Statement of affairs is the reports of books of account maintained and prepared by the operating level office and submit it to its corresponding central level office in a regular basis. It is a seven columns self-balancing monthly report of operating level office. This statement is submitted to central level by the operating level office at the end of each month as a monthly report. Therefore, it is also known as monthly expenditure report. It is maintained in the prescribed format under AGF No.13.
This report provides the information regarding the summary of annual appropriation of budget to the office with budget heads, and their budget head number, expenditure of the current month, budget release up to the current month, total expenditure up to the current month, balance of budget, unclear amount of advance, net expenditure up to current month, cash and bank balances, and loan receivables and payable amount at end of prepared month.
Government of Nepal AGF NO.13
Position of Fund
For the month of…………………
Submitted by: XXX Designation: XXX Date: XXX
The statement of expenditure has two sections:
The first part of a statement of expenditure is a position of a budget. It helps to show the position of a budget of operating level office. It contains seven columns which are explained below:
Determination of amount of different columns, if necessary:
Expenditure for the current month: (Expenditure up-to the end of current month– Expenditure up-to the end of previous month)
Release up-to the end of current month: [Expenditure up to the end of current month (6) – Expenditure of current month (1)]
Expenditure up-to the end of current month: [Expenditure up-to the end of previous month + Expenditure for the month]
Balance of budget: [Annual budget (5) – Expenditure up to end of current month (6)]
This is the last part of a statement of expenditure. It includes the cash and bank balance, total amount of budget release, total expenditure, unclear advance and position of a loan.
Determination of amount of different components, if necessary:
Total release up-to the end of current month = Total of column no.2
Expenditure up-to the end of current month = Total of column no.6
Cash balance = Total budget release received up-to current month + Deposit or loan received – Total expenditure up-to current month – Bank balance – Loan provided.
Bank balance = Total budget release up-to current month + Deposit or loan received – Total expenditure up-to current month – Cash balance at petty cash fund– Loan provided.
Unclear advance = Amount of advance in given column – Amount advance in cleared column from Bank Cash Book.
Net expenditure = Expenditure up-to end of current month – Uncleared advance.
Under new accounting system, all the cash receipts of the government have to be deposited into bank and payments are made through cheque except petty payments made out of petty cash fund. In other words, all the financial transactions of the government are carried out through the bank. Therefore, those transactions carried through a bank are recorded in bank cash book (AGF NO.5) in the office, Similarly, the bank also keeps records of financial transaction in its separate account book known as pass book. Thus, the banking transaction is recorded in both Bank Cash Book of Government and Pass Book of bank. The balance between bank cash book and pass book must be equal. But sometimes due to various reasons, the bank cash book and pass book may not be equal. In this condition, a statement is prepared to find out the exact reasons for showing the difference between balance by Bank Cash Book and Pass Book which is known as Bank Reconciliation Statement. This is prepared at the end of every month on format AGF No.15 and submitted to concern central level office by operating level office.
The specimen of this statement is given below:
Government of Nepal AGF NO.13
Certified that the above statement is correct:
Sharma, Narendra et.al., Principles of Accounting-XI, Bundipuran Prakashan, Kathmandu
Koirala, Yadav Raj et.al., Principles of Accounting-XI, Asmita Books Publication, Kathmandu
Shrestha, Dasharaha et.al., Accountancy-XI, M.K. Prakashan, Kathmandu
Importance of statement of expenditure