Theory question 106
Public Sector AccountingThe following information was extracted from the Staff Establishment Department of the Logo State Commission for Women Affairs on 30th September, 1990 (post, grade level, number in post and salary scale shown in the figure).
Additional Information: Housing and Transport allowances by Grade Level: 12 and above: Housing ₦2,400 p.a, Transport ₦1,800 p.a; 07 - 11: ₦1,800 p.a, ₦1,200 p.a.; 05 – 06: ₦1,200 p.a., ₦600 p.a.; Others: ₦600 p.a., ₦400 p.a. (b) All the employees are on first step of their salary. You are required to prepare the personnel cost budget for the commission for 1991.
Show the model answer
Personnel Cost Budget for 1991 (number × first-step salary + housing + transport)
Director-General (GL17): 1 × 26,000 = 26,000; housing 2,400; transport 1,800; total 30,200
Directors (GL16): 3 × 20,000 = 60,000; housing 7,200; transport 5,400; total 72,600
Chief Accountant (GL14): 2 × 15,000 = 30,000; housing 4,800; transport 3,600; total 38,400
Accountant I (GL09): 6 × 7,000 = 42,000; housing 10,800; transport 7,200; total 60,000
Executive Officers (GL06): 20 × 4,500 = 90,000; housing 24,000; transport 12,000; total 126,000
Messengers (GL02): 10 × 2,500 = 25,000; housing 6,000; transport 4,000; total 35,000
Totals: 42 staff; salaries 273,000; housing 55,200; transport 34,000; personnel cost budget ₦362,200
Only posts with staff in them cost money; use the first figure of each salary scale.