MAY 2019 PROFESSIONAL EXAMINATIONS
PUBLIC SECTOR ACCOUNTING & FINANCE (PAPER 2.5)
CHIEF EXAMINER’S REPORT, QUESTIONS AND MARKING SCHEME
EXAMINER’S GENERAL COMMENTS
One could describe the overall understanding of the examination questions by
candidates as 50 percent fair and 50 percent poor. This may be due to poor preparation
for the examination by candidates. However, as already indicated, there were a
handful of good and excellent answers that were given by some candidates showing
that they had prepared well for the paper and had good knowledge of the subject-
matter
STANDARD OF THE PAPER
The standard and the choice of the questions were satisfactory. The coverage and
weighting structure of the Public Sector Accounting and Finance Paper seemed to
have been followed. The interpretation of a few of the questions however appeared
problematic in the minds of many of the candidates. There were no minor errors
connected with syntax and spelling. The Questions set were not sub-standard.
However, many candidates struggled to understand their meaning. The weighting
and marks allocation were commendable.
GENERAL PERFORMANCE OF CANDIDATES
Scripts that were marked and moderated indicated poor performance in many
examination centres and average performance in a few others. However, there were
some isolated good scripts that were marked throughout the country. This is not
surprising because of the type of preparation for the examination in different centres.
The performance of candidates may also be a function of good teaching. The nature of
answers presented by candidates in the examination generally depended on various
factors, such as skills and experience acquired in Public Sector Accounting and
Finance by some practicing public sector accounting and finance staff and the
knowledge other candidates had acquired during their studies and preparation for
the paper.
STRENGTHS OF CANDIDATES
It is not easy to assess the strengths of the candidates. It is obvious that some of the
candidates were well prepared for the examination and this was exhibited in the
excellent answers to the questions. Others appeared to think that the examination
could be grossed over and still pass. Such candidates failed woefully.
Page 1 of 24
,QUESTION ONE
a) Accounting Concepts and Bases are broad basic assumptions, which underlie the
preparation of the periodic financial statements of entities in the public sector. Unless
stated, it would be assumed that they have been adhered to when preparing financial
statements.
Required:
Explain THREE (3) key characteristics of each of the following Accounting Bases used in
Public Sector Accounting:
i) Commitment accounting
ii) Accrual accounting
iii) Cash accounting
(9 marks)
b) One objective of Public Sector Accounting is accountability. Accountability requires that
government justifies how public resources are raised and utilized by means of Financial
Reporting. Financial Reporting helps to improve the performance of, and trust in, the
public sector.
Required:
Explain FOUR (4) other objectives of Financial Reporting in public sector organisations.
(6 marks)
c) There were several challenges in Public Financial Management in Ghana. As a result, the
Ghana Integrated Financial Management Information System (GIFMIS) which has been
touted as a flagship system for improved Public Financial Management (PFM) in Ghana
was introduced.
Required:
Explain FIVE (5) key PFM challenges the GIFMIS seeks to address. (5 marks)
(Total: 20 marks)
Page 2 of 24
, QUESTION TWO
a) The backward development in the public sector has been attributed to weaknesses in the
Internal Control Systems in the public sector. Proper systems for the effective control over
the custody and management of assets in public institutions is critical for Public Sector
Accounting.
Required:
Analyse FOUR (4) key control measures, required to be put in place to ensure effective
management of Public Assets. (6 marks)
b) Funds are released from the consolidated fund to the Ministries, Departments and Agencies
(MDAs) for use only when appropriation bill has been passed into an appropriation act.
However, when Appropriation Act is issued, there are certain procedures usually followed
in making payments for Capital Expenditure.
Required:
Outline the procedures for payment of works procured by an MDA. (4 marks)
c) Section 92 (1) of the Public Procurement Act, 2003 (Act 663) provides that any person who
contravenes any provision of the Act commits an offence and where no penalty has been
provided for the offence, the person is liable on summary conviction to a fine not exceeding
1000 penalty units or a term of imprisonment not exceeding five years or to both.
Required:
Explain FOUR (4) circumstances that may constitute an offence as provided by the Public
Procurement Act 2003, (Act 663). (6 marks)
d) You have recently been appointed as a District Chief Executive (DCE) of a particular
district. It has come to your attention that the Internally Generated Funds (IGF) of the
District Assembly is very low and you intend to address the problem for the assembly.
Required:
Identify FOUR (4) ways in which the IGF of the assembly can be improved.
(4 marks)
(Total: 20 marks)
Page 3 of 24
PUBLIC SECTOR ACCOUNTING & FINANCE (PAPER 2.5)
CHIEF EXAMINER’S REPORT, QUESTIONS AND MARKING SCHEME
EXAMINER’S GENERAL COMMENTS
One could describe the overall understanding of the examination questions by
candidates as 50 percent fair and 50 percent poor. This may be due to poor preparation
for the examination by candidates. However, as already indicated, there were a
handful of good and excellent answers that were given by some candidates showing
that they had prepared well for the paper and had good knowledge of the subject-
matter
STANDARD OF THE PAPER
The standard and the choice of the questions were satisfactory. The coverage and
weighting structure of the Public Sector Accounting and Finance Paper seemed to
have been followed. The interpretation of a few of the questions however appeared
problematic in the minds of many of the candidates. There were no minor errors
connected with syntax and spelling. The Questions set were not sub-standard.
However, many candidates struggled to understand their meaning. The weighting
and marks allocation were commendable.
GENERAL PERFORMANCE OF CANDIDATES
Scripts that were marked and moderated indicated poor performance in many
examination centres and average performance in a few others. However, there were
some isolated good scripts that were marked throughout the country. This is not
surprising because of the type of preparation for the examination in different centres.
The performance of candidates may also be a function of good teaching. The nature of
answers presented by candidates in the examination generally depended on various
factors, such as skills and experience acquired in Public Sector Accounting and
Finance by some practicing public sector accounting and finance staff and the
knowledge other candidates had acquired during their studies and preparation for
the paper.
STRENGTHS OF CANDIDATES
It is not easy to assess the strengths of the candidates. It is obvious that some of the
candidates were well prepared for the examination and this was exhibited in the
excellent answers to the questions. Others appeared to think that the examination
could be grossed over and still pass. Such candidates failed woefully.
Page 1 of 24
,QUESTION ONE
a) Accounting Concepts and Bases are broad basic assumptions, which underlie the
preparation of the periodic financial statements of entities in the public sector. Unless
stated, it would be assumed that they have been adhered to when preparing financial
statements.
Required:
Explain THREE (3) key characteristics of each of the following Accounting Bases used in
Public Sector Accounting:
i) Commitment accounting
ii) Accrual accounting
iii) Cash accounting
(9 marks)
b) One objective of Public Sector Accounting is accountability. Accountability requires that
government justifies how public resources are raised and utilized by means of Financial
Reporting. Financial Reporting helps to improve the performance of, and trust in, the
public sector.
Required:
Explain FOUR (4) other objectives of Financial Reporting in public sector organisations.
(6 marks)
c) There were several challenges in Public Financial Management in Ghana. As a result, the
Ghana Integrated Financial Management Information System (GIFMIS) which has been
touted as a flagship system for improved Public Financial Management (PFM) in Ghana
was introduced.
Required:
Explain FIVE (5) key PFM challenges the GIFMIS seeks to address. (5 marks)
(Total: 20 marks)
Page 2 of 24
, QUESTION TWO
a) The backward development in the public sector has been attributed to weaknesses in the
Internal Control Systems in the public sector. Proper systems for the effective control over
the custody and management of assets in public institutions is critical for Public Sector
Accounting.
Required:
Analyse FOUR (4) key control measures, required to be put in place to ensure effective
management of Public Assets. (6 marks)
b) Funds are released from the consolidated fund to the Ministries, Departments and Agencies
(MDAs) for use only when appropriation bill has been passed into an appropriation act.
However, when Appropriation Act is issued, there are certain procedures usually followed
in making payments for Capital Expenditure.
Required:
Outline the procedures for payment of works procured by an MDA. (4 marks)
c) Section 92 (1) of the Public Procurement Act, 2003 (Act 663) provides that any person who
contravenes any provision of the Act commits an offence and where no penalty has been
provided for the offence, the person is liable on summary conviction to a fine not exceeding
1000 penalty units or a term of imprisonment not exceeding five years or to both.
Required:
Explain FOUR (4) circumstances that may constitute an offence as provided by the Public
Procurement Act 2003, (Act 663). (6 marks)
d) You have recently been appointed as a District Chief Executive (DCE) of a particular
district. It has come to your attention that the Internally Generated Funds (IGF) of the
District Assembly is very low and you intend to address the problem for the assembly.
Required:
Identify FOUR (4) ways in which the IGF of the assembly can be improved.
(4 marks)
(Total: 20 marks)
Page 3 of 24
