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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: ocag@nao.go.tz 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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Office of the Controller and Auditor General AR/CG/BHSP/2016/2017
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.
Office of the Controller and Auditor General AR/CG/BHSP/2016/2017
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, 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 .
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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: ocag@nao.go.tz
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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THE UNITED REPUBLIC OF TANZANIA
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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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 - 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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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 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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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
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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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
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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THE UNITED REPUBLIC OF TANZANIA MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ
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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THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30TH JUNE, 2017
(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
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Accounting Officer
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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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THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ
STATEMENT OF CHANGES IN NET ASSETS/EQUITY
FOR THE YEAR ENDED 30TH JUNE, 2017
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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THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30TH JUNE, 2017
(Classification of Expense by Nature)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts
Receipts
Payments
Wages, salaries and employee benefits
Grants and transfer payments
Supplies and consumables used
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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THE UNITED REPUBLIC OF TANZANIA
MINISTRY OF HEALTH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 - TZ
STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS
FOR THE YEAR ENDED 30TH JUNE, 2017
(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
Grants and transfer payments
Supplies and consumables used
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
5
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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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
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.
1 I
THE UNITED REPUBLIC OF TANZANIA
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 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
12
,
'
THE UNITED REPUBLIC OF TANZANIA
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
FOR THE YEAR ENDED 30TH JUNE, 2017
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
•
THE UNITED REPUBLIC OF TANZANIA MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
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
,
'
THE UNITED REPUBLIC OF TANZANIA
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
FOR THE YEAR ENDED 30TH JUNE, 2017
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
MINISTRY OF HEAL TH, COMMUNITY DEVELOPMENT, GENDER, ELDERLY AND THE CHILDREN (VOTE 52)
BASIC HEAL TH SERVICES PROJECT: IDA CR. 5029 . TZ
STATEMENT OF PHYSICAL PERFORMANCE
FOR THE YEAR ENDED 30TH JUNE, 2017
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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