REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE TABLE OF CONTENT 3.4 Expenditure Budget Analysis 26 Title Page i 3.5 Actual Expenditure Budget Almanac ii-vi Performance Analysis 27 Table Content vii 3.6 Behaviour of the Actual Recurrent VS Acknowledgement viii Capital Expenditure 2018 28 3.7 Internally Generated Revenue (IGR) Chapter One General 28 1.1 Introduction 1 3.8 Analysis of IGR by MDAs 2018 31 Chapter Two Chapter Four 2.1 Submission of Financial Statement 4.1 Ministerial Accounts Audit 38 for the year 2018 6 4.2 Accounts and Records Maintained by 2.2 Audit Objectives 7 Boards & Parastatals 47 2.3 Modalities and Approach 9 Chapter Five 2.4 Annual Budget and Estimates 15 5.1 Performance Appraisal of Government 2.5 Audit Queries and Responses 16 Stewardship Summarily 58 2.6 Internal Audit Roles 19 2.7 Compliance with Public Audit Certificate 61 Procurement Rules 20 Responsibility for Financial 2.8 Submissions of Accounts and Statement 63 Records 2018 21 Statement Nos. 1-4 Chapter Three Notes to the Accounts 3.1 Budget Analysis 22 3.2 Recurrent VS Capital Budget (Expenditure) Behaviour 23 3.3 Actual Revenue Budget Performance Analysis 25 REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE ACKNOWLEDGEMENT Bismillahi Rahmanir Rahim The Office of the Auditor-General for Yobe State remain highly indebted to, grateful indeed and sincerely appreciate our Audit Brotherly Governor His Excellency Alh. (Dr.) Ibrahim Gaidam fcna, fnca, fcpa, for supporting us to uplift the capacity and image of Auditing profession and the office of the Auditor-General for Yobe State. Sincerely speaking, our moral is at the highest ebb to attend to our duties and obligations and to support the Government of Yobe State to deliver good governance to the people. My sincere appreciations to the members of the Public Accounts Committee (PAC) under the pragmatic leadership of Hon. Bulama Bukar Gujba and to the entire Hon. Members of the House of Assembly for uplifting the image of Audit roles through the prompt legislative actions taken on the Yobe State Auditor-General’s Annual Reports, particularly the timely conduct of the Public Accounts Committee Sessions to x-ray the Ministries, Departments, Agencies (MDAs) and Public officials engaged in negative attitudes to financial duties/responsibilities. This has greatly necessitated organizations and individuals to live up to expectations in order to avoid being reported for financial misconduct. The Audit view this singular achievement as a significant positive trend for the enhancement of accountability. And to us the Auditors, it is a pride and a drive for moral encouragement. Let me appreciate the contribution of members of staff of the Office of the Auditor-General for the team spirit without which the successes recorded would not have been possible. REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE I am particularly grateful to our ICT Department and its dedicated leader for the total commitment, honesty and unrelenting efforts without which the compilation of this report would have been a tedious task. Let me appreciates my two (2) wives Amina Muhammad for her patience and Fatima Ibrahim Shettima for the moral encouragement, and my children whose valuable private time with me has been constantly committed to the realization of this great task. Thank you all and may the almighty ALLAH reward you abundantly. Office of the Auditor-General, Muh’d Sabo Lamido cna, cpa-Ireland, fcipdm, idfpm, P.M.B. 1051, Auditor-General, Damaturu, Yobe State. Yobe State Government May, 2019. REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE CHAPTER ONE 1.1 INTRODUCTION: Praise and glory to the almighty ALLAH who control and spared our lives to today, providing us with good health, strength, wisdom and the ability to discharge our various responsibilities. Essentially, the Audit roles must be seen as a step, towards the fulfilment of constitutional obligations as required under section 125(1-6) of the constitution of the Federal Republic of Nigeria 1999 (as amended). Auditing profession and the audit roles seek to protect and promote the principles of accountability, transparency and fair play in the control, management and application of the scarce public resources entrusted to officials, be it in government or private entities. The history of Auditing trace back, to the ancient greek city states, where public officials assemble in the city square to account for their stewardship and the results of their operations before the citizens. This significant process is then known as “AUDIER” meaning to ‘hear’ and it is from this word, the terminology “AUDIT” originated. With the growth and expansion of (Nation) States as well as the advancing development of administrative thoughts, public and private sector organizations continue to borrow from the concept and practice of Auditing, to enshrine the provisions into the supreme laws of their nations. Nigeria like other countries was not left out in this regards. The significance of public sector Audit cannot be over emphasized. In fact, it must be made to be more responsible to the yearnings and the aspirations of the ‘people’ for good governance, that could no doubt translate into positive dividends of democracy. As a means REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE of evaluating the achievements/challenges of the public financial management, managers and co-managers, and the results of their operations and stewardship, auditing deserves to be accorded glaring support and attention, in order to achieve a modest level of excellence. Furthermore, citizens growing expectations, expansion in governmental structures, the increase in volume and sophistication of the public sector accounting information and reporting trends signals a more complex demand on public sector audit institutions themselves; to strive to be more responsive, efficient, effective, independent, fairly reliable and capable. This remains to be the only means by which diminishing people’s confidence could be reposed on the audit institutions. This perhaps is the focal objective of public Sector reform advocating and initiating institutions, (national and international) for targeting the audit institutions across the globe as a major sector requiring radical reforms. However, contemporarily it appears reasonable to understand that the success or otherwise of any public institution depends to a larger extent on the willingness of the leadership. A good leadership inspires the vertical and horizontal subordinates and drives everyone to follow suit. This is positively the situation between the Office of the Auditor-General and the Government of Yobe state under the leadership of His Excellency Alh. (Dr.) Ibrahim Gaidam fcna, fnca, fcpa, the Executive Governor of Yobe State (one time a staff of the Audit) whose unreserved commitment and support for audit roles and functions; thus creating a conducive environment to enable us perform our duties confidently and effectively, without interference or the fear of intimidation in any way. REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE The Executive Governor’s stand for probity and accountability could best be viewed from his statement at the launching of the handbook for Code of Conduct for Public officials in Yobe State, and I quote: “the cardinal objective of every democratic government is to provide maximum benefits to a large number of people (citizens), to achieve this noble objectives, public office holders who are entrusted with the management and distribution of public resources, are expected to perform their duties with utmost sense of honesty, probity and accountability. We expect all public officers in Yobe State to abide by the stipulated rules of conduct and regulations guiding the public service, to ensure that the actions and behaviours of public officials in the state confirm to the highest standard of public probity, morality and accountability”. Determined to ensure a solid foundation for good governance under his watch, the Governor regarded the audit roles as very significant and ensured that the Office of the Auditor- General is position to be very enduring by providing all the moral material and financial support required to enable the office live up to expectation. His opinion that the 1958 Audit act, the basis of public sector Audit legal framework in Nigeria appears to be scanty and inadequate for audit guidance in a dynamic environment of today that envisaged for good governance through efficient control and accountability of scarce resources and stewardship, informed the need to broaden and expand the legal framework regulating audit operation in line with global best practice requirement. Indeed, the Governor actually supported us to reposition the office, strengthen our capability and moral to face Audit challenges head on and live up to expectation. REPORT OF THE AUDITOR-GENERAL ON THE ACCOUNTS OF GOVERNMENT OF YOBE STATE To crown his words with action, all the necessary required support including the provisions of: a. Four Operational vehicles including a VIP Jeep, Hilux and two 18 seater buses were provided to aid staff movement. b. Information and Communication Technology (ICT) facilities including internet equipment, set of computers and its accessories, and the creation, maintenance and upkeep of the office website, etc.