Statement of Financial Performance
This component functions like an income statement. It presents all revenues earned and expenses incurred over the financial year. It details whether the government operated at a “Surplus” or a “Deficit.” A surplus indicates that public revenues exceeded operational expenses, while a deficit shows operational costs outpaced revenues.
Statement of Financial Position
This statement reflects the government’s balance sheet at a specific point in time (usually June 30th or December 31st). It details:
- Assets: Current assets (cash, short-term receivables) and non-current assets (infrastructure, military hardware, land).
- Liabilities: Current liabilities (accounts payable, short-term debt) and non-current liabilities (long-term domestic and external sovereign bonds).
- Net Assets/Equity: The residual interest representing the net wealth or cumulative reserves belonging to the public.
Statement of Cash Flows
The cash flow statement isolates actual cash movements, organizing them into three major functional activities:
- Operating Activities: Cash flows from taxes, fines, and operating grants minus cash paid to public servants and suppliers.
- Investing Activities: Cash spent buying infrastructure, plant, and equipment, or cash received from selling state assets.
- Financing Activities: Cash inflows from borrowing or issuing government bonds minus cash paid out to repay the principal debt.
Statement of Comparison of Budget and Actual Amounts
This unique, mandatory public sector report lines up the original budget, the final adjusted budget, and the actual amounts spent or collected. Any significant variances between the authorized budget and the actual execution must be explicitly explained in accompanying footnotes to ensure legislative accountability.
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