Auditor-General Queries ₦33.75bn Transfers to Unverified Accounts

The Federal Government could not provide sufficient evidence to auditors that N33.75bn in cash transfers meant for more than 3.29 million vulnerable households reached genuine beneficiaries, the Auditor-General for the Federation has said.

This was contained in the Auditor-General for the Federation’s 2024 Annual Report on Non-Compliance/Internal Control Weaknesses in Ministries, Departments and Agencies of the Federal Government

The report, which reviewed transactions at the National Cash Transfer Office in Abuja for the 2023 financial year, raised eight audit queries involving billions of naira and identified weaknesses in the office’s internal control system.

According to the report, electronic transfers totalling N33.751bn were made to 3,295,207 households and beneficiaries drawn from the National Social Register and enrolled on the National Beneficiary Register across 35 states in 2023.

However, the auditors said the paid vouchers did not contain the full details of the beneficiaries, while the Remita statement required to reconcile those who received payments with persons listed on the NSR and NBR was not presented for examination.

The report said, “Electronic transfers amounting to N33,751,080,000.00 were made to 3,295,207 households/beneficiaries that have been mined to the NSR and enrolled on the NBR in 35 states for the year 2023.

“The paid vouchers for the payments above did not contain the full details of the beneficiaries.

“REMITA statement showing record of the beneficiaries paid as against those listed on the NSR and NBR was not presented for audit. This hindered the authentication of the payments and made it difficult to ascertain whether the beneficiaries who received the funds were genuine.”

It added that attempts by the auditors to obtain the payment records were unsuccessful.

“All efforts to obtain access to the REMITA statement were obstructed and denied by NTCO accounts staff, thereby frustrating the audit process,” the report stated.

The Auditor-General identified possible loss of public funds and payments to ineligible or fictitious persons as risks arising from the transaction.

It recommended that the National Programme Manager account to the Public Accounts Committees of the National Assembly for the N33.75bn and provide evidence that the beneficiaries received the money.

The report also recommended recovery and remittance of the amount to the Treasury if it could not be satisfactorily accounted for.

The Auditor-General further noted that the management of the National Cash Transfer Office failed to respond to the audit query.

Beyond the cash transfers, the audit queried N36.74bn in payments made without prepayment audit.

It said 215 payment vouchers relating to SS, IDA and output-based transactions in December 2023, amounting to N36.744bn, were raised and paid without internal audit checks or prepayment audit.

“None of the paid vouchers were pre-audited or checked by the Internal Audit as required by extant regulations,” the report said.

Instead, the Internal Audit Unit carried out post-payment checks on the vouchers. The auditors identified possible misapplication and diversion of public funds as risks and recommended that the N36.74bn be accounted for before the National Assembly.

In another query, the report said the NTCO made 101 payments totalling N4.616bn from its S&S/IDA Cash Book for various expenditures but failed to present the paid vouchers for audit examination.

The Auditor-General identified the risks as misapplication and diversion of public funds and recommended that the amount be accounted for or recovered and remitted to the Treasury.

The audit also raised concerns over N350.18m in unsubstantiated funds disbursed to state coordinators.

According to the report, 32 payments totalling N3.09bn were made to various states for the enrolment of unbanked beneficiaries. Documents covering N2.74bn disbursed to 34 states were made available for examination, leaving N350.18m unaccounted for.

The auditors further found that the vouchers presented were vague and did not specify how the funds were utilised.

Supporting documents, including beneficiary lists, photographs of activities, signed attendance registers, enrolment reports and acknowledgements from individuals who received payments, were also not attached to the vouchers.

The Auditor-General recommended that the N350.18m be recovered and remitted to the Treasury if it remained unaccounted for.

Another N393.71m in unused enrolment funds returned by nine State Cash Transfer Units also came under scrutiny.

The NTCO told the auditors that the states were unable to conduct enrolment exercises because of insecurity, disasters and other factors, and consequently returned the money to the Treasury in 2023.

However, the audit said the NTCO did not provide documents showing that the N393.71m was credited to the Consolidated Revenue Fund.