The statutory deductions to be audited include taxes, pensions and insurance, while non-statutory deductions are employee contributions to cooperative societies and various welfare programmes.
The Permanent Secretary of the FCTA, Mr. Olusade Adesola, disclosed this while conducting the flag-off exercise in Abuja on Tuesday at the FCT Minister’s Conference room.
He said the the auditing of the remittances of payroll deductions was in line with the administration’s objectives and commitment to ensure transparency, accountability, and responsible financial management, and was also being carried out to ensure that the FCTA’s obligations to third-party beneficiaries, were met with utmost integrity.
“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”, he said.
Adesola also disclosed that the FCTA had engaged M/S G.E Osagie and Co, to audit the payroll of the Administration from 2010 to 2022, and to among other objectives, establish the total statutory deductions for National Housing Funds, FCT Heath Insurance Scheme, Contributory Pension Scheme, Pay As You Earn, and other non-statutory deductions, as well as establish deductions and payments made on behalf of FCTA staff the NHF, PAYE, and cooperative deductions.
The Perm Sec noted that payroll remittances played a vital role in the maintenance of staff welfare, adding that the FCTA “will leave no stone unturned” in ensuring accuracy, fairness and compliance with all relevant regulations and policies throughout the auditing process.
He 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, while also urging them to come up with recommendations that will make subsequent FCTA remittances on these statutory and non-statutory deductions seamless to the third-party beneficiaries and avoid the embarrassment caused to the FCT by non-remittance of such deductions.
In his remarks, the Chairman of the Joint Unions Actions Committee, Mr Korede Matilukoro, said auditing the remittances of deductions of about 40,000 workers of the FCTA, was necessary, and expressed satisfaction that the FCT Administration has engaged a reputable firm to handle the task.
He 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, noting that workers had struggled with issues of remittances of their statutory and non-statutory deductions, particularly the inability to access loans from the Federal Mortgage Banks, despite being major contributors to the funds.
On his part, the Managing Consultant of the auditing firm, Mr Godwin Osagie, expressed gratitude to the FCTA for entrusting his firm with the very important responsibility and gave assurance that the firm will uphold the highest standards of professionalism and transparency in carrying out the exercise.
