By Suzan Edeh, Bauchi The 2022 Audit report of Bauchi state has raised critical observations of refusal for Audit Periodic check...
By Suzan Edeh, Bauchi
The 2022 Audit report of Bauchi state has raised critical observations of refusal for Audit Periodic checks, government not remitting 10 percent of Internally Generated Revenue to the 20 LGAs, improvement in monthly Bank reconciliation statements, lack of internal control systems in MDAs and lack of free flow of information to key stakeholders in the MDAs.
According to the State Auditor-General's Annual Report for the Year 2022 submitted to the State House of Assembly through the Clerk of the House in line with the Constitution of the Federal Republic of Nigeria 1999 as amended, the heart of good governance is financial reporting of transactions, conditions and economic phenomenal that transpired in the course of a reporting period which will have impact in Public Finance Policy and administration in the state.
The Auditor General said that some significant issues and queries arising from the inspection report of the MDAs are yet to be resolved.
According to the report, the Bauchi state Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Program (IBSDLEIP)Agency refused access to Audit periodic Check from inception to date contrary to the provision of Nigerian Constitution 1999 as amended and Audit Law of 2021 Section 13 (b.iv).
He recommended that the management should be enforced to comply with the provision of the constitution quoted above.
Under Statutory Allocation to local government councils from Internally Generated Revenue, the report lamented that the government has not remitted Internally Generated Revenue (IGR) to the 20 Local governments in the state, as revealed by Accountant General's account.
"The 10% of the Internally Generated Revenue is to be paid Governments as prescribed by Section 162(5) of the 19 of the Federal Republic of Nigeria as amended. The amount that would have been remitted to the 20 Local Governments in 2022 amounted to N2,523,399,968.34.There was an increase in IGR in the year under review totalling N7,331,551,715.70 or 40.95% Vis-`a-vis 2021" The report said
The report further called on Account Officers in the state to ensure Bank reconciliation statements which should be prepared on a monthly basis, pointing out that some MDAs in the state no longer maintain Departmental Vote books which are important records.
In the area of Internal Control Mechanism, the report stressed on the importance of sound Internal Control in any organization which it noted cannot be over emphasized.
"It has been observed that in most MDAs, there is lack of sound internal control system. During the period, none of the Internal Auditors in the Ministries, Departments and Agencies(MDAs) sent in any copy of report to this Office, contrary to the provision of Bauchi State Financial Regulations Chapter 15, Rule 1508 of 2001.This has greatly impacted negatively on the effectiveness and efficiency of the internal Auditor and therefore, certain Internal Control might have been violated" The report stated.
In regards to value for money audit, the Auditor General observed that copies of contract agreements accompanied by a copy of Tender Board Recommendation are not forwarded to his office which hinders the proper execution of Audit (Project Monitoring).
According to the report, "Value for money Audit involves project monitoring and Evaluation.It is an aspect of audit known as performance Performance Audit ensures that economy, efficiency and effectiveness of government related programmes are maintained.In pursuance of this, the Bauchi state Financial Regulation Chapter 10, Rule 1038 and Other Extant Rules that copies of contract agreements accompanied by a copy of Tender Board Recommendation be forwarded to the State Auditor General to ensure that projects are monitored and reported upon.Contrary to the above quotes financial regulations, the required documents are not forwarded to my office"
On Outstanding Advances, the report stated that the total amount of Outstanding Advances granted as contained in the Accountant General Books of Accounts amounted to N760,190, 828.68 as at 31st December, 2022 resulting to an increase of N50,000,000 against that of the previous year which stood at N760,140, 828.68, adding that efforts should be made to retired the advances against the officers concerned.
The report noted that there is no free flow of basic information to key stakeholders in the MDAs, saying that Contract Documents, Government employment and promotion documents are not regularly sent to the office of Auditor General for follow-up, noting that as a result, the information gap reduces the level of monitoring expected of the office.
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