KNBS KENYA NATIONAL BUREAU OF STATISTICS Keeping you informed KENYA NATIONAL BUREAU OF STATISTICS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED JUNE 30, 2020 Prepared in accordance with the Accrual Basis of Accounting Method under the International Public Sector Accounting Standards (IPSAS) OFFICE OF THE PUYOTR- GENERAL P. 0. Box 30084 - 00100, NAIROBI KENYA NATIONAL Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Table of Content I. Key Information and Management............................................................................................3 II. The Board of Directors who served during the financial year 2019/20200.19/.................... 6 III. T he Senior M anagem ent Tea m ................................................................................................ 1 IV . T he Chairm an's Statem ent.......................................................................................................19 V . The Director General's Report................................................................................................. 20 VI. Corporate Governance Statement ............................................................................................ 22 VII. Corporate Social Responsibility Statement............................................................................ 26 VIII. Report of the Board of Directors ............................................................................................. 28 IX. Statement of Directors' Responsibility ..................................................................................... 29 X . Report of the Auditor G eneral...... ..................... ................................................................. 3o XI. Statement of Financial Performarnfe....m.c................................................................................. 31 XII. Statem ent of Financial Position............................................................................................. 32 XIII. Statement of Changes in Net Assets...................................................................................... 33 XIV . Statem ent of Cash Flowslw3........................................................................................................ 34 XV. Statement of Comparison of Budget and Actual Amounts..................................................35 XVI. Notes to the Financial Statements..........................................................................................3 1 K~NBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Acronyms AfDB - African Development Bank A-I-A - Appropriations in Aid COMESA - Common Market for Eastern and Southern Africa DfID - Department for International Development DG - Director General EAC - East African Community FAO - Food and Agriculture Organization FDR - Fixed Deposit Receipts GOK - Government of Kenya ICT - Information Communication Technology IDA - International Development Agency IFRS - International Financial Reporting Standards ILO - International Labour Organisation IPSAS - International Public Sector Accounting Standards KCB - Kenya Commercial Bank KDHS - Kenya Demographic Health Survey KENINFO - Kenya Information KIHBS - Kenya Integrated Household Budget Survey KMIS - Kenya Malaria Indicator Survey KNBS - Kenya National Bureau of Statistics KPHC - Kenya Population and Housing Census, 2019 MICS - Multiple Indicator Cluster Survey NIPFN - National Information Platform for Food and Nutrition NSS - National Statistical System NSSF - National Social Security Fund PPRA - Public Procurement Regulatory Authority SCB - Statistical Capacity Building SIDA - Swedish International Development Cooperation Agency UNDP - United Nations Development Programme UNFPA - United Nations Population Fund UNICEF - United Nations Children's Fund USAID - United States Agency for International Development 2 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 I. Key Information and Management (a) Background information Overview KNBS is a Semi-Autonomous Government Agency established by an Act of Parliament - the Statistics Act, 2006. Vision To be a global leader in the provision of quality statistical services. Mission To provide, manage and promote quality statistical services through utilization of best practices for evidence-based decision making. Core Values * Professionalism: Strictly abide by professional considerations, including scientific principles and ethics on methods, standards and procedures for provision of quality statistical services * Integrity: Will adhere to the principles of good governance to ensure transparency and accountability in undertaking its programmes and activities. * Confidentiality: The Bureau will treat all information provided by stakeholders with strict confidentiality and use exclusively for statistical purposes. * Customer focus: Commits itself to align its programmes to the expectations of its stakeholders and attaining the highest standards in service delivery. * Innovation: Will continuously embrace creativity and innovation for value- addition in its business processes. * Teamwork: Will embrace teamwork in pursuing timely attainment of targeted results at all levels, through coordination and networking. Strategic Themes / Key Result Area (KRAs) The Bureau identified five areas of focus / key result areas, which will enable it to deliver benefits to the stakeholders and effectively realize its mandate: i. Production of quality statistics ii. Coordination of the National Statistical System (NSS) iii. Capacity building iv. Financial resource mobilization and management, and v. Enhance corporate image 3 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 (b) Principal Activities The Bureau is the principal agency of the Government for collecting, analysing and disseminating statistical data in Kenya and is the custodian of official statistical information. Specifically, the Bureau is mandated with: 1. planning, authorising, co-ordinating and supervising all official statistical programmes undertaken within the national statistical system; 2. establishing standards and ensuring the use of best practices and methods in the production and dissemination of statistical information across the national statistical system; 3. collecting, compiling, analyzing, abstracting and disseminating statistical information on the matters specified in the First Schedule of the Act; 4. conducting the Population and Housing Census every ten years, and such other censuses and surveys; 5. maintaining a comprehensive and reliable national socio-economic database. 6. developing and maintaining sampling frames; 7. collaborating with and assisting the county governments or any other institutions in the production of official statistics; 8. providing technical advice on statistics to other state entities; 9. promoting co-ordination among producers, users and suppliers of official statistics by forming appropriate sector committees; and 10.designating statistics produced by national statistical system as official statistics on being satisfied that the necessary criteria have been followed. (C) Key Management The Bureau's day-to-day management is under the following key organs: - Director General; - Directorate of Corporate Services; - Directorate of Production Statistics; - Directorate of Macro Economics Statistics; - Directorate of Population and Social Statistics; - Directorate of Statistical Co-ordination and Methods (d) Fiduciary Management The key management personnel who held office during the financial year ended 30th June 2020 and who had direct fiduciary responsibility were: 1. Director General Zachary Mwangi 2. Director - Corporate Services Ann Mburu 3. Director - Production Statistics Robert Nderitu 4. Director - Macro Economics Statistics Collins Omondi 5. Director - Population & Social Statistics Macdonald Obudho 6. Director - Statistical Co-ordination and Methods Mary Wanyonyi 7. Ag. Director - Statistical Co-ordination and Methods Paul Kemboi Samoei 8. Head of Procurement Fred Ayiera (e) Fiduciary Oversight Arrangements The key fiduciary oversight arrangements cover: 4 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 - Finance and Administration Committee activities - Audit and Risk Management Committee activities - Technical Committee activities (f) Registered Office Real Towers, Hospital Hill Road, P.O Box 30266 - 00100, NAIROBI (g) Contacts Telephone:(254) 3317586 / 8 E-mail: directorgeneral@knbs.or.ke Website: www.knbs.or.ke (h) Bankers 1. Kenya Commercial Bank Limited, Moi Avenue Branch, P.O. Box 30081 - 00100, NAIROBI. 2. Co-operative Bank of Kenya, Kimathi Street Branch, P.O. Box 7512 - 00100, NAIROBI. (i) Independent Auditors Auditor General Kenya National Audit Office Anniversary Towers, University Way P.O. Box 30084 GPO 00100 Nairobi, Kenya (j) Principal Legal Adviser The Attorney General State Law Office Harambee Avenue P.O. Box 40112 City Square 00200 Nairobi, Kenya 5 KNIB Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 II. The Board of Directors who served during the financial year 2019/2020 Mr. Peter Nginga Kiguta, MBS - Chairman Mr. Samuel Wambugu Ms Katherine Chiteri Muoki, HSC, OGW Alt. to the PS - The National Treasury Alt. to PS - State Department for Planning Dr. Josephine Kibaru-Mbae, OGW Dr. Mary K. Lonyangapuo 6 KNBS AUREAU OF STATESS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Dr. Caxton M. Munyoki Prof. Richard Oduor Okoth Mr. Japh Okoth Olende Mr. Zachary Mwangi, EBS Director General and Secretary to the Board Mr. Josiah Morara Omosa - Corporation Secretary 7 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Mr. Peter Nginga Kiguta was appointed as the Board Chairman in May 2018. He holds an MA, Economics Policy (1985), Boston University, Massachusetts, USA and BA, Economics - Upper 2nd Class (1981), University of Nairobi, Kenya. He was employed by the government of Kenya on 20th November 1981 as Economist I, where due to his good performance, he was promoted through five ranks in a span of 14 years (Economist II; Senior Economist; Principal Economist; Deputy Chief Economist) to the level of Chief Economist in 1995. He was a Lecturer in Economics, Boston University, Mr. Peter Nginga Kiguta, Boston - Massachusetts, USA, between January and MBS September 1985, where he taught under graduate students in Macro and Micro economics and problems of African Economic Development. He has authored various academic papers in economics for presentation in conferences and policy dialoguing, and also contributed papers as input in publications by World Bank. He has also published papers in respected trade journals. He first joined the East African Community as the Macroeconomist on 28th September 1996. He was appointed on merit as the first Director General (Customs & Trade) of the East African Community on 7th December 2004, where he retired on 31st December 2016 upon reaching mandatory retirement age, having worked as the Director General for 12 years. As a Director General, customs and trade, he had the overall responsibility of ensuring that the EAC Customs union takes off and functions effectively. He led a cross functional, multinational team of customs and trade experts with an annual budget of around US$9 million. 8 KNBS -ENA NATIONAL Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Alternate to Principal Secretary - State Department for Planning, Katherine Chiteri Muoki is a long serving career Civil Servant who has risen through the ranks to the position of Director of Economic Planning responsible for Infrastructure, Science, Technology and Innovations. She has also held the position of Director of Gender for an intermittent period. She holds a Bachelor of Education Degree (Economic & Business Studies), 1st Class Honours from Kenyatta University and a Masters of Arts (Economics) Degree from the University of Nairobi. Mrs. Muoki has technical expertise in a number of areas Ms. Katherine Chiteri that include; Economic Policy Formulation, Development Muoki, HSC, OGW Planning and Analysis; Strategic Planning; Project Management, Monitoring and Evaluation and Impact Analysis; Speech Writing; Participatory Poverty Assessment; Qualitative and Quantitative Statistics Analysis; Human Development Analysis; Research Techniques; Public Finance Management including Budgeting; and Capacity Building. Among the key activities that she has initiated and/ or coordinated and provided leadership include the drafting of the Poverty Reduction Paper, the Economic Recovery Paper for Wealth Creation, the Vision 2030 and the three Medium Term Plans for the implementation of the Vision 2030. Further she was a member of the think tank that initiated the Medium Term Expenditure Framework (MTEF) Budgeting Framework. She has co-convened various MTEF budget Sector Working Groups for several years. Further she has initiated development of other key policy documents such as the National Gender Policy, the Status of Women Report, and Kenya National Human Development Reports among others. She has also provided leadership in Participatory Poverty Analysis Studies. Over the years, Mrs. Muoki has served on several boards. These include, the pioneer boards of the National Commission for Gender and Development; Women Enterprise Fund Advisory Board; Uwezo Fund Oversight Board; Anti-Female Genital Mutilation Board and Affirmative Action Social Development Fund Board. She has also sat on the National Commission for Science and Technology and the Lake Basin Development Authority Board. 9 KNBS WRUOFSTATICS- Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Mrs. Muoki is the recipient of two (2) State Awards; Head of State Commendation (HSC) in 2013 and Order of the Grand Warrior (OGW) in 2016 Alternate to the Principal Secretary, National Treasury, Samuel is a Principal Economist in Macro and Fiscal Department of the National Treasury and Planning. Apart from being a Board Member of KNBS, he also represents the CS, National Treasury and Planning at Jomo Kenyatta Foundation (JKF) Board of Directors. He holds an M.A in Economic Policy Management degree from Makerere University, Uganda and B.A in Economics from University of Nairobi. Besides the above, he has Mr. Samuel Wambugu attended Strategic Leadership Development Programme (SLDP) at Kenya School of Government and several courses in Financial and Strategic Management, Leadership and Policy Formulation locally and abroad, and has also undertaken a training on Corporate Governance under Mwongozo facilitated ICS and SCAC. Japh has been a Senior Business Consultant since the beginning of 2016 after his tenure at AIG Insurance Company spanning over 36 years. At AIG, he was the Chief Executive in charge of East Africa Region for over 19 years. He has considerable international working experience having worked briefly in the US and Europe. During his tenure at AIG he acquired extensive experience in all technical aspects of the business, having worked in all departments including Finance, Claims, Underwriting and Distribution. He was part of the AIG Africa Executive Committee which was charged with the Mr. Japh Okoth Olende responsibility of developing and implementing key business strategies for the Africa Zone including expansion of the brand in East, West and Southern Africa Japh played leading roles in the insurance industry including serving in various industry related committees, leading to being honoured with a Life Time Achievement award for outstanding role in developing the insurance industry in the region. Japh has played leadership roles in the past as: President of American Chamber of Commerce Kenya Chapter and Director General of the Insurance Institute of Kenya. He has been a director of a number of institutions & organization including, Retirement Benefits Authority; KEPSA; AIG Kenya; AIG Uganda and Muthaiga Golf Club. 10 K~NBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 He currently holds directorships of a number of companies including:Absa Bank Kenya Ltd; Chairman Absa Bank Insurance Agency; Jadala Investments company; Ler Limited; 25th Investment Company, and Jumbo Chem Company Kenya Ltd He has presented papers at a number of international conferences including Brookings Institute in Washington DC and Chatham House in London, Japh is a graduate of the University of Nairobi and is a Chartered Insurer of CII London as well as a Member of the Institute of Directors and Certified Trustee. Dr. Mary K. Lonyangapuo is a holder of Bachelor of Arts in Education from Kenyatta University, a Masters Degree in Linguistics from Leeds University, UK and a PHD in Linguistics from Egerton University. She has over 15 years university teaching experience in the area of Theoretical and Applied Linguistics and has vast knowledge in humanities and social sciences Her key research areas are in: Syntax, Sociolinguistics DK L and Applied communication and has carried out various researches in linguistics and communicative aspects of language, has written a number of research papers in refereed journals and is a Research Assistant with CASA. She is a member of the Editorial Board, Jarida la Mwanga wa Lugha, an academic journal at Moi University. She has served as the Head of Department, Linguistics and Foreign Languages, Moi University; Dean, School of Arts and Social Sciences, Moi University and served as a Council Member, Kenyatta University. She sits on various School Boards and is currently a Senior lecturer, Department of Linguistics and Foreign Languages, Moi University, where she is also the Patron of I Choose Peace Consortium. 11 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Dr. Caxton Munyoki holds a PhD in Business Administration, a Master's in Business Administration and a Bachelor of Commerce in Business Administration, all from the University of Nairobi. Dr. Munyoki has 20 years'experience in the private sector and seven years' experience in the Public sector. He has been a Chief Executive Officer in Kenya Broadcasting Corporation, Allan Holdings, Kenital Solar, Kenya Bunduki, and Tracker Group of Companies. He also served as a Deputy Chief Executive Officer in TARDA and Kenya Broadcasting Corporation. Dr Munyoki has worked with Bata Shoe company limited as a Marketing Manager. Dr. Caxton M. Munyoki He has several publications under his name, among them; The Role of Competitive Strategies on Performance of Kenya State Corporations" - by Dr. Caxton Munyoki (International Journal for Innovation Education and Research - IJIER) November 2015' and "The Joint Influence of Organizational Autonomy, Positioning and Competitive Strategies on Performance of Kenyan State Corporations" - by Dr. Caxton Munyoki (International Journal of Humanities and Social Science) Vol. 5, No. 10(1); October 2015. He is a member of the Marketing Society of Kenya. Richard has considerable experience in the field of Biotechnology, and brings to the Board extensive expertise in research and biostatics. His active research focuses on using modern biotechnologies including genetic engineering to improve local staple food crops such as maize, sweet potato, cassava and sorghum against diseases, drought, aflatoxin, and Striga. He holds a patent on a stress-inducible promoter with the World Intellectual Property Organization and Chairs the Kenya University Biotechnology Consortium; a professional body that brings together experts in Biotechnology from Prof. Richard Oduor public and private universities to promote safe use and Okoth application of modern biotechnology in Kenya. In 2017, Richard was among the 52 African Scientists celebrated by the South African Department of Science and Technology for their outstanding contributions in advancing research in the continent. Richard has won several research grants, supervised several graduate students and published widely in the discipline. Currently he serves as an Associate Professor and Head of Plant Transformation Laboratory in the department of Biochemistry, Microbiology and Biotechnology at Kenyatta University, Nairobi, Kenya. Richard holds a PhD 12 KNB3S Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 in Molecular and Cell Biology from University of Cape Town, an MSc (Biotechnology) and BSc (Biochemistry) both from Kenyatta University, Kenya. In addition, Richard has a postdoctoral training, in drug discovery from Pfizer, UK. He also holds an Executive Master's of Science in Management and Organizational Development from United States International University, Africa; a Graduate Diploma in Forensic Sciences from Blackford Institute, UK and a Certificate in Science communication from University of Cape Town. He is currently an Honorary Visiting Fellow of the University of Leicester. Dr. Josephine Kibaru-Mbae is the Director General of National Council for Population and Development. Prior to joining NCPD in February 2014, Dr. Kibaru-Mbae had been the Director General at the East, Central & Southern Africa Health Community (ECSA-HC; Former Commonwealth Regional Health Secretariat) since 2010. ECSA-HC is an Intergovernmental Organization whose aim is to foster regional cooperation and Dr. Josephine Kibaru- collaboration in health. It comprises of 10 active members; Kenya, Lesotho, Malawi, Mauritius, Seychelles, Mbae, OGW Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. Dr. Kibaru-Mbae is a Medical Doctor, specialized in Obstetrics, Gynaecology and Public Health. She has about 30 years' experience in the public health sector, with about 20 of these years in Leadership and Management positions at different levels of the health sector in the Republic of Kenya. She started at the District level and rose through the ranks to the level of Senior Deputy Director of Medical Services in charge of Family Health Services, Ministry of Health; Kenya. Dr. Kibaru- Mbae has represented the government in various national and international fora such as the WHA, ICPD etc. During her tenure at the Division of Reproductive Health, in collaboration with other stakeholders, she successfully lobbied for the first ever budget-line for Family Planning in Kenya in 2005. Dr. Kibaru-Mbae has excellent networking experience working with policy makers and programme experts such as Ministers, Ambassadors, Principal Secretaries, Directors, population and health professionals, representatives of collaborating partners and donors and the media. 13 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Mr Zachary Mwangi has over 24 years' experience in the public service. He holds a Bachelor of Arts (First Class Honors) from University of Nairobi and a Masters of Arts in Economic Policy Management, Makerere University, Uganda. He has expertise in official statistics, strategic management, surveys and censuses implementation, public policy analysis, budgeting, and project Mr Zachary Mwangi, EBS management, among others. Director General Prior to his current appointment as the Director General of the Kenya National Bureau of Statistics (KNBS), he was the Director of Macroeconomic Statistics, KNBS, from 2008 to 2012. From 1991 to 2008 he worked in the mainstream civil service rising to the position of Chief Economist in the then Ministry of Planning and National Development. He has coordinated the preparation of various publications including, Annual Economic Survey reports, Annual Statistical Abstract reports, Quarterly GDP reports, Socio Economic Atlas, various survey reports, Public Expenditure Review reports, Quarterly Budget Review reports and District Development Plans. He has attended various courses and workshops, both locally and abroad, on Regional Integration, Statistical Developments, Public Expenditure Management, Financial Programming and Policies, Risk Management, Quality Management System, Project Management, Macroeconomic analysis and modelling, among others. Born in 1973, Josiah is an alumni of the University of Nairobi having earned a Masters of Law Degree in 2013. He also earned a Diploma in Legal Practice from the Kenya School of Law in 1998 and a Bachelor of Law Degree (2nd Class Honors, Upper Division) from the University of Nairobi in 1997. He is a registered Certified Public Secretary of Kenya, a member of the Institute of Certified Public Secretaries of Kenya (ICPSK) Member No.R/CPSB/2214 and the Law Society of Kenya (LSK) and Mr. Josiah Morara Omosa an Advocate of the High Court of Kenya, a Commisioner for Oaths and a Notary Public. He has been an advocate of the High Court for the past 20 years (10 of which he has been the Legal Manager and later promoted to be a Corporation Secretary at the Bureau). He is a lawyer, with a wide spanning career in law and corporate governance. He has been responsible for driving the corporate governance agenda in the 14 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Bureau, providing guidance and support to the Board and has been the Secretary to the Board and all its Committees. Further, he has considerable experience in Commercial and Public Procurement Law having represented the Bureau before the Public Procurement Board and the Constitutional and Judicial Review Divisions of the High Court. 15 KN?BS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Ill. The Senior Management Team The KNBS structure comprises six directorates as shown below. Each Directorate is headed by a Director. Mr Zachary Mwangi has over 24 years' experience in the public service. He holds a Bachelor of Arts (First Class Honors) from University of Nairobi and a Masters of Arts in Economic Policy Management, Makerere University, Uganda. He has expertise in official statistics, strategic management, surveys and censuses implementation, public policy analysis, budgeting, and project management, Mr Zachary Mwangi, among others. EBS Prior to his current appointment as the Director General of the Kenya National Bureau of Statistics (KNBS), he was the Director General Director of Macroeconomic Statistics, KNBS, from 2008 to 2012. From 1991 to 2008 he worked in the mainstream civil service rising to the position of Chief Economist in the then Ministry of Planning and National Development. He has coordinated the preparation of various publications including, Annual Economic Survey reports, Annual Statistical Abstract reports, Quarterly GDP reports, Socio Economic Atlas, various survey reports, Public Expenditure Review reports, Quarterly Budget Review reports and District Development Plans. He has attended various courses and workshops, both locally and abroad, on Regional Integration, Statistical Developments, Public Expenditure Management, Financial Programming and Policies, Risk Management, Quality Management System, Project Management, Macroeconomic analysis and modelling, among others. Mr. Robert Nderitu is a statistician by profession and holds a Master of Science Degree (Statistics) from Kenyatta University. He has more than twenty (20) years' experience in the field of Statistics and through appropriate training and experience both locally and internationally, has been undertaking duties related to production and management of Statistics. This includes; preparing concept papers and proposals; providing economic planning, analytical, statistical, demographic and other related services; Mr. Robert Nderitu, designing and maintaining of business register and sampling OGW frames; designing data collection instruments; designing surveys and censuses; collecting and analyzing statistics on Dir., Production various thematic areas; monitoring living conditions by Statistics collecting, compiling and disseminating data on Consumer Price Indices (CPI) as well as income and expenditure levels; 16 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 and compiling other development Indexes including Human Development Indexes. He is the Director in charge of Production Statistics Directorate whose mandate involves collection, analysis, generation and dissemination of statistics in the areas of Labour, Prices, Industrial, Agriculture and Livestock, Environment and Nutrition statistics. He is also a qualified quality management system internal auditor and currently heads a team of champions, implementing the ISO 9001:2015 Quality Management System in the Bureau. Macdonald George Obudho has worked in Kenya National Bureau of Statistics since 1995 to date. He holds a Bachelor of Science degree in Mathematics and Computer Science (Second class honours - Upper Division) from Jomo Kenyatta University of Agriculture and Technology and a Master of Science degree in Statistics from the same university. He has vast experience in conducting population and housing censuses, designing and carrying out sample surveys and Mr Macdonald compilation of official statistics. From the statistical George Obudho, background, he has experience in cartographic work, MBS designing different types of statistical household sampling frames and maintenance of the same. He has been in Dir., Population & management for 13 years that brings about both Social Statistics administrative and technical experience. He has coordinated the writing of very many reports like census monographs, demographic and health surveys and Multiple Cluster Surveys. He has a number of certificates under his name that arise from short courses, workshops and seminars attended both locally and internationally. Some of them are on censuses, post census enumeration surveys, statistical Designs and Development, Sampling and weighting of data, Strategic Leadership Development Programme, Risk Management, Quality Management System, among many others Ms. Ann Mburu holds a Master of Science Degree in Human Resource Management from SALFORD University in the UK. She also holds a Bachelor's Degree in Economics and Government from the University of Nairobi in Kenya. Ann has attended various Management/Leadership courses to include: Change Management from the Royal Institute in the UK, Labour Management Course under the World Bank in Washington - USA, Strategic Management Skills from University of Connecticut USA, Strategic Planning Course Ms. Ann M. Mburu, from University of Wits Waterberg in South Africa, Strategic HSC Leadership program from Kenya School of Government, Director, Corporate Gender Mainstreaming Management from East and Southern Services African Management Institute, among others. 17 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Ms. Mburu has worked as a Management Consultant in the Management Consultancy Services under the Office of the President, Directorate of Public Service Management. She has also worked as a Director of Human Resource Management and Development, last appointment being the State Department for Planning before joining Kenya National Bureau of Statistics as a Director, Corporate Services. Mr Collins Omondi has a vast experience in Statistics, Economics and Data Management Skills drawn from over 19 years of work experience with the statistics Institution. He holds Master of Arts in Economics (University of Nairobi) and Bachelor of Science in Statistics (University of Nairobi). He has attended and participated in various Macroeconomics statistics related forums both locally and internationally. He heads Macroeconomics Statistics Directorate responsible for coordination, collection, analyses, generation and Mr Collins Omondi, dissemination of macroeconomic statistics in the following OGW main areas: National Accounts, External sector statistics, Monetary and Financial statistics, Public Finance, Tourism Dir., Macro and migration, and Transport, Storage and Communications Economic Statistics statistics. Ms. Mary Wanyonyi has vast experience in designing and conducting sample surveys, compilation of official statistics, socio-economic database development and environment statistics. She has a wide range of expertise in poverty and other social statistics analyses. She is the coordinator for the National Strategy for the Development of Statistics (NSDS) and the focal person for the post 2015 Development Agenda on Sustainable Development Goals (SDGs), at KNBS. Mary Mildred She is the Director in charge of Policy and Planning, Wanyonyi, 0GW Statistical Standards & Methods, Research and Dir., Development, and coordination of the National Statistical Statistical Co- System (NSS). She is also responsible for the implementation ordination & of Kenya Integrated Household Budget Surveys and Kenya Methods Continuous Household Survey. 18 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 IV. The Chairman's Statement It is with great pleasure that I present to you the Financial Statements for Kenya National Bureau of Statistics for the financial year ended 30th June 2020. This is an opportunity to report on the activities and performance of the Bureau. During the financial year, the Bureau lived to its mandate in providing users and policy- makers with timely and reliable statistics to facilitate decision-making. Various surveys as per the Director General's report were conducted and some reports on the same were released, while other reports are still under preparation. The preparatory activities for the 2019 Population and Housing Census were concluded and enumeration conducted with great success. Four census basis reports were also successfully released and launched for use. Other surveys and censuses were also carried out so as to strengthen the quality of statistical information released to all stakeholders. The Bureau continued to strengthen the National and County Statistics Offices, but still faces the challenges of office accommodation especially in the Counties, staff retention and visibility. The process of identifying a building for leasing for the headquarter offices was completed and partitioning, electrical and mechanical works have since been completed, and staff shifted to the new offices, save for two sections that were left in Nyayo House and Herufi House. In the long term, the Bureau requires to own a building to house its headquarters. Finally, I wish to recognize with appreciation, the continued technical and financial support we have received from the Government, and the development partners over the period that has enabled the Bureau to come this far. The Bureau staff are also appreciated for the efforts they are putting to ensure production of quality statistics. Peter inga Kiguta, MBS 19 KNBS KENYA NATIONAL IREAU Of STATIS11CS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 V. The Director General's Report According to the Statistics Act 2006, the Kenya National Bureau of Statistics is the principal agency of the national government for the collection, compilation, analysis and dissemination of official statistics for planning, policy making and monitoring and evaluation. It is also mandated to ensure best standards and methods in the production of statistics across the National Statistical System (NSS). This annual financial report, therefore, highlights achievements made by KNBS during the period under review. National Strategy for Development of Statistics In the Financial Year the Bureau continued with the development of the National Strategy for Development of Statistics (NSDS). The NSDS is a framework to strengthen statistical capacity across the National Statistical System (NSS) through Strategic planning. It is therefore a national statistics master plan that provides a vision for development of all official statistics for the country. The NSDS is currently regarded as the best practice in statistical planning as it lays considerable emphasis on the entire National Statistical System (NSS) as opposed to the National Statistical Office only. This process will not only broaden and deepen the co-ordination between KNBS and the sectors, but will also streamline relations among the sectors that are involved in production of statistics, including counties. Through the NSDS framework, producers of statistics are encouraged to prepare and implement statistical programmes within their institutions for enhancing the production of statistics. The National Strategy for the Development of Statistics will culminate in establishment of functional statistical units in sectors, enhance the statistical capacity of the National Statistical System (NSS) to develop, produce and use official quality statistics in a cost-effective manner. Progress and Status a. Fourteen draft Sector Statistics Plans have been prepared b. The KNBS Sector Statistics Plan (2018-2022 Strategic Plan) was finalized. c. Consolidation of the SSPs is ongoing and the draft National Strategy for the Development of Statistics will be produced. The NSDS is aligned to the MTP III and will cover the period 2018/19-2022/23. Quality Management System KNBS is committed to continually improve quality of service delivery as an integral part of its business strategy. To achieve this goal, KNBS applies the framework of a Quality Management System (QMS). During the period, the KNBS Quality Management System was audited by SGS Kenya Limited, a certifying body, based on ISO 9001:2015 Standard. Sustainable Development Goals During the Financial Year, The Bureau identified Sustainable Development Goals (SDGs) indicator framework for national monitoring. Performance Contracting for FY 2019-2020 The Bureau implemented the agreed targets as per the vetted 2019-2020 Performance Contract. Four quarterly progress reports were prepared and submitted to The National Treasury and 20 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Planning and Office of Performance Management Contracting and Coordination as guided by 16th Cycle Performance Guidelines. The Kenya Statistics Program-For-Results (KSP-for-R) The Kenya Statistics Program for Results (KSP-for-R) is a financing agreement between the Government of Kenya and World Bank aimed at supporting statistical development in the Country from 2015/16 to 2019/20. The credit amount is SDR 35.6 Million (USD 50.0 Million equivalent) and supports selected activities of the KNBS Strategic Plan. The program commenced on 9th October 2015 and became effective on 10th February, 2016. It is a "results based" program where disbursements are largely tied to achievement of agreed "Disbursement Linked Indicators (DLIs)". Each DLI has several Disbursement Linked Results (DLRs) or milestones, which, when achieved, triggers disbursement. The National Treasury funds the KNBS budget through the exchequer releases and is reimbursed the agreed amount, upon achievement of the results by KNBS, and completion of the verification process. The program has been rated among the best performing projects by the World Bank. KNBS has already achieved the Disbursement Linked Results (DLRs). These DLRs have already been verified and National Treasury has received a reimbursement of USD 33 million (66% of the total credit). In addition, there are other DLRs which are at different stages of implementation and officers are working tirelessly to ensure that all the indicators are achieved before the end of the program. Through the program, the Bureau has also been able to digitize data collection processes for most surveys/censuses and a lot of microdata have been uploaded in the KNBS website. Way Forward a. Carry out the scheduled activities with the resources available b. Undertake training to fill the skills gaps c. Comprehensive implementation of Job Evaluation reports in line with Management/Board recommendations; d. Recruitment of staff to fill any identified vacancies and development of existing ones; In conclusion, I laud the efforts of the Board, entire staff and other stakeholders for the support provided during the period that ensured the Bureau implemented majority of the planned activities. Sincere appreciation to our development partners who have been a great help in the development of statistics not only at the Bureau but in the country as a whole. Particular gratitude goes to AfDB, Statistics Sweden through SIDA, UNICEF, UNDP, UNFPA and World Bank for both financial and technical support that facilitated KNBS conduct key surveys to bridge some of the existing data gaps. The Bureau greatly recognises and appreciates the invaluable support and feedback by our data producers, suppliers and users that enabled the institution achieve its mandate. Macdonald G. Obudho, MBS 21 KNUS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 VI. Corporate Governance Statement Objective Corporate governance defines the process and structure used to direct and manage business affairs of the organization with the aim of enhancing prosperity and organizational accountability. The corporate governance arrangements for the Bureau are set by the Board having regard to the Corporate Governance Principles and Recommendations, corporate best practice and the best interests of all stakeholders. The Bureau is committed to adopting best practice in corporate governance where these practices are appropriate and add value. Consistent with the ongoing review of the Bureau's corporate governance framework to ensure that reflects best practice, the Bureau's Charters and Policies are updated continuously. The documents define the process and structure used to direct and manage business affairs of the Bureau with the aim of enhancing prosperity and organizational accountability. The Board has adopted a Board Charter that details the functions and responsibilities of the Board, Chairman and individual Directors. Responsibility for the day to day management and administration of the Board is delegated to the Director General (DG) who is Chief Executive Officer (CEO), assisted by his direct reports. The DG manages the Bureau in accordance with the strategy, financial plans and delegations approved by the Board. The Board is responsible for the overall operation and stewardship of the Bureau and, in particular for the long term strategies, policies and financial objectives of the Bureau and for monitoring the implementation of those policies, strategies and financial objectives. The Board acknowledges that it is responsible for ensuring the transparency, accountability and integrity of the financial and internal systems in the organization and hereby confirms that sufficient safeguards have been put in place and are reviewed on a regular basis. The Board's principal responsibilities include: i. Approving the Bureau's strategy and ensuring that an effective management team and the necessary financial and human resources are in place for the Bureau to meet its objectives. ii. Approving the Bureau's Budget, annual work plans, procurement plan and performance contract. iii. Approving the Bureau's Annual Report and reviewing its periodic financial reports. iv. Evaluation of the management's performance over the preceding year. v. Reviewing the Bureau's risk management and internal controls systems and governance framework and approving Bureau policies. 22 KNBS KLNYA NATIONAL Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Board Committees and their functions The Board has approved the delegation of certain authority to Board Committees where applicable, as well as to the management. The Board has three committees which are guided by clear terms of reference, and are instrumental in monitoring the Bureau operations, conduct of business systems and internal controls. The three Committees are the Finance & Administration Committee, the Audit & Risk Management Committee and the Technical Committee. a) Finance & Administration Committee Functions i. Review the Bureaus' annual budget before submission and after approval by the Treasury; ii. Review quarterly Financial Monitoring Reports (FMR); iii. Review periodic operational budgets and financial statements; iv. Monitor the continuing efficacy of accounting and internal control; v. Compliance with the Government financial management regulations; vi. Monitoring the performance of key finance and accounts staff against approved performance contracts; vii. Review the annual procurement plans including those of external funded projects; * Monitoring and appraise the performance of senior management, review of all human resource policies, determining the remuneration of senior management and other staff. The above responsibilities shall not prevent the committee from carrying out any other tasks that are reasonably within its mandate. All review and recommendations by this committee will be submitted to the Board for final approval. b) Audit & Risk Management Committee Functions i. Monitor the implementation of the risk management policy framework; ii. Monitoring and ensuring timely implementation of recommendations of various fiduciary oversight responsibilities, including internal and external auditors, Government project monitoring agencies and external funded projects (IDA and DfID) periodic review and supervision missions; iii. Overseeing continuing efficacy of accounting and internal control standards, policies and practices iv. Ensuring compliance with legal covenants of Development Partners funding agreement on projects by them v. Monitoring performance of key internal audit staff against approved performance contracts. vi. The above responsibilities shall not prevent the committee from carrying out any other tasks that are reasonably within its mandate. vii. All review and recommendations by this committee will be submitted to the Board for adoption. 23 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 c) Technical Committee Functions i. To review and approve the Bureau's annual work-plan to ensure that it is in line with the Strategic Plan ii. To review requests from Agencies other than the Bureau who intend to undertake a census or survey at national sub-regional and local level; iii. Reviewing policies on the standardization of methodology and standards for data collection, reporting and dissemination; iv. Review the Quarterly report on the activities of the Bureau, v. Review collaboration activities and partnerships with other agents. The above responsibilities shall not prevent the committee from carrying out any other tasks that are reasonably within its mandate. All review and recommendations by this committee will be submitted to the Board for adoption. Directors' Remuneration The remuneration for the directors consists of sitting allowances in connection with attendance at Board and Committee meetings. The aggregate amount of the expense during the financial year ended 30th June 2020 are contained in Note 6 to the financial statements in this annual report Code of Conduct The Bureau has a code of conduct which seeks to guide employees in ethical conduct of business. All members of the Board of Directors, management and employees are expected to observe high standards of integrity and ethical conduct when dealing with customers, staff, suppliers of data, goods and services and regulators. Internal Control The effectiveness of the Bureau's internal control systems is monitored on a regular basis by the Internal Audit function, which reviews the Bureau's compliance with the laid down policies and procedures as well as assessing the effectiveness of the internal control structures. The Internal Audit function reports to the Audit and Risk Management Committee of the Board. 24 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Board/Board Committees Attendance The following table gives the record of attendance of the KNBS Board and its Committee meetings for the year ended 30th June, 2020: Name of Member Regular Special Board Other Board Board Board Committees Activities Meetings Meetings Mr. Peter Nginga Kiguta 4 10 - 10 Mrs. Katherine Muoki 4 10 8 8 Mr Samuel Wambugu 3 5 6 2 Mr Zachary Mwangi 4 10 12 10 Mr Japh Okoth Olende 2 3 4 2 Dr. Josephine K. Mbae 2 0 2 5 Dr. Caxton Munyoki 4 10 12 8 Dr. Mary Lonyangapuo 4 10 10 9 Prof. Richard Oduor 4 10 12 10 Board membership status The members' appointment and expiry dates are as follows: 1 Mr. Peter Nginga Kiguta 11th May 2018 10th May 2021 2 Mr. Zachary Mwangi 1st November 2014 Retired 31st October 2020 3 Mr. Samuel Wambugu Alternate to PS - The National Treasury 4 Mrs. Katherine Muoki Alternate to PS - State Department for Planning 5 Mr. Japh Okoth Olende 16th October 2019 15th October 2022 6 Prof. Richard Oduor 21st Dec 2018 20th Dec 2021 7 Dr. Caxton Munyoki 21st Dec 2018 20th Dec 2021 8 Dr. Mary Lonyangapuo 21st Dec 2018 20th Dec 2021 9 Dr. Josephine K. Mbae 12th Feb 2019 Retired 31.01.2020 25 KN1BS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 VII. Corporate Social Responsibility Statement The policies guiding the hiring process are as follows: 1. Human Resource Policies and Procedures Manual for Permanent Staff According to the Bureau's Human Resource Policies and Procedures Manual for permanent staff, the recruitment procedure commences with the Director General declaring to the Board in accordance with the procedures set, all vacant posts within the establishment which are to be filled substantively or in an acting capacity. Such declaration originates from the various Heads of Department and must be supported by good justification for the recruitment and confirmation that the positions are not only within the approved establishments but also fully funded. No panellist at either the short listing or interviewing stage will participate in cases where there is an applicant who is related to him in any way to avoid conflict of interest. The principles of affirmative action, apply on appointment/promotion as applicable. 2. Recruitment Guidelines for Temporary Survey Personnel These guidelines enhance efficiency and improve transparency in the recruitment process to enable the Bureau fulfil its mission of providing and promoting quality statistical information, for evidence based decision making through recruitment of competent and qualified temporary personnel to conduct surveys and censuses. The specific objectives are:- a. To ensure fairness, accountability and transparency during the recruitment of survey personnel; b. To build the capacity of officers involved in the recruitment process; c. To provide equitable opportunity to all persons especially, women youth and persons with disability. 3. Internship Policy This policy provides for engagement and management of internship programmes in the Bureau. It outlines the various provisions and requirements of the programme, selection procedures and roles and responsibilities of various stakeholders in the internship programme. Further, it takes cognizance of the various legal and policy provisions on which the internship policy is based on the following: Consideration of gender ratio The Bureau shall: a. Ensure a gender responsive human resource function; b. Empower all staff to provide gender responsive services and products; c. Establish sustainable gender responsive systems and structures in recruitment, promotion and training. d. Set up sustainable sex disaggregated databases on recruitment, promotion and training and other Human Resource functions; e. Embrace affirmative action to address gender disparities; f. Observe at least 30 percent gender representation in all recruitments and promotions as required by the law. 26 K~NBs KA NAioA Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 4. Training Policy The Bureau's policy on training is to ensure continuous upgrading of employee's core competencies, knowledge, skills and attitudes including their ability to assimilate technology to enable them to create and seize opportunities for social advancement, economic growth and individual fulfilment. The Bureau shall therefore make adequate budgetary provisions for training. 5. Career Guidelines The career guidelines were developed to provide an institutional framework to address issues of staff remuneration and progression. This ensures that the Bureau is able to attract and sustain competent and motivated staff. The Career Guidelines set out the minimum qualifications and/or experience required for advancement from one grade to another. It is however, emphasized that these are minimum requirements entitling an officer for consideration for appointment to the grade. 6. Staff Appraisal The Bureau recognizes performance management system as a critical component of Human Resource Management function whose overall objective is to manage and improve performance of the Bureau by enabling higher level of employee participation and involvement in planning, delivery and evaluation of work performance. The Bureau takes into account individual performance and rewards employees for their contribution in a fair and equitable manner. The Performance Management System has therefore been designed to achieve this objective, among others. 27 KNBS BU EAU OF VA-STICS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 VIII. Report of the Board of Directors The Directors hereby submit their report together with the financial statements for the year ended June 30, 2020 which disclose the state of affairs of the Bureau. Principal activities The Bureau is the principal agency of the Government for collecting, analysing and disseminating statistical data in Kenya and is the custodian of official statistical information. Results The financial performance of the Bureau for the year ended June 30, 2020 are set out on page 28. Board of Directors The members of the Board who served during the year and up to the date of this report are set out on page 6. Auditors The Auditor General is responsible for the statutory audit of the Bureau in accordance with Article 229 of the Constitution of Kenya and the Public Audit Act 2015 for the year ended June 30, 2020. By Order of the Board Mr. Josiah Morara rn sa - Corporation Secretary Date: ... . .................. 28 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 IX. Statement of Directors' Responsibility Section 81 of the Public Finance Management Act, 2012 and the Statistics Act, 2006, require the Directors to prepare financial statements in respect of the Bureau, which give a true and fair view of the state of affairs at the end of the financial year and its operating results for that year. The Directors are also required to ensure that the Bureau keeps proper accounting records which disclose with reasonable accuracy its financial position. The Directors are also responsible for safeguarding of the assets. The Directors are responsible for the preparation and presentation of the Bureau's financial statements, which give a true and fair view of its state of affairs as at the end of the financial year ended on June 30, 2020. This responsibility includes: (i) maintaining adequate financial management arrangements and ensuring that these continue to be effective throughout the reporting period; (ii) maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the entity; (iii) designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements, and ensuring that they are free from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of the Bureau; (v) selecting and applying appropriate accounting policies; and (vi) making accounting estimates that are reasonable in the circumstances. The Directors accept responsibility for the Bureau's financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International Public Sector Accounting Standards (IPSAS), and in the manner required by the PFM Act (2012) and the Statistics Act (2006). The Directors are of the opinion that the Bureau's financial statements give a true and fair view of the state of its transactions during the financial year ended June 30, 2020, and of its financial position as at that date. The Directors further confirm the completeness of the accounting records maintained by the Bureau, which have been relied upon in the preparation of these financial statements as well as the adequacy of the systems of internal financial control. Nothing has come to the attention of the Directors to indicate that the Bureau will not remain a going concern for at least the next twelve months from the date of this statement. Approval of the financial statements The Bureau's financial statements were approved by the Board of Directors on 24th September 2020 and signed on its behalf by: Macdonald G. Obudho, MBS Mr. Peter Nginga Kiguta, MBS Director General Board Chairman Date................................. Date................................. 29 KNBS :UNU N zAzTINA Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 X. Report of the Auditor General 30 KMBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 XI. Statement of Financial Performance For the Year Ended 30th June 2020 2019 / 2020 2018/2019 Notes KShs. KShs. Revenue Revenue from non-exchange transactions GOK Grants 2-a 10,683,140,729 8,559,238,030 Development Partners' Funds 2-b 59,845,169 45,814,390 Revenue from other donors 2-c 52,275,565 8,945,226 10,795,261,463 8,613,997,646 Revenue from exchange transactions 3-a Income from AIA 66,758,020 279,195,885 66,758,020 279,195,885 Total Revenue 10,862,019,483 8,893,193,531 Expenses Project Expenses 4 10,083,382,911 2,454,685,602 Employee costs 5 741,348,040 742,214,197 Directors' expenses 6 10,038,818 14,654,566 Depreciation and Amortisation 7 1,394,716,771 128,860,624 Repairs and Maintenance 8 48,592,557 15,957,652 Insurance Costs 9 88,780,080 81,884,781 Other Operating Expenses 10 297,207,088 441,281,295 Bank charges 11 7,817,468 1,015,544 Total Expenses 12,671,883,733 3,880,554,261 (Deficit) /Surplus before tax (1,809,864,250) 5,012,639,270 Provision for tax 3-b (19,148,574) (82,045,119) (Deficit) / Surplus for the period (1,829,012,824) 4,930,594,151 The notes set out from page 36 form an integral part of the Financial Statements. 31 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 XII. Statement of Financial Position As at 30th June 2020 2019 / 2020 2018/2019 Notes Kshs. Kshs. ASSETS Current Assets Cash & Cash Equivalents 12 2,583,114,649 4,622,304,050 Investments in Treasury Bills 13 Receivables 14 1,928,707,398 4,506,252,401 4,511,822,047 9,128,556,451 Non- current assets Property, Plant & Equipment 15 2,954,414,685 278,121,446 Intangible Assets 16 13,291,304 2,954,414,685 291,412,750 TOTAL ASSETS 7,466,236,732 9,419,969,201 LIABILITIES Current Liabilities Payables 17 85,776,469 228,956,075 Refundable Deposits 19 15,313,115 18,467,729 Provisions 20 28,125,604 26,487,098 Taxation 21 15,616,453 6,042,166 Unutilised Grants 22 7,032,906 2,228,596 151,864,547 282,181,664 Non-current Liabilities Staff Gratuity 18 14,746,258 9,148,786 TOTAL LIABILITIES 166,610,805 291,330,450 NET ASSETS 7,299,625,927 9,128,638,751 RESERVES Revenue Reserve 6,898,425,817 8,727,438,641 Capital Reserve 401,200,110 401,200,110 TOTAL RESERVES 7,299,625,927 9,128,638,751 The Financial Statements set out from page 31 were signed on behalf of the Board of Directors by: Ea .Njoroge Macdonald G dho, MBS Peter. Kiguta, MBS Head of Finance Director General Board Chairman ICPAK No. 3030 Date .-- -- Date ------------------- Date ------------------ 32 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 XIII. Statement of Changes in Net Assets For the Year Ended 30th June 2020 REVENUE REVALUATION CAPITAL RESERVE RESERVE RESERVE TOTAL KShs. KShs. KShs. KShs. At 01.07.2018 3,801,377,690 59,726,058 341,474,052 4,202,577,800 Prior Year Adjustment (4,533,200) (4,533,200) Revised bal. 30.06.2018 3,796,844,490 59,726,058 341,474,052 4,198,044,600 Surplus for the Year 4,930,594,151 4,930,594,151 Balance 30.06.2019 8,727,438,641 59,726,058 341,474,052 9,128,638,751 Deficit for the Year (1,829,012,824) (1,829,012,824) Balance 30.06.2020 6,898,425,817 59,726,058 341,474,052 7,299,625,927 The Statement of Changes in Net Assets is to be read in conjunction with the Notes to, and forming part of the Financial Statements set out from Pages 36. 33 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 XIV. Statement of Cash Flows For the Year Ended 30th June 2020 2019 / 2020 2018/2019 Notes Kshs. Kshs. Deficit/surplus for the year (1,829,012,824) 4,930,594,624 Adjusted for: Depreciation and Amortisation 7 1,394,716,771 128,860,624 Contribution to Provision 20 1,638,506 (1,134,249) Taxation 21 9,574,287 (48,879,595) Prior Year Payments - (4,173,200) Working Capital adjustments Decrease (Increase) in Receivables 14 2,577,545,003 (4,203,276,633) (Decrease) Increase in Payments received in advance 19 (3,154,614) 17,378,259 Increase (Decrease) in Payables 17/18/22 (132,777,824) 189,852,437 Net Cash Flows from Operating Activities 2,018,529,305 1,009,222,267 Cash Flow from Investing Activities Purchase of Fixed Assets 15/16 (4,057,718,706) (28,187,684) Investments 13 - 2,322,926,211 Nat Cash Flows From Investing Activities (4,057,718,706) 2,294,738,527 Net Changes in Cash and Cash Equivalents (2,039,189,401) 3,303,960,794 At Start of Year 4,622,304,050 1,318,343,729 At End of Year 2,583,114,649 4,622,304,523 The Cash Flow Statement is to be read in conjunction with the notes from page 36, and forms part of the Financial Statements set out from Page 31. 34 ui � � `о�' � Q° �, q� � � �° о°. `oi 3 � д д м ef t31 сЧ ct ri сТ сП О С ,w, ц д д СЛ О et СП т о0 N Ci1 l4 � � aj � о ci й аг 4r ,-i �д гм ai сэ о v =в � ", � .� _� ц, ° i , v �-" �. �? 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V у м� 3 t�1S � 4у `CJ у i t� й и% +•, 3�- � и � О'С �. д 4U �� R5 Й fl' т_ ил �,L д ,7 �J 0 � � и t} -а .`° гу �� Х т �'i'' �'у- � б� � р � � � � У � � � �� � � Q � r с � ' у tY1 � аС � а а � � � С � � � � Q � � ci ш т � � �Э т � � ,� � � � t О tA �, ¢ Е- -д r- � F- т �, � �� � �� KN13S Kenya National Bureau of Statistics OKEN A NAYIONAL Annual Reports and Financial Statements for the Year ended June 30, 2020 XVI. Notes to the Financial Statements For the Year Ended 30th June 2019 1. A. GENERAL INFORMATION Kenya National Bureau of Statistics is a Semi-Autonomous Government Agency established by, and derives its authority and accountability from an Act of Parliament - the Statistics Act, 2006. It is the principal agency of the Government for collecting, analysing and disseminating statistical data in Kenya and is the custodian of official statistical information. B. STATEMENT OF COMPLIANCE AND BASIS OF ACCOUNTING The financial statements have been prepared on a historical cost basis except for the measurement at re-valued amounts of certain items of property, plant and equipment. The preparation of financial statements in conformity with International Public Sector Accounting Standards (IPSAS) allows the use of estimates and assumptions. It also requires management to exercise judgement in the process of applying the Bureau's accounting policies. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements, are disclosed in Note D below. The financial statements have been prepared and presented in Kenya Shillings, which is the functional and reporting currency of the entity. The financial statements have been prepared in accordance with the PFM Act, the Statistics Act, and International Public Sector Accounting Standards (IPSAS). The accounting policies adopted have been consistently applied to all the years presented. C. ADOPTION OF NEW AND REVISED STANDARDS The Bureau did not adopt any new or amended standards during the year. D. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I. REVENUE RECOGNITION 1. Revenue from non-exchange transactions Transfers from other government entities Revenues from non-exchange transactions with government entities are measured at fair value and recognized on obtaining control of the asset (cash, goods, services and property) if the transfer is free from conditions 36 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 and it is probable that the economic benefits or service potential related to the asset will flow to the entity and can be measured reliably. Donor funds Grants received and not utilised within the period are treated as liabilities and credited to the statement of financial performance when the activities for which they were provided for have been undertaken. ii. Revenue from exchange transactions Sale of goods/services Bureau's revenue include sale of maps, publications, tenders, library user fees and AIA from surveys. It is recognized when the significant risks and rewards of ownership have been transferred to the buyer, usually on delivery of the goods. Interest income Interest income is generated from investments in fixed deposits of any surplus funds held in commercial banks and in Treasury Bills. It is accrued using the straight line method, by estimating future cash receipts through the expected life of the fixed deposit. The method applies to the principal outstanding to determine interest income for each period. II. CORPORATE TAX Current income tax liability is measured at the amount expected to be paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Management has evaluated the appropriate income and established provisions as appropriate. The net amount of income tax payable to the taxation authority is included as part of provisions in the statement of financial position. III. PROPERTY, PLANT AND EQUIPMENT All property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. Under the Bureau's depreciation policy all items of Property, Plant and Equipment are recorded at cost less accumulated depreciation. Subsequent costs are also included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Bureau and the cost of the item can be measured reliably. 37 KNBS Kenya National Bureau of Statistics KE"" N Annual Reports and Financial Statements for the Year ended June 30, 2020 - -" No depreciation is made in the year of purchase but a full year's depreciation is charged in the year of disposal. No depreciation is provided on freehold land. Repairs and maintenance costs are charged to the income and expenditure statement during the period in which they are incurred. The assets are categorized and depreciated on a straight line basis as follows: Item Rate a. Computer System 33.3% b. Furniture & Fittings, Equipment & Library Books 12.5% c. Motor Vehicles 20.0% d. Buildings 2.5% e. Plant and machinery 12.5% All the Bureau assets were revalued during year 2015/2016 by M/s Njihia Muoka Rashid Co. Ltd, a registered firm of valuers and the new values were incorporated in the statements. IV. INTANGIBLE ASSETS Intangible assets consist of various computer software purchased for use in the Bureau. The Bureau recognizes Intangible Assets and are stated separately at cost less accumulated amortization. Amortization is charged on a straight-line basis over their useful lives as estimated by management from time to time. The rate of amortization has been set at 33.3% pa. V. ACCOUNTING FOR ASSETS DONATED TO THE BUREAU Where an asset is acquired in a non-exchange transaction for nil or nominal consideration, it is initially measured at its fair value. It is subsequently revalued by a professional valuer and recorded at that value. If the transfer value is not known, it is recorded at management's valuation pending professional valuation. VI. EMPLOYEE BENEFITS 1. Pension Scheme The KNBS Retirement Benefits Scheme became operational from November 2011. The members of the scheme, who stood at 472 at the end of the period, contribute 10% of their basic pay, while the employer contributes 20%, to the scheme. The Bureau also contributes to the National Social Security Fund (NSSF). This is a defined contribution scheme registered under the National Social Security Act. The Bureau's obligation under the scheme is limited to specific monthly contributions legislated from time to time and are currently fixed at KSh.200 per employee, per month. 38 K(NBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 The Bureau's contributions to the retirements benefit scheme and to the NSSF in respect of current service have been charged to the income and expenditure account for the year. ii. Staff Gratuity The Bureau has six Management Staff, employed on a 5-year, renewable contract basis, who are eligible to gratuity upon expiry of their respective contracts. The Bureau therefore operates a separate Gratuity Account for them, where amounts equivalent to 31% of the employee's monthly basic salary are remitted. Movements in this account are clearly tabulated and accounted for in the statements, iii. Staff Annual Leave Accrual Employee entitlements to annual leave are recognized when they accrue. A provision is made for the estimated liability for annual leave as a result of services rendered by the employee up to the balance sheet date. The Bureau's policy on staff annual leave is that it cannot be commuted for cash. However, the Director General may approve commutation of leave depending on the circumstances which made it impossible for the employee to utilize the leave days. VII. CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise cash on hand and cash at bank, short term and on call deposits, and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held with commercial banks at the end of the financial year. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits as defined above. VIII. INVENTORIES All consumable stocks held for use in operations are expensed on purchase. IX. FINANCIAL INSTRUMENTS Financial Assets Initial recognition and measurement Financial assets are classified at fair value through surplus or deficit, and held-to- maturity investments, as appropriate. The Bureau determines the classification of its financial assets at initial recognition. Held-to-maturity Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held to maturity when the Bureau has the positive 39 KNBS Kenya National Bureau of Statistics K,Y IN Annual Reports and Financial Statements for the Year ended June 30, 2020 intention and ability to hold it to maturity. After initial measurement, held-to- maturity investments are measured at amortised cost using the effective interest method, less impairment. The losses that may arise from impairment are recognized in surplus or deficit. Financial liabilities Initial recognition and measurement Financial liabilities are classified at fair value through surplus or deficit, and the Bureau determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognized initially at fair value. X. PROVISIONS Provisions are recognized when the Bureau has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Contingent liabilities The Bureau did not recognize a contingent liability, but has disclosed details in the notes to the financial statements, as the possibility of an outflow of resources embodying economic benefits or service potential is remote. XI. LEASES - OPERATING Operating leases are leases that do not transfer substantially all the risks and benefits incidental to ownership of the leased item to the Bureau. Leased premises are contracted for the periods of between one and five years, with renewal options available in certain instances. Operating lease payments are the rental expenses, and are recognized as an operating expense in the statement of financial performance. XII. NATURE AND PURPOSE OF RESERVES Revaluation Reserve An asset valuation and tagging exercise by M/s Njihia Muoka Rashid Co. Ltd was undertaken during the year 2015/2016 and the appropriate entries made in the financial statements. The revaluation reserve arose from an asset valuation exercise undertaken during the year 2009/2010, by M/s. Metrocosmo Limited, Registered Valuers. The reserve has been adjusted accordingly, with the new valuations. Capital Reserve This represents the values of Assets previously owned by the former Central Bureau of Statistics (CBS) but transferred to the KNBS by the then Ministry of Planning and Devolution, and also assets bought through donor funded projects. 40 KNBS Kenya National Bureau of Statistics B OK Annual Reports and Financial Statements for the Year ended June 30, 2020 XIII. CHANGES IN ACCOUNTING POLICIES The Bureau recognizes the effects of changes in accounting policy. The effects of changes in accounting policy have been applied prospectively since retrospective application is impractical. XIV. RELATED PARTIES The Bureau 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 it, or vice versa. Nature of related party relationships: Entities and other parties related to the entity include those parties who have ability to exercise control or exercise significant influence over its operating and financial decisions. Government of Kenya The Government of Kenya is the principal shareholder of the Bureau. Other related parties include: i) The National Treasury and Planning ii) Key management iii) Board of directors XV. SEGMENT REPORTING The Bureau does not have any branches or reporting segments. All the operations of the Bureau are managed from the headquarters. The core business of the Bureau is as stipulated in the Statistics Act, 2006. XVI. SIGNIFICANT ACCOUNTING JUDGEMENTS AND SOURCES OF ESTIMATION AND UNCERTAINITIES The preparation of the Bureau's financial statements in conformity with IPSAS 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 end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. Judgements In the process of applying the Bureau's accounting policies, management has made judgments, which have the most significant effect on the amounts recognized in the financial statements. Allowances for Bad Debts The Bureau maintains provisions for bad and doubtful debts at a level considered adequate to provide for potential liabilities. The adequacy of the allowance is constantly reviewed by management taking into account past experiences, current economic conditions and evaluations of specific debts. 41 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Going concern The Bureau's management has made an assessment of its ability to continue as a going concern and is satisfied that it has the resources to continue in business for the foreseeable future. Furthermore, the management is not aware of any material uncertainties that may cast significant doubt upon the Bureau's ability to continue as a going concern. Therefore, the financial statement continues to be prepared on the going concern basis. XVII. BUDGET INFORMATION The original budget for FY 2019-2020 was approved by The National Treasury and Planning on 30t September 2019. The Bureau's budget is prepared on a different basis to the actual income and expenditure disclosed in the financial statements. The financial statements are prepared on accrual basis using a classification based on the nature of expenses in the statement of financial performance, whereas the budget is prepared on a cash basis. The amounts in the financial statements were recast from the accrual basis to the cash basis and reclassified by presentation to be on the same basis as the approved budget. A comparison of budget and actual amounts, prepared on a comparable basis to the approved budget, is then presented in the statement of comparison of budget and actual amounts. In addition to the basis difference, adjustments to amounts in the financial statements are also made for differences in the formats and classification schemes adopted for the presentation of the financial statements and the approved budget. A statement to reconcile the actual amounts on a comparable basis included in the statement of comparison of budget and actual amounts and the actuals as per the statement of financial performance has been presented under Note 23 of these financial statements. XVIII. COMPARATIVES Where necessary comparative figures for the previous financial year have been amended or reconfigured to conform to the required changes in presentation. XIX. SUBSEQUENT EVENTS There have been no events subsequent to the financial year end with a significant impact on the financial statements for the year ended June 30, 2020. E. FINANCIAL RISK MANAGEMENT The Bureau's activities expose it to a variety of financial risks including credit risk, liquidity risks, interest rate risk and operational risk. The Board of Directors has the overall responsibility for the establishment and oversight of the Bureau's risk management framework. Risk Management is carried out by the management under policies approved by the Board of Directors. Management identifies, evaluates and manages financial risk in close co-operation with various divisional and unit heads. 42 KNBS Kenya National Bureau of Statistics "- OF Annual Reports and Financial Statements for the Year ended June 30, 2020 Credit risk The Bureau's credit risk is primarily attributable to its receivables. However, it is limited because the customers are staff members with whom the Bureau has legal enforceable right for the recovery of the outstanding amounts. The credit risk on liquid funds with financial institutions is low. This is because the bank balances are held with regulated financial institutions and are fully performing. The amount that best represents the company's maximum exposure to credit risk as at 30 June 2019 and 30 June 2020 is made up as follows: Fully Performing Past Dues Impaired Total KShs. KShs. KShs. KShs. At 30.06.2019 Cash & Cash Equivalents 4,622,304,050 4,622,304,050 Receivables 4,506,252,401 4,506,252,401 Total 9,128,556,451 - - 9,128,556,451 At 30.06.2020 Cash & Cash Equivalents 2,583,114,649 2,583,114,649 Receivables 1,928,707,398 1,928,707,398 Total 4,511,822,047 - - 4,511,822,047 Liquidity risk Prudent liquidity risk management includes maintaining sufficient cash to meet our obligations. The Bureau manages liquidity risk by maintaining banking facilities through continuous monitoring of forecast and actual cash flows. The table below analyses the company's financial liabilities that will be settled on a net basis into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. 2019 / 2020 2018/2019 KShs KShs Financial Assets Receivables 1,928,707,398 4,506,252,401 Cash & Cash Equivalents 2,583,114,649 4,622,304,050 4,511,822,047 9,128,556,451 Financial Liabilities Payables 85,776,469 228,956,075 Net Liquidity Gap 4,597,598,516 9,357,512,526 43 KNBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Interest rate risk Interest rate risk is the risk that the entity's financial condition may be adversely affected as a result of changes in interest rate levels. The Bureau's interest rate risk arises from bank deposits. This exposes it to cash flow interest rate risk. The interest rate risk exposure arises mainly from interest rate movements on the entity's deposits. Sensitivity analysis: The Bureau analyses its interest rate exposure on a dynamic basis by conducting a sensitivity analysis. This involves determining the impact on profit or loss of defined rate shifts. The sensitivity analysis for interest rate risk assumes that all other variables, in particular foreign exchange rates, remain constant. The analysis has been performed on the same basis as the prior year. Using the end of the year figures, the sensitivity analysis indicates the impact on the statement of comprehensive income if current floating interest rates increase/decrease by 5 %. At 30th June 2020, if the interest rates on the bank balances had decreased/increased by 5 percentage points with all other variables held constant, the impact on surplus for the year would have been higher/lower as hereunder: 2019/ 2020 2018/2019 KShs KShs Interest Income 63,828,579.00 273,483,716 Change In Interest Rates 5% 3,191,429 13,674,186 -5% (3,191,429) (13,674,186) Operational risk This is the risk of direct or indirect loss arising from a wide variety of causes associated with the Bureau's processes, personnel, technology and infrastructure and from external factors other than credit, interest and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. The Bureau has put in place various measures to manage operational risk. 44 KINYA IIATIO"Al Kenya National Bureau of Statistics " Annual Reports and Financial Statements for the Year ended June 30, 2020 ^ 2. Revenue from non-exchange transactions These are made up of the following: (a) GOK grants are the exchequer releases. 2019/2020 2018/2019 KShs KShs Recurrent 9,626,390,729 7,241,238,030 Development 1,056,750,000 1,318,000,000 Total 10,683,140,729 8,559,238,030 The transfers from the State Department for Planning, as shown above, were received as per Appendix I and II. The World Bank, through The National Treasury, is supporting some of the Bureau's activities under the Kenya Statistics Programme For Results (KSP4R). (b) Funds from development partners that came directly to the Bureau. 2019/ 2020 2018/2019 KShs KShs 1. The National Treasury COVID-19 Household Impact Survey Funds 28,443,561 Regional Integration Implementation Programme 5,000,000 5,000,000 33,443,561 5,000,000 2. Other Development Partners OECD - Data Planning Tool 1,059,660 OXFAM - Time Use Survey 594,900 World Bank Consulting Service! - 22,232,056 UNFPA/UNICEF 18,533,400 - COMESA -CIP Funds - 1,207,834 Statistics Sweden 2,301,948 2,159,400 PPRA - Market Prices Survey 3,911,700 15,215,100 26,401,608 40,814,390 Total 59,845,169 45,814,390 The management sought funds from The National Treasury to carry out The COVID-19 Household Economic Impact Assessment. The overall objective of the survey was to assess the economic impact of the COVID-19 on the Kenyan Households. It was population-based and utilized Computer Assisted 45 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 Telephone Interviews (CATI) methodology. Two cycles of the survey were carried out during the period. COMESA and PPRA funds market price surveys for comparative purposes. COMESA also funds the regional integration programme through The National Treasury. The World Bank Consulting Services funded the preparation of County Gross Domestic Product (CGDP). These amounts were received per Appendix H. Statistics Sweden meets the salary dues for 8 interns, attached within the Bureau, for a period of one year. The expense amount is on a reimbursement basis. c. Revenue from other donors are funds from development partners and donors for specific on-going projects. The projects have independent bank accounts. Their actual amounts have been adjusted by the unutilized grants as at the year end, per Note 21. 2019/ 2020 2018/2019 KShs KShs NIPFN 52,266,925 - UNFPA 4,320 4,260 UNICEF - MICS 4,320 8,940,966 Total 52,275,565 8,945,226 3. Revenue from exchange transactions a. These are made up of the following: 2019/ 2020 2018/2019 Income form AIA KShs Interest on Deposits 63,828,579 273,483,715 Library Usage 33,980 42,200 Sale of Publications 1,525,079 2,168,689 AIA From Surveys 391,170 1,173,510 Sale of Maps 560,100 1,920,640 Sale of Tenders - 3,000 Commissions 419,113 221,731 Sale of Assorted Items - 158,400 2009 Census Refunds - 24,000 KPHC Gadgets surcharge Total 66,758,021 279,195,885 46 KVBS Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 b. Interest Income is received from earnings made on bank deposits. The income tax provision, based on the gross interest earned during the year, has been arrived at as follows: 2019 / 2020 2018/2019 KShs KShs G ross Interest Earned 63,828,579 273,483,715 30% Corporate Tax Charge 19,148,574 82,045,115 Relating to original and reversal of temporary differences. 4 Tax Expense as Reported in the Statement of Financial Performance 19,148,574 82,045,119 4. Project Expenses These are the expenses incurred on various surveys and censuses under the various funding schemes: 2019 / 2020 2018/2019 KShs KShs 2019 Housing and Population Census 9,228,837,684 1,805,207,409 Prefeasibility Expenses 478,974,503 432,151,311 KCHB Survey 177,528,413 84,915,554 COVID - 19 Survey 27,422,056 - KIBHS Survey - 5,859,321 National Strategy for Dvpt of Statistics 12,254,457 9,411,928 System Support and Data Dissemination 103,788,285 106,035,453 Statistics Sweden interns 2,301,948 2,159,400 NIPFN - EU Project 52,266,925 - UNFPA Expenses 4,320 4,260 UNICEFExpenses 4,320 8,940,966 10,083,382,911 2,454,685,602 47 KNBSS Kenya National Bureau of Statistics -REAuoFSTABSTICS Annual Reports and Financial Statements for the Year ended June 30, 2020 5. Employee Costs These include payments to members of staff and comprise of basic pay, house allowances and other benefits. The staff complement of the Bureau as at 30.06.2019 was 458 as compared to 450 as at 30.06.2020. 2019 / 2020 2018/2019 KShs KShs Basic Salaries 470,272,729 473,874,656 Casual Labour 7,380,434 1,236,684 House Allowance 79,025,875 82,399,047 Acting Allowance 584,436 444,120 Transfer/Baggage Allowance 1,821,458 837,467 Interns' payments 2,482,140 1,499,003 Commuting Allowance 56,463,590 58,405,746 Hardship Allowance 4,630,100 4,534,703 Special Duty Allowance - Leave Allowance 3,991,568 3,173,108 Extraneous Duty Allowance 18,363,000 19,555,871 NSSF - Employer's Contribution 1,161,300 1,109,800 Pension-Employer's Contribution 88,700,868 89,482,038 Gratuity Contribution 6,470,542 5,661,954 741,348,040 742,214,197 6. Board Members' Expenses These are the expenses incurred by the members of the Board of Directors: 2019 / 2020 2018/2019 KSh. KSh. Board and Committees expenses 2,707,218 8,475,091 Sitting allowances for board members 5,519,400 4,012,200 Conferences and Training 852,200 1,154,275 Honoraria 960,000 1,013,000 Total 10,038,818 14,654,566 Some of the Board's expenses during the period were under the census activities. 48 Kenya National Bureau of Statistics ::: N A Annual Reports and Financial Statements for the Year ended June 30, 2020 7. Depreciation and Amortisation These are made up of: 2019 / 2020 2018/2019 KSh. KSh. Depreciation Motor Vehicles 70,967,188 71,087,188 Furniture & Fittings 3,587,196 3,584,008 Computers 1,304,455,374 36,436,128 Buildings 177,697 50,000 Plant, Machinery and Equipmeni 2,238,012 2,145,324 Amortisation Software 13,291,304 15,557,976 Total 1,394,716,771 128,860,624 8. Repairs and Maintenance These comprise of: 2019 I 2020 2018/2019 KSh. KSh. Routine Maintenance Motor Vehicles 7,462,849 3,643,159 Plant Machinery and Equipment 64,100 1,880,074 Office Furniture and Fittings - 7,200 Buildings maintenance and Refurbishin 40,251,977 9,470,240 Computers and Servers 813,631 956,979 Total 48,592,557 15,957,652 9. Insurance Expenses These are made up of: 2019 / 2020 2018/2019 KSh. KSh. Staff Insurance 76,991,048 72,961,660 Fixed assets Insurance 11,789,032 8,923,121 Total 88,780,080 81,884,781 Staff insurance relates to group personal accident, inpatient and outpatient medical cover and group life cover. 49 Kenya National Bureau of Statistics BWtEA.,- ITCS Annual Reports and Financial Statements for the Year ended June 30, 2020 10. Other Operating Expenses The other operating expenses comprised of the following items: 2019 / 2020 2018/2019 KShs KShs Auditor's Fees 1,740,000 1,740,000 Utilities Supplies and Services 329,862 1,573,755 Telephone and Communication 6,504,847 5,608,448 Travelling Expenses 14,269,828 11,173,192 Publishing and Printing 1,347,200 Library Expenses 1,033,042 854,631 Advertising and Awareness 3,691,083 7,662,479 Training Expenses 37,813,945 54,031,907 External Travel 8,939,213 16,113,474 Stationery 11,800,535 3,910,615 Purchase of Uniforms - 750,000 Contracted Professional Services 1,117,773 1,498,000 Rent and Rates 5,237,844 4,004,937 New Office Block Expenses 181,725,498 301,555,495 Risk & Quality Management Expense! 9,550,627 13,223,326 Corporate Image - 325,600 Staff Welfare Expenses 13,452,991 15,908,236 TOTAL 297,207,088 441,281,295 The Bureau is in the process of shifting to a new office block. Partitioning, electrical and mechanical works are ongoing. 11. Bank Charges These are made up of: 201912020 2018/2019 KShs. KCB GOK - RECURRENT 7,807,265 1,002,570 KCB DEVELOPMENT 10,203 12,974 Total 7,817,468 1,015,544 50 Kenya National Bureau of Statistics Annual Reports and Financial Statements for the Year ended June 30, 2020 12. Cash and Cash Equivalents For purposes of the cash flow statement, cash and cash equivalents represent cash in bank and short-term deposits. 2019 12020 201812019 KSh. Ksh Bank 2,583,114,649 4,622,304,050 Short Term Deposits Total 2,583,114,649 4,622,304,050 The detailed analysis of the cash and cash equivalents is as follows: Banks 20191 2020 2018 12019 Name of Bank Account Number KSh. KCB -Main Account 1107086183 2,308,581,737 4,560,583,558 KCB- Development 1116027593 266,763,787 59,483,790 KCB- County Accounts 47 County Accounts 736,219 8,106 Project Accounts KCB: NIPFN - EU 1240875711 4,812,950 - Coop: UNICEF - MICS '01120081528600 57,618 61,938 Coop: UNFPA 01120081857000 2,162,338 2,166,658 Total 2,583,114,649 4,622,304,050 The details of the 47 County Accounts are as per Appendix IV. 13. Investments in Treasury Bills There were no investments within the period. 51 Kenya National Bureau of Statistics KNA SO Annual Reports and Financial Statements for the Year ended June 30, 2020 . ." 14. Receivables These are made up of: 2019 / 2020 2018/2019 KSh. KSh. Staff Debtors 265,780,908 493,856,282 2009 Census Imprests 4,438,906 4,438,906 2019 KPHC Imprest 1,538,563,613 64,799,799 Sundry Debtors 29,895,541 23,855,025 Prepayments 89,864,190 3,918,028,025 Deposits 164,240 344,241 1,928,707,398 4,505,322,278 Interest Income - 930,123 TOTAL RECEIVABLES 1,928,707,398 4,506,252,401 a. Staff debtors represent outstanding imprests, medical expenses recoverable and salary advances as at end of June 2020. b. 2009 census imprests were amounts advanced to the various District Census Committees, to facilitate various activities during the 2009 Population and Housing Census exercise, but still remains un-surrendered. The Bureau sought authority for write-off of these amounts, and this is still awaited. c. 2019 KPHC imprest were funds advanced to the County Census Committees and whose process of surrender is ongoing. d. Sundry debtors relate to an ERP development amount made to Mareba Computers, the subject of a court case per Note 25. The NIPFN Project owed Sh.5,585,749 to the Bureau relating to May and June 2020 salary dues and Sh.845,919 relating to furniture acquired during the period. e. Prepayments represent the proportion of various insurance and service contracts paid in 2019/2020, a proportion of which was for the period beginning 01.07.2020. Included in the prepayments is rent paid in advance for Headquarter Offices for the period between July and December 2020. f. Deposits are refundable amounts paid for rent deposit with Kenya Re for the KNBS Kisumu office. 52 tp �д' [з д� cD cD св оо д' I� т to ц? 1� 00 i� G4 F+ �Ei t� '� �г' CCi 00 е! 00 �F tD ` т r+� Сд О Cti Е'� � г д' tD J� N f�- о 00 Q� i0D t0 N СО l� д' п� 'СГ Q� 00 OQ 1*+� � N Ci? � С] 'С1' С`J h С`д т �� ц� т 1'` N ц? � М М iD � Q т� ов ау се� м д� � й�г со � ст а� � г2 т N д' CG ""' О цi г tL7 СО ц1 1# � � ц} LA � tD �r т N С'�1! �t9 CV О'� '� � r г N � �' С7 '�' N 00 ОС} QD ОС) о� Ф� 00 00 осэ oиr-r. r�с�аом со а�а� Li OD OQ tD �!? т! 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