EAST AFRICAN COMMUNITY AUDIT COMMISSION JUMUIYA YAAFRIKA MASHARIKI AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30TH JUNE 2017 ARUSHA, TANZANIA DECEMBER 2017 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 LIST OF ABBREVIATIONS Throughout this financial report unless otherwise stated, the abbreviations in the first column have the meanings stated opposite them in the second column. These descriptions and explanations, however, serve to clarify this report and are not intended to be authoritative CM - Common Market DSG - Deputy Secretary General EAC - East African Community FSDRP - Financial Sector Development & Regionalization Project KSH - Kenya Shilling LPO - Local Purchase Order RWF - Rwanda Franc SG - Secretary General TMEA - Trade Mark East Africa TSH - Tanzania Shilling USH - Uganda Shilling VAT - Value Added Tax EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 2 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 TABLE OF CONTENTS 1. STATEMENT OF PURPOSE .... .. .. .... .......... ......... ......... ..... .... .. .. ... ... ... .. .... .. ... ..... ... .4 2. CORPORATE GOVERNANCE STATEMENT .. .... .......... .. ............ .. .. .......... ...... ...... 5 3. RISK MANAGEMENT AND INTERNAL CONTROL .. .. .. ...... .. ...................... .... ...... .5 4. STATEMENT OF THE SECRETARY GENERAL'S RESPONSIBILITIES ...... .... .... ? 5. REPORT OF THE AUDIT COMMISSION .. .. ...................... .... ................ .... ............ .9 6. FINANCIAL STATEMENTS FOR FSDRP FOR THE YEAR ENDED 30 JUNE 201715 7. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION .... ............ .. .. 19 8. KEY JUDGEMENTS AND SOURCES OF ESTIMATION ........ ....... .. .. .................. 20 9. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............ ............ ........ .. .. 20 10. ARTHIMETICAL NOTES TO THE ACCOUNTS ........ .. .... ...... ..... .......... .. .. ........ .... 25 East African Community Audit Commission @201 7 Page 3 of27 = AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGION ALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 1. STATEMENT OF PURPOSE 1.1. Introduction The financial Sector Development and Regionalization Project is an East African Community regional project supported by the World Bank. The purpose of the project is to support the development of the financial sector integration through the establishment of a single market in financial services amo ng EAC Partner States. The first phase of the project became effective on 20 1h June 2011 with a total Grant of $16 million. In September 20 16, the World Bank provided additional financing of$ 10.5 million to support the project to September 2019. The original grant was structured into six components. These are: a) Financial inclusion and strengthening market participants b) Harmonization of financial laws and regulations c) Mutual recognition of supervisory agencies d) Integration of financial market infrastructure e) Development of the regional bond market f) Capacity building Project goal The project goal is to support the broadening and deepening of the financial sector through the establishment of a single market in financial services among EAC Partner States with a view to making a wide range of financial products and services available to all at competitive prices Project Objectives The development Objective is to establish the foundation for financial sector integration among EAC Partner States. The higher level objective of the program is to support the broadening and deepening of the financial sector through the establishment of a single market in financial services among EAC Partner States, with a view of making a wide range of financial products and services available to all at competitive prices 1.2. Human Resource As at 30th June 2017, the FSDRP had the following human resource capacity:- ; AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGION ALIZA TION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 EAC-FSDRP 30/6/2017 30/6/2016 Project Staff 11 14 Subtotal 11 14 1.3. The Budget The Budget of the EAC - Financial Sector Development and Regionalization Project for the financial year 2016/2017 was USD 3,663,975 1.4. Achievements during the year The following are the Project's achievements during 2016/2017: • Resource mobilization strategy and communication policy for Light University and CBE developed and adopted; • Four (4) Council Directives were developed and approved by the SCFEA • The EAC Microfinance implantation strategy and adopted by MAC • Four( 4) study reports(promotion of interoperability of card switches, financial education, banking certification program and microfinance policy and implementation strategy) were presented to MAC for consideration and adoption • Negotiated and received additional financing of$ I 0.5 million for the next three years 2. CORPORATE GOVERNANCE STATEMENT The implementation of the project activities is vested with the Steering and Executi ve Committees. The FSDRP Steering Committee is responsible for providing Policy and strategic oversight to the project, while the Executive Committee is responsible for overseeing project operations. Meetings of the two committees will continue to regularly consider budgetary strategy, assess project outcomes, monitor risks, make policy and resourcing decisions, and review requests for changes in project scope. Internal Auditor reports to the Audit and Risk Committee on, among other things, the status of compliance risk management in EAC and significant areas of non-compliance. The impact of new and proposed legislation and regulations (IF ANY) is assessed by management and material regulatory issues and legislative developments are escalated to the Audit and Risk Committee. 3. RISK MANAGEMENT AND INTERNAL CONTROL 3.1. Overview of EA C's risk management framework EAST AFRICAN COMMUNITY-AUDIT COMMISSION Page 5 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 The East African Community (EAC) is responsible for the risk management and internal control system of the project. EAC is committed to a process of risk management that is aligned to the principles of sound corporate governance recognizing that the management of risk is an important strategy for the achievement of the EAC Mission and supporting objectives. The project management is task to ensure that the adequate internal financial and operational control systems are developed and maintained on an ongoing basis in order to provide reasonable assurance regarding: • The effectiveness and efficiency of operations • The safeguarding of the project assets • Compliance with signed grant agreement and other applicable laws and regulations • Reliability of accounting records • Responsible behavior towards all stakeho lders 3.2. Approach to Risk Management A description of EAC's approach to risk management covering a summary of the overall methodology and the management of individual types of risks is included in the EAC Risk Management Framework, Policy and Strategy (2011) and expounded as below. The EAC's risk management fran1ework is based on a well-establ ished governance process, with different lines of defense and relies both on individual responsibil ity and collective oversight, supported by a comprehensive reporting and escalation process. The EAC's internal audit function independently audits the adequacy and effectiveness of the EAC ' s risk management framework. The head oflnternal audit reports and provides independent assurance on the same to the audit and Risk committee and has unrestricted access to the Secretary General and the chairman of the Audit and Risk Committee. 3.3. Operational risk Operational risk is the potential for loss resulting from the inadequacy of, or a failure in internal processes, people, systems or external events. The Project recognizes the significance of operational risk, and the fact that it is inherent in all business units. 3.4. Occupational health and safety The health and safety of our employees, our partners and other stakeholders continues to be a priority. The Project seeks to effectively identify, reduce or control accidents or injuries to employees, contractors and clients. The Project continues to focus on ensuring compliance with EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 6 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 current legal and regulatory framework and ensuring that occupational health and safety procedures are closely linked to the operational needs of the business. 3.5. Reputational risk Safeguarding the Project's reputation is of paramount importance to its continued operations and is the responsibi lity of every member of staff. Reputational risks can arise from social, ethical or environmental issues, or as a consequence of operational risk events. The Community's strong reputation is dependent upon the way in which it conducts its business, but it can also be affected by the way in which its clients, to whom it provides services, conduct themselves. Effective management of all operating activities is required to establish a strong internal control framework to minimize the risk of operational and financial failure and to ensure that a full assessment of reputational implications is made before strategic decisions are taken. 4. STATEMENT OF THE SECRET ARY GENERAL'S RESPONSIBILITIES The Treaty for the Estab lishment of the East African Community and the Financial Rules and Regulations require the Secretary General to prepare financial statements for each financ ial year which give a true and fair view of the state of affairs of the Community. These annual financial statements have been prepared in accordance with International Public Sector Accounting Standards, under the Accrual Basis of Accounting. The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgment and estimates. They have been presented to ensure comparability with the EAC annual financial statements of previous periods and with financial statements of other entities. The statements have been prepared as general-purpose financial statements intended to provide information about the financial position, financial perforn1ance, and cash flows of the EAC that is useful to a wide range of users. The Secretary General is responsible for establishing and maintammg a system of effective internal control designed to provide reasonable assurance that the transactions recorded in the books of accounts and reported in these annual financial statements are within the statutory authority and reflect with reasonable accuracy the receipt and use of public financial resources by the EAC. The Secretary General is responsible for and acknowledge the ultimately responsibility for the system of internal financial control established by the EAC and place considerable importance on maintaining a strong control environment. To enable the Secretary General to meet these EAST AFRICAN COM!v/UNITY-AUDIT COMMISSION Page 7 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 responsibilities, the Secretary General sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. These standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures, and adequate segregation of duties to ensure an acceptable level of risk. To ensure that theses controls are monitored throughout the EAC and all employees are required to maintain the highest ethical standards in ensuring the EAC business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the EAC is on identifying, assessing, managing and monitoring all known forms of risk across the Community. While operating risks can be fully eliminated , the Community endeavors to minimize it by ensuring that appropriate infrastructure, controls, systems and ethical behavior are applied and managed within predetermined procedures and constraints. The Secretary General is of the opinion, based on the information and explanations given by management that the system of internal control provides reasonable assurance that financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit. To the best of my knowledge, the system of internal control has operated adequately throughout the reporting period. The financial statements set out on the pages below which have been prepared on a Going Concern Basis, were approved by the Secretary General on the date indicated below. ecretary General accepts responsibility for the integrity of the financial statements and all form erein for the period under review. -----~ ------------ Hon:-~ Ambassador Deputy Secretary General SECRETARY GENERAL (Finance and Administration EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 8 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 5. REPORT OF THE AUDIT COMMISSION To The Honorable Chairperson of the Council of Ministers East African Community Headquarters, 1EAC Close / Afrika Mashariki Road, P.O Box 1096 Arusha, United Republic of Tanzania Opinion We have audited the financial statements of the Financial Sector Development and Regionalization Project (FSDRP) set out on pages 14 to 26, which comprise the statement of financial position as at 30 June 20 17, and the statement of financial performance, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. In our opinion, the financial statements present fairly, in all material respects the financial position of the Financial Sector Development and Regionalization Project (FSDRP) as at 30 June 2017, and of its financial performance and its consolidated and cash flows for the year then ended, in accordance with International Public Sector Accounting Standards and comply with the Financing Agreement No.D1410-3A Financing Agreement (Additional Financing for East African Community Financial Sector Development and Regionalization Project I dated November 11,2016. Basis for Opinion The audit was conducted in accordance with International Standards of Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the ethical requirements of International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants and Article 134(4) of the Treaty for Establishment of the East African Community, 1999 and we have fulfilled our ethical responsibilities in accordance with these requirements and the ISAs. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements of the current year. These matters were addressed in the context of the audit of the financial statements as a whole, and in forming our opinion thereon, AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 and we do not provide a separate opinion on these matters. For each matter below, a description of how the audit addressed the matter is provided in that context. We have fulfilled the responsibilities described in the Auditor 's Responsibilities for the Audit of the Financial Statements section of the report, including in relation to these matters. Accordingly, the audit included the performance of procedures designed to respond to the assessment of the risks of material misstatement of the financial statements. The results of the audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. No. Key Audit Matter How the audit addressed the key audit matter 1. Inappropriate revenue recognition - Receipts from development partners The Financial Sector Development and The audit approach included performing Regionalization Project (FSDRP) has substantive procedures included: received a grant of SDR • Reviewed the funding agreement 7,600,000(USDlO, 500,000) whose use is spread over 3years. Notes 10.6 to the • Testing grant funding to assess if revenue financial statements reflect receipts had been recognized in accordance with the from the International Development agreement and conditions set and IPSAS 23. Association of USD 121,697 received during the current year. • Matched the expenditure incurred to revenue We considered this to be a key audit matter since there is a risk that the revenue is inappropriately reported to achieve desired budgetary performance. We assessed that the opportunity to misrepresent revenue creates a heightened risk where the receipts from development partners are recorded in the improper period by not observing the matching principle. 2. Underutilization of donor funding Each project has a definite grant period The following audit procedures were performed within which the agreed activities must in response to this matter: be completed. • Reviewed the financing agreement and annual work plans The financing agreement dated ovember 11, 2016 for the Financial • Reviewed the progress reports and Sector Development and compared with the budgets and work plans Regionalization Project (FSDRP) indicates the project will be completed EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 10 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGION ALIZA TION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 No. Key Audit Matter How the audit addressed the key audit matter by 30 September 2019. There is a risk that the project activities will not have been completed on time and donor money will be refunded back to the donor. There is also a risk that the overall Community will not be achieved due to non-implementation of the project activities Other Matter Paragraph 1. Refund of Ineligible Expenditure Section 7.5.4 (in third paragraph) of FSDRP Operational Manual 2014 states that funds budgeted shall not be used for purposes other than those provided for in the budget without approval of the International Development Assistance (IDA). Section 7.06 (a. 1) of IDA General Conditions for credits and grant, 2006 states that a prompt refund will be made for a withdrawn amount used to make a payment for an expenditure that is not an eligible expenditure. Our review revealed that an amount paid to three consultants of USD 63 ,000 were not eligible as there was no activities planned for these positions under the Additional Financing Agreement hence was to be refunded to the donor. However, management has not refunded the amount to date. The project risks penalties including stoppage of disbursements due to the delayed refund. 2. Delayed and incomplete Contract on Capital Markets Infrastructure Project Section 4.1 of FSDRP of Operational Manual 2014 provides that the purpose of contract management is to ensure service providers fulfill their contractual obligations, of delivering quality service in a timely manner. EAC Secretariat signed a contract on 3rd November 2014 with Infotech Private Ltd for the supply and installation of smart Order Router, Central Depository System Interface, and Messaging Platform for Securities worth USD2,395,180 (USD 1,944,123 for contract execution and USD 451 ,057 for 3 years ' recurrent expenses). The completion and acceptance of the system was supposed to take place on 29th April 2015 but was extended to 29th February 2016. The implementation of the project stopped after the delivery of some hardware and software licenses but without reaching the stage of Testing and Go Live although 60% of the contract amount equivalent to USD 1,166,473.80 has been paid to the supplier as at November 2017. EAST AFRICAN COMMUNITY -A UDTT COMMISSION Page 11 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 In consequence, it has not been possible to ascertain that the EAC has obtained value for the expenditure of USDl, 166,473.80 incurred on the project and the delay impacts negatively on achievement of project goals. Responsibilities of Management for the Financial Statements The Secretary General and the Project Coordinator are responsible for the preparation and fair presentation of the financial statements in accordance with International Public Sector Accounting Standards and Section II.C (1-3) of the financing agreement and for such internal control as the management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the management are responsible for assessing the Project' s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management intends to cease operations of the Project, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project 's financial reporting process. Audit Commission's Responsibilities for the Audit of the Financial Statements The audit objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor' s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The part that follows below can be taken to an appendix as permitted by paragraph 40 of ISA 700 As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 12 of 27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 • Obtain an understanding of internal control relevant to the audit 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 Project's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. • Conclude on the appropriateness of the management' use of the going concern basis of accounting and based on the aud it evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Project to cease to continue as a going concern. • 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. • Obtain sufficient appropriate audit evidence regarding the financial information of the business activities within the Project to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with the management regarding, among other matters, the plam1ed scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that are identified during the audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we 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 . We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 13 of27 AUDITED FINANCIAL STATEMENTS OF EAC FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 ~ ........ Mr. Edward R. 0. Ouko . .... .. Mr .John F.S. Muwanga Aud itor General of the Auditor Genera l of the Republic of Kenya Republic of Uganda General of Republ ic of Tanzania /1-- \(2/ 'rJJ:e u> r Date ...~.. . .. . .. . .. .. . . .. .. . 1 ( ...... ~ . .... ... . . Mr.Obadiah.R.Biraro Ms. Gener~ Kiyago Auditor General of the State Inspector General Republic of Rwanda The Republic of Burundi ~ Date .. .. . 1• • J. .... :-:- ...... <:\,. \ ..f.L .\~ Date ... .J .\')-- East African Community Audit Commission @2017 Page 14 of27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 6. FINANCIAL STATEMENTS FOR FSDRP FOR THE YEAR ENDED 30 JUNE 2017 6.1. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 --·--···-·-·-··-····--·-------··-····-···············-········--·--------···············-····-······----··-······-·-··- ···········-··-f-··-···-··-·--·---·-· I 2016/17 ·1·····-·--···-----·-·---·-·- I 2015116 ASSETS _..............................---·--·-··-- ................................................................. I NOTES I USD ; USD ··················j·········-· .. -· ...................._ ............ CURRENT ............_ ASSETS -·-····-·-···-------------···--..-······--··· ··········-··--·-----------·-··-···-·-······-·············-·-··-···············-·.. ·-· ..·-··· i ··············:······· ·····················--·-········-··-···-·· Cash and Cash . .Equivalents _ _________ _ __ ______ _ 578,24~_ Taxes Recoverable ...................,,,----·-····-··········-·····-······-··--·------ .......................................-.,----····-· .............................. ,,,--·······-······-··--······· ................... 1. . . . . . . 20,590 . . TOTAL CURRENT ASSETS ! ' ! 598,836 ···-· -----·-···-·-----------···..······--------- ········-·-···--··----·-···----···--·· ! I NON CURRENT ASSETS ==::~=:~ 1 i ! - riant- rropE!Y~ an£"'1_a~s_ 0.00 7,753)- from __ investing_ Cash__g~nera ted _ activities -----------------------+--------------------------------0.00 --~------------------ (247, 753) _ ~~!.~~~~_in ~~-~-~--!!!_ ~--~~~- ~ i~~le_ nts - ~q~_ -- i ---(502;7-191 --f--··-··---···--------------------···---------·-----· ---- -- --------·-----------·----+--·----------·--------··--·-------·---1 f 168,175 - Cash and cash e uivalents at be innin of eriod I 578 246 I 410 071 i~- -Cash -and-~~;h-~ ~~- ~t~--;- ;I~- ~: -~f - ;-~- ~~~i~~t -------------1------------------------- 75:530···r -----------------------578:246-- EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 17 of27 AUDITED FINANCIAL STATEMENTS OF THE FINANCIAL SECTOR DEVELOPMENT AND REGIONALIZATION PROJECT (FSDRP) FOR THE YEAR ENDED 30th JUNE 2017 6.5. STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2017 I I B ud gete d A mounts . US O in J , , 1 A Actua l mounts US O . in I Final Budget an Diffe rence: dA t -~~~~~ _:~::::-::~:::::::::~:~~:~-=-~=~~~::~::~~---==~~ ~~~~::-:::::~Origina l-T~=~:=:::~~~- Finaii~::=:===~~-~::~~:~~:~- -~::~~:~ USD):~~~----- - - - - - - - - - - - - - - - - : c ua 1 in ± ( I E xp 1 . f . anat1 on o variances Special fu nds fro m Development Partners 3,663 ,975 I 3,663 ,975 I 12 1,697 3,542,278 j Delay in the approval of work plan I _ I by the World Bank i~w;;;ue-_::::-:::::::::==~~- ===~+::::::- 3,663,975+-::::: 3,663,975 ±:::::-_::::_121 ,697 i-::: 3,542,278 _ '- __ [_ ~ : --_-_-_------~---------~-~-_-_-- - Salari es, Wages and Em ployee Benefits I 1,476,000 \ 1,476,000 I 1,005 ,000 I 471 ,000 ! T hree staff we re not rec ruited as I I ' ! ' i I I I p Ianne d , ---------------------------------------···----------------------------- ------------------,-------··-----------··---------------,----------------------·····--------------, --------------------·- -------·-·-i-··----------------------------------+----------------------- Adm in istrati ve, meetings & consultancy I I, 787,975 l 1,787,975 i 4 1,778 \ 1,746, 197 I Delay in th e approva l of wo rk plan t:t~ :;f~~i~~;.-=-=~:_ ~ o ::F==:~~ _=:::f=:: : : ::~ t : : _=_:: :J ~ oot u JJf =~~:. ::.~::i::::i.==h :h ~----_ 9 - !~tus/ -F (~ -~ I_ C__ _I_ _ T + t----:;.~~~8~ ~+~ _ +-________________ _)_F_O_R - -HE ___T i ·-··-----------·--r- 69,636,84~ i 70,93i,Sl ~ i ! 39,542,368 ! activity could not be undertake n PERIOD I I • I • I I I THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 6.6. STATEMENT OF SPECIAL ACCOUNT ACTIVITY FOR THE PERIOD ENDED 30TH JUNE 2017NOTES TO THE FINANCIAL STATEMENTS . Description ----- L l 2016/1 7-J Cumulative USD ! USD ---------·---------------------------------------------·----------------------------·------------i-----=:·----+:------- 1 -----------------------------------·----------------------------------------------------·----------------·---------------t---- I I 51 . O~aj_Qg _ balance as at _l_ J~ _ 2016 __________________________________________________________! 578,246.46 ! 578,246.46 I I Add: i i ·~:u:~ount Deposited by World Bank~======~~69~ 699,942.96 -----............................................................................................ __________ r-----..............--·-----r-------.......______ _ ·-----------·------------------------------------·····-··--------------------·-··----.. --- Total amount withdrawn _ _ ~ 250.26 I (618,250.26) Closing__ Bank Balance_as at _ 111 30 June_2017 as per_Bank Statement _____ L ____J__ ?l ,692. 70 _ Deduct ! ! ------ u ---d-h--------·------------ ._!!:£.1:_~Sente --~- eques _____________________________________________________ i · - - - 4 - (6,162.2 _____________________.___ -------+-~-~--~ 1) ----------------------------·------------------------------·-----------4---------+------- Balance as per cash book as at 30 111 June 2017 75,530.49 7. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION 7.1. Basis of Accounting The accompanying finan cial statements have been presented on an accrual basis of accounting while the budget has been prepared using cash bas is of acco unting. Accrual basis means a bas is of accounting under which transactions and other events are recognized when they occur (and not onl y when cash or its equivalent is received or paid). Therefore, the transactions and events are recorded in the acco unting records and recognized in the finan cial statements of the periods to which they relate. Accrual accounting allows fo r revenue to be recognized when earned and expenses to be recognized when incurred . Budgetary accounting allows fo r compliance with the req uirements fo r and controls over the use of Partner States Approved Budgeted fund s. 7.2. Basis of Preparation The fin anci al statem ents have been prepared in accordance with Internati onal Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB) . When the fPSASB does not prescribe an y spec ific standard, IFRSs and IA Ss are applied. The fin ancial statements have been prepared on a going concern bas is. The measurement base applied is hi storical cost. The acco unting policies have been applied consistently throughout the period . The princi pal acco unting policies adopted are set out below. 7.3. Adoption of new and revised standards THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 From July 2016 to 30 June 2017, there was no new IPSAS standard having an impact on these financial statements. 8. KEY JUDGEMENTS AND SOURCES OF ESTIMATION The preparation of financial statements requires judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses in conformity with IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors. The key judgements management made in preparing the financial statements are as follows: • The lives of intangible assets and property, plant and equipment are at least that set out in notes number 5.5 and 5.6. Key estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the period of revision and future period s. 9. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Donations and Grants The financial statements in conformity with IPSAS 23 - Revenue from Non-Exchange Transactions, require management to recognize liabilities from transfers with restrictions and/or conditions over the period of which economic benefits wi ll be received from such transfers, with disclosure of such restricted contributions from Development Partners. Most of the assistance given to EAC- FSDRP receives funds from World Bank which is considered as restricted contributions. Restricted contributions are recognized as Revenue over the period s necessary to match them with the related costs which they are intended to compensate on a systematic basis. On the Financial Statements for projects, rece ipts to financial annual budget are recognized as revenue for the year, and then Expenses are deducted. The surplus to the donor, which is Net Asset/equity for the Project, is thereafter di sclosed on the Statement of Financial Performance as "attri butable to Development Partners", reported as deferred revenue on the Statement of Financial Position and adjusted from Net cash flow from operating activ ities on the Cash flow statement. Grants related to assets are presented in the statement of financial position as deferred revenue, which is recognized as revenue on a systematic and rational basis over the useful life of the asset. Foreign Exchange rates The financial statements are prepared in conformity with IPSAS 4 - The Effects of Changes in EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 20 of27 THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 Foreign Exchange Rates which requires management to disclose effects of foreign currency transactions in their fin ancial statements. In accordance with IPSAS 4 and related definit ion, the Presentation Currency of EAC, the currency in which its finan cial statements are prepared, is the United States Dollar. The United States Dollar is also the operating currency of EAC-FS DRP The Functional Currency (ies) of EAC, the currency (ies) of the primary economic env ironm ent in which an entity operates - a country in which an entity primaril y generates and expends cash is (are) the United States Dollar and the fo llow ing currenc ies - Burundian Francs, Kenya n Shill ing, Rwandan Francs, Tanzanian shilling and the Ugandan Shill ing, fo r the fi ve (5) EAC Partners States of Republic of Burundi, Repub lic of Kenya, Repu bl ic of Rwanda, Tanzania - United Republic of and the Republic of Uganda respectively. EAC- FS DRP has its Presentation currency, the United States Dollar, as its fun ctional currency and hence uses the fo llowing procedure to tra nslate its foreign currency transactions into the Presentation currency fo r reporting purpose - I) monetary assets/liabil ities are translated at current exchange rate 2) non-monetary assets/liabilities measured at historical cost are translated at hi storical exchange rate 3) non-monetary assets/liabi lities measured at current value are translated at the exchange rate at the date when the current value was determined 4) Owners' interest accounts are translated at historical exchange rate 5) Revenues/expenses other than those expenses related to non-m onetary items ( as in (i) (b) above) are translated at the exchange rate that existed when transactions took place (for practical reasons, average rates may be use) 6) Expenses related to non-monetary assets, such as depreciation (fixed assets) and amorti zation (intangible assets) are trans lated at the exchange rate used to translate the related assets. Both rea lised and unrealised gains and losses resulting from the settlement of such transactions, and fro m the retranslation at the reporting date of assets and liabili ties denominated in fo reign currencies, are recogni sed in the Statement of Fi nancial Performance. The exchange rates used fo r the fo llowing reporting dates are as fo llow: Curren')'------------------------------------------------------------------------------------~------------------ 30/6/2017 J_________ 30/6/2016 _ I US D/KES (Kenya Shillings) i -----------·----------------------------------·------------·-----------------------------------r---------------------·---------------··----------+-·---------·-------------------- I 03.20 ! I 00.5 __J_Jd_ ~Q0.:;§_ _(I~- ~ ~_!!_1~--~ -~JJ_!J_~g- ~L__ 2,2 18 I 2,110 J__Q_S _Q L~_ g_ ~__(~g~Q -~~--~bJl! ing~).______________ ____________ ___ ______ _ ___________________I ____________________________3, 602J _____________________ 3,375 _ __!__{L~Q!.~IF (Burundi Francs) ! I,708 I 1,640 - --·-----------·--------------------------------------------·------··-----·------------·--··---····-··-·---------------------f-------·····-----------·-----------·--··---------·------+-·--------------··-----------------·- 1 US D/RW F (Rwanda Francs) 1 0so7EuRo ! , 838 ! o.90 1 r 770 --0.90 · EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 21 of 27 THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 Total amount of loss on foreign exchange was debited to the Statement of Financial performance. b. Property, Plant and Equipment Property, Plant and eq uip ment are carried in the Statement of Financial Position at their historical cost. Expenditure incurred to replace a component of item of property, plant and equipment is accounted for separate ly and capitalized while the major replaced component is derecognized. Al l other expend iture items which do not meet recognition criteria are recognized in the statement of Financial Performance as expenses as they are incurred. EAC- FS DRP derecognises items of Property, plant and equipment and/or any significant part of an asset upon disposal or when no economic benefits or serv ice potential is expected from its continu ing use. Any gain or loss arising on de-recognition of the assets (calcu lated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the surplus or deficit when the asset is derecognised. c. Depreciation The financial statements in conformity with IPSAS I - Presentation of Financial Statement and IPSAS 17 - Property, Plant and Eq uipment recognize depreciation in the Statement of Financial Performance. Management charges depreciation to the Statement of Financial Performance on a straight-line basis to write off the cost of property, plant and eq uipment to their residual values over their expected useful lives. Depreciation for Property, Plant and Equipment purchased during the year is apportioned proportionate ly to the remaining period of the year. Property, plant and equipment acquired during the year is depreciated from the date when it is available fo r use and cease to be depreciated at earlier of the date that the asset is derecognized. Annual depreciation rates applied are as fo llows: , FY16/17 I FY lS/1 6 ·------------------------.----·-----------·----------· --------·--------- ,·-·---·- ·-----·---- ------···----·- --·----------·------------···------------1---------···-----··-··-··-·- --··---------------··-·--··---------·----------- Computer equipment I 33.33% , 33.33% Telecom munication eg_~inment T----------------3-i33% - 33 .33% -----------------------· __:..c____________ t-·-------------------------------·--------------------- ------·------------·------------------·----- Office ~iJZ!!!ent I 25.00% -- --------------------r--------·-----------------------·-'-"--·-----------·----------------·------------ 25.00% Office furniture l 12.50% 12.50% d. Impairment of tangible and intangible assets The carrying values of fixed assets are reviewed for impairment if events or changes in circumstances indicate that they may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determ ine the extent of the impairment loss (if any). Any provision for impairment is charged against the Statement of Financial Performance in the year concerned. e. Intangible Assets EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 22 of27 THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 Intangible assets relate to computer software. Software is amo11ized at 20% per annum on a straight-line basis if in use. Generally, costs associated with mai ntaining computer software programs are recognised as expenses when incurred. f. Taxation Article 4 Section ( I) subsection (d) of the Headquarters Agreement between East African Community and the United Republic of Tanzania states that: "The Secretariat, its property, assets, income and transactions shall be exempt from all direct taxation including sales tax and from Customs Duties and prohibitions, restrictions on imports and exports in respect of articles imported or exported by Secretariat for its official use. The Secretariat shall also be exempt from any obligation relating to payments, withholding or col lection of any tax or duty provided that such assets and other property shall not be so ld within the United Republic of Tanzania except in accordance with conditions agreed to with the Government". The EAC- FSDRP activities compl y with the Headquarters agreement g. Cash and cash equivalents Cash and cash equivalents comprise cash in banks, term deposits and other short-term highl y liquid investments that are read ily convertible to a known amount of cash and are subject to an insignificant ri sk of changes in va lue. h. Presentation of Budget Information The financial statements in conformity with IPSAS 24 requires management of a public sector entity to show comparison of budget amounts arising from execution of the budget to be included in the financial statements of the entity which are required to, or elect to, make publicly available their approved budget for which they are, therefore, held publicly accountable. The Standard also requ ires di sclosure of an explanati on of the reasons for material di ffere nces between budget and actual amounts. The EAC- FSDRP Budget was approved on cash basi s, with class ification by nature, for a period of one year, i.e. Ist Jul y 2016 to 30th June 2017. AC prepares its financial statements clearly indicating the actual expenditure in comparison with the ap proved budgetary provis ions and in so doing full y comp lies with thi s Standard. i. Related Parties The financial statements in confo rmity with IPSAS 20 requires EAC- FSDRP to show the aggregate remuneration of key management personnel and the number of individuals, determined on fu ll time equivalent basis, receiving remuneration within this category, showing separately major classes of key manageme nt personnel and including a description of each class and the total EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 23 of 27 THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 amount of all other remuneration and compensation provided to key management personnel and close fa mil y members itemized separately. During the year to 30th June 20 17, the rem uneration paid to Profess ional experts was US$. 95 7,000, Financial Risks EAC-FS DRP is exposed to a variety of financial risks, including market risk (foreign exchange and price), liquidity and credit risks. EAC-FSDRP does not make use of financial derivatives to hedge its ri sk exposures. 1. Foreign-exchange risk EAC- FSDRP rece ives donor grants in US Dollar and is thus not exposed to foreign-exc hange risk arising from fluctuation s in currency rates. 11. Liq uidity risk EAC- FSDRP may not negotiate and use uncommitted short term bank credit facilities in the event of liquidity requirements. It can onl y seek assistance from the EAC Secretariat. j. Provisions, Contingent Liabilities and contingent Assets Provisions are constituted when EAC- FSDRP recognises a liability arising from a past event, for wh ich it will probably have to bear the cost. Provisions are measured at management's best estimate of the expenditure required to settle the obli gation at the date of the Statement of Financial Position. There were neither contingent liabilities nor contingent assets as at 3 1 December 2015. k. Related-Party Transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if the related party entity and another entity are subj ect to common control. In the case of EAC- FSDRP related parties have been taken to be:- 1. key Project management personnel, and close members of the family of these key management personnel, 11. Key EAC management including the members of Executive and Steering Committees. There was no material transactions with related parties during the financial year ended 30 June 2017. I. Events After The Reporting Period There were no events after the reporting date that warrants disclosure in the financial statements. EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 24 of27 • THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 10. ARTHIMETICAL NOTES TO THE ACCOUNTS IO.I. CASH AND CASH EQUIVALENTS Particular 2016/2017 l 2015/2016 : WB-FSQ_ Total ~P ~::::::::::=:::~~::=::::::=--L=--===~~=-=~=~-=~~J=t ! 5~~.~~J~ =:==:=~~=:: : : : : : : ~:~_:: :=~=:=: : : : :_ 578,246 75 ,53 0 I 10.2. TAXES RECOVERABLE Particular I 2016/2017J 2015/2016 ---·-------------------------·--..---------------·----------·---------------------·------..--.. --·-----------------------·----..-..----·---------·-------i. ._ ._ __J,U SD) ___________ (US D) __ . . ___ VAT Recoverabl e: EAC- FSDRP is a tax-exempted entity. Where goods and services I 26,225 I 20,590 are invoiced includ ing tax, an Application fo r Tax Refund is filed with the relevant I i Revenue authoritL ·-------------------------------·------------------------.. -----------------------------..--------·---------------1- !______.._______________ _ Total ! 26,225 ! 20,590 I 0.3. Property, plant and Equipment as at 30 June 2017 (US O) Description Computer & I Office i Office Furniture i Total : Telecommunication I Equipment ! i :~~~;~~i~::~ -· ==~=-=--=--=-:~:=t -~ E :/ ==-=37~~~~ ---=_381 guJ::;~ :_::::=- 2~:4~ ~~~: -1 ·*·-- - - - - - r - - - - - - - -t-------------------------·---:-------------·------------·---------r---------------------------- Dis_P.osal/ ·----- Adj----·----------·---------·-. -------·------- ustment I .·------------ i--------- Oi 548 -. . -------""·t·----------------·--------. i .--.. --... -i------------------. I .----.. --·------------r---------·-----. 0 .-----·---------· . :::~~:,~::: ~:1 :eciation:-----r---- 340,323 +-------------- 3,188 +----------------37,607+----------- 381 , 118 -;.:~lj- ~,- ~- ;a_ i_ 6_____p _______________ ____________ -r_____ ------m~;3; r-------------------;-:c;:s;-r---------------------;3-:704--~-------------- i-97:9-88- -D~_p!eciati ~~f;;.-;~~~~---------------- ~---------- 76,606 l--------------------- 475 _, __________________________ 5,_ 134 __ /____________________ 82,2. 16_ As at 30 J[!_!1_~_~Q!2_____________ ! 248839 i 2,527 ! 28,839 i 280,204 ~~~l_ l)'.i_ ~g-~~~-~- - i:i_ !:_ _______________________ ~------ ______________ j _ _ _ _ _ _ _ _ _ _ _ _ _ __ ]__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _l---------------------------------- As at 30 June 2017 I 90,485 I 661 / 8,768 i 99,914 10.4. Intangible Assets Description l Software J Total i Acquired I -----------..·------------·-------------------·--------------·---------..-----------·------·----·---.. ----------------·--------L-------------------·----------------.. --i---------·---------·-------------------- i USD [ -------·--------------------------------·---------------------------------------------------------------------4-----------------------·---------.. -------i-------------------------------------- USD - AsIJutx20 I6 - - - -----------------------·---------------------------. i oi o . ---·-------------------·----.. --------------------+---------------------------------·-------i------------------·------------------- Add iti on s/ Adjustment ! 777 247 ! 777 247 --;-;;:;~-~;-----------··-------·----------------------------------.. -_-____________-_________________________________J___________________________ ' ______ o J_ _ _ _ _ _ _ _ _ _ _ _ _ _ _. _ _·_ __ o__ As at 30 June 2017 I 777 247 i 777 247 f~~:~~;;;;;-.~==-=::::_-=:--::-::·::::::::1:=====-·=f=====·-_o: Amortization fo r the year 0 O/ 0 EAST AFRICAN COMMUNITY - A UDIT COMMISSION Page 25 of 27 • THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 1 Desc ription Softwa r e Total ------------------·----------·----------·---------------------------·--------------·--------------------------,---··-------------------------- I Acq uired 1 ----- - 1 USD ·-------------·-----------------·-------------------·------··-----·---------------------·---··--------·--------------------1--······------·-··----------·-----------.. ·-·----1---------·---------··-··---------·------- I USD Adj ustments to acc umul ated amortization i OI 0 ~ a t 30-~-!!_!le 20 I 7 ___________________________________________________________________ J_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I._ _ _ _ _ _ _ _ _ ______ ! 0 ! Q__ : :ta:a;;::gn::~~~t: ---------------------------------1---- 777,;47- t 777,247 10.5. PAYABLES I 2016/2017 J 2015/2016 ,- . ;~~}:~~P,bl,===-==--==~-=t==~J~~~----~~;; Refund to EAC Secretariat for salaries i 129,000 i Palace ho!~l A rusha _____________________________________________________________________ -=-=r --------------------------- I 76fj _______________________ - . SUB TOTAL ! 430,768 ; 564,383 10.6. S PECIAL FUNDS FROM D EVELOPM ENT PARTNERS ! 2016/2017 j 2015/2016 _PA RTI CU LA RS ____________________________________________________________________ !______________________ ( US D)~ ________________ j US D) _ WB, FS DRP (These are revenues from No n _ Excha_12Ee tra nsactions) ________ __[_ _________________ I 2_ 1,697 j______________ J ,702,72 6 _ Total Income from Development Partner j 121 ,697 ! 3,702,726 I 0. 7. Sa laries i I 20)6/2017 I 20]5/2016 PA RTI CU LA RS ------------------------------------------------------------------------------------------1 _____________________ (US D)_ i _________________ (US D) _ Salari es --------- I -----------------------·---------·--------------------1--------------·------;;-t------------------- 1,005,000 I I, 125,590 Total 1,005,000 1 1,125,590 10.8. ADM INISTRATIV E, MEET INGS & C O NSULTA CY EXPENSES PA RT I CU LA RS ______________________________________________________ Leased Comm unication lines J___________ ~~~~; ,_______ I I 29,807 I - 201 20 ri~~~-- - ------------------------·---------1----------------,---------------- Lo_gisti cs for meetings i ·---- ----------------------- --------------------·----------------·----------------------·------------·------------1--------·-----------·-----------·------- --------·-----------------------·-------· 1,609 I 29,387 ~r tickets i 1,234 ----------------------------·----------------------------------r--------------------- 809,901 ----------------- osA Facilitation - Sta ff 4,200 1,351 ,25 1 ·---·-------------··-----·-··----------·----------·--··--··------·-----------·----------"-"""''"---··--------··--------.... -.. --,........,_, __________________ 1---··-""'"-·-··"····--····--···-----··-----------··-- --.. ··----·------------·---------··--··. ·-·· . --. Contracted erofess ional Services, Consultancy 4,928 1,768,863 - -----------------·----------- ·-------- -- ·----- ---,---------·----------· ·---------· ----· --·------------------------ Tota I 1 41,778 3,959,402 10.9. FINANCE C O ST I 2016/2017 I 2015/2016 PA RT I CU LA RS ---------------------------------------------------------------1--------------------( US D D)_ J +------------------ (US_ Loss on exchange i 19 1 , - EAST AFRICAN COMMUNITY - AUDIT COMMISSION Page 26 of 27 THE INTER-UNIVERSITY COUNCIL FOR EAST AFRICA AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 ITotal 191 I -I 10.10. DEPRECIATION AND AMORTIZATION EXPENSES j 2016/2017 2015/2016 PA RTICU LA RS --------------------------------------r----------------- (US O) ____________ ( USO) . Comp_uter & _ Telecommunication _ ~qu ip}11ent ---------·----------------------·----------,------ --·-----------· 76,606 _-------------------- 93 ,852 __ Office E51ui pment ______________________________________________________]____________________475 _------------------ I 023 _____ 5,_ . 0 ffice furnitu re-------------------------------------------- ------------------------------- ________________ )_________ ____________ 35_ 13 5 __ -----------------------5, I_ _ I 82,216 100,010 EAST AFRICAN COMMUNITY -AUDIT COMMISSION Page 27 of 27