Senate queries FRC over extra-budgetary expenditure of N258m

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Senate has queried the Financial Reporting Council over extra-budgetary expenditure of N258 million on personnel cost in the agency’s 2017 approved budget.

The Senate Committee chaired by Senator Mathew Urhoghide hinged the query on 2018 audited report which is being considered by the National Assembly.

The query read: “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.”

But the Executive Secretary of FRC, Daniel Asapokhai in his response 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 for the fiscal year in question.

“The Council customarily prepares its budget at the beginning of every year, detailing both Internally Generated Revenue and government subvention. This is usually sent for approval before implementation.

“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 however asked the Executive Secretary of FRC to present the approval for N258 million extra-budgetary expenditure by the National Assembly.

But the Executive Secretary promised to send the document backing the expenditure to the committee Secretariat.