PART 1 LOSS OF STORES, PLANTS, MOTOR VEHICLES AND EQUIPMENT.

Minor Losses: write-off of.

3401 - A loss of stores, plant, equipment, etc. may be written-off

a) Their original cost or the estimated value, whichever is applicable,of a unit of each item does not exceed N5,000, and the sum total of the value of the item does not exceed N20,000.00.

b) There is no apparent weakness in the system control.

c) There is no evidence of fraud or theft.

d) the officer(s) found negligent is within the delegated power of the Accounting Officer.

Power of Write-off of the Minister of Finance

3402-The authority for tine write-off of Abia State losses of stores is the prerogative of the Commissioner of Finance. A limited degree of power of write-off is delegated to Accounting Officers under the of Finance:the Minister appropriate Financial Regulations.

Procedure:Officer-in-action by.

3403 -In the event of any loss of stores, the officer in charge of the store in which the loss occurs, will:

a) Report immediately to the Head of Department or Unit,by the charge of fastest means possible if the loss occurs away, from stores,Headquarters.

b) Report to the nearest Police Station if there is any possibility of fraud or theft.

c) Initiate action on Treasury Form 146(R) (see Appendix No.11), complete Part 1 and forward the form in quintuplicate to his Head of Division or Unit, without delay.

d) Ensure that,if a weakness in the system of control, or in security is revealed, immediate measures are taken to prevent a recurrence of the loss.

Procedure: Head of Department or Unit, action by

3404-On being informed of the loss, the Head of Department or Unit, will:

a) Forward immediately, in writing, brief details of the loss to his Accounting Officer.

b) Investigate the whole incident at the earliest, complete Parts II and III of Treasury Form 146 (Revised), and forward the forms action by.

in quadruplicate to his Accounting Officer. If the investigations Form 146 as soon as possible, and follow-up with interim and final reports in letter form.

c) Recommend to his Accounting Officer the convening of a Board of Enquiry if he considers the circumstances warrant such an investigation. (see Financial Regulation 3405).

d) Ensure that, if a weakness in the system of controI or in security is revealed, measures have been taken to prevent a recurrence of the Loss.

e) Obtain copies of the Police Report and/or Coùrt Proceedings,where appropriate, and forward four copies to his Accounting Officer.

Board of Inquiry when to convene.

3405 - In considering whether a Board of Enquiry should be held,considerationshould be given to the following:

a) If fraud is involved;

b) If the loss exceeds the amount specified in FR. 3401;

c) If several officers are involved;

d) If there is any doubt as to the degree of responsibility for the loss;

e) If the loss occurred over a period of time. A Board of Enquiry shall be convened in such cases.

Accounting Officer: action by.

3406 - On receipt of the reports of the loss the Accounting Officer will:

a) If the loss is a minor one, and falls under the categories of Financial Regulation 3401, examine the reports, take the appropriate disciplinary action, complete Part IV of the Treasury Form 146 (Revised) and forward one copy of the form to the Head of Division for the appropriate accounting action,and send one copy of the form to the Accountant-General, and one to the Auditor-General.

b) If the loss does not fall under Financial Regulation 3401,he will:

i) If the loss is a substantial one, send immediately brief details of the loss in writing to the Accountant-General, and to the Auditor-General,

ii) Request the convening of a Board of Enquiry if ha considers the circumstances of loss warrant such investigation (see Chapter 15 for procedure lor convening of a Board of Enquiry, and Financial Regulation 3405 for examples when a Board must be convened).

iii) Consider the interdiction/suspension from duty of the officer concerned if he considers that the circumstances of the loss warrant such disciplinary action.

iv) Examine the full circumstances of the loss and forward to the Accountant-General and Auditor-General,appropriate staff Committees of the Ministry/Extra-Ministerial Department or the Civil Service Commission by letter as the case may be, together with the report on Treasury Form 146 (Revised) and where appropriate the supporting documents, including Police Reports and copy of Court Proceedings, his comments on the/loss and,where appropriate, his recommendations for surcharge and information on disciplinary action taken against the officer. Such comments and recommendation shall be distributed within three months.

Note: If the investigations are liable to be protracted,or where the findings of the Board of Enquiry may not immediately be available, the forwarding of reports on Treasury Form 146 (R) must not be delayed, and in such circumstances, the Accounting. Officer should forward the sets of reports to the addressees, immediately,with his initial comments, giving, inter alia, details of the cause of delay. He should then follow-up the case with interim and final reports in writing to the above mentioned addresses, and to include a final recommendation for surcharge, and any further Police Report or copy of Court Proceedings received by him.

V) Ensure that, if a weakness in the system of control or security is revealed, precautions have been taken to prevent a recurrence of the loss.

vi) Examine the findings of the Board Enquiry, when convened, and make a final report on the loss to include his comments on the findings of the Board of Enquiry,and his recommendations for surcharge, where appropriate, and then distribute the report to the addresses as at (iv) above.

vii) Take all practicable measures to recover the loss,and,if it seems likely that a civil action through the courts would be successful in recovering part or the whole of the loss, forward all supporting evidence to the Accountant-General with a request for presentation of the case to the nistry of Justice for appropriate action.

Procedure: Accountant- General,action by.

3407- On receipt of the report of the loss, the Accountant-General will: a)Ensure that the full procedure has been followed by the Ministry/Extra-Ministerial/Department concerned.

b) Ensure that a nominee of the Accountant-General is a member of the Board of Enquiry.

c) Request the Secretary, Permanent Board of Survey and Enquiry to convene a Board, should he disagree with a decision not to call one.

d) Request the Secretary, Permanent Board of Survey and Enquiry to include any specific item in the terms of reference of the Board.

e) Ensure, that, if a weakness in the system of control or in security is revealed, adequate measures have been taken to prevent a recurrence of the loss.

f) Ensure that every practicable measure has been taken for the recovery of the loss.

g) Recommend to the Accounting Officer or Civil Service Commission as the case may be where appropriate, a surcharge and disciplinary action against any officer involved in the loss.

Additional procedures.

3408-The provisions of Financial Regulations 1501 - 1511 relating to procedures for the Abia State Civil Service Commission,and losses involving State Officers and the division of losses between the various Governments, will apply, mutatis mutandis, to the loss of stores.

Power of write-off.

3409-The authority for the write-off of Abia State losses of stores is the prerogative of the Abia State Commissioner of Finance. A limited degree of this power of write-off is delegated to the Accounting Officers under Financial Regulations 3401 and 3402 respectively.

PART II-UNSERVICEABLE STORES, BUILDINGS, PLANTS, MOTOR VEHICLES AND EQUIPMENT.

Write-off power of unserviceable stores etc, write-off by Accounting Officer.

3410 - Unserviceable stores, buildings, plants, motor vehicles and equipment may be written-off and disposed of under the personal authority of the Accounting Officer, provided that:

a) the original cost of estimated value; whichever is applicable,does not exceed N250,000.00 in case of general stores, or N500,000.00 in case of plants, motor vehicles and equipment,or N1,000,000.00 in case of building in any financial year.Where exigencies of the service demand, special dispensation will be granted to each Ministry/Extra-Ministerial Department by the Accountant-General.

b)been surveyed and condemned by an independent Board of Survey. (sèe Financial Regulations 3502 and 3503 for procedure for the convening of a Board of Survey).

c) If negligence of an officer is involved, the disciplinary action (with or without surcharge) against the officer(s) found negligent is within the delegated powers of the Accounting Officer.

d) The Accounting Officer is of the opinion, after taking advice from the appropriate technical officer, that the unserviceable articles are beyond economic repair. In the case of motor vehicles, plant and equipment, Ministries/Extra-Ministerial Departments which have their own engineering/technical facilities will undertake the inspection and valuation; those without such facilities may request the assistance of the Ministry of Works, or other Ministries/Extra-Ministerial Departments having such facilities, or employ the services of a registered engineering/technical workshop, e.g. a reputable automobile workshop or engineering firm.

See also, Financial Regulation 3412 for disposal of expendable tools and 3413 for disposal of machine parts.

Write-off of nserviceable stores,etc. Power of write-off by Accountant General.

3411 - Under similar circumstances stated in Financial Regulation 3410, unserviceable stores, buildings, plant and equipment may be written-off and disposed of under the personal authority of the Accountant-General provided that:

a) the original cost or estimated value, whichever is applicable, does not exceed N300,000.00 in case of general stores, or -N750,000.00 in case of building, in any financial year.

b) similar conditions stated in sub-paragraphs (b), (c) and (d) shall apply. See Financial Regulations 3412 for disposal of expendable tools and 3413 for disposal of machine parts.

3412-Expendable tools (see Financial Regulations 2302 and 3606) which become unserviceable through fair wear and tear may be written off and charge to the Expendable Tools Ledger on the .authority of the officer in charge of the Workshop or Unit, provided that he is on salary level 07 and above (see Financial Regulation 3608for the form of destruction certificate).

Used parts of Plants or Vehicles: write-off of

3413 - used parts of plant and vehicles which have become unserviceable by fair wear and tear may be written off on the authority disposal by destruction, by sale, by public auction or public tender.signed by a Mechanical Engineer.

Procedure: action by Officer-in- Charge.

3414-It is the duty of the officer directly in charge of a store to segregate unserviceable articles and to report to his Head of Department or Unit on the circumstances leading to the stores being rendered unserviceáble.

Procedure: Head of Departinent or Unit.

3415-a) It is at the discretion of the Head of Department or Unit whether the quantity of stores considered to be unserviceable is sufficient to justify the convening of a Special Board of Survey(see Chapter 35) or whether the articles should be held for inspection by the next periodical survey to be held under the provisions of Financial Regulation 3501. There must be no delay however, in the application for a Board of Survey for articles which have a residual value which are liable to deteriorate rapidly, such as motor vehicles or items for furnishing,etc.

b) For boarding purposes, Boards of Survey should be convened at least once in every two months or as soon as unserviceable stores accumulate.

c) Condemned stores should similarly be disposed of either by auction sale or as directed by the Board, but disposal instruction must be carried out promptly within one month of the date of boarding.

d) The Head of Department or Unit will submit to the president of the Board of Survey, Treasury Form 147 (see Appendix 12) in quintuplicate, together with Store Form 9 in quintuplicate, duly completed with the details of the stores to be inspected.A separate set of forms must be submitted for those articles of stores which fall to be dealt with under the provisions of Financial Regulation 3410.

Report by Board of Survey.

3416-The president of the Board of Survey will complete Part II of Board of Survey and Enquiry, to the Accounting Officer.

Procedure: Accounting

3417 - On receipt of the reports on Treasury Form 147, the Accounting Officer will:

a) If the unserviceable articles fall within the provisions of Financial Regulation 3410- examine the reports, take the appropriate disciplinary action, complete Part III of the Treasury Form 147, and forward one set to the Head of Division with his instructions for disposal of the unserviceable articles,one set to the Accountant-General, and one set to the Auditor-General.

b) If the unserviceable articles do not fall within the provisions of Financial Regulation 3410 - examine the reports, complete Parts IV and V of Treasury Form 147 and his recommendations and distribute two sets of the forms to the Accountant-General of Abia State and one copy to the Audítor-General.

Procedure: Accountant- General.

3418 - On receipt of the report on Treasury Form 147, the Accountant-General will, if negligence is involved, forward recommendation for disciplinary action to the Accounting Officer of the Ministry concerned. The authority for the write-off and disposal of the stores will be conveyed to the Accounting Officer by a completed Store Form 9 under cover of letter,a copy of which will be forwarded to the Auditor-General.

Destruction of.

3419 - Unservicéable stores authorized to be destroyed must be destroyed in such a manner as to render the articles unusable for heir original purpose. The certificate of destruction,signed by at least two officers who witnessed the destruction, must be completed to include details of the quantities destroyed and the method of destruction used.The certificate will be attached to the copy of the relative Treasury Form 147 in the possession of the Accounting Officer.

3420-Accounting Officers will make arrangements by or the sale of the unserviceable and condemned stores by a licensed public auctioneer, or, where appropriate, by public tender in accordance with Financial Regulation 3320.

3421-i) The Officer in charge of the public auction, or public tender Proceeds of will pay thenet proceeds of the auction after the deduction of the Sale by auctioneer's commission, or, alternatively, the full proceeds of the Public tender, to the nearest Sub-Treasury or Central Pay Office for Public auction or classification of the appropriate Sub-Head of the Miscellaneous Revenue Head,and he will inform the Accounting Officer concerned Tender of the details of the proceeds of sales and quote the reference and date of the relevant Treasury Receipt. The Accounting Officer will inform the Accountant-General,and the Auditor-General of the reference

number, date and amount of the Treasury Receipt for the proceeds of

ii) Where the gross proceeds of an auction are paid into the Treasury,the auctioneers Commission shall be paid from the revenue head into which the full proceeds were paid.(see F.R.2206).

3422 - The authority for the write-off of Abia stores, plant, buildings and equipment when condemned as unserviceable is the prerogative Power of of the Abia State Commissioner, of Finance. A limited degree of write-off.power of write-off is delegated to the Accounting Officer and the Accountant-General under the Financial Regulations 3410 & 3411.

Constitution of Ministerial/ Departmental Board of Survey

3423-i) Each Ministry/Extra-Ministerial Department will set up Board of Survey for the boarding and disposal of its unserviceable -tores, vehicles,plants,and equipment,etc.

1) A Ministerial/Extra-Ministerial Department Board of Survey shall consist of at least three members:

a) The Chairman shall be an officer on G.L. 14 or above except in a liaison office where an officer on G.L. 12 and above may be the Chairman;

b) The Head of Accounts Division or his nominee;

c) A professional/technical Officer whose expertise relate to the items being boarded.

Prohibition of Membership

iii) The Transport Officer, Storekeeper(s) or other stores officials of the Ministry/Extra-Ministerial Department or office shall not serve on the Board.

Depreciation for write-off

3424 -For the purpose of arriving at the estimated value(s) of stores,motor vehicles, plants and equipment, the fllowing guidelines are provided:

a) For motor vehicles with engine capacity of 2000 cc and below and construction vehicles over 7 tones:

Under I year old 20% reduction on original cost.

Between 1 and 2 years old 40% reduction on original cost.

Between 2 and 3 years old 60% reduction on original cost.

Between 3 and 4 years old 80% of reduction on original cost.

Between 4 and 5 years old 85% reduction on original cost.

Between 5 and 6 years old 90% reduction on original cost.

Between 6 years and above 95% of reduction on original cost.

Construction vehicles over 7 tones can be depreciated by this method.

b) For motor vehicles with engine capacity of over 2000cc.

Between 1 and 2 years old 50% reduction on original cost.

Between 2 and 3 years old 65% of reduction on original cost

Between 3 and 4 years old 75% of reduction on original cost.

Between 4 and 5 years old 85% reduction on original cost

Between 5 and 6 years 90% of reduction on original cost.

Between 6 and above 95% reduction on original cost.

c) Accident Vehicles, etc: In cases of a vehicle rendered unserviceable as a result of accident or whose working life.has come to premature and for other reasons, arvangement should be made within two months of such accident,etc. (or where Police investigation is involved, immediately after such investigation) to have the vehicle inspected and certified as such by an Engineer or technical expert (such as mentioned in F.R. 3310 (a) above) who should also produce a valuation report for the guidance of the Board of Survey.

d) For plants and equipment: An Engineer's estimated value of the asset at the time of the write-off or disposal shall be obtained.

e) For general stores, the estimated value shall be furnished by a stock Verifier.

f) In an Overseas Mission, motor vehicles can be written-off at depreciation rates prevailing in the host country.

PART III-DESTRUCTION, WRITE-OFF AND LOSS OF OPERATIONAL ANIMALS

3425 - An operational animal may be disposed of on any of the Grounds for following grounds: disposal of

a) Failure to respond to training; operational animals

b) Unsatisfactory performance for any reason after having been posted for operational duties; or

c) Incapacitation by age, injury or illness.

Veterinary Officer:certificate of cause of death.

3426 -If an operational animal dies as a result of an accident or from natural causes, a report from the Veterinary Officer shall be obtained certifying the cause of death.

Injuries to operational animals

3427-In every case of serious injury to an operational animal and in every case where an operational animal dies from any other than natural causes, a Senior Officer under whose command the animal is serving, shall cause all full inquiry to be made into the circumstances surrounding the injury or death.

Procedure for boarding

3428- The following procedure will be adopted in boarding and disposing of operational animal:

i) One Veterinary Officer and two Senior Officers one of whom shall be an accounts Officer,will constitute the Board.

ii) All reports of Board of Survey shall be accompanied by Medical history card and certificate of Health(Appendix B).

iii) The Board of Survey shall make specifir recommendations as to sale or destruction.

iv) The Board of Survey Reports will be submitted to the Accounting Officer of the Ministry/Extra-Ministerial Deparment concerned who would seek covering approval from the Accountant-General of the Abia State.

v) A copy each of the Board of Survey Reports, particulars of proceeds of sale or Destruction Certificate will be furnished to the Accountant-General of Abia State and the Auditor-General for Abia State for record purposes.

Operational animals destroyed by officer

3429 - i) The destruction of animals shall be carried out by a Veterinary Officer as provided in Financial Regulation 3425.

ii) Where the services of a Veterinary Officer are not available,animals shall be destroyed by a Senior Officer who has been trained in the safe and humane method of destroying animals.

Operation animals destruction certificate Appendix A.

3430-The Veterinary Officer or a Senior Officer destroying an operational animal shall be required to complete (in quintuplicate) a Destruction Certificate (Appendix A). Where the destruction is by a senior officer other than a Veterinary Officer,the Certificate shall be witnessed by another officer.

Disposal of report and distribution

3431- i) In every case of the destruction of an operational animal the officer in charge of the operational unit shall render a full report on the circumstances leading to such destruction.

ii) Copies of the report, together with copies of the destruction certificate shall be forwarded to the Accountant-General of Abia State and the Auditor-General for Abia State through the Accounting Officer of the Ministry/Extra-Ministerial Department concerned.

3432 - The final authority to delete an operational animal from the or any officer to whom such powers are delegated by him.

3433- Loss of live animals shall be reported to the Accountant-146 stating full details of the loss and supported with relevant documents such as Police Report.

3434 -Write-off of animals shall be restricted to theft of live horses, Theft of dogs,and any other operational animals. write-off Animals:

3435-The Accountant-General of Abia State will record as losses all Action by cases of theft of animals against the Ministry/Extra-Ministerial Accountant-Department submitting such report. General of Abia State

PART IV-ACCOUNTING PROCEDURE FOR THE WRITE-OFF OF STORES LOST OR UNSERVICEABLE

Memorandum Record

3436-On the discovery of a loss of stores, a memorandum note in red ink will be made of the details of the deficiency in the relative stores Ledger Account and Tally Card. (Financial Regulations 3504(j).

Application of Financial rendered unserviceable. Regulations Chapter 15 Part II.

3437 - The provisions of Financial Regulations 1523 to 1527 will apply, mutates mutandis, to the write-off of stores lost and storesrendered unserviceable

Entries To be made.

3438 - On receipt of the authority for the write-off of allocated stores,an issue voucher will be raised to support the write-off entry to be made in the relative Stores Ledger Account and Tally Card, and the voucher entry in the ledger will be duly initialed by the officer in charge of the Store. A reference to the write-off authority will be written in against the entry and included i the detail of the issue voucher.

Unallocated Stores.

3439-The procedure for the write-off of Unallocated stores will be in accordance with Financial Regulations.