Wednesday, 15 June 2016

FG RELEASES CRITERIA TO BE MET BY STATES IN ORDER TO RECEIVE ADDITIONAL BAIL OUT FUNDS



These are the conditions to be met by State government in order to get additional bail out funds from the Federal government

  • Publish audited annual financial statements within nine months of financial year end.
  • Comply with the International Public Sector Accounting Standards (IPSAS).
  • Publish state budget online annually.
  • Publish budget implementation performance report online quarterly.
  • Develop standard IPSAS compliant software to be offered to states for use by state and local governments.
  • Set realistic and achievable targets to improve independently generated revenue (from all revenue generating activities of the State in addition to tax collections) and ratio of capital to recurrent expenditure.
  • Implement targets
  • Implement a centralised Treasury Single Account (TSA) in each State.
  • Have quarterly financial reconciliation meetings with Federal Government to cover VAT, PAYE remittances, refunds on government projects, Paris Club and other accounts.
  • Share the database of companies within each State with the Federal Inland Revenue service (FIRS). The objective is to improve VAT and PAYE collection.
  • Introduce a system to allow for the immediate issue of VAT / WHT certificates on payment of invoices. Review all revenue related laws and update obsolete rates / tariffs.
  • Set limits on personnel expenditure as a share of total budgeted expenditure.
  • Biometric capture of all States’ Civil Servants will be carried out to eliminate payroll fraud.
  • Establish Efficiency Unit.
  • Federal Government online price guide to be made available for use by States.
  • Introduce a system of Continuous Audit (internal audit).
  • Create a fixed asset and liability register.
  • Consider privatisation or concession of suitable State-owned enterprises to improve efficiency and management.
  • Establish a Capital Development Fund to ring- fence capital receipts and adopt accounting policies to ensure that capital receipts are strictly applied to capital projects.
  • Domesticate Fiscal Responsibility Act (FRA).
  • Attainment and maintenance of a credit rating by each State of the Federation.
  • Federal Government to encourage States to access funds from the capital markets for bankable projects through issuance of fast- track Municipal bond guidelines to support smaller issuances and shorter tenures.
  • Comply with the FRA and reporting obligations, including: No commercial bank loans to be undertaken by States; Routine submission of updated debt profile report to the DMO.

Share This

0 comments: