Lagos State Government The Report of the Accountant General & Financial Statements For the Year Ended 31st December 2016 Lagos State Government Financial Statements For the year ended 31st December 2016 Table of Contents Page Governance, professional advisers and registered office 1 - 2 Report of the Accountant General 3 - 6 The Responsibilities of the Accountant General 7 Report of the State Auditor General 8 Financial Statements Statement of Financial Performance 9 Statement of Financial Position 10 Statement of Changes in Net Assets 11 Statement of Cash Flows 12 Statement of Comparison of Budget and Actual amount 13 Notes to the Financial Statements 14 - 35 Schedules to the Financial Statements Schedules of Treasury Banks 36 - 38 Schedules of Cash held in banks by MDAs 39 - 44 Schedules of Property, Plant and Equipments 45 Schedules of Property, Plant and Equipments and Depreciations 46 Statement of the Personnel Cost 47 - 48 Statement of Consolidated Revenue Fund Charges 49 Staff Cost- Pension Defined Contribution Plan 49 Statement of Overhead Cost 50 - 51 Statement of Grants and Contributions 52 Statement of Subvention to Parastatals [Overhead] 53 - 54 Statement of Capital Expenditure 55 - 56 Schedule of unquoted investment 57 Schedule of quoted investment 58 Schedule of Domestic (Commercial) loan obligations 59 Schedule of Multilateral loan obligations 60 Debt Repayment Trust Fund [Bond Trustee and Foreign Loan Accounts] 61 Schedule of Public Funds Scholarship and Bursary Funds 62 Staff Housing Loan Fund 63 Staff Vehicle Refurbishment Revolving Fund 64 TEPO Housing and Car Refurbishment Loan Funds 65 Schedule Infrastructure Facilities Listed In The Financial Statements 66 - 94 Lagos State Government Financial Statements For the year ended 31st December 2016 Governance, Professional Advisers and Registered Office Governance His Excellency, Mr. Akinwunmi Ambode - Governor Dr. (Mrs.) Idiat Oluranti Adebule - Deputy Governor Executive Council Mr. Tunji Bello - Secretary to State Government Mr. Samuel Ojo - Chief of Staff Mrs. Olabowale Ademola - Head of Service Mr. Gbolahan Lawal - Commissioner, Housing Dr. Jide Idris - Commissioner, Health Mr. Seye Oladejo - Commissioner, Special Duties Mr. Oluwatoyin Suarau - Commissioner, Agriculture Mr. Rotimi Ogunleye - Commissioner, Commerce, Industry and Cooperatives Mr. Akinyemi Ashade - Commissioner, Finance/Economic Planning & Budget Dr. Babatunde Adejare - Commissioner, Environment Mr. Olawale Oluwo - Commissioner, Energy and Mineral Resources Dr. Benson Akintola - Commissioner, Establishment, Training and Pensions Dr. Abdul Hakeem- Abdul Lateef - Commissioner, Home Affairs Mr. Steve Ayorinde - Commissioner, Information and Strategy Mr. Adeniji Kazeem - Commissioner, Justice / Attorney General Mr. Muslim Folami - Commissioner, Local Government and Community Affairs TPL Wasiu Anifowose - Commissioner, Physical Planning and Urban Development Mr. Olufemi Odubiyi - Commissioner, Science and Technology Engr. Adebowale Akinsanya - Commissioner, Waterfront Infrastructure Development Mr. Babatunde Durosimi-Etti - Commissioner, Wealth Creation and Employment Hon. Lola Akande - Commissioner, Women Affairs and Poverty Alleviation Mrs. Uzamat Akinbile Yusuf - Commissioner, Youth and Social Development Hon. Adebimpe Akinsola - Special Adviser/Acting Commissioner, Tourism, Arts/Culture Prince Anofi Elegushi - Special Adviser/Acting Commissioner, Transportation Mr. Agboola Dabiri - Special Adviser,Central Business District Mr. Kehinde Joseph - Special Adviser, Civic Engagement Hon. Adeyemi Olabinjo - Special Adviser, Commerce, Industry & Cooperatives Mr. Kehinde Bamigbetan - Special Adviser, Community and Communications Mr. Obafela Bank-Olemoh - Special Adviser, Education Mr. Babatunde Hunpe - Special Adviser, Environment Mrs. Aramide Giwanson - Special Adviser, Housing Professor Ademola Abass - Special Adviser, Overseas Affairs and Investment Dr. Olufemi Onanuga - Special Adviser, Primary Healthcare Mr. Ayodeji Tinubu - Special Adviser, Sports and Chairman Lagos State Sports Commission Mrs. Yetunde Onabule - Special Adviser, Urban Development Registered Office Address The Secretariat, Obafemi Awolowo Way, Ikeja, Lagos State, Nigeria. Email:[email protected] 1 Lagos State Government Financial Statements For the year ended 31st December 2016 Governance, Professional Advisers and Registered Office State Auditor General Mrs. Helen M. Deile Office of the State Auditor-General Block 1, 6th floor The Secretariat Alausa, Ikeja Principal Bankers Access Bank Plc Citibank Diamond Bank Plc Ecobank Nigeria Fidelity Bank Plc First Bank Nigeria Plc First City Monument Bank Guaranty Trust Bank Plc. Heritage Bank Plc Keystone Bank Skye Bank Plc Stanbic IBTC Bank Plc Sterling Bank of Nigeria Plc. Union Bank of Nigeria Plc United Bank for Africa Plc Unity Bank Plc Wema Bank Plc Zenith Bank Plc 2 Lagos State Government Financial Statements For the year ended 31 December 2016 Report of the Accountant General I am delighted to present the first transitional accrual IPSAS Financial Statements of the Lagos State Government ("LASG" or "the State") for the Year ended 31 December 2016 together with the Auditor’s Report which discloses the financial performance and the state of affairs of the LASG. The Financial Statements of LASG for the year ended 31 December 2016 have been prepared on an accrual basis in line with the requirements of International Public Sector Accounting Standards 33 (IPSAS 33) ‘First-time adoption of accrual basis IPSASs’. LASG has elected to adopt the accrual-based International Public Sector Accounting Standards with effect from 1 January 2016 and has committed to its full adoption by 31 December 2018. The implementation of accrual accounting by LASG will assist in the assessment of the financial performance of the State. This is because the Financial Statements reflect all expenses whether paid or not and all incomes whether received or outstanding. Furthermore, it provides useful information on the ability of income streams to adequately cover short and long term liabilities as well as better information on government spending which in turn drives better utilization of government resources. In the newly adopted accrual basis of accounting, financial decisions can more easily be made through an analysis of, the State’s assets and liabilities, its funding requirements, public debt obligations, and investment decisions including proper planning for timely maintenance and replacement of assets. Implementing accrual IPSAS makes the State’s Financial Statements comparable to Financial Statements prepared by many other Public Sector Entities around the world. In many respects, the year ended 2016 was a challenging year that impacted individuals, businesses and the State Governments. Nigeria was thrust into an economic recession which led to increases in inflation and interest rates which had overall consequences on the macroeconomic and business environment. This was made even more evident with the strengthening US Dollar against the Naira. The 55% devaluation of the Naira against the United States Dollar led to a significant loss in foreign exchange transactions resulting in a drop in our bottom line. Despite these adverse economic conditions, the State had a relatively strong top line as a result of efficiencies in Internally Generated Revenue (IGR) collection. These challenging times led to the slowing down of foreign investments into the Nigerian economy directly impacting the ability to significantly raise or sustain IGR levels from the previous year. Moreover, the State has been able to find ways to mitigate rising costs. It has been able to stay well below its budget limits in meeting its obligations for the year. This is partly due to the strong financial controls on expenditure which was 28% lower than budgeted amounts. These financial controls include, budgeting that focuses on the strategic intent of the State rather than an incremental system of budgeting, appropriate approval for expenditure and the implementation of State-run Treasury Single Account (TSA) system. With the requirement to separately present a Statement of Comparison of Budget against Actual, IPSAS ensures better presentation of the Government’s performance against its annual budget. In managing resources effectively, LASG has been able to deliver on its mandate of improved security, employment and the provision of key infrastructural facilities. LASG remains focused on the prosperity of its citizens and has committed to achieving this through a tripod of security, job creation and infrastructure development. It is the conviction of the State Government that a safer Lagos will attract more investments from local and foreign investors and when investments are domiciled in the State, definitely, more job opportunities will surface. Accordingly, greater engagement and empowerment of citizens, thoughtful investments in expertise, skill building, and closer collaboration with the private and social sectors are central principles of this administration. In line with this position, the first leg of the ‘tripod’ centered on security as evidenced in the Light up Lagos project and the investment in security equipment worth over N4.7billion. The project also involves the provision of an additional 3GW of electric power expected to reduce the cost of doing business and improve community access to electricity. 3 The second leg is rooted in job creation, and in keeping with the State Government’s commitment to reducing unemployment