PSAF Flashcards
(184 cards)
1
Q
What is a budget?
A
A financial quantitative statement prepared and approved prior to a defined period of time for the purpose of attaining a given objective.
2
Q
What are the four main purposes of a government budget?
A
(a) To highlight government’s policies which are designed to promote economic growth & employment
(b) A useful guide for allocation of available resources
(c) Used by the executive arm as a means of accountability
(d) A report by the executive arm of govt to the legislature to collect and disburse funds.
3
Q
Name the six steps for budgeting with NCAN.
A
(1) Identifying govt institutions (2) Identifying economic trends (3) Identifying functions/services performed (4) Identifying programmes intended to be carried out (5) Determining sources of financing the budgeted amount (6) Identifying planned taxation.
4
Q
What are the main methods of preparing budgets by government in Nigeria?
A
Traditional, Incremental/Line-item methods, and disbursements of MDAs using last year’s figure as a base and adding a percentage.
5
Q
What are the advantages of traditional budgeting?
A
(1) It is simple to understand and operate (2) It is cheaper to produce (3) It encourages the continuity of projects (4) It suits the country’s level of development (5) It ensures that budget is translated into monetary language.
6
Q
List three disadvantages of traditional budgeting.
A
(1) It allows past errors to be carried forward; not efficient (2) Budget preparation is consequently not well researched (3) Fails to find new programmes of high priority.
7
Q
What does zero-based budgeting require?
A
This requires justification of exp to be justified as if the particular activity is occurring for the first time.
8
Q
What is PPBS in budgeting?
A
Planning, Programming and Budgeting System. It is based on the assessment of organizational services to programs which involve grouping of activities with common objs.
9
Q
What is performance budgeting?
A
The focus here is on results/output attained, rather than what has been repeated.
10
Q
Define periodic budgeting.
A
The operation of a fixed budget over a certain period of time, usually a year.
11
Q
What is a flexible budget?
A
Recognizes the differences between fixed and variable costs.
12
Q
What is a capital expenditure budget?
A
Prepared for capital projects e.g. construction of bridges.
13
Q
What is a rolling plan/continuous budget?
A
The continuous updating of a medium-term plan covering a specified period of time.
14
Q
Name four factors which militate against the budgeting system.
A
(1) Human element (2) The problem of inflation (3) Political, social & cultural elements (4) Changing government policies (5) Low agricultural output.
15
Q
What is a revenue budget?
A
Aggregate of all incomes accruing to a particular ministry, state or local govt.
16
Q
Define budgetary control.
A
The process of comparing the actual with budgeted activity which could be favorable or adverse.
17
Q
Explain cash budgeting.
A
It forecasts cash inflows (receipts) and outflows (payments) of a ministry/parastatal, usually 5 to 6 months of time.
18
Q
What should be included in the preparation of budget information for financial statements?
A
The standard requires disclosure and explanation on the reason for material differences between the budgeted and actual amounts.
19
Q
How should a comparison of budget and actual amounts be presented?
A
The comparison shall be presented separately as: (1) The original and final budgeted amounts (2) The actual amounts on a comparable basis (3) An explanation of material differences between the budget and actual amount.
20
Q
What are the classification segments for budgeting?
A
(1) Administrative segment (2) Economic segment (3) Functional segment (4) Programme segment (5) Fund segment (6) Geographical segment
21
Q
What does the administrative segment identify?
A
Identifies the entity responsible for the public funds (ministries of education, health and common affairs etc.)
22
Q
What does the economic segment identify?
A
Identifies the type of revenue and expenditure budgeted in a particular period e.g. salaries etc.
23
Q
What does the functional segment identify?
A
Organizes government activities according to their broad objectives.
24
Q
What does the programme segment identify?
A
Identifies various set of activities to meet specific policy objs of govt. e.g. Poverty alleviation, food security.
25
What does the fund segment identify?
Identifies the sources of funding government activities.
26
What does the geographical segment identify?
Identifies the geographical location of an entity.
27
What information must an entity disclose about budgetary basis, period and scope?
An entity shall: (1) Explain in notes the budgetary basis & classification basis adopted (2) Disclose by notes the period of the approved budget (3) Identify by notes the entities included in the approved budget.
28
What are the two formats for cash budgeting?
Format 1: Bal b/f + Receipts - Payments = Bal c/f; Format 2: Receipts - Payments = Balance + Bal b/f = Bal c/f
29
What is one key trend that affects budget preparation in Nigeria?
Trend of economic events — Inflation — the available funds.
30
How does traditional budgeting relate to inflation?
One disadvantage is that it leads to inflation.
31
What is the definition of Public Sector?
Public Sector refers to all organizations which are not privately owned and operated but are established
32
What is Government Accounting?
Government accounting is the composite activities of analyzing, recording, summarizing, reporting and interpreting the financial transactions of government ministries, departments and agencies.
33
What is Public Sector Accounting?
Public sector Accounting is a process of recording, summarizing, communicating, analyzing, and interpreting government financial statements and statistics in aggregate and details.
34
What is the primary objective of determining legitimacy in public sector accounting?
To ensure transactions comply with the statutes and accepted norms.
35
What does the stewardship objective in public sector accounting aim to provide?
Evidence of stewardship - being able to account transparently and diligently for resources entrusted.
36
How does public sector accounting assist in planning and control?
By mapping out strategic plans that prevents an organization from drowning in the tides.
37
What is the purpose of objective and timely reporting in public sector accounting?
To provide prompt and accurate statistics for users of PSAFI to evaluate government performance.
38
What does the cost-benefit evaluation objective involve?
The analysis of cost-benefit by alternative courses of action to ensure the welfare of citizens are well provided for.
39
Name the two primary users of Public Sector Accounting Information (PSAFI).
Internal and External users.
40
Who are considered internal users of PSAFI?
Users within the executive arm of public sector entities including the executive (President/TPN, Governors, Chairmen of local government), federal ministers and state commissioners, permanent secretaries and directors, labor unions, CBN, NDIC etc.
41
List three examples of external users of PSAFI.
The National Assembly, members of the public, researchers, foreign countries, foreign financial institutions (IMF, World Bank, UNICEF).
42
Why is PSAFI important to both internal and external users?
Both want to know whether the accounting information enhances the quality, consistency and transparency of public sector financial reporting.
43
What is one of the key legal frameworks that regulates the receipts and disbursements of public funds in Nigeria?
The 1999 Constitution of the Federal Republic of Nigeria.
44
What does the Finance (Control and Management) Act of 1958 govern?
The receipt and operation of government funds.
45
What does the Allocation of Revenue (Federation Account) Act 1982 describe?
The basis for distribution of revenue accruing to the federation account between the federal, states and local governments.
46
What are the Financial Regulations (2009 edition)?
Accounting manuals of the three tiers of government designed to guide the management of public funds.
47
What purpose do Finance/Treasury Circulars serve?
They are administrative tools used to amend existing provisions of financial regulations, public service rules and introduce new policy guidelines.
48
What is a disadvantage of cash basis accounting in the public sector?
It does not accord with the matching concept.
49
Why can't cash basis accounting be used for economic decisions?
It tends to hide basic information.
50
What are the books of account kept open for in Modified Cash Basis accounting?
For a maximum of 3 months after the end of the year, to capture substantial amount of income or expenses relating to the year just ended.
51
How is revenue recorded under Accrual Basis accounting?
Revenue is recorded when earned and expenditure recorded as liabilities when incurred, even though the receipts or payments of cash have taken place wholly or partly in other accounting periods.
52
What is an advantage of Accrual Basis accounting?
It takes a realistic view of financial transactions.
53
Why does Accrual Basis accounting align with the matching concept?
It matches revenues and expenses to the appropriate accounting period.
54
What is Modified Accrual Basis accounting?
Revenue is recorded when received and not earned, while expenditure is recorded once a liability is incurred. Cash basis is used for recording revenue while accrual basis is used for expenditure.
55
What is Committed Basis accounting?
Records anticipated expenditure evidenced by a contract or purchase order. In Public Sector financing, budgetary and accounting systems are closely related to the commitment basis.
56
What is a fund in government accounting?
A separate fiscal and accounting entity in which resources are held, governed by special regulations, separated from other funds and established for specific purposes.
57
Name the three categories of funds in public sector accounting.
Government funds, Proprietary funds, and Fiduciary funds.
58
What are Government Funds used for?
Used to account for resources derived from the general taxes and revenue powers of government, e.g., debt service fund, special fund, revolving fund.
59
What are Proprietary Funds used for?
Used to account for resources derived from business activities of govt and its agencies such as parastatals, e.g., store various reserves and capital funds granted to GBEs.
60
What are Fiduciary Funds used for?
Used to account for resources held and managed by govt in the capacity of a custodian or trustee, e.g., Petroleum Technology Development Fund (PTDF), Trust and agency fund, and Pension Trust fund.
61
What is the principal function of the MIEF?
To provide financial resources or funding to finance development projects and improvements to infrastructure in member countries.
62
What are the three main financing mechanisms of the MIEF?
1) Loans to governments 2) Equity investments 3) Technical assistance grants
63
Who is eligible for MIEF financing?
1) Governments 2) Public entities 3) Private sector companies 4) PPPs (Public-Private Partnerships)
64
What economic sector is specifically mentioned as receiving MIEF financing?
Energy infrastructure and renewable energy projects
65
What condition must be met for a project to receive MIEF financing?
The project must demonstrate financial viability and economic feasibility.
66
What aspect of governance does the MIEF emphasize in funded projects?
Transparency and accountability in project implementation
67
What is the main purpose of MIEF's technical assistance grants?
To provide expertise and funding for project preparation and capacity building
68
What is the relationship between MIEF and economic growth?
MIEF aims to promote sustainable economic growth in developing countries through its investments.
69
What role does MIEF play in regional integration?
MIEF supports cross-border infrastructure projects that enhance regional integration and cooperation.
70
What environmental requirement does MIEF have for projects?
Projects must adhere to environmental and social safeguards.
71
What is the composition of the MIEF's financial resources?
Mainly funded by capital contributions from member countries and borrowing from international capital markets.
72
What aspect of risk does MIEF consider in project evaluation?
MIEF evaluates both financial risks and country/political risks.
73
What is a key benefit of MIEF financing compared to commercial financing?
MIEF offers more favorable terms including longer repayment periods and lower interest rates.
74
What type of technical support does MIEF provide?
Project preparation, implementation support, and capacity building.
75
How does MIEF support innovation?
By financing projects that introduce new technologies or innovative approaches to development challenges.
76
What is MIEF's approach to poverty reduction?
MIEF focuses on projects that create jobs and improve access to basic services.
77
What type of infrastructure projects does MIEF prioritize?
Energy, transportation, water supply, sanitation, and telecommunications.
78
What is the purpose of MIEF's equity investments?
To catalyze private sector investment in development projects by reducing risk.
79
What is the MIEF's policy on debt sustainability?
MIEF assesses borrowers' debt sustainability and capacity to repay before approving financing.
80
How does MIEF address gender equality?
MIEF promotes projects that advance gender equality and women's empowerment.
81
What is the role of governance in MIEF's operational framework?
Good governance is a cornerstone of MIEF's approach to project implementation.
82
What is MIEF's stance on climate change?
MIEF supports climate-resilient infrastructure and projects that contribute to mitigation or adaptation.
83
How does MIEF engage with local communities?
MIEF ensures consultation with and participation of local communities affected by projects.
84
What distinguishes MIEF from commercial banks?
MIEF focuses on development impact rather than profit maximization.
85
What is MIEF's position on knowledge sharing?
MIEF promotes knowledge sharing and best practices among member countries.
86
How does MIEF contribute to the SDGs?
By financing projects aligned with the Sustainable Development Goals, particularly infrastructure development.
87
What role does the private sector play in MIEF operations?
MIEF works to mobilize private sector resources and expertise through various partnership arrangements.
88
What is MIEF's approach to project monitoring?
MIEF implements robust monitoring and evaluation systems to track project implementation and impact.
89
How does MIEF support capacity building?
Through technical assistance, training programs, and knowledge transfer to strengthen institutional capacity.
90
What is MIEF's ultimate goal?
To foster sustainable development and improve quality of life in member countries.
91
What are the 6 phases of a business/economic cycle?
1) Expansion/Prosperity 2) Peak/Boom 3) Recession 4) Depression 5) Trough 6) Recovery
92
During which phase of the business cycle do employment, output, and wages increase simultaneously?
Expansion phase
93
What happens to interest rates during the expansion phase of a business cycle?
Interest rates increase (creditors lend money at higher interest rates)
94
What characterizes the peak phase in a business cycle?
Growth slows down, economic factors are at their highest but don't increase further, and there's a gradual decrease in demand
95
What is the main characteristic of the recession phase in a business cycle?
Rapid and steady decline in demand for products, with all economic factors starting to decline
96
What happens to the supply-demand relationship during recession?
Supply exceeds demand as producers are unaware of the decrease in demand and continue to produce goods/services
97
What actions do producers take during the depression phase?
Cut down on further investment in factors of production (labor, machinery, furniture)
98
What happens to national income during the trough phase?
Rapid decline in national income
99
What happens to interest rates during the trough phase?
Interest rates decrease as banks reduce lending
100
What marks the beginning of the recovery phase?
A turnaround at the trough and the economy starts recovering from negative growth rate
101
What happens to prices during the recovery phase?
Prices start to pick up
102
What are the extreme points in a business cycle?
Peak and trough
103
What does PPP stand for in public finance?
Public-Private Partnership
104
What does a Public-Private Partnership involve?
A private entity financing, constructing or managing a project in return for a promised stream of payments
105
What is the source of payments in a PPP?
Directly from government or indirectly from users over the projected life of the project
106
What does the DBFO type of private finance initiative stand for?
Design-Build-Finance-Operate-Transfer
107
In a Design-Build contract type of PPP, who assumes all risk?
The private sector partner
108
What does O&M stand for in PPP models?
Operation and Maintenance
109
In an O&M contract, who retains ownership of the asset?
The public partner
110
What does BOO stand for in PPP models?
Build-Own-Operate
111
What happens to infrastructure ownership in a BOT (Build-Operate-Transfer) model?
Ownership is transferred back to the public sector partner after a specific period
112
What is considered the main efficiency advantage of PPPs?
The private sector is better at managing investment projects than the public sector
113
How do PPPs provide extra investment for projects?
They provide private sector funds for projects difficult for government to finance through borrowing and taxes
114
Why is timely delivery encouraged in PPP projects?
Because the private sector is not paid until the asset has been delivered
115
What is a key disadvantage of PPPs related to costs?
Private finance has always been more expensive than government borrowing
116
What is a concern regarding infrastructure in PPP contracts?
Infrastructure may not be designed to last more than the length of the contract
117
What is privatization defined as?
The economic restructuring that involves transfer of ownership, interest and control from public to private individuals/institutions/associations
118
What are the two forms of privatization mentioned in the notes?
1) Privatization of capital 2) Privatization of management/contracting out of public services
119
What is commercialization in the context of public finance?
The re-organization of enterprises partially owned by government to operate as profit-making commercial ventures without government subsidies
120
What are the three forms of privatization mentioned?
1) Full privatization 2) Partial privatization 3) Fully commercialized
121
# Privatization and Commercialization Flashcards (CSV Format)
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123
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answer
124
What is partial commercialization as mentioned in the notes?
The enterprise will continue to enjoy some support from the government towards operating costs and future capital investment (e.g., NEPA).
125
What is the first challenge of privatization mentioned in the notes?
The fear that only the wealthy Nigerians would benefit from the exercise to the detriment of the masses.
126
What concern exists about foreign ownership in privatization?
Foreign and certain ethnic groups would buy up most of the shares offered, thereby consolidating their control and dominance of the economy.
127
What economic factor poses a challenge to privatization?
The state of underdevelopment of the economy.
128
What market-related challenge affects privatization efforts?
The preparedness of the money and capital markets in the country for this exercise.
129
What concern exists regarding share valuation in privatization?
The possibility of not valuing the shares properly.
130
How does privatization affect government financial burden?
It relieved the federal government of the huge and growing burden of financing the investment needs and operating deficits of the privatized enterprises.
131
What fiscal benefit does privatization provide to the government?
It contributed considerable improvement in tax revenue to the government.
132
How does privatization affect political patronage?
It has greatly minimized the scope of political patronage in the form of board appointments.
133
What effect did privatization have on personal share ownership in Nigeria?
It massively expanded personal share ownership in Nigeria.
134
How did privatization impact the Nigerian capital market?
Flotation of shares of privatized enterprises have greatly stimulated rapid growth of the Nigerian capital market.
135
What is the first main thrust (goal) of the commercialization program?
To provide enhanced operational autonomy at enterprise level.
136
How does commercialization affect management information systems?
It aims to upgrade the management information system of the affected enterprises.
137
What organizational improvement does commercialization seek?
To strengthen the financial and accounting controls at the enterprise level.
138
What management approach does commercialization promote?
Evolve a more result-oriented and accountable management based on performance contracts.
139
What human resource strategy is part of commercialization?
Provide competitive remuneration system to be able to attract, recruit and retain suitably qualified personnel.
140
What percentage of shares were typically offered in privatization programs?
Not explicitly stated in the visible notes, but the context suggests significant portions were offered to the public.
141
Which Nigerian utility was mentioned as an example of partial commercialization?
NEPA (National Electric Power Authority).
142
What is one of the social concerns about privatization mentioned?
The fear that it would benefit only wealthy citizens to the detriment of the masses.
143
What is a key financial benefit of privatization to the government?
Relief from the burden of financing investment needs and operating deficits of enterprises.
144
How many challenges of privatization are listed in the notes?
Four challenges are listed (fear of benefiting only wealthy citizens, foreign ownership concentration, underdevelopment of economy, market preparedness, and share valuation issues).
145
How many benefits of privatization are listed in the notes?
Five benefits are listed (relieving government financial burden, improving tax revenue, minimizing political patronage, expanding share ownership, and stimulating capital market growth).
146
What type of management system does commercialization aim to establish?
A more result-oriented and accountable management based on performance contracts.
147
What control systems does commercialization aim to strengthen?
Financial and accounting controls at the enterprise level.
148
What is a key human resource objective of commercialization?
To provide competitive remuneration to attract and retain qualified personnel.
149
How does privatization affect government board appointments?
It minimizes the scope of political patronage in the form of board appointments.
150
What economic market does privatization help develop according to the notes?
The Nigerian capital market.
151
What does commercialization aim to enhance at the enterprise level?
Operational autonomy.
152
What form of contracts are mentioned as part of commercialization?
Performance contracts.
153
What is the relationship between privatization and public share ownership?
Privatization massively expanded personal share ownership in Nigeria.
154
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155
What is the definition of MDEF?
Macromolecule of DNA that encodes a function or protein
156
What are the primary components of the MDEF concept?
DNA as a medium for term key repository (gene expression + regulatory regions)
157
What is the relationship between MDEF and GRFs?
GRFs (Gene Regulatory Factors) interact with the regulatory regions of an MDEF
158
Define the concept of log(G)
The information content of gene expression, a mathematical representation of gene activity
159
What are the three main processes of MDEF?
Transcription to form mRNA
160
What is log expression in the MDEF framework?
The logarithm of gene expression is a key measure that helps normalize and compare expression values
161
How does an interaction network relate to MDEFs?
An interaction network shows how multiple MDEFs and their proteins interact in a biological system
162
What is DBTF and its function?
DNA Binding Transcription Factor - a protein that binds to DNA and regulates transcription
163
What is the relationship between transcription and log(G)?
Transcription is the process that produces mRNA which leads to protein expression measured by log(G)
164
What is meant by "information theory applied to the genome"?
Using mathematical concepts from information theory to analyze genetic data and gene expression patterns
165
What does PCR stand for in genomic context?
Polymerase Chain Reaction - a method to amplify DNA segments
166
Why is log transformation used for gene expression data?
It normalizes data, reduces variance, and makes patterns more visible in large datasets
167
What is the importance of the promoter region in an MDEF?
It's the regulatory region where transcription factors bind to control gene expression
168
How do MDEFs relate to complex traits?
Complex traits are determined by multiple MDEFs interacting in networks rather than single genes
169
What is the relevance of the "Parts of the Genome" concept?
The genome contains coding regions (genes) and non-coding regions that regulate expression
170
What are QTLs and how do they relate to MDEFs?
Quantitative Trait Loci are regions of DNA containing genes associated with a particular trait, often containing multiple MDEFs
171
Describe the concept of GWAS and its relationship to MDEFs
Genome-Wide Association Studies identify genetic variants associated with diseases or traits by examining MDEFs across populations
172
What is the basic principle of comparative genomics?
Comparing genomes across species to identify conserved MDEFs and evolutionary relationships
173
How do cis-regulatory elements function in the MDEF framework?
Cis-regulatory elements are DNA sequences near genes that control transcription by binding transcription factors
174
What is epigenetic modification in the context of MDEFs?
Chemical modifications to DNA or histones that alter gene expression without changing the DNA sequence
175
Explain the concept of "modules" in gene regulatory networks
Functional units of interacting MDEFs that work together to perform specific biological functions
176
What is the significance of ChIP-seq in studying MDEFs?
ChIP-seq identifies DNA binding sites for transcription factors and helps map regulatory networks
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How does the CRISPR-Cas9 system relate to MDEF research?
CRISPR-Cas9 allows precise editing of MDEFs to study their function and regulatory mechanisms
178
What is the ENCODE project and its relevance to MDEFs?
ENCODE (Encyclopedia of DNA Elements) aims to identify all functional elements in the human genome including MDEFs
179
What is the relationship between alternative splicing and MDEFs?
Alternative splicing allows one MDEF to produce multiple protein variants increasing functional diversity
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What are enhancers in the context of gene regulation?
Enhancers are regulatory DNA sequences that increase transcription of MDEFs often located far from the gene
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How do miRNAs regulate gene expression?
microRNAs bind to mRNA to inhibit translation or cause degradation regulating MDEF expression post-transcriptionally
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What are the "hallmarks of cancer" in relation to MDEFs?
Genetic alterations in MDEFs that control cell division cell death and DNA repair leading to cancer development
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What is the Central Dogma in molecular biology?
The flow of genetic information from DNA to RNA to protein (MDEF → mRNA → protein)
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How does RNA-seq technology contribute to MDEF research?
RNA-seq measures the quantity of RNA in a sample allowing researchers to analyze gene expression levels of MDEFs
