Thursday, July 16, 2020 / 06:47 AM / By TheAnalyst / OAuGF / Header Image Credit: Ecographics
The Auditor-General for the Federation (AuGF), Mr. Anthony Mkpe Ayine, FCA, on Monday, 22nd July, 2019 submitted the 591-page 2017 Annual Report and qualified opinion of the Auditor General for the Federation on the accounts of the Government of the Federal Republic of Nigeria for the year ended 31st December, 2017.
This was in accordance with section 85(2) and (5) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
We recall that the annual report for the 2019 Auditor General's report was equally submitted to the National Assembly on Thursday 21st June, 2018; a 743 page qualified report.
This was the second year in a row (since we started tracking the report) that qualified opinions have been issued in the annual reports of the federation; and as we look forward to the timeline of submission; our analysts will be reviewing the reports to identify specific areas of concerns and material incidences with a view to tracking steps needed or being taken to address them.
Worthy of note must be professional commitment by the staff and members of the AuGF's Annual Report Writing Committees for providing some predictability around when reports are released. Based on this timing however, we look forward to the 2018 Audited Report.
The 2017 OAuGF Report - AUDITOR-GENERAL'S CERTIFICATE
Report of the Auditor-General for the Federation on the Consolidated Financial Statements for the year ended 31st December 2017: Audit Opinion
I have audited the financial statements of the Federal Government of Nigeria, which comprise the statement of financial position as at December 31, 2017, and the statement of financial performance, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In my opinion, except for the effects of the matters described in the Basis for Qualified Opinion Section of this report, the accompanying Financial Statements present fairly in all material respects, the financial position of the Federal Government of Nigeria as at December 31, 2017, and (of) its financial performance and its cash flows for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS).
Basis for Qualified Opinion
EXEMPTIONS TAKEN ON FIRST TIME ADOPTION OF IPSAS
The Federal Government has taken advantage of certain transitional exemptions available to first time adopters of IPSAS as stated within the Accounting Policies Note. The exemptions in respect of accounting for revenues and assets affect the fair presentation of the Financial Statements.
DEFICIENCIES IN THE FINANCIAL REPORTING AND CONSOLIDATION PROCESS
Deficiencies were noted in the process for consolidating the balances of Ministries, Departments and Agencies into one economic entity. There were significant discrepancies in the accounting records as well as material balances which needs to be reconciled.
The consolidation boundary for the Federal Governments' Financial Statements needs also to be adequately defined.
Responsibility for the Financial Statements
In accordance with the provisions of the Finance (Control and Management) Act, Cap F26 LFN 2004, the Accountant-General of the Federation is responsible for the preparation and fair presentation of the Financial Statements of the Federal Government of Nigeria, in accordance with the International Public Sector Accounting Standards (IPSAS). The Accountant-General has thus prepared and submitted to me for audit the Financial Statements as reproduced at Section 12 of my report, in accordance with Section 24 of the Finance (Control and Management) Act and Section 85(5) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
My responsibility is to express an opinion on the financial statements based on audit. I conducted my audit in accordance with the International Standards of Supreme Audit Institutions. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from material misstatement.
An audit involves the performance of procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
An audit also includes an evaluation of the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by management, as well as of the overall presentation of the financial statements.
I believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my qualified audit opinion.
Report on other Legal and Regulatory Requirements
Furthermore, other than with respect to the matters stated within the basis for my opinion, the transactions of the Federal Government of Nigeria operations that have come to our notice or that we have tested as part of our audit have, in all significant respects, been in accordance with the Financial Regulations and relevant legislative authorities.
A. M. AYINE, FCA
Auditor-General for the Federation
Office of the Auditor-General for the Federation
Plot 273 Samuel Ademulegun Street
Central Business District
P.M.B 128 Garki, Abuja
19 July, 2019
Reports Available via the OAuGF Website
12. Pwc Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC - Final Report.Pwc Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC - Final Report.
1. OAuGF 2016 Audited Annual Report Submitted, Issues Qualified Report - Jul 24, 2018