Auditor-general: N4.9trn unsubstantiated balances uncovered in 2019 audit report

Adolphus Aghughu, auditor-general for the federation, says his office uncovered unsubstantiated balances amounting to N4.973 trillion in the audit carried out on 2019 consolidated financial statement of the federal government of Nigeria.

Aghughu spoke on Wednesday in Abuja while submitting the 2019 audit report to Ojo Olatunde, clerk of the national assembly.

He lamented that his office was incapacitated in so many ways from functioning effectively and efficiently in the detection of mismanagement of public funds by ministries, departments and agencies (MDAs).

Aghughu said the agency’s workers in Lagos were about to be evicted from their office building.

“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,” Aghughu said.

“In auditing terms, materiality means not just a quantified amount but also the effect that amount will have in various contexts. During the auditing planning process, the auditor decides the level of materiality to be taken into account and the entirety of financial statements to be audited.

“Consequently, as submitted by the auditor general, required queries were issued against agencies found to be involved in the infractions.”

The AuGF assured the clerk who was represented by Bala Yabani, his deputy, that the audit of the FG’s consolidated financial statement on yearly basis would be expeditiously carried out once made available by the office of the accountant-general of the federation.

However, he decried factors crippling the effectiveness of his office, invariably giving room to financial infractions in MDAs.

“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,” Aghughu explained.

“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.”

In his remarks, Yabani said the report would be submitted to the clerk for onward submission to Senate President Ahmad Lawan and Femi Gbajabiamila, speaker of the house of representatives, for legislative consideration.