THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF THE CENTRE FOR WATER INFRASTRUCTURE AND SUSTAINABLE ENERGY FUTURES (WISE-FUTURES) FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2018 Controller and Auditor General, National Audit Office, 16 Samora Machel Avenue, P.O. Box 9080, 11101 Dar es Salaam, Tanzania. Tel: 255 (022) 2115157/8, Fax: 255 (022) 2117527 E-mail: ocag@nao.go.tz Website: v_w.nao.go.tz December, 2018 AR/WISE/NM-AIST/2018 IABLE-OF-CONTENT.S. Abbreviations......................................---.......-. .- ..----- .- . .-.-- ...- ....-.*** .*** 1.0 GENERAL INFORMATION.................................................................. 1 1.1. M andate ................................................................................... 1 1,2. Vision, Mission and Core Values.......................................................... 1 1.3. Audit Objectives ........................................................................... 2 1.4. Audit Scope ............................ope.2............................................. 2 1.5. Audit Methodology ........................................................................ 2 2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL.........3 11 Office of the Controller and Auditor General AR/ACBF/NM-AIST/201 7 Abbreviations CAG Controller and Auditor General IPSAS International Public Sector Accounting Standards ISSAIs International Standard of Supreme Audit Institutions MDAs Ministries, Departments and Agencies PAA Public Audit Act No.11 of 2008 PAC Public Accounts Committee PAR Public Audit Regulation, 2009 PFA Public Finance Regulations, 2009 PPA Public Procurement Act, 2011 PPR Public Procurement Regulations, 2013 WISE Centre for Water Infrastructure and Sustainable Energy Futures Ill Office of the controller and Auditor General AR/ACBF/NM-AIST/2017 4.0 GEKERALINFORMATION 1.1. Mandate The statutory duties and responsibilities of the Controller and Auditor General are given under Article 143 of the Constitution of the URT of 1977 (revised 2005) and in Sect. 10 (1) of the Public Audit Act No.11 of 2008. 1.2. Vision, Mission and Core Values Vision To be a highly regarded Institution that excels in Public Sector Auditing. Mission To provide high quality audit services that improves public sector performance, accountability and transparency in the management of public resources. Core Values In providing quality services, NAO is guided by the following Core Values: / Objectivity: We are an impartial public institution, offering audit services to our clients in unbiased manner. V Excellence: We are professionals providing high quality audit services based on standards and best practices. / Integrity: We observe and maintain high standards of ethical behavior, rule of Law and a strong sense of purpose. / People focus: We value, respect and recognize interest of our stakeholders. V Innovation: We are a learning and creative public institution that promotes value added ideas within and outside the institution. V Results Oriented: We are an organization that focuses on achievement based on performance targets. V Team work Spirit: We work together as a team, interact professionally, share knowledge, ideas and experiences. We do this by: * Contributing to better stewardship of public funds by ensuring that our clients are accountable for the resources entrusted to them; * Helping to improve the quality of public services by supporting innovation on the use of public resources; * Providing technical advice to our clients on operational gaps in their operating systems; * Systematically involve our clients in the audit process and audit cycles; and * Providing audit staff with appropriate training, adequate working tools and facilities that promote their independence. © This audit report is intended to be used by Government Authorities. However, upon receipt of the report by the Speaker and once tabled in Parliament, it becomes a public record and its distribution may not be limited. O Office of the Controller and Auditor General ARIACBF/NM-AIST/2017 .1.3. Audit Objectives To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and are prepared in accordance with an applicable financial reporting framework; and whether laws and regulations have been complied with. 1.4. Audit Scope The audit was carried out in accordance with, the International Standards of Supreme Audit Institutions (ISSAls) and other audit procedures as were deemed appropriate under the circumstances. This covered the evaluation of the effectiveness of the financial accounting system and internal control over various activities of the Centre for Water Infrastructure and Sustainable Energy Futures. The audit was conducted on a sample basis; therefore, the findings are confined to the extent that records, documents and information requested for the purpose of the audit were made available to me. Audit findings and recommendations arising from the examination of the accounting records, appraisal of the activities as well as evaluation of the Internal Control System which requires management's attention and actions, are set out in the management letter issued separately to the Nelson Mandela Institution of Science and Technology (NM-AIST) As auditor, I am not required to specifically search for fraud and therefore, my audit cannot be relied upon to disclose all such matters. However, my audit was planned in such a way that I would have reasonable expectations of detecting material errors and misstatement in the financial statements resulting from irregularities including fraud. The responsibility for detection, prevention of irregularities and the maintenance of an effective and adequate system of internal control rests with the management of the Nelson Mandela institution of Science and Technology (NM-AIST) 1.5. Audit Methodology My audit approach included tests of the accounting records and other procedures in order to satisfy the audit objectives. My audit procedures included the following: * Planning the audit to identify and assess risks of material misstatement, whether due to fraud or error, based on an understanding of the entity and its environment, including the entity's internal controls. * Obtain sufficient appropriate audit evidence about whether material misstatements exist, through designing and implementing appropriate responses to the assessed risks. * Form an opinion on the financial statements based on conclusions drawn from the audit evidence obtained. 2 Office of the Controller and Auditor General ARIACBFINM-AIST/2017 2.0 !NDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL Vice Chancellor and Accounting Officer, Nelson Mandela African Institution of Science and Technology, P. 0. Box 447, ARUSHA. Report on the audit of Financial Statements of the Centre for Water Infrastructure and Sustainable Energy Futures Project for the financial year ended 30th June, 2018 Unqualified Opinion I have audited the Financial Statements of the Centre for Water Infrastructure and Sustainable Energy Futures Project for the Financial year ended 30th June, 2018 which comprise of the Statement of Financial Position as at 30th June, 2018, the Statement of Receipts and Payments for the year ended 30th June, 2018 and Notes to the Financial Statements, including a Summary of Significant Accounting Policies set out from page 17 to 22. In my opinion, the accompanying financial statements of the Centre for Water Infrastructure and Sustainable Energy Futures are prepared in alt material respects, in accordance with International Public Sector Accounting Standards (IPSAS) Cash basis of accounting and in the manner required by the Public Finance Act, 2001 (Revised 2004). Basis for Opinion I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Centre for Water Infrastructure and Sustainable Energy Futures Project (Wise-Futures) in accordance with the ethical requirements and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Responsibilities of Management and those charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IPSASs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the entity'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 3 Office of the Controller and Auditor General AR/ACBF/NM-AIST/2017 management- either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the entity'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 ISAs wilt 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. In addition, Sect. 10 (2) of the PAA No.11 of 2008 requires me to satisfy myself that, the accounts have been prepared in accordance with the appropriate accounting standards. Further, Sect. 48(3) of the Public Procurement Act No.7 of 2011 requires me to state in my annual audit report whether or not the audited entity has complied with the provisions of the Law and its Regulations. Report on Other Legal and Regulatory Requirements Compliance with the Public Procurement Act, 2011 In view of my responsibility on the procurement legislation and taking into consideration the procurement transactions and processes I have reviewed as part of this audit, I state that, procurement transactions and processes of the Centre for Water Infrastructure and Sustainable Energy Futures Project have generally complied with the requirements of the Public Procurement Act No.7 of 2011 and its underlying Regulations of 2013. The engagement partner on the audit resulting in this independent auditor's report is the Controller and Auditor General. Jasper . S. ero Ag. CONTROLLER AD AUDITOR GENERAL December, 2018 4 Office of the Controller and Auditor General AR/ACBF/NM-AIST/2017 NationaL Audit-Office.of Tanzania, P.O. Box 9080, 11101 Dar es Salaam, Tanzania. TeL: 255 (022) 2115157/8 Fax: 255 (022) 2117527 Email: ocagonao.go.tz 5 Office of the Controller and Auditor General AR/ACBF/NM-AIST/2017 h-’창ㅜ…… 戱 닐·．·－꽈。。／ ，∼ ㅗ＾i［씸l ㅗ ,［신 ,:－」。닛」r[-1j씻（／샀！스，［「 ·…： 질 쟀！ 【！·？ b껍孔겯래 The Celltre for 꺼Zater Inftastructure alld Sustainable Energy Futtlres (WISE - Futures) FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30TH JUNE, 2018 …；：… TABLE OF CONTENTS TA B LE O F C O N TEN TS ................................ I .................... I ........................ I ............................ LIST OF ABBREVIATIONS AND DEFINITIONS OF TERMS ................................................ iii INFORMATION ABOUT THE INSTITUTION .......................................................................... iv 1.0 COMMENTARY BY CENTRE LEADER .............................................................................. 1 2.0 CENTRE FOR WATER INFRASTRUCTURE AND SUSTAINABLE ENERGYFUTURES (W ISE - FU T U R E S) ............................................................................................................... 2 2.1 WISE-FUTURES-Objectives and Outcome ....................................................................................... 2 2.2 Students' Scholarships and Research Seed Support ....... ....................................................... 2 2.3 Sustainable Financing-External Funding ............................................................................................ 3 2.4 WISE-Futures Collaborations & Partnership ........................................................................ ............. 5 3.0 CONFERENCES AND JOE', T WORKSHOPS ....................................................................... 7 3.1 M andela w eek .......... ; .................................... ............................................................... .................... 7 3.2 Tanzania Commission for Universities (TCU) Exhibition ................................................................... 7 4.0 WISE FUTURES SUCCESS AND CHALLENGES: .............................................................. 7 5.0CEN TR E FIN AN CIN G ............................................................................................................. 9 6.0 PERFORMANCE MONITORING- Program-for-results financing ........................................ 9 7.0 FINANCIAL MANAGEMENT AND DISBURSEMENT ...................................................... 9 8.0 DISBURSEMENT ARRANGEMENTS-ADVANCES ......................................................... 10 9.0 DISBURSEMENT ARRANGEMENTS-DLIs ...................................................................... 10 10.0 DISBURSEMENT ARRANGEMENTS-DLIS ACHIEVEMENT PROCESS ................... 10 11.0 DISBURSEMENT ARRANGEMENTS-WITHDRAWING FINANCING PROCEEDS.. I I 12.OEX TERN A L A UD IT .................................................................................. 11 ....................... 1- 11 13.0 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 TH JUNE, 2018 ..................... 12 T5.0STATEMENT OFCASHRECEIPTS AND PAYMENTS FOR THE YEAR2-018......=3 16.0 CASHFLOW STATEMENT FOR THE YEAR ENDED 30' JUNE, 2018 ........................ 14 17.0 STATEMENT OF COMPARISON OF BUDGET VERSUS ACTUAL AMOUNT FOR Y E A R 20118 ............................................5... .................................................................... 15 18.0 NOTES TO THE ACCOUNTS FOR THE FINANCIAL AS AT 30TH1 JUNE, 2018 .......... 17 1.0 Principal accounting policy ................................oiy.....-.-7...................................................... 17 1.2 R eporting Period................................................. -. --.......... ...................................................... 17 1.3 Compliance with Donor Policy ..................olicy.17............--..----.....................................................17 1.4 Basis of Preparation of the financial statements ................................................................. 17 1.5 Foreign currency transactions .................................................................................................. 17 1.6 Incom e recognition.................................................17.. ...............................g__..............................._ 17 1.7 Transactions and balancesdbal..cs.1.............................. ......- - .............._..................................... I8 1.8 Pre-finance and retroactive finance expenditure ............................................................................ 18 2.0 C ash and C ash Equivalents......................................-.---................................................................ 18 3.0 G rants am ortization .................................--...-......-.......-..-....-......................................................... 18 4.0 Grant sustainable Finance-External Funding ............................................... .................................19 5.0 Other Income (grant recovery and interest)-note 5..........................................................................19 19.0 SC H E D U L ES..........................................---........-.-......--2...................................................... 22 20.0 LIST O F A N N EX E S .................................. ...................................................................... 24 21.0 TRIAL BALANCE FOR THE YEAR ENDED 30 JUNE 2018 ...................................... 25 LISTOT ABBREVIATIONS AND DEFINITIONS-OF TERMS- LAS International Accounting Standard TFRS International Financial Reporting Standards IPSAS International Public Sector Accounting Standards TZS Tanzania Shillings URT United Republic of Tanzania ACBF African Capacity Building Foundation NM-AIST Nelson Mandela African Institution of Science and Technology ANSTI African Network of Science and Technology Institution ICB International Competitive Bidding ILC International letter of Credit STEM Science, Technology, Engineering, and Mathematics WISE-FUTURES Water Infrastructure Sustainable Energy DLIs Disbursement Link Indicators DLR Disbursement Linked Result PFOR Program-for-Results Financing ACE II African Centre of Excellence II INFORMATION ABOUT THE INSTITUTION Registered office place: The Nelson Mandela African Institution of Science and Technology, Plot No.138/1/E, Block No. Nduruma Village, Arumeru District, P.O. Box 447, ARUSHA -TANZANIA. Telephone: +255 027 2970001 Fax: +255 027 2970016 E-Mail vc@nm-aist.ac.tz; Website: www.nm-aist.ac.tz SPECIAL ACCOUNT BANKER: CRDB Bank Plc, Usa River Branch, P.O. Box 355, ARUSHA - TANZANIA. VICE CHANCELLOR: Prof. Emmanuel J. Luoga The Nelson Mandela African Institution of Science and Technology, P. 0. Box 447, ARUSHA - TANZANIA. Secretary to Coucil: Advocate Francis W.Kayichile, The Nelson Mandela African Institution of Science and Technology, P.O. Box 447, ARUSHA -TANZANIA. AUDITORS: Principal Auditors: The Controller and Auditor General, The National Audit Office, P.O.Box 9080, Dar Es Salaam Tel: +255 (022) 2115157/8 Fax: +255 (022) 2117527 E-mail:ocag@nao.go.tz Website: www.nao.go.tz iv 1.0 COMMENTARY BY CENTRFLEADER - The Africa Centers of Excellence (ACE) are regional specialization programs that promote shared education and research resources, increase internationalization of higher education institutions and increase student mobility in the region. It employs a combination of elements including regionality, strong government ownership, competitive selection of centers, results-based financing, independent verification of results, intensive implementation support, partnerships, and a robust monitoring and evaluation system. There are two ACE'shosted at the Nelson Mandela African Institution of Science and Technology, namely:1) the Centre of Water Infrastructure and Sustainable Energy Futures (WISE-Futures) and 2) The Centre for Research, Agricultural Advancement, Teaching Excellence and Sustainability in Food and Nutritional Security (CREATES - FNS).In five years, WISE - Futures education and research programmes will equip 120 Masters, 51 PhDs graduates, and 160 policy makers and practitioners with advanced skills and competences for them to contribute effectively to solving development challenges related to water, sanitation, and energy security in the region. The WISE - Futures explicitly recognizes the gender disparity in Science, Technology, Engineering and Mathematics (STEM) in the region and proposes robust measures to accelerate African women participation in STEM: at least 30 percent of all graduates will be female The NM-AIST administrative structure provides for the creation of centres as autonomous units at the same level as schools. WISE - Futures seeks to establish a strong local and regional partnership with universities, private sectors, and other development partners. To address the gender disparity in STEM, the centredeliberately allocate 30% of its Masters and PhD scholarship to talented women candidates in Tanzania and the region. To increase quality, the centreprovide competitive research grants to Masters and PhD candidates whose proposals are of outstanding academic quality. On behalf of the Management and the entire staff of WISE-FUTURES CENTRE, I wish to extend my appreciation to the Government of the United Republic of Tanzania, and the World Bankfor providing the financial resources that have enabled the Centre to implement its mission and objectives since its establishment I also thank the NM-AIST Management for its tireless support to the Management of the centre in the course of implementing planned WISE - Futures activities. CENTRE LEADERSHIP Centre Leader - Dr. Hans C. Komakech Deputy Centre Leader - Dr. Yusufu A.C. Jande. 1 2.0 CENTRE FOR WATER INFRASTRUCTURE AND SUSTAIN-ABLE . - ENERGYFUTURES (WISE - FUTURES) 2.1 WISE-FUTURES-Objectives and Outcome Water Infrastructure and Sustainable Energy Futures (WISE - Futures) African centre of excellence was declared effective by the World Bank in January 26, 2017. This date is taken to be the day when the WISE - Futures started its activities. Based on this explanation, WISE - Futures is one year old. WISE - Futures at the Nelson Mandela African Institution of Science and Technology (NM-AIST) is focusing on enhancing research, learning, and teaching excellence in three key areas: water and sanitation security, water resources security, and energy security. WISE - Futures is steering achieving excellence to uplift the capacity (in terms of human resources and manufacturing industry) of Tanzania and African nations in general to solve the pressing problems related to water, sanitation, and energy by themselves. The excellence in these key areas can be achieved through improving partnerships with various partners (private and public sectors); local, regional, and international collaborators. 2.2 Students' Scholarships and Research Seed Support WISE Futures provides nominal scholarships to competitively selected Masters and PhD students in three key areas namely; Water and sanitation, Water resources, and Energy. To be eligible for scholarship, students should have obtained admission to NM- AIST Masters or PhD program in the respective specialization areas and fulfilled other scholarship specific eligibility criteria. WISE-Futures supports interdisciplinary research students given their proposed research has profound impact in water and sanitation security, water resource security, and energy security. During the year under review, WISE - Futures has accomplished various activities wide ranging from graduate students enrollment and partnerships to acquiring new projects from various donors/funders. Total number of graduate students who are under WISE - Futures is now fifty (50) in which thirty-three (33) are MSc students (three regional males, nine local females, and no regional females); and seventeen PhDs (four regional, two females, one being regional female). WISE - Futures has supported review and development of new programs in the school of Materials Energy Water and Environmental Sciences (MEWES), in the school of Computational and Communication Science and Engineering (COCSE), and in the school of Business and Humanities (BUSH); totaling 18 programs are now undergoing Tanzania Commission for Universities accreditation process. 2 2.3 Sustainabl Finanicin g-External funding Prior experience has highlighted the necessity for the ACEs themselves to develop fundraising capacity and learn innovative ways to generate revenues to finance their development needs after the project closing. The ACE also requires Centres to develop action plans for additional funds generation at the midterm review. The ACE project has taken this into consideration by designing a DLI that will match revenue generated externally by the ACEs, thus providing the ACEs with incentives to generate additional funds. The respective indicator tracks externally generated revenue deposited into the ACE's account from tuition fees, other student fees, sale of consultancies, joint research, fund raising anddonations, or other external sources. The project will match US$1 for every US$1 raised from national sources, and US$2 for every US$1 raised from regional and international sources. The project also includes an indicator in the Results Framework, externally generated revenue, to monitor progress of fundraising made by the ACEs under the project During the year under review WISE-FUTURES hasalso been able to generate external funding. Among proposals submitted for funding by various funders, four (4) of them have succeeded as follows: Promet Water purificationl uisig capacitive delinization (CDI') Project The World Academy of Sciences (TWAS), grant number: RGA No. 16-529 Donor RG/CHE/AF/AC_G - FR3240293305 dated 12 December 2016 Project USD 37,926 Value The project focuses on CDI for water desalination. It has offered full scholarships to two master's students working on CDI to remove lead from Overview water and integrating anti-microbial function in the CDI for water disinfection. The project also supports the purchase of Laboratory equipment; the Vertex.1A.EIS electrochemical analyser Project Establishment of a reg ionial enterprise to commnercialize the integrated Namne technolog-ies for afro/biowa.ste conversioni in eastern Afric_a Project SiDA through Bio-innovate Africa project, Project Code: B8401B10010 Donor (BIOCON) Project USD 25,000 Value The project intends to commercialize the constructed wetland technology which is for wastewater treatment and bio digesters for biogas production. Overview The integrated constructed wetland - bio-digester technology brings the cost- effective way of dealing with waste water from industries. From the process, the by products such as bio-gas and bio-fertilizer are produced apart from the 3 clean water produced from the waste water. In theproject' chPdes partners- from Uganda, Ethiopia and Tanzania; the lead partner: Tanzania (NM-AIST). Project Sustaining rural water sup through innovative models feWater Name payment technology) Project DFID Donor Project USD 60,000 Value In this project NM-AIST shall design and conduct baseline studies on technology performance and willingness to pay. The tools for performing Overview monitoring and comparative analysis of the eWater system, solar pumping, and DE fluoridation technologies shall also be designed and implemented for community use Project Evaluation oi suitabihty of water,hyac oint o Le Victoria-Tanzania as a Name feedstock for Bio-furel Production Project The World Academy of Sciences (TWAS), grant number: 17-495 Donor RG/CHE/AF/AC_G - FR3240297727 dated 15th January 2018 Project USD 40,915 Value The main objective of the project is to investigate the suitability of water hyacinths from Lake Victoria as a feedstock for biofuel production such as bio-ethanol gel, bio-ethanol and biodiesel. The project has given scholarship to two Master's students. One has full scholarship and the other partial scholarship. The students will be involved in the production of biofuels from water Overview hyacinths and characterization. Also, they will investigate the economic feasibility of producing biofuels from water hyacinths. The project also supports the purchase of research equipment; Rancimat equipment model 892 will be purchased for measuring oxidation stability of various biofuels. Po t Characteration (4f Irrigation Water and Associated Culivaied Soilsas Name Determinants of Paddl- Productivity in Tanlz,Ana, 4 NM-AIST in collaboration with The Gwiangju Istitute ofSdence and Project Technology: Global Research Project of International Environmental Research Donor (IERI). Project USD 9,176.96. Value As the title suggests, the project focuses on characterization of irrigation Water and associated cultivated soils as determinants of paddy productivity Overview in Tanzania. So far, the project team has made visitations to sites where the project samples will be collected.Among other things, the project willaslo sponsor one master student for his/her entire education programme. Others projects includes, collaborations with related partners including;Mobisol, A to Z, Arusha District Council, eWater Company, WaterAid, Babati District Council, and Korea Maritime and Ocean University (KMOU). Each of these partners has committed certain key area of collaboration; for example, KMOU will host two NMAIST PhD students for the maximum of three months to work on turbine design for hydropower and wind energy. In order to share knowledge with various stakeholders worldwide in the area of water and sanitation, water resources, and energy, WISE - Futures has initiated an international conference, which is for every year; the first conference was successfully organized in December 2017 last year, and the 2nd conference will take place in September 2018. Based on these achievements, the expected next disbursement from the World Bank is USD 1,446,034 after verification by independent verifier 2.4 WISE-Futures Collaborations & Partnership WISE-Futures works in partnership with both public and private sectors for joint collaboration in teaching and learning, research and publications, outreach programs, students and staff exchanges and resources mobilization. i. WaterAid, eWater UK, Babati District Council &Arusha District Council Sector: Water Supply Technology This collaboration involves implementing Sustainable eWater Prepaid System for Rural Water Supply,funded by DFID, implemented in Babati district (Manyara Region) and Arusha District (Arusha Region). In this project WISE-Futures (NM-AIST) support the implementation process, conducts baseline studies, monitoring, capturing and sharing lesson learnt. ii. Mobisol Tanzania 5 Sector: SolarEnergy Areas of Collaboration; 1. Providing internships and workplace exposure to graduate students in the areas of solar energy, each year two WISE-Futures PhD students will spend 3- 6 months at Mobisol offices based in Arusha to get more practical experience. 2. Providing employment opportunities to graduate students after practical training at Mobisol and if such opportunity arises, WISE-Futures students will be given priority by Mobisol before hiring new people. 3. Providing innovative research and development service solutions to address issues related to energy collaboration with local and regional partners 4. NM-AIST and Mobisol will support students and researchers to come up with solutions based on identified gaps and provide access to their state of art laboratory facilities. 5. Commercializing deduction, research and innovation establishment of customer-ordered training programs by having a joint professional training on areas related to solar energy and rural distribution, which will assist in generating income. 6. Establishment of business incubators/learning factories which both WISE- Futures and Mobisol will support to develop as an innovation centre where multiple needs of enterprises will be addressed, encourage peer to peer networking and offer technical assistance and develop more entrepreneurs in the long run. iii A to Z Textile Mills Ltd. Sector: Water, Sanitation, energy Water-food-energy-sanitation nexus, incubation Areas of Collaboration; 1. Providing internships and workplace exposure to graduate students in the areas of sanitation. 2. Fostering innovative research and development service solutions. 3. Resource mobilization and Participate in the process of reviewing and developing curricular for MSc and PhD. 4. Establishment of business incubations/learning factories which both A to Z and NMAIST will support to develop as an innovation Centre. iv. Korea Maritime and Ocean University (KMOU) Sector: Energy Areas of Collaboration; 6 Starfing 2018 1Infornifaticslaboratory offroffYoung-Ho-Lee wil-host-two NM- AIST PhD students in Korea for a maximum of three months annually. WISE-Futures and Flow Informatics Lab of Prof. Young-Ho Lee has acquired funding to support mobility and research. Specific areas of collaboration include; 1. Renewable energy specifically wind turbines, micro-hydropower, solar and ocean energy 2. Hybrid system design and storage 3.0 CONFERENCES AND JOINT WORKSHOPS 3.1 Mandela week WISE - Futures participated in the Mandela week exhibition which took place at NM- AIST in July 2017. Ifs an annual event hosted by NM-AIST to showcase what NM-AIST and the related projects offers. WISE - Futures takes this as a strategic opportunity for future applicants of Master's and Doctoral and also to attract private sectors to collaborate with the centre in the related focus areas. 3.2 Tanzania Commission for Universities (TCU) Exhibition NM-AIST team participated at the TCU exhibition in Dar es Salaam on July 2017. WISE- Futures participated in this exhibition event in Dar es Salaam. This was the 12th Exhibitions on higher Education, Science, Technology and Innovation held from 26th to 29th July 2017. Both local and foreign Institutions participated in the exhibition. WISE- futures took this opportunity to create awareness to the community on who we are and what we offer in terms of scholarships to students interested to study Masters and PhD level in courses related to Water and Sustainable Energy at Nelson Mandela African Institution of Science and Technology and also how we collaborate with other local, regional and international Partners to provide technical support to address developmental challenges in the areas of Water Resources security, Energy security, water & Sanitation security 4.0 WISE FUTURES SUCCESS AND CHALLENGES: 7 e drivers for thd cntreachievement- have beenthe- strong- faculty -teams, government and university ownership, visionary centre leaders and committed centre staffsthat have attracted international partners as well as additionaldonor funding. Successes usually are accompanied by challenges. As WISE - Futures is only one year old, there are some key challenges. During the year under review, various challenges has impacted the centreactivities: the challenges related to appreciating the differencebetween a "centre of excellence" in short a "centre" and a "project" is still a problem for many people within NM-AIST; this has had some effects in the day to day implementation of WISE - Futures activities. The enrollment of regional and female students is not easy; still less number of applicants responds from this group. Accommodation is becoming a problem to new students, especially for young mothers, as their number is increasing; NM-AIST hostels cannot accommodate all students. Off- campus accommodation is limited as there is no/limited public transport to NM-AIST from Arusha town. Attractive off campus accommodation or even campus accommodation can attract graduate female students as most of them are in the stage of forming families. Government support in this area would be quite helpful to the realization of NM-AIST goal. Dr. Hans C. Komakech Date Centre Leader 8 5;CNTRE, INAINC ING.... The mode of financing of the Centre and its disbursement is based on the achievement of the agreed DLI's.The results-based financing approach is employed to incentivize the ACE institutions to focus on delivering results. The application of results-based financing in the form of DLIs is agreed based on (a) prudence when estimating implementation capacity and adequate time for delivering results; (b) focus on results that are within the control of the implementing agencies; and (c) specification of detailed monitoring and reporting requirements. 6.0 PERFORMANCE MONITORING- Program-for-results financing There are four DLIs defined, with each DLI associated to a Disbursement Linked Result (DLR) and an agreed unit price. The use of DLIs ensures that each Centre receives funding based on its fulfillment of the agreed conditions/requirements. The reporting and verification of the achievement of the DLIs are carried out twice a year through an agreed process (as indicated in the Project Operational Manual (POM)). Once the results are verified by an independent verifier, disbursement follows. During the appraisal, the DLIs and their unit price were carefully examined to ensure that the indicators were ambitious but achievable. DisbursementLinked Indicators are as follows: DLI #1: Institutional readiness DLI #2: Excellence in education and research capacity and development impact DLI#3: Timely, transparent and institutionally reviewed Financial Management DLI#4: Timely and audited Procurement 7.0 FINANCIAL MANAGEMENT AND DISBURSEMENT Up on meeting condition of effectiveness, each ACE receiveddisbursement for DLI/R #1. As a result, during the year under review WISE FUTURES receives DLI/R #1 disbursement with a total value of U$D 1,096,272.00. WISE - Futures allocated USD 851,676for various activities outlined in its Year 1 Implementation Plan.The balance was earmarked as bridging funds for the centre in Year 2. 9 8.0 DISBURSEMENT-ARRANG7MENTS-ADVANCES The Bank may make an advance payment of up to 25 percent of the financing for one or more DLIs, which have not yet been achieved. To request an advance, borrower attaches a "request for advance" letter (annex Band also available in ClientConnection) to thewithdrawal application.When DLIs are achieved, the amount of the advance is recovered from the amount due to be disbursed under such DLIs. The advanced amount recovered by the Bank is then available for additional advances ("revolving advance"). When an advance has been provided and the DLIs are achieved and verified, the advance is always recovered first. If the amount allocated to a DLIthat has beenachieved and verified is larger than the advance, then the Bank will disburse the amount in excess of the advance. The Bank requires that the recipient refund any advances (or portion of advances) if the DLI'shave not been achieved (or have been partially achieved) by the program closing date 9.0 DISBURSEMENT ARRANGEMENTS-DLIs The financing proceeds are disbursed upon the achievement of verified disbursement -linked results specified as DLIs. Such disbursements are not dependent on or attributable to individual transactions or expenditures of the program. Under Component 1, disbursement will be mainly based on reimbursement of certified EEPs supported with achieved DLIs/DLRs and other relevant documentation. 10.0 DISBURSEMENT ARRANGEMENTS-DLIS ACHIEVEMENT PROCESS PforR funds are normally disbursed to the borrower's central treasury accountthat isnormally held at the central bank.The Bank disburses upon achievement of results once these have been verified and confirmed by the Bank. Although the programs financed by PforR financing are underpinned by expenditures, individual disbursements are not attributed to specific transactions. The following is the procedure for documenting and confirming the achievement of results * Borrower notifies the Bank. When a DLI has been achieved (or partially achieved in the case of scalable DLIs), the borrower informs the Bank through a PforR results achievement notification letter and 10 ptovides -evidence in accordance with the verification protocol-as-justificationthat the DLI has been achieved. * Bank's acceptance of DLI achievement. The Bank reviews the documentation submitted by the borrower and decides if the DLI has been achieved, partially achieved, or not achieved. The country director sends an official communication to the borrower informing the borrower of the Bank's decision as to the achievement of the DLI and the level of PforR financing proceeds available for disbursement. Theletter must be attached to the withdrawal application for the corresponding achieved result(s) During the year under review Bank mission to WISE FUTURE has been conducted to establish the magnitude of achievements of DLIs. 11.0 DISBURSEMENT ARRANGEMENTS-WITHDRAWING FINANCING PROCEEDS The process of withdrawal from the financing account, applies to PforR financing. Withdrawal applications are submitted after loan effectiveness, based on provisions of the financing agreement and disbursement letter. Centre shall attach a copy of the official communication to the withdrawal applicationthat confirms that the Bank has accepted the achievement of the results. Centre will require to submit all withdrawal applications electronically using the e- disbursement function in Client Connection. It is recommended that results achieved be grouped and withdrawal requests be submitted every 6 to 12 months.During the year under review the centre is yet to submit the withdrawal applications as necessary checklist for disbursement is yet to be verified. 12.OEXTERNAL AUDIT The National Audit Office (NAO) has been appointed to undertake audit exercise on Financial Statements of the Project and thereafter, to express its opinion as whether they fairly present a true and fair view. NAO has been established under article 143 of the United Republic of Tanzania (URT) and Section 30 (1) (ii) of the Public Finance Act No. 6 of 2001. 11 110FINANCIA1 STATEMENTS FOR THE YEARENUEUS8m JNE 2018 - - The financial statements for the year ended 30t June, 2018 comprises of the following: (i) Statement of Financial Position for the year ended 2018 (ii) Statement of Cash receipts and payments for the year ended 2018 (iii) Statement of Cash flows for the year ended 2018 (iv) Statement of Comparison of Budget versus Actual Amount for year 2018 (v) Notes to the financial statements 14.0 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 2018 ASSET EMPLOYED Note Amount in USD TOTAL NON-CURRENT ASSETS 30.06.2018 Current Assets Inventories Revenue Grant Income Account Receivable and other prepayments Cash and Cash equivalents 2 440,818.40 TOTAL CURRENT ASSETS 440,818.40 TOTAL ASSETS 440,818.40 FINANCED BY: Deferred grant Income 440,818.40 TOTAL FINANCE 440,818.40 LIABILITIES TOTAL GRANT FINANCE: 440,818.40 Prof. Emmanuel J. Luoga Dr. Hans C. Komakech Vice Chancellor-NM-AIST Centre leader NOTE 2 FORM PART OF ACCOUNTS DISCLOSURE 12 15.GSTATEMENT FCASH RECEIPTS AND PAYMENTS FOR THE YEAR 2018 Note Amount in USD CASH RECEIPTS 30.06.2018 Grants Amortization 3 655,453.60 Grants sustainable finance 4 53,168.83 Other Income (recovery and interest) 5 950.96 709,573.39 Total amortized Grants PAYMENTS (as per Centre Plan) To achieve learning Excellence 6 340,039.98 Research Excellence 7 6,482.67 Quality Assurance 8 2,025,00 Equity Dimension 9 - Attracting Regional Academic Staff and Students 10 14,170.22 Engaging National and Regional Academic Partners 11 17,988.69 Attracting National and Regional Sector Partners 12 32,292.06 International academic collaboration 13 6,377.77 Centre Management and Governance 14 290,197.00 Sustainable Financing 15 Monitoring and Evaluation 16 - TotalPayments 709,573.39 Net unspent amount 17 - Prof. Emmanuel J. Luoga Dr. Hans C. Komakech Vice Chancellor-NM-AIST Centre leader NOTE 3 TO 17 FORM PART OF ACCOUNTS DISCLOSURE 13 16(CASHFLOW STATEMENT FOR THE YEAR ENDED 3OLJLUNE,2018 - - - - - - CASHFLOW FROM OPERATING ACTIVITIES Amount in USD 30.06.2018 Cash Receipts Grants disbursement 18 1,096,272.00 Grants sustainable finance 53,168.83 Other Income (recovery and interest) 950.96 Total Grants 1,150,391.79 PAYMENTS TotalPayments 709,573.39 Cash generated from operations Net Cash flow from operating activities CASHFLOW FROM INVESTING ACTIVITIES - Purchase of Software CASHFLOW FROM FINANCING ACTIVITIES Capital Grant Net Increase / (Decrease) in cash and cash Equivalent Cash and Cash Equivalents at beginning of the year - NET INCREASF/DECREASE IN CASH ANDCASH EQUIVALENTS 440,818.40 Prof. Emmanuel J. Luoga Dr. Hans C. Komakech Vice Chancellor-NM-AIST Centre leader NOTE3TO 6 FORM PART OF ACCOUNTS DISCLOSURE 14 17.0 STATEMENT OF COMPARISON OF -HUGETVERSUSACTUALAMOUNT - FOR YEAR 2018 WATER INFRASTRUCTURE AND- SUSTAINABLE ENERGY FUTURES (WISE - FUTURES) Uses of Funds(USD) (Breakdown) for i the period ending - 30/06/2018 Period Objective code Expenditure ending Actual Planned Variance Action plan 1 To achieve Learning excellence 340,039.98 286,850.00 -53,189.98 Review existing MSc and PhD .1 .Programme 16,957.85 18,200.00 1,242.15 Develop New MSc and PhD programmes 1.2 t3MScs and 3Ph.Ds] 28,258.39 19,200.00 (9,058.39) 1.3 To enrol 30 MSc students and 6 PhD. 261,864.30 162,450.00 (99,414.30) 1 4 Develop new short courses 0 26,000.00 26,000.00 1.5 Upgrade existing laboratory facilities 38,993.12 60,000 00 21,006.88 Action_plan 2 Research Excellence 6,482.67 101,000.00 94,517.33 Establish and support research chairs to 2.1 attract grants 230.24 30,000.00 29,769.76 2.2 Engage 2 Postdoctoral Researchers 0 36,00000 36,000.00 2.3 Host annual conference 6,327.67 5,000.00 (1,327.67 2.4 Support to establish IP and Patent Office 0 20,000.00 20,000.00 2.5 Enhancing skills of laboratory staffs - 10,000.00 10,000.00 Action plan 3 Quality Assurance 2,025.00 32,500 00 30,475.00 support the Establishing Quality 3.1 Assurance Unit 0 20,000.00 20,000.00 3.2 Centre performance evaluation 6,904 12,500.00 5,596.00 Action plan 4 Equity Dimension 0 7,000.00 7,000.00 Develop special pre-entry programme for 4.1 special group (inclusive females) - 2,000100 2,000.00 Enrolment drive campaign for special --4.2 group - 5,000.00 5,000.00 Attracting academic staff and students Action plan 5 from the region 14,170.22 12,000.00 -2,170.22 15 5.1 Establish centre website 0 6,000.00 6,000.00 Market research and promotion of centre 5.2 activities in the region 14,579.98 6,000.00 (8,579.98) National and Regional academic Action plan6 partners 17,988.69 27,600.00 9,61131 6.1 Engage guest lecturers from partners 0 7,600.00 7,600.00 Facilitate and promote Students co- 6.2 s-pevision with partners 0 8,000.00 8,000.00 Review/ develop curricula water, 6.3 sanitation, and energy in Key Institutions 11,333.26 12,000.00 666.74 Action9lan7 National and regional sector partners 32,292.06 67,380.00 35,087.94 Increase the number of National and 7.1 regional sector partners 26,636.99 10,000.00 16,636.99) 7.2 Joint research and outreach activities 0 12,000.00 12,000.00 7.3 Mentorship and leadership workshop 5,364.50 45,380.00 40,015.50 Collaboration with international Actionylan 8 academic partners 6,377.77 93,346.00 86,968.23 Engaging international academic partners 8.1 in student's supervision 6,423.00 18,826.00 12,403.00 Engaging international academic partners 8.2 in teaching 3,360.00 69,520.00 . 66,160.00 Solicit research Grants with International 8.3 Partners 2,84177 5,000.00 2158.23 Action plan-9 Management and Governance 290,197.00 197,000.00 -93,197.00 Establishment of centre management and 9.1 governance 40,502.33 87,000.00 46,497.67 Establish and operationalise Centre 9.2 leadership and management 165,782.57 110,000.00 (55,782.57) Action plan 10 Sustainable financing 0 10,000.00 -10,000.00 10.1 Supportdelivery of short courses 0 5,000,00 5,000.00 Support MSc/PhD students to apply for 10.2 additional funding * 0 5,000.00 5,000.00 Action plan 11_ Monitoring and Evaluation 0 Support establishment of monitoring and 11.1 evaluation unit 0 3,000.00 3,000.00 11.2 Centre reports 5,096.69 18,000.00 12,903.31 TOTAL 709,573.39 834,676.00 125,102.61 16 18.0 NOTES-TO THE ACOUNTS FOR THE-FINANCIAL AS-AT 30T'JLNE, 2018- 1.0 Principal accounting policy Appropriate accounting policies have been used and applied consistently, and reasonable and prudent judgment and estimates have been made in the preparation of the Project financial statements for the year ended 30m JUNE, 2018 1.2 Reporting Period Financial statements were prepared to cover for the period of fourteen months from May 2017 to June 2018.The. Centre funds was received in May 2017 records and financials was not fairly enough to warrant closing accounts as at 30t June, 2017. These prompted Management to request waiver for the preparations of the financial statements for the period ended 30t June, 2017 and present review for the 14 month period financial statements ended 30t June 2018. The reporting period has no comparable figures and thus the presented figures may not be comparable. 1.3 Compliance with Donor Policy During the year under review the project complied with donor disbursement guidelines, Procurement guidelines and grant agreement specific and general terms. The project received NO objections to pursue its various missions as stipulated in the annual work plan and budget for the year 2017. 1.4 Basis of Preparation of the financial statements The Financial Statements have been prepared in accordance and in compliance with International Public Sector Accounting Standards (IPSASs) Cash Basis of accounting. 1.5 Foreign currency transactions The project functional currency is the USD and the administrative expenses and capital expenditures are primarily denominated and settled in this currency. Day to day foreign currency transactions are translated into Tanzanian shillings at the rates of exchange prevailing at the dates of the respective transactions whereas assets and liabilities designated in foreign currency as at the statement date are translated using the exchange rates ruling as at year end. Gains or losses arising there from are dealt with in the statement of cash receipts and payments 1.6 Income recognition Grants are recognized as Income when they are received rather than when they are earned (Cash basis) .income comprises the fair value for operational income. 17 Operational income is recognized in the accounting -financial ye-ar-in-whic-h the-services -.-- are rendered. Income is recognized to the extent it is probable that the economic benefits accruing will flow to the Project and it can be measured reliably. 1.7 Transactions and balances Transactions in currencies other than the Tanzania Shilling (TZS) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. All exchange gains or losses are dealt with through the cash receipt and payments. 1.8 Pre-finance and retroactive finance expenditure Retroactive financing is the financing of the eligible centre expenditures incurred and paid by the NM-AIST before the grant agreement is signed. Centre approved retroactive financing, as the project request, to finance eligible expenditures incurred and paid after the project was approved by the centre. During the year under review there was no retroactive finance cost. 2.0 Cash and Cash Equivalents The Centre operates one special accounts in Foreign (U$D) account, the Cash and cash balances as at 30th June 2018 represents deposits of U$D 440,702.06 in Forex account and TZS 265,000.00respectively. Conversional exchange rates as at 30t June, 2018 is TZS 2,277.71/ USD Type of A/C No. Account Currency Amount Unpresentedcheque USD Value Special 0250047604209 Account USD $479,082.84 38,380.78 440,702.06 Special 0150047604200 Account TZS $116.34 - 116.34 TOTAL 440,818.40 3.0 Grants amortization Grants Amortization involves recognition of the part of grant necessary to match them with related costs for which they are intended to compensate as included in the annual procurement plan. During the year under review Centre amortize fund amounted to U$ 655,453.60(please see Annex 1) 18 -41O Grant sustainable Finance-External Funding - - ..-.--- During the year under review WISE-FUTURES hasalso been able to generate external funding. Among proposals submitted for funding by various funders, four (4) of them have succeeded and sum of U$D 53,168-83 was advanced to special account. This includes TWAS USD 5,409.66, UNDSR 25,425.00, UN 3,569.66,Gwanjui-Korea USD 9,176.96,Palladium U$D 9,587.55 5.0 Other Income (grant recovery and interest)-note 5 During the year under review the total grant and recovery amounted to USD 950.96 ,of the total the project received negotiated interest from CRDB amounted to U$D950.96 .The latter was used in line with the requirements and guidelines of project funds. 6.0 To achieve learning Excellence USD340,039.98 Learning excellence falls under objective 1 of the Centre key activity, Key tasks that falls under this category includes, validation workshop with stakeholders, training on process and procedures for International Accreditation, review MSC and PhD students applications, admit student for 2018 -2019 academic year ,paying attention to regional students especially female applicants, conduct strategic need assessment for Professional and Short course Development Trainings, prepare modules for short and Professional courses in water and sanitation; and also practical field training in water, sanitation, and energy . During the year under review USD 340,039.98 was used to achieve learning Excellence related to objective 1 of the Centre Action Plan 2017/2018. (Please see Annex IIfor expenditure analysis) 7.OResearch Excellence USD 6,482.67 Research excellence falls under objective 2 of the Centre key activity, Key tasks that falls under this category includes, Development of Proposals for Grants, Develop Centre Strategic Plan, Purchase Furniture's and office consumables, Travel costs to support staff to travel to attend short term trainings, Pay for travel and other related costs for 3 Postdocs, Offset salary for the 3 Postdoctoral Researchers. During the year under review USD 6,482.67 was used in relation to objective 2 of the Centre Action Plan 2017/ 2018.(Please see Annex IIfor expenditure analysis) 19 8.OQuality Assurance U$D 2,025.00 Quality Assurance falls under objective 3 of the Centre key activity, Key tasks that falls under this category includes, development of NM-AIST and WISE-Futures Quality Assurance Policy, SOPs, Guidelines and Manuals-Together with CREATES, Training of QA/M&E staff. During the year under review USD 2,025 was used to achieve learning Excellence related to objective 3 of the Centre Action Plan 2017/2018.(Please see Annex Ifor expenditure analysis) 9.0 Equity Dimension Equity Dimensionfalls under objective 4 of the Centre key activity, Key tasks that falls under this category includes, Special Needs Programme development costs,Final programme Documents preparation,WISE FUTURES Centre Marketing Logistics. During the year under review there was no costs related to research excellence in relation to objective 4 of the Centre Action Plan 2017/2018. (Please see Annex II for expenditure analysis) 10.0 Attracting Regional Academic Staff and Students USD 14,170.22 Attracting Regional Academic Staff and Students falls under objective 5 of the Centre key activity, Key tasks that falls under this category includes, Motivate local and regional faculty as well as students to work at WISE-FUTURE, Showcase the capacity of WISE-FUTURE to faculty, research scientists and students from the region. During the year under review USD 14,170.22 was used to achieve learning Excellence related to objective 5 of the Centre Action Plan 2017/2018. (Please see Annex II for expenditure analysis) 11.0 Engaging National and Regional Academic Partners USD 17,988.69 Engaging National and Regional Academic Partners falls under objective 6 of the Centre key activity, Key tasks that falls under this category includes, teaching costs associated with guest lecturers, travel for regional partners, workshop/seminar preparation, student's exchange programme with Partners, Support Curricular review/development for ATC,Support Curricular review/development for MUST,Support Curricular review/development for GU,To facilitate with travel and logistics. During the year under review USD 17,988.69 was used to achieve learning Excellence related to objective 6 of the Centre Action Plan 2017/2018.(Please see Annex IIfor expenditure analysis) 20 12.0 Attracting National and Regional Sector Partners USD 32,292.06 Attracting National and Regional Sector Partners falls under objective 7 of the Centre key activity, Key tasks that falls under this category includes, Facilitate Partnership meetings for National and regional sector partners,Research Activities with Industrial partners,Partners logistics and travels,Mentoring orientation workshop and training. During the year under review USD 32,292.06 was used to achieve learning Excellence related to objective 7 of the Centre Action Plan 2017/2018.(Please see Annex II for expenditure analysis) 13.0 International academic collaboration USD 6,377.77 International academic collaboration falls under objective 8 of the Centre key activity, Key tasks that falls under this category includes, facilitate in student supervision costs,facilitate in Teaching costs,facilitate logistics for soliciting grants,facilitate student exchange programme with International Partners. During the year under review USD 6,377.77 was used to achieve learning Excellence related to objective 8 of the Centre Action Plan 2017/ 2018. (Please see Annex IIfor expenditure analysis) 14.0 Centre Management and Governance USD 290,197.00 Centre Management and Governance falls under objective 9 of the Centre key activity, Key tasks that falls under this category includes, facilitate training of Centre support staff,Facilitate National Steering Committee Meetings, Purchasing of the new Centre vehicle (PRADO TXL ENGINE 1KD),Fueling of the vehicle,Fuelling of power generator,WISE-Futures Staff Cost (Centre Manager, M&E/ QA, Procurement Officer, Communication Officer, Adm Assistant, Accountant, Mechanical Technician and One field Technician),To facilitate Leadership training (head of unit ¢re leadership).During the year under review USD 290,197.00 was used to achieve learning Excellence related to objective 9 of the Centre Action Plan 2017/2018.(Please see Annex IIfor expenditure analysis) 15.0 Sustainable Financing USD 0 Sustainable Financing falls under objective 10 of the Centre key activity, Key tasks that falls under this category includes, support the Centre to develop and implement short courses,organize and Participate in Training related to Proposal writing,facilitate costs 21 related-to proposal writing.During the-year -under review there- was no-costs, related to objective 10 of the Centre Action Plan 2017/2018.(Please see Annex IIfor expenditure analysis) 16.OMonitoring and Evaluation - Monitoring and Evaluationfalls under objective 11 of the Centre key activity, Key tasks that falls under this category includes,Develop a Monitoring and Evaluation Framework (shared across all key partners, including equity indicators), Conduct Independent Monitoring and Evaluation.During the year under review there was no costs related to research excellence in relation to objective 11 of the Centre Action Plan 2017/2018. 17.0 Unspent amount USD 0 Surpluses during the year represent the excess of Cash receipt (received grants and allocations) over actual amount spent under eligible payments.During the year under review there was no actual unspent amount. 18.0 Grants disbursement USD 1,096,272.00 Up on meeting condition of effectiveness, each ACE received disbursement for DLI/R #1. As a result, during the year under review WISE FUTURES receivedDLI/R #1 disbursement with a total value of U$D 1,096,272.00. WISE - Futures allocated USD 851,676for various activities outlined in its Year 1 Implementation Plan.The balance was earmarked as bridging funds for the centre in Year 2. 19.0 SCHEDULES During the year under review the following schedules has been disclosed as part of Project accounts disclosure requirements: (i) Schedule of Fixed Asset as at 30ff June,2018 22 FIXEDI ASSET POSITI--NASAT 30H JUNE,2018, - Date Description Date Value in USD Motor vehicle Land Cruiser Hard top V8 25-Jan-18 68,786.00 Paper Shredder 3-Feb-18 674.45 Printer with Scanner and copier_epson M200 (2pcs) 23/1/2018 707.00 Air condition (6) 28/8/2017 9,388.40 Laptop Dell (2) pcs 23/1/2018 4,775.12 - - - - - - - - - -- - - ---- - - -- - - - - - - - - - --- - - - - - - - - - - - - - - - Laptop Dell (Q) pc 23/1/2018 Desktops (2) pcs 23/1/2018 Printer with Scanner and r copier epson L565 (pcs) 23/1/2018 Television Set 23/1/2018 1,349.00 Camera 23/1/2018 1,349.00 r - - - - -- - ------- ---- ------r------------- ------------------- ------- ----- ------ - --- - Spiral Binding Machine 23/1/2018 3,045.82 UPS (2)_pcs 23/1/2018 IP Desk Phone (3) piece and 1 sisco switch :1Ar-18 Laptop Asus 21/7/2017 6,208.74 Laptop Del (3) Pcs 21/7/2017 Furniture and Furniture fittings(Curtains) 5Jul-18 1,502.20 Generator TOTAL 97,78573 Prollmmanuel J. Luoga Dr. Hans C. Komakech Vice Chancellor-NM-AIST Centre leader 23 ' .2..LST OF.ANNEXES - . . . . . . LIST OF ANNEXES * Annual Work Plan 2017 * Expenditure per disbursement link indicator * Descriptions of procured assets. * Revised Project Annual Procurement Plan 24 ~~21iJ RIAL BAANCE--FOR-THE-YvEAR,ENDE-30ThtJLNE-2018----- 2018 Activity Debit Credit Balance transfer 2018 Grants Disbursement 1,096,272.00 2018 Grant sustainable finance 53,168.83 2018 Other Income 950.96 2018 Other Income(Grant Recovery) 2018 To achieve learning Excellence 340,039.98 - 2018 Research Excellence 6,482.67 - 2018 Quality Assurance 2,025.00 2018 Equity Dimension Attracting Regional Academic Staff 2018 and Students 14,170.22 Engaging National and Regional 2018 Academic Partners 17,988.64 Attracting National and Regional 2018 Sector Partners 32,292.06 International academic 2018 collaboration 6,377.77 Centre Management and 2018 Governance 290,197.00 2018 Sustainable Financing 2018 Monitoring and Evaluation - 2018 Balance to Account as at 30.06.2018 440,818.40 2018 Balance to Account 30.06.2018 I Total 1,150,391.79 1,150,391.79 Prof. Emmanuel J. Luoga Dr. Hans C. Komakech Vice Chancellor-NM-AIST Centre leader 25 CREDITORS AGE ANALYSIS WISE - Futures ACCOUNTS PAYABLE AS AT 30.06.2018 invoice Invoice Invoice amount amount ( Past Current Supplier date (Usd) TZS) Due Due Last Total :Days Days Paym e nt Due 0-60 61-180 Goj Tech Ltd 06/11/2018 1,790,650 19.00 - - Charleston Travel Ltd 24/5/2018 443350 37.00 - Charleston Travel Ltd 14/5/2018 384,400 47.00 - - - Delta Industrial Equipment Ltd 27/10/2017 8,527 - - - - _ TOTAL 8,527 2,618,400 - 103.00 - --- 26 DECLARATION OF TUE HElD OF7FINANCE/AGCOUNTING-OF -lsWSi(NAME OF REPORTING ENTITY) The National Board of Accountants and Auditors (NBAA) according to the power confered under the Auditors and Accountants (Registration) Act. No. 33 of 1972, as amended by Act No. 2 of 1995, requires financial statements to be accompanied with a declaration issued by the Head of Finance/Accounting responsible for the preparation of financial statements of the entity concerned. It is the duty of a Professional Accountant to assist the Board of Directors/Governing Body/Management to discharge the responsibility of preparing financial statements of an entity showing true and fair view of the entity position and performance in accordance with applicable International Accounting Standards and statutory financial reporting requirements. Full legal responsibility for the preparation of financial statements rests with the Board of Directors/Governing Body as under Directors Responsibility statement on an earlier page. I (Name) e.. . .:..A. being the Head of Finance/Accounting of ............. (Name of reporting entity) hereby acknowledge my responsibility of ensuring that financial statements for the year ended ............... have been prepared in compliance with applicable accounting standards and statutory requirements. I thus confirm that the financial statements give a true and fair view position of ..0(13 5.J:2SA ..( Name of reporting entity)) as on that date and that they have been prepared based on properly maintained financial records. Signed by ......... l............. 1.................. Position: ......... ... ..... . ..... NBAA Membership No.: ...P.A .7 ....... D ate: ... - .... ...... .