NAN-HE-13
Template
By Folasade Folarin
Abuja, Jan. 30, 2017 (NAN) The Fiscal Responsibility Commission (FRC) says that the new template it developed for calculating operating surplus by Ministries, Departments and Agencies (MDAs) is a veritable instrument for revenue generation.
The Acting Chairman of the commission, Mr Victor Muruako, told the News Agency of Nigeria (NAN) on Monday in Abuja that the template was now more encompassing.
Muruako said it would help MDAs know what to spend exactly and what to return to the Federal Government coffers.
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“It is a handbook that can guide so that you know those expenditures that will not be allowed; so that you know some expenditures that, you cannot push to the government.
“You know as an agency that if you make this expenditure, obviously it will be on your 20 per cent, not on the general fund that will constitute the 80 per cent.
“It will obviously reduce areas of friction and conflict. The operators of those agencies will also find it handy because it will also be a guide for them.
“So I think it will definitely improve on independent revenue, particularly now that the Federal Government is in dire need of funds to run its developmental programmes.’’
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The Acting Chairman said that the document called; “a Standard Template for the Calculation of Operating Surplus’’ was produced and released by FRC to guide MDAs in complying with the Fiscal Responsibility Act (FRA), 2007.
The Act, he said, provides that all scheduled corporations, referred to as Independent Revenue Earning Agencies of the government were required to pay 80 per cent of their operating surplus and retain 20 per cent of it.
He, however, said before there were challenges of finding an agreeable formula to calculate what should form part of the expenditure heads.
“There have been issues and we have had differences with these agencies over time and it is part of our mandate to also provide guides, standard rules and regulations.’’
Muruako said that in preparing the new template, a committee was set-up by the FRC, which included top representatives of the Office of the Accountant General of the Federation and the Office of the auditor-general.
Other members of the committee are the Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN) and other stakeholders.
He said that all the stakeholders worked out an agreeable way that would not be subject to lots of disputes within the commission and the revenue earning agencies of government, as provided by the schedule of
the FRA.
Muruako said the document had been forwarded to the Minister of Finance who has accepted and circulated it.
“We as a commission believe and know that sooner than later, in this first quarter, that document will be introduced publicly.
“It will be launched because I think that it requires launching and introduction so that these agencies will get used to it and have it since it will be in the public domain.
“Right now, it is not in the public domain but will soon be,’’ he said.
NAN reports that the Fiscal Responsibility Act, 2007, was enacted to promote prudent management of the country’s resources; ensure long-term macro-economic stability and transparency in fiscal operations of the national economy. (NAN)
FOF/DOR/YEE
Edited by Nyisom Dore/Emmanuel Yashim
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