DCG. 158/292/01 17i December 2018 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF AFRICA CENTRE OF EXCELLENCE IN MATERIALS PRODUCT DEVELOPMENT AND NANOTECHNOLOGY FOR THE YEAR ENDED 30TH JUNE 2018 In accordance with Article 163, (4) of the Constitution of Uganda 1995 (as amended), I forward herewith aLdited Financial Statements of Africa Centre of Excellence in Material Product Development an -NfPnotechnology with my report and opinion thereon. John F.S. Muwanga AUDITOR GENERAL Copy to: The Permanent Secretary/Secretary to the Treasury Ministry of Finance, Planning and Economic Development ¾ The Permanent Secretary, Ministry of Education Country Representative, World Bank The Principal CEDAT " The IGG Hon Minister of Ethics and Integrity 卜 . ㅏ -―덕．1．·■－■· TABLE OF CONTENTS LIST OF ACRONYMS .......... ............................................................ I ..................... REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF .......... -.3 O p in io n ........ ............... ............................ ............................................................... 3 Basis of Opinion ............................................................... ........................ .............. --3 Key Audit Matters ...... ................................................................................................... 3 Other Matter ........................................................... ................. .................. ....... - .... -4 Other Information ............ ...... ............................................................................ 4 Responsibilities of the Accounting Officer for the Financial Statements .......................... --4 Auditor's Responsibilities for the Audit of the Financial Statements .................................. -5 Other Reporting Responsibilities... ...... ................................... .............................. ..... -6 REPORT ON THE AUDIT OF COMPLIANCE W ITH LEGISLATION ................ .............. ........ 8 LIST OF ACRONYMS Acronym Meaning COEs Centers of Excellence GQU Government of Uganda BoU Bank of Uganda INTOSAI International Organization of Supreme Audit Institutions ISA International Standards on Auditing ISSAls International Standards for Supreme Audit Institutions IESBA International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants IFAC International Federation of Accountant MUK Makerere University NAA National Audit Act, 2008 PFMA Public Finance Management Act, 2015 TAI Treasury Accounting Instructions UGX Uganda Shillings MAPRONANO Materials, Product Development and Nanotechnology PAD Project Appraisal Document F/Y Financial Year EEP Eligible Expenditure Programs IPSAS International Public Sector Accounting Standard 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF MAKERERE UNIVERSITY MATERIALS, PRODUCT DEVELOPMENT AND NANOTECHNOLOGY (MAPRONANO) PROJECT UNDER MAKERERE UNIVERSITY FOR THE YEAR ENDED 30TH JUNE, 2018 THE RT. HON. SPEAKER OF PARLIAMENT Opinion I have audited the accompanying financial statements of the Makerere University Materials, Product Development and Nanotechnology (MAPRONANO) PROJECT under Makerere University for the year ended 30th June 2018. These financial statements comprise of the statement of Sources and Uses of Funds, and Statement of Funds (BreakDown) and Statement of Reimbursable Eligible Expenditure Programs, notes and accounting policies. In my opinion, the financial statements of the Makerere University Materials, Product Development and Nanotechnology (MAPRONANO) PROJECT for the year ended 30th June 2018 are prepared, in ail material respects, in accordance with Section 51 of the Public Finance Management Act, 2015, and the Financial Reporting Guide, 2018. Basis of Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statement's section of my report. I am independent of the project in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. I have determined that there are no Key audit matters to communicate in my report. 3 * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the project's ability to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Makerere University Materials, Product Development and Nanotechnology Project to fail to deliver its mandate. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other Reporting Responsibilities In accordance with sections 19(1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements that: Except for the matters raised in the compliance with legislation section below, and whose effect has been considered in forming my opinion on the financial statements; the activities, financial transactions and information reflected in the financial statements that have come to 6 my notice during the audit, are in all material respects, in compliance with the authorities which govern them. 7 AFR[CA CENTRE oF EXELLENCE IN MATERIALS PRODUCT DEVELOPMENT AND NANOTECHNOLOGY (MAPRONANO) MAKERERE UNIVERSITY TABLE OF CONTENTS TA BLE O F CO NTENTS ....................................................TE......... .............. INTRODUCTION 1 PRINCIPAL ACTIVITIES GOVERNENCE OF MAPRONANO BANKERS FINANCIAL STATEMENTS 3 NOTES TO FINANCIAL STATEM ENTSAT.................................................... 5 INTRODUCTION Mapronano is an Africa center of exllence in materials product development and nanotechnology under the college of engineering at Makerere University it's the first of its kind in Africa .the center is supported by the World Bank. Its part of the of the eastern and southern Africa higher education centers of exilence project ACE lI coordinated by the inter university council for east Africa (IUCEA) which is a regional body facilitation unit. CORE ACTIVITES Research and Training. GOVERNANCE OF MAPRONANO During the period under review the center has been managed by the following members. 1- Prof. John Babtist Kirabira Center Leader/PI 2- Dr. Micheal Lubwama Deputy center leader 3- Prof. Henry Alinaitwe Principal college of Engineering 4- Mr.Mujuni Brian Project Manager Auditors: Office of the Auditor General P.o. Box 7083 Kampala Bankers: Bank of Uganda Kampala Road AFRICA CENTER OF EXCELLENCE IN MATERIALS PRODUCT DEV'T AND NANOTECHNOLOGY MAKERERE UNIVERSITY MAPRONANO Source and Uses of Funds For the Annual Period Ending 30th June 2018 Sources of Fund July-Dec 2017 Cumulative to-date 12 Months Opening Cash Balance 895,285 1,127,576 Government Funds - - World Bank IDA Funds - Student Fees - Others - Total Add Receipts Government Funds - World Bank IDA Funds Student Fees - Others - 1t al--inancing 895,285 1,127,576 Less: ACE Expenditure as per Project Implementation Plan Learning Excellence 63,821 96,927 Research Exellence 251,074 315,384 Equity Dimentions (Out Reach Activities) 65,327 114,807 Monitoring & Evaluations 17,800 79,989 Salary/Admin and Coordination 46,370 63,859 Total Uses of Funds by Components 444,392 670,966 Closing Balances 450,893 456,610 Government Funds - World Bank IDA Funds Student Fees - Others - Total Closing Cash Balance 450,893 456,610 Bank of Uganda Balance as per bank statement USD account number (003360088400005) 394,817 Balance as per bank statement UGX account number (003360088000004) 59,378 Total Closing Cash Balance .454,195 NOTE: Exchange Rate 3584 Prof. He [nae S i . Principal CEDAT. Date 14th Dec 2018 AFRICA CENTER OF EXCELLENCEN MATERIALS PRODUCT DEV'T AND NANOTECHNOLOGY MAKERERE UNiVERSITY MAPRONANO Uses of Funds (B re akdown) For the Annual Prlod Endng 30th June 2018 Expenditure Current Semester July-Dec 207 Cumulative todate 12 months Expanniton of Vanance Adlus? ~ Phfaire- t-:A Actual Planned · Mäfi__lc¯_ _ E xpendlture Classlficaton las pEr Project pi m plemenatN lan ¯ la n Learniieg Excellence . 1.1.1 Undergraduate Curricum Revtew, Me ch & Biamedica Eng.Courses - 17.00 17,800 17,800 - Activ Cnm 'eted ndfthe report is ready 11.2 Curcdulum DevelcPment Masiers 25.875 . 40.000 25.875 40,000 14,125 Funds for Curricufum for masters has been isued ou. 1.1.3 Develorment and Delivery oF Shcrt Courses 14,542 30,000 29.848 .30,000 152 Ccurses in Recomb¯nant and Nanuobdy techno[ogy, Biomformatics & NGS com eleted 1.1.4 Pedagogy arnd Saff Traini 23,404 30.000 23,404 30.000 6,596 Tutron for slaff trainnig has been pa¯d Research EIelce ¯len 2.2.1 denifcation or Equtpmerti and Suppries 19,044 20,000 19.044 20,000 956 tdentication af eucrupment has been done. 2.2.2 Procuerment of Lab Eqtuipmeni ,T Equip't ard Funture 75,583 370,000 132>818 370.000 237.182 Fumilure and IT Eqkpls have been procured and lab equo1 in finnal stages 2.2.3 Jntaýialon and C ommisiniing Of E qpt - 30,00D - 30,001) 30¯000 No Cormissiáonng has been done. 2.2.4 PhD andcl Msc Trainning 133.816 150.000 132.318 150.000 17.684 Award lelters have been issued out tonludents 2.2.5 Consumables 13.617 22.200 22.192 22,200 8 ¯ 2.2.5 Procureement Of Proc Vebi-ze 813 80.000 613 20,000 79>3B7 vAwaling 8reetier from the minister of pubte service for suppdy of MviehC!e 2.2.7 Settin UpV websile Perial arid T Management 8.401 10.000 8.401 10,000 1,599 WebsiLelfu!v sel up and "nnlrlq EquIty Dimenltons (Out Reach Activities 3.3.1 Out Reach Industry and National Partners 17,188 20,000 17,188 20,000 2.812 Activity Comp!eled 3.5.2 Out Reach Regional Partner Univrsties 10,380 63.00 59,860 0,000 Activity Complted 3.3.3 Oi Reach Undergraduate Sluders 14.398 14.000 14,398 14o000 ¯ ¯Iy A cvt omp!eled 3.3.4 Garider Mans treamrn Hiqh schol 15.100 25.000 15.100 25.000 9,900 Acfivity near Complion. 3.3.5 Advert 8.261 15,00 8.261 15.000 6.739 Monitoring & Evaluatiens 4.4.1 Annual Steering CommmrleelPartnarohip and Brenchmarkins ) 17.00 80.000 79.989 80.000 ii Aclivrty Corniered 4.4.2 Subm isiori ofReperts •3 8.000 - 8.000 8.000 ti ProCess 8.5.1 Salary/Admnin and coordination 646,370 78,000 3,859 78.00D 14.141 la Progress Grard TotalUses fFunids 444,392 1,100,000 570,986 1,100,000 429,034 NOTE: Exchange Rate 3584 Pref. Hen /tinal Tit1e' Princ.Pal CEDAT Dale: 14th Duc 2018 I I i ii i I ii iL STATUS OF ACTIONS AMOUNT EXPECTED AMOUNT IUNDISBURSED DISBURSEMENT LINKED TO INDICATORS ACTIONS TO BE COMPLETED COMPLETION ALLOCATED Earnings DISBURSED BALANCE DLR 1.1: To meet Conditions for Effectiveness 100% 600000 - 600000 - OLR 1.2: Development of detailed DLIl inlstitutional readiness imp:emelat!ion plans 100% 500,000 - 500,000 - DLR 2.1: Timey annual implementation of the plars 61% 500,000 61,000 - 500.000 DLR 2-2: Newly enrol!ed students in the ACE of which at least 20% must be regional (African) students. 1,200.000 1,072,200 - 1,200,000 DLR 2.3 Accreditaton of quality of education programs. in progress 600.000 600,000 - 600,000 DLR 2 4- Collaboration and partnerships for applied research and training 2 MoU signed 200.000 200,000 - 200,000 OLR 2.5: Peer-reviewed journ aJs papers or peer-reviewed conference Papers in progress 300,000 300,000 - 300,000 DLR 2.A: Faculty and PhD student exchanges to promote regional research and teaching in progress 500,000 200,000 - 500,000 DLR 2.7: External revenue generation 900,000 174.730 - 9no,000 DLR 2.8 Institution participating in DL 2: Excellence in education and research capacity and developm ent im pact benchmarking exercise in progress 100,000 100,000 - 100.000 OLR 3.1 Timely Withdrawal Application supported by financial reporting on the ACE account for the period 1 75,000 15,000 - 75,000 DLR 3.2: Functioning Audit Committee under the university council 75.000 15,000 - 75,000 DLR 3.3: Functioning internal audit unit for the University 75.000 15.000 - 75,000 DLR 3.4: Transparency of financial management (audit reports, interim financial reports, budgets and annual DL 3 Timely, transparent and institutionally reviewed Financial Management work plan are all web accessibe) 75,15.0.00 - 75,000 OLR 4.1 Timely procurement audit report 150,000 30,000 - 150.000 DLR4 2: Timely and satisfactory DL 4 Timely and audited Procurement procurement progress report 150,000 30.000 - 150.000 Total 6,000,000 2,827,330 1,100,000 4,900,000 Undispursed balance 4,900,000 Prof. Hen Ati atwe Sign .... ........... Title. PrincipaJ CEDAT Date: 14th Dec2018 AFRICA CENTER OF EXCELLENCE IN MATERIALS PRODUCT DEV'T AND NANOTECHNOLOGY MAPRONANO MAKERERE UNIVERSITY Statement of Reimbursable Eligible Expenditure Programs (EEPs) for the Annual Period Ending 30th June 2018 Cummulative to Current Eligible Expenditure Program (EEP) Semister Date 12 Mouth EEP 1: Salaries 26,822,629 53,645,258 EEP 2: Non Procurable Expenditure as defined in Financing Agreement 369,447 545,584 Total EEPs 27,192,076 54,190,842 Note: Salaries for the University for the year 2016/2017 was Shs 201,008,784,795 Bn Therefore salaries for the semi Annual is half 100,504,392,397 bn shs converted to USD at rate of 3,747/= 26,822,6291= Prof- Hen itwe Sign: 4th D Date:, 14th Dec 2018 NOTES TO FINANTIAL STATEMENTS I- POLICIES AND PROCEDURES The Accounting policies and procedures of MAPRONANO are in accordance with the following. i) International Financial Reporting standards ii) The ACCOUNTING latest issue of the World bank Financial accounting Reporting and audit Guidelines. 2. BASIS OF ACCOUNTING AND REPORTING i) The accounting records and financial statements are prepared on a cash basis of accounting (in accordance with the international public sector accounting standards (IPSAS) issued by International Federation of Accountants (IFAC) and under the historic cost convention. JI) Financial Transactions are recognized and recorded on cash basis. iii) Revenue is recognized when cash is received at the Bank of Uganda Account. iv). Project expenditures are recognized and recorded when payments are made to beneficiaries and not when the liabilities are created. V) Assets are expensed in full in the year of purchase, consistent with the cash basis of Accounting. 3. CURRENCIES. 1) Foreign currency transactions The functional currency for MAPRONANO is USD. 4) LOCAL CURRENCY Where the project recognizes that transactions may be effectively conducted and accounted for in local currency the Dollar is translated of the rate provided by BOU. Differences in exchange rates due to conversion are dealt in sources and uses of funds in the year where they arise.