XXX Budget Agency(Insert Name of Budget Agency)

XXX Budget Agency(Insert name of Budget Agency)

Monthly/Annual Report and Financial Statements

For The Period Ended DD MM 2016

Issued in (Current month)

Table of contents...... Page No.

1.Background of the institution

2.Statement of responsibilities

3.Statement of revenues and expenditure for the period ended DD MM Year

4.Financial Assets and Liabilities as at DD MM Year

5.Cash flow statement for the MM DD YEAR

6.Budget Performance report

7.Accounting policies

8.Notes to the financial statements

9.Important disclosures

10.Progress on follow up of Audit Recommendations

11.Compliance checklist for Budget Agencies

a)Trial Balance

b)Bank reconciliation statements

c)Bank statements to accompany the bank reconciliation statements

d)Petty cash certificate

e)List of debtors and creditors

XXX BUDGET AGENCY (Insert correct name of your Budget Agency)

Financial statements

For the Months Ended DD MM 201X

1.Background of the institution

XXX BUDGET AGENCY (Insert name of Budget Agency)was constituted by the Organic Law No. (Insert as appropriate) and is anagencyand falls under the Ministry of (Insert as appropriate).The entity was incorporated in Rwanda underXX Act of Parliament (insert correct act establishing the Budget Agency). The entity is domiciled inKigali, Rwanda. The address of its registered office is:

Xxx (Insert address of your budget agency as appropriate)

Principal Activities

The principal activity of the agency is provision of …xxx……. (Insert as appropriate).

Management

The management who held office to theMonth To XX 201Xwere:

No. / Name / Designation
1. / Insert name of Chief Budget Manager / Chief Budget Manager
2 / Insert name of Head of Corporate Manager / Corporate Manager
3 / Insert name of Head of Finance / Director of Finance

1

XXX BUDGET AGENCY (Insert correct name of your Budget Agency)

Financial statements

For the Months Ended DD MM 201X

2.Statement of responsibilities

Article 66 of the Organic Law N° 12/2013/OL of 12/09/2013 on State Finances and Property requires budget agencies to submit annual reports which include all revenues collected or received and all expenditures made during the fiscal year, as well as a statement of all outstanding receipts and payments before the end of the fiscal year.

Article 19 of the Organic Law N° 12/2013 further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the budget agency, preparing reports on budget execution, managing the financial resources for the budget agency effectively, efficiently and transparently, ensuring sound internal control systems in the budget agency and safeguarding the public property held by the budget agency.

The Chief Budget Manager accepts responsibility for the financial statements, which have been prepared using appropriate accounting standards applicable to Public Entities as defined by Article 99 of the Ministerial Order N°001/16/10/TCof 26/01/2016

These financial statements have been extracted from the accounting records of XYZ BUDGET AGENCY (Insert correct name of your Budget Agency)and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda.

In the opinion of the Chief Budget Manager, the financial statements give a true and fair view of the state of the financial affairs of XYZ BUDGET AGENCY (Insert correct name of your Budget Agency). The Chief Budget Manager further accepts responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements, ensuring adequate systems of internal financial control and safeguarding the assets of the budget agency.

Signature: ______

Name: ______

[Chief Budget Manager]

Date: ______

1

xxx (Insert correct name of your Budget Agency)

Financial statements

For the period ended DD MM YY

3.Statement of revenues and expenditure for the period ended DD MMYear

Notes / Financial Year xx / Financial Year xx-1
Month to xx / Month to xx
Revenues
Operating revenue
Tax Revenue / 1 / 4,500 / 3,000
Fees, fines, penalties and licenses / 2 / 2,500 / 2,500
Transfers from Treasury / 3 / 30,000 / 1,000
Transfers from other Government Reporting entities / 4 / 2,000 / 2,000
Grants / 5 / 4,300 / 1,000
Other Revenue / 6 / 3,100 / 3,000
Net operating revenue / 46,400 / 12,500
Capital Receipts
Proceeds from sale of capital items / 7 / 2,300 / 3,000
Loans and borrowings
Proceeds from borrowings / 8 / 4,300 / 17,000
Total Revenues (A) / 53,000 / 32,500
Expenses
Operating expenses
Compensation of Employees / 9 / 3,200 / 5,000
Use of Goods and Services / 10 / 3,400 / 2,000
Transfers to Reporting Entities / 11 / 4,300 / 2,900
Subsidies / 12 / 2,300 / 1,900
Grants / 13
Social Assistance / 14 / 500 / 1,000
Finance cost / 15 / 700 / 2,400
Other Expenses / 16 / 2,100 / 2,400
Total operating expenses / 16,500 / 17,600
Capital payments
Capital Expenditure / 17 / 4,500 / 4,500
Repayment of borrowings
Loans repayments / 18 / 3,200 / 2,300
Total expenses (B) / 24,200 / 24,400
Surplus/deficit (C=A-B) / 28,800 / 8,100

Sign: Accountant …………..…...... Director of Finance ………...... ……. Chief Budget Manager ...... ……

4.Financial Assets and Liabilities as atDD MMYear

Notes / Financial Year xx
As at Month of xx / Financial Year xx-1
As at Month of xx
Frw / Frw
Financial Assets
Bank Balances / 19 / 56,000 / 32,100
Cash Balances / 20 / 3,200 / 2,100
Accounts Receivables and Advances / 21 / 21,800 / 23,400
Less: Financial liabilities
Accounts Payables / 22 / (12,000) / (23,110)
Net Financial assets / 69,000 / 34,490
Representing
Accumulated surplus (Deficit) from previous years / 23 / 34,490 / 23,100
Net surplus / (Deficit) for current year / 28,800 / 8,100
Prior year adjustment / 24 / 5,710 / 3,290
Total closing balances / 69,000 / 34,490

Sign: Accountant …………...... …... Director of Finance ………...... ……. Head of Corporate Services ...... ……

5.Cash flow statement for the MM DD YEAR

Notes / Financial Year xx / Financial Year xx-1
As at Month of xx / As at Month of xx
Frw / Frw
Cash flow from operating activities
Tax Revenue / 1 / 4,500 / 3,000
Fees, fines, penalties and licenses / 2 / 2,500 / 2,500
Transfers from Treasury / 3 / 30,000 / 1,000
Transfers from other Government Reporting entities / 4 / 2,000 / 2,000
Grants / 5 / 4,300 / 1,000
Other revenue / 6 / 3,100 / 3,000
Payments for operating expenses
Compensation of Employees / 9 / 3,200 / 5,000
Use of Goods and Services / 10 / 3,400 / 2,000
Transfers to Reporting Entities / 11 / 4,300 / 2,900
Subsidies / 12 / 2,300 / 1,900
Grants / 13 / 2300 / 1500
Social Assistance / 14 / 500 / 1,000
Finance cost / 15 / 700 / 2,400
Other Expenses / 16 / 2,100 / 2,400
Adjusted for
Changes in receivables / 25 / 1,600 / -23,400
Changes in payables / 25 / -11,110 / 23,110
Adjustment during the period / 24
Net cash flow from operating Activities / 20,390 / -4,290
Cash flows from Investing Activities
Purchase of capital items / 18 / -4,500 / -4,500
Proceeds from sale of capital items / 7 / 2,300 / 3,000
Net cash flows from Investing Activities / -2,200 / -1,500
Cash flow from Financing Activities
Repayment of borrowing / 17 / -3,200 / -2,300
Proceeds from borrowing / 8 / 4,300 / 17,000
Net cash flow from financing activities / 1,100 / 14,700
Net increase/ Decrease in cash and cash equivalents / N/A / 19,290 / 8,910
Cash and cash equivalent at Beginning of the year / 26 / 1223 / 354
Cash and cash equivalent at end of the period / 26 / 25,000 / 12,200

Sign: Accountant …………...... …... Director of Finance ………...... ……. Head of Corporate Services ...... ……

1

xxx (Insert correct name of your Budget Agency)

Financial statements

For the period ended DD MM YY

6.Budget Performance report

Financial Year 2015/16 / Financial Year 2015/16 / Financial Year 2015/16 / Variance / Performance
Month ……
Notes / Approved Budget - Frw / Revised Budget - Frw / Actual - Frw / Frw / %
A / B / A-B / (B/A)*100
Revenue
Tax Revenue / 1 / xx / xx / xx / xx
Fees, fines, penalties and licenses / 2 / xx / xx / xx / xx
Transfers from Treasury / 3 / xx / xx / xx / xx
Transfers from other Government Reporting entities / 4 / xx / xx / xx / xx
Grants / 5 / xx / xx / xx / xx
Other revenue / 6 / xx / xx / xx / xx
Proceeds from sale of capital items / 7 / xx / xx / xx / xx
Proceeds from borrowings / 8 / xx / xx / xx / xx
Total Revenue / xx / xx / xx / xx
Expenses
Compensation of Employees / 9 / xx / xx / xx / xx
Use of Goods and Services / 10 / xx / xx / xx / xx
Transfers to Reporting Entities / 11 / xx / xx / xx / xx
Subsidies / 12 / xx / xx / xx / xx
Grants / 13 / xx / xx / xx / xx
Social Assistance / 14 / xx / xx / xx / xx
Financing cost / 15 / xx / xx / xx / xx
Other Expenses / 16 / xx / xx / xx / xx
Capital Expenditure / 17 / xx / xx / xx / xx
Repayment of Loan borrowing / 18 / xx / xx / xx / xx
Total expenses / xx / xx / xx / xx

Explanation on variances

Explain the major variances observed above:

(i)Xxxx

(ii)Xxxx

(iii)Xxxx

(iv)Xxxx

Sign: Accountant …………...... …... Director of Finance ………...... ……. Had of Corporate Services ...... ……

1

xxx (Insert correct name of your Budget Agency)

Financial statements

For the period ended DD MM YY

Authorization Date

The financial statements were approved by the management of the entity on …………………….. and signed on its behalf by:

Prepared by:
Chief Accountant / Signature / Date
Checked by:
Director of Finance / Signature / Date
Confirmed by: / Head of Corporate Services / Signature / Date
Approved by:
Chief Budget Manager / Signature / Date

1

xxx (Insert correct name of your Budget Agency)

Financial statements

For the period ended DD MM YY

1

xxx (Insert correct name of your Budget Agency)

Financial statements

For the period ended DD MM YY

7.Accounting policies

a)Basis of preparation

The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the requirements of Article 66 of the Organic Law on State Finances and Property: Law No. 12/2013 of 12 September 2013 and the Ministerial Order N°001/16/10/TCof 26/01/2016 relating to Accounting Standards applicable to Public Entity

The Financial Statements have been prepared based on generally Accepted accountingPrinciples, except where stated otherwise. In the context of Ministerial Order N°001/16/10/TCof 26/01/2016relating to Financial Regulations financial transactions are recognized in the books of account as follows:

1. Generally, transactions are recognized only at the time the associated cash flows take place;
2. The expenditure on acquisition of fixed assets is not capitalized. Thus fixed assets are written–off on acquisition and the wear and tear (depreciation) of those assets is not recorded in the books of account; and
3. Prepaid expenditure/advances is written-off during the period of disbursement.

The recognized “modification” is as follows:

1. Invoices for goods and services which are outstanding on the date of the closure of the fiscal year are recognized as liabilities for that specific fiscal year;
2. Loans and advances are recognized as assets/liabilities at the time of disbursement and related interest is recognized only when disbursed. Interest payable on public debt is accrued; and
3. Book balances denominated in foreign currencies are converted into the Rwanda Francs at rates of exchange ruling on that date issued by the National bank of Rwanda. The associated exchange losses are recorded as recurrent expenditure while the exchange gains are recorded as recurrent revenue.

b)Reporting entity

The financial statements are for XXX BUDGET AGENCY (Insert name of Budget Agency)

Presentation Currency

The financial statements are reported in Rwanda Francs, being the currency of legal tender in Rwanda.

c)Revenue

• Tax revenue

These are tax revenue mainly collected by Rwanda Revenue Authority which is transferred to central treasury for a given period. Tax revenues also include decentralised taxes for local government entities.

• Fees, fines, penalties and licenses

Fees, fines, penalties and licences form a large part of the Non Tax revenue for the Government. These revenues should be recognized in the period in which the payment for the service is received and not necessarily when the service is rendered.

• Transfers from Treasury

Transfers from Treasury include budgetary allocations from Central Treasury and are disbursed directly to the bank account of the institution periodically (Direct Cash transfers) or indirectly to another Government reporting entity’s bank accounts (Indirect Cash Transfers). Transfers from Treasury also include these payments directly made to beneficiaries by the Central Treasury on behalf of the institutions. Direct payments are recorded when the transfer is made to the supplier.

• Transfers from other Government reporting agency

These are funds received from anotherreporting agency (Ministry, Agency, Development Project or a subsidiary entity with status of submitting financial report for consolidation). These funds should be in form of budget support.

• Grantsfrom Development Partners

These are funds received from partners including domestic grants and external grants. These funds are recognised as revenue when the institution receives the cash from the donors.

• Capital receipts

Capital receipts combine the sale of government tangible assets, sale of government equity investments and other domestic resources which include drawdown from Government Accounts.

• Other income

Other income includes voluntary transfers other than grants in form of foods, medical, supplies relief contributions and gifts of capital items. It also include miscellaneous income such as refunds, deductions, scholarship recovery, gain of currency exchange and transactions, proceeds from sale of small items and equipment and funds received from repayment of car loans as well as unidentified revenues.

• Proceeds from borrowings

Borrowings includes external and domestic loans received from development partners

d)Expenditure

The main categories of expenditure includes compensation of employees, Use of Goods and Services, Capital expenditures, Transfers and subsidies, Loan and interest repayments, social benefits, Transfers to reporting entities and other expenses.A part from points of Modification which are mentioned clearly in the Ministerial Instructions, expenditure is recognized when payment is made.

e)Bank and Cash

Cash comprises cash on hand, demand deposits and cash equivalents. Demand deposits and cash equivalents comprise balances with banks and investments in short-term money market instruments.

f)Receivables and Advances

Receivables mainly relate to loans and advances which are recognized at the time of disbursement. Receivables also include amounts due to the budget agency as at the end of the reporting period.

g)Account payables

These mainly relate to invoices for goods and services which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year.

This also relate to loans and advances to the institution which are recognized as liabilities at the time of disbursement.

h)Foreign currencies

Transactions denominated in foreign currencies are translated to the Rwandan Franc at the rate of exchange issued by the National bank of Rwanda (BNR) applicable for the dates of the transaction. At the balance sheet date, book balances denominated in foreign currencies are converted into Rwandan Francs at the exchange ruling on that date as issued by BNR. The associated exchange losses/gains are recorded as expenditure/ income in the books.

i)Accumulated Surplus or Deficit from previous years

These include cash book reconciled bank balances, petty cash balances, and accounts receivables as well as accounts payable balances existing at the beginning of the year

j)Prior year Adjustments

Prior Year adjustments consist of different adjustments made to consolidated report of prior year.

1

xxx (Insert correct name of your Budget Agency)

Financial statements

For the period ended DD MM YY

8.Notes to the financial statements

1. Tax Revenue

During the year, we received Tax Revenues as detailed below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to XX 201X / Month to XX 201X - 1
Frw / Frw
111 / Taxes on Income, Profits or Capital Gains / 2,000 / 1,000
112 / Taxes on Payroll and Workforce / 2,000 / 2,000
113 / Tax on Property Income
114 / Taxes on goods and services / 500
115 / Taxes on international trade and transactions
TOTAL / 4,500 / 3,000

In addition to the above mentioned taxes collected by districts, Rwanda Revenue Authority has collected the following taxes on behalf of the district

S/N / Description / FY 2015/16 / FY 2014/15
Frw / Frw
1 / Fixed Asset Tax
2 / Rental Income Tax
3 / Trading License Tax
N/A / Total

1. Fees, Fines, Penalties and licenses

During the year, we received fees, fines, penalties and licenses as detailed below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to XX 201X / Month to XX 201X - 1
Frw / Frw
141 / Property Income / 1,000 / 1,500
142 / Sales of goods and services
143 / Fines, penalties, and forfeits / 1,500 / 1,000
TOTAL / 2,500 / 2,500

In addition to the above mentioned fees collected by districts, Rwanda Revenue Authority has collected the fees amounting to………………….Frw on behalf of the district

1. Cash transfer from central treasury

During the year, we received transfers from Central Treasury as detailed below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to XX 201X / Month to XX 201X - 1
Frw / Frw
139101 +
139201 / Treasury Direct Payments / 10,000 / 200
139102 +
139202 / Treasury Direct Cash Transfers / 20,000 / 800
139103 +
139203 / Treasury Indirect Cash Transfers / xx
TOTAL / 30,000 / 1,000

1. Transfers from Government Reporting Entities

During the year, we received transfers from government reporting agencies as detailed below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to XX 201X / Month to XX 201X - 1
Frw / Frw
139104+
139204 / Transfers from Central government entities / XX / XX
(insert name of budget agency) / 500 / 500
(insert name of budget agency) / 200 / 200
139105+
139205 / Transfers from Districts / XX / XX
(insert name of budget agency) / 100 / 100
139106+
139207 / Below Line Transfer from Central Treasury
(insert name of budget agency)
139206 / Transfers from Independent development projects / XX / XX
(insert name of budget agency) / 500 / 500
(insert name of budget agency) / 500 / 500
139108+139104 / Revenue Remittance From RRA
(insert name of budget agency)
TOTAL / 2,000 / 2,000

The amounts above have been reconciled with the sending Government entity.

1. Grants

During the months/year to ddmm 201x we received funds from one donor as detailed in the table below:

ID / Name of Donor / Date received / Amount in foreign currency / Exch.
rate / Amount in local currency / xx Months toxx 201x
Frw / Frw
1371+
1372 / Foreign Governments
(Insert name of donor) / 01/8/2013 / xx / xx / 1,000 / 1,000
(Insert name of donor) / xx / xx / xx / 1,300 / xx
1381+
1382 / International Organizations
(Insert name of donor) / xx / xx / 2,000 / xx
(Insert name of donor) / xx / xx / xx / xx / xx
Total / 4,300 / 1,000

1. Other revenue

During the month to dd mm 201x, we received funds from various other sources as detailed in the table below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to mm 201X / Month to mm 201X - 1
Frw / Frw
144 / Transfers from Local Individuals and Organizations / 3,000 / 2,800
145 / Miscellaneous and Unidentified Revenue / 100 / 200
TOTAL / 3,100 / 3,000

1. Proceeds from sale of Capital items

During the xx months to dd mm 201x we received capital receipts as detailed in the table below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to mm 201X / Month to mm 201X - 1
Frw / Frw
151 / Disposal of tangible fixed assets / 2,300 / 3,000
152 / Sale of Inventories / xx / xx
153 / Sale of Valuables / xx / xx
154 / Sale of Non-Produced Assets / xx / xx
155 / Sale of Financial Assets - Domestic / xx / xx
156 / Sale of Financial Assets - Foreign / xx / xx
TOTAL / 2,300 / 3,000

1. Proceeds from borrowings

During the month/year to dd mm 201x we received loans as detailed in the table below:

ID ACCOUNT / Name of Lender / Date received / Amount in foreign currency / Exch.
rate / Amount in local currency / xx Months to xx 201x
Frw / Frw
161 / Loan Borrowing - Domestic / 4300 / 17,000
Insert the name of the lender / BK
Insert the name of the lender
162 / Loan Borrowing - Foreign / xx / xx
Insert the name of the lender
Insert the name of the lender
Total / 4,300 / 17,000

9. Compensation of employees

During the months to ddmm 201x, we incurred compensation to employee costs as detailed in the table below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to mm 201X / Month to mm 201X - 1
Frw / Frw
211 / Salaries in cash / 3,000 / 4,000
213 / Social contribution / 200 / 1,000
214 / Salaries arrears / xx / xx
TOTAL / 3,200 / 5,000

10. Use of Goods and Service

During the months to dd mm 201x, we consumed of goods and services as detailed in the table below:

ID ACCOUNT / Description / Financial Year 201X / Financial Year 201X - 1
Month to mm 201X / Month to mm 201X - 1
Frw / Frw
221 / General Services / 800 / 1,000
222 / Professional, Research services / 200 / xx
223 / Transport and travel / 200 / 800
224 / Maintenance, Repairs and Spare Parts / 100 / xx
225 / Tools and Small Equipments / xx / xx
226 / Training Costs / 400 / xx
227 / Supplies and services / 1,000 / 200
228 / Arrears / xx / xx
229 / Other Use of Goods& Services / 700 / xx
TOTAL / 3,400 / 2,000

11. Transfers to reporting entities