FG engages 18 firms to audit parastatals, agencies
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.