Section 3.1: Duties of Accounting Officers and Financial Authorities

The Accounting Officer (Permanent Secretary)

Under FR 102, the Permanent Secretary of a Ministry is designated as the Accounting Officer. In Extra-Ministerial Departments and Agencies, the Director-General or Chief Executive Officer serves in this capacity. The designation is personal, and the ultimate financial responsibility cannot be delegated.

Key responsibilities of the Accounting Officer under FR 103 and FR 104 include:

1. Financial Accountability: The Accounting Officer is personally responsible to the Public Accounts Committee (PAC) of the National Assembly for the financial administration of the Ministry.
2. Budget Execution: Ensuring that all expenditure is incurred in accordance with the law, warrants are properly signed, and spending remains within approved limits.
3. Asset Safeguarding: Establishing and maintaining adequate systems of internal control to safeguard public funds, stores, and government property.
4. Accounting Records: Keeping proper, accurate, and up-to-date accounting records, rendering accounts as required by the Accountant-General of the Federation (AGF).
5. Vesting of Authority: No officer may make payments or commit government funds unless they have been formally delegated authority by the Accounting Officer in writing.

Under FR 105, an Accounting Officer who neglects their duty or fails to implement internal control measures can be held personally liable for any resulting loss of public funds.

The Accountant-General of the Federation (AGF)

As the administrative head of the Federal Treasury, the Accountant-General of the Federation (AGF) is the chief accounting officer of the receipts and payments of the Government of the Federation (FR 108). The AGF is appointed under the Constitution and is responsible for:

• Management of the Treasury: Operating and managing the Federal Treasury, including the Treasury Single Account (TSA).
• Compilation of Public Accounts: Preparing and publishing the annual financial statements of the Federation, which are submitted to the Auditor-General for the Federation (FR 109).
• Accounting Standards: Formulating and enforcing accounting policy, systems, and guidelines for all MDAs.
• Supervision of Sub-Accounting Officers: Monitoring and auditing the work of all Treasury officers, Federal Pay Officers, and revenue collectors.

The Auditor-General for the Federation (AuGF)

Established under Section 85 of the 1999 Constitution of the Federal Republic of Nigeria, the Auditor-General for the Federation (AuGF) is an independent officer who is not subject to the direction or control of any other authority. The AuGF is the external auditor of the Federation.

Key duties and powers of the AuGF under FR 110 include:

• Audit of Public Accounts: Auditing all accounts of the Federation, including the courts, the National Assembly, and all federal MDAs.
• Submission of Reports: Presenting audit reports directly to each House of the National Assembly, which are then referred to the Public Accounts Committee (PAC).
• Access to Records: The AuGF or their representatives have the constitutional right of free access at all reasonable times to all books, files, registers, vouchers, cash, and stores of any government office.
• Limitations on Statutory Corporations: The AuGF does not audit the accounts of statutory corporations directly, but must provide them with a list of qualified auditors, comment on their annual accounts, and audit reports.

Sub-Accounting Officers

Under FR 112, a Sub-Accounting Officer is any officer who is entrusted with the receipt, custody, and disbursement of public money and is required to keep one of the principal cash books of the treasury. Examples include Federal Pay Officers (FPOs), Sub-Treasury Officers, and Cashiers at outstations. Sub-Accounting Officers render their accounts directly to the Accountant-General at monthly intervals and are personally responsible for the cash and security documents in their custody.

Financial Authorities and Segregation of Duties

To prevent collusion and fraud, the Financial Regulations mandate a strict separation of powers between those who authorize expenditure (Accounting Officers), those who manage custody and make payments (Accountant-General/Sub-Accounting Officers), and those who audit the processes (Auditor-General).

Warrants and Financial Control

An Accounting Officer cannot spend public funds unless there is an authorized Warrant issued by the Minister of Finance. A warrant is a formal authorization to release funds from the Consolidated Revenue Fund (CRF) or other public funds. The main types of warrants include:

• Annual General Warrant: Authorizes the expenditure of funds appropriated in the annual budget (Appropriation Act).
• Provisional Development Fund Warrant: Authorizes capital expenditure before the release of the Capital Budget warrants under specific conditions.
• Supplementary General Warrant: Issued when supplementary estimates are passed by the National Assembly.
• Virements: Under strict circumstances and with the approval of the Finance Minister (and/or National Assembly), funds can be moved from one sub-head to another within the same head of expenditure, provided the total allocation is not exceeded. This is governed by strict rules under FR 506.

Accountability to the Public Accounts Committee (PAC)

The Public Accounts Committee (PAC) is a standing committee of both the Senate and the House of Representatives. Under FR 103, when the Auditor-General flags irregularities in the audit report, the PAC summons the respective Accounting Officer to answer query letters. The Accounting Officer is personally liable for these queries and cannot pass the responsibility to retired or transferred subordinates. If a loss occurred due to a failure to establish internal control, the Accounting Officer must refund the lost funds as stipulated in FR 105.

The Federal Pay Office (FPO)

At the state level, the Accountant-General of the Federation operates Federal Pay Offices (FPOs). The Federal Pay Officer is a Sub-Accounting Officer who manages the treasury operations for federal establishments located within that state. The FPO collects revenue from federal departments, makes payments authorized by those departments, and submits monthly transcripts of accounts to the AGF headquarters in Abuja. This decentralized treasury structure ensures that federal public servants and contractors in various states do not have to travel to Abuja for financial transactions.