REPORT OF THE CONTROLLER AND AUDITOR...

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THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE

REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE AUDIT OF FINANCIAL STATEMENTS OF BASIC HEAL TH SERVICES

PROJECT IDA CREDIT NUMBER 5029 FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2017

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: [email protected] Website: www. nao. go. tz

December, 2017 AR/CG/BHSP/2016/2017

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TABLE OF CONTENTS

Abbreviations ................................... . ...... . ................. . ........ . .... . .......... iii

1.0 GENERAL INFORMATION .............................................. .... ............... . 1

1 . 1 . Mandate ..................................................................................... 1

1.2. Vision, Mission and Core Values ........................................................ 1

1.3. Audit Objectives ........................................................................... 2

1.4. Audit Scope .............................. . .......... . .. . .................................... 2

1.5. Audit Methodology ........................................................................ 2

2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ............. 3

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Office of the Controller and Auditor General AR/CG/BHSP/2016/2017

Abbreviations CAG Controller and Auditor General

ISSAls International Standard of Supreme Audit Institutions

IPSAS International Public Sector Accounting Standards

PAA Public Audit Act No.11 of 2008

PAR Public Audit Regulation, 2009

MDAs Ministries, Departments and Agencies

PAC Public Accounts Committee

PF A Public Finance Regulations, 2009

PPA Public Procurement Act, 2011

PPR Public Procurement Regulations, 2013

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1.0 GENERAL INFORMATION

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. ./ Excellence: We are professionals providing high quality audit services based on standards

and best practices . ./ Integrity: We observe and maintain high standards of ethical behaviour, rule of law and a

strong sense of purpose . ./ People focus: We value, respect and recognize interest of our stakeholders . ./ Innovation: We are a learning and creative public institution that promotes value added

ideas within and outside the institution . ./ Results Oriented: We are an organization that focuses on achievement based on

performance targets . ./ 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.


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, 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 Basic Health Services Project (BHSP).

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 Basic Health Services Project (BHSP)

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 Basic Health Services Project (BHSP).

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.

• Follow up on the implementation of the previous year's audit findings and recommendations

2 Office of the Controller and Auditor General AR/CG/BHSP/2016/2017

2.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL

Permanent Secretary, Ministry of Health, Community Development, Gender, Elderly and Children, P.O. Box 747 DODOMA.

REPORT ON THE AUDIT OF FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2017

Opinion I have audited the Financial Statements of Basic Health Services Project (BHSP) which comprise the Statement of Financial Position as at 30th June, 2017, and the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies set out in the audited financial statement

In my opinion, the accompanying Financial Statements of the Basic Health Services Project (BHSP) present fairly in all material respects, the Financial Position of the Project as at 30th June, 2017, its Financial Performance, and its Cash Flows for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS) Accrual 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 Basic Health Services Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to my audit of the financial statements in Tanzania, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Information Other than the Financial Statements and Auditor's Report Thereon Management is responsible for the other information. The other information comprises of the Director's Report and the Declaration by the Head of Finance but does not include the financial statements and our auditor's report thereon .

3 Office of the Controller and Auditor General AR/CG/BHSP /2016/2017

My opinion on the financial statements does not cover the other information and I do not express 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 inconsistent 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 on the other information 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.

Key Audit Matters This section of my auditor's report is intended to describe the matters selected from those communicated with those charged with governance that, in my professional judgment, were of most significance in my audit of the financial statements. I have

determined that there are no key audit matters to report.

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 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 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.

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.

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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, Basic Health Services Project (BHSP) procurement transactions and processes have generally complied with the requirements of the Public Procurement Act No. 7 of 2011 and its underlying Regulations of 2013.

Benjamin Ma uri Magai Ag. CONTROLLER AND AUDITOR GENERAL

29TH December, 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: [email protected]

Copy to: Chief Secretary, State House, P.O. Box 9120, 1 Barack Obama Road, 11400 DAR ES SALAAM.

Permanent Secretary and Paymaster General, Ministry of Finance, P.O. Box 9111 , 1 Madaraka Street 11468 DAR ES SALAAM.

Country Director, World Bank, P.O. Box 2054, DAR ES SALAAM.

Office of the Controller and Auditor General AR/CG/BHSP /2016/2017 5

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THE UNITED REPUBLIC OF TANZANIA

MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN -

(VOTE 52)

BASIC HEAL TH SERVICES PROJECT

IDA CREDIT NUMBER 5029 - TZ

FINANCIAL STATEMENTS FOR THE YEAR ENDED

JOTH JUNE 2017

Ministry of Health, Community Development, Gender, Elderly and The Children 6 Samora Mschel Avenue P. 0. Box 9083 11478 Dar es Salaam Tel: +255-51-2120261fl Fax:+255-1339951/2116683

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MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)

BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE, 2017

TABLE OF CONTENTS

Contents

Statement by the Permanent Secretary

Statement of Management Responsibility

Declaration of the Head of Finance/Accounting

Commentary on the Financial Statements

Statement of Financial Position

Statement of Financial Performance

Statement of Changes in Net Assets/Equity

Cash Flow Statement

Statement of Comparison of Budget and Actual Amounts

Notes on the Financial Statements

Statement of Physical Performance

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THE UNITED REPUBLIC OF TANZANIA MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)

BASIC HEAL TH SERVICES PROJECT - IDA CREDIT NO. 5029 - TZ

STATEMENT BY THE PERMANENT SECRETARY FOR THE YEAR ENDED 30TH JUNE, 2017

1. Introduction

The objective of the project was to assist the Government in improving the geographical access and use of basic health services across districts and enhancing the quality of health services being delivered .

2. Financing

3.

The project has been closed .

It was financed by the International Development Association (IDA) under the Financing Agreement signed on 17th January, 2012 between the United Republic of Tanzania and the Association; for the period of 5 years to 3Qth October, 2016 with total financing of SOR 63.10 million equivalent to USO 100 million . 85% of the funds was disbursed through the health basket fund and 15% outside the basket fund .

Project Implementation and Disbursement Arrangements

The project was jointly implemented by the Ministry of Health , Community Development, Gender, Elderly and the Children and the President's Office Regional Administration and Local Government. The Permanent Secretaries of the 2 Ministries were responsible for the overall coordination , monitoring , and supervision of project activities.

The project had 4 USO designated bank accounts at Bank of Tanzania to facilitate the disbursement of project funds for the 2 Ministries:

Designated Account A

The account was for the Health Basket Fund . It received fund ing from various Development Partners including the International Development Association . The Health Basket Fund has separate financial statements and audit arrangements .

Designated Account B

The account was for non-basket funds earmarked for capacity building at local level. The account was managed by President's Office Regional Administration and Local Government and has separate financial statements and audit arrangements.

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STATEMENT BY THE PERMANENT SECRETARY - continues FOR THE YEAR ENDED 30TH JUNE, 2017

Designated Account C

The account was for non-basket funds earmarked for central level activities managed by Ministry of Health, Community Development, Gender, Elderly and the Children .

Designated Account D

The account was for non-basket funds earmarked for central level activities managed by President's Office Regional Administration and Local Government. It has separate financial statements and audit arrangements .

4. Closing of the Project

The project was closed on 3Qth October, 2016.

The closure period of July - October, 2016 was used to finalize the contracts that were remaining by 3Qth June, 2016.

Detailed information on the achievement of the project objectives, the challenges and lessons learned is available in the project implementation completion report .

cy>,J;()..AJr·--_ _ / Accounting Officer

28th September, 2017

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STATEMENT OF MANAGEMENT RESPONSIBILITY FOR THE YEAR ENDED 30TH JUNE, 2017

Section 25(4) of the Public Finance Act No 6 of 2001 requires the management to prepare financial statements for each financial year, which give a true and fair view of revenue and expenses of the reporting entity, as at the end of the financial year. It also requires management to ensure the reporting entity keeps proper accounting records, which disclose with reasonable accuracy at any time the financial position of the reporting entity. They are also responsible for safeguarding the assets of the reporting entity.

The management accepts the responsibility for the annual financial statements, which have been prepared using appropriate accounting policies, supported by reasonable and prudent judgments and estimates, in conformity with the accrual basis of accounting under the International Public Sector Accounting Standard (IPSAS) and in the manner required by Section 25(4) of the Public Finance Act No 6 of 2001 as was amended in 2004.

The management further accepts the responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements as well as putting in place sound systems of internal financial control. The management is also responsible for safeguarding the assets of the reporting entity and hence, taking reasonable steps for the prevention and detection of fraud, error and other irregularities.

To the best of our knowledge, the system of internal control has operated adequately, throughout the reporting period , and that, the records and underlying accounts provide a reasonable basis for the preparation of the financial statements for 2016/2017 financial year.

We therefore accept the responsibility for the integrity of the financial statements, the I information it contains and its compliance with the Public Finance Act No 6 of 2001 , as

amended in 2004 and as per instructions from the Treasury.

Procurement of goods, works, consultancy, and non-consultancy services to the extent that they are reflected in these financial statements, was done in accordance with the Public Procurement Act No. 7 of 2011

Nothing has come to the attention of the management to indicate that the Ministry of Health , Community Development, Gender, Elderly and the Children will not remain a going concern , for at least the next twelve months, from the date of this statement.

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Accounting Officer

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281h September, 2017 Date

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DECLARATION OF THE HEAD OF FINANCE/ACCOUNTING FOR THE YEAR ENDED 30TH JUNE 2017

The National Board of Accountants and Auditors (NBAA) according to the power conferred 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 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 Management as under Management Responsibility statement on an earlier page.

I f)Atv ,fc dJ N ~u.ltfrr/o..;b · 'th H d f P . t f th M'. t f H Ith .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. e1ng e ea o roJec s o e 1n1s ry o ea , Community Development, Gender, Elderly and the Children hereby acknowledge my responsibility of ensuring that financial statements for the year ended 30th June, 2017 have been prepared in compliance with appl icable accounting standards and statutory requirements .

I thus confirm that the financial statements give a true and fair view position of the Basic Health Services Project that was being managed by the Ministry of Health , Community Development, Gender, Elderly and Children (Vote 52) as on that date and that they have been prepared based on properly maintained financial records.

Signed by: DANIEL JOHN MHANDO

A - , Position : ..... ......... ~.~-~-'--~-~. : ............ ... .. .. .... .

NBAA Membership No.GA 2266

Date: 281h September, 2017

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COMMENTARY ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2017

1. Scope of the financial statements The financial statements present the results of operations of non-basket funds for central level activities managed by the Ministry of Health , Community Development, Gender, Elderly and the Children under designated account C; fo r the 4 months period of 1st July, 2016 to 3Qth October, 2016 .

2. Physical implementation During the 4 month period of 1st July 2016 to 3Q1h October, 2016, the project managed to complete the activities that were remaining by 3Qth June, 2016 . The project utilize TZS 796,862,588.10 and TZS 6,929 ,039.87 (equivalent to USO 3,099 .77) was refunded to the World Bank.

3. Project assets and liabilities:

The project closed with no outstanding liabilities . ,

The project was mainstreamed within the Ministry. The assets procured are being used by the Ministry and other were transferred to Regional Hospitals supported by the project. According to the Financing Agreement between the Government and the International Development Association , the assets once procured in accordance with the approved procurement plan, becomes the property of the Government. Thus, such assets including the motor vehicles ; furniture and office equipment will continue to be used by the Ministry and the supported Regional Hospitals in the provision of health services.

In the financial statements the assets have been shown as transfer to the Ministry and to the hospitals in order to close the project accounts .

4. Auditors The Controller and Auditor General of the United Republic of Tanzania is the Statutory Auditor of the project pursuant to the provisions of Article 143 of the Constitution of the United Republic of Tanzania of 1977 (revised 2005), Sections 26 - 37 of the Public Finance Act No. 6 of 2001 (revised 2004) , the Public Audit Act No. 11 of 2008 and the Project Financing Agreement.

)-, J 0J~G----------Accou'nting Officer 28th September, 2017

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STATEMENT OF FINANCIAL POSITION

AS AT 30TH JUNE, 2017

2016/2017 2015/2016

Note TZS TZS

ASSETS

Current Assets

Cash and cash equivalents 10 732 ,821 ,234.19

Receivables 11 68,049,213.00

Inventories

Prepayments

Total Current Assets 800,870,447.19

Non - Current Assets

Property, Plant and Equipment 16 1,546,849,836.10

Total Non - Current Assets 1,546,849,836.10

TOTAL ASSETS 2,347,720,283.29

LIABILITIES

Current Liabilities , Payables

Deferred income - revenue 17 (0.01) 800,870,447.19

Total Current Liabilities (0.01) 800,870,447.19

Non-Current Liabilities

' Deferred income - capital 18 1,546,849 ,836.10

Total Non-Current Liabilities 1,546,849,836.10

TOTAL LIABILITIES (0.01) 2,347,720,283.29

NET ASSETS/EQUITY 0.01

Capital Contributed by:

Taxpayer's funds

Accumulated surplus/ (deficit) 0.01

NET ASSETS/EQUITY 0.01

I 28th September, 2017

Accounting Officer Date

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STATEMENT OF FINANCIAL PERFORMANCE


(Classification of Expense by Nature)

REVENUE

Amortization of deferred income - revenue

TOTAL REVENUE

EXPENSES AND TRANSFERS

Wages, salaries and employee benefits

Grants and transfer payments

Supplies and consumables used

Routine maintanance

Minor Works

TOTAL EXPENSES AND TRANSFERS

Surplus/(deficit) for the period

/ 9::,J; 0- 11~~

Accounting Officer

17

6

20

7

8

9

2016/2017

TZS

803 ,791,627.97

803,791,627.97

6,929,039 .87

771 ,384,070 .90

25,478,517.20

803,791 ,627.97

2015/2016

TZS

3,774 ,195,276.19

3,774,195,276.19

3,688 ,024 ,914.19

84 ,542,362 .00

1,628,000.00

3,774,195,276.19

28Th September, 2017

Date

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STATEMENT OF CHANGES IN NET ASSETS/EQUITY


Balance at 1st July, 2016 brought forward

Changes in accounting policy

Restated balance

Changes in net assets/equity for 2016/2017

Capital funds received

Surplus/(deficit) for the period

Balance at 30th June, 2017 carried forward

Balance at 1st July, 2015 brought forward

Change in net assets/equity for 2015/2016

Capital funds received

Surplus/( deficit) for the period

Balance at 30th June, 2016 carried forward

Accounting Officer

Note Taxpayers Funds

Accumulated Surplus/(Deficit)

Total

28Th September, 201 7

Date

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CASH FLOW STATEMENT


(Classification of Expense by Nature)

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Receipts

Payments

Wages, salaries and employee benefits



Routine maintanance

Minor Works

Receivables

Payables

Net cash flows from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment

Net cash flows from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

Repayment of borrowings

Net cash flows from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Inter-accounts transfer plus year end adjustments (excluding non cash items)

5

6

20

7

8

9

11

19

14

Exchange gain/(loss) 15

Cash and cash equivalents at the end of the period

2016/2017

TZS

71 ,850,239.13

(6,929,039.87)

(771 ,384,070.90)

(25,478,517.20)

(731,941,388.84)

(731,941,388.84)

732,821 ,234.18

(879,845.35)

(0.01)

2015/2016

TZS

1,457,113,315.22

(3 ,688,024,914 .19)

(84 ,542,362 .00)

(1,628,000.00)

(68 ,049,213.00)

(39,000,000.00)

(2,424,131,173.97)

(502,956,459.80)

(502,956,459.80)

(2,927,087,633.77)

3,693,067,076.00

(147,069,415.62)

113,911 ,207.57

732,821,234.18

28Th September. 2017

Date

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MINISTRY OF HEALTH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)


STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS


(Classification of Payments by Nature)

RECEIPTS

Taxes

Fees, fines , penalties and licenses

Revenue from exchange transaction

Receipts

Balance at the Beginning of the year

Inter-accounts transfer plus year end adjustments

Exchange gain/(loss)

Total receipts

PAYMENTS

Wages . salaries and employee benefits



Routine maintanance

Minor Works

Purchase of property, plant and equipment

Payables

Total payments

NET RECEIPTS/(PA YMENTS)

C O I I

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I .1 y ,_'J)!} '--/ I ·-- . 1 -·

Accounting Officer

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6

20

7

8

9

14

19

Budgeted Amounts

Original

781,647,866.45 781 ,647,866.45

25,000,000.00 25,000,000.00

. 806,647,866.45 806,647,866.45

Actual Amounts

71,850,239.13

732,821 ,234.19

879,845.35

803,791,627.97

6,929,039.87

771,384,070.90

25,478,517.20

803,791 ,627.97

28Th September, 2017

Date

Difference: Final Budget and Actual

(71 ,850,239.13)

732,821 ,234.19

879,845.35

(805,551,318.67)

(6 ,929,039.87)

10,263,795.55

(478,517.20)

2,856,238.48

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NOTES ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2017

1. Basis of preparation

The financial statements for the period of July - October, 2016 have been prepared in accordance with the Public Finance Act No. 6 of 2001 (revised 2004) and comply with the accrual basis of accounting under the International Public Sector Accounting Standards (IPSAS).

Procurement of goods, works , consultancy and non-consultancy services to the extent that they are reflected in these financial statements have been done in accordance with the Public Procurement Act No. 4 of 2004 and the World Bank procurement guidelines.

The financial statements are presented in Tanzanian Shillings (TZS) , which is the project's functional and presentation currency.

, 2. Authorization date

The financial statements were authorized for issue on

Accounting Officer

3. Reporting entity The financial statements are for the Basic Health Services Project - IDA Credit number 5029 -TZ.

4. Summary of significant accounting policies

Transactions and balances Foreign currency transactions are translated into Tanzania shillings using Bank of Tanzania exchange rates prevailing at the dates of the transactions. Foreign exchange gain or loss resulting from translation of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of financial performance.

Property, plant and equipment

The project has been closed .

The assets worth TZS 1,546,849,836 .10 have been transferred to the Ministry and Regional Hospitals. These assets will continue to be used by the Ministry and the hospitals in the provision of health services. Such assets have been shown in the financial statements as being transferred to the Ministry and hospitals in order to close the project accounts.

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MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE


NOTES ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2017

2016/2017 2015/2016

TZS TZS

5 Receipts

Receipts from IDA 1.457, 113,315.22

Other receipts 71 ,850,239.13

Total 71,850,239.13 1,457,113,315.22

6 Wages, salaries and employee benefits

Salaries 39 ,000,000.00

39,000,000.00

7 Supplies and Consumable used

Consultancy services 285,000,000.00 928,187,969.00

Per - Diem Domestic 330,559,463.00 1,781 ,338,740.00

Per - Diem Foreign 15,334,810.00

Ground Transport 1,264 ,800 .00 9,060,000.00

Air Tickets 1,040,000.00 16,159,438 .53

Conference Hall Charges 1,600,000.00 83,792 ,000 .00 , Printing 4,672,600.00 94,495,939.80

Stationaries 14,763,247.00 64 ,608 ,409.84

Refreshments 40,009,000 .00 146,658,700.00

Diesel 31,772,738.67 262 ,849,742.10

Communication 12,800,000.03 26,887,201 .07

' Tuition Fees 41 ,820,000 .00

Learning Materials 1,600,000.00

Storage Charges 47,662,581.90

Advertisements 1,532 ,962.54

Hospital Supplies 212,170,000.00

Bank Charges 239,640.30 1,529,000.71

Total 771,384,070.90 3,688,024,913.59

8 Routine maintenance

Vehicle Maintanance 25,478 ,517 .20 84 ,542 ,362.00

Total 25,478,517.20 84,542,362.00

9 Minor works

Minor works 1,628,000.00

Total 1,628,000.00

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MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE

BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 · TZ

NOTES ON THE FINANCIAL STATEMENTS· continues


10 Cash and cash equivalents

Bank Balance in project USO Account (BOT)

Bank Balance in project TZS Account (SCB)

Total

11 Receivables

Outstanding imprests

Advances to Regions

Total

12 Inventories

13 Prepayments

Tuition Fees

Training Allowances

Total

2016/2017

TZS

14 Property, Plant and Equipment (Direct procument by the Project)

Buildings

Plant and Machinery

Motor Vehicles

IT Equipment

Furnitures and Fixtures

Office Equipment

Total

15 Exchange Gain/Loss

Exchange Gain/Loss

Total

(879,845.35)

(879,845.35)

2015/2016

TZS

724,687 ,588.32

8,133,645.87

732,821 ,234.19

68 ,049,213.00

68,049,213.00

78,599 ,999 .10

375,227 ,300.70

17,741,200.00

31 ,387 ,960.00

502,956,459.80

113,911 ,207.57

113,911,207.57

13

•


BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2017

16 Property, Plant and Equipment

Buildings Plant and Motor Computer Furniture and Office Total Machinery vehicles Equipment Fixtures Equipment

TZS TZS TZS TZS TZS TZS TZS 30th June 2017 Cost At 1 July 2016 78,599,999.10 893,177,056.30 525,943,620.70 17,741,200.00 31 ,387,960.00 1,546,849,836.10

Additions Transfers (add/deduct) (78,599,999.10) (893,177,056.30) (525,943,620.70) (17 ,741,200.00) (31,387,960.00) (1 ,546,849,836.10)

Disposal

At 30th June 2017

Depreciation

At the beginning of the year Charge for the year At the end of the year

Net Book Value ==

30th June 2016

Cost

At 1 July 2015 275,946,000.00 150,716,320.00 426,662,320.00

Additions :

Direct procurement by the 14 78,599,999.10 375,227,300.70 17,741 ,200.00 31 ,387,960.00 502,956,459.80 Project Indirect procurement 617,231 ,056.30 617,231 ,056.30 through UNOPS

Transfers (add/deduct)

Disposal

At 30th June 2016 78,599,999.10 893,177,056.30 525,943,620.70 17,741,200.00 31,387,960.00 1,546,849,836.10

Depreciation

At the beginning of the year

Charge for the year

At the end of the year

Net Book Value 78,599,999.10 893,177,056.30 525,943,620.70 17,741,200.00 31,387,960.00 1,546,849,836.10

1A

,

'


MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE ~~ ·

BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 • TZ

NOTES ON THE FINANCIAL STATEMENTS· continues


17 Deferred Income - Revenue

Balance at the beginning of the year

Income received during the year

Exchange gain/(loss)

Less:

Capital expenditure

Inter-accounts transfer plus year end adjustments (including non cash items)

Total

Amortisation of Deferred Income

Revenue expenditure

Balance at the end of the year

Represented By:

Cash and bank balance

Advances

18 Deferred Income - Capital

Balance at the beginning of the year

Income received during the year

Recategorization of income to revenue

Income amortized during the year

Transfers

Balance at the end of the year

19 Payables

Salaries

Total

20 Transfers

Refund of unutilized balance to IDA

Total

2016/2017

TZS

800,870,447.18

3,801,026.13

(879,845 .35)

803,791,627.96

(803,791,627.97)

0.01

1,546,849,836.10

(1 ,546,849 ,836.10)

6,929,039.87

6,929,039.87

2015/2016

TZS

3,720,367,436.72

1,457,113,315.22

113,911 ,207.57

(502,956,459.80)

(213,369,776.34)

4,575,065,723.37

(3,774,195,276.19)

800,870,447.18

732,821 ,234.19

68,049,213.00

800,870,447.19

426,662,320.00

1,120,187,516.10

1,546,849,836.10

15

• • THE UNITED REPUBLIC OF TANZANIA


BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 . TZ

STATEMENT OF PHYSICAL PERFORMANCE


S/N Activity Budget Expenditures

1 Funds reallocated to support the Star Rating Assessment 542,886,866.45 143,549,000.00 implementation of the star rating Community Score Card 245,640,000.00 assessment; community score card; developing a capacity building plan for Developing a capacity building plan for the 33,000,000.00

the SPHC4RP and adminstrative costs SPHC4RP

Administrative costs 122,673,508.10

Sub· Total 544,862,508.10

2 Develop and rollout of the Hospital Management Information System for two regional 263.761 ,000.00 252,000,000.00 referral hospitals.

TOTAL 806,647,866.45 796,862,508.10

Variance Pysical Performance

(1 ,975,641 .65) Balance of the funds remained at 30th June, 2016 have been used to finalize the contracts that were remaining at 30th June, 2016 and to conduct star rating assessment in Kilimanjaro region and

11 ,761 ,000.00 Community Score Card in Kil imanjaro and Pwani regions.

9,785,358.35

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