CHAPTER 5
FINANCIAL STATEMENTS
The financial statements presented are intended to meet the needs of users who are not in a position to demand reports tailored to meet their specific requirements. These users include stakeholders such as members of the legislature, donors, lenders, tax payers and employees.
The objective of the financial statements is to provide information about the financial position, performance and cash flows that is useful in making and evaluating decisions about the sources, allocation and uses of financial resources and about how the activities were financed. In addition, the financial reporting also provides users with information about whether resources were used in accordance with the approved budget.
Transparency in government begins with full and fair disclosure of financial information. The FGE uses the International Public Sector Accounting Standards (IPSAS) issued by the Public Sector Section of the International Federation of Accountants as a basis for establishing the financial statements.
The FGE accounting system can produce the following set of financial statements:
- A set of federal-level financial statements that includes:
- Statement of Financial Position
- Statement of Financial Performance
- Statement of Changes in Net Assets/Equity
- Cash Flow Statement
- Accounting Policies and Notes to Financial Statements
- Statement of Comparison of Budget and Actual Amounts – Domestic Revenue
- Statement of Comparison of Budget and Actual Amounts – External Assistance
- Statement of Comparison of Budget and Actual Amounts – Expenditure
- Comparison of Original and Adjusted Budget and Actual Amounts
- Statement of Expenditure by Functional Classification
- A set of countrywide financial statements that includes:
- Summary Statement of Domestic and External Revenues
- Summary Statement of Expenditure
- Summary Statement of Expenditure and its Statement.
In addition to the above financial statements, the accounting system also produces detailed revenue and expenditure schedules that provide detailed information and analysis of the summary countrywide financial statements.
