OFFICE OF THE AUDITOR GENERAL FOR LOCAL GOVERNMENTS BIRNIN-KEBBI, KEBBI STATE ANNUAL AUDIT REPORT FOR THE YEAR ENDED 31ST DECEMBER, 2018 IN RESPECT OF THE 21 LOCAL GOVERNMENT COUNCILS IN KEBBI STATE BY ALH. UMARU HAKIMI FCFA, CFA, CNA AUDITOR GENERAL FOR LOCAL GOVERNMENT KEBBI STATE. 1 AUDITOR GENERAL’S OPINION AND CERTIFICATION In compliance with the provision of Section 125(2) of the Constitution of the Federal Republic of Nigeria 1999 and the provision of Section 146 and sub-Section 1-4 of the Kebbi State Local Government Administration Law of 2008. I have obtained all the information and explanations which I considered necessary and therefore certify as result of our audit. In my opinion the Financial Statements and the supporting document have been drawn up so as to show a true and fair view of the state of affairs as at 31st December, 2018 and the transactions for the fiscal year ended on that date as stated above. Therefore, the financial statement has been certified subject to the observations and comments contained in this report. Finally, in my opinion the financial statements and the other related accounts as presented to us give a “True and Fair View” of the state of Affairs of the twenty one (21) Local Governemnt Councils of Kebbi State as at 31st December, 2018. Alh. Umaru Hakimi, FCFA,CFA,CNA. Auditor General for Local Governments Kebbi State. 2 TABLE OF CONTENT 1. Title Page - - - - - - - - 1 2. Auditors General’s opinion and Certification - - 2 3. Table of contents - - - - - - 3 - 4 4. Introduction - - - - - - - 5 - 12 5. Main Accounts (Joint Accounts Committee) - - 13 - 17 6. Joint Accounts Committee Funds (0.55%) - - 18 - 21 7. Emirate Councils - - - - - - - 22 - 23 8. Local Gov’ts Service Commission (Trainning funds) - 24 - 25 9. Local Gov’ts Staff Pension Boards - - - - 26 - 27 11. Primary Schools Staff Pension Boards- - - - 28 - 29 12. Local Gov’ts Education Authority - - - - 30 - 32 13. Aleiro Local Government Council - - - - 33 - 37 14. Arewa Local Government Council - - - - 38 - 44 15. Argungu Local Government Council - - - 45 - 51 16. Augie Local Government Council - - - - 52 - 61 17. Bagudo Local Government Council - - - - 62 - 72 18. Birnin-Kebbi Local Government Council - - - 73 - 78 19. Bunza Local Government Council - - - - 79 - 88 20. Dandi Local Government Council- - - - - 89 - 94 21. Danko-Wasagu Local Government Council - - 95 -104 22. Fakai Local Government Council - - - - 105 -116 3 23. Gwandu Local Government Council - - - - 117 - 122 24. Jega Local Government Council - - - - 123 - 131 25. Kalgo Local Government Council - - - - 132 - 149 26. Koko/Besse Local Government Council - - - 150 – 157 27. Maiyama Local Government Council - - - 158 - 166 28. Ngaski Local Government Council - - - - 167 - 174 29. Sakaba Local Government Council - - - - 175 - 179 30. Shanga Local Government Council - - - - 180 - 187 31. Suru Local Government Council - - - - 188 - 197 32. Yauri Local Government Council - - - - 198 - 203 33. Zuru Local Government Council - - - 204- 210 4 INTRODUCTION In compliance with the Provision of Section 125 (2) of the 1999 constitution of the Federal Republic of Nigeria and Kebbi State Local Government Administration Law of 2008. We have examined the 21 Local Government Councils in Kebbi State for the year endeed 31st December, 2018 in accordance with public financial control management act 1958 standadize Local Government, Treasury procedure, financial memoranda and circular guidiance. The speical aspects of the operations of the 21 Local Government Coouncils in Kebbi State and relevant agencies that required attention as observed in the course of our audit inspections had been listed under the tittled the state of the Accounts and Records in the reports. Detailed observations however, are contained in the domestic reports ealier communicated to te various Local Government Coouncils Chairmen of the respective Local Governments Council with the attendant queries many of which had been replied and were receiving attention. I therefore, certified that the individual accounts are correct subject to various observations raised and contained in the report. Also the officers or council Chairmen concerned has been called for quetioning by the public accounts committee of the Kebbi State House of Assembly as required by the law. 5 2. FINANCIAL HIGHLIGHTS:- 2.1. Twenty one (21) Local Government Councils Revenue Summary Reports: During the year under review it has been observed that the total sum of N43,045,092,202.40 was received by the 21 Local Government Couoncils for the year ended 31st December, 2018 about 21% increase over that of the year 2017. The total amount of receipts for the year 2018 from Federation Account, also includes, statutory allocation, value added tax (VAT) Intenally Generated Revenue, others and the 10% share of States Internally Generated Revenue as per the details below:- SN REVENUE SOURSE 2017 2018 1 Statutory Revenue Allocation 24,122,272,790.90 30,230,333,922.70 2 Value Added Tax (VAT) 6,897,721,854.18 7,533,241,269.69 3 Internally Generated Rev. (IGR) 29,058,225.93 4,107,952,130.00 4 Others 2,753,417,206.15 1,173,564,880.17 5 10% share of state int. Gen. Rev. NIL NIL TOTAL 33,802,470,077.01 43,045,092,202.40 From the table above a detailed analysis shows that the total sum of N30,230,333,922.70 was received as Statutory Allocation, the sum of N7,533,241,269.69 Value Added Tax (VAT). The sum of N4,107,952,130.00 as Internally Generated Revenue (IGR) and the sum of N1,173,564,880.17 as value of other Revenue income received from Federation Accounts by the 21 Local Government Councils for the year under review. This showed that 21 Local Government Coouncils solely depend on Statutory Allocation from Federal Government for their survival 6 despite several audit advice to improve and explore other sources of Internally Revenue Genertion for the Local Government Councils. 2.2 Statutory and Non Statutory Deductions:- During the year ended 31st December, 2018 the sum of N30,025,864,944.88 has been recorded as statutory deductions and the sum of N1,191,612,006.66 was also recorded as non-statutory deductions for the year under review as per the details below:- TWENTY ONE (21) LOCAL GOVERNMENT COUNCILS STATUTORY AND NON-STATUTORY DEDUCTIONS FOR THE YEAR ENDED 31ST DECEMBER, 2018 SN MONTHS RECEIPTS STATUTORY NON STATUTORY BALANCE N : K DEDUCTION DEDUCTION N : K N : K N : K 1. January 3,345,690,542.65 2,643,060,088.65 100,382,246.87 602,248,207.13 2. February 3,408,281,923.23 2,648,109,412.65 100,173,505.92 659,999,004.66 3. March 3,291,885,074.42 2,552,727,982.34 99,856,166.58 639,300,925.50 4. April 3,574,414,245.46 2,742,726,991.08 99,663,484.27 5. May 3,546,384,940.44 2,742,726,991.08 99,663,484.27 6. June 3,637,974,514.80 2,501,574,061.65 99,458,075.41 7. July 3,643,621,712.24 1,997,342,329.16 99,280,092.68 8. August 3,765,326,897.14 2,005,439,158.22 99,108,954.62 9. September 3,673,525,884.69 2,003,642,329.17 98,591,030.28 10. October 3,801,314,813.60 2,746,275,896.17 98,507,124.95 11. November 3,907,735,395.70 2,766,234,530.55 98.507,124.95 12. December 3,448,936,258.32 2,676,005,174.16 98,420,715.86 TOTAL 43,045,092,202.69 30,025,864,944.88 1,093,105,105.167 74,164,062,252.737 It is however noted that these classes of revenue and deductions can only be identified at the Ministry for Local Government and Chieftaincy Affairs (Joint Account) Kebbi State office, Birnin-Kebbi. 2.3 21 LOCAL GOVERNMENT COUNCILS GROSS SALARIES TOTAL DEDUCTIONS AND NET SALARIES FOR THE YEAR ENDED 31ST DECEMBER, 2018:- During the period under review the sum of 7 N12,234,470,668.10 was disbursed to 21 Local Government Councils in Kebbi State to which the sum of N1,191,612,006.66 was said to have been deducted leaving the net balance of N11,042,858,661.60 from January to December, 2018 as per the details below:- SN MONTHS LOCAL GOV’T. TOTAL NET. SALARIES GROSS SALARIES DEDUCTIONS 1. January 1,019,729,774.27 100,382,246.87 919,347,527.40 2. February 1,019,729,773.90 100,173,505.92 919,556,267.98 3. March 1,019,479,773.90 99,856,166.58 919,623,607.32 4. April 1,019,479,327.36 99,663,484.27 919,815,843.09 5. May 1,019,479,327.36 99,663,484.27 919,815,843.09 6. June 1,019,479,327.36 99,458,075.41 920,021,251.95 7. July 1,019,479,327.36 99,280,092.68 920,199,234.68 8. August 1,019,516,327.36 99,108,954.62 920,407,372.74 9. September 1,019,532,527.36 98,591,030.28 920,925,297.08 10. October 1,019,516,327.36 98,507,124.95 921,009,202.41 11. November 1,019,532,527.36 98,507,124.95 921,025,402.41 12. December 1,019,532,527.36 98,420,715.86 921,111,811.50 TOTAL 12,234,486,868.31 1,191,612,006.66 11,042,858,661.65 2.4 STATE/LOCAL GOVERNMENT JOINT PROJECTS:- During the year under review, it has been observed that the sum of N5,762,906,195.03 was said to have been deducted as 25% state and Local Government Joint projects from January to December, 2018 as per the details below:- 25% STATE AND LOCAL GOVERNMENT PROJECTS AS AT THE YEAR ENDED 31ST DECEMBER, 2018 SN MONTHS AMOUNT DEDUCTED N : K 13.