N510bn facility: FG appoints auditing firms for independent review of state finances

The Federal Government has commenced independent review of financial management of states as it has appointed eight auditing firms for the assignment.

According Salisu Na’Inna Dambatta, Director (Information), Federal Ministry of Finance in a press statement the frims employed include: KPMG; Ernst & Young; PKF; Muhtari Dangana & Co/S.S; Afemikhe & Co and Ahmed Zakari & Co/Ijewere & Co.

The reputable accounting firms are to monitor and evaluate the implementation of the 22-point Fiscal Sustainability Plan (FSP) which specified the conditions under which 35 state governments that started accessing the N510 billion Budget Support Facility (BSF) since June 2016.

The Federal Ministry of Finance was said to have embarked on its own monitoring since the facility was being accessed in June 2016, however, the independent monitoring and verification of the states against agreed milestones under the FSP will now commence by the eight accounting firms.

The Budget Support Facility, a 12-month standby loan facility, was designed to bring immediate financial relief to state governments and enable them meet their financial obligations.

The facility has a monthly amount of N50 billion in the first three months and N40 billion available for the remaining nine months to the 35 states in the scheme.

The Fiscal Sustainability Plan is a 22-point reform programme which commenced in June, 2016, with requirements which include increasing internally generated revenues, introduction of biometric payroll, publication of audited annual financial statements, and reduction of wastages by establishing efficiency units.

Announcing their appointment, Minister of Finance, Mrs. Kemi Adeosun, stressed that the firms were “expected to vigorously monitor, evaluate and verify the performance of the states against the agreed milestones set by each state government under the Fiscal Sustainability Plan.”

She said state governments that fail to implement the action plans as stated would be taken off the facility with immediate effect.

The minister introduced the FSP for Sub-National Governments in 2016 to which state governments acceded, with the view to enhancing fiscal prudence and transparency in public expenditure.

The Plan is said to be part of the nationwide Public Financial Management Reform which is being implemented by the administration of President Muhammadu Buhari through the Federal Ministry of Finance.