Page 296 - Account 10

B. Monthly Statement of Expenditure (AGF No. 13)
The operating level offices receive budget releases from their respective central level
offices in terms of advance. By incurring the expenditure in each month, they submit
the monthly report to their central level offices to get the clearance of advance. Various
statements and reports, under operating level accounting, are prepared at the end of each
month. Statements of Expenditure, AGF No. 13, Monthly Report of Uncleared Advance,
AGF. No. 14, Bank Reconciliation Statement, AGF No. 15 are the most important
statements or reports.
Statement of Expenditure or Monthly Expenditure Report is the most important report
prepared under operating level accounting. It has been designed so as to reflect the
position of budget execution and funds of the reporting office on a monthly interval. It is a
summary of annual appropriation, budget release, and the expenses incurred on various
heads, the condition of fund in terms of cash and bank balances and the uncleared portion
of advance and loan, if any, till the end of the current month. It is prepared at the end of
each month after closing advance ledger, bank cash book, budget sheet etc. It serves as
a basis to the central level offices on controlling units to exercise control over the budget
and the fund of operating level offices.

Statements of Expenditure are prepared in the format prescribed under AGF No. 13 by
obtaining necessary information from subsidiary ledgers like, Revolving Fund A/c, Petty
Cash Fund A/c, Advance A/c, Inter-Office Loan A/c etc. and general ledgers like Bank
Cash Book, Budget Sheet etc.

Objectives/Importance of Monthly Statement of Expenditure
Statement of expenditure is the most important report prepared under operating level
accounting. It is prepared at the end of each month, to submit it to the central level office
to get clearance of the advance remained in its name. Its importance can be studied in
terms of the following objectives:
i. To avail data and information pertaining budget release, budget expenditure and
surplus budget on each prescribed head, so as to help the central level offices for
preparing budget estimation for the forthcoming period.
ii. To avail information regarding the condition of advance expenditures and their position
and the inter-office loan, if any, till the last of each month and control over them.
iii. To help the central level office in evaluation whether or not the operating level offices
are following the budgetary rules and regulations in the execution of budget.
iv. To facilitate the central level offices for the preparation of central level accounting
and their auditing because it is the basic document for internal as well as final audit.
Considerations of Preparing the Monthly Statement of Expenditure

Statement of Expenditure is the monthly report, which is submitted, to the central level
office, at the end of each month. All the necessary information should be fulfilled in it by
getting them from a number of subsidiary and general ledgers.
Thus, many things are to be taken into mind while preparing a statement of expenditure.
The important considerations of preparing a Statement of Expenditure are mentioned
below:

296 Aakar’s Office Practice and Accountancy - 10 Monthly Statement 297