The business functions of a finance department typically include controlling and directing the financial accounting functions of the Corporation, by ensuring reports generated are in accordance with the current international accounting standards (IFRS) and the Group Accounting System also bearing in mind that the statutory and regulatory reporting requirements are stricly adhered to at all times.
Basically, the finance department undertakes the following listed activities;
a) Ensure all transactions are recorded timely and accurately to enable clear overall management accounts.
b) Preparation of management accounts to enable management to know the statement of affairs of AMCON, the performance trend analysis and the overall financial position to guide the Corporation executive decision making.
c) The finance department also responsible for producing the Corporation's annual financial statements.
d) Ensure that income and expenditure for the financial year are - reasonably projected and strictly adhered to in line with budget and resources available.
e) Reports to Regulatory authorities, periodically as enshrined in the AMCON Act.
f) Maintains the Corporation’s General Ledger
g) Manages Corporation’s Tax matters
In order to achieve the Corporation’s mandate, the Finance department was set up with the following business units to support the Corporation in achieving its objectives: Performance Management, Accounts and Fixed Assets, Cost and Tax, Financial Reporting & IFRS Valuation/Disclosures and Regulatory Reporting and Statutory Rendition.
This unit is mainly responsible to monitoring the performance of the various departments in AMCON, relative to the annual budget and coordinate the preparation of the annual budget detailing the plans for all business units.
- Preparation and Monitoring of Corporate Budget.
- Review monthly budget & prepare variance analysis report to measure actual performance against budget.
- Setting standard of performance for various units of the Corporation.
- Measurement of Performance by comparing Actual achievement with the Budget.
- Monitor performance of subsidiaries and report to management regularly.
||Account & Fixed Assets
The main objective of this unit amongst others include:
- To achieve effective administration and maintenance of integrated accounting General Ledger (GL) system with appropriate internal financial controls.
- Co-ordinate and initiate periodic checks on assets to confirm their existence and condition.
- Confirm accuracy of the accounting records on asset position.
- Prepare proof of General Ledgers (GL) to confirm the correctness of the transaction.
- Conduct daily review of General ledgers for unusual balances and significant movements.
||Cost & Tax Management
This units ensures that the corporation’s taxation affairs are planned and managed so as to optimise the corporation’s Tax position:
- Assist all business units in legal and tax matters towards ensuring adequate compliance.
- Prepare all state and federal income tax returns.
- Coordinate all tax audits and prepare schedules for all tax processes.
- Ensure that statutory deductions (e.g. WHT, VAT, PAYE) are properly and fully made.
- Manage compliance with the local tax regimes (e.g. WHT, VAT, PAYE) and minimize the burden of taxation on the corporation.
- Ensure timely and full remittance of tax deductions to relevant Tax Authorities.
||Regulatory Reporting and Statutory Rendition
This unit is responsible for the following functions:
- Preparation of periodic financial management account. (Monthly, quarterly & Annually)
- Carry out analytical review and trend analysis on variances.
- Render monthly performance analysis report to Board of Directors.
- Renders statutory returns and other reports to CBN, MOF, NASS and other regulatory bodies.
- Coordinate annual audit exercise and CBN routine examinations.
||Financial Reporting & IFRS Valuation/Disclosure
The IFRS Valuation/Disclosure unit is responsible for the following task towards achieving the Corporation’s overall mandate:
- Reviewing measurement of financial instruments processed on Finstudio on a daily basis
- Review of Amortised cost
- Review of fair value measurement
- Review of impairment
- Proposing and posting IFRS Journals on Finstudio.
- Prepares separate and group consolidated IFRS financial statements.
- Creation of ledgers for IFRS trial balance.
- Calculation and review of technical parameters for IFRS impairment such as; probability of default (PD) and Loss given default (LGD) on a monthly basis.
- Valuation of unquoted entities.
- Impairment testing of Subsidiaries, equity investees and other investments on quarterly basis.
- Preparation of IFRS 7 and 13 Disclosure Schedules:
- Fair value
- Credit Risk
- Liquidity Risk
- Market Risk
- Currency Risk
- Reviewing new applicable IFRSs and advising management on their impacts.