wp-signups.php Audit Reforms Archives - Centre for Social Justice https://csj-ng.org/tag/audit-reforms/ mainstreaming social justice in public life Tue, 22 Dec 2020 07:57:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://csj-ng.org/wp-content/uploads/2024/03/cropped-CSJ-Favicon-1-32x32.png Audit Reforms Archives - Centre for Social Justice https://csj-ng.org/tag/audit-reforms/ 32 32 CSJ Awards five Government Ministries for High Performance in Audit Assessment Index https://csj-ng.org/csj-awards-five-government-ministries-for-high-performance-in-audit-assessment-index/ https://csj-ng.org/csj-awards-five-government-ministries-for-high-performance-in-audit-assessment-index/#respond Tue, 22 Dec 2020 07:57:06 +0000 https://csj-ng.org/?p=222777 News CSJ Awards five Government Ministries for High Performance in Audit Assessment Index Share on facebook Share on twitter Share on whatsapp Share on telegram The Centre for Social Justice organized an award event on the 17th of December 2020. The event featured various Federal Government Agencies and other Civil Society Organisations. The event, which...

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CSJ Awards five Government Ministries for High Performance in Audit Assessment Index

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Award Recipients with CSJ staff

The Centre for Social Justice organized an award event on the 17th of December 2020. The event featured various Federal Government Agencies and other Civil Society Organisations. The event, which was hosted by Dr. Amaechi Anakwe of Africa Independent Television, started around 2PM at Chelsea Hotel Central Business District Abuja.

The event – the climax of CSJ’s programme on improving the effectiveness of the federal audit process and practice in Nigeria – sought to encourage effective auditing within government circles by awarding the best performers in the assessment. The performances of MDAs were assessed using an Audit Assessment Index developed by the Centre for Social Justice and validated by several professionals, CSO groups and federal government agencies.

The Audit Assessment Index questionnaire was developed following the category of contents of the federal audit reports – (a) issues of access to books, accounts, records and information; (b) extra budgetary and unauthorized expenditure (c) failure in revenue generation and remittances by MDAS; (d) public procurement and disposal infractions; (e) unretired loans, advances and violations of e-payment policy; (f) monetary value of documented infractions; and (g) unauthorised deductions from the federation account. The AAI has seven (7) parts; the first six (6) were for the 16 MDAs headquarters while the remaining one was for the federal revenue generating agencies. A weighted average method and a secondary data source (federal audit reports) were used. The assessment scope was for four (4) years: 2014-2017

Evidence from the access to records indicator as used in the AAI reveals that the Federal Ministry of Science and Technology, followed by Federal Ministries of Aviation, Environment, Education and Water Resources all provided sufficient level of access to financial records and accounts within the period in focus. This is because they crossed the required threshold of 75% irrespective of their scores. The Federal Ministries of Labour and Employment, Youth and Sports, and Works and Housing provided moderate level of access to financial records and books while the others provided less than sufficient access as they fell below the 75% threshold. Under this sub-index, the Federal Ministry of Science and Technology scored the highest point (90%) while the Federal Ministry of Health scored the least point (40%).

Evidence from the Audit Assessment Index showed that selected MDAs performed decently as regards “extra budgetary and unauthorised expenditure” as they all obtained scores above the 75% threshold with the exception of Federal Ministry of Works and Housing which obtained the threshold score of 75%. The Federal Ministry of Mines and Steel obtained the highest score (100%) for this sub-index.

The “failure in revenue generation and remittances” focuses on issues relating to non-remittance and under-remittance of revenues and unspent funds respectively; failure to deduct or under-deduct the various types of taxes; failure to remit the deducted taxes to the treasury; and on issues of improper accounting practices and documentation of government revenues. Evidence from the AAI shows that the Federal Ministries of Agriculture, Education, Science and Technology all had good performances under this sub-index as they obtained the maximum score of 100%; every other assessed MDAs got at least 75% with the exception of the Federal Ministries of Health (70%), Mines and Steel (70%), and Works and Housing (65%) which had less than moderate performance.

On “public procurement and disposal infractions” sub-index, evidence shows that nearly all the selected MDAs headquarters crossed the threshold score of 75% with the Federal Ministry of Education leading at the top with a score of 100%; then followed by the Federal Ministries of Mines and Steel (96.88%), Transport (96.88%), Science and Technology (93.75%), Power (93.75%), Aviation (90.63%), Youth and Sports (90.63%) and Agriculture (87.50%) to complete the top five under this sub-index. Three MDAs (Trade and Investment, Health and Environment) obtained the score of 75%.

Evidence from the “unretired loans and advances” indicator as used in the AAI reveals that seven (7) out of the sixteen selected MDAs had good performance as they crossed the 75% threshold with the Federal Ministry of Mines and Steel (100%) leading the top performers under this sub-index. The Ministry is followed by the Federal Ministries of Environment, Science and Technology, and Youth and Sports (all of which obtained 91.67%). In third place were four MDAs with a score of 83.33% – Federal Ministry of Aviation, Education, Transport and Water Resources. Four Federal Ministries (Agriculture, Health, Finance and Labour and Employment) has moderate performance with a score of 75% while the rest performed poorly.

“Monetary value of documented infractions” sub-index stems from the idea that public resources unaccounted for, contracts paid for but end up being abandoned, contract awards that do not follow due process, unretired loans, imprest and advances, questionable payments and a host of other documented infractions in the federal audit reports have direct negative costs and impact on society – a society where people are living in abject poverty and lack. Thus, this sub-index carries a weight pf 25 out of 100 while the five (5) above each has a weight of 15 out of 100. Evidence from the AAI reveals that only six MDA headquarters (Federal Ministries of Environment, Finance, Transport, Science and Technology, Women Affairs and Labour and Employment) obtained a score of 100 under this sub-index; others scored zero. 

When it comes to “unauthorised deductions from the federation account”, evidence from the AAI shows that three out of the four revenue generating agencies (namely the NNPC, DPR and FIRS) have perennially been deducting money from generated revenues due to be paid into the Federation Account. This has been done as either “Other Deductions” or “Amount Paid to Excess Crude/PPT/Royalty Account”. Of the four, only the Nigeria Customs Service has not reported to have made such deductions. This had no weight attached to it as it is not included in the AAI computation but was added to assess the performance of the key revenue generating agencies. 

A cumulative of all the sub sections of the AAI saw the Federal Ministry of Science and Technology emerge 1st and presented with an award. Others recognised and awarded were awarded include 2nd Position: Federal Ministry of Environment; 3rd Position: Federal Ministry of Transport; 4th Position: Federal Ministry of Labour and Employment; and fifth position: Federal Ministry of Women Affairs.

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]]> https://csj-ng.org/csj-awards-five-government-ministries-for-high-performance-in-audit-assessment-index/feed/ 0 222777 Buhari leads Nigeria to second recession in five years https://csj-ng.org/buhari-leads-nigeria-to-second-recession-in-five-years/ https://csj-ng.org/buhari-leads-nigeria-to-second-recession-in-five-years/#respond Mon, 23 Nov 2020 14:58:35 +0000 https://csj-ng.org/?p=222552 Blog Buhari leads Nigeria to second recession in five years Share on facebook Share on twitter Share on whatsapp Share on telegram It is now public knowledge that Nigeria has unfortunately descended into recession for the second time within the tenure of the President, Major General Muhammadu Buhari (retd.)’s regime. Essentially, a recession is a...

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Buhari leads Nigeria to second recession in five years

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It is now public knowledge that Nigeria has unfortunately descended into recession for the second time within the tenure of the President, Major General Muhammadu Buhari (retd.)’s regime. Essentially, a recession is a decline and contraction in economic activities as reflected in the Gross Domestic Product over two consecutive quarters. While the economic and social circumstances that led to this recession were deeply rooted in the dislocations occasioned by the coronavirus pandemic, it is also common knowledge that economic growth before the pandemic was tepid and we have not fully recovered from the first recession. Thus, economic growth after the first recession had not accelerated to the progress previously reached before the dawn of 2015.

According to the National Bureau of Statistics: “Nigeria’s Gross Domestic Product recorded a growth rate of -3.62% (year-on-year) in real terms in the third quarter of 2020. Cumulatively, the economy has contracted by -2.48%. While this represents an improvement of 2.48% points over the -6.10% growth rate recorded in the preceding quarter (Q2 2020), it also indicates that two consecutive quarters of negative growth have been recorded in 2020. Furthermore, growth in Q3 2020 was slower by 5.90% points when compared to the third quarter of 2019 which recorded a real growth rate of 2.28% year on year. The performance of the economy in Q3 2020 reflected residual effects of the restrictions to movement and economic activity implemented across the country in early Q2 in response to the COVID-19 pandemic. As these restrictions were lifted, businesses re-opened and international travel and trading activities resumed, some economic activities have returned to positive growth. A total of 18 economic activities recorded positive growth in Q3 2020, compared to 13 activities in Q2 2020”.

The recession is coming at a time of more than “quadruple whammy” with increased national indebtedness, reduced revenue inflow, accelerated insecurity and a divided nation as demonstrated in the just-concluded #EndSARS protests. We are living witnesses to a national debt profile of $85.89bn and a further N11tn borrowed from the Central Bank of Nigeria in ways and means. The national budget is being supported by aggravated deficit financing and deployment of 85.5% of actual revenue accruing between January and August 2020 to debt service. Also, there are requests in the 2021 federal budget estimates for borrowing in the sum of N4.2tn in a deficit of over N5tn which is in excess of the three per cent of the GDP, being the prudential limit stated in the Fiscal Responsibility Act.

Unemployment and underemployment as of Quarter 2 2020 stood at 27.1% and 28.6% respectively while youth (15-34 years) unemployment and underemployment were 34.9% and 28.2% respectively. The just-ended #EndSARS protest was a protest against bad governance fuelled by corruption. The inflation rate (year on year) as of end October 2020 was 14.23% and it may not slow down soon considering the recent increase in fuel price and electricity tariff. Vast parts of the states in the North-West and North-East geopolitical zones which produce a good bulk of food and other agricultural produce have been taken over by terrorists and bandits. The implication is that agriculture which is one of the promising growth drivers is seriously constrained by insecurity.

These developments call for action, re-strategising and re-engineering of the Nigerian economy and polity to fundamentally respond to the challenges of the time. It is time for Buhari to rise to the occasion and ensure that the most competent Nigerians irrespective of their religious, ethnic or political party affiliations are brought on board to manage the economy. It will mean either replacing the current economic managers because it is apparent their best is not good enough or bringing in new hands to work with the current managers to rejig and support ongoing efforts. Furthermore, the most competent Nigerians irrespective of their religious, ethnic or political party affiliations should be brought on board to manage the security agencies fighting terrorism and the insurgency. The current service chiefs have failed in their assignments and a majority of Nigerians including the National Assembly have on several occasions pleaded with the President to let them go, but to no avail. Improved security will provide the conducive environment for agriculture across the geopolitical zones to contribute in an optimal way to economic recovery. The mantra of investments in several agriculture value chains should be taken to the level of implementation. Funding of specific value chains should come with milestones and indicators for reporting progress.

This is the time for the most prudent use of the little available resources through blocking leakages in the system. It is time to cut down on the cost of governance and the bureaucracy across board from the topmost layers of the executive, legislature and judiciary. We need to prune the inappropriate, unclear and wasteful expenditure proposals in the 2021 budget estimates which are in excess of N235bn. This is not the time for some positions that insult the intelligence of Nigerians like the statement credited to the Senate President, Ahmad Lawan, that Nigerians should stop complaining about their humungous self-awarded remuneration but await 2023 to vote them out if we feel that their performance is poor. We cannot wait for 2023 for legislators to continue taking an undue share of the national resources at a time of great economic crisis. It is either the National Assembly retraces its steps or Nigerians will be forced to take the necessary action against them through any legitimate means including the fundamental right to rebel against tyranny. This applies to all government offices and officials who believe they are entitled to live in luxury at the public expense amid crushing poverty and deprivation.

This is also the time to recover all resources stolen and mismanaged from the treasury as identified in various federal audit reports especially from the key revenue agencies in the Nigerian National Petroleum Corporation, Department of Petroleum Resources and the Federal Inland Revenue Service as well as other Ministries, Departments and Agencies of government.

Furthermore, the President should ease the tension in the land, curtail the abuse of human rights and fundamental freedoms by his appointees as a condition precedent for Nigerians to unleash their creative and productive potential and energy in unity, bound by a common goal to establish a prosperous, growing and developmental economy which will benefit Nigerians in Nigeria and in the Diaspora.

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]]> https://csj-ng.org/buhari-leads-nigeria-to-second-recession-in-five-years/feed/ 0 222552 CSJ Creates Template for Audit Assessment, Organizes Validation Meeting. https://csj-ng.org/csj-creates-template-for-audit-assessment-organizes-validation-meeting/ https://csj-ng.org/csj-creates-template-for-audit-assessment-organizes-validation-meeting/#respond Tue, 17 Nov 2020 10:36:52 +0000 https://csj-ng.org/?p=222193 News CSJ Creates Template for Audit Assessment, Organizes Validation Meeting. by Okemnachukwu Onwana 5 hours ago NEWS PUBLICATIONS CSJ Creates Template for Audit Assessment, Organizes Validation Meeting. by Center for Social Justice 4 hours ago Blog PUBLICATIONS Human rights in the aftermath of … Read More Human rights in the aftermath of #EndSARS by Center...

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CSJ Creates Template for Audit Assessment, Organizes Validation Meeting.

CSJ Creates Template for Audit Assessment, Organizes Validation Meeting.

On the 12th of November 2021, CSJ held a validation meeting of a Draft Audit Assessment Template at 3j’s hotel Utako. The meeting which started around 10:00am featured various Ministries and Agencies of Government alongside civil society organization. The meeting was part of CSJ’s campaign for improving the federal audit process which has been seen as a major tool for increasing accountability, transparency and value for money in Ministries, Departments and Agencies of Government (MDAs). Notably present was the representative of the Office of the Auditor General Mr. Charles Omofoma who acknowledged the long-term efforts of the Centre For Social Justice in improving the audit process in Nigeria. Others include the representatives of the Ministries of Agriculture, Education, NDDC, Science and Technology, Youth and Sports, Transportation, Labour and Employment, Trade and Investments and Power.

The meeting featured a paper presentation from the Lead Director of the Centre, Barrister Eze Onyekpere. His paper focused on refreshing the minds of the participants on the Financial Regulations binding on MDAs and major audit infractions over the period 2014-2017. This Financial Regulations is a guide for all civil servants to follow when dealing with government finances. Strict adherence to the Regulations will facilitate transparency and accountability.

Programme Officer, PFM at CSJ Mr. Fidelis Onyejegbu presented the draft Audit Assessment Template which featured 17 questions. These questions cover issues of access to information, response to audit queries and follow up at the Public Accounts Committee (PAC). They are targeted at finding out how accountable various MDAs have been. The session was an open one as various participant contributed their ideas to the template. Deputy Director of the Ministry of Agriculture and Rural Development, Mr. Waziri Samuel noted that the assessment will go a long way in improving the audit process.

Participants at the workshop were divided into groups to make contributions to the template. At the end of the group work, presentations were made and passed to CSJ for further assessment and documentation. The Audit Assessment Draft Template can be found on the website of the Center for Social Justice and is open for contributions from the general public through the comment section on this page.

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