Nov 2020 Q5 a.
Explain FIVE (5) segments of Ghana Integrated Financial Management Information System (GIFMIS) chart of Accounts. (5 marks)
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- Institution: an institution as defined in the GFS 2001 Manual “is an economic entity that is capable, in its own right, of owing assets, incurring liabilities and engaging in economic activities and in transactions with other entities. In Ghana, only the Government of Ghana will qualify as an Institutional Unit.
- Funding: the funding classification Provides means of tracking revenue and sources of funding for expenditures. These are the Fund Types and Fund Sources established by law.
- Functions of Government: in this segment the classification of Outlays by Function of Government is defined using definitions in the GFS 2001 manual. The functional classification of Government is to provide strategic overview of the allocation of budget resources between different sectors of the economy. The code is made up of a major, minor and detailed function.
- Organization: In this segment the organizational structure of the MDA/MMDA is defined with the objective of budget and cost allocation at defined and recognized cost centers or units. Its represents ministries, MMDAs, Agencies of Governments and the Departments, Divisions and Sections/Units under them.
- Program, Sub Program, Projects and Activities: this segment is used to identify Government programs and provides the strategic objectives of the MDA/MMDA which defines the outcomes Sub programs are outputs or services that Government entities provide for citizens. They are what should be produced to achieve the strategic objectives. The project’s segments record individual projects where there may be an activity which would have a one to many relationship to projects. It enables transactions to be aggregated and reported as project. The use of this code is mandatory for all developmental projects. The activity segment defines all actions that need to be carried out to achieve an output.
- Location: This segment will record each geographical location, e.g. where work is performed or transactions occur. This is determined by using the Regions, Districts and various subdivisions of Metropolitan, Municipal and District areas.
- Two Spare segments: There are two segments with 6 characters each provided for future business operations. They may be dependent or independent of each other.
- Natural Accounts: This segment is used to define account classes – Revenue, Expenditure, Assets and Liabilities. The natural account segment as produced in the trial balance is an essential component of the Chart of Accounts.
(1 mark for each point explained = 5marks)