THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PRIVATE SECTOR COMPETITIVENESS PROJECT (PSCP) IDA CREDIT NO.T5326 TA FOR THE FINANCIAL PERIOD ENDED 30TH NOVEMBER, 2018 Controller and Auditor General, National Audit Office, 16 Samora Machel Avenue, P.0. Box 9080, 11101 Dar es Salaam, Tanzania. Tel: 255 (022) 2115157/8, Fax: 255 (022) 2117527 E-mail: oca_g@na~o.tz Website: www.nao.go.tz December, 2018 AR/PSCP/2017 /2018 TABLE OF CONTENTS Abbreviations ..................................................................................... iii 1.0 GENERAL INFORMATION ................................................................. iii 1. 1. Mandate ..................................................................................... 1 1.2. Vision, Mission and Core Values .......................................................... 1 1.3. Audit Objectives ........................................................................... 2 1.4. Audit Scope ................................................................................. 2 1.5. Audit Methodology ......................................................................... 2 2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ......... 3 ]] National Audit Office AR/CG/PSCP /2017/2018 Abbreviations CAG Controller and Auditor General ISSAls International Standard of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards PAA Public Audit Act No.11 of 2008 PAR Public Audit Regulation, 2009 PFA Public Finance Regulations, 2009 PPA Public Procurement Act, 2011 PPR Public Procurement Regulations, 2013 PSCP-AF Private Sector Competitiveness Project - Additional Financing Ill National Audit Office AR/CG/PSCP /2017/2018 1.0 GENERAL INFORMATION 1. 1. Mandate The statutory duties and responsibilities of the Controller and Auditor General are given under Article 143 of the Constitution of the URT of 1977 (revised 2005) and in Sect. 10 (1) of the Public Audit Act No.11 of 2008. 1. 2. Vision, Mission and Core Values Vision To be a highly regarded Institution that excels in Public Sector Auditing. Mission To provide high quality audit services that improves public sector performance, accountability and transparency in the management of public resources. Core Values In providing quality services, NAO is guided by the following Core Values: ../ Objectivity: We are an impartial public institution, offering audit services to our clients in unbiased manner . ../ Excellence: We are professionals providing high quality audit services based on standards and best practices . ../ Integrity: We observe and maintain high standards of ethical behavior, rule of law and a strong sense of purpose . ../ People focus: We value, respect and recognize interest of our stakeholders . ../ Innovation: We are a learning and creative public institution that promotes value added ideas within and outside the institution . ../ Results Oriented: We are an organization that focuses on achievement based on performance targets . ../ Team work Spirit: We work together as a team, interact professionally, share knowledge, ideas and experiences. We do this by:- • Contributing to better stewardship of public funds by ensuring that our clients are accountable for the resources entrusted to them; • Helping to improve the quality of public services by supporting innovation on the use of public resources; • Providing technical advice to our clients on operational gaps in their operating systems; • Systematically involve our clients in the audit process and audit cycles; and • Providing audit staff with appropriate training, adequate working tools and facilities that promote their independence. © This audit report is intended solely for the information of Prime Minister's office (PSCP- AF) and the World Bank. However, upon release by the World Bank, it becomes a public record and its distribution may not be limited. National Audit Office AR/CG/PSCP /2017/2018 1. 3 Audit Objectives To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and are prepared in accordance with an applicable financial reporting framework; and whether laws and regulations have been complied with. 1.4 Audit Scope The audit was carried out in accordance with the, the International Standards of Supreme Audit Institutions (ISSAls) and other audit procedures as were deemed appropriate under the circumstances. This covered the evaluation of the effectiveness of the financial accounting system and internal control over various activities of the PSCP- AF. The audit was conducted on a sample basis; therefore, the findings are confined to the extent that records, documents and information requested for the purpose of the audit were made available to me. Audit findings and recommendations arising from the examination of the accounting records, appraisal of the activities as well as evaluation of the Internal Control System which requires management's attention and actions, are set out in the management letter issued separately to the PSCP- AF As an auditor, I am not required to specifically search for fraud and therefore, my audit cannot be relied upon to disclose all such matters. However, my audit was planned in such a way that I would have reasonable expectations of detecting material errors and misstatement in the financial statements resulting from irregularities including fraud. The responsibility for detection, prevention of irregularities and the maintenance of an effective and adequate system of internal control rests with the management of the PSCP- AF 1.4 Audit Methodology My audit approach included tests of the accounting records and other procedures in order to satisfy the audit objectives. My audit procedures included the following: • Planning the audit to identify and assess risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, including the entity's internal controls. • Obtain sufficient appropriate audit evidence about whether material misstatements exist, through designing and implementing appropriate responses to the assessed risks. • Form an opinion on the financial statements based on conclusions drawn from the audit evidence obtained. • Follow up on the implementation of the previous year's audit findings and recommendations to ensure that proper action has been taken in respect of all matters raised. 2 National Audit Office AR/CG/PSCP/2017 /2018 2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL The Permanent Secretary and Accounting Officer, Prime Minister's Office, P. 0. Box 980, DODOMA Report on the audit of financial statements for the period ended 30 November, 2018 Unqualified Opinion I have audited the accompanying financial statements of PSCP- AF, which comprise the statement of financial position as at 30th November, 2018 and the statement of financial performance, the statement of changes in net assets/equity, the cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies set out in the attached Financial Statements. In my opinion, the accompanying financial statements present fairly in all material respects, the financial position of PSCP- AF as at 30th November, 2018, and its financial performance and its cash flows for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS) Accrual basis of accounting and in the manner required by the Public Finance Act, 2001 revised 2004. Basis for Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the financial statements section of my report. I am independent of Private Sector Competitiveness Project - Additional Financing in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to my audit of the financial statements in Tanzania, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Responsibilities of Management and those charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IPSASs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 3 National Audit Office AR/CG/PSCP /2017 /2018 In preparing the financial statements, management is responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the entity's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, Sect. 10 (2) of the PAA No.11 of 2008 requires me to satisfy myself that, the accounts have been prepared in accordance with the appropriate accounting standards. Further, Sect. 48(3) of the Public Procurement Act No.7 of 2011 requires me to state in my annual audit report whether or not the audited entity has complied with the provisions of the Law and its Regulations. Report on Other Legal and Regulatory Requirements Compliance with the Public Procurement Act, 2011 In view of my responsibility on the procurement legislation and taking into consideration the procurement transactions and processes I have reviewed as part of this audit, I state that, PSCP-AF procurement transactions and processes have generally complied with the requirements of the Public Procurement Act No. 7 of 2011 and its underlying Regulations of 2013. ~a%7JC,- Salhina M. Mkumba Ag. CONTROLLER AND AUDITOR GENERA 31 December 2018 4 National Audit Office AR/CG/PSCP/2017/2018 National Audit Office of Tanzania, P.O. Box 9080, 11101 Dar es Salaam, Tanzania. Tel: 255 (022) 2115157/8 Fax: 255 (022) 2117527 Email: ocag@nao.go.tz Copy to: The Chief Secretary, State House, P.O. Box 9120, 1 Barack Obama Road, 11400 DAR ES SALAAM. Permanent Secretary, Ministry of Finance and Planning, Treasury Square Building, 18 Jakaya Kikwete Road, P.O. Box 2802, DODOMA. World Bank Representative, 50 Mirambo Street, P.O. Box 2054, DAR ES SALAAM. Project Coordinator, Private Sector Competitiveness Project (PSCP), Prime Minister's Office, 2 Magogoni Street, P .0. Box 3021, 11410 DAR ES SALAAM. 5 National Audit Office AR/CG/PSCP /2017/2018 PRIME MINISTER'S OFFICE - FINANCIAL STATEMENTS FOR PRIVATE SECTOR COMPETITIVENESS PROJECT - ADDITIONAL FINANCING, CREDIT NO. T5326TA FOR THE YEAR ENDED 30TH NOVEMBER 2018 NOVEMBER 2018 REPORT OF THE PRIVATE SECTOR COMPETITIVENESS PROJECT- ADDITIONAL FINANCING (PSCP-AF) AND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 3QTH NOVEMBER 2018 TABLE OF CONTENTS 1 GENERAL INFORMATION ...................................................................................................................... 2 2 SUMMARY OF ACHIEVEMENT DURING THE YEAR 2017/18 .......................................................... 4 5.0 STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH NOVEMBER 2018 ........................................................................................... 11 6.0 STATEMENT OF DECLATION OF THE HEAD OF FINANCE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH NOVEMBER 2018 ............................................................... 12 7. STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED .................................... 13 $~ 8. STATEMENT OF FINANCIAL POSITION AS AT 3QTH NOVEMBER 2018 ............... u ..................... 14 9. STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 NOVEMBER 2018 ... 15 10. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH NOVEMBER 2018 ....................... 16 11. STATEMENT OF COMPARISON BETWEEN BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED ON 30TH NOVEMBER 2018 ..................................................................................................... 17 12. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 30TH NOVEMBER 2018 18 1 REPORT OF THE PRIVATE SECTOR COMPETITIVENESS PROJECT- ADDITIONAL FINANCING (PSCP-AF) AND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH NOVEMBER 2018 1 GENERAL INFORMATION PRINCIPAL PLACE OF BUSINESS TACAIDS BUILDING 15T FLOOR, SOKOINE DRIVE /LUTHULI STREET P.O.BOX 3021 DAR ES SALAAM BANKERS Bank of Tanzania P.O.BOX 2939 DAR ES SALAAM NATIONAL MICROFINANCE BANK, Bank House Branch P.O.BOX 9031, DAR ES SAMAAM Email:info@nmbtz.com AUDITORS The Controller and Auditor General National Audit Office of Tanzania (NAOT) Samora Avenue/Ohio Street, P.O. BOX 9080 DAR ES SALAAM Email:ocag@nao.go.tz 2 MANAGEMENT REPORT AND FINANCIAL STATEMENTS OF THE PRIVATE SECTOR COMPETITIVENESS PROJECT (PSCP) FOR THE YEAR ENDED ON 3QTH NOVEMBER 2018 1. Introduction This report presents the financial statement of the Private Sector Competitiveness Project Additional Financing (PSCP-AF) during the period from l5t July 2017 to 3Qth November 2018. PSCP-AF Project was funded through IDA' s Credit Agreement No 5326-T A. The Project was implemented in compliance with the requirements of the Development Credit Agreement (DCA) signed between the Government of the United Republic of Tanzania and the World Bank (IDA) on 17th January, 2014 that became effective on 19th April 2014. The PSCP-AF credit number 5326TA was expected to scale up activities under two components of the original Private Sector Competitiveness Project (PSCP) which included: i) Strengthening the Business Environment and ii) improving access to financial services. PSCP-AF was divided into three implementing components as follows:- (i) Component 1-Strengthening the Business Environment. This component was implemented by Ministry of Lands Housing and Human Settlement Development (MLHHSD), Business Registration and Licensing Authority (MIT) and President Delivery Bureau (PDB) (ii) Component 2- Improving Access to Financial Services. This component was implemented by Bank of Tanzania(BOT) (iii) Component 3 -Project Management. Coordination unit was under Prime Minister's Office PSCP-AF main objective was to support Strengthening of Business Environment in Tanzania including land administration reform and deepening access to financial services. The Project sought to reduce costs of doing business while increasing the capacity of the local private sector to participate in domestic and international markets and to access appropriate financial services. The Project provided an additional credit amount of about US$ 60.2 million for the period ending July 31, 2018. During the reporting period, a total amount of USD 29,403,046.89 was allocated for implementation of planned activities. Up to 30th November 2018, a total amounting to USD 22,181,653.97 had been utilized representing an overall ratio of 75% against plan. The funds received were utilized by the MDAs implementing project activities under strengthening Business Environment, access to finance and Project Management components. 3 2 SUMMARY OF ACHIEVEMENT DURING THE YEAR 2017/18 2.1 Strengthening Business Environment This component constitutes three sub components that are Land Administration Reform, Business Registration Reform and support to Big Result Now. 2.1.1 Land Administration Reform: This sub-component supports implementation of key activities identified under Business Environment Lab within Big Result Now framework. Specifically in (i) Infrastructural Interventions, (ii) Strengthening of Legal and Regulatory Framework (iii) Land Use Planning in Urban areas and Regularization of tenure rights (iv) Development of Guidelines for undertaking inventory of Government Land (v) Regulatory simplification of Land Administration Services. 2.1.1.1 Infrastructure Intervention (i) Integrated Land Management Information System(ILMIS): ILMIS Project involves design, installation and commissioning of ILMIS in the 5 Offices namely Survey and Mapping Division, Registration of Title Unit, Land Administration Division, Dar es Salaam Land Zonal Office covering Kinondoni and Ubungo Municipal Councils. In general, ILMIS contract is currently estimated to have been completed by about 73%. As of 31st July 2018 at Dar es Salaam Zone, Kinondoni Municipal and Ubungo Municipal Councils documents have been integrated in the system. System Maintenance and Support was - planned to be 12 months that start after the completion of the pilot stage of ILMIS on 31st July 2018. Also the following activities were completed as of July 2018: i) ICT Equipment has been installed at National Land Information Centre (NLIC), Land Administration Division, Registrar of Titles and Surveys and Mapping Division at Dar es Salaam zone and Kinondoni Municipal Council. ii) Completion of Draft appearance of Electronic Certificate of Right of Occupancy in to the ILMIS system was done. iii) Completion of Draft appearance of paper which will be used to produce Electronic Right of Occupancy in to the ILMIS system was done iv) Construction of Building at Kinondoni and Ubungo land Offices has been completed by 95% and 90% respectively. v) Government Electronic Payment (GEPG) has been integrated into the ILMIS system vi) Government IP MPLS infrastructure has been integrated with NLIC and Land Offices at Kinondoni vii) LAN system has been installed at Dar es Salaam and Coastal zone, Kinondoni and Ubungo Municipal councils. 4 viii) Training on ILMIS use was done to Dar es Salaam and Coastal zone, Kinondoni and Ubungo Municipal councils. ix) NIDA System has been integrated with the ILMIS system. x) Completion of usage of SMS system by mobile phone. xi) ILMIS system has been prepared for issuing of Electronic Certificate of Right of Occupancy. (ii) Supply and Installations of Field Survey and IT Equipment The World Bank approved and issued No Objection to Bid Evaluation report and recommendation for award of the contract on 16th November, 2017. Lot no. 01 for Supply and Installation of Field Survey Equipment was awarded to M/ s Leica Geosystems AG of Heinrich- Wild-Strasse CH-9435 Heerbrugg Switzerland. Advance payment i.e. 10% done and Letter of Credit prepared. Shipping documents received by the Ministry therefore waiting for delivery of equipment by Supplier. Lot no. 02 for Supply and Installations of IT Equipment contract was awarded to M/S SCI Tanzania Ltd AG, P. 0. Box 80015, Dar es Salaam, Tanzania. Goods were received, inspected and the process of distributing to the Land Zonal Offices ongoing. (iii) Supply and Installation of Mapping, Photogrammetry Equipment and Software All bidders were found non responsive due to the fact that, all bidders submitted manufacturers' authorization from distributors instead of the real manufacturers. Request for re-advertisement has been forwarded to World Bank for No Objection. Request for No objection to re-advertise the Tender was not granted on ground that, the remaining time to close the project is not sufficient to undertake the activity. (iv) The establishment of Continuous Operating Reference Station (CORS)Network Evaluation report was submitted to the World Bank on 25-09-2017 for approval. Interim Response was received from the World Bank with comments on 04-10- 2017. The Ministry of Lands decided to drop the activity due to the fact that, the time is not sufficient to undertake the activity as the project shall be closed on 31st July, 2018 2.1.1.2 Strengthening Legal and Regulatory Framework Activities under legal review includes; Translation of Regulations for Urban Planning Act, Translation of Land Use Planning Act and Review of National Land Policy 1995. During this quarter the following were conducted: 5 (i) The Land Use Planning Act has already been translated; (ii) The translation of regulations for Urban Planning Act: Technical and Financial Proposal Evaluation report was approved by the Ministerial Tender Board on 16th July, 2018. Contract was proposed to be awarded to Mr. John Mocho Lubuva but due to the time limit the next processes will not be done. (iii) Revised draft National Land Policy 2018: The revised draft National Land Policy 2018, was submitted to the Cabinet Secretariat for review and discussions; after thoroughly discussions they addressed few comments to be incorporated for improvement of the policy, then will be submitted to IMTC for approval after necessary procedures have been completed. (iv) Draft Survey and Mapping Bill: Evaluation for Technical proposal completed, Technical and Financial Proposal Evaluation report was approved by the Ministerial Tender Board on 16th July, 2018. Contract was proposed to be awarded to M/S Disney International Consultancy Ltd; however due to the time limit the next processes will not be done. (v) Procurement of Miscellaneous Furniture for Land Disputes Resolution: Delivery was done on 29 March, 2018. The distribution to the 12 District Land and Housing Tribunals (Kinondoni, Ilala, Kibaha, Dodoma, kondoa, Tabora, Chato, Musoma, Tarime, Lindi, Moshi and Mbeya) will be done after necessary logistics "'"' have been completed. (vi) Development of a programme to build better serving Valuation System; Request for proposal to be issued to the Shortlisted Consultancy Firms after approval by Ministerial Tender Board. Method of procurement to be changed to Restricted Tendering (RT) from National Competitive Bidding (NCB), due to the facts that, no any response was obtained after open advertisements in the newspapers. 2.1.1.3 Land Use Plan in Urban Areas and Regularization of Tenure rights (i) The Ministry prepared a ten-year programme (2013-2021) for regularization by phases of unplanned settlements in the major cities and towns across the country. The implementation started in Regularisation in Dar es Salaam at Kimara and Saranga wards in Ubungo municipality and completed, but issuance of CROs is in progress. Titling is in progress and is expected to continue even if the field work was completed. Phase one of the scaling up regularisation project is planned to be 6 im.plem.ented in seven (7) Local Urban Authorities of Singida, Musom.a, Tabora, Lindi, Kigom.a Ujiji, Sum.bawanga and Dar es Salaam.. Scoping study was conducted in the six remaining Local Government Authorities (LGAs) of Musom.a, Kigom.a Ujiji, Tabora, Singida, Sum.bawanga and Lindi. 2.1.1.4 Regulatory Simplification of Land Administration Services Under this sub component the specific activities include: (i) Study on Capacity and Human Resources Development Needs (TNA)- International and National Advisers: Evaluation for Technical proposal completed, Evaluation report was submitted to secretary of the Tender Board, then will be submitted to Ministerial Tender Board for approval (ii) Translation of the National Land Use Framework Plan: Technical and Financial Proposal Evaluation report was approved by the Ministerial Tender Board on 16th July, 2018; the award ongoing process. Contract was proposed to be awarded to Mr. Amani Mwakyom.a. (iii) Design of Public Awareness Campaign on SPILL and Land Laws: Lot no.01 for Supply of Video and Audio Equipment; the Contract awarded to M/S. Missana's General Traders; Delivery Completed. (iv) Development of a comprehensive Land Sector Program.: - The Ministry is finalizing the review of Land Policy 1995 and its implementation strategy. Upon approval of said Policy and Strategy, the Ministry will prepare a Comprehensive Land Sector Programm.e by reviewing the existing draft of 10 year programm.e for Planning, Surveying and Land titling in Tanzania (2016/17 - 2020/21) (v) Repair and maintenance of cabinet rails for improvement of the land registry: The work was completed by contractor M/S Dar es Salaam Institute of Technology (DIT). The MLHHSD has decided to drop the following activities because some of them have already been done by using the local fund and other will be done in the future project: i) Conduct revenue and expenditure study for Ministry of Lands ii) Study to identify Reserve Lands and Develop program for surveying iii) National Spatial Data Infrastructure (NSDI) specialist to develop policy and operational guidelines 7 iv) Specialist to study and recommend workable model to acquire High Resolution Satellite Imagery (DRS) v) High Resolution Satellite Imagery for the whole country- formalization and other users vi) Technical Advisory on development of guidelines for undertaking inventory for government land vii) Valuation expert for drafting Regulations for the Valuation Act. viii)Establishment of valuation database 2.1.2 Business Registration reform: This component aims at lowering costs of establishing and operating business in Tanzania through minimization of policy, legal, regulatory and institutional barriers to business entry, operation and exit. Is for this reasons the government decided to use some of project funds to achieve the above. (i) Streamlining and simplification of the business licensing regime - Ministry of Industry and Trade The Government has formed a Business Licensing Reform Committee with the aim of proposing reforms to improve Business Environment in Tanzania through reduction of the regulatory burdens and risks faced by business in complying with regulations and licensing. The work had done include consultation with regulatory authorities over (67) and private sector association and relevant stakeholders. The consultation involved all economic productive sector including Tourism, Agriculture, Mining, Transport, Livestock, Fishing, Communications, Informal Sector and other related. Given consultation of sector mentioned above, the Analysis has been conducted on instrument and comment collected through reform committee and technical team, and finally both team managed to come up with Blueprint for Regulatory Licensing Reform in Business Environment. Then the syndication has been done including presenting the draft blueprint to Inter-Ministerial Technical Committee (IMTC) and to the Cabinet. The final reports -Blueprint for Regulatory Reforms to Improve the Business Environment is in place with all reforms recommendations ready for implementation. Printing of final report is underway. (ii) An impact on business licensing reform is on Class A license which was issued by the Ministry of Industry and Trade. From July, 2017 MIT will start issuing Class A license through BRELA Head Office and Zone office. There is no need for a normal citizen to travel to Dar es Salaam to acquire a license which was only issued in the Ministry. (iii) Ministry of Agriculture during financial year 2017/2018 budget mentioned to slash estimated 80 fees, permit and levies including license that are affecting small scale farmer and private sector at large. 8 2.2 Access to Finance: The project also supported various activities coordinated by the Bank of Tanzania as follows: (i) Insurance Consultancy service to develop risk based capital and solvency (RBCS) Requirement for Tanzania Insurers and Re-insurers (including introduction of an own risk solvency assessment (ORSA) is underway. (ii) Establishment of Tanzania Commodity Exchange (TCX) is completed. Concurrently with the process of establishment of TMX, A Commodity Exchange Operation Expert (Resident Advisor) for the Project engaged. The Resident Advisor is assisting among other things development of commodity exchange rules book and training of training of commodity exchange staff. Among other crops, sesame, cotton and coffee was preferred to be traded in the TMX. (iii) TMX conducted a meeting with Tanzania Crop Board and Warehouse Receipt Regulatory Board (WRRB) to discuss the Tanzania Coffee Board Management in Kilimanjaro on trading coffee in the TMX. This was as directed by the Prime Minister Hon Majaliwa Kassim Majaliwa when visited TMX on 2nd February, 2018 whereby, he gave directives to all crop boards Director Generals and their management teams to have working sessions with TMX and ensure their crops are traded in the exchange market. Among the Crop Boards ordered by Hon Prime Minister, included Tanzania Coffee Board and Tanzania Cotton Board. (iv) To introduce the concept of WRS and TMX in international livestock trade. The livestock trade is done in Arusha at Longido District. (v) To further continue to do preparations of introducing Sesame and other crops in WRS and be traded in the TMX. The regions included Kilimanjaro, Manyara and Dodoma. (vi) Warehouse Receipt Regulatory Board (WRRB) As of now the WRRB in collaboration with TMX were able to create awareness to stakeholders, board members in two regions i.e. Lindi and Mtwara on Commodity Exchange and Market Intermediaries. Article on WRS was also published in the local newspaper. Introduction of SESAME into WRS agreed so as to increase coverage of crops under WRS. SESAME was among the crops identified by the Government to be sold through Commodity Exchange Market at the beginning. 2.3 Project Management Unit (i) Tourism Policy Review was also added on for Project support. The Ministry of Natural Resources and Tourism conducted stakeholder workshops with the aim of gathering information from the key stakeholders in the tourism sector as an input to the revision of the National Tourism Sector. The final draft of National Tourism Sector is in place. 9 (ii) The project extended operational support to the 10th Meeting of National Business Council conducted in Dar es Salaam 3.0 Contingent Risk: Funds Allocated to the IDA Credit# 5326TA The allocated (approved) credit as stipulated in the Development Credit Agreement is SDR 39,200,000 equivalent to USD 60,200,000.00 as signed between the Government of the United Republic of Tanzania and the World Bank (IDA) on 17th January, 2014 which became effective of 19th April 2014. As at 30th November 2018 the allocated credit SDR 39,200,000 was equivalent to USD 54,222616.00 due to exchange rate fluctuation generating a loss of USD 5,977,384.00 4.0 Funds Disbursed to the Project during the Year 2017/18 During the year 2017/18 the total amount of US$ 14,319,734.00 was disbursed to the project from IDA Credit. The project spent US$ 22,181,653.97 out of planned fund of USD 29,403,046.89 as shown in the table below. Components Implementing Project Planned Funds Actual Expenditure (USD) (USD) Component 1: Strengthening of Business Environment • Land Administration Reforms 22,036,738.33 18,264,725.68 • Business Registration Reform 365,183.00 293,675.24 • Component 2: Improving Access to Financial 4,982,255.97 2,124,136.73 Services Component 3: • Project Management 1,597,725.59 1,310,228.47 • Support to develop National Tourism 421,144.00 188,887.85 Plan Total 29,403,046.89 22,181,653.97 10 5.0 STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH NOVEMBER 2018 It is Management's responsibility to prepare financial statements which give a true and fair view of the state of affairs of the project showing the results of the operations of the project at the end of each financial year. The management responsibility at any time is to ensure that proper accounting records disclose with reasonable accuracy the financial position of the project. Further, the management is responsible for safeguarding the assets of the project, ensuring the project's compliance with all regulatory and legal requirements; and consequently taking reasonable steps for the prevention and detection of fraud, error and other irregularities. The management accepts responsibility for the annual financial statements of PSCP-AF, which have been prepared using appropriate accounting policies and standards supported by reasonable and prudent judgments and estimates, in conformity with International Public Sector Accounting Standards for the year ending 30th November 2018. The Management is of the opinion that the financial statements give a true and fair view of the state of financial affairs of the Project and its financial performance. The Management accepts responsibility for the maintenance of accounting records as well as adequate systems of internal financial control which may be relied upon in the preparation of financial statements. ~=t: Accounting Officer __ Date:---~--\\_\_~_\._'( II 6.0 STATEMENT OF DECLATION OF THE HEAD OF FINANCE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH NOVEMBER 2018 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 the statement of declaration issued by the Head of Finance/ Accounting responsible for the preparation of financial statement of the entity concerned. It is the duty of professional accountant to assist the Management to discharge the responsibility of preparing the financial statement of the project showing true and fair view position of the project in accordance with the International Public Sector Accounting Standards (IPSAS) and the requirements Financing Agreement/Development Credit Agreement. Full legal responsibility for financial statements rests with the management. I Veronica Amos being the Head of Finance of Private Sector Competitiveness Project here by acknowledge my responsibility of ensuring that financial statements for the year ended 30th November 2018 have been prepared in compliance with the International Public Sector Accounting Standards and the Financing Agreement/Development Credit Agreement. I thus confirm that the financial statements give true and fair view position of the Private Sector Competitiveness Project as on that date and that they have been prepared based on the properly maintained financial recordsJ ~ Signed by: VERONICA AMOS WAGALA ....~~ ............... . NBAA Membership No FCPA (T) 1398 Date: 30 NOVEMBER, 2018 12 7. STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30TH NOVEMBER 2018 2017/18 2016/17 Notes USD USD Revenue from non-exchange transactions Grants revenue 4 23,082,957.70 9,531,026 Amortization of capital grants 4 19,957.32 14,351 23,102,915.02 9,545,377 Revenue from exchange transactions Foreign currency exchange gain/ (loss) (2,667.19) 103,841 Other income (2,667.19) 103,841 Total revenue 23,100,247.83 9,649,218 Expenses Depreciation 9 19,957.32 14,351 Salaries and staff benefits 5 739,863.47 763,587 Operating expenses 6 22,340,427.04 8,871,280 23,100,247.83 9,649,218 Surplus/(deficit) for the year Note 4-9 forms an integral part of these financial statements ~ .....................q...\\,. i 'y .............. . ·········~··· ACCOUNTING OFFICER DATE 13 8. STATEMENT OF FINANCIAL POSITION AS AT 30TH NOVEMBER 2018 2017/18 2016/17 Notes USD USD ASSETS CURRENT ASSETS Cash and Cash Equivalents 7 1,471,214.84 9,335,802 Other receivables 13 73,074.36 87,957 1,544,289.2 9,423,759 NON CURRENT ASSETS Property, Plant and equipment 9 23,981.56 25,046 23,981.56 25,046 TOTAL ASSETS 1,568,270.76 9,448,805 LIABILITIES CURRENT LIABILITIES Deferred income grant 8 572,578.30 9,422,349 Other payables 12 971,710.90 1,410 1,544,289.2 9,423,759 NON-CURRENT LIABILITIES Capital Grants 11 23,981.56 25,046 TOTAL LIABILITIES 1,568,270.76 9,448,805 NET ASSETS 0 0 NET ASSETS Accumulated Surplus 0 0 Note 7-11 form integral part of these financial statements ..........~ : : r .............. ................Y.1.l~.\~:~ .~ ....... ACCOUNTING OFFICER DATE 14 9. STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 NOVEMBER 2018 ACCUMULATED TOTAL SURPLUS USD USD At 01 July 2017 Surplus/ (deficit) for the year At 30 November 2018 At 01 July 2016 Surplus/ (deficit) for the year At 30 June 2017 15 10. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH NOVEMBER 2018 2017/18 2016/17 Note USD USD CASH FLOWS FROM OPERATING ACTIVITIES Receipts Grants received 14,319,734.00 9,200,000 Other income 14,319,734.00 9,200,000 Payments (763,587) (739,863.47) Salaries and staff benefits (8,863,962) (21,419,506.08) Payments to supplier and operating costs 9,627,549 (22,159,369.55) Cash flows used in operating activities (7,839,635.55) (427,549) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, Plant and equipment (22,284.42) (7,318) Cash flows used in investing activities (22,284.42) (7,318) CASH FLOWS FROM FINANCING ACTIVITIES Capital grants received Decrease in cash and cash equivalent (7,861,919.97) (434,867) Cash and cash equivalent at 01 July 9,335,802.00 9,666,828 Gain/ (loss) in exchange fluctuation (2,667.19) 103,841 Cash and Cash Equivalent at 30 November 18 7 1,471,214.84 9,335,802 ~q\~)t .......................... l .............. . ACCOUNTING OFFICER DATE 16 11. STATEMENT OF COMPARISON BETWEEN BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED ON 3QTH NOVEMBER 2018 Budget Item Original Final Budget Actual Variance Budget Budget (USD) (USD) (USD) Utilization (USD) in% component 1: Strengthening of Business Environment 22,071,921.33 22,401,921.33 18,558,400.92 3,843,520.41 83% component 2: Improving Access to Financial 43% 4,982,255.97 2,124,136.73 2,858,119.24 Services 5,613,919.97 component 3: Project 1,875,101.58 2,018,869.59 1,499,116.32 519,753.27 Management 74% Grand Total 29,560,942.88 29,403,046.89 22,181,653.97 7,221,392.92 75% 12. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 3QTH NOVEMBER 2018 NOTEl: PRINCIPAL ACCOUNTING POLICIES (i) Basis of Preparation These financial statements of Private Sector Competitiveness Project (PSCP) includes all sub-Programme covered in the Development Credit Agreement number 5326TA between Government of Tanzania and International Development Association (IDA). The financial statements have been prepared in accordance with International Public Sector Accounting Standards accrual basis. (ii) Expenditure Recognition Expenditures for the supply of goods and services are generally recognized at the time of payment. However, invoices not paid at the end of the year for services offered and goods supplied are accrued and included in the list of creditors. (iii) Foreign Currency Translation All amounts are in USD. All transactions denominated in local and other foreign currencies are translated into United States Dollars at the approximate exchange rate ruling at the date of settlement/ transaction basing on the Bank of Tanzania US$ exchange rates. The resulting differences from conversion and translation are disclosed in the statement of financial performance as reconciling item. (iv) Property, Plant and Equipment Property, Plant and equipment are stated at cost less depreciation and impairments. Depreciation is provided so as to allocate the cost of assets on a straight-line basis over the expected useful lives of the assets concern. The principal rates used for this purpose are: % Motor Vehicles 20 Office Equipment 12.5 Software 40 Furniture & Fittings 12.5 Computer Equipment 33.33 The assets' residual values and useful lives and methods of depreciation of property and equipment are reviewed and adjusted if appropriate, at each reporting date.Gains and Losses on disposal of assets are determined and included in the results for the year. 18 (v) Reporting Currency As per Development Credit Agreement the reporting currency is USD. These financial statements are therefore presented on the basis of USD currency. (vi) Employee's benefits a) Retirement benefit obligation The project employees are members of Government Employee Provident Fund GEPF. The scheme will bear all pension obligations. Both employer and employees contribute the statutory fee to the pension funds and the amounts are charged to the statement of financial performance when due. b) Other entitlements The estimated monetary liability for employees' accrued annual leave entitlement at the reporting date is recognized as an expense accrual. The Project also accrues and pays gratuity of 25% of basic salary to its employees who employed in contract terms. Termination benefits are also payable when employment is terminated before the normal retirement/ contract expiry date or whenever an employee accepts voluntary redundancy in exchange for these benefits. (vii) Cash and cash equivalent Cash and cash equivalents are carried in the statement of financial position at face value. For the purpose of cash flow statements cash and cash equivalents, comprise cash in hand and cash at bank. (viii) Financial Risk Management The project activities expose it to a variety of financial risks mainly currency risk. The project's overall risk management Programme focuses on the identification and management of risks and seeks to minimize potential adverse effects on its financial performance. The disclosures below summarize the way the Fund manages key risks. (ix) Foreign Currency Risk Foreign currency risk arises when future commercial transactions or recognized assets and liabilities are denominated in a currency that is not the entity's functional currency. The project transacts both in United States Dollar and Tanzanian Shillings. The foreign exchange exposures are reviewed and controlled by the project on a regular basis. 19 (x) Revenue recognition Revenue from non-exchange transactions Grants Grants are not recognized until there is reasonable assurance that the project will comply with the conditions attaching to them and the grants will be received. Grants whose primary condition is that the project should purchase, construct or otherwise acquire non-current assets are recognized as deferred income in the statement of financial position and transferred to statement of financial performance on a systematic and rational basis over the useful lives of the related assets. Other grants are recognized as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the project with no future related costs are recognized in the statement of financial performance in the period in which they become receivable. Revenue from exchange transaction Fees The project recognizes revenues from fees when the event occurs and the asset recognition criteria are met. To the extent that there is a related condition attached that would give rise to a liability to repay the amount, deferred income is recognized instead of revenue. Other non-exchange revenues are recognized when it is probable that the future economic benefits or service potential associated with the asset will flow to the entity and the fair value of the asset can be measured reliably. Interest income Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. NOTE 2: SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the project's financial statement requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and Liabilities and the disclosure of contingent liabilities, at the reporting date. Uncertainty about these assumptions and estimates could require a material adjustment to carrying amount of the asset or liability affected in the future periods. 20 - Judgments In the process of applying the project's accounting policies, no significant judgments were made by management. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Asset useful lives The useful lives of items of property, plant and equipment are estimated annually and are in line with the rate at which they are depreciated. During the year under review the management reviewed useful lives for property, plant and equipment. The useful lives are disclosed in Note 1 to these financial statements. Impairment of non-financial assets The project assesses whether there are any indicators of impairment for all non- financial assets at each reporting date. If indicators exist, an impairment test is done and any identified impairment loss is recognized in the financial statements. There is no impairment of non-financial assets during the year. Inventories Inventories are expensed in full at the date of purchase and are recognized as expenditure in the financial statement in the financial performance report. However stores ledger is kept to show the closing balance of each stores item at the end of the year. NOTE3: STAND ARDS ISSUED BUT NOT YET EFFECTIVE • IPSAS 33 - First-time Adoption of Accrual Basis International Public Sector Accounting Standards: • IPSAS 34 - Separate Financial Statements • IPSAS 35 - Consolidated Financial Statements • IPSAS 36 - Investments in Associates and Joint Ventures • IPSAS 37 - Joint Arrangements • IPSAS 38 - Disclosure of Interests in Other Entities. All the above standards are effective for accounting period beginning on or after 01 January 2017. • IPSAS 39 - Employee Benefits with effect from 1st January 2018 The standards have no impact in the financial statements of the PSCP project. 21 NOTE4: 2017/18 2016/17 USD USD GRANTS REVENUE Recurrent grants Note 10 23,082,957.70 9,531,026 Amortisation of capital grant Note 11 19,957.32 14,351 23,102,915.02 9,545,377 NOTES: SALARIES AND STAFF BENEFITS ,,1.k, Gratuities 17,643.70 148,966 Leave passage 21,418.00 19,959 Consultancy fees 681,473.77 567,525 Medical Expenses 19,328.00 27,137 739,863.47 763,587 NOTE6: OPERATING EXPENSES Clearing charge 0 6,251 Accommodation 0 6,687 Audit fee 17,326.74 Book Reference and periodicals 0 0 Advertisement & Publicity 32,811.46 44,481 Repair & Maintenance 7,639.47 459 Airfreight cost 0 67,500 Catering Service 0 0 clearing charges 0 15,513 Computers, printers, scanner, and 16,053.90 7)72 other computer related equipment Computer supplies and accessories 7,729.46 Conference facilities 31,413.36 42,283 Consultancy fee 14,490,038.83 2,990,998 Courier services 0 0 Hotel accommodation 16,530.46 0 Diesel 62,668.73 24,158 Electricity 40,330.13 7,395 Internet and Email Connection 6,661.49 3,047 22 ,.. Food and refreshment 39,207.57 43,104 Gifts and prizes 0 0 Freight & Clearing Charges 1,937.17 7,326 Fixture and fitting 6,230.52 Ground Travel(Bus, Railway, Taxi, Etc) 56,133.13 19,611 ICT & Telecommunications Equipment 5,770.48 0 Magazines & DSTV 254.26 0 MDA Assets (Note 9) 6,211,096.75 4,295,462 Meal allowance 0 0 Motor Vehicle insurance 0 0 Office furniture 0 0 Office consumables 28,108.22 12,138 Office Machines and equipment 13,171.82 0 Computers and Accessories 0 7,318 Office renovation 0 1,222 Office Stationary 26,914.05 27,786 Other Operating Cost 97,126.46 79,064 Other training cost 32,106.06 0 Post and Dispatch 0 0 Per Diem-Domestic 360,185.08 685,173 Per Diem-Foreign 27,659.08 121,090 Periodicals and Newspapers 1,111.17 1,600 Professional fee 0 14,663 Printing and Photocopying Costs 73,830.15 13,690 Printing Materials flayer, Posters and 5,356.93 2,836 photocopying Bank charges and commissions 7,852.04 76 Rent office accommodation 389,824.80 69,384 Service and repair(vehicles) 57,081.55 35,787 Staff Training Costs 2,590.65 13,173 Subscription fee 90.95 0 Stationery and Thesis 0 11,869 Telephone and Mobile charges 18,387.21 8,932 Training/ Trainer Fees 0 316 Transport cost 4,193.81 4,457 Travel Ticket- Foreign 60,840.93 64,467 Travel Tickets-Domestic 6,788.84 5,838 Tuition fee 77,373.29 108,955 Visa Application Fee 0 0 22,340,427.04 8,871,281 23 NOTE 7:CASH AND CASH EQUIVALENTS 2017/18 2016/17 USD USD BOT - USD Account (Note 19) 1,471,214.84 8,917,322 NMB - TZS Account 0 59,785 NMB - USD Account 0 358,695 1.471,214.84 9,335,802 NOTE 8: DIFFERED INCOME GRANT 2017/18 2016/17 USD USD Cash and Bank Balance 1,471,214.84 9,335,802 Other Receivable 73,074.36 87,957 Accounts Payable (971,710.90) (1,410) 572,578.30 9,422,349 NOTE 9: PROPERTY, PLANT AND EQUIPMENT Furniture Computer and & Fittings EguiEment Total USD USD USD Cost As at 1 July 2017 11,422.30 39,975.24 51,397.54 Additions 6,230.52 16,053.90 22,284.42 0 Write-offs {949.65) {2,441.42) {3,391.07} At 30 June 2018 14,261.75 53,587.72 70,290.89 Accumulated depreciation As at 1 July 2017 3,506.71 22,845.30 26,352.01 Charge for the year 1,945.83 18,011.49 19,957.32 At 31 July 2018 5,452.54 40,856.79 46,309.33 ""' Carrying amount At 31 July 2018 11,250.64 12,730.93 23,981.56 At 30 June 2017 7,916 17,130 25,046 24 Note that the carrying amount of Asset shown above are assets which are maintained at the fixed assets Register held at PCU. However there are assets acquired during the year which are held at MDA' s respective Ministries as follows; COMPONENTS 2017/18 2016/17 USD USD Component 1: Strengthening of Business Environment • MLHHSD 4,348,100.87 2,572,386 • MIT 152,886.25 45,560 • PDB 0 27,905 Component 2: Improving Access to Financial 0 Services • BOT 1,710,074.90 1,642,205 Component 3: Project Management-PMO 0 7,405 6,211,062.02 4,295,461 The assets shown under PPE is the responsibility of the accounting officer on how to maintain the assets. After the closure of the project assets remained with the beneficiary ministry, 25 2017/18 2016/17 USD USD NOTE 10: DEFERRED INCOME GRANTS Balance at 1 July 9,335,802 9,666,828 Receipts during the year Government of Tanzania 0 0 World Bank 14,319,734.00 9,200,000 Grants available 23,655,536.00 18,866,828 Less Grants utilised during the year NOTE 4 23,082,957.70 9,531,026 Closing balance - Deferred income as at 572,578.30 9,335,802 30 November NOTE 11: CAPITAL GRANTS At 01 July 25,045.53 32,078 Additions made during the year 22,284.42 7,318 Amortisation of Capital Grant (19,957.32) (14,351) Write-offs (3,391.07 As at 30 November 23,981.56 25,046 Note 12: OTHER PAYABLES (note 19) Unpaid Accrued Gratuity for staff 0 1,230 Trade creditors for supplying goods &service 807,023.29 180 Unpaid consultancy fee 164,687.61 0 ,.. 971,710.90 1,410 NOTE 13: ACCOUNTS RECEIVABLE Staff debtors 0 26,503 Safari imprest-MDA 73,074.36 61,454 As at 30 November 73,074.36 87,957 26 The amount USD 73,074.36 is unretired safari imprest for Ministry of Land staff. The letter from Prime Minister's office has been sent to the Ministry of Land Accounting officer to take appropriate action. NOTE 14: RELATED PARTY TRANSACTIONS AND DISCLOSURES The entity regards a related party as a person or an entity with the ability to exert control individually or jointly, or to exercise significant influence over the entity, or vice versa. Members of key management are regarded as related parties and comprise the Project Coordinator, Financial Management Specialist and Procurement Specialist. NOTE 15: KEY MANAGEMENT PERSONNEL REMUNERATIONS Key management short term benefits which were paid included consultancy fees, gratuity and social security contributions as follows: - 30.11.2018 30.06.2017 USD USD Consultancy fee 393,485.72 170,778 Social security contribution 22,322.99 23,850 Leave passage 6,956 9,560 Gratuity 0 70,371 Total 422,764.71 274,559 NOTE 16: TAXATI ON The PSCP Project is subject to income tax laws of Tanzania under the Income Tax Act, 2004 except where tax exemptions has been sought and granted by the Tanzania Revenue Authority (TRA). NOTE 17: CONTINGENT LIABILITIES As at 30th November 2018, the project had unauthenticated claims considered as a contingent liabilities requiring disclosure as a note to financial statement. The claim require further scrutiny for resolution. The claims with management comments are listed below. 27 Name of Comments Supplier /Consultant/Co Amount Activity ntractor USD Supply and The related contract installation of was fully paid. We Local Area could not authenticate Network (LAN) the claim. Recipient no Equipment at PDB Hexatech 64,774.00 longer exist. Implementing Genuine contract exist. Window server No report by the 2012 Network, recipient. No evidence infrastructure, documenting the active directory recipient by the and application defunct Agency-PDB infrastructure, install and configure network applications for PDB Office Hexatech 94,000.00 27,978.00 Contracts were fully executed and fully paid. MLHHSD need to substantiate receipt Renovation of Salu And of extra services NLIC Company Ltd received as per claim. 53,153.10 Contracts were fully executed and fully E&T paid. MLHHSD need Rehabilitation of enterprises to substantiate receipt NLIC LTD of extra services - 28 received as per claim Design of office 81,892.00 These are beyond the core network contracted amount that infrastructure Soft works was fully paid. layout LTD Total 321,797.10 NOTE 18: EVENTS AFfER THE REPORTING PERIOD There are no material events, adjusting or non-adjusting, which have occurred between the reporting date and the date when financial statements are authorized for issue. NOTE 19: REFUND TO WORLD BANK UNUTILIZED CASH AND BANK BALANCE Please note due to the closure of the project the remaining amount was refunded to World bank whereby the creditors as shown in note 12 will be paid direct by the World bank after clearance provided by the beneficiaries. NOTE 20: COMPARATIVE FIGURES Where necessary, comparatives figures have been adjusted to conform to changes in presentation in the current year. The current year financial statement is for seventeen month (i.e. From July 2017 to 30th November 2018), this is caused by the closing project date which is 31st July 2018 and disbursement period which is 30th November 2018 four months after the closing project date therefore cannot be compared with the previous year. NOTE 21: Foreign Exchange Gain/ (Loss) for the year- USD (2,667.19) There is a net loss of USD 2,667.19 resulting from translation of transactions which are denominated in local currency into USD reporting currency NOTE 22: Rate of Exchange for Balance Sheet Items All Assets and liabilities in the Balance Sheet, denominated in local currency have been converted at the exchange rate of 1 USD =2,267.44 TZS, a rate ruling at the reporting balance sheet date (30.11.2018). The resulting differences from conversion and translation have been disclosed in the financial statement in the statement of financial performance. 29 30 PSCP COORDINATION UNIT FIXED ASSET REGISTER ASSET CATEGORY: ICT EQUIPMENT AND COMPUTER SOFTWARE SIN ITEM SUPPLIER ACQUISITIO ACQUISITION COSTS ASSET LOCATION/ DESCRIPTION N DATE US$ TZS CODE SERIAL NO. CUSTODIAN 1 JH 05/11/2014 1,785,000.00 PMO/PS CNC311PZ9N PSCP TECHNOLOGIES 1,061.36 CP/CEP/ DELL DESKTOP AND SUPPLIES MNT/004 OPTIPLEX 7010 LTD 2 JH 05/11/2014 501,500.00 PMO/PS PSCP TECHNOLOGIES CP/CEP/ AND SUPPLIES PCU/001 APC UPS LTD 298.19 3 HP PRINTER JH 05/11/2014 595,000.00 PMO/PS PHKGG14862 PSCP LaserJet Pro 400 M TECHNOLOGIES CP/CEP/ 401dn AND SUPPLIES PRT/001 LTD 353.79 4 JH 15/04/2015 27,390,315.00 PMO/PS CNC406PNAR PSCP TECHNOLOGIES 15,256.51 CP/OEP/ HP SERVER WITH AND SUPPLIES SVR ACCESSORIES LTD /001 5 NAYOPEKER 25.01.2016 1,223.08 PMO/PS 6CM43304B1 PSCP HP ELIET 600 COMPANY 2,655,184.37 CP/CEP/ DESKTOP MNT/003 6 NAYOPEKER 25.01.2016 1,223.08 PMO/PS 6CM43304B2 PSCP HP ELIET 600 COMPANY 2,655,184.37 CP/CEP/ DESKTOP MNT/002 7 NAYOPEKER 25.01.2016 2,476.84 PMO/PS CNB9H6R15H PSCP HP LASERJET COMPANY 5,376,971.96 CP/OE/P PR0500 RT/006 8 HP LASERJET NAYO PE KER 25.01.2016 940.60 PMO/PS SPKGCB22224 PSCP PR0400 M401 WITH COMPANY 2,041,948.54 CP/OE/P SCANNER AND RT/005 COPIER 9 HP LASERJET NAYOPEKER 25.01.2016 940.60 PMO/PS PHKGF45369 PSCP PR0400 M401 WITH COMPANY 2,041,948.54 CP/OE/P SCANNER AND RT/004 31 COPIER 10 NAYOPEKER 25.01.2016 4,896.46 PMO/PS CNB7H6BD94 PSCP HEAVY DUTE COMPANY 10,629,725.01 CP/OE/P COLOR PRINTER RT/007 11 NAYOPEKER 25.01.2016 1,544.96 PMO/PS 6CF4301DN4 PSCP COMPANY 3,353,953.66 CP/CE/L PT/SR- LAPTOP 1/001 30,215.47 59,026,731.45 2016/17 1 JH 29.08.2016 1,882.10 4,078,623.63 PMO/PS H9S5FC2 PSCP TECHNOLOGIES CP/CE/L AND SUPPLIES PT/SR- DELL LAPTOP LTD 1/003 2 JH 29.08.2016 1,882.10 4,078,623.63 PMO/PS GB01W32 PSCP TECHNOLOGIES CP/CE/L AND SUPPLIES PT/SR- DELL LAPTOP LTD 1/006 3 NAYOPEKER 11.10.2016 1,200.00 2,595,636.00 PMO/PS PSCP COMPANY CP/CE/L LAPTOP CORE 15 PT/SR- HP TOUCH 1/005 4 NAYOPEKER 11.10.2016 550.00 1,189,666.50 PMO/PS CND54908YO PSCP COMPANY CP/CE/L LAPTOP INTEL PT/SR- CELERON HP 1/004 5 NAYOPEKER 11.10.2016 550.00 1,189,666.50 PMO/PS PSCP COMPANY CP/CE/L LAPTOP INTEL PT/SR- CELERON HP 1/007 6 JH 16.12.2016 1,254.15 2,708,100.00 PMO/PS PSCP TECHNOLOGIES CP/CE/L AND SUPPLIES PT/SR- DELL LAPTOP LTD 1/008 32 lTOTAL 7,318.35 15,840,316.26 l 2017/18 1 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS S/N PSCP CP/CE/L 5CD64040BD PT/SR- 1/012 2 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS S/N PSCP CP/CE/L 5CD638758L PT/SR- 1/009 3 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS SIN PSCP CP/CE/L 5CD6414F8Z PT/SR- 1/010 4 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS S/N PSCP CP/CE/L 5CD7091KOV PT/SR- 1/011 5 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS S/N PSCP CP/CE/L 5CD7050DMY PT/SR- 1/013 6 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS S/N PSCP CP/CE/L 5CD63875GH PT/SR- 1/015 7 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS S/N PSCP CP/CE/L 5CD710B1GH PT/SR- 1/016 8 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PSCP 33 ~ 9 HP LAPTOP LOGISTIC EXPERT 13.10.2017 1,180.00 2,627,376.20 PMO/PS C/ND24606BO PSCP CP/CE/L PT/SR- 1/014 10 MICROSOFT LOGISTIC EXPERT 13.10.2017 3,540.00 7,882,128.60 PMO/PS PSCP SURFACE CP/OE/M SP3/SR- 1/018 11 PROJECTOR LOGISTIC EXPERT 13.10.2017 961.70 2,141,311.60 PMO/PS S/N PSCP EPSON CP/OE/P WDUK7202426 RT/SR- 1/019 12 PROJECTOR LOGISTIC EXPERT 13.10.2017 932.20 2,075,627.20 PMO/PS S/N PSCP EPSON CP/OE/P WDUK7202695 RT/SR- 1/020 TOTAL 16,053.90 35,745,453.20 TOTAL -ICT EQUIPMENT AND COMPUTER SOFTWARE 53,587.72 110,612,500.91 ASSET CATEGORY: FURNITURE AND FITTINGS S/N ITEM SUPPLIER ACQUISITIO ACQUISITION COSTS ASSET LOCATION/ DESCRIPTION N DATE US$ TZS CODE SERIAL NO. CUSTODIAN 1 MALIKA PMO/PS PSCP AIR CONDITION ELECTRICAL 02/09/2014 2,716.00 CP/CEP/ CASETTYPE SALES& REPAIR 4,481,250.00 AC/001 2 MALIKA 18/09/2014 PMO/PS PSCP ELECTRICAL 2,973.00 CP/CEP/ AIR CONDITION SALES& REPAIR AC/002 CASET TYPE 4,915,250.00 34 3 MALIKA 11/02/2015 1,374.00 2,390,625.00 PMO/PS PSCP ELECTRICAL 19/02.2015 1,359.00 2,390,625.00 CP/CEP/ AIR CONDITION SALES& REPAIR AC/003 4 KINGS 10/09/2015 163.12 350,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/S STEEL FILLING CBT/SR- CABINET/4 Drawers 1/001 5 KINGS 10/09/2015 163.12 350,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/S STEEL FILLING CBT/SR- CABINET/4 Drawers 1/002 6 KINGS 10/09/2015 163.12 350,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/S STEEL FILLING CBT/SR- CABINET/4 Drawers 1/003 7 KINGS 10/09/2015 163.12 350,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/S STEEL FILLING CBT/SR- CABINET/4 Drawers 1/004 8 KINGS 10/09/2015 163.12 350,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/S STEEL FILLING CBT/SR- CABINET/4 Drawers 1/005 9 KINGS 10/09/2015 97.87 210,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/E HIGH BACK OFFICE CHR/HB/ CHAIR 001 10 KINGS 10/09/2015 97.87 210,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/E HIGH BACK OFFICE CHR/HB/ CHAIR 004 11 KINGS 10/09/2015 97.87 210,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/E HIGH BACK OFFICE CHR/HB/ CHAIR 005 12 HIGH BACK OFFICE KINGS 10/09/2015 97.87 210,000.00 PMO/PS PSCP CHAIR FURNISHERS LTD CP/OF/C 35 HR/HB/0 09 13 KINGS 10/09/2015 97.87 210,000.00 PMO/PS PSCP FURNISHERS LTD CP/OF/E HIGH BACK OFFICE CHR/HB/ CHAIR 006 14 KINGS 10/09/2015 605.88 1,300,000.00 PMO/PS DA99-03471 L PSCP FURNISHERS LTD CP/OE/F FRIDGE RG/002 15 KINGS 10/09/2015 139.82 300,000.00 PMO/PS 503TAAACCW PSCP FURNISHERS LTD CP/OF/0 048 E/MCWV MICROWAVE /002 10,472.65 18,577,750.00 TOTAL 2017/18 1 WATER 13.07.2017 162.18 360,000 SIN 610470057 PSCP DISPENSER 2 AIR CONDITIONER YUMOM 06.12.2017 3,033.62 6,737,087.00 PMO/PS PSCP INVESTMENT CP/OE/A C/SR- 1/004 3 AIR CONDITIONER YUMOM 20.12.2017 3,034.72 6,737,087.00 PMO/PS PSCP INVESTMENT CP/OE/A C/SR- 1/005 TOTAL 6,230.52 13,834,174 TOT AL - FURNITURE AND FITTINGS 16,703.17 32,411,924.00 36