A monthly statement is a written record which is prepared by a financial institution usually once a month, listing all the credit transactions for an account, including purchases, payments, fees and finance charges.
A monthly statement is prepared in government as well as non-government offices to provide various information.
A monthly statement is a strong and reliable source of financial data and information regarding the budget release, budget expenditure, outstanding advance and fund position of the op operating level office.
we use it as an effective financial tool for controlling the financial activities of the operating level office.
The monthly statement includes:
Statement of Expenditure (AGF No.13)
Statement of Advance Clearance (AGF No.14)
Bank Reconciliation Statement (AGF No.15)
related to the expenditures.
Such statements relating to revenues include
Monthly Report of Revenues (AGF No.9)
Monthly Report of Security Deposits (AGF No.19).
A monthly statement is a summary of financial documents, Which we prepare by each operating level office.
Objectives of Monthly Statement
The main objectives of the monthly statement are as follows
• To provide reliable information and data on budget release, budget expenditure, outstanding advance and fund position.
•To help and control the financial activities on budget expenditures of each operating level office.
•To evaluate the financial activities and weakness of the government offices.
•To facilitate internal audit and final audit through the supply of required financial data and information.
• To make the plans, policies and decisions regarding the budget release, budget expenditure, outstanding advance and fund position.
Importance of Monthly Statement
1) Avails necessary information and data
A monthly statement is a strong and reliable source of financial data and information regarding the budget release, budget expenditure, outstanding advance and fund position of the operating level office.
2) Controls the budget
Monthly statement is the most important financial tools to effective control on budget expenditures which helps to maintain the expenditure within the limitations of budget.
3) Helps to make auditing easier
Monthly statements are the basic documents for control and final auditing. These documents provide the actual financial data and information, which make the job of internal and final auditing easier and economical.
4) Helps in monitoring and evaluation
Monthly statement are considered as financial and administrative tools for the proper estimate and evaluation of the financial activities of the government offices.
These statements provide information for budget release, budget expenditure and budget surplus, through which the efficiency, performance and progress of each project can be evaluated.