FG en­gages 18 firms to au­dit paras­tatals, agen­cies

Daily Trust - - BUSINESS - By Chris Agabi

The Of­fice of the Ac­coun­tan­tGen­eral of the Fed­er­a­tion has en­gaged the ser­vices of 18 au­dit com­pa­nies to au­dit ac­counts of min­istries, de­part­ments and agen­cies (MDDAs) be­long­ing to the fed­eral gov­ern­ment.

Ad­dress­ing the au­di­tors, yes­ter­day, at the Trea­sury House, the Ac­coun­tan­tGen­eral of the fed­er­a­tion rep­re­sented by the Direc­tor Funds, Al­haji Salau Zubairu, said that the au­dit would en­able gov­ern­ment to assess the true state of its rev­enue gen­er­a­tion, cap­i­tal and re­cur­rent (per­son­nel and over­head) ex­pen­di­ture across the MDAs.

He said that the au­dit would “en­able fed­eral gov­ern­ment reach bet­ter de­ci­sions in view of the dwin­dling in­flow of gov­ern­ment rev­enue.”

He urged the au­di­tors to be pro­fes­sional while car­ry­ing out their as­sign­ment and en­gage young qual­i­fied Nige­ri­ans to as­sist them.

He said that re­cruit­ment of youths would form part of the cri­te­ria for fu­ture re­la­tions be­tween the gov­ern­ment and the or­gan­i­sa­tions.

The first phase of this as­sign­ment, the au­di­tor­gen­eral said, was di­vided into two cat­e­gories and would in­volve 33 agen­cies.

Cat­e­gory A, he said, com­prised eight agen­cies with a turnover of above N100 bil­lion. He said that Cat­e­gory B in­volved 25 agen­cies with a turnover of be­low N100 bil­lion.

The process au­dit, cov­er­ing the pe­riod of 2010- 2015, would be com­pleted in 18 months, he said.

The au­di­tor-gen­eral gave the au­di­tors the terms of ref­er­ence for the job to in­clude un­der­tak­ing a crit­i­cal re­view of the fi­nan­cial state­ments of the or­gan­i­sa­tions over the last five years; Con­firm the sources and quan­tum of fund­ing re­ceived from gov­ern­ment (whether loans, sub­ven­tions, grants, etc.) and rec­on­cile with trea­sury records; Re­view the sources of rev­enues ac­cru­ing to the or­gan­i­sa­tions and the ef­fec­tive­ness of rev­enue gen­er­a­tion and ac­count­ing and study in de­tail the en­abling laws es­tab­lish­ing the or­gan­i­sa­tions with a view to iden­ti­fy­ing pos­si­ble con­straints and ar­eas of im­prove­ment.

Oth­ers in­clude es­tab­lish the cost of op­er­a­tions and make ap­pro­pri­ate rec­om­men­da­tions to un­der­stand real and per­son­nel cost pro­file; Un­der­stand con­trac­tual re­cur­rent ex­penses; Un­der­stand cost as­so­ci­ated with rev­enue col­lec­tion or rev­enue shar­ing ar­range­ments and de­ter­mine the amount of re­mit­tances made to the Con­sol­i­dated Rev­enue Fund (CRF) over the last five years in the form of op­er­at­ing sur­plus, rev­enue div­i­dends.

They were also to de­ter­mine the ex­tent of com­pli­ance with ex­tant reg­u­la­tions re­gard­ing the ad­e­quacy and reg­u­lar­ity of re­mit­tances to the CRF, iden­tify all in­come and in­ter­est thereon and make ad­e­quate rec­om­men­da­tions on the fu­ture man­age­ment of the or­gan­i­sa­tions.

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