AUDITED BORNO STATE LOCAL GOVERNMENTS CONSOLIDATED FINANCIAL STATEMENTS

31ST DECEMBER, 2018.

BORNO STATE OF NIGERIA

FOR THE YEAR ENDED FOR THE YEAR ENDED

HIS EXCELLENCY

EXECUTIVE GOVERNOR BORNO STATEPROF. BABAGANA UMARA ZULUM mni, FNSE

RT. HON. ABDULKARIM LAWAN Speaker, Borno State House of Assembly

HON. SUGUN MAI MELE Honourable Commissioner, Ministry for Local Government

and Emirates Affairs, Borno State

BABAGANA LAMINU, B.Sc., MBA, CPA, FCNA ACTING AUDITOR - GENERAL

FOR LOCAL GOVERNMENT, BORNO STATE

ABUBAKAR A MUSTAFA

ABADAM LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MOHAMMED UMAR FATIBE

BAMA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

ADAMU ABARE

BAYO LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

HAJIA LARAI MAI UMAR

BIU LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

KACHALLAH USMAN

CHIBOK LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MODU MUSTAFA TOKKOBE

DAMBOA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

SANUSI BELLO CHUL

ASKIRA UBA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

UMARA BUKAR

DIKWA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

BABAGANA MMODU

GUBIO LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

USMAN LAWAN

GUZAMALA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

SECRETARY

BORNO STATE

GWOZA LOCAL GOVERNMENT COUNCIL

ABDULKARIM L. WAKAWA

HAWUL LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

ALLAMIN SHERIFF

JERE LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

LAWAN BUKAR WASARAM

KAGA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

ABUBAKAR KOLO

KALA BALGE LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MAI BUKAR ALHAJI

KONDUGA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MAAJI BULTU

KUKAWA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MOHAMMED ABUBAKAR YIMIR

KWAYA KUSAR LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MOHAMMED LAWAN SHERIFF

MAFA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

ALI LAWAN KYARI

MAGUMERI LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

ZANNA SHETTIMA

MAIDUGURI METROPOLITAN COUNCIL SECRETARY

BORNO STATE

MUSTAFA YATCHAMI

MARTE LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

MAMMAN MALLAM AJI

MOBBAR LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

GONI MUSA

MONGUNO LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

HAJJA HAUWA MUSTAFA

NGALA LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

ALHAJI ABATCHA

NGANZAI LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

FANNA KUMATU MEDUGU

SHANI LOCAL GOVERNMENT COUNCIL SECRETARY

BORNO STATE

BUKAR ALHAJI GADI

ABADAM LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATEBAMA LOCAL GOVERNMENT COUNCIL

ABDULLAHI JIBRIL

BAYO LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

MOHAMMED IBRAHIM

BIU LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATECHIBOK LOCAL GOVERNMENT COUNCIL

TREASURER

BORNO STATEDAMBOA LOCAL GOVERNMENT COUNCIL

ABU IBRAHIM NGULDE

ASKIRA UBA LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

BABAGANA GIMBA

DIKWA LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATE

GUBIO LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

GUZAMALA LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

GWOZA LOCAL GOVERNMENT COUNCIL

NUHU ABDULLAHI

HAWUL LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

BURA SAMBO

JERE LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATE

KAGA LOCAL GOVERNMENT COUNCIL

TREASURER

BORNO STATE

KALA BALGE LOCAL GOVERNMENT COUNCIL

LAWAN FUGU ABBA

KONDUGA LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

SHETTIMA HARUNA

KUKAWA LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

AHMED LAWAN

KWAYA KUSAR LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATE

MAFA LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

MAGUMERI LOCAL GOVERNMENT COUNCIL

BUKAR WAZIRI

MAIDUGURI METROPOLITAN COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATE

MARTE LOCAL GOVERNMENT COUNCIL

BABAGANA YIRIMA

MOBBAR LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

MALLAM SALISU

MONGUNO LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TREASURER

BORNO STATE

NGALA LOCAL GOVERNMENT COUNCIL

YAGANA FANTAMI

NGANZAI LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

DANJUMA GARBA

SHANI LOCAL GOVERNMENT COUNCIL TREASURER

BORNO STATE

TABLE OF CONTENTS PAGES

Statement of Responsibilities i

Audit Certificate ii

Performance Evaluation iii

Audit Queries viii

Statement of Significant Accounting Policies xiii

Statement No 1 1

Statement No 2 3

Statement No 3 4

Statement No 4 6

Notes to the Accounts 7

Schedule to the Accounts 16

i

STATEMENT OF RESPONSIBILITY

The financial statements of the 27 Local Government Councils of Borno State have been prepared by the Treasurers of

the respective Councils in accordance with the Nigerian Format of Cash Basis of International Public Sector Accounting

Standards. The statements conform with the provisions of the Finance (Control and Management) Act 1958 (as

Amended). The Director of Finance and Accounts, Ministry for Local Governments and Emirate Affairs, Borno State has

Consolidated these financial statements in accordance with Generally Accepted Accounting Principles.

The Treasurers of the 27 Local Government Councils are each responsible for the preparation of their respective

Financial Statements in compliance with relevant Accounting Standards and Laws. I ensure and take responsibility for

the integrity and reliability of the consolidated financial statements.

I confirm that the consolidated financial statements of the 27 Local Government Councils of Borno State reflect the

financial positions and operations of the Local Government Councils of Borno State as at 3l December, 2018.

Director of Finance & Accounts, Hon. Commissioner,

Ministry for Local Governments & Ministry for Local Governments &

Emirate Affairs. Emirate Affairs.

AUDIT CERTIFICATE

In compliance with section 125 of the Constitution of the Federal Republic of Nigeria 1999 (as Amended), I have

examined the consolidated Financial Statements of Borno State Local Government Councils for the year ended

31st December, 2018. The Consolidated Financial Statements reflect the Accounts and Financial Statements of

the 27 Local Government Councils of Borno State for the year ended 3Vt December, 2018. Basis of Opinion

The audit was conducted in accordance with the requirements of the public Sector Auditing Standards and the

provisions of the Audit Law of Borno State 1994.

That proper records have been maintained by the respective Local Government Councils and they comply with the

provisions of the Borno State Local Government Law 2000 (as Amended). I have obtained all information and

explanation necessary for the discharge of my responsibility.

I certify that the Consolidated Financial Statements together with the notes are in order and that they present a true

and fair view of the State of Affairs of the 27 Local Government Councils of Borno State as 31st December, 2018.

BABAGANA LAMINU, B.SC, MBA, CPA, FCNA

ACTING; AUDITOR-GENERAL

LOCAL GOVERNMENTS

BORNO STATE.

ii

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1. Financial Accounting and Reporting Framework: The Financial reporting framework of the 27 Local Government Councils is anchored on the Cash Basis of International Public Sector Accounting Standards (IPSAS). The standards integrate budget performance reporting to the financial statements. The accounting principles governing financial reporting are in accordance with the National Chart of Accounts and detailed accounting procedures in the Government Financial Regulations.The Financial Statements have been prepared on the basis of the Nigerian Format of the General-Purpose Financial Statements (GPFS) governed by the International Public Sector Accounting Standards (IPSAS). The Financial Statements presented are: i. Statement No 1: Statement of Cash Flowii. Statement No 2: Statement of Assets and Liabilities iii. Statement No3: Statement of Consolidated Revenue Fund (CRF)iv. Statement No 4: Statement of Capital Development Fund (CDF)2. Accounting Convention and Basis of Preparation: The Financial Statements have been prepared in line with the Nigerian Format of IPSAS- Cash Basis. The cash basis of accounting recognizes transactions and events only when cash is received or paid by the entity. 3. Depreciation: Non-Current Assets were written off in the year of purchase in accordance with the cash basis of accounting. 4. Investments: Investments are stated at lower of cost and market value. Incomes from investments are recognized when cash is received into the Consolidated Revenue Fund. 5. Employee Benefits: This represents funded retirement benefits payable by the Local government. The liabilities for retirement benefits would not be recognised in the financial statements, in accordance with the Cash Basis of Accounting. 6. Budget and Reporting Period: The budget and reporting period of these Financial Statements 01/01/2018 to 31/12/2018 i.e. 2018 Fiscal Year.7. Reporting Currency: The reporting currency of the Financial Statements is the Nigerian Naira. Transactions in foreign currencies are converted to Naira at the rate prevailing at the time of transaction. Balances in foreign currencies are translated at the exchange rate ruling at the date of the Statements of Assets and Liabilities. 8. Revenue Recognition: Revenue is recognized only when cash is received. It is recognized on gross basis and any related costs are recorded separately. 9. Recognition of Expenditure: Expenditure is recognized when cash is paid. 10. Statement of Compliance: The Financial Statements comply with the Nigerian Format of General-Purpose Financial Statement.

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