Public Sector Accounting and Finance (Premium)

A Regulatory and conceptual frameworks of public sector accounting 20% 1. The constitutional and regulatory frameworks of public sector accounting (a) Discuss the importance of the constitutional, legislative and regulatory contexts of Public Sector Accounting with specific emphasis on: (i) The constitutional provisions on revenue, revenue allocation and public expenditure (federal, states and local governments); (ii) The provisions of the Finance (Control and Management) Act of 1958 (as amended); and (iii) Financial regulations for Federal and State Governments and financial memoranda for Local Government Councils. (b) Discuss the provisions of: (i) Fiscal Responsibility Act, 2010 in relation to: ❖ The medium term expenditure framework (MTEF); ❖ The annual budget (computational question may be examined); ❖ Budget execution and achievement of targets (computational question may be examined); ❖ Savings and assets management; ❖ Transparency and accountability; and Understand the concepts and frameworks of public sector accounting Understand the preparation of public sector accounts and management of public finance Understand the roles, duties and powers of public officers Assess the role of the public sector in the economy Evaluate ethical and emerging issues in the public sector Understand basic principles of public sector financial management REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 92 ❖ Enforcement. (ii) Public Procurement Act, 2007 in relation to: ❖ Fundamental principles of procurement; ❖ Organisation of procurement; ❖ Procurement methods (goods and services); ❖ Special and restricted methods of procurement; ❖ Procurement of consultant (services); ❖ Disposal of public property; and ❖ Offences. (iii) International Public Sector Accounting Standards IPSAS 11 - Construction Contracts (IAS 11). Computational question may be examined; and (iv) IPSAS 12- Inventories (IAS 2). Computational question may be examined. c) Assess ethical issues in public sector accounting in respect of functions and powers (offences and penalties) of the following bodies: (i) Economic and Financial Crimes Commission (EFCC); (ii) Independent Corrupt Practices and Other Related Offences Commission (ICPC); (iii) Code of Conduct Bureau (CCB); (iv) Code of Conduct Tribunal (CCT); and (v) Public Accounts Committee (PAC). 2. Public sector accounting concepts and pronouncements a) Discuss: (i) Accounting concepts, bases and principles relevant to public sector accounting; (ii) Concept of funds, its relationship to the entity concept and its implications for income measurement and valuation; (iii) Professional pronouncements on public sector accounting by the United Nations, the International Committee on Public Sector Financial Management and International Federation of Accountants (IFAC) through IPSAS Board; and (iv) Standardisation of Federal, State and Local Governments reporting formats in Nigeria. b) Discuss Pension Reform Act, 2014, in respect of: (i) Objectives; (ii) Rates of contribution to scheme; (iii) Exemption from the scheme; (iv) Retirement benefits; (v) Retirement savings account; (vi) Transitional provisions for the public sector; (vii) Pension fund administrators (PFA)and pension fund custodians (PFC); REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 93 (viii) Investment of pension fund; and (ix) Offences, penalties and enforcement powers. (c) Discuss IPSAS 39 -. (d) Assess emerging issues in Nigerian public sector in relation to: (i) Government Integrated Financial Management Information System (GIFMIS); (ii) Integrated Payroll and Personnel Information System (IPPIS); (iii) Treasury Single Account (TSA); and (iv) Accounting Transaction Recording and Reporting System (ATRRS). (e) Discuss Finance Act, 2019 in respect of: (f) i. Objectives; (g) ii. Ease of doing business; and (h) iii Compensation for loss of employment B. Planning and budgeting 20% 1. Discuss the: (a) Importance of planning and budgeting in the public sector; and (b) Objectives and the use of annual budget in the public sector. 2. Evaluate types of budget: (a) Line–item budgeting system; (b) Traditional/incremental budgeting system; (c) Planning programming budgeting system (PPBS); (d) Programme performance budgeting system (PPBS); and (e) Zero–base budgeting system (ZBB). 3. Distinguish among rolling, development and perspective plans. 4. Discuss the steps in the budgeting process and budgetary control. 5. Evaluate and discuss IPSAS 24 - Presentation of Budget Information in Financial Statements. Computational question may be examined. C. Report and audit 30% 1. Accounting and financial reporting (a) Present and evaluate the public sector accounting processes in relation to: (i) Treasury cash book and transcripts; (ii) Cash management and borrowing guidelines; (iii) Types of vouchers and their uses; (iv) Bank reconciliation statements; (v) Subsidiary accounts - deposits, advances and imprest; (vi) Journal entries for loss of public funds; (vii) Vote book and expenditure control; and REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 94 (viii) Revenue control procedures. (b) Discuss the roles of the following bodies: (i) Federation Accounts Allocation Committee (FAAC); and (ii) Revenue Mobilization, Allocation and Fiscal Commission (RMAFC). (c) Prepare and discuss the following: (i) Federation Accounts; (ii) Federal public sector independent revenue; and (iii) Charges to the Consolidated Revenue Fund (CRF). (d) Prepare statutory financial statements for federal, state and local government treasury in accordance with cash basis IPSAS in respect of the following: (i) Cash Flow Statement; (ii) Statement of Consolidated Revenue Fund; (iii) Statement of Capital Development Fund; (iv) Notes to the accounts; (v) Performance reports; (vi) Statistical reports; and (vii) Accounting policies. (e) Prepare statutory financial statements for federal, state and local government treasury in accordance with Accrual Basis IPSAS in respect of the following: (i) Cash Flow Statement; (ii) Statement of financial performance (Consolidated Revenue Fund); (iii) Statement of financial position (statement of assets and liabilities); (iv) Statements of changes in net assets/equity; (v) Comparison of budget and actual amounts; and (vi) Notes to the accounts. (f) Discuss IPSAS 33 - First-time Adoption of Accrual Basis IPSAS. (g) Interpret public sector financial statements using relevant and appropriate techniques such as: (i) Ratio analysis; (ii) Variance analysis; (iii) Budget performance indices; and (iv) Revenue and expenditure profiles. 2. Accounting for public sector organisations and government business entities (a) Discuss the general nature of and differences among public sector organisations: (i) Organisations without the features of a private company e.g. Independent National Electoral Commission (INEC), Niger-Delta Development Commission (NDDC), etc; and (ii) Government business entities (i.e. hybrid organisations that have features of private companies and public organisations e.g. Nigerian Ports Authority (NPA), Central Bank of Nigeria (CBN), Nigerian REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 95 Security Printing and Minting Company (NSPMC) Ltd, Securities and Exchange Commission (SEC), etc. (b) Discuss financial provisions of enabling laws for relevant utilities, authorities, parastatals, boards, corporations, agencies and tertiary educational institutions. (c) Prepare the financial statements of relevant utilities, authorities, parastatals, boards, corporations, agencies and tertiary educational institutions in accordance with Accrual Basis IPSAS, considering the following: (i) Statement of financial position; (ii) Statement of financial performance; (iii) Statements of changes in net assets/equity; (iv) Cash flow statement; and (v) Notes to the accounts. (d) Discuss the International Public Sector Accounting Standards (IPSAS) on cash basis in relation to its structure, objectives, responsibility, characteristics, and components. (e) Discuss the following International Public Sector Accounting Standards (IPSAS) on accrual basis in relation to the definitions, applications, recognition, measurement and disclosures; IPSAS – Standards IPSAS 1- Presentation of Financial Statements IPSAS 2 - Cash Flow Statements IPSAS 3- Accounting Policies, Changes in Accounting Estimates and Errors IPSAS 4- The Effects of Changes in Foreign Exchange Rates IPSAS 5- Borrowing Costs IPSAS 9- Revenue from Exchange Transactions IPSAS 10- Financial Reporting in Hyperinflationary Economies IPSAS 13- Leases IPSAS 14- Events After the Reporting Date IPSAS 16- Investment Property IPSAS 17- Property, Plant and Equipment IPSAS 18- Segment Reporting IPSAS 19- Provisions, Contingent Liabilities and Contingent Assets IPSAS 20- Related Party Disclosures IPSAS 21- Impairment of Non-Cash-Generating Assets IPSAS 22- Disclosure of Financial Information About the General Government Sector IPSAS 23- Revenue from Non-Exchange Transactions (Taxes and Transfers) IPSAS 26- Impairment of Cash-Generating Assets IPSAS 27- Agriculture IPSAS 28- Financial Instruments: Presentation IPSAS 29- Financial Instruments: Recognition and Measurement IPSAS 30- Financial Instruments: Disclosures REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 96 IPSAS 31- Intangible Assets IPSAS 32- Service Concession Arrangements: Grantor IPSAS 34- Separate Financial Statements IPSAS 35- Consolidated Financial Statements IPSAS 36- Investments in Associates and Joint Ventures IPSAS 37- Joint Arrangements IPSAS 38- Disclosure of Interests in Other Entities IPSAS 40- Public Sector Combinations Note: Applicable new standards and laws may be examined six months after the date of issue. 3. Public Sector Audit Discuss the: (a) Legal requirements for audit in the public sector and the roles of the Accountant-General and Auditor-General; (b) Processes of appointing auditors in the public sector; (c) Basic steps in the process of auditing public sector financial statements; (d) Concept of public accountability in the public sector; (e) Financial guidelines for the operation of the public sector; (f) Financial responsibilities of public sector officers; (g) Nature and types of financial control in the public sector; (h) Financial control institutions within the public sector (including their functions and procedures), in respect of: (i) Ministry of Finance; (ii) Office of the Auditor-General for the Federation; (iii) Office of the Accountant-General of the Federation; (iv) Budget office; (v) Expenditure control unit; and (vi) Fund section. (i) Roles of national and state assemblies, and local government councils in financial management and control; (j) Financial management and virement procedures; (k) Application of International Standards of Supreme Audit Institutions (ISSAI), standards for assurance and audit and their relationship with International Standards on Auditing (ISA’s); and (l) Value-for-money audit. D. Public finance 25% 1. Evaluate the roles of the public sector in relation to the: (a) Performance of the Nigerian economy; and (b) Objectives of fiscal responsibilities. 2. Discuss the main sources of revenue and capital finance. REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 97 3. Discuss the roles of revenue collection agencies, such as: (a) Nigerian National Petroleum Corporation (NNPC); (b) Federal Inland Revenue Service (FIRS); (c) State Internal Revenue Service (SIRS); (d) Department of Petroleum Resources (DPR); (e) Nigerian Customs Service (NCS); and (f) Local Government Revenue Authorities. 4. Assess revenue collection and monitoring procedures. 5. Justify the importance of grants as a source of revenue to federal, state and local governments. 6. Assess and evaluate the expenditure and revenue frameworks of public finance in relation to: (a) Public expenditure: (i)Efficient provision of public goods: ❖ Deriving the efficiency contribution; and ❖ Problems in achieving efficiency. (b) Public goods: (i) Justify government intervention in the provision of public goods; and (ii) Evaluate how government spending creates positive externalities in provision of public goods. 7. Discuss the national privatisation policy with respect to: (a) Public versus private provision; (b) Public versus private production; (c) Public goods and public choice; and (d) Bureau of Public Enterprises (BPE). 8. Assess borrowing policy and public debts in the context of: (a) Funded and unfunded debts; (b) Debt burden; (c) Deficit financing (to tax or to borrow?); and (d) External loans: multilateral, Paris Club, London Club, promissory notes and others. 9. Evaluate debt management strategies in relation to: (a) Loans pooling and consolidation; (b) Loan re-scheduling; (c) Debt-equity swap; and (d) Debt forgiveness. REGULATIONS AND EXAMINATIONS SYLLABUS FOR ICAN 98 10. Evaluate and discuss principles and practice of federalism (fiscal federalism, fiscal capacity and needs in multi-level public sector structures). 11. Evaluate inter-public sectoral fiscal relations and Nigeria’s experience with revenue allocation. 12. Appraise projects in the public sector, using: (a) Cost-benefit analysis; (b) Cost-outcome analysis; (c) Cost-effectiveness analysis; and (d) Net present value and internal rate of return. 13. Discuss the nature, causes and types of externalities. 14. Evaluate emerging issues in Nigerian Public Finance. E. Public finance management and accountability 5% Discuss the role of ICAN accountability index in public finance management and accountability covering the following: 1. Policy based fiscal strategy and budgeting; 2. Budgets credibility; 3. Management of assets and debts; 4. Control in budget execution, accounting and reporting; and 5. External audit and legislative scrutiny.