Home Edo Release of Tertiary Institution Fund: Edo not in default – C’ttee

Release of Tertiary Institution Fund: Edo not in default – C’ttee

BENIN CITY – The audit committee on the financial management in tertiary institutions in Edo state says the state government is not in default in the release of funds to state owned  tertiary institutions in the state for salary payment.
This formed part of the findings by the Financial Management Audit Committee on tertiary institutions submitted yesterday at Government House to Comrade Adams Oshiomhole.
Presenting the executive report, the Chairman of the Audit Committee on College of Agriculture, Iguoriakhi and College of Education, Igueben, Mr. Wilson Okoro said “on the 9th of December, 2014, the state government set up financial management audit committee to look into the financial affairs of four colleges.
The Colleges are “College of Agriculture, Iguoriakhi, College of Education, Igueben, College of Education, Ekiadolor and Institute of Management Technology, Usen.
Mr Okoro said some terms of reference include: to ascertain and verify the total revenue to the institutions from January 2010 to December 2014 being five years, the total money generated as monthly and annual Internally Generated Revenue (IGR), the amount spent monthly and annually on overhead among others.
He noted “a total subvention of one billion, one hundred and sixty-one million, eighty-three thousand, one hundred and eighty-three (N1,161,083,183) were received by the institution from January 2010 to December 2014.
Total IGR according to the committee to the institution between January 2010 to December 2014 was sixty-four million, one hundred and one thousand, five hundred and eighty-nine naira while a total overhead and other payment stood at  two hundred and eighty-two million, one hundred and sixty-one thousand, one hundred and seventy naira.
The committee frowned at N30 million accreditation funds which was not accounted for, it called on the state government to put in place appropriate accounting system to ensure prudency in the financial management of the school.
On College of Education, Igueben, Mr  Okoro  said the gross subvention from the state government was six hundred and thirty-eight million, eighty-nine thousand one hundred and forty-six (N638,089,146) while internally generated  revenue was N345,212,345.
He said verified personnel cost stood at N804,025,337, overhead cost N168,974,979. The total number of staff as at 31st December 2010 was 150 for college of education Igueben.
The committee said “in college of Education, Igueben management  carried out staff recruitment without reference to the state government for approval.
The committee recommended that the state Government should be more involved in the utilization of the Tef fund because of the amount involved and that effort should be made to attract more Tetfund for development of infrastructure in the school.
On his part, the Chairman, Financial Management Audit Committee for IMT and College of Education, Ekiadolor, Mr. Henry Idogun presented a systematic financial statement of the institute from January, 2010 to December, 2014.
He said “on examination of the book-keeping of the Institute of Management Technology, Usen, in terms of proper accounting management, we found out that the book-keeping of the institution was very poor and recommended as follows; that Government should assist the institution with 100 million naira grant to help liquidate its debts”.
He added “government should consider a radical reengineering of the existing revenue collecting mechanism in a manner to bring about efficiency and urged government to place a bar on the limit of subvention to the institute.
Mr Idogun warned that government should henceforth stop the policy of deducting taxes at source as the practice could undermine government revenue, maintaining that government should employ the services of qualified and professional accountants to help build the accounting system of the institution.
In the case of Ekiadolor, the Chairman said “there are regulatory deficit for the period of January 2010 – December 2014 in the sum of N2,356,162.96.
He said “the institution would have been able to meet up the personnel cost from subvention and IGR,saying they were however thrown into deficit by uncontrolled overhead expenditure.
The committee found out that the institution’s IGR is hard hit by the payment of pensions.
According to the committee’s report, just like the Institute of Management Technology, the College of Education operates very poor accounting system as the findings and monetization arrears of N200,508,877,039 were paid without being reflected in the payroll”.
The committee therefore called on the government not only to increase the subvention to College of Education, Ekiadolor by N10 million but also re-address the revenue collecting mechanism to boost state government internally generated revenue and close all leakages.
In his remark, Governor Oshiomhole thanked the chairmen and members of the committees, assuring that the state government would study the findings and recommendation and take steps to enhance financial management in tertiary institutions in the state.
He said: “let me thank you Mr Wilson Okoro and Henry Idogun and all members of the committees on behalf of myself and indeed the government of Edo state for accepting to serve the two committees along with your members”.
He said “more importantly, listening to your presentation, what appears to be a very thorough job, trying to flip through the document whether this was properly kept or poorly kept, it was your lot to make some sense out of whatever was made available for you to see”.
Oshimhole added, “As I go through your abridged summary of your presentation, I get the feeling that you have developed some great insight into the financial transactions in the institutions that were covered by the two committees.
“I want to thank you very much particularly Mr Okoro who is self employed person, running a private audit firm for devoting your time and to help public authority to find out what is going on in our state owned institutions., Oshiomhole said “it takes a level of commitment and passion to serve your people, top devote such quality time to public service, I am very grateful to you.”
He said “even your choice of language and the way you hold your face suggests a very professional person. I believe Edo state government can and will continue to benefit from your experience and I hope your doors are not made of steel that we can knock on at any time to ask you to please assist us because I believed you can add value to our efforts’, he stressed. – See more at: http://www.nigerianobservernews.com/2015/05/29/release-of-tertiary-institution-fund-edo-not-in-default-cttee/#sthash.BMCcvE0R.dpuf
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