Uche Usim, Abuja
A 2017 audit report of the Auditor-General of the Federation (AuGF) has revealed that 16 revenue generating agencies failed to remit a total of N19,025,384,100 to the Consolidated Revenue Fund (CRF). This was even as it said that the Bureau of Public Enterprises (BPE) topped the list of unremitted revenue, with N7,585,116,400.
Other defaulting MDAs included; University of Abuja, 603,446,911;
Modibbo Adama University of Technology, Yola, N8,884,010;
Federal University of Technology, Owerri, N748,178,771; Teachers Registration Council of Nigeria N355,059,96, among others.
The 2017 audit report, signed by the AuGF, Mr. Anthony Ayine, made public on Wednesday further observed that revenue generating agencies dissipate funds on excessive overhead expenditure and extra-budgetary expenditure on contracts thereby reducing their operating surplus.
“Furthermore, 26 of the MDAs that were audited did not deduct and/or remit a total of N1,650,417,379. Overall, audit found that the sum of N20,675,801,479 in various taxes (PAYE, WHT, VAT, among others) in the year under review, was not remitted to the CRF of the Federal government by MDAs.”
In a related development, the AuGF said his Office reviewed the payments procedures and policies in MDAs against the standing regulations and policies of the Federal Government and found out that several payments totalling N26,604,515,374 was made with a total of 140 infractions identified in the payments made by the MDAs.
“The sum of N8,608,588,928.68 was expended in 25 infractions without presenting payment vouchers to justify the payments made in the transactions, which is contrary to the provisions of FR 601, which states “All payment entries in the cash book/accounts shall be vouched for on one of the prescribed treasury forms. Vouchers shall be made out in favour of the person or persons to whom the money is actually due. Under no circumstances shall a cheque be raised or cash paid for services for which a voucher has not been raised.”
Also, a total of 10 MDAs embarked on international travels and trainings without requisite approval from the appropriate authorities as specified in extant circulars, thereby, expending the sum of N2,660,420,450.05 on international travels despite strict restriction placed on it. Furthermore, the sum of N2,789,475,927.84 was expended without providing supporting documents to the payment vouchers in 22 infractions in the MDAs”, he added.
On the implication of the aforesaid, Ayine said non-remittance of revenue surpluses by revenue generating agencies affects financial liquidity of the government and reduces government’s efforts to adequately fund its annual budget.
“It may lead to increase in government’s internal and external borrowing, thereby increasing the Government’s debt burden.
I recommend that a proper strategy to improve the oversight of revenue generating agencies should be devised and implemented. A timely reconciliation of all revenues accruing to the CRF should be done immediately to ensure that funds meant for the Government are remitted immediately. Adequate sanctions should be implemented against the heads of agencies failing to remit appropriately and in a timely manner.’’
