An overview of Income from investment properties between 2015 and 2017 revealed the following:
A. A sum of N313,210,000.00 was recorded as gross income due from investment properties but only N241,152,000.00 was received, thereby leaving N72,058,000.00 as outstanding rental income.
B. While Mohammed & Co (An Estate Firm) spent 2.7% of gross rent received by it on incidental expenses, the Estate Unit of NSITF spent 18.7% of gross rent collected by the Unit on the same expenses. This is viewed as abnormal as expenses reportedly incurred by Mohammed & Co. was far less than what was incurred by Estate Unit despite the fact that the amount collected by former was greater than the latter.
C. Addition of both 10% Admin. charge and expenses incurred by Mohammed & Co. was less than the total expenses incurred by the Estate Unit.
D. Documentary evidence to prove the genuineness of incidental expenses of N21,874,011.14, incurred by the Estate Unit of NSITF, was not made available for audit inspection.
E. The annual average return on investment of 1% is considered too low in view of the fact that there were other investment opportunities that could have yielded better return on investment far above this rate.
It would therefore appear that the investment was not subjected to proper evaluation before investment decisions were taken as investment evaluation based on sound appraisal techniques would have revealed that venturing in government bond and securities would have been more