Lagos State Government 0 The Report of the Accountant General & Financial1179978509 Statements For the Year Ended 31st December 2017 Lagos State Government Financial Statements For the year ended 31st December 2017 Table of Contents Page Governance, Professional Advisers and Registered Office 2 Report of the Accountant General 4 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 Schedules to the Financial Statements Schedule of Treasury Banks 44 Schedule of Cash held in Banks by MDAs 47 Schedule of Property, Plant and Equipment 53 Schedule of Depreciation of Property, Plant and Equipment 54 Schedule of Additions to Infrastructural Assets 56 Schedule of Valuation of Other Classes of Assets 58 Schedule of Additions to Other Classes of Assets 60 Statement of the Personnel Cost 62 Statement of Consolidated Revenue Fund Charges 64 Statement of Overhead Cost 65 Statement of Grants and Contributions 67 Statement of Subvention to Parastatals [Overhead] 68 Statement of Capital Expenditure 69 Schedule of Unquoted Investment 71 Schedule of Quoted Investment 72 Schedule of Domestic (Commercial) Loan Obligations 73 Schedule of Multilateral Loan Obligations 74 Debt Repayment Trust Fund [Bond Trustee and Foreign Loan Accounts] 75 Schedule of Public Funds Scholarship and Bursary Funds 76 Staff Housing Loan Fund 77 Staff Vehicle Refurbishment Revolving Fund 78 TEPO Housing and Car Refurbishment Loan Funds 79 1 Lagos State Government Financial Statements For the year ended 31st December 2017 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 Olukunle Ojo - Chief of Staff Mrs. Folasade Sidikat Adesoye - Head of Service Mr. Oluwatoyin Suarau - Commissioner, Agriculture Barr. (Mrs) Olayinka Oladunjoye - Commissioner, Commerce, Industry and Cooperatives Mr. Segun Banjo - Commissioner, Economic Planning & Budget Mr. Olawale Wasiu Oluwo - Commissioner, Energy and Mineral Resources Mr. Babatunde Durosimi-Etti - Commissioner, Environment Dr. Benson Akintola Oke - Commissioner, Establishment, Training and Pensions Mr. Akinyemi Ashade - Commissioner, Finance Dr. OlaJide Idris - Commissioner, Health Dr. Abdul Hakeem- Abdul Lateef - Commissioner, Home Affairs Mr. Gbolahan Lawal - Commissioner, Housing Mr. Kehinde Bamigbetan - Commissioner, Information and Strategy Mr. Mosediq Adeniji Kazeem - Commissioner, Justice / Attorney General Mr. Muslim Olohuntele Folami - Commissioner, Local Government and Community Affairs Mr. Rotimi Ogunleye - Commissioner, Physical Planning and Urban Development Mr Hakeem Fahm - Commissioner, Science and Technology Mr. Oluseye Oladejo - Commissioner, Special Duties & Inter-Governmental Relation Mr. Steve Ayorinde - Commissioner, Tourism, Arts & Culture Mr. Ladi Lawanson - Commissioner, Transportation Dr. Babatunde S. Adejare - Commissioner, Waterfront Infrastructure Development Mrs. Uzamat Akinbile Yusuf - Commissioner, Wealth Creation and Employment Engr. Adebowale Akinsanya - Commissioner, Works & Infrastructure Hon. Lola Akande - Commissioner, Women Affairs and Poverty Alleviation Mr. Agboola Dabiri - Commissioner, Youth and Social Development Mrs. Aramide Giwanson - Special Adviser, Arts & Culture Prince Anofi Elegushi - Special Adviser, Central Business District Mr. Ayodeji Tinubu - Special Adviser, Commerce, Industry & Cooperatives Mr. Akeem O. Sulaimon - Special Adviser, Community and Communications Mr. Benjamin Olabinjo - Special Adviser, Civic Engagement Mr. Obafela Bank-Olemoh - Special Adviser, Education Mr. Babatunde Hunpe - Special Adviser, Environment Mr Okanlawon Sanni - Special Adviser, Food Security Mr. Kehinde Joseph - Special Adviser, Housing Mr. Idowu Ajanaku - Special Adviser Information and Strategy Professor Ademola Abass - Special Adviser, Overseas Affairs and Investment Dr. Olufemi Onanuga - Special Adviser, Primary Healthcare Mrs. Yetunde Onabule - Special Adviser, Urban Development Registered Office Address The Secretariat, Obafemi Awolowo Way, Ikeja, Lagos State, Nigeria. Email:[email protected] 2 Lagos State Government Financial Statements For the year ended 31st December 2017 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 Providus 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 3 Lagos State Government Financial Statements For the year ended 31st December 2017 REPORT OF THE ACCOUNTANT GENERAL I am delighted to present the Second Transitional Accrual IPSAS Financial Statements of Lagos State Government (“LASG” or “the State” or “State Government”) for the year ended 31 December 2017 together with the State Auditor General’s Report. This Report discloses the Financial Performance and State of Affairs of the LASG. The Financial Statements of LASG for the year ended 31 December 2017 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 IPSAS’. 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 adoption of IPSAS has further enhanced the State Government’s transparency and accountability in financial reporting. This is not only evident in the financial ratings, but also in the number of request for partnership the Government has received on infrastructure projects and service delivery since the First Transitional Accrual IPSAS Financial Statements of the State was published. For instance, despite the unfavourable economic situation, the State has continued to maintain a positive rating. In the latest Fitch ratings issued in February 2018, Fitch affirmed the State’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+' with Negative Outlook and Short-Term Foreign Currency IDR at 'B'. Lagos being a subnational is affected by the rating of the Sovereign, Nigeria. The 2017 fiscal year started with some macro-economic problems, which included economic recession and high inflation rate. Following the turbulent economic tide of the year 2016 which led to Nigeria sliding into recession, the country bounced back to positive growth in the second quarter of 2017. By December 2017, inflation rate had reduced to 16.5% from 18.72%. There was annual growth rate in real GDP of 0.47% compared to -0.22% in 2016, with the non-oil sector being one of the major economic booster. The improvement in Nigeria’s economic fortunes later in the year 2017, impacted LASG’s income from statutory allocation, positively. As one of the economically viable States in the country, with major reliance on Internally Generated Revenue (IGR), LASG has consistently demonstrated foresight for revenue generation. The impressive performance recorded by the State Government in 2017 is not unconnected with the effective IGR collection system put in place, hence, reducing the impact of the economic recession experienced in the first half of the year. The year ended 31 December 2017 witnessed the celebration of the Golden Jubilee of Lagos State. The State Government marked the event with the commissioning of some landmark projects. Specifically, on May 16th, His Excellency, Governor Akinwunmi Ambode commissioned at Ojodu Berger, a N5.8billion project which included the 98 metres illuminated pedestrian bridge (the longest in Nigeria) and 150 metres length laybys and slip roads. Also, May 17th saw the commissioning of the Abule-egba and Ajah Jubilee flyover bridges at costs of N7.2billion and N11.8billion respectively. Every part of the State felt the wind of celebration, as completed projects were commissioned across the State. In line with LASG’s focus on the welfare of Lagosians and development of the State, other projects like the Bus Reform Project, Low Energy Design (LED) Manufacturing Plant, Rice Equipment Mill, Pen Cinema Fly-over Bridge, upgrade of sports facilities, Primary Health Care centres, parks and gardens including economic empowerment programs were birthed in 2017. On-going upgrade of the Agege and Onikan Stadia has so far cost N1.7billion while the Primary Healthcare Centres across the State, have been renovated at an amount of N335million. The Lagos Digital Project was also initiated to increase access to knowledge and run an inclusive educational system. The sum of N4.3billion was spent in 2017. During the Year 2017, His Excellency, the Governor, in recognition of the changing role of Accounts Officers Statewide, approved their re-designation to Finance and Accounts Officers thus facilitating capacity building in different areas of Public Finance Management. This has improved the level of awareness and competence among accountants