REPUBLIC OF KENYA OFFICE OF THE AUDIT9R-GENERAL REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMEN o KENYA TRANSPORT SECTOR SUPPORT PROJECT (KTSSP) IDA CREDIT NO. 4926 FOR THE YEAR ENDED 30 JUNE 2015 KENYA CIVIL AVIATION AUTHORITY 1 I I 1 KENYA CIVIL AVIATION AUTHORITY KENYA TRANSPORT SECTOR SUPPORT PROJECT (KTSSP) IDA CREDIT NO: CR 4926 KE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH JUNE 2015 KENYA CIVIL AVIATION AUTHORITY TABLE OF CONTENTS KEY AUTHORITY INFORMATION AND MANAGEMENT ................3...........3 CORPORATE PROJECT INFORMATION, MANAGEMENT & IMPLEMENTATION: .................7 STATEMENT OF DIRECTOR GENERAL AND PROJECT COORDINATORS' RESPONSIBILITY......9 REPORT OF THE AUDITOR-GENERAL ..................... .................. 10 STATEMENT OF COMPREHENSIVE INCOME.. .................1......................1 STATEMENT OF FINANCIAL POSITION ............................................. 12 RECEIPTS AND PAYMENTS STATEMENT ............................................ 14 STATEMENT OF COMPARATIVE BUDGET AND ACTUAL................................. 14 NOTES TO THE FINANCIAL STATEMENTS ................................................ 15 2 KENYA CIVIL AVIATION AUTHORITY KEY AUTHORITY INFORMATION AND MANAGEMENT (a) Background information INTRODUCTION Kenya Civil Aviation Authority was formed on 241h October 2002 following the enactment of The Civil Aviation (Amendment) Act, 2002. The Act received Presidential assent and became effective on the same day, 24th October 2002. This Act amended the Civil Aviation Act (Cap.394) of the laws of Kenya and established the Kenya Civil Aviation Authority (KCAA) as an autonomous corporate body that took over the functions of the Directorate of Civil Aviation (DCA) and the licensing of air services hitherto under Civil Aviation Board (CAB). The Civil Aviation Act (Cap 394) and the Civil Aviation (Amendment) Act, 2002 have now both been superseded by The Civil Aviation Act, 2013. At cabinet level, Kenya Civil Aviation Authority is represented by the Cabinet Secretary for Transport & Infrastructure, who is responsible for the general policy and strategic direction of the Authority. VISION To be a model of excellence in civil aviation MISSION To develop, regulate and manage a safe, efficient and effective civil aviation system in Kenya. CORE VALUES Commitment to Safety and Security: We endeavour to maintain a safe and secure environment in all areas of our operations and entire civil aviation industry within our jurisdiction Customer Focus: We undertake to embrace, meet, delight and exceed our customers' expectations through passionate pursuit of service excellence. We shall invest on our people and systems, to continuously enhance quality service provision to our customers as a priority. Commitment to Fairness and Equity: We commit to be fair and promote equity in all our activities. We enforce our corporate Non-discrimination policy at an arm's length. We shall promote the Government's efforts to avert corruption in the country by ensuring zero tolerant to corruption. KCAA will strive to be a just, accountable and performance driven Authority. Background information (continued) Commitment to Staff: We undertake to continuously invest in our human capital to enhance professionalism and integrity. Creativity and Innovativeness: We recognize and encourage initiative, creativity and innovation aimed at adding value to our operations and supply chain command. Respect for Diversity: We recognize and appreciate differences in gender, race, disability, region, age and generation. The differences complement and bind us together as one family, KCAA. (b) Principal Activities KCAA performs two broad key functions. The first one is to provide air navigation services in Kenya's Airspace (also referred to as the Nairobi Flight Information Region). The second is to regulate the aviation industry in Kenya. In addition to this, KCAA offers training for aviation personnel through the East African School of Aviation. The mandate of the KCAA is essentially embedded in its functions/responsibilities, which are enumerated in the Civil Aviation Act 2013. These functions are enumerated as follows: (a) Licensing of air services; (b) Provision of the air navigation services; (c) Establishment and maintenance of a system of aircraft registration and the marking of civil aircraft; (d) Securing sound development of the civil aviation industry in Kenya; (e) Advising the Government on matters concerning civil aviation; (f] Co-ordination and direction of search and rescue services; 3 KENYA CIVIL AVIATION AUTHORITY (g) Facilitation and provision of all the necessary support for aircraft accident and incident investigations conducted by the investigator-in-charge; (h) Carrying out investigations on incidents that are not classified as accidents and serious incidents; [i) Safety, security, economic and technical regulation of civil aviation; (J) Dealing with incidents of unlawful interference with aviation security; (k) Establishment, co-ordination and maintenance of State Safety Security programmes; (1) Certification of aircraft operators; (m) Enforcement of approved technical standards of aircraft; (n) Licensing and monitoring of aeronautical personnel; (b) Principal Activities (continued) (o) Provision of technical services for the design, installation, and modification of electronic, radio and other equipment used in the provision of air navigation services; (p) Ensuring the integrity of the systems, equipment and facilities of the Authority; (q) Issuance and dissemination of the publications referred to in the Act; (r) Production of accurate, timely, comprehensive and relevant air transport information for planning and decision making purposes; (s) Approval, certification and licensing of aircraft maintenance organizations' and regulation of aviation training institutions in Kenya; (t) Establishment, management and operation of training institutions for purposes of the Authority; (u) Registration of rights and interests in aircraft; (v) Planning, development and formulation of the airspace master plan for the safe and efficient utilization of Kenyan airspace; (w) Establishment, co-ordination and maintenance of state aviation safety and security programmes; (x) Licensing and certifications of aerodromes, regulated agents and air navigation service providers; (y) Performing economic oversight of air services, protecting consumer rights, environment and ensuring fair trading practices; (z) Giving effect to the Chicago Convention and other international agreements relating to civil aviation to which Kenya is party to. KCAA carries out its functions in a manner consistent with the Chicago Convention on International Civil Aviation, Annexes to the Convention relating to international Standards and Recommended Practices (SARPs), and other international conventions and protocols relating to civil aviation, to which the Republic of Kenya is a party. KCAA is also expected to perform any obligations required by any agreement, treaty or arrangement between Kenya and any other country, inter- Governmental organization or any other body with respect to the safety, regularity and efficiency of air navigation and aviation safety in general. 4 KENYA CIVIL AVIATION AUTHORITY The Act also stipulates that KCAA should coordinate with other Government agencies such as the Kenya Airports Authority, Kenya Ports Authority, Kenya Defense Forces and the Police Service in the discharge of its responsibility for aviation safety and security. (c) Key Management The Authority's day-to-day management is under the following key organs: - Principal Secretary for Transport; - KCAA Board of Directors; The Director General and the KCAA Management Team (d) Key Management The key management personnel who held office during the financial year ended 30th June 2015 and who had direct fiduciary responsibility were: No. Designation Name 1. Director General Capt. Gilbert M. Kibe 2. Corporation Secretary Judith N. M. Ng'ethe 3. Director Corporate Services Joseph K. Chebungei 4, Director Air Navigation Services Eng. Reuben J. Lubanga 6. Director EASA Dr. George K. M. M'Nchebere (e) Headquarters and Main Stations Head Office Wilson Airport KAA Complex P0 Box 30163 Jomo Kenyatta International Airport NAIROBI, KENYA P 0 Box 30163, 00100 GPO Tel: (020) 606246 Fax: (020) 604692 NAIROBI, KENYA E-mail: Wilson@kcaa.or.ke Tel: (020) 827470-5 Fax: (020) 822300 E-mail: info@kcaa.or.ke Malindi Airport Website: www.kcaa,or,ke P.0 Box 18 MALINDI, KENYA Jomo Kenyatta International Airport Tel: (042) 30463 Fax: (042) 30428 P0 Box 19031 E-mail: malindi@kcaa.or.ke NAIROBI, KENYA Tel: (020) 827100 Fax: (020) 827102 Kisumu Airport E-mail: jomo@kcaa.or.ke P 0 Box 431 KISUMU, KENYA Moi International Airport Tel: (057) 2024499 Fax: (057) P0 Box 93939 2021035 MOMBASA, KENYA E-mail: Kisumu@kcaa.or.ke Tel: (041) 3433008 Fax: (041) 3432069 Email: mombasaPkcaa.or.ke 5 KENYA CIVIL AVIATION AUTHORITY Eldoret Airport (f) Bankers P0 Box 3036 National Bank of Kenya, ELDORET, KENYA Jorno Kenyatta International Airport Tel: (053) 2062966 Fax: (053) Branch 2062965 P. 0. Box 30763 - 00100 E-mail: eldoret@kcaa.onke NAIROBI, KENYA East African School of Aviation (g) Independent Auditors P0 Box 30689 Auditor General NAIROBI, KENYA Kenya National Audit Office Tel: (020) 823602-7 Anniversary Towers, University Way Fax: (020) 823699 P0 Box 30084 Website: www.easa.ac.ke GPO 00100 F-mail: infoPeasa.ac,ke NAIROBI, KENYA Lokichoggio Airport Tel:(054)32292 (h) Principal Legal Advisor LOKICHOGGIO, KENYA F-mail: loki@kcaa.or.ke The Attorney General State Law Office Harambee Avenue P 0 Box 40112 City Square 00200 NAIROBI, KENYA 6 KENYA CIVIL AVIATION AUTHORITY CORPORATE PROJECT INFORMATION, MANAGEMENT & IMPLEMENTATION: The KCAA component is part of the IDA financed Kenya Transport Sector Support( the Project Number is P124109 while the Credit Number is 4926-KE) that the Government of Kenya signed in May 2011 for the purpose of financing development projects in the Transport Sector. KCAA is one of the implementing agencies of the project. The Financing Agreement (FA) was initially signed between the Government of Kenya (GoK) and the World Bank on 23r May 2011 and became effective on 22nd August 2011. However in March 2014, due to an additional financing given to the project by the World Bank, a new Financing Agreement was signed between GoK and the World Bank. Under the additional financing, KCAA received a grant support of USD 1,660,000. The overall implementation period of the entire project is seven years. The KCAA component, is projected to be implemented over a 7-year period at an approximate cost of US$ 23.6 million. To date KCAA has received Kshs.1,326,500,115 (USD 15 Million Approx.) from IDA as the drawn loan amount. The loan attracts an interest of 5% p.a, payable on 15t February and 1S " August each year. The repayment of the principal amount of the loan shall commence from 2019 for a period of 23 years. Project Sub-components:- The KCAA Component of the KTSSP project is comprised of four sub-components which are briefly described here below:- a) Provision of technical assistance to strengthen KCAA's Aviation Safety and Security Oversight Capacity. Implementation of this sub-component entails the following key activities: procurement of flight safety consultancy services, purchase of aviation security training equipment, establishment of flight safety technical library, review and development of technical examination questions, rehabilitation of technical examination center and purchase of reference documents for the library. To date the following contracts have been signed: four contracts for flight safety consultants and two contracts for procurement of aviation security equipment. The amount allocated for this sub- component is USD 2.89 million. b) Upgrading of Air Navigation Systems Implementation of this sub-component entails supply, installation and commissioning of the following four types of air navigation systems: Communications systems, ATS Message Handling System, Navigation Aids Systems, and Flight Safety Procedure Design. Four contracts have been 7 KENYA CIVIL AVIATION AUTHORITY signed for implementation of the foregoing systems and all of them have been successfully implemented and completed. The amount allocated for this sub-component is USD 6.40 million. c) Construction of an office block for KCAA headquarters and supervision of the related construction works. Implementation of this sub-component entails construction of an office block that will serve as the headquarters of KCAA. Towards this end a contractor has been engaged construction the office block including an access road. As the end of June 2015, the contractor had completed 85% of the scheduled construction works. The amount allocated for this sub-component is USD 11.50 million. d) Implementation of Information Communication Technology Systems Implementation of this sub-component entails procurement of the following seven ICT Systems: Human Resource Management System; Electronic Document Management System; E-mail and Collaboration Suite; PABX for EASA; Five Servers and Server Racks; Car track and Fleet Management Solution; and establishment of Remote Disaster Recovery Site. The E-Mail and Collaboration suite, PABX for EASA, Five servers and server racks and the car track and fleet management have been completed. Implementation of the human resource management system and electronic document management system, are currently ongoing. The amount allocated for this sub-component is USD 1.3 million. e) Training of KCAA Staff This is meant enhance appropriate competencies in aviation safety and security. The amount allocated for this sub-component is USD 1.0 million. Project Staff: As per the Financing Agreement KCAA is to constitute a Project Implementation Team (PIT) comprising of the following:- 1. Project Team Leader, 2. Project Coordinator, 3. Financial Management Specialist, 4. Procurement Specialist, 5. Technical specialist. The PIT is directly responsible to the Director General in the performance of its duties. 8 KENYA CIVIL AVIATION AUTHORITY STATEMENT OF DIRECTOR GENERAL AND PROJECT COORDINATORS' RESPONSIBILITY The Financing Agreement dated May 23, 2011 between International Development Association (IDA) and Kenya Civil Aviation Authority (KCAA) Article IV requires the Authority to prepare financial statements for each financial year, which adequately reflect the operations, resources, and expenditures related to the KCAA Component of Kenya Transport Support Project as at the end of the financial year under review. It also requires the project accounting officer and the coordinator to ensure that proper accounting records are kept, which disclose with reasonable accuracy at any time, the financial position of the project., It also requires the project to design, implement and maintain 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 fraud or error; safeguarding the assets of the project; selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. The Director General and the Project Coordinator on behalf of the Authority, accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Public Sector Accounting Standards and the requirements of the Credit Agreement. The Accounting Officer and the Project Coordinator are of the opinion that the financial statements give a true and fair view of the state of the project financial position as at 30' June 2015 and further confirm the completeness of the accounting records maintained for the project which have been relied upon in the preparation of the financial statements as well as on the adequacy of the internal control systems. The Director General and the Project Coordinator confirm that the project has complied fully with the terms and conditions of the Financing Covenants in accordance with the legal agreement and the applicable Government regulations and that the project funds received during the period under audit were used for the eligible purposes for which they were intended and were properly accounted. ......... ............ .............. CHARLES KOMBO CAPT. GILBERT M. KIBE PROJECT COORDINATOR DIRECTOR GENERAL ...£Y .. . C2 v . . ..... ... Date Date 9 弓’｀〕 REPUBLIC OF KENYA Tclephone: -254-20-3 42330 P.O. Box 30084 -00 100 Fx%; 254-20 3 11482 E-Mail: NAIROBI OFFICE OF THE AUDITOR-GENERAL REPORT OF 'THE AUDITOR-GENERAL ON, XENYA 3RANSPORT SECTOR SUPPORT PROJECT (KTSSP) IDA CREDIT NO.,, 4926 - KE FOR THEYEAR ENDED, 3.0 JUNE 2015 KENYA CIVIL AVIATION AUTHORITY, ,REPORT-ON THE FINANCIAL STATEMENTS 1, have, audited the accompanying financial statements, of Kenya Transport' Sector Support Project (KTSSP). IDA Credit No., 11 to. 18, which' 'comprise the statement of finaricial position as at 30 June 2015,, and the. statement,of comprehensive income, cash'flow statement' r6iceipts'and payments 'statement and statement of comparative budget and actual for the year then ended, 'and a summary of significant accounting policies. and other . exr)lanatory information in accordance with provisions of Article 229 of the Constitution of Kenya, Section:14 -of the Public Audit Act,, .2003 and 'the Development 'Credit Agre I empnt, No.,4926'KE dated, 23 May 20.11 between the Republic of Kenya 'and International Development Association. . I have obtained all the information and explanations which,,to the',best,of my knowledge and belief, were necessary,for.Ithe purpose of the audit. Management's Responsibility for the Financial Statements The Director-General of Kenya Civil Aviation and Project Coordinator are responsible for the preparation and fair presentation of these financial statements'in accordance with International Public Sector Accounting Standards (Accrual Basis) and for such internal control as management determines is, necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The management is also responsible for the submission of the''financial statements to the Auditor-Gerteral in accordance with the provisions of Section 13 of the Public Audit Act, 2003. Auditor-General's Responsibility My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section, 15 of the Public.Audit Act 2003 and submit the report in compliance with Article 289(7) of the Constitution of Kenya. The audit was conducted in accordance with the International Standards on Supreme Audit Institutions (ISSAls). Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the Kenya T-i7iisl3o -ISecto;-Stipl. oi-tPi-(?iecitKTSSP) IDA Credit.jVo. 4926-KE-AnnualReporl andFinancied Statementsfiv the year ended 30 June 2015 auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's - preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Projects internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. I b"elieve the audit evidence obtained is sufficient and appropriate to provide a basis for my qualified audit opiniorn Basis for Qualified Opinion Unexplained/Unreconciled cash balance The statement -o finarncial position as at 30 June 2015 reflects cash balance of Kshs.57,565,861. However, the cash book reflects a balance of Kshs.53,350,05 while the bank certificate reflects a balance of kshs. 52,300.05. The variances in the three figures have not been explained or reconciled. In the circumstances, it has not been possible to confirm the correctness and the accuracy of cash balance of Kshs.57,565,861 as at 30 June 2015. Qualified Opinion In my opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the, financial position of the Project as at 30 June 2015, and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards (Accrual Basis) and conforms to the Development Credit Agreement No. 4926 KE dated 23 May 2011. In addition, the special account statement presents fairly, the special account transactions and the closing balance has been reconciled with the books of account. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by the International Development Association, I report based on my audit that:- i. All International Development Association funds have been used in accordance with the conditions of the Credit Agreement, with due attention to economy and efficiency and only for the purpose for which the fund were provided; ii. Counterpart funds have been provided and used in accordance with the conditions of the Agreement, with due attention to economy and efficiency and only for the purpose for which they were provided; iii. Goods and services financed have been procured in accordance with the Agreement and in compliance with the World Bank rules and procedures; Keiya Transport Sector Support Project (KTSSP) IDA Credit No. 4926 - KE - Annual Report and Financial Statementsfor the year ondod 30 June 2015 2 iv. Necessary supporting documents, records and accounts have been kept in respect of all Project activities; v. Adequate internal control to monitor expenditure and other financial transactions exist; and vi. A fixed assets register for the Project's assets was maintained during the year. FCPA Edward R. 0. Ouko, CBS AUDITOR-GENERAL Nairobi 29 December 2015 Kenya Transport Sector Support Project (KTSSP) IDA Credit No. 4926 - KE - Annual Report and Financial Statements for the year ended 30 June 2015 3 イ― - - KENYA CIVIL AVIATION AUTHORITY KENYA TRANSPORT SECTOR SUPPORT PROJECT CR: 4926 KE STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30TH JUNE 2015 Note 2015 2014 Income Kshs. Kshs Interest Receipts 6 381,037 2,585,879 Project counterpart 7 1,413,349 8,893,274 Total Income 1,794,386 11,479f153 Expenditure Training of staff and 7 214281595 5,225,350 trainers Aviation Safety Consultancy 7 291254,510 27,309,645 Project operating costs 7 1,413,349 2011431229 Bank Charges 8 10,380 221671 Total Expenditure 331106,834 52,700,895 Surplus/ (Deficit) for the year (31,312,448) (41,221,742) Surplus /(deficit) B/F (65,534,846) (24,313,104) Surplus/ (Deficit) C/Forward (96,847,294) (65,,534,846) KENYA CIVIL AVIATION AUTHORITY KENYA TRANSPORT SECTOR SUPPORT PROJECT - CR: 4926KE STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE 2015. 2015 2014 ASSET Note Ksh Ksh Fixed Assets Property Plant & Equipment 2 510,902,290 26,922,542 Motor Vehicles 2 11,401,843 11,401,843 Computer Hardware & 2 25,739,639 25,739,638 Software Property Plant & Equipment 2 20,650,159 431,282,356 Work In Progress Building Work in Progress 2 666,315,020 169,117,512 Total - Non Current Assets 1,235,008,951 664,463,891 Current Assets Cash Balance 3 57,565,861 11,218,155 Total Current Assets 57,565,861 11,218,155 TOTAL ASSETS 1,292,574,812 675,682,046 Equity and Liabilities IDA Loan 4 1,326,500,115 659,430,945 KCAA Counterpart 4 55,442,880 55,442,880 Accounts Payable 5 7,479,111 26,343,067 Surplus / (Deficit) Account (96,847,293) (65,534,845) TOTAL LIABILITIES & 1,292,574,812 675,682,047 LOAN CHARLES KOMBO CAPT. GILBERT M. KIBE PROJECT COORDINATOR DIRECTOR GENERAL Date Date 12 KENYA CIVIL AVIATION AUTHORITY KENYA TRANSPORT SECTOR SUPPORT PROJECT - CR: 4926KE CASHFLOW STATEMENT FOR THE YEAR ENDED 30TH JUNE 2015 2015 2014 Note Ksh Ksh Cash from Operating Activities Net Surplus from Operations (31,312,448) (41,221,742) Adjustments Operating profit before working Capital changes (31,312,448) (41,221f742) (Increase) / Decrease in Interest Receivable 2,412,159 Increase / (Decrease) in Creditors 13 (18,863,956) 23,216,702 Net Cash from Operating Activities (50,176,404) (15,592,881) 90% Surplus Paid / Corporation Tax Paid 14 (50,176,404) (15,592,880) Cash used in Investing Activities Purchase of Fixed Assets (570,545,059.96) (536,863,237) Disposal of Assets Total Cash used in Investing Activities (570,545,059.96) 536,863,237 Cash flow from Financing Activities Loans received IDA 667,069,170 438,214,046 GOK/KCAA Counterpart 55,442,880 Net Cash flow from Financing Activities 667,069,170 493,656,926 Increase / (Decrease) in Cash & Cash Equivalents 46,347,705 (58,799,191) Cash & Cash Equivalents at the Start of the Year 11,218,156 70,017,347 Cash & Cash Equivalents at the End of the Year 57,565,861 11,218,156 13 KENYA CIVIL AVIATION AUTHORITY RECEIPTS AND PAYMENTS STATEMENT FOR THE YEAR ENDED 30TH JUNE 2015 2015 2014 Receipts Ksh Ksh Receipts from Min. Of Transport ( WB) 110,000,000 66,878,286 Interest income - 2,412,159 Interest Income 381r037 2,585,879 110,381,037 71,876,324 Payments Training of staff and trainers 2,428,595 3,688,350 Consultancy services for Aviation safety 13,070,663 27,451,001 Consultancy services for KCAA HQ 16,183,847 11,077,150 Aviation Equipment Purchase 13,475,890 88,434,342 Payment to Creditors 18,863,955 - Bank charges 10,380 24,672 64,033,331 130,675,515 Excess Receipts over Payments 46,347,706 (58,799,191) Opening balance as 11,218,155 70,017,346 Closing Balance IDA Account 57,565,861 11,218,155 STATEMENT OF COMPARATIVE BUDGET AND ACTUAL KTSSP- KCAA BUDGET 2014- ACTUAL 2014- VARIANCE COMPONENT 15 (A) 2015 (B) (A-B) Ksh Ksh Ksh Proposed KCAA HQ Construction 615,000,000 416,056,152 198,943,848 Aviation Equipment Purchase 190,000,000 154,488,908 35,511,092 Support to Aviation Safety & Security consultancy & HQ Consultancy 45,000,000 29,254,510 15,745,490 Training KTSSP 20,000,000 2,428,595 17,571,405 Total 870,000,000 602,228,165 267,771,835 14 KENYA CIVIL AVIATION AUTHORITY NOTES TO THE FINANCIAL STATEMENTS 1. Accounting Policies The financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSAS) and IDA/Donor guidelines. The principal accounting policies adopted remain unchanged from the previous reporting period and are set out below. a) Basis of preparation The financial statements have been prepared under historical cost convention as modified to include valuation of donations received in kind, long term investments, and equipments as described here below. b) Revenue - Grants Unrestricted grants are accounted for in the period when confirmation of the commitment to pay is received from Donors or GOK. Grants received for specific purposes are treated as deferred income and only credited to the income and expenditure statement when the activities for which they are provided for have been undertaken. Grants received for specific asset purchases are treated as deferred income for asset acquisition and only credited to the income and expenditure statement when activities for which they were provided for have been undertaken. c) Project Income Project income represents income from project carried out by KCAA and is accounted for on accrual basis. d) Donation in Kind Donations in kind are recognized on a receipt basis and recorded at their fair value. e) Interest Income Interest income is recognized on accrual basis. f) Fixed Assets Fixed Assets acquired under this project are shown in the books at cost price. 15 KENYA CIVIL AVIATION AUTHORITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 2. Asset Purchases The Project made payments for the following Works & Equipment during the year ended 30 June 2015 During the year 2014-2015 the assets purchased were as below: MOTOR VEHICLES Ksh TOYOTA KENYA LTD TOYOTA LANDCRUIZER HZJ79R- 6,158,843 TJMRS OMO MOTORS LTD FORD RANGER XLT NO MTD-914- 5,243,000 045-11 TOTAL 11,401,843 PLANT & EQUIPMENT INTERTECH BATINORM EXPLOSIVE DETECTION TRACE 18,189,306 EQUIPMENT ACHELtS KENYA LTD X-RAY BAGGAGE INSPECTION 10,369,674 UNIT FLIGHT PROCEDURE DESIGN CGXAEROINSYS OO23,153,686 SUPPLY OF VHF, VOICE SELEX ELSAG S.P.A RECORDERS & VOICE 131,364,528 COMMUNICATION SYSTEMS SUPPLY & DELIVERY OF THALES ELECTRONIC SYSTEMS NAVAIDS SYSTEMS -ILS/DME & 247,823,267 GmbH DVORIDME SUPPLY, INSTAL & COMMISSION 80,001,829 THALES AIR SYSTEMS S.A AN AMHS TOTAL 510,902,290 COMPUTER & COMPUTER SOFTWARE SYMPHONY SERVERS & SERVER RACKS 8,124,459 SYSTEM INFORMATION & EMAIL SOLUTION & COL SUIT 7,769,632 TECHNOLOGY MFI CONSULTING LTD PABX AT EASA 9,845,548 25,739,639 Total Fixed Assets 548,043,772 WORK IN PROGRESS 2014-2015 LANDMARK HOLDINGS LTD CONSTRUCTION OF KCAA HQ 634,266,020 MMI CONSTRUCTION SUPERVISION 32049000 OF KCAA HQ SUB-TOTAL 666,315,020 CoreTEC System & Solutions HUMAN RESOURCE NOT 8,415,200 SOLUTION XRX TECHNOLOGIES DOCUMENT MGT SYSTEM( 9,100,871 CALS & SCANNERS) FROTCOM LTD CAR TRACK FLEET MGT SOLN 3,134,088 686,965,179 16 KENYA CIVIL AVIATION AUTHORITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 3. Cash At Bank The IDA funds held by KCAA as per the cashbook as at 30th June 2015 is Ksh 57,565,861 4. IDA Loan received to date is Kshs 1,326,500,115. This is made up as follows: 2015 2014 Ksh Ksh Balance B/F 659,430,945 221,216,899 Direct payments 557,069,170 371,335,760 Receipts Thro' MOT 110,000,000 66,878,286 Total 1,326,500,115 659,430,945 The counterpart contribution by the Authority was Ksh 55,442,880 for the year 2013-2014. 5. Accounts Payable represent amount owed as at 30th June 2015 but for which the services had been rendered to the project as follows:- 2015 Creditors Ksh CAR TRACK FLEET MGT Frotcom K Ltd SOLN 1,392,928 XRX Technologies CALS & SCANNERS 650,404 HUMAN RESOURCE MGT CoreTec Systems & Solutions SOLUTION 5,049,120 MFI Consulting Ltd EASA PABX 100,154 System & Information Technology E - MAIL SOLUTION 79,037 X-Ray Baggage Screener Achelis Kenya Ltd Kit 44 African Touch Safaris Airticket 83,584 Capt Joe Mutungi Flight Safety Consultancy 123,840 Total 7,479,111 6. Interest Income The interest income is on the current account balances as held at the National Bank during the year. The total for the year was Ksh 381,037.20. 17 KENYA CIVIL AVIATION AUTHORITY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 7. Expenditure during the financial year in each category were as follows: a) Training: various officers were trained under this category. The total expenditure incurred during the year amounted to Ksh 2,428,595 b) Consultancy: Aviation safety & KCAA HQ design. Individual flight safety consultants and KCAA HQ design consultancy services during the year. This amounted to Ksh 29,254,510 c) Project operating costs- this is the Authority's contribution to the project recurrent activities as per the contract. Ksh 1,413,349 was incurred during the year. 8. Bank charges for the year 2014/2015 is Ksh 10,380. 18