Absence of prudence and fiscal discipline in organisations, disastrous- ITF DG
Mr Joseph Ari, the Director-General of Industrial Training Fund (ITF), says lack of prudence and fiscal discipline in corporate organisations can lead to disastrous and unforgivable consequences.
Ari said this at the opening of a two-day workshop on the Processes and Procedures of the Fiscal Responsibility Act, 2007, organised for the accounting staff by the management of ITF in Jos on Friday.
Ari said fiscal responsibility had a lot to offer individuals, corporate organisations and nations.
”Fiscal responsibility implies that governments must have balanced budgets and revenue to sufficiently pay for all their expenditures.
”This is because the economic future and the very survival of any nation depends on the way it manages fiscal policies.”0
Ari commended President Muhammadu Buhari for placing high premium on prudent expenditure and fiscal dependability.
On the importance of the workshop, Ari said equipping staff with the necessary skills was not only imperative for them, but for all public institutions as it would enhance shrewd management which would have effects on national economy.
He also commended the management and staff of the FRC on their efforts at enforcing the Fiscal Responsibility Act, 2007.
Mr Victor Muruako, the Acting Chairman of FRC, said that training for relevant officers of the organisation was very important because the agency had been added to the schedule of the FRA, 2007.
He also said there was the need to implement the Medium-Term Expenditure Framework (MTEF) in the organisation to ensure ”sustainability of projects and avoid abandonment.”
Muruako explained that while the MTEF sets out a three-year development plan, operating surpluses constituted 80 per cent of surpluses to the Consolidated Revenue Fund (CRF) of the Federal Government at the end of every financial year.
”Section 21 to 23 of the FRA, 2007 is very clear about payment of 80 per cent operating surplus back to the CRF, while the remaining 20 per cent is to be retained in a general reserve fund meant for the organisation.”
He said that the commission had been monitoring the implementation of that aspect of the Act since it began operations 10 years ago, adding that it become even more expedient to ensure more independent revenue for government.
He warned agencies that were querying the reason they were added to the schedule to ensure they implemented the directive because there was no going back on this decision.
”Gone are the days agencies squander their surpluses, while government continues to borrow money to fund its activities.
”We must face the reality of the time and brace up to the match to the Next Level agenda of Mr President,” he said.
He advised the staff of ITF to practice what they learnt, adding that the idea was to ensure that they produced their annual accounts timely and ensure that they adhered strictly to their MTEF.
Ari assured them that the commission was willing to provide any technical assistance to them whenever it was necessary.