The Senate Committee on Public Accounts has queried the Financial Reporting Council (FRC) over the extra-budgetary expenditure of N258 million on personnel cost in the agency’s budget for 2017 fiscal year.

The Committee chaired by Senator Mathew Urhoghide hinged the query on 2018 Audited Report prepared by the Office of the Auditor General of the Federation (AuGF), which is being considered by the National Assembly.

The query reads:

We observed, from audit, that the Council incurred the sum of N339,834,586.00 as against N81,245,107.00 contained in the 2017 approved budget. This resulted in an extra budgetary expenditure of N258,589,479.00 on Personnel cost.

This non-compliance with the Appropriation Act was due to the failure of the Executive Secretary to seek approval for supplementary budget from the appropriate authorities, that is, through the Ministry of Finance and National Assembly.

But, the Executive Secretary of FRC, Mr. Daniel Asapokhai in his response, said in the year 2017, the sum of N81 million was appropriated as government subvention for personnel cost for the council, adding that the amount was to augment the Council’s personnel cost for the fiscal year.

The Council customarily prepare its budget at the beginning of every year detailing both Internally Generated Revenue (IGR), and government subvention. This is usually sent for approval before implementation. The Council has an approved salary structure which it pays from the IGR. The amount referenced by the Auditors as over expenditures not approved was staff salary funded via IGR which contained in the approved budget,

he explained

The Committee has, therefore asked the Council to present the approval for N258 million Extra-budgetary expenditure by the National Assembly.

The FRC Executive Secretary has promised to send the document backing the expenditure to the Senate Committee for perusal and necessary action.

Justin Nwosu

Justin Nwosu is the founder and publisher of Flavision. His core interest is in writing unbiased news about Nigeria in particular and Africa in general. He’s a strong adherent of investigative journalism, with a bent on exposing corruption, abuse of power and societal ills.