Secrets Reporters
A recent audit report has uncovered that the University of Nigeria Teaching Hospital (UNTH), Ituku-Ozalla, Enugu, failed to remit a total sum of ₦5,554,893.75 to the Consolidated Revenue Fund (CRF), representing 25 percent of its internally generated revenue for the year 2019.
The findings, obtained by SecretsReporters, point to significant lapses in the hospital’s financial management and internal control system.
According to the report of the year 2021 by the federal auditors, the hospital generated a total of ₦22,219,575.00 in internally generated revenue within the period under review. However, contrary to the provisions of the Financial Regulations of 2009 and Treasury Circular Ref. No. TRY/A10&B10/2016 OAGF/CAD/026/V.111/101, the mandatory 25 percent of this amount was not transferred to the CRF as required by law.
The Financial Regulations stipulate that all revenue generated by government ministries, departments, and agencies must be transferred to the CRF before the 15th of the following month. Similarly, the Treasury Circular mandates partially funded government institutions to remit 25 percent of their gross revenue or 80 percent of their operating surplus, whichever is higher.
In clear contravention of these provisions, the audit revealed that the University of Nigeria Teaching Hospital retained the sum of ₦5,554,893.75 that should have been paid to the national treasury. The report attributed this infraction to weaknesses in the hospital’s internal control system, suggesting that oversight lapses may have enabled the non-remittance.
The audit team warned that such failures come with grave risks, including the loss of government revenue, diversion of public funds, and possible disruptions in budget funding. The auditors emphasized that the situation, if unchecked, could undermine public accountability and weaken the financial integrity of public institutions.
In its response, the hospital’s management admitted that the amount due for remittance was yet to be compiled in readiness for payment to the CRF. However, the audit team found this explanation unsatisfactory, stating that the findings remain valid until concrete steps are taken to remit the outstanding sum.
Consequently, the auditors recommended that the Chief Medical Director of the institution be directed to justify to the Public Accounts Committees of the National Assembly why the ₦5,554,893.75 was not remitted. The report further advised that the hospital immediately remit the full amount to the Treasury and forward evidence of payment to the Public Accounts Committee.
Additionally, the auditors warned that if the hospital fails to comply, sanctions specified under paragraph 3112(ii) of the Financial Regulations, 2009, relating to failure to collect and account for government revenue, should be applied. These sanctions could include disciplinary actions against responsible officers.
Observers believe that prompt action by oversight bodies will determine whether the missing funds find their way back to the government’s coffers.