Disclosed: NDDC’s Interim Management Committee Unable To Account For A Shortfall Of N143billion
There are so many people that can not give account to their budgets... And also they can't even keep personal and business finances separate. But there are so many ways people can keep their personal and business finances separate.
If you have separate checking accounts and you are diligent about drawing on the right account at the right time, come tax time, all you have to do is review your bank statements for a clear picture. If you can manage to only use your business debit card and avoid cash, you may even be able to do your taxes and other financial reporting straight off your bank statements.
You don't need to actually use shoeboxes to store receipts (in fact, something a little more elaborate is a good idea), but whatever you use should have two physically separate locations for personal receipts and business receipts. If you don't have time to collect and sort both personal and business receipts, prioritize your business receipts. The simple truth is that a tax auditor is unlikely to care much about your personal expenses, but will be very interested in your business receipts.
A business credit card will help you build up a credit history for your business separate from your personal credit history. More importantly, your credit card is one of the likeliest places for your finances to get muddled. Separate credit cards means that even if there's something a little out of reach of your business' current budget, you won't be tempted to use your own credit card.
If you write a check for the same amount every month from your business' checking account to your personal checking account, you can make it easier for both your personal finances and your business finances to stay on budget.
Just as you don't want to pull more money out of your business than your business can afford, you don't want the business to pull more money out of you than you can afford. Many small business owners find themselves pumping money from their personal accounts into their company's whenever there's a shortfall. And sometimes it's unavoidable. But if you have a clear budget based on your business' current earnings, you can help avoid both.
It's important to remember that you're not always the only person involved in either your personal finances or your business' finances. Making sure that everyone is on the same page now can prevent problems later on.
Among the biggest pitfalls in keeping your finances separate are entertainment, food and travel expenses. It's tempting to try to write off as much as you can as a tax deduction, but the simple fact is that dinners out with family and friends will not qualify as business expenses, no matter how you arrange things. But according to this situation, it have been disclosed that the NDDC’s Interim Management Committee Were Unable To Account For A Shortfall Of N143billion budget (2019).
A mild drama ensued at the National Assembly Joint Committee on Niger Delta Affairs today July 14, after the Interim Management Committee (IMC) of the Niger Delta Development Commission, Prof. Kemebradikumo Pondei, was unable to account for a shortfall of N143billion in its 2019 budget.
Professor Pondei had led other members of the Interim Committee of the NDDC before the National Assembly Joint committee on Niger Delta Affairs to defend its 2019 expenditure and also present its 2020 budget proposal.
While defending the 2019 budget of the agency, he told the lawmakers that Commission received N305.5billion as revenue in 2019 and spent N122billion, leaving a balance of N183.2billion.
“In compliance with the provision of the 2019 Appropriation Act, we implemented the 2019 capital budget till May 31st 2020. On the expenditure side, 2019 budget implementation was hindered by the delay in its approval and release coupled with the COVID-19 global pandemic.
Only the recurrent expenditure which runs from January 1st to December 31st, 2019 was implemented substantially.”Pondei said
The briefing got heated when Chairman of House of Representatives Committee on NDDC, Olubunmi Tunji-Ojo, asked Pondei to explain why only N40billion out of the N183.2billion balance was brought forward in the submission of the agency before the panel, leaving an outstanding difference of N143billion. Other members of the committee pointed out discrepancies in the budget
After a heated argument, Professor Pondei requested for the withdrawal of 2019 budget details to enable the Commission to address the N143 billion discrepancy raised by the committee members.
The Chairman, Senate Committee on Niger Delta Affairs, Senator Peter Nwaoboshi, acceded to the request of the MD of NDDC to withdraw the report and adjourned the 2020 budget defense session of the agency to next Tuesday, July 21.
The NCDC which was set up to address developmental shortfalls in the Niger Delta region has been enmeshed in a corruption scandal in recent times.
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