The Nigerian Senate has rejected extra-budgetary spending of N258 million in Personnel by the Financial Reporting Council (FRC) in the 2017 approved budget.
The Senate Public Accounts Committee chaired by Senator Matthew Uhroghide made this known at the consideration of the Annual Report of the Auditor-General on the accounts of the Federation of Nigeria for the year ended, 31st December, 2018.
It reads; “We observed from our 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.”
The Executive Secretary of FRC, Daniel Asapokhai however said,” for the year 2017, the sum of N81 million was appropriated as government subvention for personnel cost for the council. The amount in question was to augment the Council’s personnel cost from for the fiscal year in question.
“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.”
Asapokhai said; ”the council has an approved salary structured which it pays from the IGR. The amount referenced by the auditors as over expenditures not approved was staff salary funded via IGR which is contained in the approved budget.”
The Committee asked the Executive Secretary of the FRC to present the approval for N258 million extra-budgetary expenditure by the National Assembly.
The Executive Secretary however, vowed to send the document backing the expenditure to Committee Secretariat.