Ministries, Departments and Agencies (MDAs) have been unable to account for N4.97 trillion balances in their 2019 accounting records, the Auditor General of the Federation (AuGF), Adolphus Aghughu, said on Wednesday.
He made this known when he submitted the 2019 Audit Report to the National Assembly in Abuja.
He said, “From the audit carried out on the 2019 Federal Government Consolidated Financial Statement, unsubstantiated balances amounting to N4.973 trillion were observed.
“The N4.973 trillion unsubstantiated balances are above the materiality level of N89.34 billion set for the audit.”
“In auditing, materiality means not just a quantified amount but the effect that amount will have in various contexts.”
“During the auditing planning process, the auditor decides what the level of materiality will be, taking into account the entirety of the financial statements to be audited.”
Aghughu said following the discovery, all agencies involved in the infractions were issued queries.
Aghughu explained that his office was beset by a plethora of challenges that militated against effective detection of financial improprieties and misappropriation of funds by government agencies.
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He said, One of such problems is the absence of Federal Audit Service Law, which is a big challenge as far as effective and efficient public sector auditing are concerned. This is a law that is needed as basis of fiscal sustainability.
“Another problem incapacitating optimal functionality of our mandate, as far as thorough and appropriate auditing of financial statements of the MDAs are concerned, is gross underfunding which is telling much on our efficiency.
“Accommodation is also part of the problem as our staff in Lagos are about to be evicted from their office due to litigations. These are aside problem of insecurity seriously affecting our scope of coverage.”
The Clerk to the National Assembly, Amos Ojo, who was represented by the Deputy Clerk, Bala Yabani, received the report.
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