The World Bank praised Kogi’s 2020 audited financial statement, describing it as a model for transparency and accountability in government.
The bank expressed its gratitude in a letter dated Nov. 21 and addressed to the state’s Accountant-General.
The letter was received by the Accountant-General on November 25.
Deborah Isser, State Fiscal Transparency, Accountability, and Sustainability Programme (SFTAS) Task Team Leader, Nigeria Country Office, Western and Central African Region, signed it.
The letter was titled “Nigeria: Review of Kogi State Audited Financial Statement for the year ended December 31, 2020 for SFTAS.”
SFTAS is a 750-million-dollar program that rewards states for meeting any or all of nine indicators that demonstrate improvements in fiscal transparency, accountability, and sustainability.
The nine indicators are an offshoot of the Federal Government’s previous Fiscal Sustainability Plan, in which states were rewarded for meeting up to 22 targets.
The World Bank helped the Federal Government incentivize states to meet the 22-point Fiscal Sustainability Plan, which has now been redesigned as the nine Disbursement Linked Indicators under SFTAS.
The goals are to improve financial reporting and budget reliability, as well as to increase transparency and citizen engagement in the budget process.
Other benefits include improved cash management and reduced revenue leakages as a result of the implementation of the State Treasury Single Account.
Some more are fortified Payroll fraud is reduced by using internally generated revenue, biometric registration, and a bank verification number.
The remainder include, among other things, improved procurement practices for greater transparency and value for money; strengthened public debt management and fiscal responsibility framework.
The SFTAS program is an extension of the Federal Government’s efforts to improve transparency and accountability in the use of public resources.
This will be accomplished by implementing the Open Government Partnership, which Nigeria signed in July 2016.
In a letter to Kogi, the World Bank commended the state for preparing audited financial statements in accordance with the International Public Sector Accounting Standards’ accrual basis (IPSAS).
“We take note that the Kogi State Audited Financial Statements for the fiscal year ended December 31, 2020 have been uploaded to the state’s website in accordance with the SFTAS’ eligibility criteria for Financial Year 2021.”
“The Financial Statements were prepared on an accrual basis in accordance with IPSAS, and the Auditor-General of the State issued an Audit Certificate with an unqualified (clean) audit opinion,” the letter stated.
It went on to say that the bank had reviewed the audited financial statements and determined that they met the SFTAS Programme Fiduciary assurance requirements.
It was noted that the letter was issued four months after the letter commending Gov. Yahaya Bello for good leadership.
It stated that a 4.63 million dollar surplus under the Nigeria Erosion and Watershed Management Project would be refunded.
The bank’s letter came about a month after the Institute of Chartered Accountants of Nigeria recognized Kogi State’s improvement in its ICAN’S Novel Accountability Index.
According to ICAN, Kogi improved from 12th to 7th place in its 2019 assessments.