DCG.248/349/02/2018 11ht December, 2018 The Rt. Hon. Speaker of Parliament Parliament of Uganda Kampala REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE AGRICULTURAL TECHNOLOGY AND AGRIBUSINESS ADVISORY SERVICES PROJECT (ATAAS) - MAAIF COMPONENT FOR THE YEAR ENDED 30TH JUNE, 2018 In accordance with Article 163 (4) of the Constitution, I forward herewith audited financial statements of the Agricultural Technology and Agribusiness Advisory Services Project - MAAIF Component for the year ended 3Oth June, 2018 together with my report and opinion thereon. John F.S. Muwanga AUDITOR GENERAL Copy to: The Permanent Secretary/Secretary to the Treasury The Permanent Secretary, Ministry of Agriculture, Animal Industry and Fisheries The IDA/World Bank The Project Coordinator Agricultural Technology and Agribusiness Advisory Services Project -.NNW' >SCANNED Av ) THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE AGRICULTURAL TECHNOLOGY AND AGRIBUSINESS ADVISORY SERVICES PROJECT -MAAIF COMPONENT FOR THE YEAR ENDED 30th JUNE, 2018 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS LIS T O F A C R O N Y M S ............................................................................................................................................ 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF AGRICULTURAL TECHNOLOGY AND AGRIBUSINESS ADVISORY SERVICES MAAIF COMPONENT FOR THE YEAR ENDED 3 0 TH JU N E , 2 0 18 ................................................................................................................................................... 3 O p in io n .................................................................................................................................................................. 3 B a sis o f O p in io n .................................................................................................................................................... 3 K e y A u d it M atte rs ................................................................................................................................................. 4 * Implementation of Budget approved by Parliament ..............................................................................4 O th e r In fo rm a tio n ................................................................................................................................................ 6 Responsibilities of the Accounting Officer for the Financial Statements......................................................6 Auditor's Responsibilities for the Audit of the Financial Statements ............................................................7 Other Reporting Responsibilities........................................................................................................................ 9 REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION..................................................................9 * Overall Performance as Per the Logical Frame work.............................................................................9 * Sustainable Land Management Practices (SLM)...................................................................................11 > Implemented practices significantly below the planned targets........................................................11 * Delayed Disbursement of Funds to institutes .......................................................................................13 * Delays in the procurement process........................................................................................................15 REPORT OF THE AUDITOR GENERAL ON THE SPECIAL ACCOUNT OPERATIONS OF AGRICULTURAL TECHNOLOGY AND AGRIBUSINESS ADVISORY SERVICES (ATAAS) PROJECT-MAAIF COMPONENT FOR THE YEAR ENDED 30TH JUNE, 2018 .............................................................................................................. 16 1 LIST OF ACRONYMS Acronym Meaning ACDP Agriculture Cluster Development Project ATAAS Agricultural Technology and Agribusiness Advisory Services CR Credit EVMS Electronic Voucher Management System FYR Financial Year GoU Government of Uganda ICT Information and communications technology IDA International Development Association IESBA International Ethics Standards Board for Accountants ISA International Standards on Auditing ISSAls International Standards of Supreme Audit Institutions MAAIF Ministry of Agriculture, Animal Industry and Fisheries MBAZARDI Mbarara Zonal Agricultural Research Development Institute MOFPED Ministry of Finance, Planning and Economic Development MTR Mid Term Review NAADS National Agricultural Advisory Services NARO National Agricultural Research Organisation NAROSEC National Agricultural Research Organisation Secretariat. RT.HON Right Honourable SLM Sustainable Land Management UGX Uganda Shillings URA Uganda Revenue Authority US $ United States Dollar WB World Bank ZARDI Zonal Agricultural Research Development Institute 2 REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF AGRICULTURAL TECHNOLOGY AND AGRIBUSINESS ADVISORY SERVICES MAAIF COMPONENT FOR THE YEAR ENDED 30TH JUNE, 2018 THE RT. HON. SPEAKER OF PARLIAMENT REPORT ON THE FINANCIAL STATEMENTS Opinion I have audited the accompanying financial statements of the Agricultural Technology and Agribusiness Advisory Services Project -MAAIF Component for the year ended 30th June 2018. The financial statements set out on pages 6 to 16 comprise of; * Statement of receipts and payments * Statement of Fund Balance * Statement of Cash flows * Statement of Special Designated Account Activity * Notes to the financial statements including a summary of accounting policies used. In my opinion, the project financial statements present fairly in all material respects the financial performance of the Agricultural Technology and Agribusiness Advisory Services (ATAAS) Project-MAAIF component for the year ended 30th June 2018 and the receipts and payments for the period then ended in accordance with the Financing agreement and the basis of accounting described under note 2 to the financial statements. Basis of Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statement's section of my report. I am independent of the project in accordance with the Constitution of the Republic of Uganda (1995) as amended, the National Audit Act, 2008, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics and other independence requirements applicable to performing audits of Financial Statements in Uganda. Management explained that the bulk of the money unspent relates to big contracts whose procurement processes were still ongoing but they have since been completed and payments to a number of service providers effected. I advised the Accounting Officer to ensure timely procurement and accountability for disbursed funds as well as adequate supervision of the projects being undertaken in order to absorb all funds within the project timelines. Other Information The Accounting Officer is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer and the commentaries by the Head of Accounts and the Accounting Officer, and other supplementary information. The other information does not include the financial statements and my auditors' report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of the Accounting Officer for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the Agricultural Technology and Agribusiness Advisory Services (ATAAS) Project-MAAIF. The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act 2015, IDA guidelines and the basis of accounting described in note 2 to the financial statements, and for such 6 internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. In preparing the financial statements, the Accounting Officer is responsible for assessing the Project's ability to continue delivering its mandate, disclosing, as applicable, matters related to affecting the delivery of the mandate of the Agricultural Technology and Agribusiness Advisory Services (ATAAS) Project-MAAIF, and using the IDA Guidelines unless the Accounting Officer has a realistic alternative to the contrary. The Accounting Officer is responsible for overseeing the Project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements My 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 my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAIs 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. As part of an audit in accordance with ISSAIs, I exercise professional judgment and maintain professional skepticism throughout the audit. I 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. * 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 management. 7 * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to deliver its mandate. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Agricultural Technology and Agribusiness Advisory Services (ATAAS) Project-MAAIF to fail to deliver its mandate. o Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with him/her all relationships and other matters that - may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 8 REPORT OF THE AUDITOR GENERAL ON THE SPECIAL ACCOUNT OPERATIONS OF AGRICULTURAL TECHNOLOGY AND AGRIBUSINESS ADVISORY SERVICES (ATAAS) PROJECT-MAAIF COMPONENT FOR THE YEAR ENDED 30TH JUNE, 2018 Opinion I have audited the special account statement of the Agricultural Technology and Agribusiness Advisory Services (ATAAS) Project-MAAIF component for the year ended 30th June, 2018 which is set out on page 10 of the financial statements. In my opinion, Project management complied in all material respects with IDA rules and procedures and that the Special Account Statement for the Agricultural Technology and Agribusiness Advisory Services (ATAAS) Project-MAAIF component for the year ended 30th June, 2018 presents fairly in all material respects the account transactions and the closing balance as at 30th June 2018. Management Responsibility for the Special Account Statement Project management is responsible for preparation of the special account statement and its fair presentation in accordance with the requirements of the Government of Uganda regulations and IDA guidelines. Management is also responsible for designing and implementing internal controls relevant to the preparation of the special account statement that is free from material misrepresentation, whether due to fraud or error and selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility My responsibility is to express an opinion on the Special Account Statement based on my audit. I conducted the audit in accordance with International Standards on Auditing and the IDA guidelines on auditing. Those standards and guidelines require that I plan and perform the audit to obtain reasonable assurance about whether the Special Account statement is free from material misstatements. I believe that the audit provides a reasonable basis for my opinion. John F. S. Muwanga AUDITOR GENERAL KAMPALA 11th December, 2018 16 APPENDICES APPENDIX 1: BUDGET PERFORMANCE Project Component Sub-components Planned outputs Amount (UGX) Actual output Remarks "000" budgeted Management Response Enhancing Support to Sustainable SLM activities in MAAIF 39,999.6 Evaluation was done on Consultancy Procurement was This is true; it was dropped Partnerships between Land Management and ZARDIs to document lessons learned and good dropped because the because it could not be Agricultural Research (SLM) Activities practices from implementation of Completion time was achieved within the project and other initiatives under the Uganda strategic longer than June 25, period. The budget was only Stakeholders investment framework for sustainable 2018 UGX 77 million and not UGX land. 3.2 billion as stated by the Auditor. 30,855.6 Evaluation was on going on Procurement to be True, this procurement has Consultancy to develop a farmland Migrated to ACDP been migrated to ACDP planning strategy 39,999.6 Evaluation was ongoing on Procurement to be This is true, this procurement Consultancy to develop a project Migrated to ACDP has been migrated to ACDP proposal document to access funds from the green climate fund scaling climate smart agriculture in Uganda. 17 To install the nine (9) 1,450,000 The nine (9) solar powered irrigation Procurement to be Man gement acknowledges the solar powered irrigation schemes in the ZARDIs were not Migrated to ACDP Auditor's observation however schemes in the ZARDIs installed whereas the overall budget was JGX 1.4 billion the actual implEmentation turned out to be ore expensive due to prod Ictivity level of drilled bore oles - some were unsulcessful, others had lower yield and therefore required more than one hole. These initial activities therefore costed up t 65/o of the budget. In addit on, due to the changes in the stimated locations, the instal ation cost increased to UGX 2.1 billion vis-A-vis a balance of about UGX 500 millio . This coupled with the rema ning project period at the time, made it difficult to be delivered and completed. So the inistry requested for its completion to be migrated to ACD , which was granted; Strengthening Development of ICT- Assessment and Design 3,093,310 The procurement of a Consultancy was The Mission This is true, however it was Agricultural Support based support systems Reports for the ICT annulled and thus the required ICT recommended done internally and delivered services in support of MAAIF platform and associated Needs assessment was not undertaking this critical and concluded priority functions applications undertaken, activity under ACDP. (e-advisory, e-extension, e-statistics, e-M&E, e-certification, e- Market) 18 ACDP start up Supply, Installation, 5,040,000 The E-Voucher Management Agency 30% payment was This is true, this was done as activities Commissioning and was contracted and deployed but was made and the Mission recommended by the mission Maintenance of an E- not piloted as some activities were yet recommended the Voucher System and to be completed like designing and balance of the contract E-Voucher Assessment testing the delivery system and to be migrated to ACDP (Pre-tests/Test runs) establishing the matching grants for production in puts. 19 APPENDIX II-Delays in procurement process Subject of procurement Procurement Amount Date of Date of Date of Date of Date of Planned Date of Days Remarks reference initiation confirmation bid notice bid evaluation contract Contract taken number of funding opening signature signing date Supply of High Precision MAAIF/SUPLS/1 186,949,590 24/02/17 13/3/2017 23/5/17 7/6/17 19/7/2017 30/8/2017 1/12/2017 270 120 days delay GPS Units for SLM and 6-17/000390 days at evaluation M&E activities and contract placement stage Procurement of Ten (10) MAAIF- 99,946,000 12/10/16 02/11/2016 25/01/17 10/2/17 20/2/2017 30/3/2017 24/7/2017 282 114 days delay Laptops for ACDP ATAAS/SUPLS/2 days at contract Implementation Unit under 016-17/00176 placement stage ATAAS Project- M/s Alycom Investments Limited Procurement of five MAAIF/SUPLS/2 923,969,998 9/8/2017 7/9/2017 5/01/2018 12/1/2018 18/1/2018 15/2/2018 25/4/2018 256 A lot of delays double cabin pickup motor 017-18/00099 days from initiation to vehicles under ATAAS- bid issuance and 70 days at M/s Toyota Uganda contract Limited placement stage Procurement of MAAIF/CONS/20 50,300,000 11/7/2016 22/7/2016 22/8/2016 26/8/2016 6/12/2016 30/10/201 29/3/2017 255 significant delay Consultancy Services for 16-17/00043 6 days at evaluation "Lessons from Experiences stage of 70 days of Private Sector Investors and contract in Establishing and placement Implementing Agricultural Investments/Enterprises in Uganda under Department of Agricultural Investments and Enterprises Development (DAIED)- M/s Gabriel Elepu Supply and Delivery of 843 MAAIF/SUPLS/2 6,323,313,0 13/3/2017 12/3/2017 21/7/2017 8/9/2017 18/10/201 5/6/2018 445 A lot of delays Motorcycles 017-18/00373- 73. 7 days due to Lot 2 administrative review requests 20 MINISTRY OF AGRICULTURAL, ANIMAL INDUSTRY AND FISHERIES (MAAIF) Project Name: Agricultural Technology Agribusiness Advisory Services (ATAAS) Credit Number: 47690-UG & (ATAAS) Credit no. TF097184-UG (GEF) PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED 30T-JUNE 2018 2017/2018 Table of Contents In tro d u ctio n ............................................................................................................................................. 2 Components of Project ...........................................................................................................................2 Objectives of the project......................................................................................................................... 2 E x ch an ge rate .......................................................................................................................................... 3 Budget Perform ance................................................................................................................................ 3 Performance of and release of funds to ZARDI stations ...........................................................................3 Commentary on the ATAAS Financial Statem ents by the Head of Accounts............................................4 Statement of M anagement Responsibilities .............................................................................................. 5 STATEM ENT OF RECEIPTS AND PAYM ENTS..................................................................................6 STATEM EN T OF FIN AN CIAL POSITION ...........................................................................................7 STATEM ENT OF CASH FLOW S .......................................................................................................... 9 STATEMENT OF SPECIAL DESIGNATED ACCOUNT ACTIVITY .................................................10 NOTES TO THE FINANCIAL STATEM ENTS....................................................................................11 2.0. Notes to accounts....................................................................................................................... 12 2.1. N ote 1: Receipts for the period from designated account........................................................12 2.2. N ote 2: Cash Balances in the designated Account:..................................................................12 2.3. Donor funding for the year .....................................................................................................13 2.4. Note 3: Project expenditure ....................................................................................................13 2.5 Reconciled Cash Balances:.....................................................................................................13 2.6 Note 5: Computation of Foreign Exchange Gain/Loss for the period ending 30"'June 2018 .....14 2.7 Note 4: Purchase of Property, Plant and Equipment................................................................14 2.8 Statement of receipt and payments for ZARDis......................................................................15 2.9 Currency ..............................................................................................................................15 1 Introduction The National Development Plan (NDP) 2010/11-2014/15 stated that the vision of the country is to transform Uganda from a peasant to a modern economy within 30 years. The objectives of agriculture in the plan were to: (a) enhance agricultural production and productivity (b) increase access and sustainability of the markets, (c) create and enabling environment for competitive investment in agriculture and (d) enhance institutional development in agriculture. To operationalize the NDP vision, the then new Development Strategy and Investment Plan (DSIP) 2010/11-2014/15 of the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF) was designed with Agricultural research and advisory services as two of the eight sub-program areas under production and productivity program ATAAS was developed in 2010 to address the first two sub-components on (a) Agricultural Research and Technology Development and (b) Advisory Services and Technology Delivery. Accordingly, ATAAS Project has been under implementation since 2010, with funding from the World Bank and the Government of Uganda (GoU). ATAAS was set up as a means and opportunity for strengthening and scaling up technology service delivery, promotion and integration of agricultural smallholders in value chains and strengthening market linkages. A GEF grant was also blended with other project resources to promote SLM and strengthen MAAIF's institutional capacity to coordinate practice and policy on land degradation and climate risks. Thus, it was envisaged that the combined involvement of the Bank and GEF in ATAAS would rapidly increase farmers' agricultural production while enhancing environmental resilience and sustainability of agricultural land resources. Components of Project The ATAAS project as restructured has four main components which include: (i) Developing Agricultural Technologies and Strengthening the National Agricultural Research System; (ii) Enhancing Partnerships between Agricultural Research and other Value Chain Stakeholders; (iii) Strengthening Agricultural Support Services; and (iv) Program Management, Coordination and Monitoring and Evaluation. Objectives of the project The main objective of ATAAS was to increase agricultural productivity and incomes of participating households aimed at contributing directly to Uganda's poverty reduction strategies. The other objectives were; (a) To enhance agricultural production and productivity 2 (b) Increase access and sustainability of the markets, (c) Create and enabling environment for competitive investment in agriculture and (d) Enhance institutional development in agriculture. Exchange rate For the balance sheet, the ruling rate of 1USD to Ugx 3,874.75 as at 30th June 2018 was applied, while for expenditure, an average rate for the period of 1USD to UGX 3,565.44 was used. The spot rate on the date of transfer was used for any receipt. Budget Performance During the year ended 30th June 2018, ATAAS (IDA) budgeted to utilize Ugx. 62,197,234,000 under the main categories of; (i) Enhancing partnership between agricultural research and other stakeholders, (ii)Strengthening agricultural support services, (iii) Development of ICT based support system in support of MAAIF priority functions, (iv) Program management, coordination, marketing and evaluation, and (v) Enhancing partnership between agricultural research and other stakeholders. As at 30th June 2018, UGX 53,772,398,650 was utilized between IDA and GEF representing 86.45% Performance of and release of funds to ZARDI stations At the beginning of 2017/2018 FY, the consolidated opening balance UGX 12,752,737,976 of which UGX 10,577,776,625 relates to ATAAS and 2,174,961,351 relates to GEF ZARDIs respectively. During the year ended 30th June 2018, the stations received more funding amounting to UGX 12,291,468,963 out of which UGX 11,736,072,963 and 555,396,000 was from ATAAS (IDA) and GEF respectively The total funds available for utilization within the ZARDIs amount to UGX 25,044,206,939 which was fully utilized 3 Commentary on the ATAAS Financial Statements by the Head of Accounts During the period ended 30' June 2018, Agricultural Technology Agribusiness Advisory Services (IDA) and GEF projects had opening balances of USD 5,906,619.99 and 0.19 on designated account and UGX 2,994,898,544 and 2,181,901,875 on the operational account respectively. Additional USD 6,281,674.4, 1,500,000 and 377,567.39 was received during the year on the accounts of ATAAS, IFAD and GEF respectively. During the year 2017/18 UGX53,772,398,650 was utilized under ATAAS (IDA) and GEF projects respectively under main categories of transport equipment, ICT, Workshops and seminars, Staff Training, maintenance, Printing, Stationary and Binding, Communication, Internet Services and subscription and consultancy services. Additional UGX 5,298,860,360 was utilized under IFAD project activities I take full responsibility for the integrity of these Financial Statements, the financial information they contain and their compliance with the PFMA 2015. Signed on behalf Ministry of Agriculture Animal Industry and Fisheries (ATAAS Project) Ken Assistant Commissioner Accounts 4 Statement of Management Responsibilities The Financial Statements attached herewith have been prepared in accordance with the provisions of the Public Finance and Management Act, 2015 (The Act) and International Public Sector Accounting Standards (IPSAS). The financial statements have been prepared on the Cash Basis of Accounting and comply with the generally accepted accounting practice for the public sector and the Project Financing Agreement. We are pleased to submit the required financial statements in compliance with the Act and Project Financing Agreement. We have provided, and we will continue to provide all the information and explanations as may be required in connection with these financial statements. To the best of our knowledge and belief, these financial statements agree with the books of account, which have been properly kept. We accept responsibility for the integrity of these financial statements, the financial information they contain and their compliance with the terms and conditions of the Loan Agreement and the applicable Government of Uganda Regulations. Signed on behalf Ministry of Agriculture Animal Industry and Fisheries (ATAAS Project) Ethel Kamba For. Permanent Secretary 5 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD TO JUNE 30T" 2018 Details 2017/2018 2017/2018 2016/2017 Notes USD UGX UGX Opening Balance ATAAS (IDA) 5,906,619.99 20,591,629,076.00 9,570,438,019.83 GEF 0.19 662.38 3,908,840,364.63 ATAAS (UGX Account) 859,073.73 2,994,898,544.00 GEF (UGX Account) 625,869.14 2,181,901,875.00 Balances at the ZARDIs 3,658,067.88 12,752,737,976.00 30,150,011.40 TOTAL B/F 11,049,630.93 38,521,168,133.38 13,509,428,395.86 Total Receipts (Designated A/C) IDA +GEF Funds 2.3 6,281,674.40 22,656,328,862.35 64,806,517,994.10 GEF (USD) 377,567.39 1,362,844,596.90 IFAD (UGX Account) 1,500,000.00 5,422,185,000.00 Other incomes 757.27 2,640,000.00 TOTAL RECEIPTS 8,159,999.06 29,443,998,459.25 64,806,517,994.10 TOTAL AVAILABLE FUNDS FOR 19,2()9,629.99 67,965,166,592.63 78,315,946,389.96 SPENDING Project expenditure Category: ATAAS 2.4 7,603,692.86 27,110,523,672.00 39,794,781,427.50 GEF 453,707.61 1,617,668,039.00 Transfer to training Institutions under IFAD 1,479,386.13 5,274,665,000.00 Administrative Expenses under IFAD 6,786.08 24,195,360.00 Expenditure in ZARDIs (GEF +ATAAS) 2.8 7,024,152.68 25,044,206,939.00 Total Payments 16,567,725.36 59,071,259,010.00 Net of receipts over expenditure 12,641,904.63 8,893,907,582.63 38,521,164,962.46 AdC: Forex Gain 2.6 ATAAS 1,242,677,646 GEF 100,134,721 Fund balance As at June 30"' 2018 2,641,904.63 10,236,719,949.61 38,521,164,962.46 The VIAAIF ATAAS Financial Statements and the accounting policies and notes set out on pages I I to 15 form an integral part of these financial statements and were approved by management on 22nd August 2018 and signed on its behalf by: Ethel Kamba Kennet Muguryh. For: Permanent Secretary Assistant Commissioner Accounts 6 STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDING JUNE 30T1 2018 Details FY2017/2018 FY2016/2017 Current Assets USD UGX USD UGX Bank Accounts (designated Account) 377,567.58 1,462,979,980.61 5,906,620.18 20,591,629,738.38 Bank Accounts UGX (ATAAS + GEF) 2,232,509.28 8,650,415,329.00 1,484,942.87 5,176,800,419.00 Bank Account IFAD (UGX) 31,827.77 123,324,640.00- Balances at the ZARDs Accounts 3,658,067.88 12,752,737,976.00 Total Cash & Equivalent 2,641,904.63 10,236,719,949.61 11,049,630.93 38,521,168,133.38 Represented by: Fund Surplus Fund Balance - End of June 30 2018 (GEF 2,641,904.63 10,236,719,949.61 11,049,630.93 38,521,168,133.38 +ATAAS+ IFAD) The MAAIF ATAAS Financial Statements and the accounting policies and notes set out on pages 11 to 15 form an integral part of these financial statements and were approved by management on 22nd August 2018 and signed on its behalf by: Ethel Kamba Ken etl. Mu&lm-ya For: Permanent Secretary Assistant Commissioner Accounts 7 STATEMENT OF FUND BALANCE AS AT JUNE 30T" 2018 Details Notes Amount in USD Amount (UGX) FY 2017/18 FY 2017/18 Opening Balance ATAAS (IDA) 5,906,619.99 20,591,629,076.00 GEF 0.19 662.38 ATAAS (UGX Account) 859,073.73 2,994,898,544.00 GEF (UGX Account) 625,869.14 2,181,901,875.00 Balances at the ZARDIs 3,658,067.88 12,752,737,976.00 Total Opening Balance 11,049,630.93 38,521,168,133.38 Add: Receipts ATAAS 2.3 6,281,674.40 22,656,328,862.35 GEF 2.3 377,567.39 1,362,844,596.90 IFAD (UGX Account) 2.3 1,500,000.00 5,422,185,000.00 Deposit on GEF (UGX Account) 757.27 2,640,000.00 Total Receipts 8,159,999.06 29,443,998,459.25 Total Funds available for spending 19,209,629.99 67,965,166,592.63 Foreign (Loss) / Gain ATAAS 1,242,677,646 GEF 100,134,721 Sub-total 1,342,812,366.98 Total 19,209,629.99 69,307,978,959.61 Less: Payments ATAAS 7,615,169.65 27,110,523,672.00 GEF 454,392.42 1,617,668,039.00 iansfers to training Institutions under IFAD 2.4 1,468,172.23 5.274,665,000.00 Administrative Expenses under IFAD 2.4 6.898.37 24,195.360.00 Expenditure in ZARDIs (GEF +ATAAS) 2.8 7,034,754.73 25,044,206,939.00 Total Payments 16,579,387.41 59,071,259,010.00 Balance as at June 30 ,2018 2,641,904.63 10,236,719,949.61 Represented by: ATAAS UGX A/C Balance 2,229,547.07 8,638,937,493.00 GEF USD A/C 377,567.58 1,462,979,980.61 IFAD (UGX Account) 31,827.77 123,324,640.00 GEF UGX A/C Balance 2,962.21 11,477,836.00 Bank Balance USD Account 2,641,904.63 10,236,719,949.61 The MAAIF ATAAS Financial Statements and the accounting policies and notes set out on pages II to 15 form an integral part of these financial statements and were approved by management on 22nd August 2018 and signed on its behalf by: Ethel Kamba Ken T. Mu, a L/ For: Permanent Secretary Assistant Commissioner Accounts 8 STATEMENT OF CASH FLOWS FOR THE PERIOD ENDING JUNE 30T" 2018 Details FY2017/2018 FY2016/2017 Notes Shs. Total Receipts from operating Activities 2.3 29,443,998,459.25 78,312,460,195.00 Add: Realized foreign exchange Gain 1,342,812,366.98 Total Payments (ATAAS + GEF) (24,028,461,740.00) (39,791.395,232.50) Transfer to ZARDIs 2.8 (25,044,206,939.00) Payments to training Institutions under IFAD (5,274,665,000.00) Administrative Expenses under IFAD (24,195,360.00) Total receipts from operating Activities Total payments for operating activities (54,371,529,039.00) (39,791,395,232.50) Net cash inflows/(outflows) from operating activities _ (23,584,718,212.77) 38,521,064,962.50 Cash Flows from Investing Activities Purchase of property, plant and equipment 2.7 (4,699,729,971.00) (4,496,009,245.00) Net cash inflows/(outflows) from investing activities (4,699,729,971.00) (4,496,009,245.00) Net increase (decrease) in cash and cash equivalents (28,284,448,183.77) 34,025,055,717.50 Receipts Grants from international organizations Miscellaneous receipts 2,640,000.00 Total receipts from operating activities (28,281,808,183.77) 34,025,055,717.50 Foreign exchange gain Add: At the beginning of the year (GEF + ATAAS + 38,521,168,133.38 4,475,526,290.60 ZARD1is) At the 30th June 2018 (GEF + ATAAS + ZARDIs + 10,236,719,949.61 38,500,582,008.10 GEF) Net cash and bank balances 10,236,719,949.61 38,500,582,008.10 The MAAIF ATAAS Financial Statements and the accounting policies and notes set out on pages 11 to 15 form an integral part of these financial statements and were approved by management on 22n"d August 2018 and signed on its behalf by: Ethel Kamba Kenn T. Mugu a For: Permanent Secretary Assistant Commissioner Accounts 9 STATEMENT OF SPECIAL DESIGNATED ACCOUNT ACTIVITY FOR THE YEAR ENDING JUNE 30" 2018 AGRICULTURAL TECHNOLOGY AGRIBUSSINESS ADVISORY SERVICES (ATAAS), IFAD AND GLOBAL ENVIRONMENT FACILITY (GEF Deposit Bank: Bank of Uganda A/C Notes No:000100088400022 I - & A/CNO.00000088400024 FY 2017/2018 FY 2017/2018 FY 2017/2018 FY 2017/2018 ATAAS GEF IFAD TOTAL OPENING BALANCE AT JULY 17 5,906,619.99 0.19 5,906,620.18 Add: Total Amount deposited by World bank 6,281,674.40 377,567.39 1,500,000.00 8,159,241.79 Deposit By MOFPED - Deposit By GOU TOTAL 12,188,294.39 377,567.58 1,500,000.00 14,065,861.97 DEDUCT: Total amount withdrawn: Transfer to project Account 12,188,294.39 - 1,500,000.00 13,688,294.39 Payments directly from the Designated $ 40 - 40 account Total 12,188.334.39 __- 13,688,334.39 Closing balance at June 30, 2018 - 377,567.58 377,527.58 The NJAAIF ATAAS Financial Statements and the accounting policies and notes set out on pages 1 1 to 15 form an integral part of these financial statements and were approved by management on 22nd August 2018 and signed on its behalf by: Ethel Kamba Kenn . Mugh a For: Permanent Secretary Assistant Commissioner Accounts 10 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2018 1. Significant accounting policies The Ministry of Agriculture, Animal Industry and Fisheries is an Accounting Entity of the Government of the Republic of Uganda and is domiciled in Uganda. The Principal Address of the entity is: Ministry of Agriculture, Animal Industry and Fisheries (Head Quarters), Plot No 14-16 Lugard Avenue, P.O. Box 102, Entebbe, Uganda. 2. The principle accounting policies adopted in the preparation of these financial statements are set out below: a) Basis of preparation The financial statements have been prepared in accordance with International Public Sector Accounting standards (IPSAS) with particular emphasis on Cash Basis Financial Reporting under Cash Basis of Accounting. b) Cash Basis of Accounting The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the entity. Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. c) Foreign Currency Transactions Cash receipts and payments arising from transactions in a foreign currency are recorded in the financial statements using the ruling rate of exchange. Cash balances held in foreign currency are reported using the closing rate. Any gains or losses on foreign currency transactions/balances are dealt with in the Statement of Special/Designated Account Activity. d) Budget 11 The budget is developed on the same accounting basis (Cash basis), same classification basis, and for the same period as for the financial statements. The budget was approved as required by Law and Treasury Regulations as detailed in the Government of Uganda Budget Estimates. e) Reporting Period. The reporting period for this Financial Statement is within the financial year of the Government of the Republic of Uganda which runs from 1 July 2017 to the 30 June 2018. f) Expenses In general, expenditure is recognized when paid. Expenses relating to liabilities, domestic arrears and any other expenses incurred but not paid are not accrued in the financial statements but provided under the statement of commitments. 2.0.Notes to accounts 2.1. Note 1: Receipts for the period from designated account Date Description Amount (US$) EXD Rate UDX 8/16/2017 IDA Receipt 4,000,000.00 3,583.46 14,333,840,000.00 10/10/2017 IDA Receipt 2,000,000.00 3,602.75 7,205,500,000.00 12/13/2017 IDA Ieceipt 2,000,000.00 3,599.96 7,199,920,000.00 5i16/2018 IDA Receipt 2,000,000.00 3,696.63 7,393,260,000.00 6/22/2018 IDA Receipt 2,188,254.39 3,842.38 8,408,115,584.00 8/15/2017 [FAD 1,500,000.00 3,614.79 5,422,185,000.00 Total Receipts 13,688,254.39 49,962,820,584.00 The schedule above represents the total income in Uganda shillings received during the period of nine months under consideration as transferred to respective accounts using the exchange rates ruling as at the time of transfer 2.2. Note 2: Cash Balances in the designated Account: 2017/2018 2017/2018 DONOR USD EXD Rate UGX IDA IFAD - GEF 377,567.58 3,874.75 1,462,979,980.61 Deposit b GOU Grand Total 377,567.58 3,874.75 1,462,979,980.61 The funds on the designated accounts are kept in US dollar accounts but have been translated into Uganda Shillings using the exchange rate ruling as on 30"June 2018 12 2.3. Donor funding for the year DONOR 2017/2018 IDA 6,181,674.40 22.656,328,862.35 GEF 377,567.39 1,362,844,596.90 IFAD 1,500,000.00 5,422,185,000.00 TOTAL 8,059,241.79 29,441,358,459.25 2.4. Note 3: Project expenditure DETAILS ATAAS GEF IFAD TOTAL Communication expenses 26,938,800 26,938,800 Repairs & Maintenance 57,654,060 809,362 58,463,422 Staff Salaries 1,812,216,001 1,035,908,000 2,848,124,001 Supplies and services 287,573,662 65,205,408 352,779,070 Fuel & Lubricants 36,875,000 3,200,000 40,075,000 Printing ,Stationary and Binding 2,207,998,303 3,662,400 2,211,660,703 Foreign Travels 336,177,946 336,177,946 Travel & Transport expenses 11,507,514,775 454,282,700 11,961,797,475 Workshop & Seminars 3,524,230,316 51,400,169 3,575,630,485 Internet Services and subscription 129,624,068 129,624,068 Consultancy Fees 1,603,395,508 3,200,000 1,606,595,508 Reversal of Entries 79,171,533 79,171,533 Expenditure in ZARDIs 22,313,849,588 2,730,357,351 25,044,206,939 Sub Total 43,923,219,560 4,348,025,390 - 48,271,244,950 ICT Equipment 3,872,946,398 3,872,946,398 Other Equipment 43,758,152 43,758.152 Purchase of Motor Vehicles 783,025,421 783,025,421 Motorized Knapsack spray pumps 801,423,729 801,423,729 Transfer to training Institutions under IFAD 5,274,665,000 5,274,665,000 Administrative Expenses under IFAD 24.195,360 24,195,360 Total Payments 49,424,373,260 4,348,025,390 5,298,860,360 59,071,259,010 2.5 Reconciled Cash Balances: ACCOUNT INSTITUTE UGX (USD) 3211042 MAAIF ATAAS DOLLAR A/C - 3211042 MAAIF GEF DOLLAR A/C - 377,567.58 Sub-Total Total - 377,567.58 3211041 MAAIF ATAAS LOCAL A/C 8,638,937,493.00 3211041 MAAIF GEF LOCAL A/C 11,477,836.00 3211041 MAAIF IFAD LOCAL A/C 123,324,640.00 Sub-Total 8,773,739,969.00 ATAAS 3211041 ABIZARDI - _- 3211041 BULrNDI ZARDI 3211041 KACHWEKANO ZARDI _ 3211041 MBARARA ZARDI 3211041 MUKONO ZARDI - 3211041 NABUIN ZARDI - 3211041 NGETTA ZARDI - - 13 2.8 Statement of receipt and payments for ZARDIs Details Opening Receipt Receipt Total Expenditure Balance Balance (ATAAS) (GEF) ABIZARDI 1,130,177371 86,974,000 132,000,000 1,349,151,371 1,349,151,371 - BUGIZARDI 1,833,669,089 2,206,323,911 69,896,000 4,109,889,000 4,109,889,000 - BULZARDI 193,699,248 2,117,283,822 50,500,000 2,361,483,070 2,361,483,070 - KAZARDI 313,371,356 686,079,644 50,500,000 1,049,951,000 1,049,951,000 - MBAZARDI 1,204,821,086 1,807,153,425 50,500,000 3,062,474,511 3,062,474.511 - MUZARDI 2,154,770,313 1,738,204,161 50,500,000 3,943,474,474 3,943,474,474 - NABUZARDI 1,735,053,097 1,550,500,000 50,500,000 3,336,053,097 3,336,053,097 - NGEZARDI 2,847,171,550 137,278,000 50,500,000 3,034,949,550 3,034,949,550 - RWEBIZARDI 1,340,004,866 1,406,276,000 50,500,000 2,796,780,866 2,796,780,866 - Total 12,752,737,976 11,736,072,963 555,396,000 25,044,206,939 25,044,206,939 2.9 Currency The financial statements are presented in both Uganda shillings (UGX) and US Dollars ($) 15