The Nigerian Government has set a deadline for Ministries, Departments, and Agencies (MDAs) to finalize their 2023 accounts.
As the fiscal year 2023 concludes, the Office of the Accountant General of the Federation (OAGF) has firmly notified all MDAs to wrap up their 2023 accounts and prepare for the 2024 budget.
This announcement was detailed in the yearly Federal Treasury Circular, dated December 19, 2023, and issued by the Accountant General of the Federation, Dr. Oluwatoyin Madein.
With the 2023 Appropriation Act nearing its end, all recurrent and capital spending for this year must cease by December 31st, 2023.
This sets a critical deadline for MDAs to finalize their financial operations in line with OAGF guidelines.
MDAs using the Government Integrated Financial Management Information System (GIFMIS) and the Treasury Single Account (TSA) will experience a prompt and seamless closure process.
Dr. Madein stated, “The closure of ledger periods and fund access will be executed online, instantly, at the stroke of midnight on December 31st, 2023.”
“In a similar vein, TSA-Sub Accounts containing regular budgetary funds with recurrent elements will also undergo automatic closure at midnight,” the OAGF cautioned against any bypassing of this process.
Dr. Madein warned, “Engaging in tactics like transferring funds to undisclosed accounts or creating fake accounts to keep unspent funds will be identified and face strict repercussions. Involved MDAs and personnel will be subject to relevant disciplinary actions.”
The OAGF instructed that MDAs utilizing GIFMIS must input all 2023 transactions from their Sub-TSA Accounts into the system via the Journal Entry Functionality, mandating completion by February 13th, 2024.
Moreover, MDAs will gain access to 2024 funds only after the Treasury verifies the correct recording of all Sub-TSA transactions in GIFMIS.
Additionally, the OAGF has formulated a specific protocol for uploads within the GIFMIS journal entry functionality sub-module, which all MDAs must strictly follow.
In compliance with International Public Sector Accounting Standards (IPSAS) and Financial Regulations, MDAs are required to submit their Audited Trial Balance and Financial Statements for the year ending December 31st, 2023, to the OAGF by February 28th, 2024.
The AGF emphasized the importance of timely submission of audited financial reports for facilitating the opening of accounts and disbursement of funds for the fiscal year 2024.
The Government highlighted that non-compliance with these directives will result in serious repercussions.
In alignment with Presidential Directives and Financial Regulations, any MDA failing to provide their audited financial statements will face an immediate halt in fund disbursements and a formal inquiry directed at their Director or Head of Finance and Accounts.
This directive from the OAGF emphasizes the criticality of responsible and transparent financial management within MDAs.