THE UNITED REPUBLIC OF TANZANIA AyAr NATIONAL AUDIT OFFICE DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT) - MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTERGRATION PROJECT (EASTRIP) REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS AND COMPLIANCE AUDIT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022 PROJECT ID NUMBER: P163399 Controller and Auditor Generat, National Audit Office, Audit House, 4 Ukaguzi Road, P.O. Box 950, 41101 Tambukareli, Dodoma, Tanzania. Tel: 255 (026) 2161200, Fax: 255 (026) 2321245, E-mail: ocaq@nao.go.tz Website: www.nao.go.tz December,2022 AR/CG/MoESTIEASTRIP DIT MWANZA/2021/22 About the National Audit ...ic 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. Vision A credible and modern Supreme Audit Institution with high-quality audit services for enhancing public confidence. Mission To provide high-quality audit services through modernization of functions that enhances accountability and transparency in the management of public resources. Motto: "Modernizing External Audit for Stronger Public Confidence" Core values In providing quality services, NAO is guided by the following Core Values: i. Independence and objectivity ii. Professional competence iii. Integrity iv. Creativity and Innovation v. Results-Oriented vi. Teamwork Spirit We do this by: V 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; V Providing technical advice to our clients on operational gaps in their operating systems; V Systematically involve our clients in the audit process and audit cycles; and / Providing audit staff with adequate working tools and facilities that promote independence. @ This audit report is intended to be used by EASTRIP DIT MWANZA and the World Bank 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. ii Controller and Auditor General AR/CG/MoEST/EASTRIP DIT MWANZA/2021I/22 TABLE OF CONTENTS Abbreviations...................................................................................... iv 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ............. 1 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS .................................. 1 1.2 REPORT ON COMPLIANCE WITH LEGISLATIONS......................................... 4 2.0 FINANCIAL STATEMENTS................................................................... 6 iii Controller and Auditor General AR/CG/MoEST/EASTRIP DIT MWANZA/2021/22 Abbreviations AR Audit Report CAG Controller and Auditor General CG Central Government EASTRIP East Africa Skils for Transformation and Regional Intergration Project ISSAIs International Standard of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards MoEST Ministry of Education Science and Technology iv Controller and Auditor General AR/CG/MoEST/EASTRIP DIT MWANZA/2021/22 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL Director, Dar es Salaam Institute of Technology (DIT) - Mwanza Campus, P.O. Box 2525, MWANZA, TANZANIA. 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS Unqualified Opinion I have audited the financial statements of the East Africa Skills for Transformation and Regional Integration Project (EASTRIP) implemented by Dar es Salaam Institute of Technology (DIT) - Mwanza Campus, which comprise the statement of financial position as at 30 June 2022, and the statement of financial performance, 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 East Africa Skills for Transformation and Regional Integration Project (EASTRIP) implemented by Dar es Salaam Institute of Technology (DIT) - Mwanza Campus as at 30 June 2022, 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 (ISSAIs). 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 Dar es Salaam Institute of Technology (DIT) - Mwanza Campus 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 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. 1 controller and Auditor General AR/CGIEASTRIP DIT MWANZA2021/22 Other Information Management is responsible for the other information. The other information comprises the Statement of Principal, 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 ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 2 Controller and Auditor General AR/CG/EASTRIP DIT MWANZA/2021/22 As part of an audit in accordance with ISSAls, 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 and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with 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, the 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. 3 Controller and Auditor General AR/CG/EASTRIP DIT MWANZA/2021/22 In addition, Section 10 (2) of the Public Audit Act, Cap 418 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, 2011 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 procurement of works, goods and services in the East Africa Skills for Transformation and Regional Integration Project (EASTRIP) implemented by Dar es Salaam institute of Technology (DIT) - Mwanza Campus for the financial year 2021/22 as per the Public Procurement Laws. Conclusion Based on the audit work performed, I state that procurement of goods, works and services of East Africa Skills for Transformation and Regional Integration Project (EASTRIP) implemented by Dar es Salaam Institute of Technology (DIT) - Mwanza Campus is generally in compliance with the requirements of the Public Procurement laws in Tanzania. 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 in the East Africa Skills for Transformation and Regional Integration Project (EASTRIP) implemented by Dar es Salaam Institute of Technology (DIT) - Mwanza Campus for the financial year 2021/22 as per the Budget Act and other Budget Guidelines. Conclusion Based on the audit work performed, I state that, except for the matters described below, Budget formulation and execution of the East Africa Skills for Transformation and Regional Integration Project (EASTRIP) implemented by Dar es Salaam Institute of Technology (DIT) - Mwanza Campus is generally in compliance with the requirements of the Budget Act and other Budget Guidelines. 4 Controller and Auditor General AR/CG/EASTRIP DIT MWANZA/2021/22 * Activities included in the Annual Work Plan not implemented - TZS 8,604,223,190.19 During the financial year 2021/22 the EASTRIP DIT Mwanza planned activities totaled TZS 10,457,837,828 while the implemented activities summed up to TZS 1,853,614,637.81 leaving unimplemented activities worth TZS 8,604,223,190.19. This is contrary to Para 42 of the EASTRIP Project Appraisal Document of October, 2018 which stipulates that, the Regional Flagship TVET Institutes are required to develop Annual Work Plans based on the approved Strategic Investment Plans. Chres . Kic re" Controller and Auditor General, Dodoma, United Republic of Tanzania. December, 2022 5 Controller and Auditor General AR/CG/EASTRIP DIT MWANZA/2021/22 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT FINANCIAL STATEMENTS 1.0 COUNCIL'S REPORT 1.1 Introduction The members of the Governing Council are pleased to present their report together with the Financial Statements for the year ending 30 June, 2022, which discloses the state of affairs of the DIT Mwanza Campus in respect of the East Africa Skills for Transformation and Regional Integration Project (EASTRIP). The Governing Council's report has been prepared in accordance with the Tanzania Financial Reporting Standard (TFRS) No. 1. The Financial Statements, which have been prepared in accordance with the International Public-Sector Accounting Standards (IPSASs). Establishment of the Institute The Dar es Salaam Institute of Technology (DIT) was established under Dar es Salaam Institute of Technology Act No 6 of 1997. DIT Mwanza campus was established in May 2010 taking over the facilities of the former Tanzania Institute of Leather Technology (TILT). DIT Mwanza Campus aim at supporting Tanzania hides and skins derived industries through training in Leather Technologies. 1.2 Location of the Campus DIT Mwanza Campus is located in Mwanza City, Ilemela Municipal, on plot number 483/1, Block A, Pasiansi area, along Makongorof/Airport Road. 1.3 Principal Activities The principal activities of the Campus include: * To provide training on hides and skins improvement; leather technology; leather products production, Science and Laboratory Technology, Information and Communication Technology and other related disciplines as the institute may decide from time to time. * To demonstrate appropriate skills in manufacturing leather, footwear and Leather goods according to standards and specifications. * To conduct demand driven research and development in the leather value chain. * To offer consultancy services in the leather value chain * To design, produce and market quality leather, footwear and leather goods. * To contribute to review, formulation and implementation of policies and strategies related to the development of the leather industry. * To conduct examinations and grant awards of DIT as approved by the National Council for Technical Education (NACTE). * To perform all such other functions as stipulated in the Act that established the institute. 1.4 Vision and Mission Vision To become a leading technical education institution in addressing societal needs. Mission 1 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT To provide competence based technical education through training, research, innovation and development of appropriate technology. 1.5 Strategic Plan DIT has a five-years Strategic Plan 2017/2019 to 2021/2022 with six strategic goals. The strategic goals are to;- * Technical Education: To achieve and sustained excellence in technical education aimed at addressing societal needs; * Research and Innovations: To achieve and sustained excellence in research and innovation aimed at addressing societal needs; * Knowledge Exchange Public Services: To promote effectiveness in knowledge exchange and public services; * Internationalization: To promote beneficial international cooperation and engagements; * Alumni Relations: To develop and capitalize on effective alumni relations; and * Institutional Capacity: To strengthen and develop the institutional capacity for effective delivery of teaching and learning, research, innovation and public services. 1.6 Appropriation of Reserves/Surplus Dar es salaam Institute of Technology is a public institution, which is not for profit and for that reason; there is no declaration of dividends. In accordance with the strategic plan, the surplus generated, if any, shall be used for financing its future activities. 1.7 Composition of the Governing Council The Governing Council comprises of 10 members including the Chairperson. The President of the United Republic of Tanzania appoint the Chairperson of the Governing Council for the term of three years, which may be renewable once. The appointment of the rest of the Governing Council members is done by Minister responsible for Education, Science and Technology for a term of three years, which may be renewable once. During the year under review, the Governing Council, held four (4) ordinary meetings. During the Council meetings, among others, deliberations made included, approval of annual budget, quarterly performance reports, audited accounts, audit management letter, staff promotion, amendments of DIT financial regulations, student's government financial procedures manual, disciplinary matters and approval grandaunts names. Following the expiry of the tenure of the Governing Council on August 2019, the Government appointed new members of the Council and renewed the tenure of the Chairperson with effect from 28 August, 2019. However, on 16th April 2021, a new Chairperson Dr.Richard Masika, was appointed, following passing away of the former Chairperson Prof. Apollinaria Pereka. The names and other details of the current Governing Council are presented in the table I below. Table 1: Governing Council Members 2 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT S/N Name Position Qualification Nationality Age Date of Appointment 1 Dr.Richard J. Chairperson PhD - Structural Tanzanian 62 April 2021 Masika Engineering 2 Dr. Pancras Member PhD - Tanzanian 57 23/08/2019 M.S. Bujulu Geotechnical Engineering 3 Prof. Maulitio Member PhD - Tanzanian 45 23/08/2019 Kipanyula Neurobiology 4 Ms. Member MBA - Tanzanian 52 23108/2019 Margareth International William Business Warioba 5 Dr. Esebi Member PhD - Sustainable Tanzanian 42 23/08/2019 Alois Nyari Energy Science and Engineering 6 Ms. Mercy E. Member LLM in Information Tanzanian 47 23/08/2019 Mrutu and Communication Technology Law 7 Eng. Member Masters in Tanzanian 47 23/08/2019 Veronica Engineering Fabian Management Ninalwo 8 Dr. Paul Member PhD - Structural Tanzanian 61 23/08/2019 Christopher Engineering Ndumbaro 9 Mr. Lucas Member Student Ordinary Tanzanian 31 23/08/2019 John Lema Diploma in Lab Tech 10 Prof. Secretary PhD - Water Tanzanian 51 23/08/2019 Preksedis M. Resources Ndomba Engineering 1.8 Audit Committee During the year under review, the Audit Committee held four meetings, one in every quarter. Deliberations included Quarterly Internal Audit reports, Management letter from the Controller and Auditor General for the year 2020/21 and Internal Audit Unit work plan and budget for the year 2021/22. Table 2: Members of the Audit Committee S/No. Name Position Qualification Nationality Age 1 CPA Remi P. Urio Chairman CPA (T),MBA Tanzanian 59 2 Dr. Paul Fahamuel Secretary PhD-Telecom Eng. Tanzanian 41 Mmbaga 3 Mr. Moses Zakayo Kaswa Member Msc - Civil Eng. Tanzanian 39 4 Prof. Nurdin K.M. Mushule Member PhD Tanzanian 55 3 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT S/No. Name Position Qualification Nationality Age 5 Dr. Yona Kimori Member PhD-Mechanical Eng. Tanzanian 44 2.0 FINANCIAL STATEMENTS 2.1 DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT)-MWANZA CAMPUS AND WORLD BANK FUNDED PROJECT Dar es Salaam Institute of Technology (DIT), Mwanza Campus is a beneficiary of World Bank funding regional project to transform DIT Mwanza Campus into a Centre of Excellence in Leather Processing and Allied Technologies (CELPAT) under the East Africa Skills for Transformation and Regional Integration Project (EASTRIP). The Project Development Objective (PDO) is to increase the access and improve the quality of TVET programs in selected Regional Flagship TVET Institutes and to support regional integration in East Africa. The CELPAT will address the challenges facing the nation at large and DIT Mwanza Campus by implementing various activities such as developing curricula and programs that meet market demand, upgrading infrastructures including machineries and equipment, strengthening Industrial Linkages, and educational study visits (Including Internships and workplace exposure for TVET instructors and students), Industrial experts visitations Industrial Advisory Committee establishment, and the establishment of Outreach programs. 2.1.1 Objectives of CELPAT * Strengthening governance and management to international standards with ISO Certifications * Strengthening of industrial linkages between DIT Mwanza and relevant industries to address technical skill gap * Development of market relevant and competency-based training programs * Capacity building of school managers and teachers (tutors, instructors, lecturers) * Improvement of training facilities and equipment * Establishment of sustainable partnership and collaboration with non-project national TVET. * Increase student enrolment through development of market relevant programs. 2.1.2 Enrolment performance DIT Mwanza Campus continue to run trainings in Four (4) Ordinary Diploma programmes, three (3) certificates programmes and three (3) short course programmes. Four new programs are going to be introduced at DIT Mwanza in the academic year 2023/2024. For the period ended 30t' June 2022, programmes offered at DIT-Mwanza Campus were as follows; 2.1.3 Ordinary Diploma Programmes * Ordinary Diploma in Science and Laboratory Technology * Ordinary Diploma in Leather Products Technology 4 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT * Ordinary Diploma in Leather Processing Technology * Ordinary Diploma in Food Processing Technology 2.1.4 Certificates Programmes * ICT-Information and Communication Technology * LA-Laboratory Assistant * LGF-Leather Goods and Footwear 2.1.5 Short Courses * Basic Shoe Making * Leather Craft Tanning * Computer Applications, Maintenance and Repair The DIT-Mwanza Campus student's registration status for academic year 2021/2022 is presented in the table below; Table 1: Ordinary Diploma Programmes (NTA) 2021/22 2020/21 S/N Programme Female Male Total Female Male Tota 1 Ordinary Diploma in 21 30 51 23 38 61 Science and Laboratory Technology (NTA Level 4-6) 2 Ordinary Diploma in 15 32 47 12 29 41 Leather Products Technology (NTA Level 4-6) Table 2: National Vocational Awards (NVA) S/N Programme 2021/22 2020/21 Male 1 Male Total Female Male Total 1 ICT-Information and 1 Ml Tt 12 13 25 10 28 38 Communication Technology 2 LA-Laboratory Assistant 12 13 25 5 1 6 3 LGF-Leather Goods and 5 5 10 - - 0 Footwear Table 3: Short Course S/N Programme 2021/22 2020/21 Female Male Total Female Male Total 1 Basic shoe Making 76 55 131 113 73 186 2 Leather Tanning 7 14 21 48 63 111 5 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT 2.2 PROJECT MANAGEMENT The General Management of Mwanza campus is under the Campus Director who is appointed by the DIT Chief Executive Officer (Principal). The Director of the Campus is also a Centre Leader [CL] and is the Accounting Officer of the project who reports directly to World Bank (WB) through DIT Principal. The project established an Industrial Advisory Committee to advise on industrial issues and it is composed of members from the private sector/ industry, academia, and public sector. A Project Implementation Unit (PIU) is formed by the DIT Management led by Project Coordinator. 2.2.1 Industrial Advisory Committee As part of EASTRIP implementation, CELPAT has established an Industrial Advisory Committee (IAC), as stipulated in the World Bank Project Appraisal Document (PAD). IAC is responsible to provide CELPAT with information, advice and recommendations from a cross-section of leather industries and stakeholders on contemporary issues affecting Tanzania's Leather sector. According to guidelines, IAC has meet twice per year; in the year ended 30th June 2022, the IAC conducted two meetings (September 2021 and May 2022). 2.2.2 Functions of Industrial Advisory Committee It is proposed that, functions of the Industrial Advisory Committee shall include but not limited to the following: * Strategic curriculum reforms to incorporate the industry needs. * Support the DIT Council through Project Implementation Unit (PIU) to oversee its implementation by providing industry input as to how the country can achieve a full utilization of leather and leather products in the longer term and promote changes in behaviour and culture in the industry. * Coordinate the leather sector working group/associations to achieve stronger leadership in the industry and ownership of the problem and solutions related to the sector and advice the DIT Management accordingly. * Bring an industry specific perspective to keep CELPAT abreast of technical changes in the leather sector and identify future trends. * Advice and support the delivery of DIT's strategic plan to produce skilled Labour that will fit working effectively and efficiently in the leather industry. * Promote a culture change resulting in a leather industry/sector which recognizes and accepts high standards Et quality products as an integral part of successful business practice. * Promote better understanding and recognition of the risks associated with non- conformity of internationally accepted standards and lack of skilled human resources in the business perspective. * Identify impediments impacting employability and absorption of trained workforce available in the market and advise the DIT Management accordingly. * Assist in identification and acquisition (when appropriate) of external funding and resources to support students and programmes (scholarships, program materials, and other resources). 6 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT 2.2.3 Composition of Industrial Advisory Committee The Industrial Advisory Committee of the CELPAT shall constitute nine (9) members as follows: i. Deputy Principal Academic, Research and Consultancy (DPARC), ii. Industrial Liaison and Career Guidance (ILCG) officer, iii. Project Coordinator who shall serve as the secretary, and iv. Six (6) members who will be drawn from the broad range of leather industries/Institutions including but not limited to; * Tanzania Leather and Leather Products Association (TALLEPA), * Leather Association of Tanzania (LAT)), * Ministry of Industry and Trade (1), * Ministry of Livestock and Fisheries Development (1), * Sokoine University of Agriculture (SUA) (1), and * TVET Institutions 2.2.4 Appointment of Members The DPARC, Project Coordinator, and ILCG are members by virtue of their positions, whereas the six members were proposed by the PlU, and submit names/organizations to DIT Management Meeting for deliberation and recommendation for the approval by the DIT Machinery. Following the appointment of Dr. Richard Masika who was the member of IAC to the position of DIT Council Chairman, the PIU has proposed the name for his replacement and procedure for endorsement are under Institute machinery and wilt finally be submitted to WB for approval. Table 4: List of Committee Members S/N Name of Employer Position Education Area of Candidate Level Competence 1. I CoL.(Rtd) Industrialists and Former Director M.Eng. Manufacturing Joseph L Private sector General, Export - Computerized Simbakalia Processing Zone Numerical Authority Control (EPZA) 2. Joram P. LAT/ Office, DSM Executive BSc Leather I Wakari Secretary Technology 3. Mr. Gabriel Ministry of Assistant MSc Tropical Animal Sirili Livestock and Director - Production, Fisheries Livestock Animal Science Products, Food and Production Security and Nutrition 7 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT SIN Name of Employer Position Education Area of Candidate Level Competence 4. Eng. Peter K Ministry of Industrial MSc Process Et Nyang'ombe Industry and Trade Engineer Manufacturing Industries Technologies, Chemical ft Processing Eng. 5. Eng. Masud Kilimanjaro Managing MBA, Management of Omari International Director (BSc in leather Leather Industries Mechanical Industries, Company Limited, Engineering) Mechanical Moshi Kilimanjaro Engineering 2.2.5 Core Project Team (Project Implementation Unit - PIU) Project Coordinator will be Centre Leader (CL). The CELPAT Project Implementation Unit (PIU) was constituted by 6 members from the following focus areas; Technical person in leather and leather goods; Financial Specialist/Accountant, Procurement Specialist, Gender and Environmental Safeguard personnel and Industrial Liaison Officer and Monitoring and Evaluation personnel. The members of the PIU are appointed staff of DIT by the institute management. Table 5: List of Project Implementation Unit and their Roles 5/N Name Role 1 Dr. Albert G. Mmari Centre Leader and Project Coordinator CELPAT PROJECT IMPLEMENTATION UNIT MEMBERS 1 Mr. Issa Mwangosi Technical person in Leather Technology, Assistant Project Coordinator 2 Mr. Stephen Ngiga Financial Specialist/Accountant 3 Ms. Julieth Mwihambi Procurement Specialist 4 Mr. Augustine Mbitila Monitoring and Evaluation 5 Mr. Aidan Telesphory Industrial Liaison Officer 6 Ms. Doris Ngogo Gender and Environmental Safeguard 2.3 PROJECT BENEFICIARIES Table 6 below explains the project beneficiaries with respect to developed programs and other activities with current status of the benefit and scale of beneficiary (micro, small, and medium). Also, the table explains how the project will shift/change the current status: 8 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT Table 6: Project Beneficiaries S/N Beneficiary Scale of Current Related Expected Beneficiary Status Developed/Reviewed Status Program Change 1 Leather and Medium to Lack of a Tailor made Qualified and leather products Large skilled programs as competent Industries manpower requested by man power industries and * long term programs 2 Leather and Micro to Lack of skills, Tailor made programs Skilled labour Leather products Small design and force manufacturers improvement technologies 3 Students/ Beginners Lack of skills Long term programs Qualified and Trainees (secondary competent school graduates graduates) a TVET (NVA Ill levels) graduates 4 Public and private NVA level 11 Shortage of * Long term Academic TVET institutions skilled staff programs progression * Tailor made to higher programs Levels (NVA III) leavers Unemployed, employed informally employed 2.3.1 Stakeholders of the Centre The project sustainability depends on internal and external stakeholders. In that view CELPAT plans to generate revenue and overcome running costs/operating expenses for long term project sustainability. In this project, DIT Mwanza Campus proposes to use a number of revenue sources, including: Tuition fees, Charges from the consultancy services after teachers and staff have been trained, Contract tanning services to Micro, Small and Medium enterprises (MSME's), Charges on use of equipment /facilities, products development to industrial level, sales of leather articles and any possible funds 9 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT from development partners/donors. The main Project stakeholders are private and government stakeholders. 2.3.2 Private sector stakeholders Table 7: Footwear and leather goods stakeholders Stakeholder Current status Roles in the project Students/Trainees Low/lack of skills V Labor/work force to the market End user/consumers Low effective demand V Secondary demand for skills V demand for footwear and leather goods Export market High effective V Demand for high quality leather demand/Lucrative and leather goods market Footwear and leather goods Operating but with $ Primary demand for skills manufacturers: lack/inefficient / Industrial attachments * Kilimanjaro International skilled labour V guest/visiting lectures, Leather Company V Curriculum development, Industries limited V Form part of CoE Advisory board * Woiso Shoes Company (50%) * Bora Industries * Ital shoe * TAUMA * JAET Leather Products Ltd * Micro, Small, Medium Enterprises (MSMEs) * Leather Association of Tanzania * Tanzania Leather Products Producers Association (TALEPPA) Table 8: Tanneries (Leather processing) stakeholders Stakeholder Current status Role to play in the project Moshi Tannery Operating to wet-blue V Primary demand for skills and finished leather V Students industrial attachment Ace Leather Tannery Operating to Finished V guest/visiting lectures, Leather V Curriculum development, Himo Tannery Operating, to finished V Form part of CoE Advisory leather board (50%) 10 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT Stakeholder Current status Role to play in the project Africa Tannery (Mwanza Not operating Tannery) Lake Trade tanners (Kibaha, Not operating Coast Region) Salex Tanneries (Arusha) Not operating Phiss Tanneries LTD Operating, to finished (Bagamoyo, Coast Region) leather Xhan zhu (Shinyanga) Not operating Afro Leather Industries Not operating (DSM) Table 9: Raw material supply chain Stakeholders Stakeholder Current status Role to play in the project Ranches (e.g. MABUKI) More upcoming ranches Upgrading quality of livestock Abattoirs (e.g. DSM and I New investment going into Hides and skins Dodoma abattoirs, Nyakato abattoirs Improvement - Mwanza) TATA Chemical supplier Chemical Supply DESBRO Chemical supplier Chemical Supply 2.3.3 Public sector stakeholders Table 10: Partner Institution Stakeholder Current status Role to play in the project Ethiopian Technical Conduct training, research and V Main partner University (ETU), Ethiopia consultancy on leather and Leather V Staff Skills upgrading products technology V Consultancy V Staff Exchange program Leather Industry Conduct training, research and V Main partner Development Institute consultancy on leather and Leather / Staff Skills upgrading (LIDI) products technology V Consultancy $ Exchange program Table 11: Regulatory bodies Stakeholder Current status Role to play in the project NACTE low number of accredited institutions in registration and accreditation of leather technologies TVET institutes 11 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT ERB Low number of licensed engineers regulating and Licensing engineering activities NEMC Environmental emission challenge Monitor and regulation of environmental activities Table 12: Livestock development Institutions Stakeholder Current status Role to play in the project VETA Dodoma Lack of skills in hides/skins improve the quality of hides and skin improvement produced in local abattoirs / Exchange program / Industrial attachment Table 13: Training, Research and development Institutions Stakeholder Current status Role to play in the project Textile Department- Provide courses on Textile / Student Exchange program CoET technology V Curriculum development / Design and Research VETA Dakawa Low NTA level in leather V Creates demand of graduate studies in lower levels for further studies in footwear and leather goods / Student industrial attachment V Curriculum development SUA Provide training in bio- / Exchange program processing V Industrial attachment / Curriculum development TIRDO Low number of research in V Research on Leather leather TEMDO Financing researches on / Research on industry industrial development Table 14: Policy Implementation institutions Stakeholder Current status Role to play in the project SIDO Support SME's in industry / Industrial policy sector implementation / Policy implementation / Business development services 12 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT Table 15: Responsible ministries Stakeholder Current status Role to play in the project Ministry of Education, Science Responsible for all higher / Autonomy of the and Technology learning Institutions Institutions V Policy formulation / Signatory body Ministry of Industry and Trade Responsible for all matters V Policy formulation relating industry and trade Ministry of Livestock and Responsible for livestock V Policy formulation Fisheries Development development / Signatory body 2.4 PROGRESS ON IMPLEMENTATION OF THE PROJECT The East Africa Skills for Transformation and Regional Integration Project (EASTRIP) was launched and became effective in May 2019, the date during which DIT Mwanza Campus effectively started the implementation of its project activities. However, the disbursement of 30% advance funds for smooth, effective and efficient implementation of the project by CELPAT amounting to TZS 11,105,250,000 which is 30% of the total funds (TZS 37,017,500,000) was received in DIT BOT (IDA Credit A/C) account in February 2020. This delay in disbursement of the 30% advance funds (seed money) from the World Bank and the Campus's financial constraints, led to most of the project activities to stall. The received 30% of funds was divided into two portions for effective and efficient management and utilization of the funds. i. TZS 5,961,105,020 is left in the DITIBOT Account. This is earmarked for the construction of the Academic Building, and it will be disbursed to commercial bank (CRDB Nyanza Branch) at the start of the construction of the said building. ii. TZS 5,182,450,000 was transferred to the CRDB Nyanza Branch which is directly controlled by DIT Mwanza/CELPAT. 2.5 COMMENTARY ON THE FINANCIAL STATEMENTS 1. INTRODUCTION The Financial Statements for the year 2021/2022 provide a record of the East Africa Skills for Transformation and Regional Integration Project (EASTRIP), Statement of Financial Performance, Statement of Financial Position, Cash Flow Statement, Statement of Change in Net Assets, Statement of Comparison of Budget and Actual Amounts and Notes to the Financial Statements. 2. OVERVIEW OF FINANCIAL STATEMENTS The Financial Statements present; Statement of Financial Position, Statement of Financial Performance, Statement of Changes in Net Assets, Cash Flow Statement, Statement of Comparison of Budget and Actual amounts, Significant Accounting policies and Notes to the Financial Statements as at 30 June, 2022. 13 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT 3. FINANCIAL POSITION Financial Position comprises, Receivables, Cash and Cash equivalents, Property, Plant and Equipment, Work in Progress, Payables, Deferred Income, and Net Assets. 3.1. Cash and Cash Equivalents A total of TZS 8,617,784,660.19 remained as Cash and Cash Equivalents at closing date which comprised TZS 5,961,105,020 deposited at Designated Account at Bank of Tanzania (BOT) and TZS 2,656,679,640.19 deposited at CRDB Bank, Nyanza Branch Mwanza. 3.2. Receivables A total of TZS 99,389,996 remained as balance of receivables as at 30 June 2022 comprises safari imprest and purchase imprest taken by staff during the year. 3.3. Payables Payables for the year under review were TZS 31,140,000 which was unpaid audit reimbursable at DIT Mwanza Campus. 3.4. Deferred income Total funds amounted to TZS 8,559,356,190.19 was not amortized as at 30 June 2022 which is the unspent balance project funds receipts from IDA - World Bank. 3.5. Net Assets Net assets were TZS 597,707,564.80 for the year ended 30 June 2022. 4. FINANCIAL PERFORMANCE Financial Performance comprises of; Amortized Revenue, Gain from foreign currency translation, Training Costs, Operating Costs, Administrative Costs and Depreciation Expenses. 4.1. REVENUE Amortized Revenue During the year under review revenue amounting to TZS 1,853,614,637.81 was amortized. 4.2. Gain from foreign currency translation Gain from foreign currency translation was TZS 13,561,470. 4.3. EXPENSES 4.3.1. Training costs Actual costs incurred for the year under review for Training Costs was TZS 340,703,651.81. 14 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT 4.3.2. Operating Costs During the year under review, actual costs incurred for Operating Costs was TZS 516,541,812.00. 4.3.3. Administrative Costs. For the year under review TZS 491,052,564.00 was cost in respect of Administrative Costs. 4.3.4. Depreciation Expenses during the year was TZS 41,981,113.20. 4.3.5. Surplus/(Deficit) for the year Surplus for the year was TZS 476,896,966.80. 5. AUDITORS The Controller and Auditor-General (CAG) is the statutory auditor for the Ministry pursuant to the provisions of Article 143 of the Constitution of the United Republic of Tanzania of 1977 (revised 2000), Section 9 - 12 of the Public Audit Act, 2008 and Public Finance Act No 6 of 2001 (revised 2004). Dr. Ri rd J. Masika Prof. Preksedis Mar Ndomba chairpers n Principal Date: r........ . Date:............ U .. 15 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT STATEMENT OF MANAGEMENT RESPONSIBILITY ON THE EASTRIP FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2022 The Management of the Dar es Salaam Institute of Technology has prepared these financial statements in accordance with the provisions of Sect 25(4) of the Public Finance Act. No 6 of 2001 (Revised 2004). The financial statements as required by the said Act are presented in a manner consistent with the International Public-Sector Accounting Standards (IPSASs) - Accrual Basis of Accounting. The Governing Council of Dar es Salaam institute of Technology is responsible for establishing and maintaining a system of effective Internal Control designed to provide reasonable assurance that the transactions recorded in the accounts are within the statutory authority and that they contain receipts and uses of all public financial resources by Dar es Salaam Institute of Technology. To the best of my knowledge, the system of Internal Control has operated adequately throughout the reporting period and that the financial statements and underlying records provide a reasonable basis for the preparation of the financial statements for the 2021/2022 financial year. I accept responsibility for the integrity of the financial statements, the information they contain and their compliance with the Public Finance Act No. 6 of 2001 (revised 2004) and instructions issued by Treasury in respect of the year under review. Prof. Preksedis Marco Ndomba Principal Date:..... D .. 16 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT DECLARATION OF THE HEAD OF FINANCE FOR THE YEAR ENDED 30 JUNE 2022 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 responsible for the preparation of financial statements of the entity concerned. It is the duty of a Professional Accountant to assist the Governing Council and 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 Governing Council as under Governing Council Responsibility Statement on the earlier page. I, Rajabu Masoud Mirambo, being the Financial Specialist of EASTRIP hereby acknowledge my responsibility of ensuring that financial statements for the year ended 30th June, 2022 have been prepared in compliance with International Public Sector Accounting Standards (IPSASs). I, thus confirm that the financial statements present a true and fair view position of the Dar es Salaam Institute of Technology as on that date and that they have been prepared based on property maintained financial records. Name: Rajabu Ma Mirambo Signature: Position: Financial Specialist NBAA Membership No.: ACPA 1481 Date: of720Z3 17 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 ASSETS Notes 2021/22 2020/21 TZS TZS CURRENT ASSETS Cash and Cash Equivalent 6 8,617,784,660.19 10,457,837,828.00 Receivables 5 99,389,996.00 96,123,598.00 Total 8,717,174,656.19 10,553,961,426.00 NON-CURRENT ASSETS Property, Plant and Equipment 4 167,705,452.80 0.00 Work in Progress 15 303,323,646.00 0.00 Total 471,029,098.80 0.00 TOTAL ASSETS 9,188,203,754.99 10,553,961,426.00 LIABILITIES CURRENT LIABILITIES Payables 7 31,140,000.00 20,180,000.00 Deferred Income 8 8,559,356,190.19 10,412,970,828.00 Total 8,590,496,190.19 10,433,150,828.00 NET ASSETS 597,707,564.80 120,810,598.00 Accumulated Surplus 597,707,564.80 120,810,598.00 TOTAL NET ASSETS 597,7 564.80 120,810,598.00 Dr Rich4d J. Masika Prof. Preksedis Marco Ndomba Chairperson Principal Date:.Date:....... . 18 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2022 Notes 2021/22 2020/21 TZS TZS REVENUE Amortized Revenue 9 1,853,614,637.81 536,918,242.00 Gain from Foreign Currency TransLation 10 13,561,470.00 24,687,000.00 TOTAL 1,867,176,107.81 561,605,242.00 EXPENSES Training Costs 12 340,703,651.81 39,424,771.00 Operating Costs 13 516,541,812.00 195,088,290.00 Administrative Costs 14 491,052,564.00 252,493,091.00 Depreciation Expense 4 41,981,113.20 0.00 TOTAL 1,390,279,141.01 487,006,152.00 SURPLUS FOR THE YEAR 476,896,966.80 74,599,090.00 Dr Rich d J. Masika Prof. Preksedis Marco Ndomba Chairperso Principal Date:.. ................. Date:.. ..... 19 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2022 2021/22 TZS Balance 1 July 2021 120,810,598.00 Surplus for the Year 476,896,966.80 Balance 30 June 2022 597,707,564.80 2020/21 TZS Balance 1 July 2020 46,211,508.00 Surplus for the Year 74,599,090.00 Balance 30 June 2021 120,810,598.00 Dr Richa)rA J. Masika Prof. Preksedis Marco Ndomba Chairperso Principal Date: . / ........ Date: ..... 20 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2022 2021/22 2020/21 CASH FLOW FROM OPERATING ACTIVITIES TZS TZS RECEIPTS Notes Cash Receipts from IDA -WB 0.00 0.00 Total 0.00 0.00 PAYMENTS Training Costs 12 (340,703,651.81) (28,782,221.00) Operating Costs 13 (516,541,812.00) (195,088,290.00) Administrative Costs 14 (483,358,962.00) (304,862,731.00) Total (1,340,604,425.81) (528,733,242.00) Net Cash Flows from Operating Activities (1,340,604,425.81) (528,733,242.00) CASH FLOWS FROM INVESTING ACTIVITIES Office Equipment 4 (13,020,000.00) 0.00 Motor Vehicle 4 (196,666,566.00) 0.00 Work in Progress 15 (303,323,646.00) 0.00 Net Cash Flows From Investing Activities (513,010,212.00) 0.00 Net Change in Cash and Cash Equivalents (1,853,614,637.81) (528,733,242.00) Cash and Cash equivalents at the beginning of the year 10,457,837,828.00 10,961,884,070.00 Gain on Foreign Currency Translation 11 13,561,470.00 24,687,000.00 Cash and Cash equivalents at the end of the year 8,617,784,660.19 10,457,837,828.00 dJ.Prof. Preksedis Marco Ndomba hare Principal 21 L .�v����a = � '�_ � r� ��•v-р� -� '}+ с? о ал � N р й Г о'•' го +� ь' о г о о� +л Ш р:i� (�[s � t i � и i Q- � С а и �� гб � � п3 tj и гЕ гб � и � �, � С�•� Ш� z Х�� , � р�.� li Г' 0� й рП р L U � i 0 и Ол [э Х р�+.+ С N и+� �� о и[д р� О р •� � О О N у' v ч�`'.- грU и р ui Q N� р�� OJ р+�.r � С� N > р �ц � N +.+ р Е� и+� N Ш N L О� �� р а7 й�� t�.� О гиа Ол � а0 >�+-�+ � 3l � Е х Е ь� � и tJpб С� С1 W7 П1 • р V .С С и,ьа •р) ,� 'ц i1 > р �+�л и � О гд О и � р- `� � а1 С�� Ои � О� •� �^- � Ш О�. а � � ц -р � р � � 'О U Qi � � ,F+ О С > � L R Q р '� � _ � ч-- гии' й � � грб � � о � й � й > � д.L+ •� � w ro Ш +-�' ° Е ° Д � 'i7 � � � р с� с+� о`���' с^ го р о�о 3^ v � м F с•� и', � � � С.С �. 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V"р !л V I Q С и� ��� о � й V ш�. д Ш и] ;� гб , и р � t7 С7 N � с.р.У � 7 й"р � й! 5 sрл ;��R3 F-- .Q L] т� N� L1 у д Q 0�0 l°i S] N -- - �� -- -- v3 р � д р� � f�I г6 Н о � О � р Ia �о r � р i� о О О+ 0�0 'pN. � �О �� й � i� � � i г �Сэ � i а � '? � о' г.г о� I � � �л о� I � •о а й�� � й .р м ао I м со м� м a�i г0 �,.� и °сп° А °�г,° � � � � м �¢+ �� N � � N е- �, 1\ © w Т� � и й г о � , ' °° ш ао �� � �О а � а � О с� 'г� с� .- а О� ш �� о р а°• ао � r:i `n Х � � � � о й 'rt й � `"'. f�Wm �- � м iп м О � Z� С О го •р •" с7 � м гл v �I 1i р и .о � , ао t- �Ор �а � ri ° 'и � и м', шОш3 z � � "•` , "' � � т и�а о 1 �F� � � �� 1- и а ага -' � � ш- ш � сл а! о о м �- с о w а � и ~! а° о оа о �" � ао �- Q� с opi� о I v !: о � �иV Q � i � rn а�о v р � !+-Е а F,,,, т м+ �п и-� 1� м � N ш � tгя � а г с� � . о д� с� г � � т о 1 г о О r"'.г °о �°в °о .�а v � о°о � +� ~' о' о о а v оо .о о � Ф о 1в '� � г.� о� г'а оо г� .о о т О т � � � N �� м , г� � и а� v ш с ао" °'., О 'оп ! � о , '� � г" г О ш I� w � 1- - --- - Fa- и � � , и и � F ; � 'и � гСб Н Q д.. I�' � � L й � 1� С 4.1 Ш р . '°_� �, G lWJ II'Ш i� и и О и �� С 43"ыi �' и � ц Q7 L� � � � С а.�.+ °�� , д Q Q'' I�� 0'' J W С �i� и ++ й L � J ��' v а�•� � � •� v a �а � >- �� � �� � р- •� r ;� о �� а� о �а 1¢ г� a�i - - �. UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2022 GENERAL INFORMATION Institute Address DIT - Mwanza Campus, P.O. Box 2525, Mwanza Institute Bankers Bank of Tanzania, P.O Box 2939, Dar es Salaam, Tanzania CRDB Bank P[c, Nyanza Branch, P.O. Box 5185, Mwanza. Institute Auditors The ControLler and Auditor General, National Audit Office, Audit House, 4 Ukaguziroad, P.o.Box 950, 41104 TambukareLi, Dodoma, Tanzania 23 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION The Financial statements are prepared in accordance with International Public Sector Accounting Standards (IPSAS-Accrual Basis of Accounting) and comply with the Public Finance Act, 2001 (Revised 2020). The financial statements have been prepared on the basis of historical cost basis, unless stated otherwise. The cash flows statement is prepared using the direct method. The financial statements are prepared on an accrual basis. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES JUDGMENTS, ESTIMATES AND ASSUMPTIONS The Principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated. 3.1. Presentation Currency The Financial Statements are presented in Tanzanian shillings. Balances carried out in foreign currency has been translated using BoT exchange rate as at 30 June 2022 of TZS 2,293.00/USD. 3.2. Cash and Cash Equivalents Cash and Cash Equivalents comprise cash in hand and deposits held with bank. 3.3. Revenue Recognition The Project receives its revenue from IDA- World Bank and revenue is accounted for on accrual basis. Grants from the World Bank are revenue from non-exchange transactions and are recognized in the financial statements when it is probable that future economic benefit will flow to the project and if that benefits can be reliably measured. IPSAS 23 Para 44 required that an inflow of resources from a non-exchange transaction recognized as an asset shall be recognized as revenue, except to the extent that a liability is also recognized in respect of the same inflow. Grants are recognised as income when such grants have been received and expensed to match expenditure incurred with Grants received. 3.4. Expenses Expenses are decreases in economic benefits or service potential during the reporting year in the form of outflows or consumption of assets or incurrence of liabilities that result in decreases in net assets and are recognized on an accrual basis when goods are delivered and services are rendered, regardless of the terms of payment. 3.5. Payables and Accruals Accounts payable include invoices received from suppliers not yet settled are valued at fair value through. Accruals are liabilities for the cost of goods and services that have been received by or provided to the Project during the year and which have not been invoiced by suppliers at the reporting date. 24 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT 3.6. Deferred Income These are unspent fund of EASTRIP activities at the year end. 3.7. Provisions Provisions are recognized when the Project has a present obligation (Legat or Constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Project expects some or all of a provision to be reimbursed, the expense relating to any provision is presented in surplus or deficit net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current rate that reflects where appropriate the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. 3.8. Taxes The project being a Government project is exempted from tax on the surplus/deficits for the year. 3.9. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the disclosed amounts of assets within the next financial year are depreciation of assets and amortization of assets. 3.10. Depreciation rates The policy relating to depreciation charge is adopted from the Public Asset Management Guidelines using a straight line to write off the cost of each asset value over its estimated useful life at a given rate per annum as listed below: . Motor vehicles - 20% . Computer - 25% Safe (Equipment) - 14% 3.11. Risk Management The Project is subject to a number of financial risks: foreign currency risk. i) Foreign Currency Risk The project's exposure to foreign exchange risks arises from purchases, assets and liabilities denominated in currency other than the functional currency and translation of transactions during reporting. As a result, the Project is subject to transaction and translation exposure from fluctuations in foreign currency exchange rates; ii) Economic Environment Risk Risks related to Project's economic environment. Factors to consider include Inflation and Foreign exchange fluctuations. 25 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT iii) Political environment Risk Risks emanating from political factors and decisions that have an impact on the Project's mandate and operations, possible factors to consider include political pressure; Local, Provincial and National elections; and Changes in office bearers. iv) Human resources Risk Risks that relate to human resources of the Project, these risks can have an effect on the Project's human capital with regard to: Integrity and honesty; Employee weLLness; Employee relations and Retention. v) Procurement Risk Risks relating to the Project material resources, possible aspects to consider include Availability of material; Costs and means of acquiring/procuring resources; and the wastage of material resources. Controls in place are as Transparency method, identifying the needs, developing specifications, contract documents, negotiating the contract, management the contract, evaluating offers, identifying the preferred supplier and selecting a procurement method. Authorization Date The Financial Statements were authorized for audit on 30 September, 2022 by the Accounting Officer. The Financial Statements will be ready for issue upon signed by the Controller and Auditor General. 26 Е�1 о�0 О 4 о о0 � ni � г.Nг� о °о И а cv о п1 ,д. 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F UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 2020/22 2020/21 TZS TZS Note 5 Receivables Purchase Imprest 34,022,304.00 6,995,000.00 Safari Imprest 65,367,692.00 89,128,598-00 99,389,996.00 96,123,598.00 Note 6 Cash and Cash Equivalents Designated Account at BOT 5,961,105,020.00 5,947,487,000.00 Commercial Bank -CRDB Nyanza 4,510,350,828.00 Mwanza 2,656,679,640.19 8,617,784,660.19 10,457,837,828.00 Note 7 Payables Audit Reimbursable Cost Payable - 20,080,000.00 NAOT 31,140,000.00 PayabLes to DIT Mwanza Campus 100,000.00 31,140,000.00 20,180,000.00 Note 8 Deferred Income (Revenue) Opening Balance 10,412,970,828.00 10,949,889,070.00 Cash Receipts from IDA - WB Total Grants Available 10,412,970,828.00 10,949,889,070.00 Less: Grant Amortized 1,853,614,637.81 536,918,242.00 Closing Balance 8,559,356,190.19 10,412,970,828.00 Note 9 Revenue Grant Amortized Training Costs 340,703,651.81 28,782,221.00 Operating Costs 516,541,812.0 195,088,290.00 Administrative Costs 483,358,962.0 304,862,731.00 Office Equipment 13,020,000.00 Design & Supervision 303,323,646.00 Motor Vehicle A/C 196,666,566.00 Other 8,185,000.00 1,853,614,637.81 536,918,242.00 28 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 2020/22 2020/21 TZS TZS 10 Gain from Foreign Currency Translation Bank Balance for BoT Deposited 2,600,000 2,600,000 Funds (USD) BOT Exchange Rate as at 30-06- 2,293 2,287.50 2022 BOT Bank Balance (TZS) 5,961,800,000.00 5,947,487,000 Cash Book Balance (TZ5) (5,948,238,530.00) 5,922,800,000 Gain from Foreign Currency 13,561,470 24,687,000.00 Translation Note 12 Training Costs Staff Training 340,703,651.81 33,079,171.00 Training needs to VETA - 6,345,600.00 Expenses Total Training Costs Incurred 340,703,651.81 39,424,771.00 Adjustment for Change in -10,642,550.00 Imprest Total Training Costs Paid 340,703,651.81 28,782,221.00 Note 13 Operating Costs Advertising Expenses - 22,426,040.00 Consultative Meetings with 33,720,600.00 Industries Curriculum Development 99,686,111.00 128,667,650.00 Expenses Tracer Study Expenses 51,818,900.00 3,715,000.00 Printing & Stationery 3,638,696.00 1,377,564.00 Consultative Meetings with 0.00 1,320,000.00 VETA Technical Assistance 220,232,850.00 0.00 Examination Expenses 1,190,000 0 Field Training Expenses 940,000.00 0 Short Course 1,293,400.00 0 Outreaching & Support for Non- 18,177,600.00 0 Project Legal E Professional fees 3,115,000.00 0.00 Staff Welfare 3,480,000.00 0.00 Travelling Expenses 18,442,831.00 0 Industrial Attachment 12,220,000.00 0 Teaching Expenses 490,000.00 0 29 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT Staff Exchange 50,391,674.00 0 Student Exchange 31,424,750.00 0 Total Operating Costs Paid 516,541,812 195,088,290 30 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022 2020/22 2020/21 TZS TZS Note 14 Administrative Costs Audit Reimbursable Expenses 31,140,000.00 20,080,000.00 Telephone Expenses 7,800,000.00 10,150,000.00 Motor Vehicles Expenses 14,840,792.00 10,036,088.00 Advisory Committee Expenses 40,056,820.00 61,456,410.00 Stationery Expenses - 8,829,200.00 Budget Expenses 70,704,227.00 29,878,660.00 Gender Expenses 8,931,300.00 13,340,000.00 Travelling Expenses 0.00 71,524,600.00 Advertising 5,768,000.00 - Advertising 0.00 17,091,500.00 Staff Planning a Incentives 30,837,668.00 6,810,000.00 Building Upkeep 16,851,400.00 1,919,069.00 Machine Repair 1,839,800.00 Conferences & Seminars 12,133,603.00 Exhibitions Expenses 46,781,628.00 5,239,000.00 Bank Charges 3,842,874.00 - Institutionalizing a Industrial Linkage 108,663,927.00 Tender Board Meetings 5,807,500.00 0.00 Governance a Consultative Meetings 85,053,026.00 | Administrative Costs Incurred 491,052,565.00 252,493,091.00 Adjustment for Change in Payables (10,960,000.00) (8,185,000.00) Adjustment for Change in Imprest 3,266,398.00 60,554,640.00 Administrative Costs Paid 483,358,962.00 304,862,731.00 Note 15 Work in Progress Work in Progress relates to cost incurred for Consultancy Work in respect of construction of the Academic Building TZS 303,323,646.00. 31 UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY MWANZA CAMPUS - EASTRIP WORLD BANK PROJECT Note 16 Reconciliation of Statement of Comparison of Budget and Actual Amounts and Statement of Cash Flows Training Operating Administration Investing Total Description (TZS) (TZS) (TZS) (TZS) (TZS) Actual Amount on Comparable Basis as 483,35896 Presented in the Budget 340,703,651.81 516,541,832 513,010,212 1,853,614,627.81 and Actual Comparative Statement Basis Differences Timing Differences Entity Difference Actual Amount in the Statement of Cash 340,703,651.81 516,541,832 483,358,962 513,010,212 1,853,614,627.81 Flows Note 17 Reconciliation of Net Cash Flows from Operating Activities to Net Surplus from Cash Flows 2021/22 2020/21 Surplus (Deficit) for the Year 476,896,967 74,599,090 Add: Depreciation 41,981,113 - Less: Gain from exchange rate transLation (13,561,470) (24,687,000) Movement of Working Capital Less: Increase in Receivables (3,266,398) (49,912,090) Add: Increase in Payables 10,960,000 8,185,000 Less: Decrease in Deferred Revenue (1,853,614,638) (536,918,242) Net Cash Flow from Operating Activities (1,340,575,198) (528,733,240) 32