Page 289 - Office Practice and Accounting 10

11 Monthly Statement of
Expenditure

According to New Accounting System, every operating level government office
should prepare certain types of report at the end of month and submit it to the Office
of Treasury and Comptroller and central level. These financial reports prepared by
operating level office are known as monthly statement which are prepared to know
the actual position of budget release, budget expenditure, bank and cash balance and
advance transactions. These reports are prepared in the prescribed form and formats
and submitted on monthly basis or as required by central office or department.
The main monthly statements prepared by operating level office are Statement of
Revenue (AGF No. 9), Monthly Statement of Expenditure (AGF No. 13), Statement
of Clearance of Advance (AGF No. 14), Bank Reconciliation Statement (AGF No. 15)
Monthly Statement of Security Deposit (AGF No. 19). Operating level offices should
submit the monthly expenditure report to get budget for the following month. For
this purpose, operating level offices are required to prepare and submit the financial
reports regularly. Respective central office and department collects such statements
and submits these to Ministry of Finance. While preparing the budget for next year,
Ministry of Finance takes these reports as a strong base.

Importance and objectives of monthly statement

i. Helps to know the actual position of budget release, budget expenditure, bank
and cash balance and advance transactions.

ii. Helps to maintain the budgetary control.
iii. Helps operating level office to maintain up-to-date and secret financial record.
iv. Helps to prepare future budget plan.
v. Helps central level to take decision in financial and budgetary matter.

vi. Helps to analyze budget variance and take the corrective action on budget.
vii. Helps to evaluate the performance of operating level office in terms of budget
utilization.

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