Authorization of Expenditure

Sources of Final Expenditure

401-All final expenditure of Government moneys as directed from advances which are recoverable see Fi 0404 15) must be made from a fund created by the constitution of the Federal Republic of Nigeria or by an Abia State law.

(a) The consolidated revenue Fund is established by section 112 of the constitution of Federal Republic of Nigeria; it is the fund containing the general revenue of the Government into which all revenue and other receipts are paid.

(b) The capital Development Fund is established by section 4 of the Funds and Accounts Law, cap 57 of the Laws of Eastern Nigeria 1963, and is the source of all expenditure incurred upon the capital Budget; this comprises expenditure in connection with a Development plan or with the renewal of capital assets for which a Renewals Accounts has been created.

(c) The constitution permits the establishment of other funds for special purposes by Abia State legislation; where such funds are established expenditure from them all are to be governed by the instructions in this chapter concerning expenditure from the capital Development Fund except where the establishing legislation otherwise directs.

Constitution and Legislative requirements

(d) Under section 112 of the constitution of the Federal Republic of Nigeria 1999 Section 5 of the Finance (control and Management Law Chapter 54, Laws of Eastern Nigeria, 1963 and Section B of the Funds and Accounts Law, chapter 57,Laws of Eastern Nigeria, no moneys may be withdrawn from the Consolidated Revenue or Capital Development Funds of Abia State except on the authority of a warrant under the hand of the Commissioner responsible for Finance and no such warrant may be issued for the purpose of meeting any expenditure unless that expenditure has been authorized by the constitution or law.

(e) There are two types of expenditure: -

(i) statutory expenditure, which is expenditure charged on the Consolidated Revenue Fund by the Constitution (e.g. the salary of the Governor) or by a Law other than an Appropriation Law (e.g. Statutory pensions);

ii) appropriated expenditure, which is charged upon a Fund by, or in anticipation of, an Appropriation Supplementary Appropriation or Excess Votes Appropriation Law authorizing the expenditure of specified sums, in a given year, for specified purposes.

Annual Estimates and Appropriation Act

402 - The Annual Estimates and Appropriation Act will be held to limit and arrange the disbursement of the funds of the Abia State Government and no expenditure may be incurred except on the authority of a Warrant of the Commissioner of Finance. No expenditure may be incurred except on the authority of a Warrant of the Commissioner of Finance. No expenditure may be incurred by any officer on any service, whether or not included in the Estimates. until he has received an authority to do so in accordance with one of the Regulations in this chapter. Any officer controlling a vote. or part of a vote, allocated to him who incurs expenditure without such authority does so on his sole responsibility and will consequently be held pecuniarily responsible for his action.

RECURRENT EXPENDITURE

Recurrent expenditure authorities to incur

403 - Recurrent expenditure is paid from the Consolidated Revenue Fund and no such expenditure may be incurred except on the authority of a Warrant duly signed by the Commissioner of Finance and without such a warrant the Accountant-General shall not accept in his accounts any charge upon the consolidated Revenue Fund. The Authority of the Commissioner of Finance shall be conveyed in one of the following forms of warrant.

1) The Annual General Warrant of Recurrent Expenditure

2) A provisional General Warrant

3) A supplementary General Warrant of Recurrent Expenditure

4) A supplementary (Contingencies) Warrant

5) A Virement Warrant

6) A Supplementary (statutory Expenditure) Warrant

Annual General Warrant

404- The Annual General Warrant authorizes the Accountant-General to issue funds to pay for the personal Emoluments and other services provided in the Annual Estimates, and authorizes the Officers controlling the expenditure votes to incur expenditure on these purposes. But the Commissioner of Finance may exclude from the Annual General Warrant any item of expenditure over which it is desired to exercise special control (see Financial Regulations 407).

The original copy of the Annual General Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General. A notification that the warrant has been signed shall also be published in the Abia State Official Gazette.

Provisional General Warrant

405-a) A provisional General Warrant, which will be issued if the Appropriation Act has not come into operation at the beginning of the Financial Year, provides (for a period of three months, or until the Appropriation Act comes into operation, (whichever is the shorter) for the continuance of the services of the Government at a level not exceeding the level of those services prevailing in the previous financial year. Any moneys so expended shall not exceed the sum specified in the Estimates presented for approval and shall be set off against the respective amounts provided in the Appropriation Act upon its coming into operation. The original copy of a Provisional General Warrant is addressed to the Accountant General and signed copy shall be forwarded to Auditor-General. A notification that the Warrant has been signed shall also be published in the Abia State Official Gazette.

b) However, it shall be deemed lawful for the Accountant-General to pay staff salaries in all Abia Ministries and Extra-Ministerial Departments in January or until the General Warrant or the Provisional General Warrant is issued whichever is earlier.

Supplementary General Warrant

406-A Supplementary General Warrant authorizes the Accountant-General to issue funds to pay for the additional Personal Emoluments and other services which may have been approved in Supplementary Estimates, and for which additional funds have been appropriated by the State Assembly. The Commissioner of Finance may exclude from the Supplementary General Warrant the item of expenditure over which it is desired to exercise some control (see Financial Regulation 407).

The original copy of a Supplementary General Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General. A notification that the Warrant has been signed shall also be published in the Abia State Official Gazette.

Supplementary (Contingencies Warrant)

407 - A Supplementary (Contingencies) Warrant may be issued in very exceptional cases, where virement is not possible and where an application for additional provision reveals such a degree of urgency that the issue of funds cannot without serious injury to the public interest be postponed until a Supplementary Appropriation Act can be passed.

Such authority will be conveyed by the issue a Contingencies Fund Warrant to the Accountant General, authorizing him to transfer the necessary funds from the Contingencies Fund to the Consolidated Revenue Fund, and by the issue of a Supplementary (Contingencies) Warrant, authorizing expenditure from the Head and Sub Heads concerned. The original copies of both warrants are addressed to the Accountant-General and signed copies shall be forwarded to the Auditor-General. The Commissioner of Finance will also notify the officers controlling the relevant votes of the additional expenditure authorized.

408- In no circumstances will expenditure incurred under this contingencies Fund procedure be charged, or the relevant vouchers classified, to the Contingencies Fund direct. Expenditure authorized under this procedure is subject to the covering ratification of the state Assembly at its next meeting and must for this purpose be included in a Supplementary appropriation law. The supplementary General Warrant will be the authority for the Accountant General to transfer the sum appropriated to the Contingencies Fund.

Virement Warrant

409-i) A Virement Warrant may be issued when, as a result of circumstances which could not have been foreseen when the Annual Estimates were framed, additional provision is required under a particular sub-head (or a new sub-head is required) while, at the same time, equivalent savings can be made under another sub-head of the same Head Virement Warrants are issued under the Statutory authority of the Commissioner of Finance, to authorize by Warrant the issue of funds.

ii) Accounting Officers may apply for Virement from one sub-head to the other under the following conditions:

a) the amount to be vired from any sub-head within a financial year under over-head costs does not exceed 10% of the approved estimates for each sub-head under the over-head cost.

b) virement is not used to create a new sub-head or re-introduce items disallowed by the Estimates Committee during the Estimates exercise of the State Assembly.

c) virement does not apply to queries raised by the Auditor-General in respect of improper expenditure already incurred by a Ministry/Extra-Ministerial Department.

d) a register is kept of all virements made: The details of the virements authorized under (ii) above shall be forwarded within one month from the date of approval to the ministry concerned and copies to the Accountant - General and the Auditor - General

(ii) above shall be forwarded within one month from the date of approval to the Ministry concerned and copies to the Accountant-General and the Auditor-General.

Variation in Establishment.

410-Any variation in the Establishment or rates of allowances authorized for the Public Service in the Annual or in supplementary estimates, whether or not it requires an addition by virement to the personal Emoluments vote concerned, must receive the approval of the Commissioner for Finance and the Bureau of Establishments which approval shall be notified to the Auditor General.

Supplementary (Statutory) Expenditure Warrant.

411 - A supplementary (statutory Expenditure) Warrant authorizes where necessary additional expenditure, over and above that included in the General Warrant, from votes which are chargeable against the consolidated Revenue Fund by virtue of the Constitution of the Federal Republic of Nigeria. The original copy of a Supplementary (Statutory Expenditure) Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General. The ministry of Finance will also notify the officers controlling the relevant votes of the additional expenditure authorized.

Authorized Expenditure not to be Exceeded

412 - The authority conveyed to the Accountant-General, and to officers controlling votes, by Supplementary General Warrants is limited to the amounts provided under each sub-head in the Approved Estimates or Supplementary Estimates in excess of the provision in the Approved Estimates or Supplementary Estimates may be authorized by any officer controlling a vote, without the prior approval of the Ministry of Finance. Such approval will be sought by means of an application for supplementary provisions or virement.

No revote of Recurrent Expenditure

413 - If provision is required to complete payment for an item for which provision was made in the previous year's Estimates, and which cannot be contained within the current year's Estimates, an application for Supplementary Provision or for virement must be made. An unspent balance on a Recurrent Expenditure vote cannot be revoted.

Application for supplementary provision

414-Subject to any special instructions which may from time to time be issued, applications for supplementary Provision should be submitted to the Commissioner for Finance on General Form 57, with a copy to the Auditor general and, where questions of establishments, grading or personnel (including all non-established labour) are involved, a copy must be sent to the Bureau of Establishments.

The Commissioner of Finance will decide, after consultation, where necessary, with the office of Establishments and Managements Services whether an application is justified and the provision of additional funds is in the public interest. He will also decide whether the provision should be included in the Supplementary Estimates to be submitted at the next meeting of the State Assembly or provide the funds immediately by means of a supplementary (Contingencies)Warrant or by a Virement Warrant.

Application for Virement

415- Applications for virement should be submitted to the Ministry of Finance on General Form 57, with a copy to the Auditor General. In cases where virement involves a question of establishments, grading or personnel, a copy of General Form 57 must also be forwarded direct the Bureau of Establishments. Application for authority under Financial Regulation 410 should be made in the same way if any addition is required to the rates personnel emoluments or allowances, or to the number of posts authorized in the Estimates, or if any change is to be made in the grading of such posts even though the amount provided under the same sub-head will not thereby be exceeded.

Control on "Savings" created on issue of Virement Warrant

416 - Officers authorized to incur expenditure will ensure that, once the re-allocation of funds has been approved, expenditure against the sub-head from which the provision has been transferred is not allowed to exceed the reduced provision that remains. Officers controlling votes are personally responsible for ensuring compliance with this requirement.

CAPITAL EXPENDITURE

Capital Expenditure from Development fund

417-Capital Expenditure is paid from the Development Fund, and no such expenditure may be incurred except on the authority of a warrant from duly signed by the Commissioner of Finance and without such a warrant the Accountant-General shall not accept in his accounts any charge upon the Development Fund. The authority of the Commissioner of Finance may be conveyed in one of the following forms of warrant:

1) The Development Fund General Warrant.

2) A Provisional Development Fund General Warrant.

3) A Development Fund Supplementary General Warrant.

4) A Development Fund Supplementary Warrant.

5) A Development Fund (Special) Warrant.

6) A Development Fund virement Warrant.

418 - The Development Fund General Warrant authorizes the Accountant-General to issue funds for expenditure on capital projects, as contained in the Annual Estimates, and authorizes the officers controlling the expenditure, roles to incur expenditure on these project. Such authority will be conveyed after the Capital Expenditure Estimates have received approval by resolution of the State House Assembly. The Commissioner of Finance may exclude from the Development Fund General Warrant any item of expenditure over which it is desired to exercise special control. The original copy of the Development Fund General Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General. A notification that the Warrant has been signed shall also be published in the State Official Gazette.

419-A Provisional Development Fund General Warrant, which will be issued if the draft Capital Estimates have not been approved by the State Assembly at the beginning of the financial year, authorizes payment from the Development Fund of such moneys as are necessary for carrying on projects for which any expenditure has been authorized in any previous financial year for a period of 3 months, or until the authority of the State Assembly has been obtained for the draft capital Estimates for the current financial year whichever is the shorter.

The original copy of a Provisional Development Fund General Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General. A notification that the Warrant has been signed shall also be published in the State Official Gazette.

420 - A Development Fund Supplementary General Warrant authorizes the Accountant-General to issue funds, and the officers controlling the votes concerned to incur expenditure, on projects as sanctioned by the State Assembly in resolutions approving Supplementary Capital Estimates. The Commissioner of Finance may exclude from the Development Fund Supplementary General Warrant any item of expenditure included in Supplementary Capital Estimates over which it is desired to exercise special control. The original copy of a Development Fund Supplementary General Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General.A notification that the warrant has been signed shall also be published in the State Official Gazette.

Development Fund Supplementary Warrant

421 - A Development Fund Supplementary Warrant authorizes the Accountant-General to issue funds and the officers controlling the vote concerned to incur expenditure in certain circumstances on capital projects beyond the amounts provided for the year concerned in the Annual or Supplementary Capital Estimates. Its purpose is to accelerate the provision of funds already formally allocated but not yet voted for a project, by bringing forward an amount from the "Balance to Complete" column of the Estimates. Provision of funds by such a warrant is strictly limited in so far as the amount of provision brought forward, when added to the total expenditure authorized for the current year, must not exceed the estimated total cost of the project as shown in the Annual or Supplementary Estimates. The original copy of a Development Fund Supplementary Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor-General. The Ministry of Finance will also notify the officers controlling the relevant votes of the additional expenditure authorized.

Expenditure brought forward not to exceed balance in Development Fund

422-Expenditure brought forward must not exceed the balance in the Development Fund remaining after all other expenditure authorized for the year has been provided for. Expenditure authorized by a Development Fund Supplementary Warrant is required to be reported to the State Assembly, at its next meeting.

Development Fund(special warrant)

423 - A Developmental Fund (Special) Warrant may be authorized by the State Executive Council when an application for Supplementary provision reveals a degree of urgency which makes it essential that funds be immediately made available to meet expenditure which cannot be provided for by virement not without serious injury to the public interest, be postponed until adequate provision can be made by the State Assembly.

The issue of such a warrant for any amount is subject to the limitation that if expended at once it must not exceed the balance of the Development Fund remaining after all other expenditure for the year has been provided for. Expenditure authorized by Development Fund (special)Warrant shall be submitted under the appropriate Head of a Capital Expenditure to the State Assembly at its next ensuing meeting for approval. The original copy of a Development Fund (Special)Warrant is addressed to the Accountant-General and a signed copy shall be forwarded to the Auditor General. The Ministry of Finance will also notify the officers controlling the relevant votes of the additional expenditure authorized.

Development fund Virement Warrant

424-The purpose of a Development fund Virement Warrant is to permit the issue of additional funds necessary the completion of a capital project, for which funds have been appropriated, where the project cannot be completed within the amount shown as its estimated total cost in the approved Annual or Supplementary Estimates, but where sufficient offsetting savings can be found within the amounts appropriated for other capital projects in the same Economic programme section, or where a sufficient amount is available within an appropriation made under the section providing a margin for increased costs. Such Virement is subject to the following limitations.

(i) re-allocation may be made only within the same Head of Expenditure in the Capital Estimates;

(ii) the re-allocation must not give effect to a new principle, or policy, or so increase provision as to raise doubts whether the intentions of the State Assembly in approving the Head of Estimates concerned would not be exceeded;

(iii) funds cannot be provided in this way for a new project.

A Development Fund Virement Warrant will be approved by the commissioner of Finance. The original copy of the Warrant is addressed to the Accountant-General and signed copy shall be forwarded to the Auditor-General. The Ministry of Finance will also notify the officers controlling votes of the additional expenditure authorized.

Capital Expenditure application for additional provision

425- Subject to any special instructions which may be issued from time to time, applications for additional capital provision should be made by letter addressed to the Ministry of Finance, with a copy to the Abia State Planning Commission. Where an application involves the bringing forward of expenditure, the letter must be supported by a statement showing in respect of each project concerned:

(i) the estimated total cost as shown in the Current Estimates, whether Annual or Supplementary,

(ii) the total expenditure incurred up to the end of the previous financial year,

(iii) the provision in the Current Estimates, whether Annual or Supplementary;

(iv) the amount of the vote, or bringing forward of expenditure, sought.

Expenditure from other Public Funds

426 - The foregoing Financial Regulations set out the authorities necessary, for expenditure to be incurred from the Consolidated Revenue Fund and from the Development Fund or where a sufficient amount is available within an appropriation made under the section providing a margin for increased cost. The authority to incur expenditure from any of the other Public Funds of the Government is the appropriate Warrant signed by the Commissioner of finance, addressed to the Accountant-General, who is empowered to make disbursements from the various public Fund in the manner prescribed by law, in accordance with the special rules relating to each fund.