Audit-Report-on-NNPC
Audit-Report-on-NNPC
Audit-Report-on-NNPC
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Investigative Forensic audit of crude oil revenues and remittances by <strong>NNPC</strong> (January 2012 – July 2013)<br />
Supporting documents provided were copies of certificate awards, payment certificate and <strong>NNPC</strong>’s<br />
internal vouchers.<br />
4.6.2. Procedures Performed<br />
The various procedures performed are as follows:<br />
1. Reviewed <strong>NNPC</strong>’s submissi<strong>on</strong>s during the Senate Hearings <strong>on</strong> pipeline maintenance and<br />
management cost.<br />
2. Checked the arithmetical accuracy of the figures c<strong>on</strong>tained in <strong>NNPC</strong>’s submissi<strong>on</strong>s.<br />
3. Reviewed the report of the two c<strong>on</strong>sultants (Sada Idris & Co and Ayorinde Osomo & C0)<br />
appointed by the Senate Committee, to audit and give their professi<strong>on</strong>al opini<strong>on</strong> <strong>on</strong> these<br />
costs.<br />
4. Checked the claims with the provided supporting documents to highlight any discrepancies.<br />
5. Documented findings and c<strong>on</strong>clusi<strong>on</strong>s.<br />
4.6.3. Limitati<strong>on</strong>s<br />
<br />
Unsubstantiated claims: We were not provided with support documents for some items of<br />
expenditure categorized under the pipeline maintenance and management cost.<br />
4.6.4. Key Findings<br />
4.6.4.1. Approximati<strong>on</strong> error of $4.68m<br />
<strong>NNPC</strong>’s actual claim for Pipeline Maintenance and Management cost was $905,318,411.32, which was<br />
approximated to $910milli<strong>on</strong>, thereby, creating a difference of $4,681,588.68 74 .<br />
4.6.4.2. Unsubstantiated Cost of $305.89m<br />
The sum of $305,885,083.77, could not be substantiated due to a lack of or insufficient supporting<br />
documents and duplicati<strong>on</strong> of entries.<br />
Vanguardngr<br />
74<br />
Breakdown of <strong>NNPC</strong>’s Claim submitted during the Senate Hearing. Breakdown obtained from <strong>NNPC</strong>. GM Finance’s office<br />
C<strong>on</strong>fidential informati<strong>on</strong> for the sole benefit and use of the <str<strong>on</strong>g>Audit</str<strong>on</strong>g>or-General for the Federati<strong>on</strong>.<br />
PwC 91