THE UNTED REPUBLIC OF TANZANIA OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR (OCAGZ) - AUDIT OF THE WORLD BANK IBRD - IDA FUNDS AWARDED TO OCAGZ ZANZIBAR TO PROVIDE SUPPORT FOR A PROGRAM IN CAPACITY BUILDING PROJECTS GRANT AGREEMENT NO. TFOA. 4610 FOR THE PERIOD ENDED JOTH AUGUST 2019 - - E.K MANGESHO & COJ~PANY CERTIFIED PUBLIC AC COUNTANTS 5TH FLOOR CO-ARCHITECTURE BUILDING, - 12 UHURU STREET, DAR ES SALAAM. P.O. BOX 20098, TEL: 2180117, FAX: 2180190 E-MAIL ekmangesho@yahoo.com DAR ES SALAAM. THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL - ZANZIBAR. TABLE OF CONTENTS PAGE NO ... List of Abbreviations and Definitions of Terms 111 Introduction: Statement by the Controller and Auditor General Zanzibar 1-5 - Responsibility of the Accounting Officer on the Annual financial Statement 6 Declaration of the Head if Finance / Accounting 7 Auditors Report on Financial Statement 8-10 Statement of Cash Receipts and Payments 11 Statement of Cash Flows 12 Statement of Comparison of Budget and Actual Amount 13 Notes to the Financial Statements for the year and 14-17 Summary of Significant Accounting Policies LIST OF ABBREVIATIONS AND DEFINITIONS OF TERMS - DA Disbursement Arrangement Office of the Controller and Auditor General Zanzibar OCAGZ PFMA Public Finance Act of2016 ASB Audit Service Board WB World Bank IPSAs International Public Sector Accounting Standards PAA Public Audit Act PPA Public Procurement Act of2016 IFR Interim Financial Report oc Other Charges PMG Pay Master General - TZS Tanzania Shillings MTEF Medium Term Expenditure Framework ZRB Zanzibar Revenue Board USD American Dollar THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF CONTROLLER AND AUDITOR GENERAL ZANZIBAR. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31TH AUG, 2019 STATEMENT BY THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR. 1. INTRODUCTION The Office of the Controller and Auditor General, received Grant from World Bank for the purposes of Building Capacity to OCAGZ staff. The Financial Statements presented are Statement of Cash receipts and Payments, Statement of Comparison of Budget against Actual amounts, Statement of Cash Flows, and Notes to the Financial Statements as required by IPSAS Cash Basis. In order to provide more information in the financial statements, schedules to the financial statements are also provided. The Office of Controller and Auditor General of Zanzibar of provide records of the financial performance for the financial year 2018/2019. The Statements provide comparative analysis of the estimates with the actual amount disbursed from the World Bank The OCAGZ submits its Financial Statements for the year ended 31th Aug 2019, which discloses the state of affairs of the OCAGZ. The Financial statements are prepared in accordance with the International Public Sector Accounting Standards (IPSAS) • ESTABLISHMENT The Office of the Controller and Auditor General (OCAG) was established under The Establishment of the Office of Controller and Auditor General Act, 2003 for the imposition and exercise of overall control on public finance and for other matters incidental thereto. The Act became operational from gth September, 2003. • VISION To be a leading independent Supreme Audit Institution that promotes public accountability and transparency. • MISSION To promote accountability through quality audit in the public sector and ensure the nation and public resources are applied for as intended 2. Objectives/Functions The main activities of the OCAG--in--.tcoordance with the Public Finance Act 2016 · 1 ' · -~~,~g on the accounting of: are to examine, inquire ,int~~i~ ' ' , .~. ' - Ut) •' ;",._,;,::- -~-...;.,,-,;_>. I~ . 1,~ r,v f ··, (a) All ministries and departments of Government and their Accounting officers; (b) All persons entrusted with the collection, receipt, custody, issue or payment of public monies or with receipt, custody, issue, sale, transfer or delivery of any stamps, securities, stores or other public property. (c) All public authorities and other bodies. (d) Any authority or body which receives funds from the Consolidated Fund or from public moneys for a public purpose. (e) Any authority or body which is authorized by law to receive money for a public purpose. (f) Any authority or body required by law to be audited by the Controller and Auditor General. 3. Financial Performance for the year During the financial year 2018/2019 the Office of Controller and Auditor General received a total of US$ 94,545.40 in the form of Grant from World Bank and US$ 137,939.70 were directly paid to the supplies by World Bank on behalf of the Office of Controller and auditor. The overall amount received during the year under review is 86% of the estimated amount. FINANCIAL STATEMENTS FOR THE YEAR ENDED 31TH AUG, 2019 STATEMENT BY THE CONTROLLER AND AUDITOR GENERAL - ZANZIBAR - (CONTINUED) Description Budgeted Actual Amount (US$) Percentage Amount (US$) Grant 270,000.00 232,465.10 86% Total 270,000.00 232,465.10 86% 4. Risk Management and Internal Control a) Internal Control System. The office of controller has instituted all required internal control mechanism to ensure financial and physical achievement commit the sound governance. Internal audit unit, audit committee, ministerial tender board and procurement management unit are among other mechanisms that have been implemented by the office. Also the office is governed by laws, regulations, procedures and guidelines as follows: ./ Public Finance Management Act No. 12 of2016 ./ Public Procurement Act No. 11 of 2016 ./ Finance CircJ%~'Jiont~~~t General /:~~ t_?.;..---~~-,'.'{d:\ ./ Public Services circular ./ Institute of Internal Auditors Principles and Standards ./ International Accounting Standards ./ Government Orders ./ Bango Kitita ./ Audit Manual. ./ Mid-Term Expenditure Framework (MTEF) b) Internal Audit As requested by Public Finance Regulations 2016 section 11(3)(d) The Office has established an effective Internal Audit Unit. This Unit during the period made appraisal of adequacy of the compliance with the system of internal control financially and physical implementation. The office achievement resulted with their advice and close monitoring of activities. The staffs of the Internal Audit Unit that served during the year ended 3 ith Aug, 2019 are as follows: No Name Position Discipline 01 Ali Vuai Simai Internal Auditor Accounting 02 Rukia Mbarouk Amour Internal Auditor Accounting 03 Makame Zubeir Juma Internal Auditor Accounting 04 Abdalla Kheir Khamis Internal Auditor Accounting 05 Aisha Said Saleh Internal Auditor Accounting c) Audit Committee The Office established audit committee as required by Regulation 28 of the Public Finance Regulation 2016. The Committee was officially launched on 03rd Feb, 2015 and its composition is as follows. No Name Position Discipline 01 Saleh Haji Abass Director Audit Accounting 02 Riziki Said Seif Director Audit Accounting 03 Mwatima Bweni Zubeir Director Audit Accounting 04 Salum Suleiman Ali Principal Auditor Accounting The Audit Committee's objective is to enhance internal control by assisting the Accounting Officer to fulfill stewardship, leadership and control responsibility in managing the resources of the Office. During the year under reviews four meeting conducted and all issues raised have been solved within the meetings and through their advice to Accounting Officer. The committee discussed the following issue d) Procurement Tender Board. The Office has established Tender Board and Procurement Management Unit (PMU) in accordanse-~ifr:UL~ff~e.nt of the Public Procurement Act no 11 .· • .,. C_....,....--------..,...._ ~.- 4;/ '•,.~ /)~.;_0,Y/ ~..,.,~-~: ·D.,:'. of 2016. On behalf of the Office, PMU has been assigned with the responsibility of procuring goods, works and consultancy to the amount not exceeding USD 10,000 or its equivalent and any amount exceeding USD 10,000 must be approved by tender board of The Office. The Members of the Tender Board that served during the year ended 30th Aug, 2019 were as follows:- No. Name Position Discipline 1. Saleh Haji Abass Chairman Accounting 2. Rashid Suleiman Makame Secretary Procurement 3. Mwatima Zubeir Bweni Member Accounting 4. Riziki Said Seif Member Business Administration 5. Issa Ramadhan Issa Member Procurement officer 6. Kombo Rashid Juma Member Law The Board has been established since 2008 during the year under review, two meeting conducted. The committee discussed the followings issues:- • Purchase of Computer • Purchase of stationeries • Staff Training • a) Training facilities The Office regards training as investment in human resources. The Office, therefore, set aside sufficient resources in its annual budget and plans to meeting training objectives. All employees are trained with the aim of equipping them with knowledge, skills, attitude and ability necessary to achieve the Office's strategic goals. Training is normally carried out with focus on core business of the Office (i.e. audit of all ministries and departments of the Government) academic and professional improvement and technical programs. Training is conducted in accordance with an annual training program drawn from training needs assessment, which takes into account identified skills gaps and exposure to new and ever changing working and business environment. This guarantees availability of high caliber employees capable of meeting the Office's vision and mission. b) Gender and employees relationship Management/Employees relationship remain cordial throughout the period, there were no unsolved complaints received by management. The Office is convinced that equal opportunities granted to all, irrespective of ethnicity, race, gender, disability or religion which does not impair ability to discharge duties. As at 31th Aug, 2019 the Office of Controller had the following distribution of employees by g~!!4.er. ..... __ ._ .. t f'") "'•<; ·, ~,,-~ .•... , ...~! .,.....-- ot.\;tr"\,.,r.. ~R i~;VD ,,,~--(~ ,,./,. C ::;.,.------... '°iti ·,~.. Gender 2018/2019 O/o 2019/2020 % Male 70 55% 107 50.5% Female 58 45% 105 49.6% Total 128 212 c) Relationship with stakeholders The Office recognizes the importance of addressing the needs of its key stakeholders in order to add value, satisfy their needs and expectations to fulfill its mission. The Office key stakeholders include the Governments, World Bank and staffs. The Office is committed to delivering value to its stakeholders through better services. d) Administrative Efficiency. The Office used the administrative expenses at the equitable level in comparison with estimate amount and the service delivery. The utilities and office supplies and services were available at any given time. The actual amount spent on Utility and Office supplies and Services in the year 2018/2019 were available at high level. e) Environment Control Program The Office obey government programme of sensitizing staff on critical issue of cleaning surrounded environment of the Office. f) Serious Prejudicial Matters During the year ended 31th Aug 2019, there were no serious prejudicial matters to report. g) Cross-Cutting Issue. The Office has the section discusses how the plans address and respond to the cross-cutting issues such as gender equity, HIV/AIDS. And the environment, and other budgetary issues such as disability and human rights. Conclusion The performance of the office of the Controller and Auditor General is based on Vision 2020, Millennium Development Goals (MDGs), Strategic Plan, Medium Term Expenditure Frame Work (MTEF), Zanzibar Strategic for Growth and Reduction of Poverty (ZSGRP) and Chama Cha Mapinduzi Manifesto of the 2015-2020 which specifies vision, mission objectives and targets that are compatible with Government policies and strategies. To the large extent all programs under the office performed well as scheduled. ~,J) ·········•····•·•········•···•·····• THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF CONTROLLER AND AUDITOR GENERAL ZANZIBAR. RESPONSIBILITY OF THE ACCOUNTING OFFICER ON THE ANNUAL FINANCIAL STATEMENTS In accordance with the Public Finance Act, 2016, the Controller and Auditor General is responsible for the maintenance of adequate accounting records and the preparation and integrity of the annual financial statements and related information. The annual financial statements have been prepared on cash basis in accordance with International Public Sector Accounting Standards (IPSAS) and the Public Finance Act, 2016. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and presentation of the financial statements that are free from - material misstatement, whether on account of fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances which provide reasonable assurance that the transactions recorded are within statutory authority, and properly record the use of all public financial resources by the Government. To the best of our knowledge, the system of internal control has operated adequately throughout the reporting period and that the records and underlying accounts provide a reasonable basis for the preparation of the Financial Statements for the year ended 31th Aug 2019. Procurement of goods, works and consultancy and non-consultancy service to the extent that they are reflected in these financial statements have been done in accordance with the Public Procurement Act of 2016 and its Regulations. In our opinion, these financial statements present fairly all-material respect of the operations of the Office for the year ended 31th Aug, 2019. c----.... -/ .................................... THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF CONTROLLER AND AUDITOR GENERAL ZANZIBAR. DECLARATION OF THE HEAD OF FINANCE/ACCOUNTING OF THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR (OCAGZ) The National Board of Accountants and Auditors (NBAA) according to the power conferred under the Auditors and Accountants (Registration) Act. No. 33 of 1972, as amended by Act No. 2 of 1995, requires financial statements to be accompanied with a declaration issued by the Head of Finance/Accounting responsible for the preparation of financial statements of the entity concerned. It is the duty of a Accountant to assist the Management on behalf of the Controller and Auditor General to discharge the responsibility of preparing financial statements of an entity showing true and fair view of the entity position and performance in reporting requirements. Full legal responsibility for the preparation of financial statements rests with the management.. I, Yussuf A. Hassan, the head of Finance/Accounting of the Office of the Controller and Auditor General Zanzibar hereby acknowledge my responsibility of ensuring that financial statements for the year ended 31th Aug,2019 have been prepared in compliance with applicable accounting standards and statutory requirements. I thus confirm that the financial statements give a true and fair view position of the OCAGZ as on that date and that they have been prepared based on properly maintained financial records . ..... Signed by: ........... L ~. . Position: Chief Accountant ,._,iJ l 2. z.01- C Date: ............................................... . E.K MANGESHO & COMPANY Certified Public Accountants 5th FloorCo-ArchitectureBuilding, 12 Uhuru Street, Dar Es Salaam P.O. Box 20098, Tel: 2180117, Fax: 2180190 E-Mail: ekmangesho@yahoo.com AUDIT REPORT ON THE FINANCIAL STATEMENT AUDIT OF THE WORLD BANK IBRD - IDA FUNDS A WARDED TO OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR TO PROVIDE SUPPORT FOR A PROGRAMME IN CAPACITY BUILDING PROJECT GRANT AGREEMENT NO TFOA4610 FOR THE PERIOD ENDED 30TH AUGUST, 2019. REPORT OF THE INDEPENDENT AUDITOR TO COUNTRY DIRECTOR WORLD BANK P.O. BOX 2054, DAR ES SALAAM TANZANIA. 1. UNQUALIFIED OPINION We have audited the Financial Statements of the Office of the Controller and auditor General Zanzibar set out on pages 11 to 17 for the period ended30 1h August 2019 which comprise the: Statement of receipts and payments Statement of Cash Flows Statement of Budget versus Actual Amounts Summary of principle accounting policies and explanatory notes A list of material assets acquired with project funds In our opinion the financial statements referred to above present fairly, in all material respects the program revenue, costs incurred and reimbursed and commodities and technical assistance directly procured by the World Bank !BROIDA Grant No. TFOA 4610 for the period then ended in accordance with the terms of the agreements and in conformity with the basis of accounting described in Notes 1 to 11 .. 2. INTERNAL CONTROL We have reviewed internal control of OCAGZ over the financial reporting and our tests of its compliance with the agreement of World Bank. In planning and ferforming our audit of the financial statements of OCAGZ for the 1 period ended 30 August, 2019 we obtained an understanding of OCAGZ internal control. With respect to those internal controls we obtained an understanding of the design of - relevant policies and procedures and whether they have been placed in operation and we assessed control risk in other auditing procedures for the purpose of expressing our opinion on the financial statements and to provide an opinion thereof. 8 Our consideration of internal control would not necessarily disclose all matters in internal control that might be material weakness under established standards. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control elements does not reduce to a relatively low level the risk that error or fraud in amounts that would be material in relation to the financial statements may occur and not be detected within a timely period. 3. BASIS OF OPINION Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standard of Supreme Auditing Institutions (ISSAis). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about amounts and disclosures in financial statements. The procedures selected depend on the auditor's judgments, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers OCAGZ internal control relevant to the project preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the project financial report. In addition, the Agreement with the World Bank requires us to satisfy ourselves that the accounts have been prepared in accordance with the appropriate accounting standards and that reasonable precautions have been taken to safeguard the collection of revenue receipt, custody, disposal, issued and proper use of public property, and that the law, directions and instructions applicable thereto have been duly observed and expenditures of public monies have been properly authorized. Further, we are required to state in our audit report whether or not the auditee has complied with the provision of the World Bank instructions. As required by Audit Instruction for World Bank Development Project whose financial support is channeled through the Government of the United Republic of Tanzania we further report that: (i) The Financial Project Report match with the Bookkeeping , as far as it appears from our examination of those financial statements; (ii) The Financial Project Report Corresponds with the Project Agreement, (ii) The Received funds match with the Bookkeeping records; (iii) The bookkeeping matches with the Receipts; (iv) There are proper Receipts for the transactions, (v) There is adequate Bookkeeping, including journal and General Ledger, (vi) The changes in the list of Fixed Assets match with the Receipts; (vii) The approved Financial Project Report is free from material misstatements, (viii) The received and unused funds were properly included in the ending balance of the Financial Project Report. - (ix) The expenses in the Financial Project Report are in line with the approved allocated budgeted and activity plan (x) Internal control system of the organization are in place and there are not material weaknesses noted for improvement. 4. RESPONSIBILITY OF THE OCAGZ ACCOUNTING OFFICER As provided under section 45 of the Public Audit Act 2008 and the World Bank Agreement the OCAGZ Accounting Officer is responsible for keeping proper records of all revenues, expenditures, assets, liabilities and financial transactions and maintain internal controls relevant to the preparation of financial statements. 5. RESPONSIBILITIES OF THE AUDITOR Our responsibility as auditors is to form and issue an independent opinion on the OCAGZ financial statements based on the audit. Our specific responsibilities are to examine, enquire into and audit to obtain reasonable assurance whether financial statement of OCAGZ as a whole are fairly stated and free from material misstatements, whether due to fraud or error. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted with ISSAis and ISAs will always detect a material misstatement when it exists. We believe that, the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Report on Other Legal and Regulatory Requirements Compliance with Procurement Laws We state that OCAGZ have generally complied with the provisional of the Public Procurement Act, 2011 and its related Regulations of 2013 and have complied with the World Bank Procurement requirements. DAR ES SALAAM FEBRUARY, 2020 THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR. STATEMENT OF RECEIPT AND PAYMENTS GRANT NO. TFOA4610 FOR THE PERIOD ENDED 31 TH AUG, 2019. QUESSTIONED INELIGIBLE UNSUPPORTED 2018/2019 NOTE US$ US$ US$ RECEIPTS Grants 11 94,525.40 - - Grants 137,939.70 - - TOTAL RECEIPTS 232.465.10 - - PAYMENTS Operations Supplies and Consumable Goods 9 209,685.70 - - Sub Total 209.685.70 - - Capital Expenditure Purchase of Assets 10 20,510.17 - - Sub Total 20.510.17 - - Total Payments Increase (Decrease) in Cash 2,269.23 - - Cash at the Beginning of the Year 0.00 - - Cash at the End of the Year 2.269.23 - - - ~ / . ·.'-....-/ / ~ ............................. FATMA MOH'D SAID CONTROLLER AND AUDITOR GENERAL ZANZIBAR. THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR. STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 TH AUG, 2019. NOTE 2018/2019 QUESTIONED COSTS INELIGIBLE UNSUPPOTED US$ US$ US$ Cash Flow from Operating Activities Receipts 11 Grants 94,525.40 - - Grants 137,939.70 - Total Receipts 2322465.10 - - Payments Supplies and Consumable 9 209,685.70 - - Total Payments 209.685.70 - Net Cash Flow From Operating Activities 222779.40 - -- Cash Flow from (used in) Investing - - Activities 10 202510.17 Purchases of Assets - - Net Increase(Decrease)in Cash Equivalents 2,269.23 - - Cash and Cash Equivalents at the Beginning of 0.00 - - the Year 2,269.23 Cash and Cash Equivalents at the End of the Year • ~/ FATMA M. SAID CONTROLLAR AND AUDITOR GENERAL ZANZIBAR. THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR • STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNT FOR THE PERIOD ENDED 30TH AUGUST, 2019 (Budget approved on the Cash Basis, classification of Payments by Nature) Budget Actual Difference (A) (B) (A-B) RECEIPTS US$ US$ US$ Grant 270,000.00 232,465.10 37,534.90 Total Receipts 270,000.00 232,465.10 37,534.90 PAYMENTS BY COMPONENTs Component 1: Strengthening Professional Capacity 193,000.00 195,136.30 (2,136.30) Component 2: Streng partnership between the SAi and 40,000.00 0.00 40,000.00 its stakeholders Component 3: Project Management Monitoring Evaluation and Audit 20,000.00 14,549.40 5,450.60 CAPITAL EXPENDITURE Purchase of Assets 17,000.00 20,510.17 (3,510.17) Total Payment 270,000.00 230,195.87 39,804.13 ,_,,t, Net Cash Flows 0.00 (2,269.23) .....••..••...••...•...•. FATMA M. SAID CONTROLLER AND AUDITOR GENERAL. ZANZIBAR. THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR NOTES TO THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 30TH AUGUST, 2019 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. 1. Basis of Preparation The financial statements have been prepared in accordance with Public Finance Management Act, No. 12 of 2016, and comply with the requirements of International Public Sector Accounting Standards (IPSAS), Cash Basis of Accounting and the accounting Policies have been applied consistently throughout the period. The reporting period for these financial statements is the financial year of the World Bank, which runs from 1st Sept 2018 to the 31th Aug, 2019. 2. Authorization Date. The Financial Statements were authorized for issue on .................... by: ~.J) FATMA M. SAID Accounting Officer. 3. Presentation of Budget Information in the Financial Statement. The Budget information presented with these statements has been prepared on Cash Basis. The Budget approval was for the financial year 2018/2019. The approval of budget as a matter of procedure passed through the Ministry of Finance and Planning and then the Parliament. During the financial year 2018/2019 the Ministry revised some expenditure items to cover unforeseen expenditure items and under/over estimate. 4. Reporting Entity The financial statements are for a public sector entity (The Office of the Controller and Auditor General Zanzibar - OCAG). The financial statements encompass the reporting entity as specified in the Public Finance Act no 12, of 2016. The Office of the Controller and Auditor General is controlled by the Revolutionary Government of Zanzibar. The Office of the Controller and Auditor General does not operate its own bank account. The Government operates a centralized treasury (Central Payment Office). THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR NOTES TO THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 30™ AUGUST, 2019 5. Reporting currency and translation of foreign currencies. Functional and presentation currency. The functional and presentation currency is the US dollar, Items included in the financial statements are measured in the currency of the primary economic environment in which the entity operates. 6. Property, Plant and Equipment's (PPE) PPE are initially recorded at construction, acquisition or purchase cost plus direct attributable cost. Where any item of PPE comprises major components having different useful lives, they are accounted for separately, Property that is being constructed or development for future use to support operation is classified as Work in Progress (WIP) and stated at cost until construction or development is complete and is available for use, at which time it is reclassified as PPE in use. The following are PPE available in the Office: IPROPERY COMPUTER 7. Risk Management The Office is subject to a number of financial risks, which arise as a result of transactions with various categories, and is responsible for ensuring appropriate risk management strategies and policies are in place within any mandate provided by legislation. The Categories ofrisk are as follows: ./ Contractual: Typically the failure of contractors to deliver goods or services to the agreed price of specifications . ./ Information: Risk involved with managing information, data protection and freedom of information . ./ Legal/Statutory: Risk associated with failure to comply with legal. ./ Political: Issue relating to the failure to deliver either local or Central Government policy or to meet the administrator's targets. SUMMARY OF SIGNIFICANT ACCOUNTING JUDGEMENT AND ESTIMATES. The preparation of these financial statements reqmres the use of estimates and assumptions that affect some amounts. Although these estimates are based on management best knowledge of current events and actions, actual results ultimately may differ from those estimates. The most significant use of judgment and estimates are as follows: 8. Going Concern The Office has resources and potential to continue in operation for the foreseeable future furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Office ability to continue, therefore, the financial statements continue to be prepared on a going concern basis. THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR THE OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH AUGUST, 2019 Receipt/Payment US$ Note 9 Supplies and Consumable Good Food and Refreshment 15,032.97 Domestic Travel 8,564.84 Foreign Travel 20,000 Stationary Supplies 3,458.57 Tuition Fees 162,629.49 Total Payments 209,685.87 NotelO Purchase of Assets Purchases of Computers 20,510.17 Total of Asset 20,510.17 Note 11 Grants 94,525.40 Grant 137,939.70 Grant 232,465.10 Total