Ministries, Departments and Agencies are scampering to tidy-up Account following the notice by the Office of the Accountant General of the Federation (OAGF) to close 2023 accounts for the commencement of 2024 budget.
OAGF therefore directed MDAs using GIFMIS to upload all 2023 transactions from their Sub-TSA Accounts into the system using the Journal Entry Functionality.
For MDAs utilizing the Government Integrated Financial Management Information System (GIFMIS) and the Treasury Single Account (TSA), the process will be swift and automatic.
The notice came in the annual Federal Treasury Circular with reference number: TRYA7&B7/2023/OAGF/CAD/026/Vol.V/823 dated 19th December, 2023 and signed by the Accountant General of the Federation (AGF) Dr. Oluwatoyin Madein.
Madein said: “Both ledger periods and access to funds will be closed online, real-time by midnight of December 31st, 2023”. Similarly, TSA-Sub Accounts of MDAs holding regular budgetary funds with a recurrent component will face the same automatic closure at midnight. 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.
The OAGF’s directive underscores the importance of accountability and transparent financial management within MDAs.
The deadline for completing 2023 financial activities and preparing for 2024 is approaching rapidly, and all MDAs are urged to comply with the established procedures and reporting requirements to avoid disruptions and sanctions.
