NBA Makes A Total Of N189M Plus As Income, N289, 350 Realized As Unidentified Income — Financial Report

* Funds Slit Between Restricted And Unrestricted Category
* Revenue From Bar Practice Fees Accounts For 92% Of Unrestricted Funds
* N25, 349, 019 Realized From Stamp Sales
* As Report Is Published With A Caveat

The Nigerian Bar Association realized a total of One hundred and eighty nine million, one hundred and thirty five thousand, three hundred and eighty nine naira (N189, 135, 389) as income. This was contained in the Financial Report for the Second Quarter which ended on the 31^st January, 2019 (Q2).

According to the report, the Association received an aggregate sum of N189, 135, 389, split between restricted and unrestricted funds of N37, 349, 019 and N151,786, 370 respectively in which revenue from bar practice fees accounts for 92% of the unrestricted funds.

The Report shows that the restricted funds for the Second Quarter of the financial year cover stamp sales and donations. Stamp Sales had a total N25, 349, 019 as realized funds, while N12, 000, 000 accounted for donations, which leaves the total at N37, 349,019.

The Unrestricted Income which is the other side of the split contains items such as members’ database registration and verification, bar practicing fees, annual conference income, Letter of Good Standing, interest income and unidentified income. According to the breakdown of all funds realized, members’ database registration and verification had a total N1, 926, 942; the sum of N139, 218, 523 was realized for bar practicing fees, N10, 069, 475 as annual conference income, N235, 353 for sales of NBA products, N145, 075 for Letter of Good Standing, N1, 652 for interest income, and N289, 350 for unidentified income. This shows that a total of N151, 786, 370 was realized as unrestricted income.

Study from TheNigerialawyer (TNL) shows that Q2 expenses totaled N110, 924, 194 with 29% attributed to programme services. According to the report, the highest spend during the quarter was on personnel expenses which amounted to N33, 631, 393. The report reads that the NBA had a case position of N163, 128, 100 at the end of January, 2019, with 53% of this balance in restricted amounts, adding that, the administrative bank account which is the operational bank of the Association, has an overdrawn balance of N17, 144, 599; that the NBA has taken a 3- month roll-over overdraft facility to fund its working capital which resulted in a finance cost of N1, 500, 000 at N500, 000 monthly.

The Report further shows that total current liability as at 31^st January amounted to N408, 861, 188 with 61% of these accruals arising from the 2018 AGC related expenses, while on Short – term Borrowing, the Association obtained a 3 month rollover overdraft (OD) facility of N50, 000,000 from Access bank in November 2018, particularly to augment the association’s working capital in the period under review. The OD was said to have offered at a monthly finance at a monthly finance cost of N500, 000 being 10% of the facility obtained and payable within 30 days.

Despite the details of the Financial Report, the Association inserted a caveat which goes a step to clear the air in case of any situation of perceived inaccuracies. The caveat reads:

“In preparing these financial statements, we have relied on the balances and the information provided in the audited financial statements as at 31^st July, 2018. We have not audited or verified all the information set out in the financial statements as at July, 2018 which we have had to rely upon in the preparation of these financial statements.

“In view of the fact that we have not received all the relevant records required to confirm the opening balances and some Q2 transactions as at the time of the preparation of these financial statements, there is a strong probability that some of the information set out in these financial statements will be re-stated as and when the relevant records are received.”