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CONSOLIDATED FUND - Coggle Diagram
CONSOLIDATED FUND
Definition
- Jones and Pendlebury (2010) define 'fund accounting' as the accounting for each fund produces its own operating statement and balance sheet
- It records the source of funds and how these funds are being spent, carries a stewardship and account ability functions
Objectives
- To determine the financial condition and its changes in the organization
- To know the results of operations of the organization
- To check its compliance with legal restrictions
Characteristics
- Each fund is an independent accounting entity
- Has its own sets of accounts with complete double entry and financial statements
- Must be self-balancing and autonomous
Regulatory Framework
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Government Accounting Standards 3,4,5
CONSOLIDATED TRUST ACCOUNT
- To account for all receipts &payments of trust funds and monies received
- Primarily comprises of 3 Trust Funds - Government Trust Funds, Public Trust Fund & Deposits
Government Trust Funds
- accounts for receipts from Government allocation & payments for specific trust purposes
- this funds are revolving- meaning that the amount is not fixed
Housing Loans Funds
- accordance of Housing Loan Fund Act 1971
- aim to provide housing loan facilities to members of public sector
- appropriations from CRA, DF, LA
Miscellaneous Government Trust Fund
- under Financial Procedure Act 1957 (Act 61)
- for specific trust purpose and revolving in nature
- financial source from government
- 5 categories - Clearance Acc- Trading Acc- Loan Acc- Contingency Fund - Miscellaneous Fund
Development Fund
- accordance Development Fund Act 1966
- aim for the economic development of the nation
- main source of finance is transfer from the consolidated loan account
Public Trust Funds
- It consists of Special Trusts incorporated under relevant act and General Trusts under Sec.9 of FPA 1957.
- All receipts and payments for specific purposes in accordance with specific acts or Financial Procedure Act 1971 (FPA) are accounted under PTF.
- A government trust fund typically benefits the government or its agencies, whereas a public trust fund typically benefits the general public or specific groups of individuals
- Financial sources of these funds are receipts from organizations or individuals for specific purposes.
- Refers to a specific type of fund that governments use to account for and manage assets that they hold in a fiduciary capacity
- In these funds, the government acts as a trustee or custodian and manages the assets on behalf of others
- Example : Private Finance Initiative Trust Account used for development expenditure.
A public trust fund might be set up to manage funds donated by the public for a specific charitable purpose or to manage a pension plan for public employees.
- Established to provide a stable source of income that can be used to support ongoing public programs and services, such as education, healthcare, infrastructure, or environmental protection.
Deposits
-Types
General Deposits
- Money received for specific purposes by the Federal Government under any laws and that they need to be reimbursed once the purpose is achieved.
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Adjustment Deposits
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- Temporary accounts used before payments are made or adjustments are made to specific accounts.
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CONSOLIDATED LOAN ACCOUNT
- established by the federal/state government to keep all moneys received by way of loan
- Functions: consolidated account for all loan receipts from borrowings and repayment of borrowings, expenditure incurred from borrowings and transfers of amount from other Consolidated Fund
- Main sources: internal and external borrowing
- money received from both of these sources are primarily utilised for the repayment of outstanding loans
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