Monthly Statement

Monthly statements are the major financial statements to be prepared by the operating level offices at the end of every month and submitted to central level offices. These statements are prepared to disclose the budget expenditure, the status of fund, advance transactions and monthly revenue etc. It is prepared by Operating Level Offices to give the financial information to the concerned Central Level Office and the Finance Comptroller General Office. It is a financial report to prepared compulsory under the government accounting system and financial rules and regulations in duet format and time. It is prepared at the end of each month. These monthly statements help for controlling financial activities and maintaining strong financial discipline in the government offices. The monthly statements include a statement of expenditure, statement of outstanding advance, bank reconciliation statement etc.

Objectives of Monthly Statement

The main objectives of monthly statement are as follows:

1. To provide financial data and information on the budget release, budget expenditure, outstanding advance and fund position.
2. To facilitate in proper control and supervision over budget.
3. To help to internal and statutory auditors to prepare their audit reports.
4. To estimate the budget for future.
5. To evaluate the efficiency of operating level office.

Importance and Advantages of Monthly Statements

The importance and advantages of monthly statement are as follows:

1. Source of financial information
   The monthly statement provides various financial data & information for different purposes. It discloses the information about the budget release, budget expenditure, outstanding advance, fund position, etc. Thus, it helps for the preparation of various financial statements & reports.
   
   
2. Evaluation of government activities
   The government launches various plans & projects in a different period of time. A monthly statement discloses the various information and helps to evaluate the performance, past progress and weakness of government offices & projects.
   
   
3. Controlling over budget
   The main objective of government accounting is to maintain the effective control over the budget. Monthly statements supply the required financial information for controlling over budget. It does not allow going beyond the limitation of the budget. Thus, the financial activities can be controlled with the help of monthly statements.
   
   
4. Acts as an administrative tool
   Monthly statements supply the necessary data & information for planning, policy-making, decision-making & other purposes. It also supports to forecast the budget for coming year. It supplies the reliable information for the release of the budget.
   
   
5. Help to make auditing easier
   The monthly statement stands as the basic document for an auditor to check the amount of appropriation, expenditure and surplus budget. Thus, it helps to make internal and financial auditing easier.

Types of Monthly Statement

The main types of monthly statements to be prepared by operating level offices are:

1. Statement of Expenditure (AGF No. 13)
2. Statement of Outstanding Advance (AGF No. 14)
3. Bank Reconciliation Statement (AGF No. 15)
4. Statement of Government Revenue (AGF No. 9)
5. Monthly Statement of Security Deposit (AGF No. 19)