marketable securities 5,000,000 Cash and cash equivalent Jan. 1, 2024 37,500,000 Proceeds from loans and other borrowings 30,000,000 Cash and cash equivalent Dec. 31, 2024 216,600,000

The main objective of IPSAS 11- Accounting for Construction and Contract is to prescribe and ascertain the relevant treatment of costs and revenue associated with a contract.

In carrying out its oversight functions regarding the finances of Wellbeing Republic, the Senate Committee on Finance and Appropriations received the proposed budget of the Ministry of Interior for 2026. The Ministry included the actual revenues and expenditures for 2025 as follows: Actual 2025 Proposed 2026 N’000 N’000 Revenue: Ministry’s share of FAAC (statutory revenue) 50,330,000 58,500,000 Aids and grants 1,300,000 2,250,000 Expatriate quota fees 3,500,000 4,750,100 Marriage services 2,460,300 2,020,500 Citizenship processing 460,350 805,000 Business registration 1,250,000 1,980,000 Other revenues 132,200 200,500 Total revenue 59,432,850 70,506,100 Expenditure: Recurrent expenditure: Personnel costs 26,450,000 30,300,000 Grants and contributions 1,200,000 2,020,000 Overhead expenditure 1,100,000 1,320,000 Depreciation charges 230,000 400,500 Impairment charges 57,500 55,000 Security expenses on properties 1,200,000 2,250,000 Procurement: Consumables and services 31,200 25,800 Total recurrent expenditures 30,268,700 36,371,300 Capital expenditure: Investment on buildings 3,450,000 6,500,000 Investment on machinery and equipment 4,500,000 7,200,000 Investment on technology 3,500,000 4,200,500 Investment on aircraft for surveillance 9,300,000 15,500,000 Total capital expenditure 20,750,000 33,400,500 Total expenditure 51,018,700 69,771,800 Budget surplus/(Deficit) 8,414,150 734,300

Both the public and private goods produced are for certain purposes, but there is a clear distinction between the two different goods.

It is common knowledge that government may borrow from time to time, in order to execute its budget figures.

Kosofe State Government is contemplating executing a road project, with a special allocation received from Wasobia Federal Government. The project finance management committee set up has received two proposals from State Ministry of Works for the project execution. The first proposal is on executing the project by direct labour, while the second is through the award of contract.

Ogogo Orientals Primary Health Care is a small community health organization considering how to spend the available budget of the World Health Organisation (WHO) to maximise gains in Quality-Adjusted Life-Years (QALYs). You are provided with the following table of alternative treatment programmes and their expected total costs and benefits.