N90b Loans: 20 Conditions State Governors Cannot Meet

 Minister of Finance
introduced far reaching reforms and
conditionalities that may for the first time
sanitise financial management across the 36
states of the federation.
The conditions that the states have to meet
before they can access the loan are:
1.Publish audited annual financial statements
within nine months of financial year end;
2.Introduction and compliance with the
International Public Sector Accounting
Standards (IPSAS);
3.Publish State budget online annually;
4. Publish budget implementation performance
report online quarterly;
5. Develop standard IPSAS compliant software
to be offered to States for use by State and
Local Governments;
6. Set realistic and achievable targets to
improve independently generated revenue (from
all revenue generating activities of the State in
addition to tax collections) and ratio of capital
to recurrent expenditure;
7. Implementation of a centralised Treasury
Single Account (TSA) in each State;
8. Quarterly financial reconciliation meetings
between Federal and State Governments to
cover VAT, PAYE remittances, refunds on
Government projects, Paris Club and other
accounts;
9. Share the database of companies within
each State with the Federal Inland Revenue
Service (FIRS). The objective is to improve VAT
and PAYE collection;
10. Introduce a system to allow for the
immediate issue of VAT / WHT certificates on
payment of invoices. Review all revenue related
laws and update of obsolete rates / tariffs;
11. Set limits on personnel expenditure as a
share of total budgeted expenditure;
12. Biometric capture of all States’ Civil
Servants will be carried out to eliminate payroll
fraud;
13. Establishment of Efficiency Unit.
Federal Government online price guide to be
made available for use by States;
14. Introduce a system of Continuous Audit
(internal audit);
15. Create a fixed asset and liability register;
16. Consider privatisation or concession of
suitable State owned enterprises to improve
efficiency and management;
17. Establish a Capital Development Fund to
ring- fence capital receipts and adopt
accounting policies to ensure that capital
receipts are strictly applied to capital projects;
18.Domestication of the Fiscal Responsibility
Act (FRA);
19.Attainment and maintenance of a credit
rating by each State of the Federation;and
20. No commercial bank loans to be undertaken
by States.

,Kemi Adeosun may have