EAST AFRICAN COMMUNITY AUDIT COMMISSION JUMUYAYAAFRIKA MASHAiRIIK REPORT OF THE AUDIT COMMISSION ON THE FINANCIAL STATEMENTS OF THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 15 DECEMBER 2021 Page 1 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 TABLE OF CONTENT LIST OF ABBRE VIATIONS ..................................................................................... 3 1.0 GENERAL INFORMATION ................................-.-.-..4...................................4 2.0 STATEMENT OF PURPOSE ................................................................................. 5 3.0 STATEMENT OF THE SECRETARY GENERAL'S RESPONSIBILITIES................12 4.0 REPORT OF THE AUDIT COMMISSION ON THE FINANCIAL STATEMENTS OF THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-STAT-DHRP) FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 ........................14 5.0 FINANCIAL STATEMENTS FOR THE EAC STATISTIC DEVELOPMENT AND HARMONISATION REGIONAL PROJECT FOR THE YEAR ENDED 30 JUNE 2021.........18 5.1 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 ...........................18 5.2 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2021 19 5.3 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2021..................20 5.4 STATEMENT OF CHANGES IN NET ASSETS/EQUITY AT 30 JUNE 2021 ..............21 5.5 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30TH JUNE 2021..............................................................22 5.6 STATEMENT OF SPECIAL ACCOUNT ACTIVITY FOR THE PERIOD ENDED 30TH JUNE 2021............................................................ ............................ 23 5.7 EAC Stat DHRP FUND ACCOUNTABILITY STATEMENT AS AT 30TH JUNE 202123 5.8 STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION.......................24 5.9 KEY JUDGEMENTS AND SOURCES OF ESTIMATION.......................................25 5.10 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES...................................26 5.11 NOTES TO THE FINANCIAL STATEMENTS......................................................31 East African Community - Audit Commission 2021 Page 2 of34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 LIST OF ABBREVIATIONS BIF - Burundi Francs CM - Common Market CU - Customs Union EAC - East African Community EACA -East African Competition Authority KSH - Kenya Shilling LPO - Local Purchase Order RWF - Rwanda Franc SC - Secretary General TSH - Tanzania Shilling USH - Uganda Shilling VAT - Value Added Tax East African Community - Audit Commission 2021 Page 3 of 34 FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 1.0 GENERAL INFORMATION HEADQUARTERS AND PLACE OF BUSINESS: The place of office for the EAC Statistic Development and Harmonization Regional Project is at East African Community Headquarters, EAC Close, Africa Mashariki Road, Arusha. P.O. Box 1096, Arusha TANZANIA Website: www.eacomipetion.org Email: info@eacompetition.org TEL: +255 27 2162100 BANKERS: Kenya Commercial Bank (T) Limited Arusha Branch Joe Maeda Street/Victoria Building P.O BOX 3053 ARUSHA TANZANIA Secretary General, East African Community, P.O BOX 1906, EAC Close, Afrika Mashariki Road, Arusha - Tanzania AUDITOR: The Accounts of Stat-DHRP are audited by the Audit Commission of EAC as provided for in the Article 134 of the Treaty for the establishment of the East African Community. Page 4 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 2.0 STATEMENT OF PURPOSE Background to the EAC Statistics Development and Harmonization Regional Project INTRODUCTION The main objective of the East African Community (EAC) is to widen and deepen economic, political, social, and cultural integration of East African countries. To achieve these objectives, the key building blocks are the Customs Union, Common Market, Monetary Union, and Ultimately the Political Federation. In the run-up to achieving a single currency, the EAC Partner States aim to harmonise monetary and fiscal policies; harmonise financial, payment and settlement systems; harmonise financial accounting and reporting practices; harmonise policies and standards on Statistical Information; and, establish an East African Central Bank. The East African Monetary Union Protocal (EAMU) was signed in November 2013. The EAMU Protocal , among other things, requires the Partner States to Develop and Adopt Common Methods, concepts, definitions and classifications for compiling, analysing and dessiminating the statistics necessary for the proper functioning of the Monetary Union, while observing Internationally Accepatble best practices. To support implementation of this requirement, the EAC Secretariat secured a grant from World Bank to implement a 5-years Project ; the EAC Statistics Development and Harmonization Regional Project (EAC/Stat-DHRP). The Project Development Objectives (PDO) The objective of this project is to strengthen the capacity of the National Statistical Offices (NSO) of the EAC Partner States and the EAC Secretariat to produce harmonized and quality statistics in support of the regional integration and development through Human Resources and Institutional Developments; and improved Data Quality, Comparability, Dissemination, and Use. In 2013 the EAC Secretariat in collaboration with Partner States started implementing its first Regional Statistical Development Plan (RSDPI), covering the period 2012/13-2016/17. Regional Statistic Development Plan( RSDPI) covered the following three main areas: a) Harmonization of statistics, which involves harmonization of statistical methodologies and tools to produce comparable, accurate, and up-to-date statistics to inform both national development processes and the process of regional integration b) Development of an EAC statistical database with harmonized data covering the Community's socioeconomic statistics indicators and establishment of an EAC statistical portal accessible to users East African Community - Audit Commission 2021 Page 5 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 c) Statistical capacity-building initiatives to address the shortage of statisticians and experts in the region in areas such as national accounts, agricultural statistics, household surveys, trade statistics, financial statistics, and price statistics. With financial support from the World Bank for a tune of US$ 20,000,000, the East African Community is implementing the Stat-DHRP. The Stat-DHRP is structured into the following three components: 1. Human Resources and Institutional Developments (US$ 10.7 million): The aim of this component is to support the operationalization of the East African Statistics Bureau to start fulfilling its mandate; accelerate and deepen statistical reforms in Partner States; and build specialized skills needed in the region in priority statistics areas. It comprises of two sub-components as below. a. Capacity Building of the Statistics Department and its Institutional Development (US$ 6.1 million) b. Human Resources Development in Partner States (US$ 4.6 million) 2. Improved Data Quality, Comparability, Dissemination, and Use (US$ 7.3 million): this component is primarily to support the process of harmonizing data collection instruments and methodologies used by the Partner States; and produce agreed harmonized approaches, in line with best practices and international standards that will become the rule to be followed by Partner States in compiling their official statistics. It comprises of two sub-components as below. a. Improved Data Quality and Comparability (US$ 5.5 million) b. Improved data dissemination and use (US$ 1.8 million) c. Project Management (US$ 2.0 million): A project implementation unit (PIU) will be hosted at the EAC Secretariat until the EASB is operational after which the project will be transferred into the EASB. It is comprised of a Project Manager, a Procurement Specialist, a Financial Management Specialist, an Accountant, and an Administrative Assistant. East African Community - Audit Commission 2021 Page 6 of34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 3. Project Management A Project Implementation Unit (PIU) will be integrated in the Secretariat of the EAC, where the Statistics Department is currently located, until the Regional Bureau of Statistics is operational, and then be transferred to the bureau. This PIU will be responsible for program management, including procurement, financial management (FM), and M&E. The PIU will also be responsible for coordination between NSOs, organizing training events, and monitoring progress. It will also be responsible for quality control and preparing in-house analysis. The dedicated project team will comprise at least a project coordinator, a project manager, a procurement specialist, a financial specialist, an accountant, and an administrative officer. Funding from this component will therefore be used to finance the PIU activities and to wholly fund external EAC-recruited PIU personnel. The project will also support the holding of two meetings of the project's Steering Committee every year. The EAC Secretariat will provide secretarial services to the committee. East African Community -Audit Commission 2021 Page 7 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 STATUS OF FINANCIAL IMPLEMENTATION OF THE 2020/21 PROJECT WORKPLAN Summary of executed technical activities 2020/2021 A number of activities were implemented as detailed in the Progress Report: * External Sector Statistics (ESS) * Consumer Price indices (CPI) * Poverty Statistics * National Accounts Statistics (NAS) * Monetary and Financial Statistics (MFS)/Financial Soundness Indicators (FSls) * Agriculture, food and Nutrition * Communication & advocacy * Government Finance Statistics (GFS) ACHEIVEMENT DURING THE YEAR 2020/2021 / Retreat to orient Stat-DHRP staff on the Statistics Department's objectives and operational frameworks V Kenya Supported in developing a roadmap for alignment of the KSDS to the EAC RSDPII ' Capital Market Infrastructure Training for Tanzania, Rwanda, Burundi and Uganda / Acquisition of equipment and furniture for training centers (Kigali, Makerere and Dar es Salaam waiting for delivery V students undertaking masters on official statistics annually Facilitated V National and regional working cessions on guidelines for CPI, ESS, Poverty, MFS, GSF, Agriculture, Food & Nutrition; National Accounts; Communication and Advocacy conducted / Technical assistance CPI support to NBS Tanzania provided V CPI processor for National Bureau of Statistics of Tanzania developed V The design of the EAC ODP page for ESS was completed and may be launched in April 2022 V Tests for the Trade statistics database have started with available data V The same system will be customized to received data from other areas / Participate in African Statistics Day at National level / license for data analyses software procured / Review and support improvement of NSOs websites for data dissemination done for South Sudan East African Community -Audit Commission 2021 Page 8 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 / Regional workshop on open data platform done in Republic of Rwanda " Regional Workshop to adopt common methodology and tools for conducting data user satisfaction survey by Partner States conducted " Meetings of the EAC Stat-DHRP Project Steering Committee conducted physically and virtually " Training on application software (SunSystem - a financial management software, Inspiro - payroll system and update Sun System conducted to project staff CHALLENGES i.) Procurement process in EAC tend to take too long to complete. This is usually occasioned by lack of quorum in critical committees (procurement / evaluation) due to frequent staff travel, thereby affecting activities timelines. ii.) Late appropriation/approval of the budget by EALA iii.) During this COVID 19 Pandemic, technical virtual meetings were organised with problems of internet connection in some Partner States. Only few physical meetings were organized. iv.) Some of meetings planned to take place in Partner States have been affected by internal restrictions on COVID 19. v.) Some technical works planned have been executed with technical support from other Partners without any cost from the project. vi.) Some activities could not be executed before approval of the main activity (approval of EASB). vii.) Some technical areas were not able to consume as much as planned waiting for finalization of the initial phase that triggers trainings and workshops. Human Resource As at 30 June 2021, the EAC/Stat-DHRP had the following human resource capacity: - EAC/Stat-DHRP 30/6/2021 30/6/2020 Project Staff 13 13 Subtotal 13 13 The Budget The of the EAC Statistic Development Harmonization Regional Project for the financial year 2020/2021 was USD 6,987,624 East African Community - Audit Commission 2021 Page 9 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 CORPORATE GOVERNANCE STATEMENT The implementation of the project activities is vested with the Steering Committee and EAC Management plus Supervision Mission from World Bank. The EAC/Stat-DHRP Steering Committee is responsible for providing Policy and strategic oversight to the project, while the EAC Management is responsible for overseeing project operations. Meetings of the Steering Committees, EAC Management and supervision mission will continue to regularly consider budgetary strategy, assess project outcomes, monitor risks, make policy and resourcing decisions, and review requests for changes in project scope. RISK MANAGEMENT AND INTERNAL CONTROL Overview of EAC's risk management framework The East African Community (EAC) is responsible for the risk management and internal control system of the project. EAC is committed to a process of risk management that is aligned to the principles of sound corporate governance recognizing that the management of risk is an important strategy for the achievement of the EAC Mission and supporting objectives. The project management is task to ensure that the adequate internal financial and operational control systems are developed and maintained on an ongoing basis in order to provide reasonable assurance regarding: * The effectiveness and efficiency of operations * The safeguarding of the project assets * Compliance with signed grant agreement, EAC Rules and Regulations and other applicable laws and regulations * Reliability of accounting records * Responsible behavior towards all stakeholders Approach to Risk Management A description of EAC's approach to risk management covering a summary of the overall methodology and the management of individual types of risks is included in the EAC Risk Management Framework, Policy and Strategy (2011) and expounded as below. The EAC's risk management framework is based on a well-established governance process, with different lines of defense and relies both on individual responsibility and collective oversight, supported by a comprehensive reporting and escalation process. The EAC's internal audit function independently audits the adequacy and effectiveness of the EAC's risk management framework. The head of Internal Audit reports and provides East African Community -Audit Commission 2021 Page 10 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 independent assurance on the same to the Audit and Risk Committee and has unrestricted access to the Secretary General and the chairman of the Audit and Risk Committee. a) Operational risk Operational risk is the potential for loss resulting from the inadequacy of, or a failure in internal processes, people, systems or external events. The Project recognizes the significance of operational risk, and the fact that it is inherent in all business units. b) Occupational health and safety The health and safety of our employees, our partners and other stakeholders continues to be a priority. The Project seeks to effectively identify, reduce or control accidents or injuries to employees, contractors and clients. The Project continues to focus on ensuring compliance with current legal and regulatory framework and ensuring that occupational health and safety procedures are closely linked to the operational needs of the business. c) Reputational risk Safeguarding the Project's reputation is of paramount importance to its continued operations and is the responsibility of every member of staff. Reputational risks can arise from social, ethical or environmental issues, or as a consequence of operational risk events. The Community's strong reputation is dependent upon the way in which it conducts its business, but it can also be affected by the way in which its clients, to whom it provides services, conduct themselves. Effective management of all operating activities is required to establish a strong internal control framework to minimize the risk of operational and financial failure and to ensure that a full assessment of reputational implications is made before strategic decisions are taken. East African Community - Audit Commission 2021 Page II of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 3.0 STATEMENT OF THE SECRETARY GENERAL'S RESPONSIBILITIES The Treaty for the Establishment of the East African Community and the Financial Rules and Regulations require the Secretary General to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Community. These annual financial statements have been prepared in accordance with International Public Sector Accounting Standards, under the Accrual Basis of Accounting. The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgment and estimates. They have been presented to ensure comparability with the EAC annual financial statements of previous periods and with financial statements of other entities. The statements have been prepared as general-purpose financial statements intended to provide information about the financial position, financial performance, and cash flows of the EAC/Stat DHRP that is useful to a wide range of users. The Secretary General is responsible for establishing and maintaining a system of effective internal control designed to provide reasonable assurance that the transactions recorded in the books of accounts and reported in these annual financial statements are within the statutory authority and reflect with reasonable accuracy the receipt and use of public financial resources by the EAC/Stat DHRP. The Secretary General is responsible for and acknowledge the ultimately responsibility for the system of internal financial control established by the EAC and place considerable importance on maintaining a strong control environment. To enable the Secretary General to meet these responsibilities, the Secretary General sets standards for internal control aimed at reducing the risk of error or deficit in a cost-effective manner. These standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures, and adequate segregation of duties to ensure an acceptable level of risk. To ensure that these controls are monitored throughout the EAC and all employees are required to maintain the highest ethical standards in ensuring the EAC business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the EAC is on identifying, assessing, managing and monitoring all known forms of risk across the Community. While operating risks can be fully eliminated, the Community endeavors to minimize it by ensuring that appropriate infrastructure, controls, systems and ethical behavior are applied and managed within predetermined procedures and constraints. East African Community -Audit Commission 2021 Page 12 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 The Secretary General is of the opinion, based on the information and explanations given by management that the system of internal control provides reasonable assurance that financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit. To the best of my knowledge, the system of internal control has operated adequately throughout the reporting period. The financial statements set out on the pages below which have been prepared on a Going Concern Basis, were approved by the Secretary General on the date indicated below. The Secretary General accepts responsibility for the integrity of the financial statements and all the inf rmation contained therein for the period under review. Ho . Dr. Peter Mutuku Mathuki Juy nI Ndim rirwo (FCCA) Secretary General Director of Finance Date .. . Date....o)4 East African Communi -Audit Commission 2021 Page 13 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 4.0 REPORT OF THE AUDIT COMMISSION ON THE FINANCIAL STATEMENTS OF THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 The Chairperson, Council of Ministers East African Community REPORT ON THE FINANCIAL STATEMENTS Opinion We have audited the financial statements of the EAC Statistics Development And Harmonization Regional Project (EAC-Stat-DHRP) set out on pages 18 to 34, which comprise the statement of financial position as at 30 June 2021, and the statement of financial performance, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. In our opinion, the financial statements present fairly, in all material respects, the financial position of EAC Statistics Development And Harmonization Regional Project (EAC-Stat-DHRP) as at 30 June 2021, and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards and comply with the Treaty for Establishment of the East African Community, 1999 (as amended) and EAC Financial Rules and Regulations, 2012. Basis for Opinion The audit was conducted in accordance with International Standards for Supreme Audit Institutions (ISSAIs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the EAC Statistics Development And Harmonization Regional Project (EAC-Stat- DHRP) in accordance with the ethical requirements of International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants and Article 134(4) of the Treaty for Establishment of the East African Community, 1999 (as amended) and we have fulfilled our ethical responsibilities in accordance with these requirements and the ISAs. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. East African Communiy - Audit Commission 2021 Page 14 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. We have determined that there are no other key audit matters to communicate in our report. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Public Sector Accounting Standards and Regulations 78 and 79 of the East African Community Financial Rules and Regulations, 2012, and for such internal control as the 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 EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP) ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management intend to cease operations of the EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP), or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP) financial reporting process. Audit Commission's Responsibilities for the Audit of the Financial Statements The audit objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion in accordance with the provisions of Article 134(2) of the Treaty for Establishment of the East African Community, 1999 (as amended). Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls 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. As part of an audit in accordance with ISSAls, we exercise professional judgement and maintain professional skepticism throughout the audit. We 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 our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one East African Community - Audit Commission 2021 Page 15 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 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 EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP)'s internal controls. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. * Conclude on the appropriateness of the management' 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 EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP) ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP) to cease to continue as a going concern. * 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. * Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Community to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit, We remain solely responsible for our audit opinion. We communicate with the management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that are identified during the audit. We also provide those charged with governance with a statement that we 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 our independence, and where applicable, related safeguards. East African Community - Audit Commission 2021 Page 16 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 From the matters communicated with those charged with governance, we 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. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by the Article 134(2) of the Treaty for Establishment of the East African Community, 1999, we report based on the audit that any contributions received or revenue collected by the EAC Statistics Development And Harmonization Regional Project (Eac-Stat-DHRP) have been allocated and distributed in accord with this Treaty. Ms. G6ndrose Kiyago A?mb. Ste Kiliona Wondu Ms. Nancy Gathungu STATE INSPECTOR AUDITOR GENERAL OF AUDITOR GENERAL OF GENERAL OF THE THE REPUBLIC OF SOUTH THE REPUBLIC OF REPUBLIC OF SUDAN KENYA BURUNDI Date .)A2.q.. Date. Date:. Mr. Charles E. Kichere Mr. John F. S. Muwanga Mr. Alexis Kamuhire CONTROLLER AND AUDITOR GENERAL OF THE AUDITOR GENERAL OF AUDITOR GENERAL OF REPUBLIC OF UGANDA THE REPUBLIC OF THE UNITED REPUBLIC RWANDA OF TANZANIA Date. .slil12-1 Date /. ..... Date......VJ ..AI East African Community - Audit Commission 2021 Page 17 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.0 FINANCIAL STATEMENTS FOR THE EAC STATISTIC DEVELOPMENT AND HARMONISATION REGIONAL PROJECT FOR THE YEAR ENDED 30 JUNE 2021 5.1 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 NOTES 2020/21 2019/20 ASSETS USD USD CURRENT ASSETS Cash and Cash Equivalents 8 392,946 358,537 Receivables 9 107,575 17,593 TOTAL CURRENT ASSETS 500,521 376,130 NON-CURRENT ASSETS Property, Plant and Equipment 11 41,959 56,858 Intangible Assets - - 41,959 56,858 TOTAL ASSETS 542,480 432,988 LIABILITIES AND NET ASSETS/EQUITY CURRENT LIABILITIES Payables 10 171,816 67,010 TOTAL CURRENT LIABILITIES 171,816 67,010 TOTAL LIABILITIES 171,816 67,010 Total Net Assets/Equity 12 370,664 365,951.9 TOTAL LIABILITIES AND NET 542,480 432,988 ASSETS/EQUITY L Hon. D . Peter Mutuku Mathuki Jfenal dimurirwo (FCCA) Secret General Directo Finance Date... ..I .a1 .ODate.q East African Communiy - Audit Commission 2021 Page 18 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.2 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2021 Description Notes 2020/21 2019/20 REVENUE USD USD Special funds from Development Partners 2 2,529,946 885,130 (Revenue Earned) Other Revenue 3 - - TOTAL 2,529,946 885,130 EXPENSES Salaries, Wages and Employee Benefits 4 1,033,679 503,375 Administrative and consultancy Expenses 5 1,480,470 379,402 Depreciation Expenses 6 14,874 1,922 Finance Cost 7 924 431 TOTAL 2,529,946 885,130 SURPLUS/(DEFICIT) FOR THE YEAR - - East African Communiy - Audit Commission 2021 Page 19 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.3 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE 2021 Description Notes 2020/21 2019/20 (USD) (USD) Cash flow from operating activities Surplus at the end of the year 13 4,711.01 (133,174) Adjustment for: Depreciation 14,873.71 1,922 Decrease/ (Increase) in Receivables (89,982) (17,444) (Decrease)/ Increase in Payables and deferred 104,806 66,036 Revenue Cash generated from operating activities 34,409 (82,660) Cash flow from investing activities Acquisition of fixed assets - (58,780) Cash generated from investing activities - (58,780) Net increase in cash and cash equivalents 34,409 (141,440) Cash and cash equivalents at beginning of 358,537 499,977 period Cash and cash equivalents at end of period 392,946 358,537 East African Communit - Audit Commission 2021 Page 20 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.4 STATEMENT OF CHANGES IN NET ASSETS/EQUITY AT 30 JUNE 2021 Description Deferred Deferred Total Net Credit Revenue asset/Equity (deferred Revenue) On Fixed USD USD Assets USD At 1 July 2020 56,833 309,119 365,978 Prior year adjustment/Change - - - For the year ended 30 June 2021 (14,873.71) 19,584 4,684 41,959 328,704 370,662 East African Community -Audit Commission 2021 Page 21 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.5 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30TH JUNE 2021 Description Budgeted Amounts in Actual Difference: Explanation of variances USD Amounts in Final Budget USD and Actual ________ _____: (in USD) REVENUE Original Final (in USD) Special funds 6,987,624 6,987,624 2,843,777 4,143,856.52 The actual amount received from includes the Deferred Developmen Revenue B/F from t Partners 2019/2020 (USD 309,119) Funds are release by World Bank based on actual spending to replenish imprest through Withdrawal Applications submitted by the project to replenish actual spending to the initial deposit upon effectiveness of the project and not based on Other - - . . the budget estimates Other - - - Revenue Total 6,987,624 6,987,624 2,843,777 4,143,856.52 Revenue EXPENSES Salaries, 1,158,456 1,158,456 1,033,678.56 124,777.44 There was a delay in Wages and recruitment of IT expert who Employee came in July 2021 Benefits Administrati 5,823,168 5,823,168 1,480,470 4,342,698 A number of factors have ve, meetings contributed to the low & absorption of budget as consultancy enumerated above on the Expenses challenges encountered during implementation Financial 6,000 6,000 924 5,076 KCB Bank does not charge costs withdrawal fee on local withdrawals TOTAL 6,987,624 6,987,624 2,515,072.56 4,472,551.44 SURPLUS / 0 0 328,704.44 (DEFICIT) FOR THE PERIOD East African Community -Audit Commission 2021 Page 22 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.6 STATEMENT OF SPECIAL ACCOUNT ACTIVITY FOR THE PERIOD ENDED 30TH JUNE 2021 Description Note 2020/2021 USD Opening Balance as at 1 July 2020 358,536.82 Add: Amount Deposited by World Bank 2,534,658.13 Total Fund (Cash) Available for year 2,893,194.95 Amount withdrawn/payments 2,500,249.23 Closing Bank Balance as at 30 June 2021/ 8 392,945.72 Balance as per cash book 5.7 EAC Stat DHRP FUND ACCOUNTABILITY STATEMENT AS AT 30TH JUNE 2021 Fund Balance as at 1 July 2020 309,119 Cash Received from World Bank (during the year) 2,534,658 Total Fund available for the year 2,843,777 Less Exp During the year 2,515,072 Fund Balance as at 30June 2021 328,705 Reconciled to Bank Balance as 30 June 2021 392,946 Less Payables 171,816 221,130 Add Receivables 107,574 FUND BALANCE AS AT 30 JUNE 2021 328,705 East African Community - Audit Commission 2021 Page 23 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.8 STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION Basis of Accounting The accompanying financial statements have been presented on an accrual basis of accounting while the budget has been prepared using cash basis of accounting. Accrual basis means a basis of accounting under which transactions and other events are recognized when they occur (and not only when cash or its equivalent is received or paid). Therefore, the transactions and events are recorded in the accounting records and recognized in the financial statements of the periods to which they relate. Accrual accounting allows for revenue to be recognized when earned and expenses to be recognized when incurred. Budgetary accounting allows for compliance with the requirements for and controls over the use of Partner States Approved Budgeted funds. Basis of Preparation The financial statements have been prepared in accordance with International Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB). When the IPSASB does not prescribe any specific standard, IFRSs and IASs are applied. The financial statements have been prepared on a going concern basis. The measurement base applied is historical cost. The accounting policies have been applied consistently throughout the period. The principal accounting policies adopted are set out below. Adoption of new and revised Standards From July 2020 to June 2021, there were no new IPSAS standard having an impact on these financial Statements of the Project. East African Community -Audit Commission 2021 Page 24 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.9 KEY JUDGEMENTS AND SOURCES OF ESTIMATION The preparation of financial statements requires judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses in conformity with IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors. The key judgements management made in preparing the financial statements are as follows: * Key estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised 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 the period of revision and future periods. East African Community - Audit Commission 2021 Page 25 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.10 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Donations and Grants The financial statements in conformity with IPSAS 23 - Revenue from Non-Exchange Transactions, require management to recognize liabilities from transfers with restrictions and/or conditions over the period of which economic benefits will be received from such transfers, with disclosure of such restricted contributions from Development Partners. Most of the assistance given to EAC/Stat-DHRP receives funds from World Bank which is considered as restricted contributions. Restricted contributions are recognized as Revenue over the periods necessary to match them with the related costs which they are intended to compensate on a systematic basis. On the Financial Statements for projects, receipts to financial annual budget are recognized as revenue for the year, and then Expenses are deducted. The surplus to the donor, which is Net Asset/equity for the Project, is thereafter disclosed on the Statement of Financial Performance as "attributable to Development Partners", reported as deferred revenue on the Statement of Financial Position and adjusted from Net cash flow from operating activities on the Cash flow statement. Grants related to assets are presented in the statement of financial position as deferred revenue, which is recognized as revenue on a systematic and rational basis over the useful life of the asset. Foreign Exchange Rates The financial statements are prepared in conformity with IPSAS 4 - The Effects of Changes in Foreign Exchange Rates which requires management to disclose effects of foreign currency transactions in their financial statements. In accordance with IPSAS 4 and related definition, the Presentation Currency of EAC, the currency in which its financial statements are prepared, is the United States Dollar. The United States Dollar is also the operating currency of EAC/Stat-DHRP The Functional Currency (ies) of EAC, the currency (ies) of the primary economic environment in which an entity operates - a country in which an entity primarily generates and expends cash is (are) the United States Dollar and the following currencies - Burundian Francs, Kenyan Shilling, Rwandan Francs, South Sudan pound, Tanzanian shilling and the Ugandan Shilling, for the six (6) EAC Partners States of Republic of Burundi, Republic of Kenya, Republic of Rwanda, Republic of South Sudan, United Republic of Tanzania and the Republic of Uganda respectively. EAC/Stat-DHRP has its Presentation currency, the United States Dollar, as its functional currency and hence uses the following procedure to translate its foreign currency transactions into the Presentation currency for reporting purpose - 1) monetary assets/liabilities are translated at current exchange rate East African Community -Audit Commission 2021 Page 26 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 2) non-monetary assets/liabilities measured at historical cost are translated at historical exchange rate 3) non-monetary assets/liabilities measured at current value are translated at the exchange rate at the date when the current value was determined 4) Owners' interest accounts are translated at historical exchange rate 5) Revenues/expenses other than those expenses related to non-monetary items ( as in (i) (b) above) are translated at the exchange rate that existed when transactions took place (for practical reasons, average rates may be use) 6) Expenses related to non-monetary assets, such as depreciation (fixed assets) and amortization (intangible assets) are translated at the exchange rate used to translate the related assets. Both realised and unrealised gains and losses resulting from the settlement of such transactions, and from the retranslation at the reporting date of assets and liabilities denominated in foreign currencies, are recognised in the Statement of Financial Performance. The exchange rates used for the following reporting dates are as follow: Currency 30/2021 30/6/2020 1 USD. /KES (Kenya Shillings) 107.85 106.52 1 USD. /TZS (Tanzania Shillings) 2,298.9325 2,296.51 1 USD. /UGX (Uganda Shillings) 3,554.07 3,730.33 1 USD. /BIF (Burundi Francs) 1,976.04 1,915.00 1 USD. /RWF (Rwanda Francs) 987.1399 937.08 1 USD. /EURO 0.841 0.8866 Total amount of loss on foreign exchange was debited to the Statement of Financial performance. Property, Plant and Equipment Property, Plant and equipment are carried in the Statement of Financial Position at their historical cost. Expenditure incurred to replace a component of item of property, plant and equipment is accounted for separately and capitalized while the major replaced component is derecognized. All other expenditure items which do not meet recognition criteria are recognized in the statement of Financial Performance as expenses as they are incurred. EAC/Stat-DHRP derecognises items of Property, plant and equipment and/or any significant part of an asset upon disposal or when no economic benefits or service potential is expected from its continuing use. Any gain or loss arising on de-recognition of the assets (calculated as the East African Community - Audit Commission 2021 Page 27 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 difference between the net disposal proceeds and the carrying amount of the asset) is included in the surplus or deficit when the asset is derecognised. Depreciation The financial statements in conformity with IPSAS 1 - Presentation of Financial Statement and IPSAS 17 - Property, Plant and Equipment recognize depreciation in the Statement of Financial Performance. Management charges depreciation to the Statement of Financial Performance on a straight-line basis to write off the cost of property, plant and equipment to their residual values over their expected useful lives. Depreciation for Property, Plant and Equipment purchased during the year is apportioned proportionately to the remaining period of the year. Property, plant and equipment acquired during the year is depreciated from the date when it is available for use and cease to be depreciated at earlier of the date that the asset is derecognized. Annual depreciation rates applied are as follows: FY20/21 FY19/20 Buildings 2.50% 2.50% Motor vehicles 25.00% 25.00% Computer equipment 33.33% 33.33% Telecommunication equipment 33.33% 33.33% Office equipment 25.00% 25.00% Office fixtures and fittings 12.50% 12.50% Office furniture 12.50% 12.50% Residential assets 12.50% 12.50% Impairment of tangible and intangible assets The carrying values of fixed assets are reviewed for impairment if events or changes in circumstances indicate that they may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Any provision for impairment is charged against the Statement of Financial Performance in the year concerned. Intangible Assets Intangible assets relate to computer software. Software is amortized at 20% per annum on a straight-line basis if in use. Generally, costs associated with maintaining computer software programs are recognised as expenses when incurred. The intangible asset of the project was in use during the year under review since Partner States are yet to link to the system East African Community - Audit Commission 2021 Page 28 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 Taxation Article 4 Section (1) subsection (d) of the Headquarters Agreement between East African Community and the United Republic of Tanzania states that: "The Secretariat, its property, assets, income and transactions shall be exempt from all direct taxation including sales tax and from Customs Duties and prohibitions, restrictions on imports and exports in respect of articles imported or exported by Secretariat for its official use. The Secretariat shall also be exempt from any obligation relating to payments, withholding or collection of any tax or duty provided that such assets and other property shall not be sold within the United Republic of Tanzania except in accordance with conditions agreed to with the Government". The EAC/Stat-DHRP activities comply with the Headquarters agreement. The Grant agreement considers all expenditures incurred including taxes as eligible for accountability of the Grant purposes Cash and cash equivalents Cash and cash equivalents comprise cash in banks, term deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. Presentation of Budget Information The financial statements in conformity with IPSAS 24 requires management of a public sector entity to show comparison of budget amounts arising from execution of the budget to be included in the financial statements of the entity which are required to, or elect to, make publicly available their approved budget for which they are, therefore, held publicly accountable. The Standard also requires disclosure of an explanation of the reasons for material differences between budget and actual amounts. The EAC/Stat-DHRP Budget was approved on cash basis, with classification by nature, for a period of one year, i.e. 1 July 2020 to 30 June 2021. EAC/Stat-DHRP Project prepares its financial statements clearly indicating the actual expenditure in comparison with the approved budgetary provisions and in so doing fully complies with this Standard. Related Parties The financial statements in conformity with IPSAS 20 requires EAC/Stat-DHRP to show the aggregate remuneration of key management personnel and the number of individuals, determined on full time equivalent basis, receiving remuneration within this category, showing separately major classes of key management personnel and including a description of each class and the total amount of all other remuneration and compensation provided to key management personnel and close family members itemized separately. East African Community - Audit Commission 2021 Page 29 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 During the year to 30 June 2021, the remuneration paid to Professional experts was USD. 1,033,678.56 Financial Risks EAC/Stat-DHRP is exposed to a variety of financial risks, including market risk (foreign exchange and price), liquidity and credit risks. EAC/Stat-DHRP does not make use of financial derivatives to hedge its risk exposures. i. Foreign-exchange risk EAC/Stat-DHRP receives donor grants in US Dollar and is thus not exposed to foreign-exchange risk arising from fluctuations in currency rates. ii. Liquidity risk EAC/Stat-DHRP may not negotiate and use uncommitted short term bank credit facilities in the event of liquidity requirements. It can only seek assistance from the EAC Secretariat. Provisions, Contingent Liabilities and contingent Assets Provisions are constituted when EAC/Stat-DHRP recognises a liability arising from a past event, for which it will probably have to bear the cost. Provisions are measured at management's best estimate of the expenditure required to settle the obligation at the date of the Statement of Financial Position. There were neither contingent liabilities nor contingent assets as at 30 June 2021. Related-Party Transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions or if the related party entity and another entity are subject to common control. In the case of EAC/Stat- DHRP related parties have been taken to be:- i. key Project management experts, and close members of the family of these key management experts, ii. Key EAC management including the members of Executive and Steering Committees. There were no material transactions with related parties during the financial year ended 30 June 2021. Events After the Reporting Period There were no events after the reporting date that warrants disclosure in the financial statements. East African Community - Audit Commission 2021 Page 30 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 5.11 NOTES TO THE FINANCIAL STATEMENTS S/N PARTICULARS 202Q/2021 2019/2020 USD USD Deferred Revenue B/F 309,118.87 499151 Special funds from WB during the year 2,534,658 751,956 Total Fund Available 2,843,777 1,251,107 2 Earned Revenue 2,529,946 885,130 Deferred Revenue C/F 313,831 365,977 3 OTHER REVENUE Gain on Foreign Exchange . . Subtotal 4 Salaries, Wages and Employee Benefits Salaries and Allowances 1,033,678.56 503,374.53 Subtotal 1,033,679 503,375 ADMINISTRATIVE, MEETINGS, CONSULTANCY 5 EXPENSES & SCHOLARSHIPS Printing and advertising 7,590 2,320 Hiring of Conference Facilities 86,264 20,053 Other Sundries for Workshops 9,241 84 Communication expenses . . Other Office Supplies (e.g Refreshments, toiletar - . Refined Fuel & Lubricants for Motor Vehicle/Motor - - Maintenance of Non-Residential Buildings (i.e Offi - 8,344 Motor Vehicle Maintenance (i.e Routine Service) - - Hiring of vehicles - 475 Travel & Subsistence 1,042,959 312,958 Scholarships & Other Educational Benefits-Tertiary 175,259 25,169 Honoraria . Consultancy 159,156 10,000 Subtotal 1,480,470 379,403 6 DEPRECIATION EXPENSES Motor Vehicles . . Computer equipment 12,042 1,004 Office equipment . . Office Furniture 2,832 918 Subtotal 14,874 1,922 7 Finance Cost Bank charges/Exchange Loss 924 431 Subtotal 924 431 8 Cash and Cash Equivalents Bank Account: 3390407944 392,946 358,537 EAC Regional Statistics Harmonization Project Subtotal 392,946 358,537 East African Comm unity - Audit Commission 2021 Page 31 of 34 AUDITED FINANCIAL STATEMENTS FOR THE EAC STATISTICS DEVELOPMENT AND HARMONIZATION REGIONAL PROJECT (EAC-Stat-DHRP) FOR THE YEAR ENDED 30 JUNE 2021 S/N PARTICULARS 202q/2021 2019/2020 USD USD 9 Receivables Staff Salary Advances . . Imprest for Activities 28,903 1,379 Other Receivables/Prepayment (Advance Against Guarantee) 49,747 EAC Secretariat VAT Claims 28,925 16,212 Subtotal 107,575 17,591 10 Payables Staff Refunds - 10,500 Salary Payable . Gratuity payable Accrued invoices EAC Secretariat - 1,500 Creditors, Service Providers 171,816 55,010 Feel of Investment Limited 7,139.00 Mount Meru Hotel Arusha 4.000.00 SERENA CAR HIRE AND TOURS 2,800.00 Tanzania Standards f N) ltd 1,540.11 UGANDA TRAVEL BUREAU 2004 LIMITED 19,804.60 World link Travel & Tours Limited 46,877.73 Reimbursable Expenses - Payable 89,654.16 Subtotal 171,816 67,010 12 Total Net Assets/Equity Deferred Credit on Fixed Assets (NBV) 41,959 56,833 Deferred Revenue Carried Forward 328,705 309,118.9 Total 370,664 365,951.9 13 Surplus at the end of the year Cash Received from W/H During the year 2,534,658.13 751,956 Less Expenses 2,529,947.12 885,130 Surplus for the year 4711.1 (133-1741 East African Community - Audit Commission 2021 Page 32 of 34 � � о оо о, О о�cr] о о� 1 и � ер д у гV л � � � и m..�UCOo z � � о � ^ р_ z� м � �„N„� 6i � и � � �С � rв ,�.' � � � � �: oNa � �й ^q �+ N н п? �о О ,Ci гу � йг�� � ,,,Q►[ N о с. � г� � � сч � �n Q W '� � � о о ь. � � � •� � � л N г�-� � Z � ,� Z гg, � д °° � w в т � � � � � � n С� G V с гд, � о о, �, � ш • � �т W � 0 а' г� � ; `� � ~ `а W � м w W а� С1 ?. � ,� � � ,n � � с V W .� � t� � � � �х � н н �р а ы М и � с, � С `� �й � � ¢о Q ��~ н� а �т� V � z м х W� Q 1 1 1 1 1 1 L:7 � т � � � N д �� � и� � .н 1 1 1 1 1 1 ✓� в4 � О W w.�а "�� о а Z гга � � ¢ �' w0 �7й о � ,г� � � �, , $ ,о С й N г+ �гV [ � ,'���г �.w., �" � � •� R � с�л N Й � Q А С� �= у. н 2 от� � и ¢ � �' н �` .� ` .� 1 в z `� � д = е z � � G С � �' � � д �; а ы� �� Ё •� � I= 'г w � F '- R. � о� т ы� Q � � а � Е'� � w � �� F-� С� д Ос�. �йшг= о ооа ° � Q � � ,--� с� т �r и �а � � � v' а м �j � N о � � м F'! ,,,„ � м V ао � м с'�ч й "� о д � � с � ..7 х •о=� R� z о°=йо�� о � .� � z� О С �_ � О� � � С�+ р r гг ~ 'т R'�О ¢ р ... .� N N йдо� z О � а м s �N •�р� � � � � х о 0. � � N р 0 �° z z ., Q � � , Е"' � й с �'-' � � +а w м а р° Э_ Г.� А W � т й � OZ д � � W w О �""' О W � � г++ д � � � � и � � а � � �s1 .R � р я. Е� Н ° �а �' ' � ' � м Е~-+О ❑ и�о м � EQ-� w, .7� � � Z .� N � b W д о �r 1 �; Ф О о , w 1 1 1 х й о� Е-+ � о д � � � � �л а� �у р и О W W� � и г�Ora rni гЯ°n а � � н �д о z �� � аи ' � w ьо °1 ,о � ар с � � � , � � � .� н 2 � а � ~ � Е�а/-�� в ��� С° VJ ��j �в ,� Fч � � � �1л Q � V � � й � Ч Q z � � � �� � � у .� Z �V �'у�'�� р � � г4 �� L�. � о° гшr � д о д �� Q о'� � ш � w Е-� С� �, �иш� о о о н° .� д � c�t м