The Financial Reporting Council (FRC) has been queried over Extra-budgetary expenditure of N258 million on Personnel cost in the agency’s budget in 2017 approved budget
The Senate Committee chaired by Senator Mathew Urhoghide queried the agency based on 2018Audited Report which is being scrutinized by the National Assembly.
The panel said it queried the council based on observation from its audit that indicated 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 personel 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.
“The Council has an approved salary structure which it pays from the IGR. The amount refrenced by the Auditors as over expenditures not approved was staff salary funded via IGR which was 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 Committee Secretariat.