LOSS OF GOVERNMENT FUND

DEFINITION OF LOSS
Loss or shortage of fund is a depletion of government fund at a given time.
TYPES OF LOSSES
The type of losses that can arise in a public sector are as follows
(a) Misappropriation of funds
(b) Falsification of records
(c) Conversion of funds to personal use.
(d) Fraudulent payments
(e) Theft.
(f) Negligence
(g) Abandonment of revenue receivable.
(h) Abandonment of advance granted from recurrent expenditure
(i) Loss of Cash
RESPONSIBILITY OF ACCOUNTING OFFICER IN THE EVENT OF LOSS OF FUND
Where a cash loss to the value of N 50,000 or less has occurred without
fraud being involved, Accounting Officers are personally empowered to surcharge
the officers responsible up to the full amount of the loss.
Accounting officers are personally responsible for ensuring that all
responsible officers for losses are surcharged.
For officers above G.L.10, the loss should be reported to the Accountant – General
of the Federation.
Where a loss is treated under this regulation, Accounting Officer must immediately
send a brief report of the circumstances in deciding the value of the loss to:
(a) The Chairman, Federal Civil Service Commission
(b) The Auditor – General for the Federation
(c) The Accountant – General of the Federation
(d) The Federal Ministry of Finance.
According to the FR 1502, a loss shall be charged as a personal advance against
the officers responsible for the loss pending a decision by the Federal Losses
Committee.
The officer in charge of the office in which the loss occurs shall take the following
actions:
(a) Report immediately to Head of the Unit or Division by the fastest means if the
loss occurs away from the Headquarter.
(b) Report to Police if fraud or theft is suspected.
(c) Initiate immediate action by completing Treasury form 146 part 2 and forward
same in quintuplicate to Head of Units or Division.

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(d) Ensure that if a weakness in the system of control or in security is established,
measures have been taken to prevent a re-occurrence of the loss.
(e) Ensure that accounting entries have been made.

THE FEDERAL LOSSES COMMITTEE

The Federal Losses Committee is a Standing Committee responsible for
considering all cases involving loss of cash, stores and vehicles.

Composition of the Federal Losses Committee

(a) A Representative of the Auditor-General as Chairman
(b) A representative of the Accountant General
(c) A representative of the Administration Department of the Ministry/
Extra Ministerial office and other Arms of Government concerned.
(d) A representative of the Inspector-General of Police
(e) A representative of the Economic and Financial Crimes Commission.
(f) The Inspectorate Department of the office of the Accountant-General shall
provide the Secretariat.

BOARD OF ENQUIRIES
This is a Board constituted by the Accountant-General after studying the report of
the Accounting Officer, where there is a reported case of Loss of Government
Fund to carry out special investigation into the circumstances leading to loss.

CRITERIA FOR CONSTITUTION OF BOARD OF ENQUIRIES

A Board of Enquiry shall be constituted under the following conditions:
(a) If fraud is probable.
(b) If the loss is substantial
(c) If several officers are involved.
(d) If the responsibility of the officers are not clearly defined.
(e) If the loss took place over a period of time and
(f) If collusion is suspected.
The Accountant-General in convening the Board shall incorporate Terms of
reference for the Board as he may deem necessary.
The officer convening Board of Enquires shall forward a copy of the convening
order with full terms of reference to:
(a) Accounting officer.
(b) Accountant – General of the Federation.
(c) Auditor – General for the Federation.
(d) Chairman, Federal Civil Service Commission.

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