News
Wednesday, March 22, 2012.

AUDIT OF SOLID MINERALS SECTOR IN NIGERIA

The Government of Federal Republic of Nigeria through Nigeria Extractive Industries Transparency Initiative (NEITI) under the auspices of the National stakeholders Working Group of Nigeria has awarded the contract of the first Solid Minerals Sector Audit in Nigeria to our firm HARUNA YAHAYA & CO. (Chartered Accountants). The service contract agreement was signed by both parties on 1st March 2012 at NEITI Corporate Head Office in Abuja. Scope of works includes Financial, Physical and Process audit of covered entities (major players) in the solid minerals sector.


HIGHLIGHTS OF THE AGREEMENT IS AS FOLLOW:

The general objectives of the financial Audit are:

  • To report on the revenue flows and investment flows amongst the Major Player(s) in the solid minerals sector, as more fully described below, with transactions made by participants (both public and private) in Nigeria‚Äôs solid minerals industry;
  • The Consultant shall work together with relevant government agencies to collate all data on payments by the major players in the solid minerals sector and receipts by government agencies.
  • Match payments made by the major players in the solid minerals sector with those received by government agencies.
  • To ascertain if the payments are in conformity with applicable legislation.
  • To report on balances payable/receivable at the end of the audit period for certain financial flows.
  • Ascertain the appropriateness of payments made with regards to minerals royalties, ground rent, dividends, and taxation on profits and for mineral rights.
  • To report on federation revenues in terms of budgets, actual and variance.
  • To undertake special verification work on certain classes of transaction;
  • To reconcile the financial transactions reported by payers and recipients, as per the scope set out herein.
  • To report on Federation Revenues in terms of budgets, actual, amounts outstanding for respective government entities.
  • To report on actual disbursements of funds from the Federation Account to beneficiaries (to the extent that some element of those funds originated from the solid minerals sector).
  • Review financial statements for consistency between the major players in the solid minerals sector and the relevant government agencies.
  • The consultant shall review the capital investment and the operational cost for the major players in the solid minerals sector.
  • To review the capital investment in order to access the actual amount of the investment and to determine if the amortization and the depreciation declared is correct and does not improperly reduce the amount of taxable profits of the major players in the solid minerals sector.
  • Perform the audit of operational cost in order to access if the deduction claimed were actually incurred and correspond to the legitimate operational expenses as these affects the taxable profits of the major players in the solid minerals sector.
  • Reconcile the data so collected to ascertain if there is any disparity between the actual Governments reported templates and aggregated Major Players reporting template.
  • The consultant shall analyse the tax deductions claimed by the major players in the solid minerals sector for the purpose of identifying improper claims.

  • The period to be covered by the audit is the calendar years 2007-2010(1 January, 2007 to 31 December, 2010).

    The Board of Partners, Management and Staff of HARUNA YAHAYA & CO. (Chartered Accountants) wishes to express profound gratitude and appreciation to NEITI for the selection of Auditors which lasted for about 20 months (30 June 2010 to 1st March, 2012).

    We assured you that we shall execute and complete the assignment within record time.

    We also wish to assure you of our quality services that is anchored on professionalism and integrity.