THE UNITED REPUBLIC OF TANZANIA
NATIONAL AUDIT OFFICE
PRESIDENT'S OFFICE REGIONAL ADMINISTRATION AND LOCAL
GOVERNMENT
BOOST PRIMARY STUDENT LEARNING PROGRAM
REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE
FINANCIAL AND COMPLIANCE AUDIT FOR THE FINANCIAL YEAR ENDED
30 JUNE 2023
Controller and Auditor General,
National Audit Office,
Audit House,
4 Ukaguzi Road,
P.O. Box 950,
41101 Tambukareli,
Dodoma, Tanzania.
Tel: 255 (026) 2161200,
Fax: 255 (026) 2117527,
E-mail: ocaq@nao.ao.tz
Website: www.nao.,go.tz
December 2023 AR/LG/PORALGIBOOST/2022/23
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ABOUT THE NATIONAL AUDIT OFFICE
Mandate
The statutory mandate and responsibilities of the Controller and Auditor-General are provided
for under Article 143 of the Constitution of the United Republic of Tanzania of 1977 and in
Section 10 (1 ) of the Public Audit Act, Cap 418 [R. E 2021 ].
Mission
To provide high-quality amlit services
through the ffxternisatiors of functians that
enhance accountability and transparency in
the management of pubUic resources.
Vision
NAO m iin To be a credible and modern Supreme
Audit Institution with high-quality audit
viio & Mot services for enhancing pubLic confidence.
Motto
Modernising External Audit for Stronger
Public Confidence
indepndenc andProfessional
objectivity cmeec
We deliver high-quality audit
We are an impartial public services based an
institution. independently appropriate profesioral
offering high-quality audit knowledge. skills, and best
services to our clients in an practices
unbiased manner.
Teamwork Spirit Integrity
We kalu and work We observe and maintain high
togelhe with internal VALUES ethical standards and rules of
and exteral law in the delivery of audit
stakeholders. sLrvcens.
Results-Oriented 1C o Creativity and
Missionio
We focusp onl Ity atice
achrevements of reliable, We encourage, create,
timely, accurate, useful, and innovate value-
rd clear performanct-l adding ideas f l
improvement of audit
services ice.
Q This audit report is intended to be used by President's Office Regional Administration and
Local Government and may form part of the annual general report, which once tabled to National
Assembly, becomes a public document; hence, its distribution may not be limited.
Controller and Auditor General AR/LG/PORALGIBOOSTI2022/23
TABLE OF CONTENTS
ABBREVIATIONS ............................................... . . . . . . . . . . - a *
1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL .........1I
1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS............................. 1
1.2 REPORT ON COMPLIANCE WITH LEGISLATIONS.................................... 4
2.0 INTRODUCTION .......................................................................... 1
3.0 OVERVIEW OF THE PLANNED BUDGET, FUNDS RECEIVED AND EXPENDITURE..4
4.0 COMMENTARY TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30
JUNE 2023 .............................................23................................ 7
5.0 STATEMENT OF MANAGEMENT RESPONSIBILITY ON THE FINANCIAL
STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023.............................. 11
6.0 STATEMENT OF DECLARATION BY THE HEAD OF FINANCE AND ACCOUNTS
FOR THE PERIOD ENDED 30 JUNE 2023 ............................................ 12
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 2023 ........ 19
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Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
ABBREVIATIONS
BOOST Boost Primary Student Learning
CAG Controller and Auditor General
DILI Disbursement- Linked Indicator
DLR Disbursement- Linked Result
FA Financing Agreement
IPSAS international Public Sector Accounting Standards
ISSAls International Standard of Supreme Audit Institutions
IPF Investment Project Financing
MoEST Ministry of Education, Science, And Technology
NPIT National Project Implementation Team
PO-RALG President Office - Regional Administrative and Local Government
PSC Program Steering Committee
PAD Project Appraisal Document
PPR Public Procurement Regulations
Controller and Auditor General ARuGdORALGIBOOST/2022/23
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1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL
Permanent Secretary,
President's Office - Regional Administration and Local Government,
Government City- Mtumba,
P.O. Box 1923,
41185 DODOMA
1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS
Unqualified Opinion
I have audited the financial statements of the BOOST Primary Student Learning Program
implemented by the President's Office - Regional Administration and Local Government,
which comprise the statement of financial position as at 30 June 2023, the statement of
financial performance, the statement of changes in net assets and cash flow statement,
and the statement of comparison of budget and actual amounts for the year then ended,
as well as the notes to the financial statements, including a summary of significant
accounting policies.
In my opinion, the accompanying financial statements present fairly, in all material
respects, the financial position of the BOOST Primary Student Learning Program
implemented by the President's Office - Regional Administration and Local Government as
at 30 June 2023, and 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 the manner required by the Public Finance Act, Cap. 348.
Basis for Opinion
I conducted my audit in accordance with the International Standards of Supreme Audit
Institutions (ISSAls). My responsibilities under those standards are further described in the
section below entitled "Responsibilities of the Controller and Auditor General for the Audit
of the Financial Statements". I am independent of the BOOST Primary Student Learning
Program implemented by the President's Office - Regional Administration and Local
Government in accordance with the International Ethics Standards Board for Accountants'
Code of Ethics for Professional Accountants (IESBA Code) together with the National Board
of Accountants and Auditors (NBAA) Code of Ethics, 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.
Key Audit Matters
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Key audit matters are those matters that, in my professional judgment, were of most
significance in my audit of the financial statements of the current period. I have
determined that there are no key audit matters to communicate in my report.
Other Information
Management is responsible for the other information. The other information comprises the
Report of those charged with Governance, the Statement of Management Responsibility,
Declaration by the Head of Finance, but does not include the financial statements and my
audit report thereon which I obtained prior to the date of this auditor's report.
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 I obtained prior to
the date of this audit report, I conclude that there is a material misstatement of this other
information, I am required to report that fact. I have nothing to report in this regard.
Responsibilities of 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 IPSAS 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.
Responsibilities of the Controller and Auditor General 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 audit 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 ISSAls will always detect
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Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with 155Als, I exercise professional judgment and maintain
professional skepticism throughout the audit. I also:
* Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for my opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve
coLLusion, forgery, intentional omissions, misrepresentations, or the override of
internal control;
* Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control;
" Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management;
* Conclude on the appropriateness of management's use of the going concern basis
of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the entity's ability to continue as a going concern. If I conclude that a material
uncertainty exists, I am required to draw attention in my audit report to the related
disclosures in the financial statements or, if such disclosures are inadequate, to
modify my opinion. My conclusions are based on the audit evidence obtained up to
the date of my audit report. However, future events or conditions may cause the
entity to cease to continue as a going concern; and
* Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
I communicate with those charged with governance regarding, among other matters, the
planned scope ad imin ithudit and significant audit findings, including any
significant deficiencies in internal control that I identify during my audit.
I also provide those charged with governance with a statement that I have complied with
relevant ethical requirements regarding innd dence and to communicate with them all
Controller and Auditor Genera AR/LG/PORALG/BOOSTI2022/23
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relationships and other matters that may reasonably be thought to bear on my
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, I determine those
matters that were of most significance in the audit of the financial statements of the
current period and are, therefore, key audit matters. I describe these matters in my audit
report unless Law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, I determine that a matter should not be communicated in
my report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest of such communication.
In addition, Section 10 (2) of the Public Audit Act, Cap 418 [R.E 2021] requires me to satisfy
myself that the accounts have been prepared in accordance with the appropriate
accounting standards.
Further, Section 48(3) of the Public Procurement Act, Cap 410 [ R.E 2022] requires me to
state in my annual audit report whether or not the audited entity has complied with the
procedures prescribed in the Procurement Act and its Regulations.
1.2 REPORT ON COMPLIANCE WITH LEGISLATIONS
1.2.1 Compliance with the Public Procurement Laws
Subject Matter: Compliance Audit on Procurement of Works, Goods, and Services
I performed a compliance audit on the procurement of works, goods, and services of BOOST
Primary Student Learning Program implemented by the President's Office - Regional
Administration and Local Government for the financial year 2022/23 as per the Public
Procurement laws.
Conclusion
Based on the audit work performed, I state that, except for the matters described below,
procurement of goods, works and services of the BOOST Primary Student Learning Program
implemented by the President's Office - Regional Administration and Local Government is
generally in compliance with the requirements of the Public Procurement laws.
(i) Procurement made without adequate Tender Board approvals TZS 206,050,465
Regulation 58 (1-3) of the Public Procurement Regulation, 2013 (amended 2016) requires a
decision of the Tender Board may be made by the Tender Board without convening a
meeting through a circular resolution pursuant to the guidelines issued by the Authority. In
addition, Para 11.2 and 12.1 of the Guidelines for Tender Board's Decision through Circular
Resolution of 2020 directs a summary of all decisions of the tender board made through
circular resolutions shall be reported in the next ordinary meeting of the tender board using
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Controller and Auditor General AR/LG/PORALGIBOOSTI2022/23
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the format/Procedural Form attached with the guideline and all Circular Resolutions to be
numbered sequentially.
Contrary to the above requirement, PO-RALG procured goods and services worth TZS
206,050,465 from suppliers through circular resolutions which were not signed by at least
half of the Tender Board members. Also, the decisions made through those circular
resolutions were not submitted to a meeting of the Tender Board for ratification as required
by Para 11.2 and 12.1 of the Guidelines.
(ii) Uncompetitive procurement of building materials TS 305,119,838
Section 64 of the Public Procurement Act, Cap. 410 (R.E 2022) requires the Procuring entity
engaging in the procurement of goods, works, services, non-consultancy services, or
disposal by tender to apply competitive tendering, using the methods prescribed in the
regulations depending on the type and value of the procurement or disposal.
Furthermore, para 13.2 of the Guideline for carrying out works through the force account
of 2020, requires where there is more than one manufacturer or dealer of the materials to
be procured, the mode of procurement shall be through competition as provided for in the
public procurement laws.
A review of project documents for the construction of primary schools in Kilolo District
Council, Temeke Municipal Council, Lindi Municipal Council, Mtama District Council, and
Kigoma Ujiji Municipal Council revealed procurement of building materials worth TZS
305,119,838 without competitive bidding, contrary to the above-cited statutes.
(iii) Inadequate details on goods descriptions in competitive quotation forms TZS
232,149,524
According to Regulation 164 (2)(b) of the Public Procurement Regulations (PPR), 2013, as
amended in 2016, it is mandatory for the letter of invitation for quotations and its
attachments to provide a comprehensive description of the goods, works, or services to be
acquired. This includes detailing the necessary technical or quality characteristics,
specifications, designs, plans, and drawings, where applicable.
Upon reviewing the competitive quotation forms utilized by the Council for the
procurement of goods valued at TZS 232,149,524, it was observed that these documents
lacked a full description of the items being procured. Specifically, they did not include the
quality characteristics of the goods, which is a direct non-compliance with the
aforementioned regulation.
(iv) Contracts not vetted by the Council Legal Officer TZS 717,156,500
Regulation 60(1) of the Public Procurement Regulations, 2013 (Amended, 2016) requires
any formal contract arising out of the acceptance of tender whose value is below one billion
shillings to be vetted by a legal officer of a procuring entity before it is signed.
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Controller and Auditor General ARILG/PORALG/BOOST/2022/23
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However, some Construction Committees at Primary Schools in Mbeya District Council,
Rorya District Council, Butiama District Council, Serengeti District Council, Tarime District
Council, Tarime Town Council, Chunya District Council and Mbarali District Council did not
adhere to this regulation. They signed contracts with Local artisans amounting to TZS
717,156,500 for the provision of labor charges in constructing new primary schools'
infrastructures without being vetted by legal officers.
1.2.2 Compliance with the Budget Act and other Budget Guidelines
Subject Matter: Budget Formulation and Execution
I performed a compliance audit on budget formulation and execution of the BOOST Primary
Student Learning Program implemented by the President's Office - Regional Administration
and Local Government for the financial year 2022/23 as per the Budget Act and other
Budget Guidelines.
Conclusion
Based on the audit work performed, I state that the budget formulation and execution of
the BOOST Primary Student Learning Program for the President's Office - Regional
Administration and Local Government is generally in compliance with the requirements of
the Budget Act and other Budget Guidelines.
Charles E. Kichere
Controller and Auditor General,
Dodoma, United Republic of Tanzania.
31 December 2023
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Controller and Auditor General ARILGPORALG/BOOST/2022/23
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2.0 INTRODUCTION
The Boost Primary Student learning program is a hybrid operation (Program for Results
(PforR) and Investment Project Financing (IPF)) supporting the EPforR II of the
Government of Tanzania. For BOOST operations, reference can be made to the Financing
Agreement (FA), Program Appraisal Document (PAD), and relevant fiduciary and
safeguards documents. The BOOST PforR supports a significant portion of the Government
EPforR 11 across the three results areas.
The PforR results areas (RAs) have been selected to leverage Government and other
partner interventions that will be critical for achieving the goals of the EPforR II. The
government EPforR II overall cost is US$1,010 million, of which, US$870 million is for the
PforR Program and US$140 million for Technical Assistance (TA) and capacity building.
For the US$870 million PforR, the Government will contribute US$302 million, BOOST
PforR financing US$480 million, SIDA US$86 million, and KOICA US$2 milLion. The
contribution for TA and capacity building will come from FCDO (US$120 million, hereby
"Shule Bora" Program and the BOOST IPF component (US$20 million).
The Boost Primary Student Learning (BOOST) is a US$500 million WB IDA-funded program.
It was approved by the World Bank in December 2021 and will be implemented over the
next 5 years to close on December 31, 2026. BOOST will support the pre-primary and
primary subsectors of the mainland Tanzania Education Sector Development Plan.
Its implementation will be led by the government, specifically the National Program
Implementation Team (NPIT) at the Ministry of Education Science and Technology (MoEST)
and Presidents Office - Regional Administration and Local Government (PO-RALG) at the
national level and LGA Program Implementation Team (LPIT) in each of LGAs across
Mainland Tanzania. BOOST's Program Development Objectives are to improve equitable
access to pre-primary and primary education. When fully implemented, it will benefit
more than 12 million Tanzania children. It is also part of the Government's EPforR 11
program and builds on the solid foundation of the previous EPforR program.
BOOST adopts results-based financing, Program for Results (PforR) and a total of $480
million will be disbursed upon achievement of the results of eight Disbursement Linked
Indicators (DLIs). $20 million of the BOOST funding will be via traditional Investment
Project Financing (IPF) for project management, monitoring evaluation, and for policy
studies and capacity building of implementing agencies including Tanzania Institute of
Education (TIE), National Examination Council of Tanzania (NECTA), Agency for the
Development of Education Management (ADEM), and Teachers Service Commission (TSC).
2.1 PROGRAM RESULTS AREAS
Boost Primary Student learning program focuses is set to improving the quality of learning
through three results areas as explained in the following subsections:
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Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
2.1.1 Improving Public School Leaning
Providing Support to Schools to meet minimum infrastructure requirements, in
compliance with the Infrastructure Development plan, through the construction of new
classrooms and adequate water, and sanitation facilities, employing community-based
construction processes, as per the design guidelines set forth in the School Construction
Manual.
2.1.2 Improving Teacher Competencies and Quality of Classroom Teaching
Developing and Implementing(a) a preprimary teaching and learning package aligned with
curriculum (including related learning/teaching materials) for at Least one -year of
preprimary schooling, reflecting a chiLd-centered, play-based pedagogical approach to
support the development of the children's socio-emotional and cognitive skills; and (b) a
new training program for teachers of preprimary classes covering the curriculum and the
teaching- learning package to ensure continuous professional development.
2.1.3 Strengthening Education Financing and Decentralized Service Delivery Capacity
Strengthening the financial support and budgetary discipline in the preprimary and primary
education subsectors, including forecasting and timely appropriation and release of
required resources.
The Project Development Objective (PDO) is to improve equitable access to quality learning
in Pre-primary and Primary education in mainland Tanzania.. BOOST will track progress
towards this PDO through five PDO indicators, and eleven intermediate indicators,
reflected in the Results Framework. The PDO indicators include:
a) Pre-primary gross enrollment rate in the bottom quartile LGAs (DLl) (disaggregated
by gender);
b) Primary survival rate in the bottom quartile LGAs (disaggregated by gender);
c) Number of pre-primary classes implementing developmentally appropriate teaching
and Learning package (DLI);
d) Percent of Grade 2 students meeting minimum competency in literacy [Kiswahili]
(Percentage) (disaggregated by gender); and
e) Percent of Grade 2 students meeting minimum competency in numeracy
(Percentage) (disaggregated by gender).
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Controller and Auditor General AR/LGPORALG/BOOST/2022/23
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THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
2.2 MINISTERIAL IMPLEMENTATION PROCEDURES
There are Ministerial implementation procedures that play a part in making sure that the
Public Finance Act 2001 (Revised in 2004) and Public Procurement Regulations 2013(Revised
in 2016) are adhered to during the implementation of the Boost Primary Student Learning
Project. These are as follows;
2.2.1 Procurement Management and Procedures for the DLI-Based Components
Procurement will be carried out in accordance with the Public Procurement Act, 2011 (as
amended in 2016) and its Regulations, 2013, GN; No. 446 of 2013 (as amended in 2016
through GN; No. 333 of 2016) to procurement activities under Component 1-3. For MoEST
and PO-RALG: Goods, Works, Non-Consulting Services and Consulting Services.
Guidelines issued by the Public Procurement Regulatory Authority (PPRA) will be used when
implementing procurement activities under Components 1-3. Tanzanian National e-
Procurement System (TANePS) will be used to prepare, clear, and update PPs and conduct
all procurement transactions for activities under Components 1-3 in the Project.
Procurement procedure for goods, Works, and services will be carried as per PAD and
approved Procurement Plan threshold and method as stipulated in the Public Procurement
Act, 2011 (as amended 2016).
2.2.2 Audit arrangements
The project will be audited once a year by the Controller and Auditor General (CAG) and
regularly by Internal Auditors to provide wide coverage assurance over the effectiveness of
Project internal controls, regular reconciliation of financial data from different sources
including payroll audit and review compliance with policies and procedures. Audits
conducted by the CAG will be either directly or through private auditors contracted as
agents.
2.2.3 Supervision arrangements
Financial Management performance status of the Project will continue to be monitored
over the life of the Project through supervision review missions which will be conducted at
least twice every year based on the current risk assessment of the Project. In addition,
desk reviews will be conducted by review of IFRs and annuaudit reports.
Adolf H. Ndunguru Ally J. Swalehe.
PERMANENT ECR ARY PROJECT COOR INATOR
Date.. .]. .:...2£) Date.....1.. . .. 3
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
3.0 OVERVIEW OF THE PLANNED BUDGET, FUNDS RECEIVED AND EXPENDITURE
I am presenting the Financial Statements of Boost Primary Student Learning Project for the
financial year ended 30 June 2023. These statements have been prepared in accordance
with International Public Sector Accounting Standards (IPSAS) on Accrual Basis. The
submission of these financial statements is in fulfillment of sec 25(2) of the Public Finance
Act 2001 (as revised in 2004).
Section 25 (2) of The Public Finance Act 2001, (revised 2004) requires the Accounting
Officer to prepare and submit to the Controller and Auditor General the Annual Financial
Report. The Report provides information about the financial position, financial
performance, change in equity, comparison of budget and actual amounts, cash flows and
notes to the financial statements that will be useful to the users in making decisions on the
allocated resources and demonstrate the accountability of the Organization for the
resources entrusted to it.
The report also provides information useful in predicting the level of resources required
for continued operations, resources that may be generated by continued operations, and
the associated risks and uncertainties.
The financial statements for the year in particular report the effort of the management in
implementing the budget of the Financial Year 2022/23. Budget preparation was in
adherence to guidelines issued by the Minister of Finance and Planning, the Tanzania
Development Vision (DV) 2025, the First Five Year Development Plan (FYDP 2018/2019-
2022/2023), the Ruling Party Election Manifesto of 2015 and plans and priorities outlined
in National Strategy for initiatives and strategic plan.
3.1 Achievements Realised During Implementation of the Planned Activities
In the financial year 2022/23 BOOST Project realized many successes in the course of
implementation of various activities which were planned. Achievements realized were from
activities implemented using Development funds. Successes achieved were as follows:
a) Increased Pre-primary student Gross Enrollment Ratio from 76.9 percent in 2021 to
83.9 percent in 2022;
b) 302 new Primary Schools with model pre-primary classrooms, 3,350 classrooms
(2,942 for primary school, 368 model pre-primary classrooms, and 40 for special
needs students) 4,027 toilet stances (2,923 for primary school, 1,104 for pre-
primary students), 2 dormitories, and 41 teachers' houses are being constructed to
reduce overcrowding and distance from home to school. Also, 4 primary schools
have been rehabilitated;
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Controller and Auditor General AR/LG/PORALGIBOOST/2022/23
IHE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
c) 3,000 teachers assigned to teach pre-primary classes, 552 Head Teachers, 552 Ward
Education Officers, and 26 Regional Education Officers capacitated on the
application of improved teaching and Learning approaches and resources that are
age-appropriate;
d) Project implementation teams at LGAs and Regional levels have been capacitated
on the BOOST project components and management;
e) Publicity of the project was done and there is increased awareness of the program
among the implementers and community at large;
f) 30,390 teachers trained on the facilitation of teachers' continuous professional
development at the school level and Teachers' Resource Centers (TRCs).
Implementation assessment for the year 2022 revealed that all 2,870 targeted
Primary Schools in 26 targeted LGAs had rotted out TCPD and teachers' participation
was 96 percent.
In Governance, the following achievements were realized:
a) Project implementation teams at national, LGA and Regional Levels have been
established and are functional;
b) The project technical committee has been established and is functional;
c) The Project Steering Committee (PSC) has been established and is functional;
d) Project Operation Manual prepared and endorsed by the PSC; and
e) Project funds have been channeled to implement the planned activities as per the
approved annual work plan.
3.2 Challenges
Implementation of the year 1 activities was delayed due to the delayed signing of the
Financing Agreement (FA) The FA was signed in February 2022, 8 months later, when year
1 activities were supposed to commence implementation.
3.3 Way Forward
The following measures have been undertaken to ensure the timely and effective
implementation of the planned activities:
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Controller and Auditor General ARILG/PORALG/BOOSTI2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
a) PO - RALG has developed a fast-tracked plan to implement year 2 - 5 project
activities
b) A project monitoring and evaluation plan has been developed to track the
progress of all project activities.
3.4 General Issues
The President's Office Regional Administration and Local Government internal control
systems have been in place since its inception and have significantly enhanced risk
management concerning assets and other resources. Internal Audit and External Audit
have continued to provide services to improve preventive, detective, and corrective
controls, thus enabling the Boost to perform its duties effectively.
There have been no incidents of either fraud or corruption reported during the year.
LGAs and RSs complaints have been promptly attended to and deliberate efforts have
been made to improve LGAs and RSs service for the financial year 2022/23.
Internal as well as external LGAs and RSs are key to the existence and sustainability of
Boost Primary Students Learning program, hence areas that need improvement for the
betterment of Boost Primary Students learning program and all its stakeholders will be
closely examined and proper actions taken.
Adolf H.Ndunguru daeI
Accounting Officer
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Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
4.0 COMMENTARY TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
4.1 INTRODUCTION
These Financial Statements have been prepared by the President's Office - Regional
Administration and Local Government for the Boost Primary Students Learning program as
per section 25 (2) of the Public Finance Act 2001 (as revised in 2004). They have been
prepared and presented based on the Accrual basis of accounting pursuant to IPSASs.
Nevertheless, additional details have been included to promote understanding and
comprehension of the data as required and in compliance with the International Public
Sector Accounting Standards for the accrual basis of accounting. This is the first time for
the Boost to be audited. There was no comparability and in some instances where
comparisons were made, it aimed at easing understandability and decision making as per
para 57 of IPSAS 1.
4.2 Overview of the Financial Statements
Financial Statements for the financial year 2022/23 include a statement of Financial
Position, Statement of Financial Performance, Statement of Changes in Net Assets,
Statement of Comparison of Budget and Actual amount, Statement of Cash Flows, and
Explanatory notes.
4.3 FINANCIAL PERFORMANCE
4.3.1 Amortization of Revenue Grants
Boost Primary Students Learning program for the year under review has received a
Government grant from the Government of Tanzania and the World Bank amounting to TZS
262,305,436,859.43, and amortized a total of 246,463,892,105.68 for the implementation
of Boost activities within Tanzania's mainland.
4.3.2 Wages, Salaries and Employee Benefits
Boost Primary Students learning program for the year under review has spent a total of TZS
28,574,266 for employee benefits for the implementation of BOOST program activities
4.3.3 Supplies and Consumable Goods
Boost Primary Students learning program for the year under review has spent a total of TZS
11,756,927,426.65 for implementation of the Boost program under the following modules;
Project Management, Policy Development, Monitoring and evaluation and DLI/DLRs
verification, Capacity building in curriculum, Learning Assessment and Teachers'
Management and LGA Education, Leadership and Management Capacity in Program Delivery
and Procurement of Training and learning resource materials.
7
Controller and Auditor General ARILG/PORALG/BOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
4.3.4 Grants, Subsidies and Other Transfer Payments
Boost Primary Students learning program for the year under review has transferred a total
of TZS 234,664,173,756.84 mainly for the purchase of materials for the construction of 302
new Pre-Primary and Primary Schools, 3,350 classrooms, 4,027 toilet stances, 2
dormitories, 41 teachers' houses, and rehabilitation of 4 Primary Schools. The funds were
also meant to support the hiring of Local Fundis/ contractors, Procurement of Training and
Learning Resource Materials for TRC to support TCPD sessions and Monitoring and
Supervision for Teachers Service Commission, Local Government Authorities, Regional
Administrative Secretaries, and other transfers.
4.3.5 Routine Maintenance and Repair
Boost Primary Student's learning program for the year under review has spent a total of
TZS 14,216,656.20 for routine maintenance and repair.
4.3.6 Foreign Exchange Rate Gain
Boost Primary Students learning program for the year under review has realised the
Exchange rate Gain of TZS 983,670,905.83 as at June 2023.
4.4 STATEMENT OF FINANCIAL POSITION
This statement comprises of Cash and cash equivalents, receivables, inventories,
prepayments, Property and Plant and Equipment, payables, deposits, and Net
Asset/Equity.
4.4.1 Cash and Cash Equivalents
Boost Primary Students learning program for the year under review has cash and cash
equivalents including cash and bank balances amounting to TZS 16,825,215,659.59. The
huge cash and cash Equivalent was caused by the delay in starting of project, the reasons
were due to the late signing of the Financing agreement and the declaration of the
effective date. Lastly is a difference in the accounting period between the Government
of Tanzania and the World Bank, the accounting period for the World Bank is supposed
to end on December 2023.
4.4.2 Net Assets/Equity
Boost Primary Students Learning program for the year under review has a Net Asset/
Equity of TZS 983,670,905.83 as of 30 June 2023.
4.4.3 Development Deferred Income
Boost Primary Students learning program for the year under review has a Development
Deferred Income of TZS 15,841,544,753.75 as at June 2023. The Development Deffered
8
Controller and Auditor General AR/LG/PORALGIBOOST/2022/23
'. 4'40 - 4 P 0 -I v' , - ' . . - r' 4*A 4 -
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
Income balance was caused by a delay in starting the project, the reasons were due to
the late signing of the Financing agreement and declaration of the effective date. Lastly
is the difference in the accounting period between the Government of Tanzania and the
World Bank, the accounting period for the World Bank is supposed to end on December
2023.
4.5 COMPARISON OF BUDGET AND ACTUAL AMOUNT
The final budget for the year under review was TZS 266,495,505,276.63 out of which
TZS 15,518,228,729 was for a Foreign loan from IDA and Government grant TZS
250,977,276,547.63. The actual amount collected was TZS 262,305,436,859.43 of that,
TZS 13,965,414,087.84 was for the IPF and TZS 248,340,022,771.60 for P for R foreign
grant from World Bank respectively.
4.5.1 Wages, Salaries and Employee Benefits
Expenditure for the year under review total TZS 28,574,266 for the implementation of
Boost program activities.
4.5.2 Supplies and Consumable Goods
The final budget for supplies and consumable goods was TZS 27,110,480,276.63 whereas
TZS 11,756,927,426.65 was spent, which is equal to 42% of the total budget for this
item. The unspent amount of TZS 15,353,552,849.98 is for the purchase of 15 motor
vehicles, the purchase of ICT equipment for 200 Primary Schools and computer
accessories and the procurement of office equipment.
4.5.3 Routine Maintenance and Repairs
The final budget for routine maintenance was TZS 50,000,000.00 during the year under
review. Actual expenditure for the period was TZS 14,216,656.20.
4.5.4 Grants, Subsidies and Other Transfer Payments
Boost Primary Students learning program for the year under review has transferred a
total of TZS 234,664,173,756.84 mainly for the purchase of materials for the
construction of 9,705 classrooms and associated facilities, rehabilitation and hiring Local
Fundis/contractors, Procurement of Training and Learning Resources Materials for TRC
to support TCPD sessions and Monitoring and Supervision for, TSC, LGAs and RAS.
9
Controller and Auditor General AR/LGIPORALGIBOOST/2022/23
- 4 b 0/. , 400 4' *,*
P:. A -s- 4 * - -.*
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
4.6 AUDITORS
The Controller and Auditor General (CAG) is the statutory auditor for Boost pursuant to
the provisions of Article 143 of the Constitution of the United Republic of Tanzania of
1977, the Public Audit Act, 2008, and Paragraph 3 (1) of The Boost (Establishment)
Instrument, 2015 GN no 453 of 2015.
Adolf H. Ndunguru Date
Accounting Officer.
10
Controller and Auditor General AR/LG/PORALGIBOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
5.0 STATEMENT OF MANAGEMENT RESPONSIBILITY ON THE FINANCIAL STATEMENTS FOR
THE YEAR ENDED 30 JUNE 2023
President's Office Regional Administration and Local Government is responsible for the
preparation of annual Financial Statements for the Boost program, which provides a true
and fair view of the entity's state of affairs and its operating results as per the International
Public Sector Accounting Standards (IPSAS) on the Accrual basis, and in conformity with
Section 25 (2) of the Public Finance Act No 6 of 2001 (as revised in 2004).
The responsibility includes designing, implementing, and maintaining internal control
relevant to the preparation and presentation of financial statements that are free from
material misstatement, whether on account of fraud or error, selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in
the circumstances which provide reasonable assurance that the transactions recorded are
within statutory authority and property recorded the use of all public financial resources
accordingly.
To the best of our knowledge, the system of internal control has operated adequately
throughout the reporting period, and the records and underlying accounts provide a
reasonable basis for the preparation of the financial statements for the year ended 30 June
2023. Procurement of goods, works and consultancy and non-consultancy services, to the
extent that they are reflected in these financial statements, has been carried out under
the Public Procurement Act no. 9 of 2011 and its Regulations 2013 as amended in 2016.
We accept responsibility for the integrity of these financial statements, the information
they contain, and the compliance with the Public Finance Act No. 6 of 2001 (as revised in
2004) and its Regulations of 2013, International Public Sector Accounting Standards (IPSAS)
Accrual basis, and guidelines issued from time to time by Paymaster General and
Accountant General. The management is taking all responsibility by creating confidence in
users of these financial statements that they show the true and fair view of the state of
affairs of the reporting entity.
Nothing has come to the attention of the management that the financial statements do not
present fairly in all material respects the state of affairs of the entity and that the entity
will not remain a going concern for the next twelve months from the date of these
statements.
Adolf Ndunguru Dft to
Accounting Officer
Controller and Auditor General AR/LG/PORALGIBOOST/2022/23
,Wp,' 4A. - 40, 4 P. - - ' :. - - * - 7 , Ir. Ib , . " , -"1 4. .
b~ ff
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
6.0 STATEMENT OF DECLARATION BY THE HEAD OF FINANCE AND ACCOUNTS FOR THE
PERIOD ENDED 30 JUNE 2023
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 by a declaration issued by
the Head of Finance/Accounting responsible for the preparation of financial statements of
the entity concerned.
A Professional Accountant has to assist the Management in discharging the responsibility of
preparing financial statements of an entity showing a true and fair view of the entity's
position and performance as per applicable International Accounting Standards and
statutory financial reporting requirements. Full Legal responsibility for the preparation of
financial statements rests with the Management Responsibility statement on an earlier
page.
1, ACPA Melton E. Nyella, being the Head of Finance and Accounting of The President's
Office, Regional Administration and Local Government hereby acknowledge my
responsibility of ensuring that financial statements for the year ended 30 June 2023 have
been prepared in compliance with applicable accounting standards and statutory
requirements.
1, thus, confirm that the financial statements give a true and fair view position of The
President's Office, Regional Administration Local Government as of that date and that they
have been prepared based on properly maintained financial records.
Signed by: .
Position: Chief Accotant
Membership No. NBAA/ACPA/4079
Date:...
12
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023
2023
NOTE TZS
ASSETS
Current Assets
Cash and Cash Equivalents 32 16,825,215,659.59
Total Current Assets 16,825,215,659.59
Non-Current Assets
Property, Plant and Equipment 51
Total Non-Current Assets
TOTAL ASSETS 16,825,215,659.59
Non-Current Liabilities
Development Deffered Income 47 15,841,544,753.75
Total Non-Current Liabilities 15,841,544,753.75
TOTAL LIABILITIES 15,841,544,753.75
Net Assets 983,670,905.84
NET ASSETS
Capital contributed by:
Tax Payers Fund
Accumulated surpluses 983,670,905.83
TOTAL NET ASSETS 983,670,905.83
ACPA. Melt E.Nyella Hadija A. Mcheka
Chief Accountant For Director of Education
Administration
Date: ...7 ~ 2 Date:... OZ
13
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
STATEMENT OF FINANCIAL PERFORMANCE FOR THE PERIOD ENDED 30 JUNE 2023
2022/2023
NOTE TZS
REVENUE
Amortisation of Revenue Grants 16 246,463,892,105.68
Foreign Exchange Rate Gain 16 983,670,905.84
TOTAL REVENUE 247,447,563,011.52
EXPENSES AND TRANSFERS
Wages, Salaries and Employee Benefits 22 28,574,266.00
Supplies and Consumable Goods 24 11,756,927,426.65
Routine Maintenance and Repair 25 14,216,656.20
TOTAL Expenses 11,799,718,348.85
Transfers
Grants, Subsidies and other Transfer Payments 26 234,664,173,756.84
Total Transfers 234,664,173,756.84
TOTAL EXPENSES AND TRANSFERS 246,463,892,105.69
SurpLus/(deficit) for the period 983,670,905.83
ACPA. Melton yella Hadija A. Mcheka
Chief Accountant For Director Edu tion Administration
Date: ... n - ..... .. Date: .......
14
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
STATEMENT OF CHANGES IN NET ASSET /EQUITY FOR THE PERIOD ENDED 30 JUNE 2023
Accum. Total
Surplus/(Deficit)
TZS TZS
Opening Balance as at 01 Jul 2022
Capital Fund
Adjustment
Surplus/ Deficit for the Year 983,670,905.83 983,670,905.83
Closing Balance as at 30 June 2023 983,670,905.83 983,670,905.83
.... ...... .. A ..... .......w. ...... ......
ACPA. Melto E.NyeLLa Hadija A. Mcheka
Chief Accou rtant For Director Ed cation Administration
Date: 7Q kDate: ..O1.23
15
Controller and Auditor General ARILG/PORALGIBOOST/2022/23
-.I AN P* -w
--or
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2023
2022/2023
TZS
CASH FLOW FROM OPERATING ACTIVITIES
RECEIPTS
Revenue Development grant-World Bank 262,305,436,859.43
TOTAL RECEIPTS 262,305,436,859.43
PAYMENTS
Wages,Salaries and Employee Benefits 28,574,266.00
Supplies and Consumable Goods 11,756,927,426.65
Grants, Subsidies and other Transfer Payments 234,664,173,756.84
Routine Maintenance and Repair 14,216,656.20
TOTAL PAYMENTS 246,463,892,105.69
Net Cash Flow From Operating Activities 15,841,544,753.74
CASH FLOW FROM INVESTING ACTIVITIES
Purchase/Construction of Non-Current Assets
Net Cash Flow from Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowing
Net Cash Flow From Financing Activities
Net Increase/(decrease) in cash and cash equivalent 15,841,544,753.74
Cash and Cash Equivalents at beginning of Period
Foreign Exchange Rate Gain 983,670,905.84
Cash and Cash Equivalents at end of Period 16,825,215,659.59
... .. . .. ....... A........ .. ..# ...................
ACPA. Meton .Nyella Hadija A. Mcheka
Chief Accounant For Director if Edufation Administration
Dae ..........121... Date: 2- t'12 Q2
16
Controller and Auditor General AR/LG/PORALG/B0OST2022/23
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
RECONCILIATION OF THE NET CASH FLOW FROM OPERATING ACTIVITIES TO SURPLUS /DEFICIT FOR
THE PERIOD ENDED 30 JUNE 2023
Surplus/ Deficit for the Period 983,670,905.84
Add/ (Less) Non Cash Item
Foreign Exchange Rate Gain -983,670,905.83
Add/ (Less) Change in Working Capital
Development Deffered Income 15,841,544,753.74
Net Cash Flow from Operating Activities 15,841,544,753.74
'WCbP .~4 A. Melt .... . .......... I ...................
AP.Mt .Nyet*a Hadija A. Mcheka
Chief Accour*nt For Director of Educ don Administration
Date: .... ?fA 2zja.z-a..... Date: ... .. J2 11
17
Controller and Auditor General ARILG/PORALG/BOOSTI2022/23
аз
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E-UMiTED REPUBLiC"OF TANZANIA
PRE§IDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 2023
BASIS OF PREPARATION
These financial statements comply with International Public Sector Accounting Standards - Accrual basis
of accounting, the measurement bases applied is historical cost. The financial statements have been
prepared on going concern basis and accounting policies have been applied consistently throughout the
period. Moreover, the financial statement has been prepared as per the requirements of the Public
Finance Act No. 6 of 2001, and revised 2004. The financial statements are presented. The Financial
statements are presented in Tanzania Shillings (TZS)
Authorization Date.
The financial statement was authorized for issue/ publication on 30 August 2023.
Reporting Entity
The financial statements are for the PO-RALG under the Boost Primary Student Learning Program. The
financial statements encompass the reporting entity as specified in the relevant legislation.
Government Business Entities/Significant Controlled Entities
Boost Primary Student Learning Program has no significant controlled Entities for the financial year ended
30 June 2023.
12.0 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
The accounting policies adopted, which are consistent with those of previous years, are shown below.
12. 1. Foreign Currency Translation
Functional and presentation currency
Items included in the financial statements of the Government are measured using the currency of the
primary economic environment in which the Government operates ("the functional currency"). The
financial statements are presented in Tanzanian Shillings (TZS), which is the Government's functional
and presentation currency.
12.2. Translations and Balances
Foreign currency transactions are translated into Tanzanian Shillings using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and Losses resulting from the settlement of such
transactions and from the transaction at year-end exchange rates of monetary assets and Liabilities
denominated in foreign currencies are recognized in the statement of financial performance.
12.3. Cash and Cash Equivalents
Cash and bank balances in the statement of financial position comprise cash at banks and short-term
deposits with an original maturity of three months or Less, and is measured at amortized cost. For the
cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above,
net of outstanding bank overdrafts.
19
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
'THE-UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
12.4. Significant Accounting Judgment, Estimates and Assumptions
The preparation of financial statements in conformity with IPSAS requires the use of estimates and
assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Although these estimates are based on the directors' best knowledge of
current events and actions, actual results ultimately may differ from those estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period or in
the period of the revision and future periods if the revision affects both current and future periods. The
most significant use of judgment and estimates are as follows:
The principal accounting policies adopted in the preparation of these financial statements are set out
below:
Government Grants.
Government grants are not recognized until there is reasonable assurance that the Government will
comply with the conditions attached to them and the grants will be received. Other Government grants
are recognized as income over the periods necessary to match them with the costs for which they are
intended to compensate, on a systematic basis. Government grants that are receivable as compensation
for expenses or losses already incurred or to give immediate financial support to the Government with
no future related costs are recognized in the statement of financial performance in the period in which
they become receivable.
Donations
Support from donors both in cash and in-kind is recognized when it is received.
Inventories
Inventories are stated at the lower cost and replacement cost. Costs incurred in bringing each product
to its present location and condition are accounted for as follows
1. Stationeries and other consumables-cost is determined on first in first out
2. Raw materials-purchase cost on a first in first out basis
3. Finished goods and work in progress- the cost of direct materials and labor and a proportion of
manufacturing overheads based on normal capacity but excluding borrowing costs.
The current replacement cost is the cost that the entity would incur to acquire the asset on the
reporting date.
Net realizable value is the estimate of the selling price in the ordinary course of business, less the setling
expenses. The current replacement cost is the cost the entity would incur to acquire the asset on the
reporting date. Provision for impairment is made for slow-moving and obsolete stock.
20
Controller and Auditor General ARILG/PORALG/BOOST/2022/23
TAE -UNITED REPUBLIC OF TANZANIA
PRESIDENT 5 OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
Related Party
Related parties comprise the PO-RALG, LGAs and RSs, and senior staff of the Boost who have
significant influence over the Boost affair. No related party transaction has been incurred in the due
course of Boost Primary Students Learning program operation activities.
Events after Reporting the Period
Events after the reporting period are favorable and unfavorable, that occur between the end of the
reporting period and the date when the financial statements are authorized for issue. Two types of
events can be identified:
1. Those that provide evidence of conditions that existed at the reporting period (adjusting events
after the reporting period.
2. Those that are indicative of conditions that arose after the reporting period (non-adjusting events
after the reporting period).
Value Added Tax
Revenues, expenses, and assets are recognized net of the amount of vaLue-added tax except:
a) Where the value-added tax incurred on a purchase of assets or services is not recoverable from
the taxation authority, in which case the value-added tax is recognized as part of the cost of
acquisition of the asset or as part of the expense item as applicable; and
b) Receivables and payables are stated with the amount of value-added tax included. The net
amount of value-added tax recoverable from, or payable to, the taxation authority is included
as part of receivables or payables in the statement of financial position.
Income Taxes
Being a public institution that is not for profit, the Boost is exempted from tax on its surplus.
Employees Benefit
Employee benefits are recognized on an accrual basis.
Short-term Benefits
Employee benefits include salaries, pensions, annual Leave and other related - employment costs. The
estimated monetary Liability for employees' accrued allowances and other entitlements at the reporting
date is recognized as an expense.
Post-Employment Benefit
Boost Primary Students learning program and its employees contribute to the Public Service Social
Security Fund (PSSSF) a statutory defined contribution plan, under the PSSSF Act. The organization's
contributions to the defined contribution scheme are charged to the statement of financial performance
in the year in which they relate.
21
Controller and Auditor General AR/LGIPORALGIBOOST/2022/23
TilE4UNITED REP1UBLIC'OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
Other Long-Term Benefits
Employee entitlements to gratuity and tong service awards are recognized when they accrue to
employees. A provision is made for the estimated Liability for such entitlements as a result of services
rendered by employees up to the reporting date.
12.5. Future Changes in Accounting Policies
Standards issued but not yet effective up to the date of issuance and some amendments thereon that
might have an impact on the entity's financial statements are Listed below. This listing of standards issued
is those that the entity reasonably expects to have an impact on disclosures, financial position or
performance when applied at a future date. The entity intends to adopt these standards when they
become effective.
a) IPSAS 41- Financial Instruments: - This standard is effective for annual financial statements
covering periods beginning on or after January 1, 2023. The entity is currently assessing the impact
of the standard.
b) IPSAS 42- Social Benefits: - This standard is effective for annual financial statements covering
periods beginning on or after January 1, 2023. The entity is currently assessing the impact of the
standard.
12.6. Exchange Rates
ALI monetary amounts in the financial statements are expressed in Tanzania Shillings, the Legal tender
showing as TZS. The Tanzania shilting closing rate (The Bank of Tanzania middle rate) for major currency
was
Currency 30 June 2023
United States Dollar 2315.94
13.0 RISK MANAGEMENT
Government is subject to several financial risks that arise as a result of its debt portfolios, investment
funds, and transactions with foreign and domestic suppliers, and is responsible for ensuring appropriate
risk management strategies and policies are in place within any mandate provided by tegisLation.
13.1 Interest Rate Risk
Interest rate Risk refers to thefrive u to teo adverse movement in interest rate. In general interest
rate risk is managed strategically by issuing a mix of fixed and floating-rate debt.
13.2 Credit Risk
Credit risk refers to the risk of a Loss duet to he nimac on cour acialdischarge an
obligation. Financial instruments that subject
22
Controller and Auditor General AR/LGiPORALG/BOOSTI2022/23
,TE -UNITED REPUBLiCOF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
The Ministry to Credit Risk includes bank balances, receivables, advances, and investments.
The entities within the Ministry reporting entity manage their exposure to credit risk by:
Maintaining credit exposure only with highly rated institutions, for which the probability of default is
low. The creditworthiness of counterparties is the:-
1. Continuously monitored.
2. Ensuring diversification of credit exposure by limiting the exposure to any one financial institution.
13.3 Foreign Exchange Risk
Foreign exchange risk refers to the risk of loss due to adverse movements in foreign exchange rates. The
range of instruments currently being used to minimize the Ministry's exposure to foreign exchange risk
includes currency and interest rate swaps, foreign-exchange contracts, and futures contracts.
13.4 Liquidity risk
Liquidity risk refers to the loss due to the lack of liquidity preventing quick or cost-effective liquidation
of products, positions or portfolios. Liquidity risk is managed on an individual entity basis, which
generally requires entities to hold assets of appropriate quantity and quality to meet all their obligations
as they fall due.
23
Controller and Auditor General ARILG/PORALGIBOOST/2022123
.PREIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
NOTES TO THE FINANCIAL STATEMENT FOR THE PERIOD ENDED 30 JUNE,2023
2022/2023
16 - Revenue Grants TZS
Development Grants Foreign-World Bank 246,463,892,105.69
Exchange Rate Gain 983,670,905.84
Sub-Total 247,447,563,011.53
22 - Wages, Salaries and Employee Benefits
Outfit Allowance 6,000,000.00
Incidental Allowance 22,574,266.00
Sub-Total 28,574,266.00
24 - Use of Goods and Service
Advertising and publication 8,097,000.00
Air Travel Tickets Domestic 5,486,900.00
Air Travel Tickets-Foreign 169,336,660.00
Conference Facilities 88,899,500.40
Diesel 966,837,982.00
Educational Radio and TV broadcasting programming 16,048,000.00
Food and Refreshment 498,618,458.73
Ground travel (bus, railway taxi, etc) 162,889,400.00
Office Consumables (papers,pencils, pens and stationaries) 118,915,979.00
Per Diem - Domestic 9,658,067,480.92
Per Diem - Foreign 20,454,600.00
Printing and Photocopying Costs 21,000,000.00
Tuition Fees 20,444,465.60
Visa Application Fees 1,831,000.00
Sub-Total 11,756,927,426.65
25 - Routine Maintenance Expenses
Motor Vehicles and Water Craft 6,453,656.20
Tyres and Batteries 7,763,000.00
Sub-Total 14,216,656.20
26 - Grants, Subsidies and other Transfer Payments
24
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23
_TAE*UNITED REPUJBLiC OF TANZANLA
.0PRESIENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
Transfer- RAS-Supervision 349,000,001.00
Transfer-Councils School 233,272,170,905.84
Transfer-Tume ya Watimu 636,002,850.00
Transfer-Councils-Supervision 407,000,000.00
Sub-Total 234,664,173,756.84
32 - Cash and Cash Equivalents
Ps-Poraig- Boost IPF Account-BOT 2,988,379,661.32
Ps-PoraLg-P for R Account-BOT 9,290,245,275.12
Ps-Poralg-IPF Account-CRDB 1,536,412,150.16
Ps-Poraig-P for R Account-CRDB 3,010,178,573.00
Sub-Total 16,825,215,659.59
47 - Deferred Income (Capital)
Ps-Poraig-IPF Account-CRDB 1,536,412,150.16
Ps-PoraSg-P for R Account-CRDB 3,010,178,573.00
Development Deffered Income-IPF-BOT 2,940,983,837.42
Develop-om me-P for R -BOT 8,353,970,193.17
Sub-Total 15,841,544,753.75
Note 35- Development Deferred Income
Balance at the beginning of the year2 9
Received during the year
Development Grant Foreign-World Bank 262,305,436,859.43
Amortisation for the year 246,463,892,105.69
Balance at the end of the year 15,841,544,753.74
Notes for Adjustment of Cash flow
Note 22: Wages, Salaries and Employ Benefit
Amount incurred 28,574,266.00
Less: Payables (Employment benefit)
Amount Paid 28,574,266.00
25
Controller and Auditor General AR/G/PORALGIBOOST/2022/23
le. A. .e .
THE UNITED REPUBLIC OF TANZANIA
PRESIDENT'S OFFICE,
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT (VOTE 056)
BOOST PRIMARY STUDENT LEARNING PROGRAM
Note 24: Use of Goods and Services
Amount incured 11,756,927,426.65
Add: Ending Inventories
Ending Prepayment
Opening Payables
Less:
Ending Payables
Amount Paid 11,756,927,426.65
Note 16:Revenue Grants
Development Grants Received during the year 262,305,436,859.43
Add: Revenue from previous year receivables
Less: Closing Receivables
Amount Received 262,305,436,859.43
Note 25: Routine Maintenance
Amount incured 14,216,656.20
Add: Opening Payables
Less: Ending PayabLes
Amount paid 14,216,656.20
Note 26: Grants,Subsidies and other transfers payments
Amount incured 234,664,173,756.84
Amou t paid 234,664,173,756.84
ACPA. Melton .Nyella Hadija A. Mcheka
Chief Accountant For Director of Education
Administrati n
Date: ~~Date: .0(7420
26
Controller and Auditor General AR/LG/PORALG/BOOST/2022/23