FCTA Begins Audit on Remittances of Payroll Deductions

By: Wisdom Acka & Sunday Shekwonya

Authorities of Federal Capital Territory Administration (FCTA), has flagged off the auditing of the remittances of both statutory and non-statutory deductions from the payroll of its workforce from year 2010 to 2022.

Flagging-off the exercise in Abuja, Tuesday, the FCT Permanent Secretary, Mr. Olusade Adesola, disclosed that the auditing of the remittances of payroll deductions is in line with the FCTA’s desire to ensure transparency, accountability and responsible financial management.

The remittances of statutory deductions to be audited, according to the Permanent Secretary, include taxes, pensions and insurance, while the non-statutory deductions fall under employee contributions to cooperative societies and various welfare programmes.

The audit exercise, according to the Permanent Secretary is also being carried out to ensure that the Administration’s obligations to third-party beneficiaries are met with utmost integrity.

Adesola, who noted that remittances of payroll deductions play pivotal roles in maintaining the welfare of the FCTA workforce, lamented that remittances for both statutory and non-statutory deductions from the payroll of workers since 2010 had faced some setbacks.

Some of the problems created as a result of such non-remittances, he said, include the failure by FCTA retirees to claim their National Housing (NHF) funds from the Federal Mortgage Banks, due to non-posting of the deductions as a result of discrepancies in the schedules accompanying the payment of such deductions.

As a result, the FCT Administration, he said, found it expedient to engage an Audit Consultant, M/S G.E. Osagie and Co. to audit the payroll of the FCTA from 2010 to 2022 in order to establish the unremitted statutory and non-statutory deductions due as liabilities to third party beneficiaries.

According to the Permanent Secretary, “The auditing of these payroll remittances signifies our unwavering dedication to a robust and meticulous financial system as it allows us to validate that the amounts deducted from our employees’ salaries are promptly remitted to the rightful beneficiaries. It is crucial to maintain the trust of both our employees and the third-party organisations that depend on these funds.”

Adesola, charged the auditing consultant to carry out its assignment in compliance with the terms of engagement as well as the scope and responsibility as stipulated in the Contract Agreement.

In his remarks, the Chairman, Joint Unions Action Committee (JUAC), Mr. Korede Matilukoro, said FCTA workers for a long time have struggled with issues of remittances of their statutory and non-statutory deductions and have been unable to access loans from the Federal Mortgage Banks, despite being major contributors to the funds.

He, therefore, charged the auditing firm to justify the confidence reposed in them by the FCTA, even as he pledged the support and cooperation of FCTA workers to ensure the success of the auditing exercise.

The Managing Consultant of the auditing firm, M/S G.E. Osagie and Co. Mr Godwin Osagie, expressed gratitude to the FCTA for entrusting his firm with the very important responsibility, assuring that the firm will uphold the highest standards of professionalism and transparency in carrying out the exercise.

Others present during the flag-off exercise include the FCTA Director of Treasury, Alhaji Zanna Hamza and other senior officials of the FCTA.