a. Characteristics of National Chart of Accounts (NCOA):

1. Consultative Design: The NCOA was designed after consultations with all Local Government Councils, States, and the Federal Government of Nigeria to accommodate their unique needs.
2. Expandable and Flexible: The NCOA is both expandable and flexible, allowing for the addition of new accounts as required.
3. Unique Coding: Each item in the NCOA has a unique code that facilitates easy identification and classification.
4. Dual Use: It is used for both budgeting and accounting, providing a standardized framework for financial reporting.
5. Compliance: It complies with IPSAS cash and accrual bases, ensuring that financial reporting is consistent with international standards.
6. Alignment with GFS: It adheres to the Government Financial Statistics (GFS) 2001 guidelines and the Classification by Functions of Government (COFOG).

b. Structures of the National Chart of Accounts for budgeting:

1. Function-Based Structure: Accounts are categorized based on their functions, such as health, education, and infrastructure, facilitating targeted budget allocations.
2. Economic Classification: This structure classifies expenditures into various economic categories, such as salaries, capital expenditures, and transfers, aiding in the analysis of spending patterns.
3. Administrative Structure: Accounts are organized according to the different administrative units, such as federal, state, and local governments, improving accountability and tracking.
4. Project-Based Structure: This structure allows for the identification and management of specific projects within the budget, ensuring that funds are allocated effectively.
5. Programme-Based Structure: Budgets are prepared based on specific programmes, facilitating a results-oriented approach to public sector financial management.
6. Output-Based Structure: This structure focuses on the outputs and outcomes of government spending, linking budget allocations to performance and results achieved.

c. Steps for budgeting with the National Chart of Accounts:

1. Establishment of Budget Guidelines: Clear guidelines are set for budget preparation, including objectives, priorities, and timelines.
2. Preparation of Budget Estimates: Departments and agencies prepare detailed budget estimates based on the NCOA, ensuring all items are coded correctly.
3. Review and Approval: The prepared budgets are reviewed for compliance with guidelines and priorities, followed by approval from relevant authorities.
4. Monitoring and Reporting: Continuous monitoring of budget execution is conducted to ensure compliance and to report on financial performance against the budget.