r . .. • • 5 ~!'>\..AUDJ)'~ ,c.:. . ~ :{ . Q THE UNITED REPUBLIC OF TANZANIA ~ i!f1 ~~ . • NATIONAL AUDIT OFFICE • REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENT OF THE PRIVATE SECTOR COMPETITIVENESS PROJECT (PSCP) IDA CREDIT NO.T5326 TA FOR THE YEAR ENDED • 30TH JUNE, 2015 • • * (, ,, -~--~~ ~- 1 3 JAN 20!5 --~ The Controller and Auditor Genera[, O~;z··----------~z7?" ' "y• ) . / ·.(?, 8 National Audit Office, S-Sa~ Samora Avenue/Ohio Street, P.O. Box 9080, • Tel: 255 (022) 2115157/8, Fax: 255 (022) 2117527 E-mail: ocag®nao.go. tz Website: www. nao. go. tz Dares Salaam. December, 2015 AR/PSCP/2014/2015 • • • TABLE OF CONTENTS • Office of th e Controller and Aud itor General. ... . ... ..... . ......... . .... .. ..... ........... iii Vision ........... .............. ....... ..... .. .................... ......... ......... . ............ . iii Mission ..... .. . ..... ..... ..... .... .......... . ......... ... ....... ..... . ...... ... . ........ .. .... .... iii • Core Values .... .... .. ... ... . . .......... .... . .. .. ........ .. . . . . .. .. . ... .. .. .. .. ... . ...... . .... ... iii Definition of Terms and Abbreviations ........ ... .. .. .... .. .. ............. ... . . ....... . ..... . iv 1. 0 BACKGROUN D INFORMATION ........... . ... . ... .............. ... . .. .. .... ....... . .... 1 • 1.1 Introduction . ........ ....... ...... ... . .... ... ......... ........ . .. .. .. .. . .... . ............. 1 1.2 Brief history of the Project .......... .... .. .... . ..... .. . ........ .. ........... . .. .. . . ... 1 1.3 Project objectives ..... .. .... .. .. . .. .. .. . .. .. ................. . .... ..... . . . ... . .......... 1 • ·1.4 F1nanc1ng of the Project .. .. .. .. . .. .. .. . . ........ . . ........... .... ....... ........ . .... . . 1 1.5 Audit Mandate . .......... . ..... . .......... ... . ... ... . ............ .. . .. .. .... . .. ....... .... 2 1.6 Audit Obj ectives .... . ........... . ... ..... ....... ... ... . ... .... . .... .... ...... . . . .... ..... 2 • 1. 7 1.8 Scope of Aud it . .. .. . ...... ...... .. . .. . ............. ............... ......... .. . . .. .. .. .... 3 Audit Methodology ....................... .. . .... . .............. .. . ................ .. .. ... 3 2.0 AUDIT REPORT AND FINANCIAL STATEiv\ENTS ..................................... 4 • • • • • Office of the Con troller and Auditor Genera l , The National Audit Office , • United Republic of Tanzania (Established under Article 143 of the Constitution of the URT) The statutory duties an d responsibilities of the Controller and Auditor Gen eral are given under Article 143 of the Constitution of the URT of 1977 (revi sed 2005) together with Sects 10 (1) of the Public Audit Act No. 11 of 2008 . • Vision To be a centre of excel lence in public sector auditing. Mission To provide effic ient audit servic es in order to enhance accountability and value for money • in the collection and use of public resources . Core Values In providing qua lity services , NAO is guided by the following Core Values: • Objectivity: We are an imparti al organ izati on , offerin g services to our cli ents in an objective and unbiased man ner; • Excellence: We are pro fessionals providing high quality audit services based on best • prac tices; • Integrity: We observe and maintai n hi ghest standards of ethical behavior and t he rule of law; • People focus: We focus on stakeholders' needs by building a culture of good customer care an d having a competent and motivated work force; • Innovation: We are a crea tive orga niza tion that constantly promotes a culture of • developing and accepti ng new ideas from insi de and outside the organization and • Best resource utilisation: We are an organisation that valu es and uses public resources entrusted t o it in an effi cient, economic and effect ive ma nner . We do this by:- • Contributing to better stewardship of public funds by ensuring that our clients are • accountable for the resources entrusted to them; • Helping to improve the quality of public services by supporting in novation on t he use of public resources; • Providing techni cal advice to our clients on operational gaps in thei r operating systems ; • Systemat ically involve our cli en ts in the audit process and audit cycles through this adoption of a participatory audit approach; and • • Providing audit staff with adequate working tools and facilities that promote their independence. © This audit report is intended to be used by Government and Development Partners of the Private Sector Competitive ness Proj ect IDA Credit No 4136 TA. However, upon receipt of the report by the Perm anent Secretary, and once adopted, the r eport be co me s a matter of public recor d and its distribut ion may not be limited . • I ll Offi ce of th e Control ler an d Auditor Gene ral AR/PSCP / 2014/2015 • • Definition of Terms and Abbrevi ati ons Financial Statements comprises of t he following: • (a) Statement of Receipts and Payments (b) Statement of Comparison of Budget and Actual Amo unts (c) Accounting Policies and Notes to the Financial Statements. (i) Abbreviations • QI:"CT LIL.....JI BRS Business Environment Strengthening for Tanzania Better Regulation Section DCA Development Credit Agreement, and in re gard to this report it shall mean Credit No. 4136 TA • GoT IDA Government of Tanzania Inte rnati onal Development Assoc iation PSCP Private Sector Competitiveness Proj ect SDR Special Drawing Rights of the World Bank • URT USD United Republic of Tanzania United States Dollar • • • • Office of the Controlle r and Auditor General IV AR /PSCP/ 2014/20 15 • ' 1.0 BACKGROU ND INFORMATION 1. 1 Introduction • I have audited the Financial St atements of the Private Sector Competitiveness Project Add itio na l Financin g (PSCP-AF) (IDA Credit No.5326-Tz) for the year ended 30th June 2015, Audit findings arising from the examination of the accounti ng records, appraisal of the Project activities as well as an evalu ation of the Internal Control System which require management attention an d action are set out in a Management Letter issued separately to the Accounting Of f icer . • 1. 2 Brief history of the Proj ect The Credit agr-eement (No.5326 Tz) for the Private Sector Competitiveness Project Additional financing (PSCP-AF) was signed between the Internat ional Development Association (IDA) and the Government of the United Republic of Tanzania( GOT) on March 17th January 2014 for 15 months period from April • 2014 up to an end of June,2015. The Private Sector Developm ent and Investment Division under the Prim e Minister's Office of the United Republic of Tanzania undertake the Coordination activities of the Project. • 1. 3 Project objectives PSCP-AF objective has mainly been to support strengthening of busi ness environment in Tanzania including land administration reform and im proving access to finance services. • The project also seeks to reduce costs of doing business and increase t he capacity of the local private sector to participate in domestic and international markets and to access appropri at e financi al services . The Project components include (i) Strengthening business environment, (ii) Improving access to finance, • (iii) Capacity building and project management. The project provides an additional credit amount of about US$ 60.2 million for the period ending May 31, 2017. 1 .4 Financing of the Project • During the year 2014/2015 the Private Sector Competitiveness Project additional financi ng (PSCP-AF) had a total of USD 19,966,495 available for implementation of PSCP activities. However, as at 30th June, 2015 there was unspent balance of USD.9, 591 ,617 indicating that the Programme spent USD.10,353 ,052 as follow: • Offi ce of t he Controller and Auditor Genera l AR /PSCP / 2014/2015 • • Details Amou nt (USD) ~ I • I Balan ce as at 1 . 7. 20 14 -- - - - - - - - - - -----, Fund re ceived du ring the yea r : I • World Bank (IDA): BOT Sp ecial Acco unt 17,707,910 • World Bank (I DA): Direc t payment to 19,966 ,495 • benefici aries 1,436 ,284 • Government of Tanza nia Tot al Fund available 822 , 301 - --------+------ 19' 966 ,49 5 Total expendi tu re (10, 353,052) Foreign Exchange loss (21 ,826) I Balance as at 30.06.2015 9 , 591,6 17 • Source: financial statements submit ted 1. 5 Audit Mandate By vi r tue of the prov1 s1ons of Article 143 of the Con stitution of the United Republic of Tanzani a, an d Section 30 (1) of the Public Finance Ac t No 6 of 2001 • (Revi sed 2004) and the Public Audi t Act No.11 of 2008 ; the Controller and Auditor General is t he statuto ry auditor of all Government Revenues and expendi tu res including this Project (PSCP Credit No. 4136 TA) . 1 . 6 Audit Objectives • The basic objective of this audit is to enable the Con-troller and Auditor Genera l to express an independent opinion on the Projec t financial statements as at 30th June , 201 4. Other objectives i nclude : • To determine whether transactions were execu t ed in accorda nce with the e management authorization and were properl y recorded in the books of accou nts. • To review th e term s an d conditions of the Proj ect Development Credit Agreement, regulations an d other related documents to determ ine whether contracted works we re executed i n acco rdance wi th conditions of the co ntract and with i n t he prescribed standards. • • To co nfirm the balance of loan/credit account an d determ ine whether all • disbursements were made in accordance wi th t he loan ag reement. To ensure t hat the proceeds of the credi t were used exclusively to meet eligible expenditu re as stipulated in the Develop ment Cre dit Agreement. • To eva lu ate the in terna l contro l procedure and determine i f they provide management a reason ab le assuranc e on the pro per use of t he credit. • 2 - - - - - - - - - -- - - - - - - - - - - -- - - - -- - - - ---- Office of the Control l er and Auditor Gene ral AR/PSCP / 2014/20 15 • - o ~-~ · ~~~·'!:/~ '1!'~':,._\·.':-;': . ,,;,'r".' :;;t..., i' ..~ _:-.-,y~· · t:~·~:;- -.h.;,',•)·,o;·,,;~ .·.~;~ .r;r-.•:.';~,:;~:-·;i :,';' .":~·· ~--~:::1:' :;.:'t' J..:.':, /.JJ•:•:.~·i ~f .~.-;.;,.'•1: .. ::,;.""""~~·j ' • •· .. ~ '• . ,'·'·· iLl ··- ' : ' . ; ',•, -.-.'i •"oi.. ., : . ·' ·~ ,I ;, ,• . • ~ . ~--·-· ~~-~- - ._ - • • To determi ne whether the man agement has taken corrective actions on all matters ra ised in previous year's audit reports . • • To ensure that good governanre has been enforce d in the day-to-day operations of the Project 1. 7 Scope of Audit The audit was carried out in accorda nce with the Internati onal Standards of • Supreme Audi t Institutions (ISSA! ). The audit included such tests of th e accounting records as deemed necessary under the circumstances. The audit was carried out on a t est check basis, therefore the audit findings are confined to the extent that records , documents, and information requested for the purpose of audit were made available to us. • As an Auditor I am not specifica lly required to search for fraud, therefo re, my audit cannot be relied upon to di sclose all su ch matters. The responsibility for setting up and maintaining an adequate and reliable system of Internal control rests with th e management of the Project. My audit, however, was planned and carri ed out i n such a way that I would have a reasonable expectation of detecting any material misstatement in the financia l statements . • 1.8 Audit Methodology My audit approach include d such test of the accounting records and other procedures i n order to satisfy th e objectives of the audit. My audit procedures included th e fol lowing steps : • Pl ann i ng the audit work to obtain an adequate understanding of the Project e and operations of PSCP and obtai n an assessment of major risk associated with works activities. • Verif ication and examination of receipts , applications/replenishments and payments from the special account in order to obtain reasonable ass urance regardin g the amounts and disclosu res included in the financial statements. • Eva luation an d reviewing the internal control system in place and test • checkin g whether it is in comp liance with the loan agreemen t, Government accounting procedures and their related regu lations . • Reviewin g the terms and conditions of the Development Credit Agreement, regulations , World Bank procurement guidelines and other regulations. • Conduct interviews and discussions with some of the key Project personnel to get their views on the status of the Project • • 3 Offi ce of the Controller and Auditor Gene ral AR/PSCP/2014/2015 • . . . . . ... ·-;·• , ....... ' •., • 2.0 AUDIT REPO RT AND FINANCIAL STATEMENTS • To : Permanent Secretary , Prime Minister's Office, 2 Magogoni street P.O. Box 3021 , 11410 DAR ES SALAAM . • RE: AUDIT REPORT ON THE FINANCIAL STATEMENTS OF THE PRIVATE SECTOR COMPETITIVENESS PROJECT ADDITIONAL FINANCING (PSCP- AF) IDA CREDIT N0.5326-TZ FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2015 • Introduction I have audited the Financial Statements of the Private Sector Competitiveness Project which comprise the Statement of Receipt and Payments f or the year ended 30th June, 2015 and Cas h Flows Statem en ts for th e year th en ended and Summary of Significant Accounting Policies and other Explanatory information as shown in Annexure I of this report . • Management Responsibili ties for the Financial Statement Management of PSCP is responsible for the preparation and fair presentation of these in accordance with International Public Sector Accounting Standards (IPSAS), and for such internal control as man agement determines is necessary to enable the preparation of financial statements that are free from material • misstatement, whether due to fraud or error as per the Statement of Management responsibility on the Financial Statements enclosed in this report as Annexure II. Responsibilities of the Controller and Auditor General My responsibi lity as an Auditor is to express an independent opinion on these • fin ancial stat ements based on my audit. I conducted my audit in accord anc e with Inte rnational Standards of Supreme Audit Institutions (ISSAI ) and such other audit procedures I conside red necess ary in the circumstances. Th ose stand ards require that I comply with ethical requirements and plan and perform the audit to obtain reasona ble ass urance about whether the financial statements are free of material misstateme nt. • An audit involves pe rforming procedures to obtai n audit evidence abo ut the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, includin g the assessment of the risks of material misstatement of the financi al statements, whether due to fra ud or error. In making those risk assessments , I considered t he intern al control • relevant to the PSCP preparation and fair presentation of the financial 4 Offi ce of t he Contro ller and Auditor Genera l AR/PSCP /2 014/2015 • . ., . . ...... _ .. ,,;:_;:."· \·· • statements in order to design au di t procedures that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the • effectiveness of the PSCP internal con trol. An audit also i ncludes evaluating the appropriateness of accou nting polici es used and t he reason ableness of accounting est imates made by man agement , as well as evaluating the overa ll presentation of the financial statem ents. In addition, Sect. 10 (2) of the PAA No. 11 of 2008 req ui res me to satisfy myself • that the accounts of the Programm e have been prepared in accordance wi t h IPSAS cash basis of accounting. Further, Sect 48(3) of the Public Procurement Act No.7 of 2011 and Regu lation 269(1) of the Public Procurement Regulations, 2013 requires me to state in my annual audit report whether or not the audi tee has complied with the • provisions of the Law and its Regul ations. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Unqualified opinion • In my opinion, the Financial Statements present fairly, in all material respec ts, the Financial Position of the Private Sector Competitiveness Project (IDA Credit No. 5326- TZ) as at 30th June ,2015, and of the Receipts and Payments and its Cash Flows for the year then ended in accordance with the International Public Sector Accounting Standards (IPSAS) - Cash Basis of accounting . • Report on Compliance with Procurement Legislation In view of my responsibility on the Procurement Legislation , and taking into consideration the procurement transactions I reviewed as part of my audit, I state that, the PSCP has generally complied with the requirements of the PPA No.7 ~~2~~ 1 _a~d .i:s~-~)ng Regulations of 2013 . • ( ~ ' .,, / (\ \}})\};_~ i;{L~J .A3'Sad_ j Prof/Muss·a~_um;y / GO TROLLER-AND-AUDITOR GENERAL / / • National Audit Office, DAR ES SALAAM December, 2015 • s Offi ce of the Co nt roller an d Au ditor Gen era l A R/ P SCP / 201~ / 2 015 • . •.•.. , ' . ·~· ,.·h ' . . . . . . .·• .: .. • • Copy t o: The Perm anen t Secret ary, Prime lv\inister 's Office, P.O. Box 302 1, DAR ES SALAAM. The Perm anent Secretary and Paym aster General , Mini st ry of Finance , P. O. Box 9111, 1 Madaraka Street, 11468 DAR ES SALAAM . World Bank Represe ntative , • P.O . Box 20 54, DAR ES SALAAM. Project Coordinator , Pri vate Sec t or Competiti veness Proje ct (PSCP ), P. 0 . Box 302 1, • DAR ES SALAAM • • • • 6 - Of f ice of t he Co nt ro ller and Aud i tor General AR/PSCP /20 14/ 2015 • • STATEMENT OF RECEIPTS AN D PAYMENTS FO R THE YEAR E NDED ------------- ---- ------------ 30TH ------------ ------------ ---- - --- --- - - - ------ -------- JU NE 2015 _____ - ----- - - - ---- - --- -------- ---- ---------------TN~t~~-r----- -- - ----- --2oi4ifs _ _______ _ ! ! ! (USD) • ~--Illic-Eirf-s ------------------------------------------------------------------------------------------------------(-------------r----------------- ---------------------------~ i [i~~~i~~i~~:ciR62~:-~9:I:~;;~~i;,~6~~~~-~~~:~~-::~~~~:~~:~:~:~~~::::~~::~::~~~:~:~::~I~::~~:~~~~~~I~~:::~~:~:~::~~:~::!:~~~~~-,~~~~~_] i ! ! 1,43 6,284 ! 1 ___ W2cd_cl_fJ_~~--GP61_QjE~-~-!_Q~Y-~-~-~~--!9__ g_~-~~_f!-~_i~I!~-~-------------------------1--------------L _ __ __ _ _________________ ____________ _ ______ __ j 1 Government ofTanzania j 1 822,30 1 ! • ! ! l ~--f-~t-; i--F~-~ifii~~~-i~-e-ct---------------------------------------------------------------------------------t-----2-------(----------------------19-~966-,-49_5 __ / ;----------------------------------------- ----------------------------------- ------------------------------------------------ r ------------ -r----------------------------------------------: ! i--PAYME- -------------------------- Nfs----------------------------- ---- ---- ------------------------------------r-----------T---------------------------------------------i p=-~~p-~~~-~t--i-:--s-t~~~~-gth~~-;~-ii-~-rB~-~-;~-~-~-~--E~~i~o~~~~-t---------------r---3-------r-----------------6~-67-i-~5--i-5_________ 1 i--c~~-p~-~-~-~t-i--i~r~-~~-;~g-f\~~~;;-to--F-i~~~-~~i-~(s~-~~i~~-~---------------T-----4-------r-------------------i~-60-i-:25_8_ ________ • 1 :------------------------------------------------------------------------------------------------ ------------------------------+---------------}----------------------------------------------1 l--~-<2!!1_~-<2~~-~!}~--~!_.. . . . . [. .~.. . i ACCOUNTING OFFICER DATE • • • 3 • - - - - - -- - - - -- - - - - - ------ • PIDV ATE SECTOR COMPETITIVENESS PROJECT STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE 2015 • I 1 30.06.2015 USD Assets Notes Non-Current Assets ..... ...... ........ . ........ • Property, Plant and Equipment Current Assets -· .. ··-··-· ···-··. --······-·-········-··----·---···--·······-······ ... ··········--····-·-······-··--······- 7 18,683 0 Bank Balances 8 9,591 ,617 Other Receivables & Staff Debtors 9 367,160 Total Assets 9,977,460 • _ g~PE~S~ [lted by ... . ..... Capital and Reserves --- ............... --··············---······························ ------··--··············· +- Accounts Payables 0 ' - - - - - - · · · · · · ········- ------- -····· • Total Funds Balance (Total Capital and Liabilities) 10 9,977,460 Note 7-10 form integral part of these financial statements • " p() /:----~· -...:..---- - ~J( ACCOUNTING O FFICER DATE • • • 4 • • PRIVATE SECTOR COMPETITIVENESS PROJECT PSCP PROJECT • CASH FLOW STATEMENT FOR THE YEAR ENDED ON 30TH JUNE 2015 I -----·----- ··----·············-·············- -· -----·-······ ··············- -········--························--·········-··········· ... -· ... --·····- -·- .... -················--····-····· ····-······· .... ·······-··--·-· . ·······- 2014/15 USD • Ooeratino Activities - ........ .....______0...•..............____ -- ·- ............. ·····-···--···--·-················-·····----·-·- ····-······ F'_'::l_t:I.~~- generated from: ........................................... j·· ---·· ········--····-----··· ···--·····-···-·····--·-··-·· World Bank IDA and Government . .. . . !2_,~~~-" ~~?... 19,966,495 Cash paid to Employees & Service Providers ( 10,327,660) e Adjustments for effect of foreign exchange gainl(loss) (21 ,826) ·- -····---·····-·-··--······-·······-··-····-··---- --···---------··- ····•· ---- ........ ·····----------- Net Cash from operating activities 9,617,009 Investing Activities • Acquisition of ICT Equipment -· -- ···--· ----------------·-· ···-·-··--···················----------·---···-···-· --- .................,,... ________ --··········-- - -- ...................... .. ... ( 16,970) Acquisition of Furniture and Fittings (8,422) ~-· N;t~:h·~~~-~d- i_n inves-ti~"fi a~tivi·~- ie~-- -· ·- -·- ·-· · · · · · (25,392) • IN;t ~ove~-ent in cash ~~d ca~h ~;;;;;~;~~~Is 9,591,617 Cash & Cash Equivalents at the beginnino of the yea r 0 - .... -······-- - ... - . ·············--··········- --·-·············· ····-···-········ .. b ...... ·······················-····-· • 0 .C:::()1 t::1 '7 _,,..J./ ..a._,v J. 1 1 • ACCOUNTING OFFICER DATE • 5 . • .. • PRIVATE SECTOR COMPETITIVENESS PROJECT e BUDGETARY COl TROL STATEMENT FOR THE YEAR ENDED ON 30.06.2015 Budget \ Actual Variance Budget Utiiizatio Budget Line (USD) (USD) nin% 17,880,232 27% 24,551,747 6,671,515 component 1: Strengthening • of Business Environment (BEST) Improving 8,034,237 6,432,979 20% component 2: 1,601 ,258 Access to Financial Services Proj ect 2,490,003 2,080,279 409,724 84% I component 3: Management 24,722,935 30% • Grand Total 35,075,987 10,353,052 • • • • 6 • ------ ------- - -- - -~ - - - - ---------------- • NOTES TO T HE FINANCIAL STATEME NTS FOR THE YEAR ENDED ON 30T11 JU~E 2015 NOTE 1: PRI NCIPAL ACCOUNTING POLICIES • (i) Accounting Standards The fin ancial statements have been prepared in accordance with International Public Sector Accounting Standards. The principal accounting policies adopted are set out below . • (i i) Basis of Ac ... ounting These fi nancial statements of Private Sector Competitiveness Project (PSCP) includes all sub- Programme's covered in the Development Credit Agreement #5326TA between Government of Tanzania and International Development Association (IDA) The financial statements have been prepared and presented on a cash modified basis of • accounting, pursuant to Publ ic Finance Act No . 6 of 2001 (revised 2004) and its Regul ati on, Supplement no . 25 of July 200 l and additional details have been included to promote understandi ng and compliance with International Publ ic Sector Accounting. (iii) Expenditure Recognition • Expenditures for the supply of goods and services are generally recognized at the time of payment. However, invoices not paid at the end of the year for services offered and goods supplied are accrued and included in the list of creditors. (iv) Foreign Currency Translation All amounts are in US D. All transactio ns denominated in local and other foreign • currencies are translated into United States Dollars at the approximate exchange rate ruling at the date of settlement/rransaction basing on the Bank of Tanzania US$ exchange rates. The resulti ng d ifferences from co nversion and translation are disclosed in the fi nancial statement of receipts and payments as reconciling item . (v) Property, Plant and Equipment • Property, Plant and equipment are stated at cost less depreciation and impairments . Depreciation is provided so as to allocate the cost of assets on a reducing balance method over the expected useful lives ofthe assers concern. During the year there was no disposal of asset. However, fixed assets regi ster acquired through vote 37 are attached in Note II. Assets for component I and 2 are held at • MDA's respective Ministry . Property, Plant and equipment are stated at cost less depreciation and impairment s. Depreciation is provided so as to allocate the cost of assets on a reducing balance method over the expected useful lives of the assets concern. Assets acquired during the • year the full year amount of depreciation is comp uted while disposa l of assets made 7 • • during the ) ear no depreciation is ~ompute d. The princip..1l rates used fo r this purpose are: 0 /o Buildings 15 • Motor Vehicles Office Eq ui pment 20 12. 5 Software 40 Furniture & Fittings 12.5 Computer Eq uipment 33.33 • Gains and Losses on disposal of assets are determined and included in the the year resul ts for (vii) PSCP/IDA Funds available to Components (Loan Proceeds) Loan proceeds held in the Special Account at Bank of Tanzania (BoT) belongs to all PSCP Components. When funds are credited in the Special Account at BOT an entry is • made in the books of account to recognize funds available to PSCP Components. Also funds transfe rred from the BOT Special Account to PSCP Coordination Unit are recogn ized in the books of account when they are credited into PSCP Operational Bank accou nt held at National M icrofinance Bank • (v) Reporting Currency As per Development Credit Agreement the reporting currency is USD. These financial statements are therefore presented on the basis of USD currency . • NOTE2: AMOUNT DISBURSED TO THE PROJECT- USD 19,966,495 Cumulative receipts from Project commencement 201 4 to end of June 20 15 was US$ • 19,966,495 as shown below: . h D es1gnate C)R l ece1pts thr ougl dA ccount at BOT 2014 /15 Receipts USD I • World Bank (IDA): BOT Special Account 5,000,000 World Bank (IDA): BOT Special Account I 5,326,745 World Bank (IDA): BOT Special Account I i 7,381 ' 165 SUB-TOTAL I 17,707,910 • 8 • • (ii) Recei pts Through Payments o ·rect To The Bencfic ian cs - y ! 'I I 201 4 /15 Receipts USD I • Payment made direc t to Invent ions Technologies V 7 , h()() I vvV Payment made direct to Hexatech Company Ltd 140,636 Payment made direct to UNOPS 1,136,002 • I Payment made direct to SUB-TOTAL PCU Staff Salaries I 92,046 1,436,284 Ill ecetpts t hrougih Govemment (flor PDB) 2014 /15 • Rece ipts PDB Fund received from BOT to NMB MPEE/POPP 20 11000042 I USD 45,750 \ PDB Fund received from BOT to NMB MPEE/POPP 20 11 000042 15, 198 1 PDB Fund received from BOT to NMB MPEE/POPP 2011000042 • PDB Fund received from BOT to NMB MPEE/POPP 2011000042 719,053 42,299 SUB-TOTAL 822,300 GRAND TOTAL 19,966,495 • NOTE 3: COMPONENT 1: Strengthening of Business Environment (i) MLHHSD I 2014/15 I Activity Description USD L • / Infrastructurallnterventions I I 874,810 , Land Use Planning in Urban areas and Regu larization of tenure rights I 34,903 Regulatory s implification of Land Administratio n Services ! I 115 ,616 • Strengthening o f Legal and Regulatory Framework 13 ,880 1,039,209 • 9 • • (ii) MIT 2014/15 Activity Description USD • To conduct workshop to introduce BRN to MIT, MDAs, Ministries and other I implementers I 129,420 I 129,420 (iii) PDB • 2014/1 5 USD 4,844,370 658 ,516 5,502,886 • NOTE 4: COMPONENT 2: lm 2014/15 Activity Description USD • Bankin Sector Deposit Insurance Board (DIB) 491,821 100,083 Developing Financial market 625,193 Insurance 74, 197 • Improving Legal and Regulatory Infrastructure to Support Access to Financial Services 42,843 Long Term Development Financial Issues 123,152 • Proj ect Management Costs 143,969 1 NOTE 5: • Information Education and Communication (IEC) Public and Private Partnership 57,743 17,256 To coordinate performance of business environment roadmap taskforce under PSCP 696,529 To Facilitate the PSCP Programme Managem ent, Monitoring and Evaluation Enhancement 1,308,751 • 2,080,279 10 • - - - -- - - - - - - - ------------------- • NOTE 6: Foreign Exchange Gain/ (L oss) fo r the yea r- USD 21,826 There is a net Loss ofUSD 21, 826 resulting from translation oftransactions which are denominated in local currency into USD repo rting currency . • NOTE 7: Property, Plant and Equipment USD 18,683 (i) Cost of computers and its accessories 16,970 Depreciation (5,656) • Carrying Amount 11,314 (ii) Cost of Furniture and Fittings 8,422 Depreciation (1,053) Carrying Amou nt 7,369 • Total Carrying Amount (Net book Value) 18,683 NOTE 8: PSCP Bank Balances USD 9,591,617 Description 2014/15 (USD) • PSCP/IDA Special Account Balance at Bank of Tanzania PSCP Coordination -NMB USD Account POPP/PSDS Project Account Number 201730001 2 8,818 ,082 0 PSCP Coordination -NMB TZS Account MPEE/PSDS Project A/C 0 2011000042 • PSCP Coordination -NMB TZS Account Private Sector lnvstmnt Division I A/C 201100 10869 601 ' 113 PSCP Coordination -NMB USD Acco unt Private Sector Invstmnt Division 172,422 AIC 2011 0010801 9,591,617 • Th e exchange rate used to translate lo cal bank account balances is JUSD =TZS 2010.30 NOTE 9: OTHER RECEIVABLES & STAFF DEBTORS 30.06.15 ! Description USD l Receivable-MDA • I Staff Debtor (PCU&PMO) 323,389 43,771 I Total Other Receivables & Staff Debtors 367,160 • 11 • • NOTE 10: Unexpended Fund Balance- lJSD 9,977,460 • This is the net difference between Assets covered under Notes 7 through 8 and Accc\unts Payable covered under Note 9 above. In other words, this represents a net working capital for the PSCP Project as at 30 1h June 20 15. NOTEll: Rate of Exchange for Balance Sheet Items • All Assets and liabi lities in the Balance Sheet, denominated in local currency have be~ n converted at the exchange rate of 1 US D =2,0 10.3 0 TZS, a rate rul ing at the report ing balance sheet date. The resulting differences fro m conversion and translation have been disclosed in the financial statement of the statement of receipts and payments . • • • • • • 12 • I· • • • • • • • • • • NOTE 12: ASSETS AQUIRED THROUGH VOTE 37 (FIXED ASSETS INVENTORY) AS AT 30T11 JUNE 2015 ASSET CATEGORY: ICT EQUIPMENT AND COMPUTER SOFTWARE (PROJECT COORDINATION UNIT) SIN JTEM SUPPLIER PAYMENT ACQUIS ACQ UISITION COSTS ASSET LOCATION f - -· -- CODE NO. DESCRIPTION REF NO . JTION US$ TZS /CUSTODI DATE AN .. ·- · -· 1. DELL DESKTOP JH TECHNOLOGIES CHEQUE 05-11-14 1,061 1'785 ,000.00 PMO/PSCP/ PCU OPTIPLEX 7010 AN D SUPPLIES NO . 711004 CE/C[U/00 1 -- LTD -- ·- ·- 2. APC UPS JH TECHNOLOGIES CHEQUE 05-11-14 298 501 ,500.00 PMO/PSCP/ PC U AN D SUPPLJES NO. 711004 CE/UPS/001 LTD ") .) . HP PRJNTER JH TECHNOLOG IES CHEQUE 05-11-14 354 595,000.00 PMO/PSCP/ PCU Lased et Pro 400 AND SUPPLJES NO. 711004 OE/PRT/00 1 M 401dn LTD -·---· 4. l-IP SERVER JH TECHNOLOGIES CHQNO. 15 -04-15 15,257 27,390,315.00 PMO/PSCP/ PCU WITH AND SUPPLIES 000337 OE/SVR/001 ACCESSORIES LTD 16,970 30,271,815 13 • lTEM • • PAYME T • F • ACQUISITI01 • • • • • LOC ATl ( )' S/ SUPPLIER ACQU ISlTIO AS SET CODE DESCRIPT10N 0. DATE CUSTO I) At'\ I COSTS I I US$ TZS Ma1ika PMO/PSCP/OE/ AC/00 1 Ai r condition E lectronic 1 CHQ 0. 710937 02-09-2014 2,7 16 4,481,250 PC U Caset Type Sales & I repa ir ' - - - -- - - - ---- -- - - - ------- Malika PMO/PSCP/OE/ AC/002 PCU Air condition Electronic 3 CHQNO. 7 10951 18-09-2014 2,973 4,915 ,250 Caset Type Sales & repa ir - - - ·-·--- -- Malika PCU .., Air condition Electronic CHQ NO . 000194 11-02-2015 1,3 74 2,390,625 ..) PMO/PSCP /0 E/ AC/003 Caset Type Sales & 0002 14 19-02-20 15 1,359 2,390,625 repair I SUB-TOTAL 8,422 14,177,750 I GRANO TOTAL 25392 44,449,565 ___ _ _ L _____ 14