ADVANCES

ADVANCES

Part A-General

Authority for advances

1701 - All Personal advances are debitable to accounts created,and maintained by the Accountant-General,under Section 9 of the Funds and Accounts Law,1959,and described in the Second Schedule thereto.Such Accounts may not exceed at any time the maximal specified in the schedule and in order to ensure that there is no contravention of this legal restriction, it is essential that all personal advances of any kind be subject to the approval of the Accountant-General. Such approval will invariably be given, provided that the proposal for the advance is in accordance with the policy laid down in Financial Regulations,Establishment Circulars and other directives,and that the issue of the advance will not cause the legal maximum of the Account to be exceeded.

Recommendation of advances delegation

1702-Advances may be recommended by a Head of Department Recomment only and the power to recommend may not be delegated to an officer ation of below GL.08. All recommendations must be forwarded to the advances Accountant-General through the Ministry Paying Officer. delegation.

Installment recovery

1703- Unless otherwise specifically stated in this chapter, all advances,together with interest upon them, are recoverable in equal Installmen and conscentive monthly installments by deduction from salary;the recovery.deductions will commence in the month following that in which the advance was received.

Limit on total advances

1704-Officers recommending advances must ensure that acceptance of their recommendation would not bring the total monthly deductions from salary in repayment advances, including deductions in respect of loans received from the Nigeria Building Society,the Government Staff Housing Scheme,Correspondence Course Advance or any other Government Sponsored housing loan Scheme, to an amount exceeding One-third of the Monthly salary of the officer requesting the advanceprovided that short term advances the repayment of which does not exceed six months are not taken into account and provided also that in the case of granting Government Housing Scheme or Nigeria Building Society Loans, the restriction as to the limit of one-third of salaries may be waived if, in the opinion of the Board,or the Permanent Secretary,Ministry of Finance (regard being taken of the individuals' assets)

i) the applicant can reasonably afford it; and

ii) in normal course of events,he can refund everything before retirement

Misapplication of advances.

1705-Advances may be used only for the purpose for which they were issued. As soon as a contravention of this F.R is discovered, the whole of the outstanding balance of the advance becomes recoverable in full and at once. Any officer to whom such or contravention becomes known in the course of his official duty will report the details at once to the Accountant-General,who may in his discretion,enforce recovery in one lump sum or in increased installment repayments; he will report the contravention to the officer's Head of Department who must institute disciplinary proceedings.

PART B - Types of Advances

A-SALARY ADVANCES

1706 - As officer proceeding on transfer who has to bear wholly or partly the cost of his own or his family's transport may on application be granted an advance not exceeding one month's salary.

Salary Advances: Officer on First Appointment

1707 - An officer on first appointment may on application to the of the Accountant-General in the case of Non-Self Accounting Ministries/Extra-Ministerial Departments, or in the case of Self-Accounting Ministries/Extra-Ministerial Departments of the respective Accounting Officers, an advance not exceeding one month's salary. An officer on temporary appointment may also be given Salary Advance not exceeding one month's salary on production of acceptable guarantee.

Advance to Officer: Rent of Accommodation for.

1708- a) An officer proceeding on transfer to a new station, or an officer on first appointment who is not living in Government residential quarters, may receive an advance of not more than two month's salary on production of proof that he has to pay rent in the expiration of twelve months from the effective date of the transfer or the first appointment.

b) Not withstanding the provision in (a) above, the Accounting Officer may consider any other application for rent advance on merit.

c)The provision of this Regulation shall be without prejudice to the Public Service Rules.

Second Advance permitted except after clearance of first advance

1709 - Except in the case of an officer subsequently qualifying for a second advance been granted an under Financial Regulation 1708, any further advance of salary may not be drawn until any previous advance of salary has been fully paid.

1710 - a) An advance not exceeding one month's salary must be repaid in not more than three equal and consecutive monthly installments, commencing with the salary of the month following that in which the advance was drawn.Advances of up to two and three month's salary must be repaid in not more than six and nine such installments respectively.

b) Notwithstanding any advance granted under the above provisions,no advance may be granted which will result in a total deduction of more than two-thirds of an officer's monthly salary.

1711 - Advances of salary and recoveries thereof must be classified to an advance account in the officer's name, and not in any Advanee circumstances. to a personal emoluments vote.

1712-Notwithstanding the provision of F.R.1709 and in order to minimize the sufferings of retiring officer, an advance payment of three months salary shall be paid to every retiring officer by his Ministry/Extra-Ministerial Departments which shall be deducted on bloc from his final entitlement by the officer's Ministry/Extra-Ministerial Department. Accounting Officers must ensure that the advance taken by these retiring officers is reflected in their Pension Forms.

B-MOTOR VEHICLE ADVANCE

Consideration & approval of advance

1724-Advances for the purchase of Motor Vehicle shall be approved and issued by Accounting Officers of Ministries/Extra-Ministerial Departments for Officers on Salary G.L 08 and above with 4% rate of interest.

Officers Financial Circumstances

1725- An officer may not be considered for an advance when the cost of maintaining a car and repaying the installments are liable to cause him financial embarrassment. Full account shall be taken of an applicant's emoluments and deductions there from including any outstanding loans.

officers eligible for advance

1726-The following officers are eligible for advance to purchase motor vehicles:

a) All Heads of Departments and confirmed officers on salary grade level 08 and above

b) Officers on salary grade level 06 and 07 shall be granted advance for the purcnase of motor cycles while those on salary grade level 01-05 shall be granted advance for bicycles.

No new Advance until after 5 years of previous advance,

1727 - a) No officers shall be eligible for an advance until after five years of previous advance, except where the vehicle so purchased has become a write off from insurance point of view, in all cases or when the previous advance has been fully repaid. In the event of a motor vehicle on which an advance has been fully repaid, becoming a write off, the insurance benefit payable on it must be paid directly to the Abia State Government.

b) Transport Allowance shall be paid to all categories of officers as may be approved from time to time by the Head of Civil Service of Abia State.

Maximum Advance

1728-The maximum advance which may be granted to officers for Maximum the purchase of motor vehicles will be as follows: Advance

a) G.L. 16 and above -- N450,000.00

b) G.L.14-15 -- N350,000.00

c) G.L.10-13 -- -- N250,000.00

d) G.L.08-09 -- N150,000.00

e) Officers seeking for Motor

Cycle Advance G.L.06-07 N075,000.00

Motor Vehicle refurbishing loan

1729-a) Officers may be granted Motor Vehicle refurbishing loan as Motor follows:

G.L. 16 and above N100,000.00

G.L.14-15 N60,000.00

G.L.10-13 N50,000.00

G.L.08-09 N35,000.00

G.L.06-07 -- -- -- N25,000.00

b) The Provisions of Regulations 1728 and 1729 (a) shall be without prejudice to the Public Service Rules and Establishments Circulars on the subject matter.

Application Procedure.

1730 - Officers seeking motor vehicle advance will complete application:

a) Form T.F.99 (R.1974) in duplicate and submit to the Accounting Officer of their Ministry/Extra-Ministerial Department for consideration.

b) When an advance has been approved,the Pay Section of the Ministry/Extra-Ministerial Department will promptly be advised on T.F. 99B of the amount deductible monthly from the officer's emoluments and the maximum period of repayment.

c) An officer to whom an advance is granted for the purchase of a motor vehicle will be required to cmplete Agreement Form T.F.99A.

The Agreement Form will be completed over N5 stamp and officers executing the Agreement on behalf of the Abia State Government shall not be lower in rank than those in salary grade level 15.

d) An officer whose application is approved will be required to provide an acceptable surety as a cover against the risk of guaranteeing him for the loan. The form of guarantee will vary with the service status of the individual officers.

e) An unconfirmed officer should provide an acceptable surety who should be a serving officer who is qualified for gratuity.The rank of such an officer should be 2 grade levels above that of the applicant.

f) Confirmed officers wo have not served long enough to qualify for a gratuity shall provide surety as in (e) above.

g) Confirmed officers whose length of service qualifies them for a gratuity shall not require further surety.

h) No officer shall be allowed under this regulation to stand as surety for more than one loan in addition to himself at any given time.

i) If for some reasons a guarantee is unenforceable, lapses or is withdrawn,then the officer guaranteed shall be called upon to provide a fresh guarantor for the balance of the loan failing which his salary shall be fully utilized to liquidate the balance of his indebtedness.

Payment of advance

1731-On receipt of completed application and agreement forms duly approved by the authorizing officer,the advances section will prepare a voucher in the name of the officer. The advances section will prepare and forward deduction advice to the salary section for deduction to commence in the month following that which payment of the advance was made to the officer.

1732-a) An officer to whom an advance is given to purchase a motor Insuranc vehicle will be required to insure the vehicle comprehensively with an for Motor Insurance Company on the approved Government List during the Vebicle.period of repayment of the advance.

b) The amount for which is insured must not be less than the aggregate amount of the principal or the balance of the principal and the interest thereon for the ensuing twelve months. The interest of the State Government to the extent of the principal and interest or outstanding balance of principal and interest shall be endorsed accordingly on the policy.

annually that such comprehensive insurance has been taken out.For this purpose, Ministries/Extra-Ministerial Departments are required to maintain a Motor Vehicle Advance Insurance Register. The Register must be posted up-to-date always and it

c)An officer who fails to take out a comprehensive insurance on shall be reported for disciplinary action.

Repayment of Advance.

1733-The advance together with interest, which shall be at 4 per cent cover both principal and interest and deducted from the officer's the advance was granted. Repayment will not exceed a maximum period of 5 years.

Calculation of interest

1734-The interest payable on an advance granted to an officer, shall Calculation be calculated as in the Treasury Manual of interest.

Reduced interest Calculation of.

1735-An officer to whom an advance has been granted may at any time during the tenure of the original agreement,elect to refund the advance in full,in such a case, the outstanding interest payable on the advance will be recalculated in accordance with the interest table in the Treasury Manual. The total amount payable by the officer will then be the outstanding principal of the advance plus the reduced interest.

1736-Until the advance is repaid in full an officer shall not take out of the country, sell or part with the possession of the vehicle purchased with the advance without the prior consentin writing of the Accounting Officer who may impose such conditions as he deems fit.

Recovery of Outstanding Advances on transfer to Local & States Government.

1737-When an officer with an outstanding advance transfers to Civil Service of Federal, State or another local Government, the Federal State or Local Government will be required to take over the liability ver to the Abia State in one lump sum. Ministries/Extra-Ministerial Departments should notify the Accounting Officer of the Ministry/Extra-Ministerial Department from which the officer Cheques drawn for settlement of such outstanding balance should be nade out to the Abia State of Nigeria by the Federal,State or Local Govemment or the Foderal, State,Local Government will be required to take over and sent direct to the Accounting Officer of the Ministry of which the officer transferred.

Recovery outstanding advances on transfer to statutory corporation

1738-When an officer with an outstanding advance transfers to a Statutory Corporation or Quasi-Government Establishment, the Statutory Corporation or Quasi-Government Establishment will be required to take over the liability and Ministries/Extra-Ministerial Statuton transfer Depsrtments are expected to secure payment of the outstanding Corpor belance of principal and accrued interest. When all attempts to recover such outstanding loan fail, immediate action shall be taken to repossess the vehicle and sell it, if necessary.

Recovery of advances on termination or resignation of appointment

1739-If an officer resigns his appointment or leaves the service by Advane Recovery termination of appointment or dismissal without liquidating his Termin advance,the Accounting Officer or any officer duly authorized by or him may seize and sell the motor vehicle purchased and moneys Resignat realized from the sale shall be applied towards payment of the of outstanding balance of the loan together with the interest thereon.

1740- The outstanding balance of an advance is recoverable in full Advance Recoven from the last salary and or gratuity of an officer who leaves the Retireme service on retirement.Where these retiring benefits are insufficient to cover the outstanding balance of the advance, action shall be taken to repossess the vehicle and to sell it,if necessary.

1741-The outstanding balance of an advance is recoverable in full from estu Recoven from the estate of a deceased officer. of decea officer.

Loss or surplus on sale of repossesed vehicles

1742 - a) Where the proceeds of the sale resulting in circumstances outlined in F.R. 1740 to 1742 are less than the outstanding balance of an advance together with interest thereon, the shortfalls shall be recovered from the officer or his estate. b) Where the proceeds of the sale as stipulated in (a) above are more than the outstanding balance of an advance togetherwith interest thereon,the difference will be paid to the office or his estate after deduction of administrative expenses incurred.

vote of charge

1743-Motor Vehicle advances will be debited to the appropriate Vote e recurrent expenditure vote provided under the Head of Estimates for Charge each Ministry/Extra-Ministerial Department.

classification of refund

1744-Monthly refunds (i.e Principal and Interest) of motor vehicle Classifica-advances will be credited to appropriate Revenue Head captioned tion of the current year's Estimates."Interest and Repayments" Sub-Head"Motor Vehicle Advance" of the current year's estimates

Advances Ledger Cards.

1745 - vehicle advances are to be debited and credited respectively, direct to must be maintained in respect of individual advances issued. The ledger cards must be posted and balanced each month. A control account showing total payments and total refunds for each month must also be maintained. The control Account balances will be reconciled monthly with the individual ledger balances.

Proper account & records to be kept

1746-Proper accounts and records shall be kept in respect of all advances issued and repayments thereof.

C - BICYCLE ADVANCES

Advances: Bicycle Approval of

1770-Accounting Officers are authorized to approve, provided funds are available, advances for the purchase of bicycles,subject to the following conditions:

a) That they are satisfied that a bicycle will facilitate the performance of the duties of the official or employee concerned.

b) That the advance does not exceed the actual purchase price of the bicycle to be acquired, subject to an over-riding maximum of N20,000.00.

c) That the official or employee concerned has not received a bicycle advance within a period of two years, provided that a fresh advance may be granted if the bicycle bought with the previous advance has been stolen or damaged beyond repairs and if the old advance has been fully repaid.

d) The rate of interest chargeable shall be determined.

e)form T.F.50B and the interest shall be deductible en bloc in the first installment.

Approval for advance to be attached to payment voucher

1771-Payment Vouchers for Bicycle Advance should have securely attached to the required by Financial Regulation 1770 (see Appendix No.9).

Advance to unconfirmed officer

1772-Advances may be granted to officers with less than two years' service only if another officer of the same Ministry/Extra-Ministerial officer.Department of not less than the rank of an Assistant Executive Officer on grade level 06 stands surety. A specimen form of surety or Treasury Form 50A is included at Appendix No.10.

Particulars of bicycle to be recorded

1773-Full details of the bicycle,including make,and manufacturer's Number together with the Licence Number,must be recorded by the Accounting Officer concerned in a register kept for the purpose (see Financial Regulation 1775).

Accounting Officers responsible for ensuring recovery of advance

1774- Accounting Officers are responsible for ensuring that Accounting deductions of installments of loan are made from the officer's salary Officers at monthly intervals,until the whole of the advance has been responsible for ensuri recovered. recovery of advance.

Register of Bicycle Advances to be kept

1775-A register of bicycle Advances must be maintained centrally in conjunction with the pay roll of the officers concerned,to show:

a) Name of borrower

b) Details of bicycle purchased (see Financial Regulation 1772).

c) Date and amount of advance with Treasury/Self-Accounting Department's payment voucher number.

d) Date supplier's receipt exhibited and amount of the receipt.

e) Amount of monthly repayment.

f) Name of surety, if any.

g) The cumulative total amount of advances made during the financial year by the Accounting Officer.The Register is to be scrutinized at regular intervals and checked against the schedules of payments of the advances and the vote book record.

Repayments period of

1776- Repayment may be spread over a period not exceeding 36months and will commence in the month following that in which the advance was made.

D-DUTY TOUR ALLOWANCES

1780-The following duty tour allowances will be paid to any officer on official tour within Nigeria:

a) Honourable Commissioner N20,000.00 per diem

b) Permanent Secretary N15,000.00 per diem

c) Officers on G.L. 16 and 17 -- N10,000.00 per diem

d) Officers on G.L. 14 and 15 -- N7,000.00 per diem

e) Officers on G.L. 10-13 -- N5,000.00 per diem

f) Officers on G.L.07-09 -- N2,500.00 per diem

g) Officers on G.L.01-06 -- N1,000.00 per diem

The above rates cover only lodging and feeding expenses. The transport/air tickets and cost of local running should be determined departmentally depending on the nature of the tour and the prevailing transport charges. The payment of the above allowances should be made only in respect of official tours duly approved by appropriate authority in each case.

Advances touring Overseas: authority for:

1781 - The Accounting Officer of a Ministry/Extra-Ministerial touring Department is permitted to authorize and grant an Estacode allowance to an officer travelling singly, or in respect of a delegation touring overseas at the prevailing rates at the time of tour.

Traveler's Cheques.

1782-Cash Advances authorized under Financial Regulation 1781Cheques, made payable to the officer traveling singly, or to a Cheques will be obtained from the Central Bank of Nigeria, against a cheque drawn on the Government Account.The cost of the Bank Commission will be chargeable against State funds. Additional Advances may be drawn from an Overseas Nigeria Office,in special circumstances.

Accounting for Traveling Expenses

1783-a) At the end of any duty tour, officers shall submit all the receipts and air tickets in order to account for the amount received as travelling expenses,for the duty tour. This will serve as a proof that the journeys were undertaken for the number of days approved.

b) The Estacode/Duty Tour Allowances for the unspent number of days shall be returned to chest in the currency in which the Officers not money was received. to over stay duty tour

1784-Officers on duty tour, locally or overseas shall not over stay without the number of days approved without obtaining permission to do so. authority.

E-ADVANCES MISCELLANEOUS Advances for correspondence course and evening classes.

1790 - Advances for correspondence courses and evening classes may be authorized by an Accounting Officer subject to the following conditions:

a) that the ability and efficiency of the officer warrants his taking the course;

b) that the subjects are related to his work;

c)that the study is likely to increase his efficiency

d) that the course is with a reputable college or Establishment;

e) that the officer produces receipts to show that the whole advance has been fully used for the purpose intended;

f) that the officer understands that successful completion of the course wil not of itself constitute grounds for advancement;

g) that the officer will enter into, an agreement (Treasury Form 51) for repayment, if the officer has less than two year's service, he will produce an acceptable surety who will enter into a bond for the amount advanced:

h) the advance shall be granted interest free;

i) that the advance does not include an element for postage,stationery;examination or other fees,etc;

j) the amount so granted under these rules shall be recovered in not more than 24 consecutive installments.

Advance Spectacle

1791 - Interest free advances, not exceeding N15,000.00 may be granted to officers by Permanent Secretaries/Heads of Extra-Ministerial Departments for the purchase of spectacles,provided they have been prescribed by a Medical Officer and an Optician's receipt is subsequently produced as evidence of payment.The advance will be refunded in not more than 24 consecutive monthly installments.

F-GENERAL

1792 - The outstanding balance of any advance shall be recovered in balance full fom the last payment of salary and/or retirement gratuity of an from salan recoverabi officer who leaves the service on retirement, resignation, termination of officer.of appointment or dismissal.

1793 - The outstanding balance of an advance of salary is not Officers:recoverable in full from the estate of a deceased officer which advance balance ol receives no gratuity from government funds. Government accepts recoverah liability for the irrecoverable balance in these circumstances. in full.

1794-In the event of an officer being transferred to another Ministry Transfer.Officers or paying station before an advance is recovered, the amount of the Details of advance and recoveries up to the date of transfer must be stated on the outstand copy of the officer's Last Pay Certificate and Personal Emoluments advances Record forwarded to the new paying station (see Financial Regulation be advisd 1916).The sub-Accounting Officer of the station at which the officer will in future draw his pay will note the outstanding balance of the advance in his Advances Ledger or Personal Emoluments Record,as the case may be and effect recoveries accordingly.

Officer responsible for making payment

1795- The lack installments of an advance does not absolve an officer from repaying responsible for making payment.installments missed for this reason will be recoverable in full on receipt of these documents.

Accounting officer responsible for recovery

1796 - it is the responsibility of the Accounting officer to ensure that the whole amount of any advance is fully recovered at the due dates.