Posted by Ministry, Department, and Agency (MDA) accounts for 2023 will be closed and access to the 2024 budget will begin as the 2023 fiscal year comes to a close, according to a stern notification from the Office of the Accountant General of the Federation (OAGF).
Dr. Oluwatoyin Madein, Accountant General of the Federation (AGF), signed the yearly Federal Treasury Circular (TRYA7&B7/2023/OAGF/CAD/026/Vol.V/823) on December 19, 2023, which contained the notice.
The current year’s recurrent and capital expenditures will be closed on December 31, 2023, as the execution of the 2023 Appropriation Act nears its conclusion.
This points to an important deadline by which MDAs must finish their financial operations and adhere to the OAGF’s orders.
For MDAs that use GIFMIS and the Treasury Single Account, the procedure will be quick and automated.
By midnight on December 31st, 2023, both ledger periods and access to funds will be closed online in real-time, according to Madein.
Just like that, at midnight, all TSA-Sub Accounts of MDAs that carry regular budgetary monies with a recurring component would be automatically closed. Do not try to evade the closure procedure, the OAGF cautioned.
There would be repercussions for those who “transfer funds to hidden accounts or engage in practices like creating surrogate accounts to manipulate unspent balances,” as stated by the AGF. The relevant authorities will take action against MDAs and officials who engage in such maneuvers.
In accordance with this, OAGF has instructed all MDAs using GIFMIS to use the Journal Entry Functionality to enter all transactions from their Sub-TSA Accounts for the year 2023. The government has stipulated that this process must be finished by February 13, 2024.
Furthermore, MDAs will not be able to access funds for transactions in 2024 until the Treasury verifies that all Sub-TSA transactions have been accurately posted into GIFMIS.
Plus, you can find the OAGF’s upload framework under the GIFMIS journal entry functionality sub-module. All MDAs are required by the AGF to follow this framework.
By February 28, 2024, all MDAs must have submitted their Audited Trial Balance and Audited Financial Statements for the year ending December 31, 2023, to the OAGF, in accordance with Financial Regulations and International Public Sector Accounting Standards (IPSAS).
To go forward with opening accounts and providing budgetary allocations for the 2024 fiscal year, the AGF emphasized that the OAGF must receive audited financial reports in a timely manner.
Serious repercussions will ensue from noncompliance with these regulations, the government warned.
In accordance with the Presidential Directives and Financial Regulations, the immediate suspension of budget allocation is threatened against any MDA that does not provide audited financial statements. The MDA whose financial practices are not in compliance will also have a query sent to their director or head of accounting.
The significance of open and accountable financial management inside MDAs is emphasized by the OAGF’s order.
The previous president of Nigeria, Muhammadu Buhari, signed a budget of N21.83 trillion for the year 2023 into law in January of this year.