Management Letter

1.0 Authorization and Payments before Review

Julius Berger Free Zone Enterprise

Observation Implication Recommendation Management’s response

Our reveiew of the Internal Control Processes, we 1, Management override of Management should ensure it
identified a control which states that, controls and possible adopts/implements its internal
“Payment and authorization is done after Site misappropriation of resources control process to avoid cases of
Accountant Review”. of the company. fraud/theft or misappropriation of
2. Improper review and company resources.
However, we noticed instances of authorization for authorization process
payments done before the Site Accountant’s review.

See Appendix 1
 Management Letter

2.0 Overstated Prepayment Balances

Julius Berger Free Zone Enterprise

Observation Implication Recommendation Management’s response

We observed that some prepaid advances which have 1. Overstatement of prepayment Management should ensure proper
already being enjoyed by the company are still carried balance. records are kept to eliminate the risk
on by the company as prepayment/receivables. 2. Misstatement of financial of misstating the financial
statements. statements.

See Appendix 2
 Management Letter

3.0 Cash Request Form

Julius Berger Free Zone Enterprise

Observation Implication Recommendation Management’s response

During our review of the internal control processes, it 1. Fabricated transactions could Management should ensure it
was stated that all transactions are initiated by Concur be manually inputed. implements its internal control
and as such all vouchers or request froms are 2. Gives room for fraud or error. process to help mitigate cases of
automatically raised when the need arises, 3. Misstatement of financial fraud/theft
statements.
However, we observed instances where cash 4. Management override of
disbursement form was not raised for required controls.
transactions.
This raises the question of whether Concur initates all
transactions.

See “ TD.Travel Documents”

 JBFZE Management Letter
31 December 2022

Appendix 1: Authorization and Payments before Review

Julius Berger Free Zone Enterprise

Amount
Voucher Number Description Date of Authorization Date of Review
(N)

FY22N0180 Advance for FY 22 Operational Cost for RV329 03/December/2021 06/December/2021 407,572

LIQ-Advance for Adolescent Operation Triple Zero

FY22N0477R 08/March/2022 16/March/2022 47,100
Club Meetings

LIQ-Advance for FY22 Operational Cost for EID

FY22N0658R 31/March/2022 12/April/2022 189,927
study activities at 68NARHY Lagos

Advance for Adolescent Operation Triple Zero Club

FY22N0739 Meetings at 161 NAFH 1/April/2022 3/April/2022 120,000

Advance for Adolescent Operation Triple Zero Club

FY22N0803 Meetings at NNRH 19/April/2022 30/April/2022 75,000

LIQ-ADVANCE FOR JULY 2022 -IJEOMA FY 22

FY22N1179R Operational Cost for RV329 31/July/2022 17/August/2022 65,821
 JBFZE Management Letter
31 December 2022

Appendix 2: Overstated Prepayment Balance

Julius Berger Free Zone Enterprise

Amount
Voucher Number Description Invoice Date Date of Expense
(N)

FY22N0180 Advance for FY 22 Operational Cost for RV329 03/December/2021 30/November/2021 407,572

LIQ-Advance for Adolescent Operation Triple Zero

FY22N0477R 08/March/2022 12/Feb/2022 47,100
Club Meetings

LIQ-Advance for FY22 Operational Cost for EID

FY22N0658R 31/March/2022 31/April/2022 189,927
study activities at 68NARHY Lagos

Advance for Adolescent Operation Triple Zero Club

FY22N0739 Meetings at 161 NAFH 1/April/2022 8/April/2022 120,000

Advance for Adolescent Operation Triple Zero Club

FY22N0803 Meetings at NNRH 19/April/2022 22/April/2022 75,000

LIQ-ADVANCE FOR JULY 2022 -IJEOMA FY 22

FY22N1179R Operational Cost for RV329 31/July/2022 28/July/2022 65,821