QUESTION $25$

Below is the extract from the records of La Nkwatanang Madina Municipal Assembly $($LANMMA$).$

Trial Balance as at $31$ December $2023$

GH$000$ GH$000$

Travel and transport $10,000$

Seminar and conference $8,700$

Independence Day celebration $5,600$

Office consumables $4,100$

Inventory of office consumables $1,200$

Local Consultancy $300$

Limited engagement $1,300$

Non$-$established post salaries $4,400$

Allowances for staff $2,100$

Assembly members allowances $950$

Foreign travels per diems $500$

Foreign travels $1,800$

Share of District Assembly Common Fund $68,000$

Share of stool land revenues $13,000$

Ceded revenues from GRA $11,250$

Basic rates $10,000$

Property rates $26,000$

Market tolls $6,800$

Market store fees $9,100$

Lorry parks $600$

Advertisements and promotions $1,400$

Vehicle licenses $560$

Hawkers licenses $120$

Entertainment licenses $700$

Fixed deposit interest $800$

Fixed deposit investment $10,000$

Motor vehicles $25,0005,000$

Furniture and fittings $15,0003,000$

Premises $86,0005,600$

Equipment $34,0003,600$

Cash and cash equivalent $5,400$

Loans and advances $6,200$

Revenue receivable $300$

Other expenses $1,700$

Accumulated surpluses $47,020$

District development facility $\_\_\_\_\_\_\_12,000$

$224,550224,550$

Additional Information:

i$)$ The central government has a constitutional responsibility to pay all established post salaries of the Assembly from the Consolidated Fund. The established post salaries paid by the central government on behalf of the assembly for $2023$ amounted to GH$64,000,000.$ This payment has not reflected in the books of LANMMA.

ii$)$ Office consumables in respect of stationery and other items bought for GH$1,800,000$ remained unused during the year. The current replacement cost of the inventories is GH$1,050,000.$ Meanwhile, the net realisable value of the inventories is estimated at GH$1,400,000.$ No market exists for unused office consumables and other items.

iii$)$ iii$)$ Consumption of fixed capital is to be charged as follows:

Assets Estimated useful life

Motor vehicles $5$ years

Furniture and fittings $5$ years

Premises

Equipment $10$ years

$8$ years

iv$)$ During the year, the following assets were acquired and outright payments made for them: Motor Vehicle GH$7,000,000$; Equipment GH$4,000,000.$ These have been accounted for.

v$)$ DMA could not pay the electricity bill for the last quarter of $2023.$ This was brought to its attention by the Electricity Company Ltd$.$ of Ghana. The amount involved is GH$4,000,000.$

vi$)$ The government has assigned some young graduates to LANMMA as part of the Nation sBuilders Corp programme to support the Assembly in revenue mobilisation. The allowances amounting to GH$2,000,000$ due them from DMA for the last month of the year was outstanding. LANMMA promises to pay them by the end of the first quarter of $2024.$

vii$)$ Fixed deposit attracts interest of $20\%$ per annum and some interest is due as at $31$ December $2023.$

viii$)$ The market store fees received was for two years: $2023-2024.$

ix$)$ During the year, the chiefs and people of the Assembly donated a new vehicle valued at GH$400,000$ to the LNMMA. No record was made in the books.

Required:

Prepare in accordance with the IPSAS and the Public Financial Management Act, $2016($Act $921)$:

a$)$ Statement of Financial Performance for the year ended $31$ December $2023.$

b$)$ Statement of Financial Position as at $31$ December $2023.$

c$)$ Notes to the financial statements.