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FRC remits N253million to Consolidated Revenue Fund

By on November 14, 2014

Contrary to the insinuation by the House of Representatives Committee on Finance that the Financial Reporting Council (FRC) does not remit 25 per cent of the total amount its generates internally into the consolidated revenue fund, as required by law, the Council paid in a total of N252.828 million into the fund in 2013.
The 2013 audited financial statement of the FRC obtained by THISDAY showed that the amount represented a significant increase, compared to the N111.676 million it remitted in 2012.
The computation of the amount paid by the FRC was based on the letter released by the Federal Ministry of Finance in 2012. The letter was in furtherance to a circular issued by the Coordinating Minister for the Economy/Minister of Finance on November 11, 2011, directing government agencies to remit 25 per cent of their gross revenue (excluding some income streams) instead of the remittance of the balance of its operating surplus in accordance with the Fiscal Responsibility Act, 2007.
However, had Section 22 of the Fiscal Responsibility Act 2007 been followed, the remittance by the FRC in 2013, would have been N248.873 million.
The Chairman of the House Committee on Finance, Hon. Abdulmumini Jibrin had during a recent visit to the Fiscal Responsibility Commission directed the Commission to carry out a forensic audit of the FRC and two other federal establishments.
The consolidated revenue fund represents 25 per cent of the total amount generated internally by government agencies.
For the FRC, its financial statement showed that this included consultancy services, fines and penalties, registration of professionals and annual dues from publicly quoted and registered companies in Nigeria, effective January 2012.
Section 22 of the Fiscal Responsibility Act, 2007 states: “Notwithstanding the provisions of any written law governing the corporation, each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one-fifth of its operating surplus for the year.
“The balance of the operating surplus shall be paid to the Consolidated Revenue Fund of the federal government not later than one month following the statutory deadline for publishing each corporation’s accounts.”
The House of Committee on Finance had in an amendment to the Fiscal Responsibility Act in September last year, placed the FRC under category B, and the Council was directed to remit 25 per cent of its gross internally generated revenue.