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THE ASSOCIATION OF ACCOUNTING TECHNICIANS OF SRI LANKA

FINAL EXAMINATION – DECEMBER 2009

(38) Public Sector Accounting 03-01-2010

Afternoon
(Stream C) [2.00 – 5.00]
Time: 3 hours

No. of Pages: 02
• Instructions to candidates: No. of questions: 06
(1) All questions should be answered.
(2) Answers should be in one language, in the medium applied for, in the booklets provided.
(3) 100 marks.

01. (a) Highlight five(05) important matters relating to the role played by Parliament in the
control of public finance in the country. (05 marks)

(b) Briefly explain five(05) significant matters pertaining to the role of the cabinet of
Ministers of the government in public financial management. (05 marks)

(c) Mention and briefly explain six(06) matters connected with the Consolidated Fund of
the Republic of Sri Lanka, as laid down in the constitution. (06 marks)
(Total 16 marks)

02. (a) Compare the main financial activities operated by a government department with
those of a Provincial Council, listing five(05) such activities and showing similarities,
if any.
(05 marks)
(b) Briefly explain the nature, operation and use of Advance Account activities in
government institutions. (06 marks)

(c) State and briefly explain the mechanism through which advance account activities
are controlled. (04 marks)
(Total 15 marks)

03. (a) The General Treasury, under the Ministry of Finance plays a vital role in regulating
revenue and expenditure of the government. List ten(10) matters for which
government ministries / departments are required to obtain Treasury approval.
(10 marks)

(b) Public Corporations participate and contribute in various activities of the economy.

(1) State briefly how corporations are established. (02 marks)

(2) List the duties of the Auditor General in discharging the responsibility of
accountability in operations of these corporations. (08 marks)
(Total 20 marks)
04. (a) List briefly the differences with regard to the following in a government institution
and a limited liability company in the private sector.

(1) Financial planning for the ensuing year.

(2) Funding for activities.

(3) Accounting for revenue / income.

(4) Accounting for expenditure.

(5) Providing cash / liquidity.

(6) Presentation of financial statements.

(7) Internal control procedures.

(8) Audit of accounts. (08 marks)

(b) List the books of account and registers prescribed for accounting, stores
management and bank account operations of a government department / ministry.
(07 marks)
(Total 15 marks)

05. (a) Name Revenue Heads and items of Revenue of a local authority. (06 marks)

(b) List programmes of Expenditure of a local authority. (05 marks)

(c) What constitute a Financial statement of a municipal council? (04 marks)

(Total 15 marks)

06. (a) (i) Name principal forms of Foreign Aid received by the government. (03 marks)

(ii) Outline the principles governing budgeting and accounting for foreign aid.
(05 marks)
(iii) What are the special registers required to be maintained in respect of Foreign
Aid projects? (05 marks)

(b) Describe ‘CIGAS’ and the contribution it markes to public sector accounting.
(06 marks)
(Total 19 marks)

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