THE UNITED REPUBLIC OF TANZANIA , NATIONAL AUDIT OFFICE REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL STATEMENTS AND COMPLIANCE AUDIT OF MINISTRY OF WATER FOR SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM (SRWSSP)-COORDINATION UNIT SUSTAINABLE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 Controller and Auditor General, National Audit Office, Audit House, 4 Ukaguzi Road, P.O. Box 950, 41101 Tambukareli, Dodoma, Tanzania. Tel: 255 (026) 2161200, Fax: 255 (026) 2117527, E-mail: ocag@naoeo.tz Website: www.nao.qo.tz December, 2021 AR/ CGISRWSSP/MoW!2020/21 Mandate The statutory mandate and responsibilities of the Controller and Auditor-General are provided for under Article 143 of the Constitution of the URT of 1977 (as amended from time to time) and in and Sect.10 of the Public Audit Act, Cap. 418 (R.E 2021) 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; V 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; $ Systematically involve our clients in the audit process and audit cycles; and / Providing audit staff with adequate working tools and facilities that promote independence. o This audit report is intended to be used by SRWSSP-RUWASA and World Bank.However,upon release by the World Bank it becomes a public record and its distribution may not be limited. Controller and Auditor General AR/SRWSSP/MoW/2020/21 TABLE OF CONTENTS Abbreviations..................................................................................... iii 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL......... 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS............................. 1 1.2 REPORT ON COMPLIANCE WITH LEGISLATIONS...................................4 2.0 FINANCIAL STATEMENTS................................................................. 5 ii Controller and Auditor General ARISRWSSP/MoW/2020/21 Abbreviations CAG Controller and Auditor General CG Central Government ISSAIs International Standard of Supreme Audit Institutions IPSAS International Public Sector Accounting Standards MoW Ministry of Water RUWASA Rural Water Supply and Sanitation Agency PPA Public Procurement Act, 2011 (as amended in 2016) PPR Public Procurement Regulations, 2013 (as amended in 2016) SRWSSP Sustainable Rural Water Supply And Sanitation Program iii Controller and Auditor General ARISRWSSP/MoW/2020/21 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL Permanent Secretary, Ministry of Water, P. 0. Box 456 DODOMA. 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS Opinion I have audited the financial statements of the Ministry of Water- Coordination Unit for Sustainable Rural Water Supply and Sanitation Program (SRWSSP) which comprise the statement of financial position as at 30 June 2021, 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 the Ministry of Water- Coordination Unit for Sustainable Rural Water Supply and Sanitation Program -SR SP) as at 30 June, 2021, and its financial performance and its cash flows fe then ended in accordance with International Public Sector Accounting Standa AS) Accrual basis of accounting and the manner required by the Public Finance ActyRem11(Revised 2004). Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the financial statements section of my report. I am independent the Ministry of Water- Coordination Unit for Sustainable Rural Water Supply and Sanitation Program (SRWSSP) 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. Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 Other Information Management is responsible for the other information. The other information comprises the Statement by Honorable Minister and the Declaration by the Head of Finance but does not include the financial statements and my audit report thereon. 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 A4tl Management is responsible for the preparefi fir presentation of the financial statements in accordance with IPSAS and rernal control as management determines is necessary to enable the prepar on Mfinancial statements that are free from material misstatement, whether due to ruMor 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/SRWSSP/MoW/2020/21 As part of an audit in accordance with ISSAIs, 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 are required to draw attention in my audit report to the related disclosures in the financial statements or, iT'"iac)b disclosures are inadequate, to modify my opinion. My conclusions are=It audit evidence obtained up to the date of my audit report. However nts or conditions may cause the entity to cease to continue as a going conCVR.Y1 * 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 benefits of such communication. 3 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 In addition, and Sect.10 of the Public Audit Act, Cap. 418 [R.E 2021] requires me to satisfy myself that the accounts have been prepared in accordance with the appropriate accounting standards. Further, Sect. 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 Compliance with the Public Procurement Act, 2011 (as amended in 2016) 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 Ministry of Water- Coordination Unit for SRWSSP for the financial year 2020/21 as per the Public Procurement Act, 2011 and its regulation of 2013 (as amended in 2016). Conclusion Based on the audit work performed, I state that procurement of goods, works and services of Ministry of Water- Coordination Unit for SRWSSP is generally in compliance with the requirements of the Public Procurement Act, 2011 and its underlying Regulations of 2013 (as amended in 2016). Charles E. Kicli-ere Controller and Auditor General Dodoma, United Republic of Tanzania December, 2021 Copy to: Chief Secretary, President's Office - State House, 1 Julius Nyerere Road, Chamwino, P.O. Box 1102, 40400 DODOMA. Permanent Secretary and Paymaster General, Ministry of Finance and Planning, P.O. Box 2802, 40468 DODOMA. Resident Representative, World Bank, 50 Mirambo Street, P. 0. Box 2054, DAR ES SALAAM. 4 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2.0 FINANCIAL STATEMENTS STATEMENT BY THE HONORABLE MINISTER Water is a key driver for human development in all dimensions including agriculture, manufacturing, energy generation, livestock keeping, fishing, transportation, construction, tourism, environmental management and ecosystems. The water availability in quality and quantity facilitates socio-economic development due to their range of interactions. In that regard, development and management of water resources in terms of quantity and quality remain key factor towards sustainable development. Furthermore, availability of adequate clean, safe and affordable water and sanitation services in a country has impact on standard of living of people and poverty reduction. Water is also a critical ingredient in our country's industrial development agenda in a bid to attain the aspirations in the national and international policy and planning frameworks such as the Sustainable Development Goals (SDGs) 2030, the Tanzania Development Vision (TDV-2025), the Five Year Development Plans (FYDP II) 2016-2021, and the Chama Cha Mapinduzi (CCM) Election Manifesto of 2020-2021. Consequently, in a course towards fulfilment of the Ministry's mandates, the Government has put in place policy and legal frameworks. The frameworks include the National Water Policy (NAWAPO 2002); which are being implemented through the Water Sector Development Program (2006-2025). The policy objectives are to develop a comprehensive framework for sustainable use and equitable development of water resources; improved access to adequate and safe water to rural population and sustainable management of urban water supply and sewerage services. Along the policy the legal framework within which the sector operates are the Water Resources Management Act No. 11, 2009 and the Water Supply and Sanitation Act No. 5 of 2019. The Ministry is implementing the Water Sector Development Program (WSDP) 2006 - 2025 in phases of five years. The Program objectives are to alleviate poverty through improvement in governance of Water Resources management and sustainable delivery of water supply and Sanitation Services. All sector activities regardless of the financing model are implemented under the WSDP Program. These include Water Sector Support Program II, Sustainable Rural Water Supply and Sanitation Program and Earmarked (Direct to Projects) financed projects. The Ministry is determined to effective and efficient implementation of the policy, strategy and legal frameworks in order to achieve the national industrial development agenda. The major target and main focus being to reach the water supply coverage of more than 85 per cent and 95 per cent of the rural and urban population respectively as directed by the CCM Election Manifesto of 2020-2021; and ultimately achieve the TDV 2025's targets. The Ministry has been implementing water projects all over the country and some of the completed water projects between July 2020 and June 2021 has increased availability and accessibility of water services in urban. Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 5 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 areas to 86 per cent and 72.3 per cent of rural inhabitants being served with safe water. Our task ahead to realise the predetermined targets is huge and tough but we are confident that the targets will be reached due to stringent measures undertaken including insistence on using capable service providers, the force account modality in some water projects and capacity building to staff and Institutions under the Ministry. The Government will continue to make sure all available financial, human and material resources are effectively and efficiently utilised. Hon. Jumaa H. Aweso (MP) Minister for Water controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 6 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 STATEMENT AND GOVERNANCE REPORT BY THE ACCOUNTING OFFICER 1.0 INTRODUCTION I am pleviledged to present the Governance Annual Reports and Financial Statements of the Sustainable Rural Water Supply and Sanitation Program (SRWSSP) for the financial year ended 30 June 2021. These financial statements have been prepared in accordance with the requirements of the Public Finance Act CAP 348 and presented based on Accrual basis of International Public Sector Accounting Standards (IPSAS). To increase clarity and reader's understanding, additional information have been included pursuant to the Tanzania Financial Reporting Standard number 1 as issued by the Tanzania Board of Accountants and Auditors (NBAA). 2.0 OVERVIEW OF THE PROGRAM The Government of United Republic of Tanzania through the Ministry of Water (MoW) is implementing the Sustainable Rural Water Supply and Sanitation Program (SRWSSP) with the objective to increase access to rural water supply and sanitation services in 86 Districts located in 17 Regions out of Tanzania's 26 regions, based on 2017 rankings of water coverage, sanitation coverage, poverty and stunting rate. The Program support investments to improve and sustain access to water, sanitation, and hygiene for the communities. The regions are Tabora, Katavi, Rukwa, Lindi, Geita, Shinyanga, Singida, Kagera, Mwanza, Manyara, Mtwara, Simiyu, Iringa, Mara, Ruvuma, Kigoma and Songwe. Duration of implementation of SRWSSP is six years and became effective in July 2019. The Sustainable Rural Water Supply and Sanitation Program is a hybrid operation that consists of two parts: A Program for Results (PforR) financing instrument which provides performance-based incentives to achieve results measured against disbursement- linked indicators (DLIs) and Investment Project Financing (IPF, "Project") to support the GoT to achieve the SRWSSP Operation results, and strengthen the capacity of selected sector institutions to sustain service delivery. The Program is implemented through the World Bank's Program for Results (PforR) leading instrument. The SRWSSP funds include USD 330 million for Program for Results (PforR) and USD 20 million for investment Project Financing (IPF). The background information is shown in the table 1 below: Table 1: Program Background Information: Project Name Sustainable Rural Water Sanitation Program - SRWSSP Project Number P 163732 Development Partner International Development Association (IDA) - World Bank (WB) Credit: IDA 62950 Key decision Dates Approval Date: 26 June 2018 Signing Date: 07 Sept 2018 Effective Date: 15 July 2019 Ist Disbursement Date: 25 October 2019 Closing Date: 31 July 2024 Contract Value PforR Component USD 330,000,000 7 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 IPF Component USD 20,000,000 TOTAL USD 350,000,000 Amount Disbursed October 2019 is USD 78,477,290 June 2021 is USD 102,000,385 Total sum of USD 180,477.675. Overall IP Ratings IP rating is based on disbursement sums Vs Financing Agreement (FA) contract value. Disbursement as at October 2019 is USD 78,477,290 as advance payment and USD 102,000,385 disbursed by June 2021 gives the total sum of USD 180,477.675. IP Rating August 2020: 22 per cent IP Rating June 2021: 52 per cent 3.0 FLOW OF FUNDS The SRWS Program funds are received from IDA into a Project Holding Pooled Account denominated in U.S. dollars at the Bank of Tanzania and then, transferred to the Program Fund subaccount for the project denominated in local currency. The MoW, MoHCDGEC, PO-RALG, and districts are paid through the dummy fund system and transfers from the Program Designated Account at BOT to their bank accounts mainly held by commercial Banks. 4.0 FINANCING OF SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM The SRWSSP is implemented through the World Bank's Program for Results instrument and is allocated a budget of USD 350 million for a period of six years. The approved budget for the Financial Year 2020/21 for implementing SRWSSP was TZS 232,592,121,340 which includes TZS 3,753,886,500 for the Ministry of Water (MoW), TZS 28,467,204,701 for the Ministry of Health, Community Development, Gender, Elderly and Children, TZS 191,944,929,467 for RUWASA and TZS 8,426,100,673 for the Ministry of Education, Science and Technology. 5.0 OBJECTIVES OF THE PROGRAM The Program Development Objectives (PDO) is to increase access to rural water supply and sanitation services in participating 86 District Councils in 17 Regions and strengthen the capacity of select sector institutions to sustain service delivery. The Program consists of the following activities: (i) Supporting Participating Districts sustained access to improved water services in rural areas. (ii) Investing in soundly designed and properly constructed water schemes. (iii) Rehabilitating and repairing non-functional water points and (iv) Monitoring and conducting maintenance activities on existing water schemes to ensure they remain functional. (v) Promoting increased access to improved sanitation services in rural areas. (vi) Rehabilitating and constructing sanitation and hygiene facilities a rural health centerc ncnhools 8 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 (vii) Carrying out activities which promote and facilitate the upgrading and improvement of household sanitation and hygiene facilities (i) Providing support to villages to enable them to reach Community Wide Sanitation status. (ii) Strengthening the capacity of sector institutions to sustain service delivery in rural areas. (iii) Providing incentives to the participating Districts to improve the operation and maintenance of water supply by registering COWSOs for existing schemes. (iv) Supporting the establishment and operationalization of Reciepients new delivery model for the rural water sector, by providing incentives to the Agency to work with LGAs and COWSOs to facilitate establishment of a mechanism for the management, operation and maintenance of rural waLer supply schemes and (v) Providing training to staff to improve the quality-of-service delivery. (vi) The other activities to assist with the implementation of the Program and to mitigate implementation risks are: (vii) Establishing an integrated reporting and management information systems and providing support to MOW, MoHCDGEC and PO-RALG in improving their capacity to collect, consolidate and use reak-time data on service delivery for planning and monitoring of the Program. (viii) Recruitment of a strategic program support consultant to carry out a range of activities in support of the effective implementation of the program. (ix) Recruitment of independent verification agent and developing a detailed verification protocol. (x) Conducting a national behavioral change and communication sanitation campaign. (xi) Strengthening the capacity of the Water Institute and Drilling and Dams Construction agency (DDCA) through provision of Training, technical advisory services and acquisition of the relevant equipment and Provision of technical advisory services and Training to strengthen the capacity of the institutions to promote effective implementation of the Program including improving the capacity to supervise borehole drilling, prepare engineering designs, standardize equipment, and apply simple water treatment applications. 6.0 PROGRAM KEY RESULTS (KR) The PDO is to increase access to rural water supply and sanitation services in participating districts and strengthen the capacity of select sector institutions to sustain service delivery. The proposed key results indicators for the Program are as follows: (i) Number of people with access to an improved water supply (male and female) - Corporate Results Indicator. (ii) Number of people with access to an improved sanitation facility (male and female) - Corporate Results Indicator. (iii) Number of sustainably functioning water points. (iv) Number of villages that achieve and sustain community-wide sanitation. (v) Number of districts submitting accurate and complete sector Monitoring and Evaluation data. 9 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 The intended Program results in the 17 geographic regions under the Program is as follows: * 3 million new people with access to improved water supply. * 45,000 at-risk water points made sustainable. * 4 million new people with access to improved sanitation. * 1,250 new villages with Community-Wide Sanitation. * 1,500 new primary schools and 1,500 new health clinics with improved WASH facilities. * Improved monitoring by LGAs. * New Rural Water Agency established and operational. 7.0 VERIFICATION OF THE RESULTS The Internal Auditor General (IAG) has been selected to be the Independent Verification Agent (IVA) for the SRWS Operation. This selection is based on IAG's role as an institution with both the independence and the mandate to conduct audits at the LGA level. 1AG has good experience in acting as the IVA in World Bank-funded projects, notably the Tanzania Strengthening Primary Health Care for Results Program (P152736) PforR lending operation. IAG will have the possibility of sub-contracting verification activities for which it does not have the technical expertise in-house. The IVA role is to provide independent verification of the data reported by the RUWASA and LGAs through MoW, using protocols agreed with the Bank. 8.0 PROGRAM IMPLEMENTATION ARRANGEMENT The Ministry of Water is the contracting authority whereas the implementing ministries are the President's Office - Regional Administration and Local Government; Ministry of Health, Community Development, Gender, Elderly, and Children; and Ministry of Education, Science, and Technology. RUWASA is responsible for implementation of Rural Water Supply in Tanzania. The Ministry of Water has established a Program Coordination Unit under the Directorate of Water Supply and Sanitation to carry out day to day Program activities. The institutional arrangements for the Program are described below: (i) The MoWI coordinates the implementation of the Program, through a national steering committee comprising the MoWI, MoHCDGEC, MoEST, PO-RALG, and MoFP. (ii) Sustainable access to improved water services in rural areas are implemented by the MoWI and the PO-RALG. (iii) increased access to improved sanitation services in rural areas, are implemented by the MoHCDGEC, MoEST, and PO-RALG. (iv) Strengthen the capacity of sector institutions to sustain service delivery in rural areas, are implemented by the MoWI and MoHCDGEC. Activities relevant for rural water are implemented by the MoWI whereas technical support activities pertaining to sanitation and hygiene are implemented by the MoHCDGEC. 9.0 AUDIT COMMITTEE The Audit Committee members were appointed by the Accounting Officer pursuant to provision of Regulation No. 32 (1) of the Public Finance Regulations of 2001. The Audit 10 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Committee functionally reports to the Permanent secretary who is the Accounting Officer for Vote 49. The Committee deals with all matters relating to finances and other related matters as shown in Table 2. Table 2: Audit Committee Members Name Position Age Qualification/ Nationality Date of Discipline Appointment Mr.Cassim Mambo Chairperson 55yrs MBA, BCOM, Tanzanian 11 August, 2020 CPA (T) PP Mr. PhiLipo C. Member 56yrs Msc Tanzanian 11 August, 2020 Chandy. Enviromental Science Mr. Rayner Member 50yrs MBA, CPA (T) Tanzanian 11 August, 2020 MatowoI Mr. Emmanuel Member 43yrs Msc in Water Tanzanian 11 August, 2020 Mwakabole. Supply and Sanitation Ms. Sabina Faya Secretary 49yrs LLB (Advocate Tanzanian 11 August, 2020 of the High ___________ _____ Court). Audit Committee Meeting During the Financial year ended 30 June 2021 the Audit Committee held four (4) Ordinary meetings which performed the following duties as shown below: Activities and Implementation of Audit Committee Meeting No. Activity/function Implementation planned 1 29 - 30/09/2020 The Committee discussed and gave its recommendations, advice and approved the following after the discussion: - i) Annual Internal Audit Report of 2020/21 ii) Financial Statements for the year ended 30 June 2020 iii) Financial Statements of Water Sector Development Programm II for the Year ended 30 June 2020. iv) Ministry of Water Internal Audit Guidelines which are a. Internal Audit Charter 2020. b. Audit Committee Charter 2020. c. Internal Audit Plan of 2020/2021 for National Water Fund d. Internal Audit Plan of 2020/2021 for Vote 49 2 15 -16 /06/2021 i) VOTE 49 and Consolidated InternaL Audit Report from Water Sector Implementing Agencies for the Second Quarter of Financial Year 2020/21. ii) Audited Report for Financial Year Ended to June 2020 in which it includes the implementing Agencies as follows: a. Reports of Basins' Boards -2020/21. b. Reports for Six National Water Supply and Sanitation Authorities-2020/21. 11 controller and Auditor General ARICGISRWSSP/MoW/2020/2 1 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 c. Water Sector Development Program Reports- 2020/2021. d. Presentation by the Project Coordinator for the WSSP 11 in Wami Ruvu Basin. e. Presentation by the Project Coordinator for the PFR Project in the Sustainable Rural Water Supply and Sanitation Program. During the financial year 2020/21, the audit committee held four ordinary meetings. The attendance of each members during the year under review is as shown in the Table 4 below: Attendance of the Audit Committee Members S/N Name Ordinary Meetings attendance 29/09/2020 30/09/2020 15/06/2021 16/06/2021 1 Mr.Cassim Mambo P P P P 2 Mr. Philipo C. P P P P Chandy. 3 Mr. Rayner Matowo. P P P P 4 Mr. Emmanuel P P P p Mwakaboie. 5 Ms.Sabina Faya P P P p KEY: P - Present A - Absent with apology Members of Tender Board S/N Name Position Age Qualification/ Nationality Date of Discipline Appointment 1 Mr. Barnabas Chairperson 59 Msc (Public Tanzanian 14/07/2021 Nduguru Administration) 2 Mr. Ahadi Msangi Member 56 CPA(T), MBA, Tanzanian 20/04/2021 LLB (Hons) 3 Mr. Philipo Member 56 Msc Tanzanian 20/04/2021 Chandy (Environmental Science) 4 Eng.William Member 57 Msc (Water Tanzanian 14/07/2021 Christian Supply) 5 Eng.Lyidia Member 44 Msc (Water Tanzanian 20/04/2021 Joseph Resources) 6 Mr. Robert Member 46 BA, MSc (Water Tanzanian 20/04/2021 Sunday Resources) 7 Mr.Prosper Member 51 MPP(ECOM), Tanzanian 20/04/2021 Buchafwe Master (Security EtStrategic) 8 Dr. Chrostopher Secretary 54 MBA, Msc (Info), Tanzanian 20/04/2021 P. Nditi MPM, PHD,APDS 12 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Tender Board Meeting During the year under review, the tender Board held four (4) ordinary meetings. The attendance of each member during the period under review is as shown in the Table 6 below: Attendence of the Tender Board Members S/No Name Meetings 26/07/2019 19/11/2019 16/06/2020 30/06/2020 1 Mr. Barnabas Nduguru P P p p 2 Mr. Ahadi Msangi P P p p 3 Mr. Phi[ipo Chandy P P p p 4 Eng.William Christian P P P P 5 Eng.Lyidia Joseph P P P p Mr.Robert Sunday P P P p 6 Mr. Prosper Buchafwe P P P p 7 Dr. Christopher P. Nditi P P P p KEY: P - Present A - Absent with apology 10.0 PERFORMANCE FOR THE YEAR 10.1 Achievements The Program achieved substantially on its duties and functions in line with the Program development Indicators for the financial year 2020/21. To mention a few, the followings were some of the major achievements for the Program: With the aim of management of program coordination unit, the Ministry conducted several Coordination meetings aimed at improving Program performance, Supportive Supervision on Construction of Water infrastructure, schools' toilets and health centers was done. The Unit continued to receive funds from World Bank and disburse them to implementing entities and provide technical assistance on financial management for those entities. Ministry manage to Update the Program operational manual report requirement to facilitate preparation of the Program financial statements. As a result, the program achieved the results against the Program Development Objectives (PDO) indicators and the intermediate results indicators in the Result Framework as shown below: Program Development Objectives Results Indicators Unit Program Previous -year 1 Actual -year 2(to be Targets for (verified results) verified) 6 years PDO 1: Number of Number 3,000,000 1,831,000 2,028,475 people with access to an improved water supply 13 Controller and Auditor General ARICG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 PDO 2: Number of Number 45,000 36,829 51,793 sustainabty WPS 50,115 30,216 functioning water Number points HHC PDO 3: Number of Number 4,000,000 2,602,650. 3,021,885 people with access to an improved sanitation facility PDO 4: Number of Number 1,250 72 847 villages that achieve and sustain community-wide sanitation PDO 5: Number of Number 86 Water supply: 54 86 district councils Sanitation: 0 36 submitting accurate and complete sector MEtE data Intermediate Unit Program Actual year I Actual year 2 (to be Results Indicators Targets for 6 (verified results) verified) years Intermediate Number 1,500 185 922 Results Indicator 1: Number of public schools with access to improved sanitation and hygiene facilities Intermediate Percent 0 31.1 33.5 Results Indicator 5: Enrolment ratio of female students for the Water Institute Intermediate Number 0 63 1,065 Results Indicator 6: Number of district community of practice meetings with citizen engagement Intermediate Percent 0 38.5 42.2 Results Indicator 7: Increase in access to hand washing facilities among the target population Intermediate Milestone 0 Audit, QA and QC Tech. support Results Indicator 8: units were agreement signed Agency established established and and implemented and operational operational. with 10 percent of CBWSO 14 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 10.2 Challenges There are challenges and constraints faced by the Ministry in due course of executing routine operations of the Program that limits and restricts effectiveness during the processes of the achieving Program aspirations. (i) Inadequate number of staff at RUWASA regional and District level. (ii) COVID 19 Emergencies: this is a global issue and each country has level of dealing with the pandemic situations. However, the pandemic challenges have affected Tanzania negatively especially with megaprojects which require external assistance and technology transfer. In this case SRWSSP is very much affected. We thus need an integrated approach to solve the issues of COVID 19 as the project duration period will be affected if we proceed without cure or immediate solutions. However, the project has suffered delays in terms of international supplies and lack of registration meeting of CBWSOs. (iii) Inadequate office accommodations for RUWASA at regional and district levels. (iv) VAT exemptions and improvements: GN on Taxation Issues; This takes a long time to address among our inter-ministerial approvals but MoW has reached consensus and does not expect much of challenges with the future project contracting and taxation issues. (v) Increasing water demand against water availability. (vi) Remoteness of some stations increased the costs of monitoring and evaluation. 10.3 Future Outlook/Way Forward The Ministry will continue to put more emphasis on the following priority areas as stipulated in the Ministry Strategic Plan: (a) Effective support for investment and institutional development - capacity building. (b) Develop guidelines for operation and maintenance and harmonize with Program design manual. (c) Building capacity to manage water supply and sanitation. (d) Enhance collaboration with MOFP, MOEST, MoHCDGEC and PO - RALG. (e) Rehabilitation of water infrastructure to ensure sustainability for water supply and sanitation. 10.4 Plans for 2021/22 In 2021/22, the Ministry planning to implement the following planned activities (a) To conduct coordination, review meetings with implementing entities for improvements of program performance. (b) Conduct Supportive Supervision to implementing entities financial management and Compliance on Medicine quality assurance. (c) To build capacity of implementers to meet the requirements of Program hence increase the performance of the program. 10.5 Risk Management and Internal Control The Management of the MoW assumes final responsibility for the internal control system and risk management of the Program. It is the function of the Management to ensure that proper internal control systems are developed and maintained on an on-going basis in order to bring reasonable assurance in respect to effectiveness and efficiency of its operations; safeguarding of the Program's assets; compliance with applicable laws and regulations; 15 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 reliability of accounting records and Operation sustainability on normal as welt as abnormal conditions. During the financial year the Program, mitigated probable risks using its internal controls available at various level of the Program's organisation structure, consistent with the existing regulations and risk management objectives. The audit Committee, the internal audit unit and segregation of duties which include pre audit (pre examination) were part of internal controls deployed by Management as its risk mitigation tools. The Management assessed the internal control systems throughout the financial year ended 30 June 2021 and satisfied that; the internal controls in place were effective and meet accepted criteria. 10.6 Solvency The Management confirms that, applicable accounting standards (IPSAS, TFRS, the Public Finance Act CAP 348 and other Governing legistratures) have been complied with and that the financial statements have been prepared on a going concern basis. Likewise, Management has reasonable expectation that, the Program will continue its operations for the foreseeable future. 10.7 Prejudicial Issues There were no issues beyond the management control in achieving objectives. 10.8 Political And Charittable Donations The program did not make any political donations during the financial year. 10.9 The Impact OF Covid-19 COVID 19 Emergencies is a global issue and each country has level of dealing with the pandemic situations. However, the pandemic challenges have affected Tanzania negatively especially with megaprojects which require external assistance and technology transfer. In this case SRWSSP is very much affected. We thus need an integrated approach to solve the issues of COVID 19 as the project duration period will be affected if we proceed without cure or immediate solutions. However, the project has suffered delays in terms of international supplies and lack of registration meeting of CBWSOs. 10.10 Cross Cutting Issues The Ministry has Programs to educate employees regarding the HIV/AIDS, Covid-19 pandemic and other chronic diseases such as hypertension, cancer and diabetes. In addition, employees are encouraged to examine their health regularly to enable them take appropriate actions in case of the need to do so. 10.11 Auditors The Controller and Auditor-General (CAG) is the statutory auditor for the Ministry pursuant to the provision of Article 143 of the Constitution of the United Republic of Tanzania of 1977 (revised 2000), and the Public Audit Act, 2008. 16 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 10.12 Conclusion The recorded Program achievements were possible through cooperation of staff and other stakeholders. The Ministry wilL continue to implement SRWSSP in line with the framework outlined in the Medium-Term Strategic Plan and maintain good financial management system. Eng. Anthony D. Sanga Date: ............ ... PERMANENT SECRETARY 17 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 STATEMENT OF MANAGEMENT RESPONSIBILITY Management of the Ministry of Water is responsible for the preparation of these Annual Financial Statements ended 30 June 2021, to which give a true and fair view of the entity's state of affairs and its operating results in accordance with International Public Sector Accounting Standards (IPSAS) on Accrual Basis, in conformity with the provision of the Public Finance Act Cap 348, Section 25 (2) t (4) (as revised in 2004). This responsibility includes; designing, implementing and maintaining internal controls relevant to the preparation and presentation of the financial statements that are free from material misstatement, whether on account of fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances which provide reasonable assurance that the transactions recorded are within statutory authority, and properly record the use of all public financial resources accordingly. This mandate was given as per the Ministers (Discharge of Ministerial functions) Act (cap 299) Government No.144 published on 22 April, 2016 which specifies the functions and responsibilities for the Government enterprises business and other matters. The Government budget for Ministry of Water (Vote 49) was approved for fiscal period from 1 July 2020 to 30 June 2021 and the Vote continued to operate in the same manner as in the approved budget for the period to 30 June 2021.To the best of our knowledge, the system of internal control has operated adequately throughout the reporting period and that the records and underlying accounts provide a reasonable basis for the preparation of the Financial Statements for the year ended 30 June 2021. Procurement of goods, works, consultancy and non-consultancy service to the extent that they are reflected in these financial statements have been done in accordance with the Public Procurement (Amendment) Act, 2016 and amendment Regulations 2016. The Management accepts the responsibility for the integrity of these financial statements, the information they contain and their compliance with the Public Finance Act No. 6 of 2001 (as revised in 2004) and its Regulations; International Public Sector Accounting Standards (IPSAS) Accrual's basis; and Guidelines issued from time to time by Paymaster General and Accountant General. Management is taking responsibility of building confidence to users of these financial statements that they portray the true and fair view of the state of affairs of the reporting entity. In our opinion, nothing has come to the attention of the management that the financial statements don't present fairly all material respect of the operations of the entity and will not remain a going concern for the next twelve months from the date of these statements. Eng. Anthony Sanga Date Accounting Officer 18 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 DECLARATION OF THE HEAD OF FINANCE AND ACCOUNTING UNIT The National Board of Accountant 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 the financial statement to be accompanied with the declaration issued by the head of Finance and Accounting responsible for the preparation of financial statements of the entity concerned It is a duty of the professional Accountant to assist the Management to discharge the responsibility of preparing the financial statements of the entity showing true and fair view of the entity position and performance with accordance with applicable international Accounting Standards and statutory financial reporting requirements. Full legal responsibility for the preparation of financial statement rests with the Management under Management Responsibility statement on earlier page. 1, Ahadi E. Msangi being the Head of Finance and Accounting Unit of the Ministry of Water (Vote 49) hereby acknowledge my responsibility of ensuring that financial statements for the year ended 30th June, 2021 have been prepared in compliance with applicable accounting standards and statutory requirements. 1, thus confirm that the Financial Statements give true and fair view position of the Ministry of Water (Vote 49) as on that date and that they have been prepared based on property maintained financial records. Signed by: ... Position: Chief Accountant NBAA Membership No: ACPA 2734 Date : ..................... 19 Controller and Auditor General AR/CG/5RWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 COMMENTARY TO THE FINANCIAL STATEMENTS 1. Introduction The program allocated its resources in the areas of priorities basing on planned activities focussing on adhering to the program priority areas; nevertheless, some of the activities were not fully implemented due to constraints that were caused by delays in disbursements of funds, hence some of the activities started late and wilt continue to be implemented in the financial year 2021/22. These financial statements include; statement of financial position, statement of financial performance, statement of changes in net asset/ equity, cash flows statement, statement of comparison of budget and actual amounts and notes to the financial statements as at 30th June, 2021. 2. Revenue Receipts The amount received for the year under review is TZS 232,592,121,241 which is 23 per cent% more than the TZS 178,770,300.714 seed money released in the 2019/2020 financial year, this increase is due to the significant results especially the large number of new people accessing clean water in rural areas amounted to 1.8 milion plus a large number of people with improved santation facilities, amounting to 2.6 milion. 3. Program Funds Distribution The approved budget for the Financial Year 2020/2021 for implementin Sustainable Rural Water Supply and Sanitation Program (SRWSPSRWSSP) was TZS 232,592,121,341 which includes TZS 3,753,886,500 for the MoW, TZS 191,944929,467 for RUWASA, TZS 28,467,204,701 for the Minstry of Health Community Development Gender, Elderly and Children and TZS 8,426,100,673 for the Ministry of Education Science and Technology, compared to TZS 178,770,300,714 in FY 2019/20. The increase by 30 per cent% was contributed by more financing as a result of good program performance in the prevous year. 2. Expenses and Transfers During the Financial Year 2020/21 the Program received a total of TZS 232,592,121,341 for implementation of Program activities. Out of this amount, a total amount of TZS 18,334,943,000 was spent as follows: TZS 5,271,842,388 by Ministry of water for coordination and implementation of the program, TZS 4,636,999,939 transferred to RUWASA HQ and TZS 8,426,100,673 transferred to the Ministry of Education, Science and Technology. 2.1 Current Grants, Transfer and Subsidies During the year under review MOW transferred funds amounting to TZS 13,063,100,612 to Implementing Agencies compared to TZS 42,714,541,875 transferred in the Financial year 2019/20. The decrease was caused by delay in the disbursement of funds. 2.2 Other Expenses During the year TZS 2,740,275,226 were spent under category of other expenses compared to 23,010,750 noting a increase due to high volume on consultancy Services, audit fee and audit supervision fees. 20 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2.3 Supplies and Consumable Goods During the year under review total expenditure for supplies and Consumable Goods amounted to TZS 918,183,316.00 as compared to TZS 7,667,139,553.43 in the previous financial year. The decrease by 18 per cent is due to delay in the disbursement of fund. 2.4 Depreciation and Amortization Expenses The depreciable amount of an asset is a systematic allocations cost over its estimated useful life as revealed in Figure 4 below. The Program recorded depreciation and amortization of TZS 17,707,045 on its Non-Current Assets compared to TZS 119,185,206.35 in the financial year 2019/20. 2.5 Finance Costs During the Financial Year 2020/2021 TZS 803,740.50 compared to TZS 8,238,486.11 in the 2019/20 were spent as the bank charges. 3. Assets Total Asset at the end of financial year comprises of; Current Asset of TZS 229,367,391,844 (Cash and Cash Equivalent and Prepayments) and non-current assets worth TZS 764,581,662 of (Property, Plant and Equipment). Total Assets for the year ended June, 2021 was TZS 230,131,973,506 compared to TZS 126,834,282,454.66 in the prior year. The increase relates to a increase on cash and cash equivalent due to amortization expenses. 3.1 Cash and Cash Equivalents The amount of Cash and Cash Equivalent as at 30 June 2021 were TZS 227,963,448,533 (TZS 225,328,178,686 at BOT program holding account and TZS 2,635,269,847 at CRDB Bank) as compared to TZS 103,061,571,615.65 in the financial year 2019/20. The increase was attributed to delay of disbursement of funds which leads to delay in transfer of funds to implementing agencies. 3.2Prepayments Prepayments as at 30 June 2021 amounted to TZS 1,403,943,311 (2019/20: TZS 4,648,348,127.89) which consist for acquisition of five motor vehicles and laboratory equipments for the Water institute as part of the IPF component. 3.3 Property Plant and Equipment Property, Plant and Equipment (PPE) contains Motor vehicle, Plant and Machinery, computer equipment, Office Equipment and Furniture and Fittings. The total carrying amount for PPE less of Accumulated Depreciation as ata 30 June 2021 was TZS 764,581,662 compared to TZS 649,460,625.20 for the previous year. The increase was mainly attribute to procurement of more assets. 4. Deferred Income This represents the income for activities that remained un-implemented for the year under review. During the year a total amount of TZS 227,863,661,955 was reported as deferred revenue. Compared to TZS 103,061,571,615.65 of 2019/20. The increase was attributed by late disbursement to the program on May 2021. 21 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 5. Net Asset Net Asset includes Taxpayers Fund and Accumulated Surplus/Deficit. Accounting Circular No. 2 of 2018/19 define Taxpayers fund as the public fund which includes all resources collected and spent by the Government in various infrastructures. The term Taxpayers Fund was adopted by the Government in respect of initial residual value, henceTaxpayers fund is expected to be static after the lapse of IPSAS implemention which ended transitional period in the financial year 2016/17. The program has the Net Asset worth TZS 2,268,311,552 as at 30 June 2021 compared to TZS 19,176,520,306.33 for the prior year. 6. Cash Flow Statement Cash Flow Statement comprises of Cash flow from operating activities, Cash flow from investing activities and Cash flow from financing activities. 6.1 Cash Flow from Operating Activities During the year under review the Program received a total sum of TZS 232,592,121,341. Total payment made were TZS 16,722,362,900 resulting to a Net Cash Flow from Operating activities of TZS 215,869,758,440. 6.2 Cash Flow from investing activities Under this item TZS 1,612,580,100 were spent to Purchase and Construct non-current assets. Hence, the Net cash flow from investing activities is TZS 1,612,580,100. Accounting Officer ate 22 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 Details Notes 2020/21 2019/20 TZS TZS ASSETS Current Assets Cash and cash 20 227,963,448,533 103,061,571,615.65 equivalents Prepayments 21 1,403,943,311 4,648,348,127.89 Total Current Assets 229,367,391,844 107,709,919,743.54 Non-current Assets Property, plant and 22 764,581,662 649,460,625.20 equipment Work in Progress 23 0 18,465,026,585.92 Intangible Assets 24 0 9,875,500.00 Total Non - current 764,581,662 19,124,362,711.12 Assets Total Assets 230,131,973,506 126,834,282,454.66 LIABILITIES Current liabilities Deferred income- capital 14 205,077,295,759 107,657,762,148.33 nature Deferred income- 14 22,786,366,196 recurent nature Total current liabilities 227,863,661,955 107,657,762,148.33 Non-Current Liabilities Deferred income 0 0 Total non -Current 0 0 liabilities Total Liabilities 227,863,661,955 107,657,762,148.33 Net Assets 2,268,311,552 19,176,520,306.33 Net Assets Presented By Accummulated Surplus 2,268,311,552 19,176,520,306.33 TOTAL NET A ETS 2,268,311,552 19,176,520,306.33 Eng. Anthony Sanga Date: ACCOUNTING OFFICER 23 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2021 2020/21 2019/20 Revenue Notes TZS TZS Revenue from non exchange transaction Amortized revenue 13 18,334,943,000 71,112,538,565.45 Gain on Exchange 23 47,628,977 52,157,595.27 translation Total Revenue 18,382,571,977 71,164,696,160.72 Expenses Wages Salaries and 0 (221,553,717.00) Employee benefits Current Grants, 16 (13,063,100,612) (42,714,541,875.00) Transfers and Subsidies Supplies and 15 (918,183,316) (7,667,139,553.43) Consumables Routine Maintanance 0 (1,234,506,266.50) Finance Costs 17 (803,741) (8,238,486.11) Other Expenses 18 (2,740,275,226) (23,010,750.00) Depreciation of 27 (17,707,045) (119,185,206.35) property, plant and equipment Total expenses (16,740,069,939) (51,988,175,854.39) Surplus for the period 1,642,502,038 19,176,520,306.33 Eng. Anthony D. Sanga Date: .... . .. . ACCOUNTING OFFICER 24 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2021 Details Accumulated Total Surplus TZS TZS Balance at 1 July 2020 19,176,520,306.33 19,176,520,306.33 Adjustment; transfer to 18,550,710,792.33 18,550,710,792.33 RUWASA Balance after Transfer 625,809,514.00 625,809,514.00 (MoW) as at July, 2020 Surplus during the year 1,642,502,038.00 1,642,502,038.00 Balance as at 30 June 2021 2,268,311,552.00 2,268,311,552.00 Balance at 1 July 2019 0.00 0.00 Surplus during the year 19,176,520,306.33 19,176,520,306.33 Balance as at 30 June 2020 19,176,520,306.33 19,176,520,306.33 ........... ..... /Y1 Eng. Anthony Sanga Date:. ...... /. ACCOUNTING OFFICER 25 Controller and Auditor General AR/CG/5RWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 CASH FLOWS STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2020/21 2019/20 Notes TZS TZS Cash flows from operating activities Reciepts Revenue from exchange 12 232,592,121,341 178,770,300,714 transactions Total receipts 232,592,121,341 178,770,300,714 Payments Wages, Salaries and 0.00 (221,553,717.00) Employee benefits Current Grants, Transfers and 15 (13,063,100,612) (42,714,541,875.00) Subsidies Supplies and Consumables 14 (918,183,322) (7,667,139,553.43) Routine Maintanance 0.00 (1,234,506,266.50) Finance Costs 16 (803,741) (8,238,486.11) Other Expenses 17 (2,740,275,226) (23,010,750.00) Total payments (16,722,362,900) (51,868,990,648.04) Net cash generated from 215,869,758,440 126,901,310,065.74 operating activities Investing activities Acquisition of property, 26 (208,636,788) (768,645,831.55) plant, and equipment Prepayment 21 (1,403,943,311) (4,648,348,127.89) Work in Progress 0.00 (18,465,026,585.92) Purchase of Intangible Assets 0.00 (9,875,500.00) Net cash flow from investing (1,612,580,100) (23,891,896,045.36) activities Net increase/decrease Cash 214,257,178,341 104,009,414,020.38 and cash equivalent Cash and Cash equivalent at 13,658,641,209 0 the beginning Gain on exchange 47,628,977 52,157,595 transaction Cash and Cash equivalent at 227,963,448,533 103,061,571,615.65 the end of period Eng. 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W С и U � Й � С� �� а W � П1 i V у� �� С � v С U С � а � у� U � W F- Uг , гр U ца 4% � v Q W С =а% ~� °П � г s� � и W Т й L а U га � д_ С J W С] Ш и U го го С J ш � W� � Q� `1 И а� С � д L U а� Ш а и с и� � �� а о г° L � � F- F- о й �а' г.� О Q С с С о С +� v С о О ш � и�7 Н а и го и l7 ii О а n. г F- г � � • - - • - - -- iй MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTES TO THE FINANCIAL STATEMENTS 1. General Information The Program operates as per requirement of section 8 of Public Finance Act CAP 348. It is a second phase of GoT Water Sector Development Program (WSDP-2) that is specifically intended to improve access to water supply and sanitation services. PRINCIPAL PLACE OF BUSINESS BANKERS Ministry of Water Bank Of Tanzania, Government City - Mtumba, 2 MIRAMBO STREET, Maji Street ACCOUNT NUMBER: 9931231101 P.O.Box 456, ACCOUNT NAME: Sustainable Rural Water Dodoma Supply And Sanitation Program (SRWSSP) P.0 BOX 2939, 11884 Dar Es Salaam ACCOUNTING OFFICER, BANKERS Eng. Anthony D. Sanga CRDB Bank, Government City Lapf Branch, P.0 Box 456 Account Number: 0150532293200 Dodoma Account Name: SRWSSP Project Dodoma AUDITORS Controller And Auditor General LAWYER The National Audit Office, Audit House Attorney General, 4ukaguziRoad, P.0 BOX 9050, P.O.Box 950 Dar Es Salaam 41104 Tambukareli Dodoma 2. Reporting Entity The Financial Statements of Sustainable Rural Water Supply and Sanitation Program are prepared as specified in the relevant legislation and requirement of section 25 of Public Finance Act No.6 of 2001 as revised in 2004 and para 8.1.3 of MoU between the United Republic of Tanzania and World Bank for implementation of Sustainable Water Supply and Sanitation Program using common implementation arrangements. 3. Significant Controlled Entities There were no entities controlled by the Program during the financial year ended 30 June 2021. The program has three implementing entities which are RUWASA, MOEST and MOHSW. 4. Statement of Compliance and Basis of Preparation These financlat Statements comply with International Public Sector Accounting Standards - Accrual basis of Accounting, the measurement bases applied is historical 28 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 cost adjusted for revaluation of assets to ascertain the deemed cost. The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period. Moreover, the financial Statements have been prepared in accordance with Public Finance Act CAP 348, Circulars and Guidelines issued by the Accountant-General's Department. 5. Authorization Date The financial statements were authorized for issue on 28 December 2021 by Eng. Anthony D. Sanga 6. Summary of Significant Accounting Policies The accounting policies adopted, which are consistent with those of previous years, are shown below. 6.1 Reporting Period The reporting period for these Financial Statements is the financial year of the Government which runs from 1July 2020 to 30 June 2021. 6.2 Foreign currency translation Functional and presentation currency Items included in the financial statements of the Department are measured using the currency of the primary economic environment in which the Government of Tanzania operates ("the functional currency"). These financial statements are presented in Tanzanian Shillings (TZS), which is the Government's functional and presentation currency. Transactions and balances Foreign currency transactions are translated into Tanzanian Shillings using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of financial performance. 6.3 Cash and cash equivalents Cash and bank balances in the statement of financial position comprise cash at bank and short-term deposits with an original maturity of three months or less, and is measured at amortized cost. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined, net of outstanding bank overdrafts 6.4 Unspent Cash Balance In accordance with the requirement of the Public Finance Act Cap 348. Unspent cash balances by the program at the end of the financial year are carried forward to the subsequent financial year as the agreement between the Government of Tanzania and the World Bank. 29 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 6.5 Revenue from non-exchange transactions Revenue from non-exchange transactions mainly comprises Exchequer Revenue. Exchequer Revenue is recognized after amortization of Recurrent Differred Income and Development Deferred income realised during the year under review. 6.6 Expenses In general, expenses are recognized when are incurred. 6.7 Property, Plant and Equipment Property, Plant and Equipment is stated at cost, excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the cost of any replacement parts in accordance with the related recognition criteria. The Program has adopted straight line method for depreciation of Assets which is allocated systematically over the useful life of the respective assets as per IPSAS 17, the Government Asset Guidelines issued on 30th April, 2019 and the applicable accounting policies. The depreciable amount of an asset is allocated on a systematic basis over its estimated useful life. The prevailing International Standard for depreciation shall be applied over the useful life of the assets. In accordance with the Generally Acceptable Valuation Principles (GAVP), depreciation for valuation purposes shall be the adjustment made to the replacement cost to reflect physical deterioration, functional and economic obsolescence. Depreciation The Program adopted straight line method for depreciation of Assets which is allocated systematically over the useful life of the respective assets as guided under the Government Asset Guideline of 2019 and applicable accounting policies. The depreciable amount of an asset is allocated on a systematic basis over its estimated useful life. The prevailing International Standard for depreciation is applied over the useful life of the assets. In accordance with the Generally Acceptable Valuation Principles (GAVP), depreciation for valuation purposes shall be the adjustment made to the replacement cost to reflect physical deterioration, functional and economic obsolescence. Estimated Useful Life (EUL) Assets ran an economic life peculiar to themselves depending on make, constant handling and operational use. Some assets are continued in use much beyond the EUL due to periodical maintenance and repairs. Assets expected life are projected in ranges as follows: 30 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Description Years Administration assets Leasehold land . Buildings : Office 50 Furniture and Fixtures 5 Motor vehicles: Light duty (below 5 tons) 5 Office Equipment 5 The carrying values of cash - generating property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of financial performance in the year the asset is derecognized. 6.7 Events after Reporting Date Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for issue. Two types of events can be identified: (a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and (b) those that are indicative of conditions that arose after the reporting period (non- adjusting events after the reporting period). 6.8 Financial Instruments Financial Instruments include cash and cash equivalents (financial Asset) and accounts payables (financial liability). Financial Instruments are recognized in the statement of financial position at cost. This approximates fair value due to their short term nature. The Ministry financial liability include only financial instrument which are recognized from supplies of goods or services not yet paid at reporting date. 6.9 Deferred income revenue This relates to Program grant received in which the related expenses have not been incurred, therefore the amount has been deferred to the next financial period. 7. Significant Accounting Judgments, Estimates and Assumptions The preparation of the Program financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. 31 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 7.1 Determination of the useful lives of Property, Plant and Equipment Management uses reasonable judgment in determining the useful lives and hence depreciation rates of the items of property, plant and equipments. The residual values, useful lives and methods of depreciating property, plant and equipment are reviewed, and adjusted if appropriate, at each financial year end. 7.2 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 carrying amounts of assets and liabilities within the next financial year are liabilities regarding utilities such as: telephone, water and electricity. Values given to assets are more estimates based on the initial price or in line with its assumed wear and tear. 8. Future Changes in Accounting Policies Standards issued but not yet effective up to the date of issuance and some amendment thereon which might have impact in the Ministry financial statements are listed below. This listing of standards issued is those that the Department reasonably expects to have an impact on disclosures, financial position or performance when applied at a future date. The entity intends to adopt these standards when they become effective. Financial Instruments-IPSAS 41.The The Ministry is currently assessing the effective date of IPSAS 41 is 1 impact of complying with this standard January 2021. 9. Exchange Rates All monetary amounts in the financial statements are expressed in Tanzanian Shilling, the legal tender shown as TZS. As at 30 June 2021 the closing rates for United States dollar as per BOT was: Currency 30 June 2021 30 June 2020 United States Dollar (USD) 2,287.495 2,285.089 10. Risks Management Objectives and Policies The Ministry is subject to a number of financial and operational risks, hazards and strategic risks and is responsible for ensuring appropriate risk management strategies and policies are in place within any mandate provided by legislation. a) Interest Rate Risk Interest rate risk refers to the risk of loss due to adverse movement in interest rates. In general interest rate risk is managed strategically by issuing a mix of fixed and floating rate debt. b) Foreign Exchange Risk Foreign exchange risk refers to the risk of loss due to adverse movements in foreign exchange -ae. A range of instruments Is currently being used to minimize the Department's exposure to foreign exchange risk which include 32 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 currency. This affected the Department on payments of foreign travel Per diem and travel tickets. c) Credit Risk Credit risk refers to the risk of a loss due to the non-performance by counterparties to discharge an obligation. Financial instruments which subject the Government to credit risk include bank balances and receivables, advances and investments. The entities within the Government reporting entity manage their exposure to credit risk by: (i) Maintaining credit exposure only with highly rated institutions, for which the probability of default is low. The credit worthiness of counterparties is continuously monitored; (ii) Ensuring diversification of credit exposure by limiting the exposure to any one financial institution; and (iii) In some instances, requiring a form of collateral from counterparties. d) Liquidity Risk Liquidity risk refers to the loss due to the lack of liquidity preventing quick or cost effective liquidity products, position or or portfolios. Liquidity risk is managed on an individual entity basis, which generally requires entities to hold assets of appropriate quantity and quality to meet all thgeir obligations as they fall due. 11. Reconciliation of actual amounts on a comparable basis and actual amounts in the financial statements for the year ended 30 June 2021 A reconciliation between the actual amounts on a comparable basis as presented in the statement of comparison of budget and actual amounts and the actual amounts in the statement of cash flows for the year ended June 30 2021 is as follows: Reconciliation of Actual Amount on Comparable Basis Between Statement of Compansion of Budget and actual Amounts and Statement of Cash flows. Details Operating Financing Investing Total Actual amount 215,869,758,440 - 1,612,580,100 217,482,338,540 on comparable basis as presented in the budget and actual comparative statement. Basis 0 0 0 0 differences Timing 0 0 0 0 differences Actual amount 215,869,758,440 1,612,580,100 217,482,338,540 in the statement of cash flows. 33 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2021 2020 TZS TZS 12. Revenue from non exchange transaction I Cash received 232,592,121,341 178,770,300,714 I 13. Amortized revenue Wages, Salaries and Employee Benefits 0.00 221,553,717.00 Current Grants, Transfers and Subsidies 13,063,100,612 42,714,541,875.00 Supplies and Consumables 918,183,322 7,667,139,553.43 Routine and Maintanance 0.00 1,234,506,266.50 Finance Costs 803,741 8,238,486.11 Other Expenses 2,740,275,226 23,010,750.00 Acquisition of property, plant, and equipment 208,636,788 768,645,831.55 Prepayment for Motor vehicles and Laboratory 1,403,943,311 0.00 equipments Intangible Asset 0.00 9,875,500.00 Work in Progress 18,465,026,585.92 Total Amortized revenue 18,334,943,000 71,112,538,565.45 14. Deffered Income Opening balance 13,606,483,614 0 Received during the year 232,592,121,341 178,770,300,714 Total available funds 246,198,604,954 178,770,300,714 Less: amortized grants (18,334,943,000) (71,112,538,565.45) Total Deffered Income 227,863,661,954 107,657,762,148.33 15. Supplies and Consumable Conference Facilities 71,822,250 333,217,149.57 Communication Information 0.00 16,461,125.95 Diesel 61,215,000 1,149,460,049.64 Ground travel (bus, railway taxi, etc) 3,560,000 50,000,000 Office consumable 7,340,000 440,673,677.83 Per Diem - Domestic 637,496,066 5,470,577,515.77 Printing and Photocopying Costs 0 147,985,434.83 Rental Expenses 0.00 33,813,000.00 Tuition Fees 136,750,000 575,000.00 Utilities 0.00 24,376,599.84 Total 918,183,316 7,667,139,553.43 16. Current Grants, Transfers and Subsidies Grants Transfers to RUWASA 4,636,999,939 0.00 Grants Transfers to MoEST 8,426,100,673 25,6628,7,25,125.00 Grants Transfers to MoHSW - 17,085,816,750.00 Total 13,063,100,612 42,714,541,875.00 17. Finance Cost Finance cost 803,741 8,238,486.11 Total 803,741 8,238,486.11 34 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 18.Other Expenses Audit Fees (Legal, Audit, Consultancy, 100,912,500 23,010,750.00 Agency etc) Audit supervision fees 352,288,000 0 Verification fees 2,287,074,726 0 Total 2,740,275,226 23,010,750.00 19. Depreciation Expenses Depreciation of Machinery 0.00 15,488,799.33 Depreciation of Computer, Photocopier and 14,670,600 78,120,427.42 Printers Depreciation of Biycles and Motor cycles 0.00 3,920,023.00 Depreciation of Furniture and Fittings 3,036,445 12,838,337.81 Depreciation of Water Wells 0.00 8,809,618.79 Total 17,707,045 119,185,206.35 20. Cash and Cash Equivalents Cash and balances with central bank 225,328,178,686 13,658,641,209.13 Cash and balances with CRDB bank 2,635,269,847 89,402,930,406.52 Total 227,963,448,533 103,061,571,615.65 21. Prepayments Payment to UNOPS for Motor Vehicles 710,300,302 502,823,740 Computer and Photocopier 0 58,682,400 Laboratory Equipment 693,643,009 0 Total 1,403,943,311 561,506,140 22. Property, Plant and Equipment Motor Vehicle 711,460,528 502,823,739.66 Computers, Photocopiers and Printers 44,011,800 58,682,400.00 Furniture and Fittings 9,109,334 0.00 Pumps, Pipes and Fittings 0.00 4,086,841,988.23 Total 764,581,663 4,648,348,127.89 23. Work in Progress Water infrastrctures 0.0 18,465,026,585.92 24. Intangible Assets Computer Software-Water Billing System 0.00 9,875,500.00 25.Gain on Exchange Translation BOT Bank Balance USD 98,504,337 5,977,290.43 BOT Exchange rate at 30 June 2021 2,287 2285.1 BOT Bank Balance TZS 225,328,178,686 13,658,641,209 BOT Cash books TZS 225,280,549,709 13,606,483,614 Gain due to Exchange Fluctuations 47,628,977 52,157,595 26. Fund Received for the Program Total funds received 232,592121,341 178,770,300,713.78 Notes on funds received: 2020/21 6-May-21 received USD 75,926,740.00 at 2287.09 TZS/USD 173,651,334,173 3-Jun-21 received USD 25,770,089.61 at 2287.18 TZS/USD 58,940,787,168 35 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2019/20 17 Sept 2019 165,523,155,629.42 24 Sept 2019 4,556,237,600.00 28 Nov 2019 8,690,907,484.36 27. Comparative Information The Program commenced in financial year 2019/20, the Financial Statement were prepared in consolidation (MOW HQ and RUWASA HQ) in the previous financial year as RUWASA were not a Reporting Entity thus no Segment Account was prepared and this was based on the Operatinal Manual that requires Minstry of Water to prepare Consotidaed Financial Statements for the Programme. In 2020/21,during the Mission with the World Bank, The Operational manual was revised and it was agreed and Individual Financial Statement to e prepared by each Implementing Entities. Wit the view of the above statement is concerned and the reviewed Operational Manual, The Comperative Information of the prepared Financial Statement was based on the prepared Consolidated Financial Statement of the year ended 30 June 2019/20. 28. Segment Reporting Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the consolidated financial statements for the financial year ended 30 June 2020 of the Sustainable Rural Water Supply and Sanitation Program and the MoW Financial Statements ( Coordination Unit). In doing so, adjustment has been made on the Consolidated Statement of Financial Position to enable Sustainable Rural Water supply and Sanitation to prepare their Financial Statements for the year ended 30 June 2021 basing on the closing balance of the year ended 30 June 2020. Adjustment on the Closing Balances of the Consolidated Statement of Financial Position for the year ended 30 June 2020 Details Consolidated Figure Transferred to MoW HQ (2019/20) RUWASA (2020/21) TZS TZS ASSETS Current Assets Cash and cash 103,061,571,616 89,402,930,407 13,658,641,209 equivalents Prepayments 4,648,348,128 4,086,841,988 561,506,140 Total Current Assets 107,709,919,744 93,489,772,395 14,220,147,349 Non-current Assets Property, plant and 649,460,625 637,314,846 12,145,779.00 equipment Work in Progress 18,465,026,586 18,465,026,586 0.00 intangible Assets 9,875,500 9,875,500 0.00 Total Non - current 19,124,362,711 19,112,216,932 12,145,779.00 Assets Total Assets 126,834,282,455 112,601,989,327 14,232,293,128 LIABILITIES 36 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Current liabilities Deferred income- 0 recurent nature Total current liabilities 0 0 0 Non-Current Liabilities Deferred income- 107,657,762,148 93,489,772,395 14,167,989,753 Capital Nature Total non -Current 0 0 liabilities Total Liabilities 107,657,762,148 93,489,772,395 14,167,989,753 Net Assets 19,176,520,306 19,112,216,932 64,303,375 Net Assets Presented By Accummulated Surplus 19,176,520,306 19,112,216,932 64,303,375 TOTAL NET ASSETS 19,176,520,306 19,112,216,932 64,303,375 37 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 � о ry °ro о о � о й а й ° ,'°•� N р 'л �О 3 0i � � и `G а0 Г � � с � М N ОП 1 N �У о � Оп 1 N и с м~ � ^ о � � � аМ N � � м м � а `° ° 1� � а N й N rn о v N оо й - --- - рр иw� 1в О �i7 � �+ р у �рΡ iri Г� v� nj � °� Cj ^ Е w�� "т- � о о оа 7 1с0 7 ы и о0 � м рр � LS N V � Q tQ � � и � rn ° ао v °о °о °O пмi °м ° оо v � г�i n м `° `° с м 0 N СО W н N О О� й у� С р� м N С V� N и{.� V V О о0 �D °� N С и�� N и ^ М � Ё Q'G ш У- '^ о�о � а а оо Р И а` L N� ор � о .� Q м � н ао Е Q м Е п а Ф� и ^ м � Ё р� � v - с � о о и о о о о и � м о г� � го с с � � � го � с м оо v с .С р о о �;� .о о n а 'С �� rn м н �N го�лG и о w о'� rovG и^ м а U� О . � Ф д � �„� � а� �+ � � со о� р с� а �п= а ��� м у � v оа � � Ш д. 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Reconciliation of Surplus with Net Cash flow from Operating Activities The Government through Circular No. 11 of 2014/15 adopted a direct method in reporting cash flows from operating activities in tine to Para 28 Et 29 of IPSAS 2. This option as per the referred standard requires reporting entities to provide a reconciliation of the surplus/deficit from ordinary activities with the net cash flow from operating activities as per Table 11 below. Table 3: Reconciliation of Surplus with Net Cash flow from Operating Activities Details 2021 2020 Surplus for the year 1,642,502,038 625,809,514 Non-Cash Movements Add: Depreciation Expense 17,707,045 3,036,445 Add: Increase in Deferred Revenue 214,257,178,335 13,606,483,614 Less: Gain on Exchange Translation (47,628,977) (52,157,595) Net Cash Inflow from operating Activities 215,869,758,440 14,183,171,977 40 Controller and Auditor General AR1CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 31. STATEMENT OF PERFORMANCE FOR THE FINANCIAL YEAR 2020/2021-DEVELOPMENT EXPENDITURES Annual Physical CUMMULATIVE STATUS ON MEETING THE PHYSICAL ACTIVITY Activity Planned Activity Actual Annual Estimates (TZS) Progress GE E U Final Budget Actual Releases from Cumulative Variance (App i2 .1st July 2020 to 30th Expenditure 1st Budget Vs Actual c June 2021 July 2020 to 30th 0 o June 2021 E 1 2 3 4 5 6 7 8 9 Supply of Office The 50% / 210,000,000.00 210,000,000.00 98,760,000.00 111,240,0( operations and Supply of Administrative Office operations and Administr ative have not yet done by June 2021 To review Budget The 0% / 162,150,000.00 162,150,000.00 0 162.150,0C and Plans in order review of to be in line with the the Program budget objective and plans have not yet done by June 2021 Conduct quarterly The 46% / 261,000,000.00 261,000,000.00 121,000,000.00 140,000,0( spot checks to support enhance financial quarterly performance and spot Management of checks to the Program. enhance financial performan ce and Manageme nt of the Program have done particial by June 2021 Support the The 100% f 151,155,000.00 151,155,000.00 151,155,000.00 internal audit to review of carry out the the Quarterly review budget of the reports and plans issued by the have not implementers for yet done quality by June assuarance and 2021 risk management conduct Program Monitoring 100% / 180,000,000.00 180,000,000.00 124,088,0( audit of 55,912,000.00 ftverification program activities has been conducted 41 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 particially as planned by June 2021 training on Safety 50% f 126,960,000.00 126,960,000.00 65,960.Of financial gears have 61,000,000.00 management, not been reporting, procured monitoring and by June evaluation in 2021 Regions and Districts To strengthen Communic 100% / 63,240,000.00 63,240,000.00 Environmental ation tools 63,240,000.00 impact have been assessment and procured reinforce Human and Resource capacity facilitated for proper impelementation of NSC Conduct quarterly Big Notes 100%. / 5,760,000.00 5,760,000.00 spot check to board/ 5,760,000.00 verify Writing implememntation board has of the program at been all levels in 86 procured selected regions by June 2021 to conduct Camera 70% / 248,720,000.00 248,720,000.00 148,720,000.00 100,000,0( supervision by procured steering by June committee and 2021 ministry high level Conduct quarterly Workshop 40% / 138,560,000.00 138,560,000.00 78,785,5, steering itll 59,774,458.63 committee conducted meeting by June 2021 Facilitate the To 0% / 286,600,000.00 286,600,000.00 0 286,600,0( participation into Facilitate national ad the international participati conferences on into national ad internatio nal conferenc es have not yet done by June, 2021 Training on Training 0% / 422,800,000.00 422,800,000.00 0 422,800,0( Procuremen on issues Regional Procurem and District en issues Regional and District have not yet done by June, 2021 facilitate Procurem 22% / 118,080,000.00 118,080,000.00 118,080,000.00 procurement ent activities of the activities program of the 42 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 program have been done by June 2021 conduct 5 days The 37% / 262,230,000.00 262,230,000.00 193,730.0 annual TWG annual 68,500,000.00 meetings to share TWG updates and meetings challenges in to share Program updates management at and all levels challenges in Program managem ent at all levels have particial done by June 2021 Grievance ad The 0% / 50,400,000.00 50,400,000.00 50,400,0( complain Grievance handling ad echanism complain established and handling operational echanism establishe d and operation at have not yet done by June, 2021 conduct training The 20% / 480,000,000.00 480,000,000.00 420,000,)( to regioanal level training to 60,000,000.00 on Grievance regioanal Redress level on Mechanism and Grievance Develop GRM Redress Teams at District Mechanis level m and Develop GRM Teams at District levethave not yet done by June, 2021 Develop and The 0% / 53,000,000.00 53,000,000.00 0 53,000,0( improved Gender Developm Action Plan, train ent and and dissemination improvem by the support ent of from tanzania Gender Gender Network Action Progra Plan, train and dissemina tion by the support from tanzania Gender Network Programh ave not ,yet done _ _ _ _ _ _ _ _ _ _ _ _ 43 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21 MINISTRY OF WATER - VOTE 49 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 by June, 202 TZ-MOW-69883- The 100% 2,855,997,618.37 2,855,997,618.37 2,855,997,618.37 Cs- verificatio QCBS/Verification n of the Sustainable activition Rural Water have done supply and by June Sanitation 2021 program for 2019- 2021 TZ-MOW-154120- The four 100% / 710,300,302.00 710,300,302.00 710,300,302.00 GO-UN / Supply vehicle for of four (4) Motor water Vehicles institute have been procured by june, 2021 TZ-MOW-154813- The 100% / 693,643,009.00 693,643,009.00 693,643,009.00 GO-RFQ / Procurem Procurement of ent of Water Well Water Drilling Well Laboratory Drilling Equipment, Pipe Laborator testing y equipment and Equipmen Meter Test Bench t, Pipe testing equipmen t and Meter Test Bench have been done by June 2021 Fund transferred All fund 100% / 225,111,525,411.43 225,111,525,411.43 13,063,100,612.00 212,048,424,7 to Implementing received Entities transferre d to MOHCDGE C Grand Total 232,592,121,340.80 232,592,121,340.80 18,334,943,000.00 214,257,178,34 44 Controller and Auditor General AR/CG/SRWSSP/MoW/2020/21