MDAs GET WARNING OVER CLOSURE OF 2023 ACCOUNTS AS OAGF SETS TIMELINE FOR 2024 BUDGET ACCESS 24-12-23
By Sadiq Aminu The Office of the Accountant General of the Federation (OAGF) has reminded all Ministries, Departments, and Agencies (MDAs) to ensure compliance with the directive on the closure of 2023 accounts by Sunday, December 31,and the commencement of 2024 budget access. The OAGF in the annual Federal Treasury Circular with reference number: TRYA7&B7/2023/OAGF/CAD/026/Vol.V/823 of 19th December, 2023 said: “both ledger periods and access to funds will be closed online, real-time by midnight of December 31st, 2023.”*
This signifies a crucial timeline for MDAs to wrap up their financial activities and comply with the OAGF’s directives.
For MDAs utilising the Government Integrated Financial Management Information System (GIFMIS) and the Treasury Single Account (TSA), the process will be swift and automatic.
The OAGF said TSA-Sub Accounts of MDAs holding regular budgetary funds with a recurrent component will also face the same automatic closure on December 31. The OAGF warned against any attempts to circumvent the closure process.
Transferring funds to hidden accounts or engaging in practices like creating surrogate accounts to manipulate unspent balances the AGF said “will be detected and met with consequences. MDAs and officers involved in such maneuvers will face appropriate sanctions”.
To ensure transparency and proper accounting, MDAs using GIFMIS are required to upload all 2023 transactions from their Sub-TSA Accounts into the system using the Journal Entry Functionality. This exercise the AGF insisted must be completed by February 13th, 2024.
In addition, access to funds for 2024 transactions will only be granted to MDAs after the Treasury confirms accurate posting of all Sub-TSA transactions into GIFMIS.
Furthermore, the OAGF has developed a specific framework for upload, available within the GIFMIS journal entry functionality sub-module. Adherence to this framework the AGF warned is mandatory for all MDAs.
In keeping with International Public Sector Accounting Standards (IPSAS) and Financial Regulations, all MDAs have been ordered to submit their Audited Trial Balance and Audited Financial Statements for the year ended December 31st, 2023 to the OAGF on or before February 28th, 2024. The timely submission of audited financial reports the AGF said “is crucial for the OAGF to proceed with opening accounts and releasing budgetary allocations for the 2024 fiscal year”.
Failure to comply with these requirements will have significant consequences. With regards to the Presidential Directives and Financial Regulations, any MDA that fails to submit their audited financial statements will face immediate suspension of fund allocation. Additionally, a query will be issued to the Director or Head of Finance and Accounts of the non-compliant MDA.