ACCOUNTING ARTICLESGovernment accounting regulatory framework.
Government accounting regulatory framework.
This can also be called legal instrument designed to regulate accounting functions:
- The constitution of federal republic of Nigeria: This is a document that has supreme authority over the use of the financial resources of the federation. It covers power and control over public fund, establishment of fund e.g. CRF, DF, CF& Federation account, audit of public account, public revenue of federation.
- Financial regulation: These are rules governing the management of public fund. It states all the dos and don’ts with regards to public sector accounting.
- Appropriation acts: This is an act or law passed by the national assembly or local government which gives statutory authority for the necessary spending from the CFR. Appropriation Act provides authority for spending public money for services to be tendered during the year to which it applies. Appropriation act is approved budget by National Assembly. Appropriation Acts are made every year for the purpose, not just for controlling financial and accounting matters, but primarily to cater for issues such as finance as deemed fit for the recurrent expenditure. The bills passed into laws by the legislature are in two categories: (i) Money bills, and (ii) Other bills (being non-money bills). A bill as defined in (a) above when passed is known as an Appropriation Act while the one as defined in subsection (b) is a Financial Act.
- Treasury and financial circular: They are extra administration instruments that are employed for the amendment or modification of the available provisions of financial regulations, civil service rules and the introduction of new policy guidelines. These are issued from time to time as occasions demand which deal with revision of procedures, changes in regulations or amendments to the FRS, changes in formats revision of salaries and fringe benefits, budget preparation and budgetary control etc.
- The audit act of 1958 as amended: This Act deal with the duties of Auditor General for the Federation and spells out the account which the Accountant General of the Federation should prepare and present for audit. The Acts empower the Auditor General to prepare and transmit a report to the legislature. It gives him the latitude to inquire into any issue, programme, project, activity, function or transaction.
- The financial control and management act 1958 as amended: This document contains provisions for the management, operation, and control of all government funds created by the constitution or by the Act itself. It provides for cash basis accounting, government portfolio, the accounting format for the preparation of government accounts and statements.
By Ojeaburu, Friday MSc, ACA
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