·,. ' . REVOLUTIONARY GOVERNMENT OF ZANZIBAR TEL/FAX: 024 - 2234009 OFFICE OF THE CONTROLLER E-MAIL: info@ocagz.go.tz AND AUDITOR GENERAL WEBSTER: www.ocagz.go.tz MAISARA STREET P. 0 BOX 258 ZANZIBAR REF.NO: AUD/W.FM.2/VOL.1/6 DATE: 27TH DECEMBER, 2018 .....-·•--:" PRINCIPAL SECRETARY ~.~~·\~f~i.~~:µ . r· ~ , MINISTRY OF FINANCE AND PLANNING 1.f////'."',' . '}\: ZANZIBAR (( :~-r / l' .\ I, \ RE: REPORT OF CONTROLLER AND AUDITOR GENE~t~~~::;;~-:;:- .. ______..;,;, ,· ON THE FINANCIAL STATEMENTS OF ZANZIBAR URfMf::::~;:;/;,,~r;;·;-\ - .::'~ .. ""'"':...:,:·:.:.=..,.·--~·:··-~,,,--' SERVICES PROJECT (ZUSP} ADDITIONAL FINANCING FOR THE PERIOD ENDED 30TH JUNE 2018 Please refer the above subject. Find enclosed here with an Audit Report of Controller and Auditor General on the financial statement of Zanzibar Urban Services Project (ZUSP) Additional financing for the period ended 3Qth June 2018. I hereby on submit for your necessary action. Thanks. SALEH H. AB SS /CONTROLLER AND AUDITOR GENERAL ZANZIBAR I' THE REVOLUTIONARY GOVERNMENT OF ZANZIBAR OFFICE OF THE CONTROLLER AND AUDITOR GENERAL ZANZIBAR {OCAGZ) REPORT OF CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF ZANZIBAR URBAN SERVICES PROJECT (ZUSP) ADDITIONAL FINANCING FOR THE PERIOD ENDED 30TH JUNE 2018 Office of Controller and Auditor General P.O. Box 258, Zanzibar Tel: +255 24 2234009 Fax: +255 24 2234009 E-mail: info@ocagz.go.tz Website: www.ocagz.go.tz ' .. REVOLUTIONARY GOVERNMENT OF ZANZIBAR TEL/FAX: 024 - 2234009 OFFICE OF THE CONTROLLER E-MAIL: info@ocagz.go.tz AND AUDITOR GENERAL WEBSTER: WWW .ocagz.go.tz MAISARA STREET P. 0 BOX 258 ZANZIBAR REF.NO:AUD /W .FM.2/VOL.l/ 5 DATE: 27TH DECEMBER, 2018 PRINCIPAL SECRETARY MINISTRY OF FINANCE AND PLANNING ZANZIBAR RE: AUDIT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF ZANZIBAR URBAN SERVICES PROJECT (ZUSP) ADDITIONAL FINANCING FOR THE PERIOD ENDED 30TH JUNE 2018 We have audited the financial statement of Zanzibar Urban Services Project (ZUSP) Additional financing for the period ended 30th June 2018 and related statement of sources and application of funds for the year ended on the date. The audit was conducted in accordance with International Standard on Auditing (ISA) and included such other procedures that we considered necessary in the circumstances. Responsibilities of the Management The preparation and maintenance of financial statements is the responsibility of the Management of the Project. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of Rnancial Statement that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. I OCAGZ Responsibilities of the Controller and Auditor General Our responsibility is to express an independent opinion based on the audit. Specifically, we are required to satisfy our self whether the funds contributed to the Project were exclusively and judiciously to meet eligible expenditures with due regard to economy and efficiency, whether the accounts have been kept in accordance with International Accounting Standards, whether the internal control system applied is effective, and whether the procurement of goods and consultancy services were done in accordance with the agreement between the Revolutionary Government of Zanzibar and Development Partner. Basis of opinion The audit was conducted in accordance with International Standards on Auditing (ISA) and included such other procedures that we considered necessary in the circumstances. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the significant estimates and judgments made in the preparation of the financial statements, assessing whether the internal control system and the accounting policies are appropriate to the circumstances of the Project consistently applied and adequately disclosed. It also involves evaluating the overall financial statements preparation, and assessing the extent of compliance with the relevant statutory requirements. I believe the audit provides a reasonable basis for my opinion. Unqualified Opinion In my opinion, the financial statements present in all material respects, the true and fair view of the financial position of Zanzibar Urban Services Project (ZUSP) Additional Financing for the period ended 30th June 2018 and the results of the operations for the year ended in accordance with the Development Loan /CONTROLLER AND AUDITOR GENERAL ZANZIBAR 2 OCAGZ MINISTRY OF FINANCE AND PLANNING PROJECT TITLE: ZANZIBAR URBAN SERVICES PROJECT (ZUSP) ADDITIONAL FINANCING NOTES AND SCHEDULE TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30th JUNE 2018. 1 ACCOUNTING ENTITY. The International Development Association has been supporting the Revolutionary Government of Zanzibar through The Ministry of Finance for the project named Zanzibar Urban Services Project The project is financed by World Bank through International Development Association for the following objectives:- To Improve access to urban services in Zanzibar and conserve the physical cultural heritage at one public location within Stone Town. 2 PRINCIPAL ACCOUNTING POLICIES. 2 Basis of accounting. This financial statements have been prepared in accordance with Cash basis of accounting. No account is taken of income not yet received and liablities for goods and services remaining unpaid at the end of the financial period. IPSAS Financial Reporting Under the cash basis of Accounting. 2 The accounting policies have been applied consistently through the period. 2 Recognition of Income Income is recognised in the accounts when fund are received. 2 Recognition of Expenditure: Expenditure in respect of works, goods and services is recognised in the statement of receipts and payments at the time of payments. 3 Fixed assets: Fixed assets are expensed in the period of purchases. 3 Reporting entity The financial statement are for the Project of Zanzibar Urban Services Project 3 Reporting Currency The reporting currency is United State of America - Dollars (US$) 3 The following details explain the project receipts and payments by component and the sources of fund during the financial year under review as follows:- (a: Receipt from IDA During the financial year under review the project received fund from IDA USD 2,436,274.21 MINISTRY OF FINANCE AND PLANNING PRO.JECT TITLE: ZANZIBAR lJRBAN SERVICES PRO.JECT (ZlJSP) ADDITIONAL FINANCING COMPARISON BETWEEN BUDGET AND ACTUAL EXPENDITURE AS AT 30th .lllNE, 2018. IDA GOVERNMENT Budget Actual Variance Budget Actual Variance USD USD USD USD USD USD RECEIPTS Received from Government Loan from !DA 7 ,000,00_() 00 2,436,274 21 4,563,725_79 Total receipts 7,000,000.00 2,436,274.21 4,563, 725. 79 [PAYMENTS BY COMPONENT: Institutional Strengthening - ZMC ZMC -Consulatancy 240,000.00 .. i"'.7" . 28'.9&!,72 41,987.72 Resttlement 7.405.soo.oo ·-~ .,~a.t~:38 6,697,316.62 Goods 450,000:00 ,L, s:k 450,000 00 8,095,500.00 990,171.10 7,105,328.90 fu!ru1ort to JTCs • Pemba Island Prioritisation Pemba Small Investment 250,000.00 250,000.00 TC.works 350,000.00 350,000.00 600,000.00 600,000.00 PMT Training 95,000.00 95,000 00 Operating Cost 54,930.00 8,109.59 46,820 41 Goods 20,000.00 0 20,000.00 169,930.00 8,109.59 161,820.41 TOTAL EXPENDITURE 8,865,430.00 998,280.69 7,867,149.31 Total Variance as at 30th June 2018 7,867,149.31 ff fill behalf1,fthe ZUSP/fir the Prflject 1,f Ministry of Fintmce Project Cordinator . 1Officer Financ,a ····· ~- · ·· ," ./ //f;;;T!i:;;~~ I,(~\\ #3,te .. .R-:'. ,"",-Vo'' ,\\ ({ ;,:'";;-J';f;~,- ~t \\ ,c •,;ii ·,, ,,_:~?,;;;;;;;::;;;;:.:::1/· PROJECT TITLE: ZANZIBAR URBAN SERVICES PROJECT (ZUSP) ADDITIONAL FINANCING STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30TH JUNE 2018 us$ US$ us$ !RECEIPTS BY SOURCE OF FUND: LOAN GOVERNMENT TOTAL 2018 Opening Balance Loan account -Special account U$ 2,838,086.00 Local account U$ 999,91 o.14 local Escrow account U$ 1,686,186.14 World Bank (IDA): 2,436,274.21 2,436,274.21 Returns from Suppliers Government Contribution 7,960,456.49 2,436,274.21 [EXPENDITURE BY COMPONENT: Institutional Strengthening - ZMC Remuneration 281,987.72 281,987.72 ZMC ICT Resettlement 708,183.38 708,183.38 Sub Total 990,171.10 990,171.10 PMT Operating Cost 8,109.59 8,109.59 Sub Total 8,109.59 8,109.59 TOT AL EXPENDITURE 998,280.69 998,280.69 BALANCE OF FUND AS AT 30TH JUNE 6,962,175.80 6,962,175.80 [REPRESENTED BY: BANK BALANCE 6,962,175.80 6,962,175.80 The Financial Statements were signed on behalf of The Ministry of Finance - Zanzibar :::::,::::•;::,~~n,;ba~::~;,:by, " .. 2?:""" ' ·~. ,-, ,, j, ( . ,-. .. ,, ,J 1" ;..·~.,-~"c, f.- .•• Qr·.- ,•• r:-0> f/ '1..1..P\N '-'C.t/ ;.,,