The President of the Nigerian Bar
Association, Paul Usoro, SAN
* NBA Net Assets Shows N1,851, 469, 886 for Management
Account, N2,065,656, 695 for Audited Accounts And Adjusted Audited
Accounts.
* Financial Statement Shows Total Current Liabilities As N446, 542,
516.00
* As He Reminds Members of Auditor’s Warning Of The Possibility Of
A Restatement Or Adjustment Of The Figure Based On Fresh
Information And Data
The President of the Nigerian Bar Association, Paul Usoro, SAN,
has said that NBA’s total expenditure in the month of August 2018
was N866, 570, 811.00 with a finance cost of N500, 000.00, while
the sum for the member funds of the NBA as at 31st
August, 2018, was a total of N 2, 065, 656, 695.
The Learned Silk made this statement in a press release titled
“NBA Financial Statement As At 31 August 2018 and Finance
Diagnostic Report”, dated the 16th day of November,
2018.
Giving an explanation of the movement of cash within the
stipulated period, Mr. Usoro said that the NBA Admin account which
is the NBA’s main operational account was overdrawn and had a
deficit balance of N42,020, 959.27 as at 31st August, 2018. He also
said that the Financial Statement shows cash and cash equivalent
position of N126,113, 841.00 as at 31 August, 2018, as Total
Current Liabilities, reads N446, 542, 516.00.
“The NBA Admin account which is the NBA’s main operational
account was overdrawn and had a deficit balance of N42,020, 959.27
as at 31 August 2018 and this is reported as part of the current
liabilities in the FS, the breakdown of which is set out in Note 6
to the FS at page 7 thereof. The FS however shows cash and cash
equivalent position of N126,113, 841.00 as at 31 August, 2018, the
breakdown of which is provided in Note 5 to the FS at page 6
thereof. Note 5 shows that most of the cash were in dedicated
accounts (e.g. MacArthur Foundation Accounts, stamp and seal
account, North East Account) the proceeds of which ought not to, be
used for NBA operational activities.
“As we pointed out earlier, the NBA admin account is the NBA’s
main operational account and it had an overdrawn balance of N42,
020, 950. 27 as at the said date. The balances in the other,
arguably, non-dedicated accounts (all of which are detailed along
with the dedicated accounts in Note 5 to the FS) when tallied (i.e.
having isolated and kept aside the funds in the dedicated
accounts), was less than N20,000,000.00 as at the said date. On the
liabilities side, the Total Current Liabilities, as at 31 August
2018, according to the FS, was N446, 542, 516.00.”
In contemplating the amount, Mr. Usoro drew members’ attention
to the caveat that is prominently entered at page 3 of the FS where
PWC expressly forewarned the NBA of the possibility of a
restatement or adjustment of the figure based on fresh information
and data which may be unearthed sequel to the preparation of the
FS. He emphasized that in his discussions with PWC, any such
restatement of adjustment would be reflected in the Q1 2018/2019 FS
which is under preparation, in fulfillment of their commitment to
consistently publish Quarterly FS.
Speaking further, he said that the statement of comprehensive
Income also shows that the NBA’s total expenditure in the month of
August 2018 was N866, 570, 811.00 with a finance cost of N500,
000.00, adding that the bulk of the expenditure (N737, 275, 378.00)
relates to the AGC. He also stressed that when these two heads of
cost are tallied (N867,070, 811. 00) and matched against the NBA’s
Gross Income for the month of August 2018 (I.e., N519, 245, 091),
the NBA recorded a deficit of N347, 825, 720.00) in that month, as
shown in the Comprehensive Income Statement. He further promised
that the Financial Statement and the Finance Diagnostic Report
would be tabled before NBA NEC for deliberation in 06 December,
2018, adding that the briefing is no witch-hunt but a move to beat
the transparency bench-mark as promised by his administration
during campaigns.
“The statement of comprehensive Income also shows that the NBA’s
total expenditure in the month of August 2018 was N866, 570, 811.00
with a finance cost of N500, 000.00. The bulk of the expenditure
(N737, 275, 378.00) relates to the AGC. When these two heads of
cost are tallied (N867,070, 811. 00) and matched against the NBA’s
Gross Income for the month of August 2018 (I.e., N519, 245, 091),
the NBA recorded a deficit of N347, 825, 720.00) in that month, as
shown in the Comprehensive Income Statement.
“The FS and the Finance Diagnostic Report would be tabled before
NBA NEC for deliberation in 06 December, 2018. We also expect that
the Q1 2018/2019 FS would be ready before the said date and would
also be presented and deliberated upon by NEC, in fulfillment of
our commitments.
We are not on a mission to witch-hunt and/or probe anyone. All
that we seek to achieve is to institutionalize the basic principles
of governance, transparency and accountability into the NBA body
politic in a manner that makes for efficient and transparent
conduct of our affairs thereby earning the Association the respect
and admiration, not only of our members but of our global
audience,” he said.
The Statement of the management account made available to
TheNigerialawyer (TNL), has a breakdown on the sheet for the NBA
Financial position. They are the Audited Accounts (AA), Adjusted
Audited Accounts (AAA) and the Management Accounts (MA). On
Assets, there are the non-current assets, current assets, current
liabilities and net assets categories. Under non-current assets,
the item, “property, plant and equipment” has the sum of
N2,063,521, 492 on the audited and adjusted accounts each, while
N2,139, 751, 318 is reflected in the management account. The total
for this as shown in this segment, however, reflects the same.
For current assets, the item, “trade and other receivables”
shows N35, 031, 291 for AA and AAA, while MA shows a total sum of
N28, 508, 486 with the item, inventories showing N3,638,757 for AA,
AAA, and MA. Amongst others, “repayment” reads N113, 299, 250
for AA and AAA, with MA reading NIL as the net assets as shown
reads N2, 065, 656, 695 for AA, N2,199, 295, 606 for AAA while MA
reads N1, 851, 469, 886. The same chain goes for members’ fund as
recorded in the statement.
TNL recalls that the NBA President, Paul Usoro, SAN, had earlier
in a statement informed bar men of the engagement of
Pricewaterhousecoopers (PWC) for the twin
assignment of preparing the NBA Financial statement as at the
31st day of August, 2018.
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