LOSS OF AND SHORTAGES IN PUBLIC FUNDS:
BOARD OF INQUIRY
Part A - General
Definition
1501 - For the purposes of this Chapter, public funds shall include cash, fixed-fee receipts, Entertainment Tax Tickets and stamped blank Promissory Notes, Moneys properly collected by Tax colfection agents but not yet paid into a Government officer are dealt with in Part C. Where a mixed loss (of both public funds and stores) has taken place, the procedure prescribed by this Chapter will take precedence over that prescribed by Chapter 36 of the Abia State Financial Regulations. However, where a write-off of stores is recommended,Form Store 8 will be completed in quadruplicate and submitted along with the Board's report as per F. R. 15077 (g).
Loss affecting other Govts.
1502- The procedures described in F.R.s 1511 to 1513 apply within Abia State and to the Abia State Offices,Abuja,Lagos,irrespective of whether Public funds belong to the officer responsible is a member of the Public Service of this or another Nigerian Government.When the Permanent Secretary,Ministry of Finance, receives a final report(in accordance with F.R.1510(g) from the Accountant-General from wich it is clear that public funds belonging to, an officer in the service of another Nigerian Government is involved, he will take further action in accordance with the procedure agreed with the Government.
Minor shortage in a sub treasury
1503-When a shortage not exceeding N10 occurs in the course of normal operations in a Sub-Treasury and there is no evidence of fraud Minor or negligence, it will be reported in writing to the Accountant-General shorta by the officer in-charge. The Accountant-General will chage the Sub-shortage as a personal advance against the officer directly responsible Treasu and ensure its recovery. If. upon investigation, it is established that no fraud or negligence is involved, he will report the circumstances to the Permanent Secretary,Ministry of Finance and to the Auditor General in writing;otherwise he will follow the procedure laid down in part B.
Minor shortage in a remittance
1504-A shortage not exceeding N10.00 in a remittance will be dealt Minor with in accordance with F R.1026.
Board of Enquiry Composition
1505-A Board of Enquiry to investigate a loss or shortage of public funds will consist of a prsident and at least two members, of whom at least the president must in any case be an officer with at least three years' service in salary Grade Level 09 or above.
The convening authority ould,however,select more senior officers wy an oficer of the Audit Department be appointed to a board ree instruction and subject to law.
Boards of Enquiry appointment
1506 -Boards of Enquiry (including those to investigate mixed losses - see F.R.1501) are appointed by or on the authority of the Accountant-General. If he considers that a Board is necessary (see F.R.1510(c) and-
a) the loss is of a minor nature and there appear to be no complications, he may instruct the Administrative Officer in-charge of the Division to appoint the Board.
b) the loss involves a large sum, or he considers it desirable for any other person, he may appoint the Board himself,
c) there is a protracted adjournment (see F.R.1507(b) he may replace any member or appoint a new Board,provided that he is satisfied that all factual circumstances have been recorded and all material statements obtained.
In any case the Board must be instructed te comity with provisions of F.R.1507
Board of ENquiry Procedure
1507-Boards of Enquiry will observe the following procedure:- Enquiry
procedure.
a) The Board wil1 meet at the times and places most suitable for an efficient and exhaustive enquiry; its first meeting must be held within seven days of its appointment;
b) Where Police action is being taken, the Board will submit an interim report upon matters of fact within twenty-eight days of notification of the loss;it will defer its final recommendations until completion of Police action and they should then include consideration of Police reports and or court proceedings;
Whenever an adjournment is necessary,the Board will ensure that signed statements are obtained from any person who may not be available at a future meeting when his evidence is required.
d) The Board may not examine a person against whom a criminal utmost importance that the Accountant-General be placed in weakness in the system that is revealed may be corrected at once;
e) If evidence cannot be recorded verbatim,it may be summarized by the Board in such a manner as to facilitate examination and deduction;
f) the Board's final report will include:
i) a statement as to the exact amount of the loss or shortage;
ii) an opinion whether the system,or its application was at fault,together with suggestions for any possible remedy;
iii) a recommendation as to responsibility for the loss or shortage in whole or in part;
iv) in cases of collective responsibility,a recommendation as to its apportionment;
v) any other matters specifically required by the terms of reference;
g) the president of the Board will forward its report in triplicate (in quadruplicate if another Nigerian Government may be affected)to the Head of Department,who will retain one copy.
Part B-Losses and Shortages (Public Funds) Procedure.
1508 a) immediately report to the police if there is the slightest suspicion of fraud or theft;
b) telegraph brief particulars, stating whether police action is being taken, to the Accountant-General and to his Head of Department;
c) complete Part I of the Loss or Shortage Report (A.T.F.42) in triplicate (in quadruplicate if another Nigerian Government may be affected) and forward to his Head of Department,who will retain one copy.
Head of Department
1509-The Head of Department must: Hea
a) within seven days of receipt of the telegram or report required by F.R.1508(b), investigate the case and forward an interim report to the Accountant-General;
b) obtain the Board of Enquiry's Report, record of court proceedings and final judgment if any. Where, on the basis of these, it is considered that disciplinary powers have been delegated,take such action;
c) complete A.T.F.42 as soon as it is received, record the disciplinary action, if any,taken and forward all documents in duplicate (in triplicate if another Nigerian Government may be affected) to the Accountant-General. If there has been a criminal conviction in connection with the case he should advise the Accountant-General whether the circumstances of the convicted persons are such as to warrant a civil action for recovery of the whole or part of the loss.
Accountant General
1510 - The Accountant Generl will -
a) as soon as he receives initial notification of the loss or shortage advise the Permanent Secretary, Ministry of Finance and the and the Auditor-General;
b) Intiate the necessary accounting action (see F.R.1523)
c) consider whether a Board of Enquiry is necessary, taking into the account the probability of fraud, the amount of the loss and the period over which it has taken place, and the extent to which responsibilty for it is defined and to which collusion may have taken place.
d) if a Board is required, take the necessary executive action (see F.R.1506); if not,advise the Permanent Secretary,Ministry of Finance accordingly, so that the Instructions of the Commissioner may be obtained;
e) take immediate steps to correct any procedural waknesses or errors that have become apparent;
f) if there are prospects of a successful civil action for recovery of all or part of the loss, refer the case to the Ministry of Justice;
g) forward his final report and recommendations (together with any Board of Enquiry Reports and all other relevant documents)to the Permanent Secretary, Ministry of Finance.
Permanent Secretary Ministry of Finance
1511- On receipt of a final report from the Accountant-General(see F.R.2410(g)the Permanent Secretary, Ministry of Finance will:
a) seek the comments of the Auditor-General upon the action that Ministry of he proposes to recommend; Finance.
b) submit the report to the Commissioner of Finance;
c) where disciplinary action is recommended, or disciplinary action that is in his opinion inadequate has been taken, refer, the case to the Public or Judicial Service Commission, as required, stating explicitly whether it is one in which delegated disciplinary powers have already been exercised.
d) advise the Accountant-General of any surcharg imposed by a Head of Department or by the Public or Judicial Service Commission.
Accountant-General final action
1512 - The Accountant - General will
a) ensure that any surcharge imposed is duly recovered;
b) implement instructions given by the Commissioner of Finance;
c) include details of his loss in his Annual Report for the financial year in which it is writen off or otherwise disposed of
Part C.- Losses of Public Funds and Tax Tickets and Pool Betting Receipts by Tax Collecting Agents
Responsibility of Tax Collecting Agent
1513 -Tax tickets printed in originals only are issued by Tax-collectors to formally-appointed Tax collecting agents in accordance with the provisions of F.R.1006; when a ticket is given by a Tax collecting agent to a tax-payer in exchange for a payment of tax it becomes an official receipt and therefore:
a) all moneys so collected by the agent become Revenue as soon as they reach his hands.Any failure by a Tax collecting agent to account for such moneys must be regarded as a possible loss of Public funds;
b) any loss by an agent of Tax tickets issued to him must be regarded as a possible loss of public funds.
All losses of collections of tickets must be dealt with in accordance with the provisions of this part.
Accounting by agents settlement
1514 - Subject to F.R.1515,a Tax collecting agent must, on or before Acco the 31st of March in each financial year, account to the Tax-collector by A for the value of all Tax tickets issued to him. If he accounts in cash or settl returned tickets issued to him. If he accounts in cash or returned tickets for the Tax value of all Tax tickets issued to him by the Tax collecting authority, no further action under this chapter is required.Attention is drawn to the requirements of F.R. 1028-1029.
Settlement after end of financial year
1515-If a Tax collector considers that collection can still be effected Sett by a Tax collecting agent after 31st March in any financial year,he afte may, subject to the approval of the Director of the Board of Internal fina Revenue,extend to any date not later than 31st September of the next year financial year,the date on which the agent must finally account for the value of all Tax tickets issued to him. In suci. circumstances the tickets must be withdrawn and replaced (see F.R.1028-1029).
Agents failure to make settlement
1516-If by the 31st of March of such subsequent date as may be agreed by the Tax-collector under F.R.1515,a Tax collecting agent Age fails to account for the value of all Tax tickets issued to him, then, failu subject to F.R.s 1517 and 1518, the following procedure will be mak adopted: settl
A. Action by Assessment Authority-
1) Immediately commence proceedings against the agent for embezzlement;
2) Complete Parts I and III of A.T.F.42 (in triplicate) and submit to the Chairman of the Board of Internal Revenue;
3) Submit a final report to the Chairman together with a copy of the court judgment;
Pursue the recovery of any amount not accounted for by all due process of law.
B. Action by the Chairman of Board of Internal Revenue-B. Part II of Form A.T.F.42 and submit to theComplete Accountant-General.
C.Action by the Accountant-General-
1)as soon as he receives initial notification of the loss or shortage,Auditor-General;
2) initiate the necessary accounting action;
3) take immediate steps to correct any procedural weaknesses or errors that have become apparent.
D. Action by the Permanent Secretary, Ministry of Finance-Seek the comments of the Auditor-General on his proposed recommendations and submit them to the Commissioner of Finance; ensure that the Commissioner's decision is implemented.
Alleged loss of tax money.
1517-If a Tax collecting-agent alleges that he has lost, through theft or other mishap, any tax moneys collected by him,the Tax-collector will immediately instruct the agent to lodge a report with the Police and report the alleged loss to the Chairman, Board of Internal Revenue.If upon receipt of the Police report it appears to the Tax-collector that a loss of funds has taken place the procedure set out in 1516 (2), B, C and D will be followed. If the loss is not written off,the agent remains responsible for the value of all tax moneys collected by him and the Tax-collector will proceed to recover any amount not accounted for by all due process of law.
Alleged loss of tickets
1518-If a Tax collecting agent alleges that he has lost,through theft of tickets.Alleged loss or other mishap, any Tax tickets issued to him, the Tax-colector will immediately-
a) instruct the agent to lodge a report with the Police;
b) issue fresh tickets to the agent for collection;
c) report the alleged loss to the Chairman of the Board of Internal Revenue (stating the serial number of the tickets involved);
d) in due course submit a final report to the Chairman.
Loss of tickets without loss of revenue
1519-If an investigation made under F.R.1518 shows that a loss of apply could not have occured the provisions of F.R.1026 will apply
Loss of tickets with loss of revenue
1520-If an investigation made under F.R.1518 shows that a loss of re enue could possibly have occurred, the Tax-collector will proceed to determine the amount of loss and the provision of F.R.1517,as the case may be,will apply.
Loss of pool betting receipts
1521-Where there is a loss of pool betting receipts the provisions of betting Loss of pool F.R.1518 will apply.
1522 - The Public Service Commission or Permanent Secretary or Head of Non-Ministerial Department having delegated authority may commence and where commenced may continue disciplinary action against any person in the Public Service of Abia State for any act of commission or omission whether or not -
a) criminal proceedings have been instituted against such person for such act of commission or omission in any court in Nigeria or elsewhere or about to be instituted or are contemplated;
b) the grounds upon which any criminal charge is based or is to be based is substantially the same as that upon which the disciplinary action was or is to be instituted.
Power to punish following an acquittal
1523- Notwithstanding that a public officer has, in a court of law, been acquitted on a criminal charge or given a discharge, whether amounting to an acquittal or not, he may be dismissed or otherwise punished in accordance with the disciplinary proceedings set out in section 3 of Edict No. 7 1977 (Public Service Commission Disciplinary Proceedings Special Provisions) if the Commission is satisfied.
a) that his conduct in the matter has been in any respect blameworthy;or
b) that it is the interest of the Ministry or Department where he is employed and generally in the interest of the Public Service as a whole that he be so punished.
Part D-Loss of Funds-Accounting Procedure
Account to be charged
1524-On the discovery of a loss of funds the amount of the loss will Account to normally be charged to a Non-personal Advance Account of the be charged.Ministry or Uni. concerned pending the investigation of the loss.
1525-The type of the accounting entry required to charge a loss to the advance account will depend upon the nature of the loss,and the date of the original transactions when payments are involved,thus:
a) Loss of Cash
Charge the loss to the advance account under the authority of a payment voucher.
b)Fraudulent or overpayments made within and discovered within the current financial year.
Transfer the amount by adjustment voucher to: Dr Advance Account.
c) Fraudulent payments made in a previous financial year charge against the Consolidated Revenue Fund, or the Development Fund.
Transfer the amount by adjustment voucher to: Dr Advance Account
d) Fraudulent Payments made in a previous Financial year charged against a Public Fund other than at (c) above.
Transfer the amount by adjustment voucher to: Dr Advance Account
e) Overpayments, not involving fraud, made in a previous financial year against the Consolidated Revenue Fund or The Development Fund.
No adjustment is necessary, but the abandonment of the recovery must be Registered by the Accountant-General as a loss.
f) Abandonment of the recovery of a bicycle advance issued initially from Recurrent Expenditure
No adjustment is necessary, but the abandonment of the recovery must be Registered by the Accountant-General As a loss.
g) Abandonment of the recovery of an amount or advance charged initially to an advance account.
Transfer the amount by adjustment voucher when the Necessary funds have been made available to, and when authority has been given for the abandonment to Dr. Loss of Funds vote of the ministry.
h) Abandonement of the recovery of unpaid revenue
No adjustment is Necessary but the abandonement of the claim must be registered by the Accountant - General as a loss.
Officer to initiate accounting entry
1526- The Sub-Accounting Officer or the Officer Controlling Officer to Expenditure concerned in a loss will initiate the accounting entries initiate required under Financial Regulation 1523, and will ensure that an accounting additional copy of the accounting document is forwarded to the entry. Accountant-General attached to the report on the loss on Treasury Form 146. If the adjustment for a loss originates wthin a self-accounting Ministry, the adjustment will be passed through the accounts of the Ministry concerned but, in the case of a non-self-accounting unit the full set of the adjustment voucher must be forwarded to the Accountant-General for incorporation into the accounts.
Recovery of the loss
1527-The recovery of an amount of a loss, whether in part or whole, by physical recovery or by repayment will be credited to the Non-personal Advance Account initially charged under Financial Regulation 1522, but a recovery of a loss received subsequent to the writing off thereof, will be credited directly to the Miscellaneous Head of the current Revenue Estimates, under sub-head "Sundries".
Surcharge: Classification of receipts
1528- The receipt of a surcharge, whether in whole, or by Surcharge installment, will be credited to the Miscellaneous Revenue Head of Classific the current Estimates, under sub-head"Sundries".
losses written of: Classification of
1529-Loss when written off will be charged to the loss of funds sub - Losses head of the current Head of Expenditure of the Ministry or Unit concerned.
Application for funds to cover losses.
1530 - When funds under the loss of funds sub-head of Expenditure insufficient to meet the amount of a loss to be written off, the accounting officer concerned must apply for additional funds firstly then, if savings are not available, by application for a supplementary provision under Financial Regulation 410.
CHAPTER 16
DEPOSITS
Acceptang of deposit
1601- Deposits may not be accepted except in accordance with the current classification list issued by the Accountant-General.Jnclaimed salares,wages,pensions, sums due to merchants or other payments may not be placed on deposit. A deposit account may not at any time be used as a means of transferring payments or remitting money.Moneys may not be received from members of the public or Local Government bodies merely for safe keeping. No type of revenue may be placed on deposit without the specific approval of the Accountant-General. Under no circumstances may the unexpended balance of voted expenditure be transferrd to a deposit account.
1602- A deposit register will be maintained by all Sub-Treasurers Deposit receiving deposits; the Register will be ruled off each year on 30 th June and 31st December and all outstanding deposits brought forward registers.to a new page. The list of outstanding deposits will be forwarded to the Accountant-General.
Receipt Vouchers
1603 - Receipt vouchers relating to deposits should clearly indicate the name of the depositor, the nature of the transaction and the item on Receipt the classification list which justifies the deposit vouchers.
1604-Partial withdrawals are not permitted from any sum placed on deposit, the whole amount mnust be withdrawn and the Treasury Receipt surrendered, the receipt voucher particulars must be shown on s from Withdrawi the withdrawal voucher. Exceptions to this rule may be notified by the deposits.Accountant-General where special circumstances warrant them, and in this respect the original receipt should be suitably endorsed by the paying Sub-Treasurer before returning the receipt to the depositor.
1605 - If for any reason the Treasury Receipt cannot be surrendered, a Withdraw deposit may not be withdrawn without the specific permission of the Accountant-General.
1606-A deposit may be withdrawn at a station other than that at which it was received only on a payment voucher signed at the Sub- s at other Withdra Treasury which received the deposit.The checked and passed voucher stations.will be forwarded to the paving Sub-Treasurer who will, after payment,return a copy of the paid voucher tereceiving officer.
Deposits unclaimed after two or five years.
1607 - Moneys that have been on deposit for more than two year General.it ies nli el ta e alaimed, he may recommend its transter a revenue; he will so unclaimed for five years. Deposits made by the Administrator-General Law,1961, are exempt from the provisions of this Financial Regulation.
Minor deposits.
1608-Minor temporary deposits should be classified to the Station Deposit Account. No deposit in excess of N200 may be accepted for The account may not be used as a repository for receipts whose correct classification is not known, such receipt should be reported to the Accountant-General, who will decide upon the correct classification.
1609 - Deposits on behalf of Nigerian students abroad may be accepted only in respect of Government sponsored students. Sub- behalf of Deposits on Treasurers may not, therefore,accept deposits unless the depositor Nigerian produces Form B II authenticated by the Students Advisory students Committee, or exceptionally, on specific instructions from the abroad.Accountant-General.Withdrawals may be made only by an approved liaison officer and receipts for such deposits must be clearly endorsed "withdrawable by the.. ............ Only". Full details of deposits accepted must be sent immediately to the Accountant-General.
Deposits:
Co-operative Societies in liquidation.
1610-Deposits in respect of Co-operative or Co-operative Marketing Societies in the process of liquidation may be accepted by Sub-Treasurers at stations where there are no commercial or co-operative banks. In the case of-
a) Co-operative Societies, withdrawals must be for full amount deposited;
b)must be made in round sums (e.g. N100),but more than one deposit may be withdrawn on the same payment voucher.