The new government accounting system requires an operating level office to regularly report on expenditure to the concerned central level office. For this purpose, a number of reports are prepared in the form of statements and submitted to the concerned central level office. For this purpose, a number of reports are prepared in the form of statements that are submitted to the concerned central office. These reports or statements are generally prepared on a monthly basis. Among such statements, one important statement is the statement of expenditure or monthly expenditure report.
Meaning of Statement of expenditure
Statement of expenditure is a multi-column self-balancing monthly statement of expenditures of an operating level office. It is prepared and submitted to the concerned central level office at the end of every month as a monthly report. Therefore, it is also called a monthly expenditure report. This statement shows a summary of the annual appropriation of the budget to the office with budget heads and their numbers, budget release up to the current month, the expenditure of the current month, total expenditure up to the current month, the balance of budget, unsettled advance amounts, cash and bank balances, and loan receivable and payable at the end of a month.
Importance of statement of expenditure
The statement of expenditure is an important statement, which is prepared by the operating level office to show its expenditure of the month. The following points explain the importance of a statement of expenditure:
- It helps to evaluate the progress of operating level offices.
- It provides the necessary information to the central level offices for controlling budget expenditure.
- It provides information to the office of the treasury and comptroller for making a decision on the budget release and revolving fund.
- It provides information for making future budget of operating level offices.
- Read Important : Diminishing Method