Lesson Notes By Weeks and Term - Senior Secondary 3

Term: 2^nd Term

Week: 5

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Public sector account III

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Explain the meaning of head and sub-head
2. Define fund account
3. List and explain the types of fund
4. Give reasons for fund account in the public sector

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

PUBLIC SECTOR ACCOUNTING

HEADS: A Head is a code in public sector account, giving as a number and restricted to each items of the government revenue and expenditure for the purpose control of the expenditure and the allocation of the revenue.

SUB-HEAD: sub-head is under the Head or code. It is relates to each account sub allocated under each head.  Examples:

HEAD        ITEMS

42     personal emoluments

SUB-HEAD (under the Head)

          01     Basic Salaries

          02     Rent allowance

          03     Responsibility allowance

          04     Tax deduction

FUND ACCOUNT:

Fund is a separate fiscal and accounting entity in which resources are held, governed by special regulations segregation from other funds and established for special purposes on which resources of the fund may be expended.

CLASSIFICATION OF FUND:

Government fund: these are fund used to account for resources derived from the general taxing and other revenue of government e.g.

• Consolidated Revenue Fund
• Development fund
• Contingency fund

Proprietary fund: these are fund used to account for resources meant for business like operations of the government i.e. fund used for parastatals.

Fiduciary fund: these are fund used to account for resources held and managed by the government in the capacity of custodian trustee e.g. Trust fund and Deposit fund.

TYPES OF FUNDS

1. General Fund: these are fund established to account for resources devoted to finance the general administration or services of the government. It is usually called Consolidated Revenue Fund/ Federal Government Account/ Current Fund.

2. Capital Project Funds: the receipts and disbursement of all money used for the acquisition of capital assets are accounted for by Capital Project Fund. This is the Fund which is also being called Development Fund.

3. Contingencies Fund that is specifically set aside for taking care of unforeseen expenditures of unanticipated event. e.g. expenses ion national disasters.

4. Trust and Agency Fund: these are funds used to account for resources held by government as trustee. It is used for the purpose stated in the trustee deed. E.g. police Reward Fund, Armed Forces Comfort Fund, and Service Reward Fund.

5. Debt service Funds: this is created to account for the resources devoted to the payment interest and principal on long-term general obligation debt.

6. Special Fund: it is created for a specific purpose or function e.g. Personal Advance Fund, Treasury clearance Fund.

7. Revolving Fund: this is a fund created to financial services provided by a designated Department to other designated department. e.g. reimbursement loan of N50m giving to

each university to take care of the car refurbishment. It is also called Working Capital fund.

REASONS FOR FUND ACCOUNT IN PUBLIC SECTOR

1. Financial control
2. Future analysis and planning
3. Meeting government target
4. Diagnostic purposes
5. Planning purpose

EVALUATION:    1.  Explain the meaning of

1. head
2. subhead
3. fund account

2. Mention and explain the classes of fund

3. Mention and explain four types of funds

4. Give three reasons for fund account in public sector

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively