Budget Sheet

A budget sheet is the statement of the annual appropriation of the budget, budget release and budget expenditures of operating level offices. It is one of the main documents, which is prepared by all operating level offices to record and report budget release and budget expenditures. It is used for controlling budget expenditures. It is prepared by such offices at the end of each month. It is prepared with the help of journal vouchers and submitted to the central level offices. It has 12 main heads and 47 subheads of expenditures. It is prepared under the prescribed format of AGF No. 8.

Objectives of Budget Sheet

The main objectives of preparing budget sheet are as follows: -

1. To keep a systematic record of the annual appropriation of the budget, budget release and budget expenditure under different budget heads and subheads.
2. To provide detailed information regarding annual appropriation of the budget, budget release and budget expenditures.
3. To maintain effective control on misappropriation of public funds while spending money on different heads of expenditures.
4. To make the expenditures within the limitations of the budget.
5. To provide historical data on expenditures and to assist for estimating budget.
6. To provide financial data and information for preparing financial statements and reports.

Importance of Budget Sheet

Its main importance are as follows:

1. It provides information about head appropriate of budget release and amount spent on each budget head and the balance remained on each budget head.
2. It helps to provide information of budget release that how much has been released and how much yet to be released.
3. It provides instruction to the operating level officer to make expenditures on main heads and sub-heads.
4. It controls the budget of an office.
5. It facilitates the preparation of statement of expenditures.

Parts of Budget Sheet

A budget sheet is a budgetary account to be prepared by operating level government offices. It has three parts which are described below:

1. Annual appropriation part
   It is the first part of abudget allocation on different heads are mentioned. The approved budget amount on different budget heads for the fiscal year is shown in the different column. No journal voucher is necessary to be passed to fill the things in this part. Sometimes, supplementary budget and budget transfer are received from central level office. Thus, it is the first or upper part of the budget sheet.
2. Budget release part
   It is the second part of the budget sheet which contains the amount of budget release received periodically recorded for each head and sub-heads. The amount of budget release is received out of total annual budget appropriation from the office of treasury and comptroller. The amount received as the initial revolving fund and additional revolving fund is also included in this part. The office of treasury and comptroller release the budget either on monthly or four monthly bases. At the end of each fiscal year, this part should close by depositing the surplus onto freeze account or consolidated fund account. The surplus budget on each head of expenditure is mentioned within bracket in the column of concerned heads.
3. Budget expenditure part
   It is the third part of the budget sheet where all budget expenditure are recorded into different heads and subheads for the period. It also recorded the expenditure incurred through petty cash fund. It should not record those transaction which are not related with budget head subheads. Advance payment is also recorded. When the advance is given to a certain person for some purpose, it is recorded in the concerned budget head column and the total column. When the advance is cleared the advance amount is shown within the bracket and actual expenditure is recorded outside the bracket.

Example

The following transactions of District Education Office, Kathmandu are provided to you:

Aswin 1 Received a bank order and release order for the actual expenditure of the last month Rs. 70,000.

Aswin 3 Issued a cheque Rs. 1,500 to Section Officer, Mr. Nimesh as an advance for a tour.

Aswin 3 Paid Rs. 1,400 Gorkhapatra Publication for publication of a notice.

Aswin 16 Mr. Nimesh submitted the bill of travelling expenses of Rs. 1,500 and his advance was cleared.

Aswin 29 Issued a cheque of Rs.41,000 for the distribution of salary after deduction of Rs.10,000 for provident fund, Rs. 3,000 for provident fund loan and Rs.1,000 for income tax.

Required: Budget Sheet

Solution: