Financial Statements 2 His Excellency Professor Babagana Mni, Fnse Executiveumara Governor Zulum, Borno St Ate
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BORNO STATE GOVERNMENT OF NIGERIA FINANCIAL STATEMENTS 2 HIS EXCELLENCY PROFESSOR BABAGANA MNI, FNSE EXECUTIVEUMARA GOVERNOR ZULUM, BORNO ST ATE 2 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 3 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 HIS EXCELLENCY UMAR USMAN KADAFUR DEPUTY GOVERNOR, BORNO STATE 4 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 ALHAJI HONOURABLEADAMU LACOMMISIONERWAN MINISTRY OF FINANCE, BUDGET AND PLANNING 5 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 HAJIYA MARYAM SHEHU FCNA PERMANENT SECRETARY MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT 6 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 ALHAJI UMAR ALI KA’ANA FCNA ACCOUNTANT GENERAL, BORNO STATE 7 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 TREASURY MANAGEMENT TEAM BUNU BUKAR MALLIM AUDU MARAMA, ACCA, FICPDM, MIICA DIRECTOR, EXPENDITURE CONTROL DIRECTOR, COMPUTER & FINAL ACCOUNTS BABA BURA USMAN, FCNA DIRECTOR, TREASURY OPERATIONS ABBAS MOHAMMED, CNA SHEHU YAKUBU GANA MOHAMMED IBRAHIM KAUMI ADAMU I. BAKO Bsc, CEH, CHFI DIRECTOR, INSPECTORATE DEPUTY DIRECT, FINAL ACCOUNT DEPUTY DIRECTOR, COMPUTER DIRECTOR, STATE SALARIES & INTERNAL AUDIT 8 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 TABLE OF CONTENTS 1. Profiles 01 2. About Borno State 10 3. Responsibility for the Financial Statements 11 4. Accounting Policies 12 5. Statement of responsibilities of the auditor general 17 6. Statement of opinion of the auditor general for the year ended 31st December, 2020 18 8. Statement By The Accountant General 20 9. Financial Highlights For The 2020 Financial Year 21 11. Trial balance for the year ended 31st December, 2020 34 13. Statement No. 1 44 14. Statement No. 2 47 15. Statement No. 3 49 16. Statement No. 4 52 17. Notes to the Financial Statements 53 9 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 ABOUT BORNO Borno State is located at the North- season lasts from June to September suitable for the cultivation of crops such Eastern corner of the country and with an annual rainfall of between as millet, sorghum, rice wheat, occupies an area of 69,436sq km. This 500mm and 1,000 mm. groundnut, cotton maize, sweet makes it one of the largest State in the potatoes, gum Arabic, fruits and Federation in terms of landmass. The As to the people, the State is pluralistic vegetables. Livestock rearing is State shares borders with three (3) in ethnic composition. The major ethnic undertaken all over the State and countries of Niger Republic to the groups include Kanuri, Babur/Bura, constitute over 35% of the National North, Chad Republic to the North and Marghi, Shuwa Arab, Waha, Mandara, Herd being the largest producer in the Cameroon to the East. The State has 27 Ghide, Wula, Fulani, Ngamargu, country and indeed the West African Local Government Areas and a Chibok, Kanakuru and Koyam. Borno Sub Region. The State also possesses population of 2,596,589 as per the 1991 State is also divided into Emirates and one of the richest fishing grounds in provisional census figure. are headed by Shehu and Emirs Nigeria. These include Lake Chad and respectively while the Borno State sundry rivers of Yobe, Kumadugu, The Local Government Areas of the Council of Emirs is headed by his Royal Yadzaram, Alau Dam, Hawul, Gongola State are: Abadam, Askira Uba, Bama, Highness, The Shehu of Borno. and Ndivan. In view of this the State has Bayo, Biu, Chibok, Damboa, Dikwa, been the major supplier of preserved Gubio, Guzamala, Gwoza, Hawul, Jere, Borno State which is located within the fish to other parts of the country. Kaga, Kala-Balge, Konduga, Kukawa, Lake Chad plains to the Biu Plateau is Kwaya Kusar, Mafa, Magumari, fertile for agricultural activities. In addition, the State is endowed with Maiduguri Metropolitan Council, Consequently, agriculture has been the mineral resources which when fully Marte, Mobbar, Monguno, Ngala, main pre-occupation of its people as tapped, can sustain the economy of the Nganzai and Shani. over 80% of the population is engaged State, these include potash, soda ash, in crop cultivation, animal husbandry, trona, glass, ornamental limestone, From the point of view of climate, cattle rearing, fishing, trade and quarts, gypsum, diatomite, feldspar, Borno State is usually hot and dry for commerce. The State therefore has over alum, kaolin and manganese which are most part of the year and the rainy 10,555,000 hectares of cultivable land available in commercial quantities. 10 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Financial Statements for the financial year 2020 have been prepared in accordance with the provisions of the Financial (Control and Management) Act 1958 Cap 144 LFN as amended. The Financial Statements were prepared on the bases of Nigerian Format of Cash Basis International Public Sector Accounting Standards (IPSAS) and they comply with the Generally Accepted Accounting Principles (GAAP). As the Accountant-General of the State, I am the Chief Accounting Officer of the receipts and payments of all funds. I took appropriate steps to fulfill my financial reporting responsibilities. I am responsible for establishing and maintaining adequate system of internal controls and that the system provides adequate and reasonable assurances that transactions are appropriately recorded and are within statutory authority. I ensure that proper accounting records were maintained and that judgments and estimates were reasonable and relevant to the content of the financial statements. I also ensure and take responsibility for the integrity and reliability of the Financial Statements. I confirm that the Financial Statements reflect the true financial position and operations of the Borno State Government as at December 31, 2020. The Accountant-General accepts responsibility for the integrity of this Financial Statements and their compliance with the Finance (Control and Management) Act 1958 as amended, and the International Public Sector Accounting Standards(IPSAS). Umar Ali Ka’ana, FCNA Accountant-General Borno State, Nigeria 11 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES v. Cash flows are inflows and outflows of cash.Cash flows 1.0 General Information exclude movements between items that constitute cash as these components are part of the cash management of the Borno State Financial Statements for the year ended government rather than increases or decreases in the cash December, 2020 were authorised for issue by the position controlled by government. Accountant General on 18th June.2021. The activities of the remains the provision of Economic vi. Cash receipts are cash inflows. (Basic Infrastructure, housing, agricultural and transportation, etc), Social (Educational, health, water vii. Cash payments are cash outflows. supply, recreation and religious, etc) and justice (law and order) services. viii. Cash Controlled by Borno State Government: Cash is The State Secretariate is located in Maiduguri, Borno deemed to be controlled by Borno State Government when State. the government can freely use the available cash for the achievement of its objectives or enjoy benefit from the cash, 2.0 Accounting Terminologies / Definitions and can also exclude or regulate the access of others to that I. Accounting policies are the specific principles, bases, benefit. Cash collected by, or appropriated or granted to the conventions, rules and practices adopted by the Borno government which the government can freely use to fund its State Government in preparing and presenting Financial operating objectives, such as acquiring of capital assets or Statements. repaying its debt is controlled by the government. ii. Cash: Cash comprises cash in hand, demand deposits in ix. Government Business Enterprise means a department or financial institutions and cash equivalents. agency that has all the following characteristics: a. Is an entity with the power to contract in its own name; iii. Cash equivalents are short-term, highly liquid b. Has been assigned the financial and operational investments that are readily convertible to known amounts authority to carry on a Business; of cash and which are subject to an insignificant risk of c. Sells goods and services, in the normal course of its changes in value. business, to other MDAs and the general public at a profit or full cost recovery; iv. Cash basis means a basis of accounting that recognizes d. Is not reliant on continuing government funding or transactions and other events only when cash is received subvention to remain a going concern(other than or paid. purchases of outputs at arm's length); and e. Is controlled by a public sector management or the 12 BORNO STATE GOVERNMENT OF NIGERIAFINANCIALSTATEMENTS 2 ACCOUNTING POLICIES government. Balance Sheet); x. Notes to the GPFS shall include narrative descriptions or III. Statement 3- Statement of Consolidated Revenue more detailed Schedules or analyses of amounts shown on Fund: Statement of Recurrent Financial the face of the GPFS, as well as additional information. Performance (also known as Profit & Loss Account); IV. Statement 4- Statement of Capital Development 3.0 Financial Accounting and Reporting Framework Fund: Statement of Capital Financial Performance The financial reporting framework of Borno State (also known as Capital Expenditure); Government is anchored on the following: V. Notes to the Accounts: Additional disclosures to - International Public Sector Accounting Standards (IPSAS)