The Office of the Auditor-General of the Federation (OAuGF) disclosed that several ministries, departments, and agencies (MDAs) spent up to N284 billion without appropriation in 2020.
This was highlighted in its 2020 audited report dated November 30, 2023, and submitted to the National Assembly. Though constitutionally, the report ought to have been submitted in 2021. This deferment was attributed to the delay in the appointment of a substantive auditor-general of the federation.
The report unveiled a breach of constitutional provisions, as outlined in section 80 (2) of the 1999 Constitution, which prohibits the withdrawal of funds from the Consolidated Revenue Fund without explicit authorisation through an appropriation act or similar legislative measures.
Also, section 80(3) states that “No money shall be withdrawn from any public fund of the Federation, other than the Consolidated Revenue Fund of the Federation unless the issue of those money has been authorised by an Act of the National Assembly”.
The report indicted 256 MDAs for engaging in extra-budgetary expenditure totaling N284.3 billion in 2020, but the sources of this additional spending were neither disclosed nor supported by evidence of supplementary appropriation or approved virement.
It highlighted the lack of proper budgetary and accounting systems within the MDAs as a major contributor to this financial irregularity.
It showed that 28 MDAs, including federal pay offices and the Air Force Institute of Technology, reported negative balances of cash and cash equivalents amounting to a staggering N13.9 trillion. The report attributed these anomalies to weaknesses in the internal control system surrounding the consolidation process at the OAuGF.
The report further highlighted instances where 18 MDAs incurred overhead expenditures of N129.3 billion without proper budgetary provision, and 34 MDAs reported zero overhead expenditure despite having a total budget of N6.7 billion.
Additional discrepancies included extra-budgetary expenditures on employee benefits, subsidiaries, and subsidies, raising questions about the transparency and accountability of the MDAs.
The consolidated statement of financial position revealed negative net assets of N33.34 trillion as of December 31, 2020.
The report attributed these discrepancies to the lack of due diligence from the accountant-general of the federation in ensuring that the release of the overhead costs was limited to approved estimates.
The report revealed that 106 MDAs surpassed their personnel costs budget by N78.76 billion. The report highlighted a lack of disclosure regarding the authorisation of these expenditures, raising concerns about transparency.
It also showed that approximately N1.23 trillion in intangible assets for 659 MDAs lacked proper classification and disclosure, violating IPSAS 31 and a summary of significant accounting policies.
