Commitment is a very important process in budget implementation and failure to commit expenditures before payment...

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Commitment is a very important process in budget implementation and failure to commit expenditures before payment is done is a very serious violation of the Public Financial Management Act, 2016 Act 921. Given below are transactions relating to an appropriation of a government department for the second quarter 2022. 2022 May 1 May 5 May 9 May 11 Fund balance uncommitted GHS 820, 000.00; Fund balance committed GHS 230,000 and expenditure to date GHS 270,000.00 Purchase order amounting to GHS 10,000.00 was made for the supply of office consumable Invoice amounting to GHS 10,000.00 was received for the delivery of the office consumable ordered An amount of GHS21,000 was approved and committed in April 2022 for a workshop but due to extra participation the invoice amount exceeded the amount committed by GHS1,000. This extra participation in the workshop was approved by management. May 16 May 18 May 28 May 30 May 31 Required: a. Contract signed with Solar Energy Limited for maintenance of the solar panel systems for GHS24,000.00 Computers ordered from GH computers in April, 2022 was supplied at the invoice amount of GHS 58,000.00 Purchase order for supply of electrical accessories from JK Ventures. The amount was GHS 60,000.00 20% of the order for electrical accessories was delivered for an invoice of GHS12,000.00 Established post salaries for the month amounted to GHS 43,000.00 Prepare in an appropriate format that display the commitments, expenditures andbalance on the warrant, a vote ledger (vote account) to capture the above transactions. b. Discuss the usefulness of the vote account in public financial management. Commitment is a very important process in budget implementation and failure to commit expenditures before payment is done is a very serious violation of the Public Financial Management Act, 2016 Act 921. Given below are transactions relating to an appropriation of a government department for the second quarter 2022. 2022 May 1 May 5 May 9 May 11 Fund balance uncommitted GHS 820, 000.00; Fund balance committed GHS 230,000 and expenditure to date GHS 270,000.00 Purchase order amounting to GHS 10,000.00 was made for the supply of office consumable Invoice amounting to GHS 10,000.00 was received for the delivery of the office consumable ordered An amount of GHS21,000 was approved and committed in April 2022 for a workshop but due to extra participation the invoice amount exceeded the amount committed by GHS1,000. This extra participation in the workshop was approved by management. May 16 May 18 May 28 May 30 May 31 Required: a. Contract signed with Solar Energy Limited for maintenance of the solar panel systems for GHS24,000.00 Computers ordered from GH computers in April, 2022 was supplied at the invoice amount of GHS 58,000.00 Purchase order for supply of electrical accessories from JK Ventures. The amount was GHS 60,000.00 20% of the order for electrical accessories was delivered for an invoice of GHS12,000.00 Established post salaries for the month amounted to GHS 43,000.00 Prepare in an appropriate format that display the commitments, expenditures andbalance on the warrant, a vote ledger (vote account) to capture the above transactions. b. Discuss the usefulness of the vote account in public financial management.

Answer rating: 100% (QA)

a Vote Ledger Vote Account Date Transaction Commitment Expenditure Balance May 1 Fund balance uncommitted GHS 820000 GHS 820000 May 5 Purchase order f... View the full answer