THE UNITED REPUBLIC OF TANZANIA j NATIONAL AUDIT OFFICE WImmrf MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL AND COMPLIANCE AUDIT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 PROJECT ID: P164906 IDA CREDIT No.7022 Controller and Auditor General, National Audit Office, "Ukaguzi" House, 4 Mahakama Road, P.O. Box 950, 41101 Tambukareli, Dodoma, Tanzania. Tel: 255 (026) 2161200-9, E-mail: ocaq@nao.qo.tz Website: www.nao.go.tz March 2025 AR/CG/LTIP/2023/24 About the National Audit Office Mandate The statutory mandate and responsibilities of the Controller and Auditor-General are provided for under Article 143 of the Constitution of the United Republic of Tanzania of 1977 and in Section 10 (1) of the Public Audit Act, Cap. 418. Vision To be a credible and modern Supreme Audit institution with high-quality audit services for enhancing public confidence. Mission To provide high-quality audit services through the modernisation of functions that enhance accountability and transparency In the management of public resources. Motto Modernising External Audit for Stronger Public confidence Independence and Professional objectivity competence We deliver high-quality audit We are an ftopartial public srks based an. institutton. W#de"esdently awIt resoa oftering high-quality audit knwldg.sils epdobestna services to our clients in an -nwar kls Wbs unbUased manner.Prcie Teamwork Spirit Integrity CORE We value and work VALUES We observe and maintain high together with internal VALUESethical standards and rules of and external law in the deivery of audit stakeholders. services. Results-Oriented Creativity and we focus On innovation 4chievements of reliable. We encourage. crcate, timely, accurate, useful, and Innovate value- and clear performance adding Ideas for the targets. Inprovement of audit sefvces. @ This audit report is intended to be used by Land Tenure Improvement Project and may form part of the annual general report, which once tabled to National Assembly, becomes a public document; hence, its distribution may not be limited. Controller and Auditor General AR/CG/LTIP/2023/24 TABLE OF CONTENTS Abbreviations.............................................................................iv 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL .1 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS..................... 1 1.2 REPORT ON COMPLIANCE WITH LEGISLATION.............................4 2.0 FINANCIAL STATEMENTS ....................... Error! Bookmark not defined. Controller and Auditor General ARCGILTIP/2023/24 Abbreviations CAG Controller and Auditor General CCROs Certificate of Customary Rights of Occupancy CROs Certificate of Rights of Occupancy ESCP Environmental and Social Commitment Plan ESF Environmental and Social Framework ESMT Environmental and Social Management Team GBV Gender Based Violence ILMIS Integrated Land Management Information System IPSAS International Public Sector Accounting Standards ISSAIs International Standard of Supreme Audit Institutions LGAs Local Government Authorities IMP Labor Management Procedures LTIP Land Tenure Improvement Project MEtE Monitoring and Evaluation NBAA National Board of Accountants and Auditors PAA Public Audit Act PAC Public Accounts Committee PAR Public Audit Regulation PDO Project Development Objective PFA Public Finance Regulations PIT Project Implementation Team PPA Public Procurement Act PPR Public Procurement Regulations RPF Resettlement Policy Framework PLUM Participatory Land Use Management SEA-SH Sexual Exploitation and Abuse-Sexual harassment SEP Stakeholder Engagement Plan TFRS 1 Tanzania Financial Reporting Standard URT United Republic of Tanzania Controller and Auditor General AR/CG/LTIP/2023/24 iv 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL Accounting Officer, Ministry of Lands, Housing and Human Settlements Development, Mtumba-Government City, P.O. Box 2508, 40477- DODOMA, TANZANIA. 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS Unqualified Opinion I have audited the financial statements of the Land Tenure Improvement Project implemented by Ministry of Lands, Housing and Human Settlements Development , which comprise the statement of financial position as of 30 June 2024, the statement of financial performance, the statement of changes in net assets, the cash flow statement, and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. In my opinion, the accompanying financial statements present fairly in all material respects, the financial position of the Land Tenure Improvement Project as of 30 June 2024, and its financial performance and its cash flows for the year that ended in accordance with International Public Sector Accounting Standards (IPSAS) Accrual basis of accounting and the manner required by the Public Finance Act, Cap. 348. Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under those standards are further described in the section below entitled "Responsibilities of the Controller and Auditor General for the Audit of the Financial Statements". I am independent of the Ministry of Lands, Housing and Human Settlements Development 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/CGILTIP/2023/24 Other Information Management is responsible for the other information. The other information comprises the Statement of the Minister, Statement of Accounting Officer, Statement of Management Responsibility, Declaration by the Head of Finance, and but does not include the financial statements and my audit report thereon which I obtained prior to the date of this auditor's report. My opinion on the financial statements does not cover the other information, and I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information that I obtained before the date of this audit report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements per IPSAS and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the entity's financial reporting process. Responsibilities of the Controller and Auditor General for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an audit report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the Controller and Auditor General AR/CG/LTIP/2023124 2 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, 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 to design audit procedures that are appropriate in the circumstances but not to express an opinion on the effectiveness of the entity's internal control; * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my audit report. However, future events or conditions may cause the entity to cease to continue as a going concern; and * Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determined 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 Controller and Auditor General ARICGILTIP/2023/24 3 or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest of such communication. In addition, Section 10 (2) of the Public Audit Act, Cap. 418 requires me to satisfy myself that the accounts have been prepared in accordance with the appropriate accounting standards. Further, Section 48(3) of the Public Procurement Act, Cap. 410 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 LEGISLATION 1.2.1 Compliance with the Public Procurement laws Subject matter: Compliance audit on procurement of works, goods, and services I performed a compliance audit on the procurement of works, goods, and services in the Land Tenure Improvement Project implemented by the Ministry of Lands, Housing and Human Settlements Development for the financial year 2023/24 as per the Public Procurement laws. Conclusion Based on the audit work performed, I state that, except for the matter described below, procurement of goods, works and services of the Land Tenure Improvement Project is generally in compliance with the requirements of the Public Procurement laws. Non-execution of consultant services I noted that the Project, through the Ministry of Lands, Housing, and Human Settlement Developments, entered into contractual agreements with various consultants for consultancy services worth TZS 1,598,313,000. However, during my audit in September 2024, 1 observed that the consultancy services were not executed due to delays in the procurement processes for securing consultants. 1.2.2 Compliance with the Budget Act and other Budget Guidelines Subject matter: Budget formulation and execution I performed a compliance audit on budget formulation and execution in the Land Tenure Improvement Project implemented by the Ministry of Lands, Housing and Human Settlements Development for the financial year 2023/24 as per the Budget Act and other Budget Guidelines. Controller and Auditor General .... AR/CG/LTIP/2023/24 4 Conclusion Based on the audit work performed, I state that, except for the matter described below, Budget formulation and execution of the Land Tenure Improvement Project is generally in compliance with the requirements of the Budget Act and other Budget Guideline Partial Implementation of Budgeted Activities TZS. 8,726,460,000 I observed from the audit of budget management that the Project planned to implement activities amounting to USD 58,812,540 equivalent to TZS 137,921,286,700 during the year under review. However, I noted that the activities worth USD 3,721,148 equivalent to TZS 8,726,460,000 (6 percent) were partially implemented due to inadequate internal controls over budget management an elays in the procurement processes. Charles E. Kichere Controller and Auditor General, Dodoma, United Republic of Tanzania. December 2024 Controller and Auditor General AR/CG/LTIP/2023/24 5 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 1.0 ABOUT THE PROJECT 1.1 Background Information The Government of United Republic of Tanzania (URT) through the Ministry of Lands, Housing and Human Settlements Development has requested the World Bank financial support for impLementing Land Tenure Improvement Project (LTIP) in the Country. The project aims at increasing security of land rights and efficiency in land administration in the Country. The project will also promote land-based investments and ensure inclusion for social economic development of the country and her citizen. The rationale behind the project is to address critical challenges which face the land sector in Tanzania. Less than 20 percent of the land in Tanzania is planned, surveyed and registered. The current land registration process is sporadic, expensive, and does not provide a complete database for planning, cadastral survey, certification, taxation and other related uses and management of land matters. While community norms may provide a perceived tenure security, as pressure on land resources increases, documentation of land rights may help property holders to be more secure and more likely to invest in improvements to the property, as well as reducing potential for land conflicts. The lack of property ownership and geographic (spatial) information such as land use data, cadastraL data and topographic maps negatively affecting government land rent revenue collection efforts and effective planning for growth and land development. Land disputes exist in both rural and urban areas. Conflicts are tied to increasing population pressure; conflicting Land uses, such as grazing versus cultivation; proliferating peri-urban development and overlapping land concessions. Women's land rights are relatively wel-supported in Tanzania's formal legal framework, but women's Land rights are often undermined as customary Laws which favour male inheritance, are widely practiced. The legal framework is in place for systematic registration of both rural and urban land parcels. However, progress has been slow, procedures are complex, and most citizens do not understand procedures for acquiring Certificate of Customary Rights of Occupancy (CCROs) for people living within villages or a Certificate of Rights of Occupancy (CROs) for those in urban areas. 1.2 Project Objectives The Project Development Objective (PDO) of the LTIP is to strengthen the national land administration system and increase tenure security in selected areas for both men and women. The key results indicators for LTIP are: To support "strengthened land administration system": (i) Increased number of CRO transactions. (ii) Reduction in average time for issuance of a CRO, first registration. Controller and Auditor General - --_ AR/CGILTP/2023/24 6 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 To support "increased tenure security": (i) Increased perception of tenure security (gender disaggregated). (ii) Number of certificates (CROs, CCROs, RL) registered (gender disaggregated). (iii) Degree of satisfaction of beneficiaries with the process for systematic issuance of CROs, CCROs (Percentage) (gender disaggregated). 1.3 Project Components The LTIP project encompass four key elements as stipulated below; Component 1: Increased Tenure Security. The component deals with rural mass certification and Urban certification. Component 2: Land Information Management: The component deals with upscaling of Integrated Land Management Information System (ILMIS), Production of Base-maps, Enhancement of Geodetic Framework and Property Valuation Systems. Component 3: Physical Development of the Land Administration System. The component deals with construction of Regional Land Offices for 25 regions and renovation/reconstruction of District Land Offices, support for the Land and Housing and institutional Strengthening and Capacity Building. Component 4: Project Management. This Component support effective project management, fiduciary support (financial management and procurement), monitoring and evaluation of project activities, establishment of a Monitoring and Evaluation (MEtE) framework, and compliance with Environmental and Social Framework (ESF) policies and processes. 1.4 Accounting Policies Financial Statements were prepared on the underlying assumptions of the best practices underlying public accounts. The LTIP operation manual and Government's accounting policies were considered during preparation of this financial statements. However, Project operational manual is subject to an annual review to ensure continuing compliance with International Public Sector Accounting Standards (IPSAS) Accrual Basis. 1.5 Compliance with TFRS I The Financial statement have been prepared in compliance with International Public Sector Accounting Standards (IPSAS) Accrual Basis but also in compliance with Tanzania Financial Reporting Standard (TFRS 1) 1.6 Strategies to achieve project Objectives The project objectives to be achieved within five years life of the project is summarized below with their strategies to achieve Controller and Auditor General ARICGILTIP/2023/24 7 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 S/N Project Objectives Strategies 1. Increased number of CRO a) Increase the number of CRO issuance transactions b) Review of land Laws to enable land fees to be amortized after the issuance of CRO 2. Reduction in average time for a) Rolling out and Automation of ILIMIS issuance of a CRO, first registration system (Days) b) Using of one stop Centre such as Ardhi Clinic 3. Increased perception of tenure Increase community awareness on the security perception of land tenure 4. Number of certificates (CROs, a) Rolling out and Automation of ILIMIS system CCROs) registered b) Increase public awareness on the importance of CRO and CCRO c) To improve the regularization process by increasing the capacity of Ministry of land with the equipment 5. Degree of satisfaction of a) Planning and surveying should be done beneficiaries with the process for systematically and not sporadic systematic issuance for CROs, b) Reduce time of registration processes CCROs c) Increase transparency in registration process d) Increase sensitization and participatory planning 1.7 Risk Assessment The Project Management understands the specific sources of risk and analysis of their impact on implementation of planned activities. In the financial year 2023/24 the Project reviewed risk assessment matrix to enable the analysis of cost-effective mitigation strategies. Among the types of risks that face LTIP and their mitigation strategies are provided. 1.8 Management and Employees' Relationship A healthy relationship existed between management and employees. All complaints received by Management from the employees during the year were timely resolved. The Project is an equal opportunity employer. It gives equal access to employment opportunities and ensures that the best available person is appointed to any given position, free from discrimination of any kind and without regard to factors like gender, marital status, tribe, religion or disability. 1.9 Training Facilities Training of LTIP human resources and outside stakeholders is one of the priorities. In financial year 2023//24 the Project trained safeguard team, PLUM team, Procurement team and Accounts team for the purpose of increasing efficiency in implementation of project activities. 1.9.1 Environmental and Social Activities Safeguards is one of the key issues in the project, and hence the Environmental and Social Management Team (ESMT) has been established to that effect. Among its 7Controller and Auditor General __AR/CGILTIP/2023/24 8 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR_THE YEAR ENDED 30 June 2024 functions is to oversee the implementation of the Labor Management Procedures (LMP), Resettlement Policy Framework (RPF), Stakeholder Engagement Plan (SEP) and Environmental and Social Commitment Plan (ESCP). Training for Safeguards issues has been conducted to Local Government Authorities (LGAs) which are implementing the project, guiding preparation of implementing mitigation measures in Environmental and Social Management Plan (ESMP) and preparing ESMP reports. During the year, stakeholders' engagements at different stages of the project from Mtaa/vilage, Districts, Municipals, Cities and National levels were conducted. The Project Implementation Team made follow-up on environmental and social risks in order to make sure that they are adequately addressed and monitored at all stages: Child labor, Gender issues, Gender Based Violence / Sexual Exploitation and Abuse- Sexual harassment (GBV/SEA-SH), In-migration and related conflicts with communities and social health, including HIV/AIDS in accordance with World Bank's policy requirements. 1.10 Gender Parity The Project has 30 employees with long term contract out of which 11 are female equivalent to 36.7% and 19 are male equivalent to 63.3%. Project has planned to put favorable environment for supporting field activities and attract female interest in field activities (Para-surveyors) by using satellite imagery 1.11 Stakeholders relationship The project has a good relationship with stakeholders including employees and other interested parties. During the year 2023/24 the project conducted one National Stakeholders Engagement Forum to discuss the implementation of the project. The project also conducted district stakeholder engagement forums in the Districts where the project was implemented. The project engaged Civil Society Organizations in the implementation of project activities especially in sensitization of the project and public awareness as whole but also in dealing with social and environment issues in the places where the project is being implemented. 1.12 Staff welfare Number of employees The project has a total of 30 employees who are working in the project as a Project Implementation Team (PIT), the management continues with the effort in order to have adequate number of employees so as to improve service delivery and efficiency in the achieving of project objectives. The employees in the project are the employees of the Ministry of Lands, Housing and Human Settlement Development appointed by the Permanent Secretary to form a Project Implementation Team and therefore they are not paid by the project, Controller and Auditor General AR/CGILTIP/2023/24 9 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 During the financial year 2023/24 the project employed contractual individual consultants who are working full time with the project for the purpose of capacity building in the areas of Financial, Procurement and Monitoring and Evaluation, the Individual Consultants are paid Consultancy fee and therefore they are not in the pensions fund schemes Management and Employees Relationship The management believes that happy and productive employees are the foundation of success to any organization. In that vein, the ministry has created supportive and conducive environment at workplace for all workers regardless of the gender. All employees are treated equally and opportunities for career advancement and other available benefits are open to alL Relationship between employees and management is continually positive. The management encourage employees to air and raise their views and complaints through departmental meetings, workers' councils, trade union representatives and other channels where they can be resolved by open dialogue in line with public service regulation. Training and Career Development During the Financial year the project provided training to the safeguard team, PLUM team, Procurement team and Accounts team who are implementing the project at district level with the purpose of increasing their delivering capacity, The project has a subcomponent of capacity building and during the five years of the project, will be trainings, workshop, scholarships and study tours, all is to boost a career development of employees within the project and ministry as whole. 1.13 Auditors The Controller and Auditor General (CAG) is the statutory auditor for the Ministry of Lands, Housing and Human Settlements Development pursuant to the provisions of Article 143 of the Constitution of the United Republic of Tanzania of 1977 and Sections 30 - 33 of the Public Audit Act Cap. 418. 1.14 Liquidity For the financial year 2023/24 the project received funds amounting to TZS 56,162,910,831.85 to implement project activities, meaning the project is liquid to meet the current and non-current obligations, for the financial year 2024/25 the project has agreed with the World Bank Group to fund the annual work plan approved. Controller and Auditor General AR/CGILTIP/2023/24 10 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 2.0 IMPLEMENTATION ARRANGEMENT AND MANAGEMENT OF THE LTIP PROJECT 2.1 Project Technical Committee (PTC) Project implementation is guided by a PTC made up of Directors or Heads of the technical Departments and Sections of MLHHSD that are engaged in the project. It will comprise of representatives of the Project Implementation Team, and representatives of the Ministry of Finance and PO-RALG. Each member of this Team with activity in the project is the owner of the activity within the Ministry and has a role of defining technically what should be done by PIT and any other assigned individuals in implementing the project in that activity. The Technical Committee is chaired by PS-MLHHSD and meets monthly in the first week of every month. The Secretary of the PTC is the Project Coordinator. The PTC is responsible for overall technical guidance and review of key deliverables, supporting preparation of TORs and technical specifications for the project, resolving issues among departments for smooth project implementation, and ensuring effective monitoring and evaluation of project activities. Specifically, the PTC will: i. Provide guidance on technical procedures of implementing project activities; ii. Harmonise professional and technical discrepancies; iii. Review quarterly work plans, cash flow forecasts and the progress of Project implementation against log-frame indicators, quarterly plans and budget; iv. Advise on the sum and disbursements of the flexible fund, based on criteria developed and approved by the Project Steering Committee; and v. Approve procurement plan and identify issues that need to be resolved at a high level, with accompanying action points. 2.2 Stakeholders Engagement Forums Different stakeholders' forums and communications were held prior to and during project implementation. These forums were held at different levels that are National, District/Council and Mtaa/Village levels depending on the theme to be discussed, implemented or shared. The purpose of these forums is to discuss and agree on the roles of the stake holders, their participation in the implementation processes and receive their views on how to improve the process. Roles and Responsibilities of SEF: The roles of the stakeholder's forum include but not limited to: 1. Be acquainted with the project and share common understanding of its activities, objectives and outcomes and participate as a corporate body or individually in sensitizing project; 2. Presents experience culture of the community in relation to land involvement procedures and safeguard issues; 3. Advise on best practices for community engagement; Review and discuss on the project success and challenges in relation to community involvement; and 4. Provide general feedback to any or all responsible authorities to the project on the project implementation [process. The forums are but not limited to. Controller and Auditor General -- AR/CG/LTIP/2023/24 11 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR-THE YEAR ENDED 30 June 2024 2.2.1 National Stakeholder Meetings The PIT convenes a national level Stakeholder Engagement Forum to discuss the Project details including purpose, objective, scope other details as described in the PAD, ESMF and SEP. Members of the forum will include, but are not limited to, representatives from the MLHHSD, other ministries, CSOs (covering environmental, social and Land issues), LGAs, Academic Institutions, traditional leaders, Registration Boards, and political representatives. The first national level stakeholders meeting held in the first week of January, 2023. The meeting focused on a two-way dialogue where issues related to Project implementation are discussed (project details as described in the PAD, planned activities, upcoming challenges, stakeholders roles, stakeholders mapping in the areas of implementation, modality of communication and reporting etc.); Other matters are activities implemented by the CSOs; emerging issues in land sector relevant to project implementation; emerging thematic issues (VG, women's land rights, environmental concerns etc) which may affect project implementation; opportunities to collaborate; avoidance of duplication of effort; etc., so that good practices can be shared and joint solutions for challenges proposed. Virtual platforms will be used for participation and if in person meetings are held, all participants will be provided with a per diem to attend the meeting commensurate with the costs associated with the location of the meeting. 2.2.2District Stakeholder Meetings District stakeholders' engagement forums were also conducted in various Districts. Participants includes the PIT, Regional, District and local officials, political leaders and locals CSOs. The meeting at the district level, amongst other issues, discussed project success, challenges and related matters. 2.2.3Village/Mtaa Stakeholders Meetings The Project facilitated meetings at the village and Mtaa level. The meetings at this level brings different actors including Village Adjudication Committee, Village Government, Mtaa Government, Vulnerable and Marginalised groups, CSOs, Project Contractors, Consultants, traditional leaders, religious leaders and other project beneficiaries. These meetings will discuss the implementation of the project, challenges, success and the way forward. 2.3 Project Implementation Team (PIT) PIT has the responsibility of managing day to day project implementation and reporting to the respective authorities for action. It is headed by a Project Coordinator appointed by the Permanent Secretary MLHHSD. It is responsible for project implementation and supervising the field teams, contractors and consultants hired to perform the works of the Project. The PIT is also responsible for: project coordination, procurement, financial management, monitoring and evaluation, social and environmental management, training management, communications, field coordination for systematic registration, and Legal issues. Controller and Auditor General ARCG/LTIP/2023/24 12 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 2.3.1 Composition of the Project Implementation Team (PIT) The PIT is under the Project Coordinator who reports directly to the Permanent Secretary (PS) for MLHHSD. The Project Coordinator is responsible for general oversight of the project and for planning and budgeting of project activities and working closely with core departments of the Ministry including Surveys and Mapping; Urban and Human Settlements Land Planning; Land Administration; PMU, etc. The PIT includes a full-time team consisting of staff transferred from MLHHSD or other government entities or recruited from the labor market to oversee among others, project coordination, procurement, financial management including project budget preparation, monitoring, and evaluation, ESF oversight, communications, ICT, training management and overall technical coordination. 2.3.2 Recruitment of Staff in the Project Implementation Team The PIT staffs include Procurement, Social, Environmental, Financial Management and Monitoring and Evaluation (M and E) Specialists recruited through competitive tendering process guided by the World Bank Procurement Regulations of 2013 Administratively and functionally, the contracted staffs are under the Project Coordinator at the PIT who assesses performance of each contracted staff and submit quarterly reports to the Technical Committee. Similarly, the Ministry of Lands, Housing and Human Settlements Development (MLHHSD) assesses through Open Performance Review Appraisal System (OPRAS), assess performance annually of all project staff internally transferred to the project. ler and Auditor General ARICGILTIP/2023/24 13 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Figure 2.1: LTIP Project Structure and Implementation Arrangements Steering Committee Technical Committee RLO 1 --------- *:::: PITSEF -National, L O I District/Council and Mtaa/Village levels D/CLO Urban/Rural Cert/Constr Managers Council Urban Certification Office (CUCO) District Rural Certification Office (DRCO) Urban Field Urban Field Direct Buildings Direct Rural Field Certfication. Cert. Firms Cert Teams Construction Teams Teams Controller and Auditor General AR/CGILTIP/2023/24 14 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDD 30 June 202 2.3.3PIT Institutional Structure PIT has management oversight and reporting responsibilities for all components of the Project. It integrates the financial and technical progress reports from each Regional centre. Full staffing of the PIT as set out in the Operational Manual (OM). The PIT prepares annual project budgets for implementation and submit to the Project Steering Committee (PSC) for approval and then to the World Bank (WB). The PIT plays a role to disseminate information to beneficiaries, liaising with technical officers on complaints, grievance and case updates, generating lists of beneficiaries to facilitate follow-up etc. The Unit will also ensure that VGs are part of the project implementation so that their specific needs and concerns are identified and addressed. 2.4 Environmental and Social Management Team This team is composed of Social and Environmental Specialists, environmental officer and social officer transferred from the MLHHSD. The Environmental Specialists facilitate and provide technical support on the management of environmental issues including the screening process for risk assessment, assist in the preparation of Environmental and Social Impact Assessment (ESIA) and ESMPs, based on the proposed project activities in Line with the Environmental and Social Management Framework (ESMF) Sections 7.2 and 7.3. Core Implementing Teams 2.5 Regional Land Office (RLO) Regional land office consists of officials responsible for scrutinizing and approving land deliveries at regional level and includes Assistant Commissioner for Lands, Land Regional Town Planner, Regional Land Surveyor, Regional Valuer and Assistant Registrar of Titles. They are not under PIT but they are responsible for verification, quality rechecking, scrutinization and approval of the outputs produced by staff of his/her area of work just as it is provided in their day to day working instruments, except that they are doing it massively as delivered by the system. They are facilitated DSA for field according to the procedures provided in the Public Finance Act 2001 (and its subsequent amendments), the Public Finance Regulations, the Public Standing Orders, and Circulars) to oversee how the work is conducted and any other verification prior to approval to avoid unnecessary delays during approval as illustrated in 2.13 and 2.14. 2.6 District Land Office (DLO) District office is organized at District or Council level as defined by the current approved government structure. It is responsible for processing council's approval for activities requiring such approvals, scrutinizing land service outputs and approve, keep record or recommend to the regional offices for approval. The office consists of District/Council Head of Department, Planner, Surveyor, Valuer, Cartographer and Land Officer. 7Controller and Auditor General AR/CGILTIP/2023/24 15 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 2.7 District/Council Urban/Rural Field Office (DICFO) District land office is organized at District level in case of Rural Certification and Council level in case of urban certification. It is responsible for supervising and administering all activities of certification in the District or Council as appropriate. The office consists of a Planner, Surveyor, Land Officer, Valuer, Geographic Information System (GIS) Officer, Environment Officer and Social Officer. Main duties of this office are to mobilize, perform and supervise all certification activities in the District/Council. They are internally transferred to the PIT from the MLHHSD or any other public office and will work for the period designated for that work in that District/ Council although they may be picked to continue working in the subsequent Districts/Councils should the need arise. 2.8 Construction Manager This is in the PIT, responsible for monitoring the construction of all buildings to be constructed by the Project and ensure efficiency of processes, quality of products, compliance with ILMIS requirements and other relevant standards. The Construction Manager will consequently approve, observe, or reject progress reports and deliverable. This unit is responsible for preparing Terms of Reference for construction supervisory consultants, review their reports, carry out reviews of construction documents and site inspections, identify issues, and produce progress reports. LController and Auditor General AR/CGILTIP/2023/24 16 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Figure 2.5: PIT Structure Project Coordinator Project Supporting Staff from all Technical Departments with Activities in the Project (Land Planning, Surveying and Mapping, Valuation, Titling, Project Specialist Registration, Social, * Procurement Environment, * Financial Procumbent, * Environmental Construction, Accounting * Social and Planning and M & E * M&E * Training Core Implementation * ICT Urban Constructi Rural Manager on Manager Manager Urban Land Certification Office (ULCO) Rural Land Certification Office (RLCO) Council/District Field Supervisor (CFS) District Field Supervisor (DFS) Field Team Supervisor (FTS) Field Team Supervisor (FTS) Controller and Auditor General AR/CGILTIP/2023/24 17 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 PERFORMANCE FOR THE PERIOD Updates on Progress on the Project Development Objectives (PDO) The Project Development Objective (PDO) is to strengthen the national land administration system and increase tenure security in selected areas for both men and women. Increased Number of CRO transactions For 2023/2024, Councils in Dar es Salaam and Dodoma City have started registering and issuing CROs, paving the way for CRO transactions. From October 2023 to June 30th, 2024, there were 649 (Mortgage: 195, Transfer: 454) and Dar es Salaam 3,509 (Mortgage: 1,845, Transfer:1,664) CRO transactions. Hence, 4,158 CRO transactions were registered. The achievement against Dar es Salaam and Dodoma City Council targets is 72% of the project target. As the project scales up and more CROs issued, the project is expected to realize the set targets. Reduction in Average time for issuance of a CRO, First registration (Days) In the 2023/2024, the average time to issue CROs increased to 81.16 days, up from 31.2 days in previous quarters. This increase is due to the higher volume of documents that need to be reviewed, cross-checked, scanned, and uploaded. The MLHHSD/LTIP should consider increasing human resources at the LGA Level to address this. The LTIP aims to streamline the issuance of Certificates of Right of Occupancy (CRO) by speeding up the processing of land titles after clients fulfill their obligations, including legal payments. The MLHHSD's recent initiative to use a single control number for al payments could help reduce processing times. Increased perception of tenure security The landowner's perception of tenure security influences their choices in diverse domains, including using their land as collateral to secure loans from banks, enhancing and developing their property, making investments, or leasing the land to generate income. It falls under the Sustainable Development Goals (SDGs) 1.4.2. The findings show that landowners who feel their land rights are secure at baseline is 83.5%. However, females' perception of the security of their Land rights was slightly higher than males at 83% and 81.3%, respectively. Landowners' lack of knowledge and understanding, coupled with Limited confidence in law enforcement agencies and their previous experiences of involuntary loss of land rights, impacted their perception of land tenure. Number of certificates (CROs, CCROs) registered The project aimed to register 250,000 CROs and 200,000 CCROs in the first two years. So far, 64,144 CCROs have been registered, with significant contributions from Maswa District (32,983 CCROs) and Tanganyika District (23,716 CCROs). In urban areas, Dar es Salaam and Dodoma city councils have registered 36,505 and 387 CROs, respectively, with Dar es Salaam's total reaching 36,892 CROs across its councils. Despite these efforts, the registrations are significantly below targets, achieving only 15% of CROs and 32% of CCROs. The lack of NIN for Landowners is a significant Controller and Auditor General ARICGILTIP/2023/24 18 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 challenge for rural certification. However, with the scaling up of the project and private firm involvement, the targets are expected to be met. Degree of satisfaction of beneficiaries with the process for systematic issuance for CROs The target for beneficiary satisfaction for the project's first two years is 50%. For 2023/24, in rural certifications (CCROs), female beneficiaries reported a satisfaction rate of 98.3%, with males trailing closely at 97.6%. Overall, the data portrayed an impressive overall satisfaction rate of 97.9% among all beneficiaries, highlighting the program's effectiveness and success in meeting their expectations and needs. For Urban certifications, the overall satisfaction rate for the entire systematic issuance of CROs process across the three pilot Mitaas, namely Bihawana, Mkwawa, and Mapinduzi B, stood impressively at 68.2%, exceeding the target of 50% set for year- two targets of 50%. Component 1: Increased Tenure Security Number of residential licenses issued The indicator measures the number of certificates (residential licenses) issued by the registrar of titles to landowners who have not fulfilled the conditions to quality for the Certificate of Rights of Occupancy (CROs). The target for 2023/24 was to issue 300,000 residential licenses. However, in areas where LTIP started regularization, namely Dodoma, Chalinze, Mtwara, Kahama, Shinyanga, and Kigoma, no residential license was issued for the financial year ended June 2024 as all beneficiaries qualify for CROs. Number of villages with land certificates The registration of the Village land certificate involves lengthy procedures and is time-consuming. It requires the submission and surrender of the previously issued certificates, many of which are lost or misplaced due to various reasons, mainly the absence of village land registries and negligence during the transfer of Village leadership. Besides, many Villages claim to possess Village Land Certificates (VLCs); however, the existing certificates do not accurately reflect the current ground conditions, prompting a re-survey, especially in Maswa, Songwe, and Mufindi villages. In the previous quarters, October - December 2023 and Jan - March 2024, 152 and 119 villages obtained VLCs. However, as of 30th June 2024, 471 VLCs have been completed, surpassing the agreed second-year targets (150) outlined in the POM, representing 314% achievements. However, VLUPs have increased from 250 to 1,667 as advised by the Parliamentary Committee; hence, the target should be revised accordingly to align with the changes. Number of village land registries renovated The Ministry of Lands, Housing, and Human Settlements Development (MLHHSD) is undergoing a significant transformation by digitalizing its processes to ensure the efficient and effective use of information and communication technologies. In light of this transformation and considering the rising costs of renovations and the need Controller and Auditor General AR/CGILTIP/2023/24 19 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THJE YEAR ENDED 30 June 2024 for complete reconstruction of many registries, Village Land Registries will not be renovated in the traditional sense. However, clients can access their land titles online through structured processes that will not require issuing a hard copy of the document. The Village Executive Officers (VEOs) will be trained to attend all various land applications. They will be issued with tablets and means to connect to the system for easy access and service the applications as needed. Number of VLUPs completed The preparation of VLUPs under LTIP is divided into two categories: one for CCRO preparations covering six (6) Districts (Chamwino, Maswa, Mbinga, Mufindi, Songwe, and Tanganyika). The other category without CCRO preparations partly incorporates villages within districts such as Rorya and Ngara that border international boundaries. Until 30 June 2024, 846 Village Land Use Plans (VLUPs) were completed and approved by the Village assembly. Of them, 273 are under the CCRO registration processes in six (6) targeted District councils: Chamwino, Mufindi, Songwe, Tanganyika, Mbinga, and Maswa, and 573 are in the remaining Districts that involved VLUPs only. Relying on the previous set target per POM, the achievement represents 109%, which is very significant with the target. Increased collection of land rent For 2023/24, land-related rent collection stood at TZS.138,900,888,982.98 (approximately U$D 55,560,355.59). The highest collection was recorded in July and August, with collections of TZS 16,185,265,877.06 and TZS.15,257,698,940.84, respectively. The land rent collections exceeded expectations by achieving 122% of the POM/PAD Year 2 target (192.6 billion, TZ). Despite this success, there remains a crucial need for intensified sensitization campaigns and awareness-raising efforts. Ensuring landowners promptly pay their rent and address any delinquencies is essential to maximize government revenue generated from land. Component 2: Land Information Management Number of offices with ILMIS operational In the financial year 2023/24, seven (7) offices (Dar es Salaam, Dodoma, Nzega TC, Kahama MC, Chalinze District Council, Kigoma Ujiji District Council, and Shinyanga MC) have ILMIS operational, representing 35% of the target. The major challenge to establishing ILMIS in other areas is lack of internet connectivity and other infrastructural facilities. However, efforts are underway to renovate the respective offices to pave room for ILMIS establishment. Number of districts with updated base maps The target of the project for 2023/2024 is to update base maps for 35 Districts. However, no Districts have updated base maps. Base maps were last updated in the 1970s. The indicator will be executed through the MLH1HSD LDI Project. LTIP project is working collaboratively with Land Development Infrastructure (LDI) Project to realize the indicator. The TOR for procuring non-consulting services to create Controller and Auditor General ARICGILTIP/2023/24 20 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 orthorectified mosaic drone-based imagery at a 5cm spatial resolution has been prepared pending no objection from the World Bank. Number of districts with CORS coverage The project's target for years one and two is to establish CORS coverage in 15 Districts. However, for the financial year 2023/24, no CORS has been established in any District. The CORS contract was signed on 31 May 2024, and the kick-off meeting is stated for 4 July 2024 to pave the way for actual implementation. Component 3: Physical Development of Land Administration System Number of District Land and Housing Tribunals (DLHTs) operational During the 2023/24 period, 12 new DLHTs were established: Siha, Meatu, Monduli, Mkalama, Arumeru, Ikungi, Longido, Mbozi, Kalambo, Malinyi, Nyasa, and Urambo. Consequently, there are now 105 DLHTs operating across the country. Despite the limited budget, the project will continue supporting DLHTs registrar office to ensure more DLHTs are established. The end target (72) will be revised as it has been surpassed. Number of people informed on the project, including land administration, and certification process The project target for year one and two is reach 500,000 people with information on the project including land administration and certification process. For the financial year 2022/23, these programs have reached 667,820 (M=473,590, F=1 94,230) people, representing 134% of the second-year target (500,000). The efforts successfully surpassed the targets. However, the reach towards females remains significantly lower than males, highlighting the ongoing challenge of achieving gender parity in land ownership in Tanzania. Number of staffs trained The project target is to train 600 MLHHSD staff for years one and two. In the financial year 2023/24, the project conducted several capacity-building reaching 1,084 (M=761, F =323) staff benefiting from various capacity-building initiatives. The achievement compared to targets for the number of MLHHSD staff trained and female staff trained stands at 181% and 108%, respectively, surpassing the targets set for the second year. While capacity building across multiple areas is beneficial, improving report writing skills is particularly urgent. Therefore, management should reassess priorities and prioritize enhancing the proficiency of personnel in this aspect. controller and Auditor General ARICGILTIP/2023/24 21 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Component 4: Project Management Project Midterm Review As stated in the PAD/POM, the MLHHSD/PIT, with the assistance of an individual consultant, conducted the Midterm review of the project. The primary objective was to support the government and IDA in evaluating project progress, assessing status, achievements, challenges, and lessons learned to enhance implementation efficiency, effectiveness, relevance, sustainability, and impact. However, the review took place just one year into the project, attributed to disbursement delays. The project contract came into effect in February 2022. However, the initial disbursement was made in late December 2022, leading to the actual implementation starting in February 2023. The MTR was completed in collaboration with the LTIP MtE team, the findings in Arusha were thoroughly discussed, and the report was submitted to the World Bank. Several areas were identified for review, mainly dropping and adding new indicators that will suit the project considering the land sector challenges, best practices, and potential growth. Number of surveys completed (Number) The project target for year one and two is to conduct two surveys. In the financial year 2023/24, the project conducted a Baseline Survey and Midterm Review. Hence the target for surveys has been realized by 100%. Quarterly and annual progress reports prepared The project target is to prepare eight (8) reports for years one and two. However, seven (7) project progress reports have been prepared until the end of 2023/2024. A progress report for July to September 2022 was not prepared as no project activity was implemented due to delays in the disbursement of project funds. Hence, the target has been released by 87.5%. Controler and Auditor General ARICGILTIP/2023/24 22 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 STATEMENT OF MANAGEMENT RESPONSIBILITY These Financial Statements have been prepared by Management of the Project under Permanent Secretary (PS), Ministry of Lands for the year ended 30 June 2024. The Management accepts the responsibility for the integrity of these financial statements, the information they contain and their compliance with the section 30(2) Et (4) of the Public Finance Act No. 6 of 2001 [RE 2020] (and subsequent amendments) and its Regulations; international Public Sector Accounting Standards (IPSAS) Accrual Basis; and Guidelines issued or that may be issued from time to time by Paymaster General (PMG) and Accountant General (ACGEN). 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. Management assert that Bank funds have been expended in accordance with the intended purposes as specified in the relevant World Bank legal agreements. 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 IPSAS accrual basis; 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. 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 2024. Procurement of goods, works and 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 Act no.9 of 2011 and its Regulations 2013. 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) Accruals basis; and Guidelines issued or that may be issued from time to time by Paymaster General and Accountant General. controller and Auditor General AR/CGILTIP/2023/24 23 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 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. Permanent Secretary Date Controller and Auditor General AR/CG/LTIP/2023/24 24 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 DECLARATION BY HEAD OF ACCOUNTS AND FINANCE UNIT FOR THE YEAR ENDED 30 JUNE 2024 The National Board of Accountants and Auditors (NBAA) according to the power conferred under the Auditors and Accountants (Registration) Act. No. 33 of 1972, as amended by Act No. 2 of 1995, requires financial statements to be accompanied with a declaration issued by the Accountant responsible for the preparation of financial statements of the entity concerned. It is the duty of a Professional Accountant to assist the Management to discharge the responsibility of preparing financial statements of an entity showing true and fair view of the entity position and performance in accordance with applicable IPSAS accrual basis and statutory financial reporting requirements. Full legal responsibility for the preparation of financial statements rests with the Management as under Management Responsibility Statement on an earlier page. I, CPA. Walter Deodatus Lungu, being Chief Accountant of Ministry of Lands, Housing and Human Settlements Development hereby acknowledge my responsibility of ensuring that financial statements for the year ended 30 June 2024 have been prepared in compliance with applicable accounting standards and statutory requirements. I thus confirm that the financial statements give a true and fair view position of Land Tenure Improvement Project as on that date and that they have been prepared based on properly maintained financial records. SIGNED BY: POSITION: Chief Accountant NBAA MEMBERSHIP NO: ACPA 1761 DATE: Gnr AW4 FControlleFrand Au'd'itor General AR/CG/LTIP2023/24 25 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 COMMENTARY ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 1.0 INTRODUCTION Financial statements have been prepared in accordance with the requirements of Section 25(2) of the public Finance Act 2001 (with subsequent amendments) and are presented on the IPSAS Accrual Basis of Accounting. 2.0 BUDGET PERFORMANCE The Project prepared annual action plan of which came up with budgeted figure of TZS 63,002,000,000 for Project activities. The budget was presented before the Parliament for approval. During the year the Project received TZS 56,162,910,831 from World Bank Group compared to financial year 2022/23 where the Project received TZS 18,929,989,470 from World Bank. 3.0 FINANCIAL POSITION A statement of Financial Position is a presentation of Project state of affairs at the closure of the financial year 2023/24 3.1 CURRENT ASSETS Project Current Assets for the financial year 2023/24 amounted to TZS 25,851,542,513 compared to financial year 2022/23 where the project current asset amounted to TZS 12,065,783,685. 3.2 NON-CURRENT ASSETS Project Non-current assets for the financial year 2023/24 amounted to TZS 5,050,240,271 net of depreciation compared to financial year 2022/23 where the project non-current asset amounted at TZS 1,143,299,171 net of depreciation The assets depreciation is in straight line method over the Life of the Project. 3.3 CURRENT LIABILITIES Current liabilities are those liabilities to be settled within entity's normal operating cycle or due within twelve months, or those held for trading or those for which the entity does not have conditional right to defer payment beyond twelve months. Reported amount in financial year 2023/24 is TZS 24,693,766,971 compared to financial year 2022/23 where project current liability amounted at TZS 12,049,546,828. 3.4 NON-CURRENT LIABILITIES Non-current liabilities refer to liabilities which do not meet the definition of current liabilities. The amount includes accumulated surplus/deficit. For the financial year 2023/24 the project had no non-current liabilities as well as for financial year 2022/23. Controller and Auditor General ARCGILTIP/2023/24 26 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 Jun 2024 3.5 NET OF TOTAL ASSET AND TOTAL LIABILITIES Are the total assets minus total liabilities of an entity in other words is a net worth of an entity, in reporting financial year 2023/24 the project has surplus of TZS 6,208,015,813 compared to financial year 2022/23 where the project had a surplus of TZS 1,159,536,028, 4.0 DEFERRED INCOME The deferred income reported in financial year 2023/24 is TZS 24,658,826,421 compared to financial year 2022/23 where the project reported deferred income of TZS 12,029,313,024. The deferred income is due to funds received from World Bank Group but not spent as at 30 June 2024. The activities which represent figure of the deferred grant of TZS 24,658,826,421 were re-budgeted in the financial year 2024/25 5.0 FINANCIAL PERFOMANCE At the end of financial year 2023/24, the project closed with surplus of TZS 5,048,479,785 compared with the project surplus in the financial year 2022/23 amounted at TZS 1,159,536,028, Surplus is the net effect between revenue grant received against expenditure during the year. The results of financial performance are summarized in para 6.0 and para 7.0 below: 6.0 REVENUE Project received funds from the World Bank Group amounting to TZS 56,162,910,831.85 for the financial year 2023/24 compared with TZ5 18,929,989,470 received in the financial year 2022/23. The amount was received in the LTIP Project BOT USD account, then transfer funds to the LTIP Operational account held at CRDB TZS account, refer to funds flow (Chart 1). The revenue grant for the financial year 2023/24 recognized in accordance with IPSAS 23, during the year the project recognized grant revenue of TZS 43,533,397,435 compared to TZS 6,900,676,422 and other income resulted from exchange gain of TZS 1,549,898,544 compared to TZS 81,332,126 recognized in the financial year 2022/23 Controller and Auditor General AR/CGILTIP/2023/24 27 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 June 2024 Funds Flow (Chart 1) World Bank (IDA) Project designated accounts in Commi-ecial Banks banikTZS) 3Works, supplies, project expenses and other expenditures 7.0 EXPENSES In the Financial year 2023/24 the project has an expense amounting to TZS 40,034,816,194 compared to the financial year 2022/23 where the project reported expense of TZS 5,822,472,521. 8.0 AUDITORS Project is audited by the Controller and Auditor General (CAG), as mandated by Article 143 of the Constitution of the United Republic of Tanzania of 1977 and the Public Audit Act, 2008. (Revised 2009). Controller and Auditor General ARICG/LTIP/2023/24 28 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE, 2024 2024 2023 Note TZS TZS (Restated) ASSETS Current Asset Cash and Cash Equivalents 62 21,314,099,299 10,369,552,830 Prepayments 69 4,537,443,214 1,696,230,855 Total Current Asset 25,851,542,513 12,065,783,685 Non-Current Asset Property, Plant and Equipment 77 5,050,240,271 1,143,299,171 Total Non Current Asset 5,050,240,271 1,143,299,171 TOTAL ASSETS 30,901,782,784 13,209,082,856 LIABILITIES Current Liabilities Payables and Accruals 89 3,045,550 3,628,804 Deferred Income 93 24,658,826,421 12,029,313,024 Deposits 94 31,895,000 16,605,000 Total Current Liabilities 24,693,766,971 12,049,546,828 TOTAL LIABILITIES 24,693,766,971 12,049,546,828 Net Assets 6,208,015,813 1,159,536,028 NET ASSETS/EQUITY Capital Contributed by: Taxpayers/Share Capital 0 0 Accumulated Surpluses / Deficits 6,208,015,813 1,159,536,028 TOTAL NET ASSETS/EQUITY 6,208,015,813 1,159,536,028 Permanent Secretary Date Controller and Auditor General ... AR/CG/LTIP/2023/24 29 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 STATEMENT OF FINANCIAL PERFORMANCE AS AT 30 JUNE, 2024 2024 2023 Note TZS TZS (Restated) REVENUE Revenue Revenue Grants 16 43,533,397,435 6,900,676,422 Gain on Foreign Currency TransLation 27 1,549,898,544 81,332,126 Total Revenue 45,083,295,979 6,982,008,548 TOTAL REVENUE 45,083,295,979 6,982,008,548 EXPENSES AND TRANSFERS Expenses Wages, Salaries and Employee Benefits 34 8,434,605,070 116,761,500 Use of Goods and Service 35 25,470,766,869 4,683,701,794 Maintenance Expenses 36 229,489,314 75,417,779 Other Expenses 52 5,207,618,623 599,300,189 Expected Credit Loss 54 73,290,993 61,466,466 Depreciation of Property, Plant and 77 619,045,325 285,824,793 Equipment Total Expenses 40,034,816,194 5,822,472,521 TOTAL EXPENSES AND TRANSFERS 40,034,816,194 5,822,472,521 Surplus / Deficit 5,048,479,785 1,159,536,028 Per anent Secretary Date ControlLer and Auditor General AR/CGILTIP/2023/24 30 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 CASHFLOW STATEMENT AS AT 30 JUNE, 2024 2024 2023 TZS TZS CASH FLOW FROM OPERATING ACTIVITIES RECEIPTS Subvention from other Government entities 12,629,513,397 12,029,313,024 Revenue Grants 43,533,397,435 6,900,676,422 Increase in Deposit 15,290,000 16,605,000 Total Receipts 56,178,200,832 18,946,594,446 PAYMENTS Wages, Salaries and Employee Benefits 8,434,605,070 116,761,500 Use of Goods and Service 25,715,924,435 4,781,498,678 Other Expenses 5,207,618,623 599,300,189 Maintenance Expenses 229,489,314 75,417,779 Total Payments 39,587,637,442 5,572,978,146 NET CASH FLOW FROM OPERATING ACTIVITIES 16,590,563,389 13,373,616,301 CASH FLOW FROM INVESTING ACTIVITIES Investing Activities Advance Payment for Acquisition of Property Plant and (4,191,443,214) (1,594,805,167) Equipment Acquisition of Property, Plant and Equipment (2,931,181,258) (1,429,123,964) Total Investing Activities (7,122,624,472) (3,023,929,131) NET CASH FLOW FROM INVESTING ACTIVITIES (7,122,624,472) (3,023,929,131) Net increase 9,467,938,918 10,349,687,170 Cash Surrendered to Holding Account 0 0 Effect of Foreign Currency Changes 1,549,898,544 81,332,126 Cash and cash equivalent at beginning of period 10,431,019,296 0 Cash and cash equivalent at end of period 21,448,856,758 10,431,019,296 Permanent Secretary Date Controller and Auditor General AR/CG/LTIP/2023/24 31 т � ео о о о о и м о о о о о оо w '�. � о �r т о о (V �' м n и м т ' М и а о и и .ид о го� н н ........�:.:_� . ,... .ч й й .-i м О � IV Гв р, ~ о О О О О о О о о О о о о о � � Й � б д. Ч N о о О о о о О О О О О б О 4 О � r � � � � � � 'i"7 г N О О О о д д G О О О О О О О Q � � Ш � F^ г ш � � а = а � s О и ш .J ��`� о о о о о о о о с о о о о о а � й � � °� °`� и а +� �с~i�- � Q��� F�� о о о о о о о о о а о о о о ��. г J� Q у й N � ��Q� � � м �иша с� ° и.г�� � U� Ш Ш ��� О О О о О о О о о о о о о о а! �г°�а ' � =, а� а � ш й ���т а о.а-�_ а �с�� Q.г ' � � L о О О О О О о О О С D О О О О '�.,,,,.. шиzш '��А а zО�'� �" �0 , � = г = � � г� Ш � � i+ � N О О б О � т д О О О о N рр � � W 7� Р 1� сР О о ',,,.,'. � � °i м n л `P м Q О и � с гл и ш ~ Z _ v�i v о н й � о � а � � .� о N .� .� � т � Q �. м и ш .ч .ч � ................... � � W N И ,,',,. г_ о�,, а ш � � W = ; � о о о о о о о о о о о а о о ''�.... Ш � � и И��^ г +�+ ��', � ,, � � а и м г� С U' W ~ �' V' ,': Z р � ` Q = т а N м +� � = LL1 ^F н пi ги Q% и ° N N N � � ш. ; р ; � ` = � ; ш Q � � о ы а м ° °1 } � � �,: F. w '� _'di с .t. м � '�i � .t. `т � С�:t. Z р^ R _ � � �, '° = д .. w � С п1 й т « а °i т ,. ш 4% L', � = R т у о � ы � '� а � а � ы и С а....�,...: W F.. т tд д а = о т т с� °1 а -° � т � О' Q � с о а°�е д � � � с о z д � _ � � �''�, .i � с v � гн ° ? °' 'v z ,� °с ° "' � О у~j у„ о °� о о � и й о° 9¢ а о � и � Q� , V м м т`-' м n о ао о rn ао с° м s� оо о м о со м с4 rn оо о ао � �� � д� О т д7 ц'] О CU OD О_ С�_ �+•' С� � О С? � Lt'3 aU О ОО 00 а0 t7 ---• 00 б7 дЭ С� N о 1� 00 l!� М м �Qa� �rмс�~ мсиигм�±о� � �� � с�мим мrnсvммт- � р Ф�- � м � с� cfl т� r- о а� с� со L� м LC) �� СО С� LCi N г I� N � � Ф «О � еС � б� � �э � 3 v ' � и г�иас� оглм�с�er оо � р� rn м о м r� м с� т ь� т т ,,, }, � м� о оо о� с� м� а> в� � � рд м� о о" ц� �- ао о� � тr оо о � � �э rn о о c.i �- ао с� �о е�э о с имсчс.� cornc��ctiиc� О ^ � м ц� аа ��л ti в� с� с� � � д, � fП Q N М � 1` С� � С? N CV т с� I N Q�L ~ С4 ц] т �• 1� N N �_ 1� �t � w � т � т� �i ai N�Ci I� � Ф ш "' � � о а � � Q U � J �.-. о О О О О�7" � О �Г} Ф О .� Q � т О О О Q ti О[~вЭ� О Ш U е�г� � О О О о Cf� О м О ° а о°7 и °о °о с Nr'��°о Z � и, � т ~ о О б� м N м � О ш Ш° Z о О о N с1" м а3 О _ � г�Oа о = � ° а'�'° �w _ �аш � � I а��а ш�� оооо ооооооо Q оашш ш о � �� � � �i�°о � о � � � т°аС7 � � -. t7 �аш� � � в а � Ш а д?�о а.ь-� оооооо ооо i°о�°о° �О�� � �у о о о о I` о c�i о =�г= а т о о а�� ш а о uS с� r � с� с� ��ri о с� �л s� L7 � ш Q � � ~ О О д� cYi N м т о г т � г� о о ос��мвэа� Q р Н Q'а� м м а� ср о со м � � а ш о cQ е� с� т т е� � 0° а � � а т � ш N т с � �. г а �7 N � Ш � '� � ш о р � С � ш � г г т ртр � � О � й � � � � сп ёд i г � � � а � q� Q � _т а .� а W g `ш ш� ш � � �! а о� � г�сл с ш Е � е, � z С� �' ; О ш� О й т-� °� о е�в `� �, � о� о с�!З ш� а ш� а� а � `t , р 1- ,� сц _� •� и и у-• ш� ш �! � ш ш и с C7 © �д � � о р � � Е � � �! W ш� �- с� т д Z сЛ ���;°- � � � ы!;; 4J i_ 1� ш 7 Ф т�� N Ф ш�•� а� � � ~� 1а- Ш� Ф U Q Q � й�� t�] р� � с;', й � и �!Л � 5 Н- д� � О� Q F-• Z а � � м �л �'� и ^ v ч- у.+ и и О Ш G! Q`"- О� Т7 и О`F- и Ф�� ;��°_ ;��°Е� �'�on�� �o3L��,.,oe� ��� �'�"'°L �� "'� °ш '`'� � �'�с? �ш� w 3 � с �_t7 �• с Q-� о ал � ,� 3цs L� v�}; С го с.а� .��у ,,, ш� а�-с Q° L� � ^�� ау г.�о ^ а�''о °� с q�� ° т�J с°° а� `°��� й ш� и й 3 � й-а N � С ц � � • � Dл О � � � � �j � Ш � � � t fi� �, � С � W} С �•� 41 �� а;,� fC1 ° � 0� •г'+.�- f0 � L6 "О �4 � � � .Ч � д 7 � � и L �б � �i Ш 9 0 L 'i. •� � � � � П) С ?� S] � ° L .� 0) .С t � j � j t- Г�. t] � � ,л � ?С ч�-. � N 43 � � 4 Q7 Q.� 'О . ] .� +:+ д.� и •и � � � ° ° р � � q� � р � Ш :� t] � ° � 0i tц ,С С ° � +-' С � � -� L П) О � L ° ° � ° ° �-�.°а�эh-���„ош� 3 3+� лс 1--� nE� °�.� а°и�ч U � � а� о о о а � ,� � ао сэ о � г�°.а � F- ш ,о г ш � м --- � � О й т.°t'а -` � �; а •�о � .�с i J J � Q �r q � о� и ш с1 +а °� � � с°т а �'�" � м г�€ fв �^ N Q а �� � ^ м � м м а� � � ? +•+ � 1'N- �"� й � � й� t��� °а й м �р i а��г �,� у nz�i��ш © °' in�i zцjt-г м F�ша �� г. �п с м о и а �Q�� са м � °о � ® �м, `� � шш о и г а _1 S � � С •� 'л ^•1 N ° � � J � � т � _ ( t7 т� а ° и r°�v м � со `t ``�' , ш а ш~ а й � г�а м '`` v i` v �t7�� � � r � � , °° N �а° р�° G] f6 � е. "� I шигш � й Е zo�� й а о � ��оа гO ' , о� U п��а .�.� °о `� о о о � i г о о � i � О N 'io °о О ,..Q� �^ L� Z 'С � о О �' С`! О } � _ � а ni �• 'r'' � т � .� м о ° `''' ' 1- � � ал .р eh Q` c+�v г а 3 '� `° � � � '� ; ~ с � � I� N' � а ;L �. с� г а � � ш с�, � с w � � '� � Q � и � .� ° t а � а=-, '" пъ и i.+-�г. а� ' +� и •д и � j ч- й � ,,., а и t�r � I а О й1 а-� г�б G а � j и '0 ' 0° и а° � С � и,� fl гб � CL � С С гио �� й ь'' S+- 07 ,, L�t у � � ° � ° Q i !1 Ш�7 ° 4% и С Q� N й .� i �ц �иС7 а � 1- ,b�iао ° �� L�� __ _-_ _ и м ; �� с о ш т �•v � rтго ^ .�wо�ш�о о �' � � ^ �+ Е а..� Q) и � �', �w 3 V � G7 �'f. и � � � +' . с.G а ��•Е г�б Q� � й й dl � ���� � у С ��� � S11 С V С � и и� ' � С � G � � l! � q) � � и � t •� г_CQ �� � гVб `� � й �� N,л i� � й� Ut лш с' � L а ч�-� � 1б -,•. � гс гл •°; �� га й й`б � й]r W�� U7 � р� L � �_ `4 N О О� �� д, и � 1- Q. R7 s+ � С] Q р. i.л � О 4г V �у tL �@ аЕ д� д° � � � � О � oq ; ; г ,F, . И М Lf� j Ш ;�- г � ° Ш i... а FQ- ал *� "`- 0 � � ^ о .°°о о°о °D °�° � j а т а оо о" ai �'о� , � о� Р. ао �n ,� оо W V � ,..- �л � ,�•� � '.,,у и Q �.'" � гч ° � а� � ; г � � ►`. �� EL С а й Q� N� I Ш � � Q � � г � � Г � � ��av д, 07 N; �, гШ�"'z �N ��ша �^ м v г� � аз jo �.а�� �а � м � �, �, N �=�о � � ,� � � N � � J о т аг�� � о �.°,� �i � ^ � �а Ш а цJ - 'а и � 1� fL' С7 Q� i� �� �О О� г Q о?�д � ё, � го�� а о ; �тг= G�� +.+ г о°_ N G G г "' �, ° о � � �° °� .^с> о00. ° L� F а1 rз г.i �г; ° , д � rtf � м а• о I ' W � � ° `�° гУi , ..��.. и � � .л г а � ш � Ш г F- �, с L га г�, ', � �1 ы д й ` � �i с °' � .� !, а � о �. ;-о 'L � � � w °�� � � а � � � о Q � а � го :� . � а� ` � � ц � � � � iш L �., сс � •� Q'� i +-� � о � 'аа �°г � �"� UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENPEI? 30 June 22&4 NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED 30 JUNE 2024 Note 1: GENERAL INFORMATION The Government of United Republic of Tanzania (URT) through the Ministry of Lands, Housing and Human Settlements Development has requested the World Bank financial support for implementing Land Tenure Improvement Project (LTIP) in the Country. The project aims at increasing security of land rights and efficiency in land administration in the Country. The project will also promote the iand-based investments and ensures inclusion for social economic development of the country and her citizen. The address of its registered office is PRINCIPAL PLACE OF BUSINESS ACCOUNTING OFFICER AUDITORS Ministry of Lands Housing and Eng. Anthony Sanga Controller and Auditor Human Settlements Ministry of Lands Housing General, Development, and Human Settlements The National Audit Mtumba Government City, Development, Office, P.O. Box 2908, Mtumba Government City, 4 Mahakama Rd, 40477 Dodoma - Tanzania. P.O. Box 2908, P. 0. Box 950, 40477 Dodoma - Tanzania. 41104 Tambukareli, Dodoma - Tanzania. LAWYERS BANKER BANKER Attorney General, Bank of Tanzania, CRDB Ltd, Mtumba Government City, 16 Jakaya Kikwete Rd, Ali Hassan Mwinyi Rd, P. 0. Box 630, P.O Box 2303, P.O Box 230368, Dodoma - Tanzania. 40184 Dodoma - Tanzania. I Dodoma - Tanzania. Controller and Auditor General AR/CGILTIP/2023/24 36 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 1.0 Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below; these policies will be consistently applied to all the years unless otherwise stated. i. Accounting Standards The present financial statements relate to Land Tenure Improvement Project and have been prepared in accordance with International Public Sector Accounting Standards(IPSAS). ii. Basis of Preparation These Financial Statements comply with International Public Sector Accounting Standards (IPSAS) for accrual basis of Accounting, the measurement bases applied in historical cost modal as adopted by the Government, and cash flow statements has been prepared using Direct Method. Moreover, the financial Statements have been prepared in accordance with Public Finance Act of 2001 (revised 2004), and Comply with the requirements of International Public Sector Accounting Standards (IPSAS) and the accounting policies have been applied consistently throughout the period. The financial statements are presented in Tanzanian Shillings (TZS). iii. 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. iv. Revenue from non-exchange transactions Revenue from non-exchange transactions is governed by IPSAS 23 and mainly comprises land rent and grant. Grant is fully recognized as asset and revenue when the Ministry complies with attaching conditions, if any. However, when there is no condition attached or performance obligation the grant is recognized as asset and revenue of the reporting period v. Expenditure Recognition Expenditures for the supply of goods and services are generally recognized after receiving goods and services. In case where commitments have been made or advances are made to Project staff, the expenses are recognized at the time of retirement of the advances. vi. Property, Plant and Equipment (PPE) Property, Plant and Equipment is stated at cost, excluding the costs of day- to-day servicing, less accumulated depreciation and accumulated impairment Controller and Auditor General ARICGILTIP/2023/24 37 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 in value (if any). Such cost includes the cost of any replacement parts in accordance with the related recognition criteria. Historical costs comprise expenditure initially incurred to bring the asset to its location and condition ready for its intended use. Subsequent expenditures are capitalized only when they increase the current economic benefits and meet the recognition criteria. Expenditure incurred to replace a component of item of property 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 performances and expenses as they are incurred. vii. Depreciation The LTIP has adopted straight line method for depreciation of its Assets which is allocated systematically over the useful Life of the Project assets as issued in the operational manual of the Project. The depreciable amount of an asset shall be allocated on a systematic basis over its estimated remaining useful life of the project. The useful life of the assets is estimated to be the remaining life span of the Project. viii. Cash and Cash Equivalents IPSAS 2 defines Cash and Cash Equivalents as short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to a significant risk of changes in value. The Cash and Cash equivalent refers to the line item in the statement of financial position comprise cash at banks and in hand. For the purpose of the statements of cash flow, cash and cash equivalents consist of cash and cash equivalents as defined above. ix. Employment benefits Employee benefits include salaries, pensions and other related - employment costs. Employee benefits are recognized on accrual basis. The LTIP employed 5 consultants as of 30th June 2024, which are being paid consultant fee deducted with Withholding tax as per tax law in Tanzania, and therefore they are not entitled with pension arrangements. x. Property, Plant and Equipment Tangible and intangible asset shall be recognized and depreciated or amortized as per GoT laws and regulations and circulars. In case Project life is less than the life that the tangible or intangible asset would take to be fully depreciated the useful life of the asset shall be amended to reflect the Project life. Controller and Auditor General ARICG/LTIP/2023/24 38 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR-ENDIED-30 June04 xi. Events after reporting date There were no material events, adjusting or non-adjusting, which had occurred between the reporting date and the date when the financial statements are authorized for issue. xii. Functional and Presentation Currency Financial Statement are measured using the currency of the primary economic environment in which the Project operates. ("Functional currency"). Financial Statement are presented in Tanzanian Shillings (TZS) xiii. Foreign Currency Translation During the year Project received disbursements in USD, and then transferred to the project operational bank account (TZS) according to the needs of the project, therefore at the end of reporting period the project recognized the transaction of exchange gain/loss due to exchange rate differences. xiv. Intangibles Assets IPSAS 31 defines intangible assets as non-monetary assets which are without physical substance and identifiable (either being separable or arising from contractual or other legal rights). Intangible assets meeting the relevant recognition criteria are initially measured at cost, subsequently measured at cost or using the revaluation model, and amortised on a systematic basis over their useful lives (unless the asset has an indefinite useful life, in which case it is not amortised). During the year the project had no intangible assets to report. xv. 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. Persons who have influence in decision are political leaders (minister and deputy minister) and members of management (permanent secretary, deputy permanent secretary, and heads of departments/units). No related party amount in relation to LTIP paid to these officials. xvi. Inventories Inventories are measured at the lower of cost and current replacement cost. Costs incurred in bringing each product to its present location and condition, are accounted for on a first in first out basis. xvii. Payables Project recognizes payables when goods or services are delivered on credit and its settlement will be done when payment are made. Controller and Auditor General AR/CG/LTIP/20231/24 39 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 xviii. Receivables Receivables are realized as part of the normal Project operating cycle, even when they are expected to be realized within present obligations of the entity. Project receivables are recognized as expenses on the time when they are retired as the fund were issued for otherwise the fund is refunded back to the Entity. xix. Significant Accounting Judgments, Estimates and Assumptions The preparation of the Government's 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. Judgments In the process of applying the Government's accounting policies, management has made the following judgment, apart from those involving estimations, which has the most significant effect on the amounts recognized in the financial statements. Estimates and Assumptions The preparation of financial statements in conformity with IPSAS requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgment in the process of applying the Ministry's accounting policies. The areas involving a higher degree of judgment or complexity, or where assumptions and estimates are significant to the financial statements are disclosed in accounting policy. xx. Going Concern Project life time is 5 years, the closure date is 31' January 2027, and therefore the project will operate in the next 12 months. xxi. Standard Issued but not yet effective The following new standards were issued by the International Public Sector Accounting Board (IPSASB) but not yet effective up to the date of issuance of the financial statements. The ministry will adopt them for the purpose of the preparation of the future financial statements where applicable, even though the ministry does not plan for an early adoption. Those standards are as follows; IPSAS 43, Leases IPSAS 43: Leases was issued by the International Public Sector Accounting Standards Board (IPSASB) in January 2022. The objective of the standard is to Controller and Auditor General AR/CGILTIP/2023/24 40 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 set out the principles for the recognition, measurement, preparation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity. This is also to ensure that the entity shalt consider the terms and conditions of contracts and all relevant facts and circumstances when applying this standard. An entity shalt apply this standard consistently to contracts with similar characteristics and in similar circumstances. This standard is effective for financial statements beginning on or after 1 January 2025. IPSAS 44, Non-Current Assets held for Sale and Discontinued Operations IPSAS 44, 'Non-Current Assets held for Sale and Discontinued Operations' was issued by the International Public Sector Accounting Standards Board (IPSASB) in May 2022. The objective of the standard is to specify the accounting for Assets held for sale, and the presentation and disclosure of discontinued operations. In particular this standard requires; i. Assets that meet the criteria to be classified as held for sale to be measured at the lower of carrying amount and fair value less costs to sell, and depreciation on such assets to cease; and ii. Assets that meet the criteria to be classified as held for sale to be presented separately in the statement of financial position and the results of discontinued operations to be presented separately in the statement of financial performance. This standard is effective for financial statements beginning on or after 1 January 2025 and earlier application is permitted xxii. Estimated Useful Life (EUL) Tangible and intangible assets shall be recognized and depreciated or amortized as per the GoT Laws regulations and Circulars. In case the Project Life is less than the life that the tangible or intangible asset would take to be fully depreciated, the useful Lives of the assets shall be amended to reflect the Project life. At the end of the Project the assets shall be disposed of in accordance with the GOT regulations and procedures, the following are the estimated useful life of the project assets: Asset Category Estimated Useful life Motor vehicles, Monetary 10 Telecommunications infrastructure, 10 networks and equipment Furniture and fixture 10 Office Equipment 10 Computer (Desktop and laptops) 8 controller and Auditor General AR/CGILTIP/2023/24 41 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June9202_4 The Project has changed the useful life of the PPE to comply with the Public Finance (management of public property) regulations, of 2024 xxiii. Change in accounting Policy The introduction of IPSAS 41 substantially modifies IPSAS 29 by classifying financial assets and liabilities through a principles-based classification model, a forward-Looking expected credit loss model. An entity shall recognize a financial asset or a financial liability in its statement of financial position when and only when the entity becomes party to the contractual provisions of the instrument On initial recognition, a financial asset is classified as measured at amortized cost. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at fair value through surplus or deficit, if it held within a management model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding An asset are not reclassified subsequent to their initial unless the Government changes its management model for managing financial asset, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change ihl the business model. An entity shall derecognize a financial asset when and only when a) The contractual rights to the cash flows from the financial asset expire or are waived, or b) It transfers the financial asset as set out and the transfer qualifies for derecognition in accordance with IPSAS 41. The impact of Change in accounting Policy The impact of introducing IPSAS 41 is the emergence of Expected credit loss /gain in the Financial Statements by having different Cash and Cash Equivalent figures reported in the Statement of Financial Position and the Statement of Cash flows with Exposure at Default (EAD) (Balance) at the end of the financial year. The Project operates with the following Banks with global ratings and Probability of Default (PD) as provided in the table below. Controller and Auditor General AR/CGILTIP/2023/24 42 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 As at 30 June 2024 LOS Bank Expected Rating Probability balance as at Credt Loss Cash Carrying Agency Score Of eault Lesu reporting (ECL) Amount date (PD)x(LGD)x(A) BANK NAME (PD) (LGD) T2 12$ T2$ USD BOT Cdton Account - - - - 13,620,768,290 - 13,620768290 DevekpnentEenditure Cash AccountCRDB - - 216% 0.998795 6,246,294,923 134,757,458.32 6,111,537,465 Unapped Cash Account - - - 33,595,000 - 33595,000 Tol 19,900.658.214 134,757,458.32 19,765 900,755.51 As at 30 June 2023 Loss Bank Expected Rating Probability Given balance as at Credit Loss Cash Carrying Score Agency of Defaul Default reporting (ECL)= Amount BANK NME (1-R) date (PD)x(LGD)x(A) (PDI (LGD) TZS TZS TaS USD 8OT Cohdon Account - - - - 7,561,244,593 - 7,561,244,593 DeWlopment Exendihre Cash Account-CRDB - - 2.16% 0.997371 2,853,169,703 61,466,465.58 2,791,703,237 I ed Cash Acc t- - - - 16,605,000 - 16,605,000 ToW 10,431,019,296 61,466,466 10,369,552,830 xxiv. Correction of errors and restatement of figures in the financial year 2023/24, the Project had corrected errors to restate the opening balances for comparative figures reported as ending balances. The items involved and relevant notes have been summarized under the table below: - Amot-aasnsfo Restated Prior year's figure Components 2022/2 Audited 2022/23 Adjustments 2022/23 Adjustments A B C =(A - B) STATEMENT OF FINANCIAL POSITION Provision of ECL Cash and Cash 10,369,552,830 10,431,019,296 61,466,466 being Equivalent Implementation of IPSAs 41 Provision of ECL Accumutateben Scupu?Deft 1,282,468,960 1,221,002,494 61,466,466 being Surplus/ Deficit Implementation of IPSAs 41 STATEMENT OF FINANCIAL PERFORMANCE Provision of ECL Expected Credit being Loss Implementation of IPSAs 41 Controller and Auditor General AR/CGILTIP/223/24 43 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Government Restatement of Grant revenue grants 6,900,676,422 6,900,676,422 charged in the Doment 0Subvention from other Government entities Restated of Subvention from revenue grants other 6,900,676,422 6,900,676,422 from Subvention Government 0 from other entities Government entities to the government Grant xxv. Risk Management The Project is exposed to financial and operational risks and strives to ensure that appropriate strategies within any mandate provided by Legislation are in place to mitigate their adverse effects. All types of risk associated with the project activities are managed by the management. Foreign Exchange Risk Foreign exchange risk refers to the risk of loss to the adverse movement in foreign exchange rates. The instruments currently being used to minimize the Government's exposure to foreign exchange risk include currency. Liquidity Risk Liquidity risk refers to the unfavorable events due to Lack of sufficient funds to meet obligation when they fal due. The management mitigates this risk by performing those activities whose funds have already been allocated. Credit Risk Credit risk refers to the risk of unfavorable events due to the non-performance of counterparties to discharge an obligation. This type of risk is managed by making sure every party discharges its obligation according to the contractual requirements. Contractual Obligation Risk This kind of risk occurs when the contractor fails to deliver goods or service on time at the agreed price. The management strives to ensure that every party to the contract understands and adheres to the terms and conditions. Environment Risk The Project is subjected to this type of risk in the issues relating to energy facility. Risk is managed by having a standby generator, of purchase firefighting equipment, setting up fire alarms system, installation smoke detectors and training to all staff on safety measures and protection. Controller and Auditor General AR/CGILTIP/2023/24 44 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Legal/Statutory Risk This is the risk associated with failure to comply with the legal requirements. The management ensures that compliance with Legal requirements is of paramount. Also, the advice of the Attorney General is sought on all critical and contentious Legal matters which may have ramifications to the welfare of the project. Information Risk Information risk involved with the risk of managing information, data protection and freedom to access information. The use of password in the system and confidential registry minimizes the risk. The ministry has enhanced the security systems by prohibiting unauthorized access to the Registries. xxvi. Exchange rate Alt monetary amounts in the financial statements are expressed in Tanzanian Shilling. The Tanzanian Shilling closing rate (the Bank of Tanzania middle rate) for major currencies was as follows Currency 30 June 2024 United States Dollar (US$) 2,640 xxvii. Original and final approved budget and comparison of actual and budget amount The approved budget is prepared on the cash basis for the period from 1st July 2023 to 30 June 2024. Original budget for development expenditure approved by the Parliament was TZS. 63,002,000,000. xxviii. Statement of Commitments There were no commitments for the year ended 30 June 2024, xxix. Statement of Guarantees There was no guarantee for the year ended 30 June 2024 Note 3 Funds Received During the financial year 2023/24, the Project received funds from World Bank Group as shown in the following table; Reference number 2024 TZS OT48LTOIDR2500004 18,084,692,629.84 OT48LTO1DR2500003 38,078,218,202.01 Total 56,162,910,831.85 Controller and Auditor General AR/CG/LTIP/2023/24 45 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Note 4. Contingent Liabilities During the year LTIP had no pending cases that may give rise to any significant loss and therefore, no provisions have been made in these financial statements for the financial year 2023/24 Note 5. Events after reporting date There were no material events, adjusting or non-adjusting, which had occurred between the reporting date and the date when the Financial Statements are authorized for issue Note 6 - Authorization Date The present financial statements were submitted to the controller and auditor general (CAG) on 30 August 2024. Controller and Auditor General ARICGILTIP/2023/24 46 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 NOTES TO THE FINANCIAL STATEMENT AS AT 30 JUNE, 2024 2024 2023 TZS TZS 16 - Revenue Grants Government Grant Development Foreign 43,533,397,435 6,900,676,422 43,533,397,435 6,900,676,422 27 - Gain on Foreign Currency Translation Foreign Exchange differences (Gain) - Monetary 1,549,898,544 81,332,126 1,549,898,544 81,332,126 34 - Wages, Salaries and Employee Benefits Casual Labour Discretionary 8,434,605,070 116,761,500 8,434,605,070 116,761,500 35 - Use of Goods and Service Per Diem - Foreign 61,570,000 0 Advertising and Publication - Communication E 346,474,936 2,832,000 Information Air Travel Tickets Training - Foreign 16,000,000 536,000 Air Travel Tickets Travel - In - Country 5,323,000 0 Air Travel Tickets Travel Out Of Country 13,200,270 0 Artistic Materials 600,100,000 0 Conference Facilities 245,110,479 69,110,229 Diesel 292,231,059 223,164,312 Electricity - Utilities Supplies and Services 2,687,008 1,670,655 Food and Refreshments 1,024,464,079 192,355,000 Ground Transport (Bus, Train, Water) 46,641,482 3,299,000 Ground travel (bus, railway taxi, etc)Travel - In - 62,815,920 21,380,000 Country Internet and Email connections 16,952,734 1,500,000 Office Consumables (papers, pencils, pens and 1,654,922,039 788,649,000 stationaries) Outsourcing Costs (includes cleaning and security 5,134,108 0 services) Per Diem - Domestic 18,222,229,531 3,233,251,500 Per Diem - Foreign 1,004,335,400 0 Printing and Photocopying Costs 1,096,518,000 114,893,598 Programs Transmission Fees 1,500,000 0 Rent - Office Accommodation 44,981,824 0 Technical Materials 516,480,000 30,460,500 Controller and Auditor General ARICG/LTIP/2023/24 47 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR3 ENDED2 30 June 2024 Training Allowances 80,835,000 0 Training Materials 4,400,000 0 Tuition Fees Training - Domestic 105,860,000 600,000 25,470,766,869 4,683,701,794 36 - Maintenance Expenses Motor Vehicles and Water Craft 215,942,064 1,500,000 Outsource maintenance contract services - Buildings 0 73,917,779 Tyres and Batteries 13,547,250 0 229,489,314 75,417,779 52 - Other Expenses consultancy fees 1,836,512,701 228,017,189 Surveys 3,371,105,922 371,283,000 5,207,618,623 599,300,189 54 - Expected Credit Loss Expected Credit Loss 73,290,993 61,466,466 73,290,993 61,466,466 62 - Cash and Cash Equivalents Development Expenditure Cash Account 6,246,294,923 2,853,169,703 Provision for ECL (Cash) (134,757,459) (61,466,466) Unapplied Cash Account 31,895,000 16,605,000 USD BOT Collection Account 15,170,666,834 7,561,244,593 21,314,099,299 10,369,552,830 69 - Prepayments Prepayment Consumables 346,000,000 101,425,688 Prepayments Assets - Monetary 4,191,443,214 1,594,805,167 4,537,443,214 1,696,230,855 94 - Deposits Unapplied Deposit Account Addition 31,895,000 16,605,000 31,895,000 16,605,000 Payables and Accruals Descriptions Opening Paid Rejected Addition Balance Advance for Work in Progress - - - Imprest payable - - - - Staff Claims Supplies of goods and services - - - - Withholding Tax payables 3,628,804.00 - - - 583,254 3,045,550.00 Controller and Auditor General AR/CGILTIP/2023/24 48 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Descriptions Opening Paid Rejected Addition Balance Withholding tax - -- TOTAL 3,628,804.00 - - 583,254.00 3,045,550.00 Controller and Auditor General ARICG/LTIP/2023/24 49 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 SUPPLIES AND CONSUMABLES Details TZS TZS 2024 2023 Supplies and Consumables (Presented in 25,470,766,869.00 4,683,701,794.00 Statement of Financial Performance) Add: Closing inventories Opening payables relating to supplies and consumables Closing prepayments relating to supplies 346,000,000.00 101,425,688.00 and consumables Less: Opening inventories Closing payables relating to supplies and - 3,628,804.00 consumables Opening prepayments relating to supplies 101,425,688.00 and consumables Recomputed amount paid for supplies 25,715,341,181.00 4,781,498,678.00 and consumables Presented amount of supplies and 25,715,924,435.00 4,781,498,678.00 consumables in Cash flow statement Unreconciled amount of supplies and consumables - 583,254.00 WAGES AND SALARIES Details TZS TZS 2024 2023 Wages and salaries in Financial 8,434,605,070.00 116,761,500.00 Performance Add: Opening payables relating to staff Claims Less: Closing payables relating to staff Claims Recomputed amount paid for Wages and 8,434,605,070.00 116,761,500.00 salaries Wages and salaries actual payments 8,434,605,070.00 116,761,500.00 presented in cash flow statements Controller and Auditor General ARICGILTIP/2023/24 50 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Unreconciled amount of Wages and salaries MAINTANCE EXPENSES Details TZS TZS 2024 2023 Maintenance Expenses (Presented in Statement of Financial Performance) 229,489,314.00 75,417,779.00 Add: Opening payables relating to staff Claims Opening payables relating to maintenance expenses Closing prepayments relating to maintenance expenses Less: Opening inventories maintenance expenses Closing payabLes relating to maintenance expenses - Opening prepayments relating to maintenance expenses Recomputed amount paid for Maintenance 229,489,314.00 75,417,779.00 Maintenance payments presented in cash flow statements 229,489,314.00 75,417,779.00 Unreconciled amount of Maintenance Expenses OTHER EXPENSES Details TZS TZS 2024 2023 Other Expenses (Presented in Statement of 5,207,618,623.00 599,300,189.00 Financial Performance) Add: Closing inventories other expenses - Opening payables relating to other expenses Closing prepayments relating to Other expenses Less: Opening inventories other expenses Closing payables relating to other expenses Opening prepayments relating to other expenses Recomputed amount paid for Other 5,207,618,623.00 599,300,189.00 Expenses Controller and Auditor General AR/CGILTIP/2023/24 51 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2024 Other Expenses presented in cash flow 5,207,618,623.00 599,300,189.00 statements Unreconciled amount of Other Expenses - " 93 - Deferred hcome Descriptions Opening Fund Received Aoised Transfer Transfer Balance toPMG To Holding Deveopment Deferred 12,029,313,024 56,162,910,832 43,533,397,435 0 0 24,658,826421 Income toAL 0 56,162,910,832 43,533,397,435 e 0a 0 24,658,826,21 Controller and Auditor General ___ ___AR/CG/LTIP/2023/24 52 м '� и v�a � м й r`�-- i � с� c�t ср . сц ао � сЧ с � � ti "� сC°� � � .�' � смч ш � ,� � ' � V 7 с�+ ' ца й � CD N_ L�Г� � � т � N 4L] ц? N ��. G7 Cf} О � а�о � с:, с�о^ ° а�о м �s�'а � ьс�га t[а v � � N с� N Gга й � о О Q . С� ._.. C.j ` ,,.,. 0 О С � .. .О. ..._ _.. . .С7. . О О О � � I-�- ~ и � �� о о о о о Ш � с ш °�,, � � � Q ��, � о о о о о а м а> � � , о и � ."' с I � J Rв гз, • Ш Q U ` a�s � с ш t� � _ _ _ р Z т °- � а � '� а � г � о а-�+а w _ г м�у �� � � СО CU 1� Ct7 М Q i � Q�Wp С�.? п л G У � � с�°.г с°.� а г � � �_ _ ' �маШ с°v � а°о о о � � 1 м U - а�г� °_ � � � � � N м г Ш г ° м ° м � с�о N а О ш а г �'' а �>; � � � � � � � ��°о ° � � � � � � � т �° � � � � � � Q �: pzg= о м м м с�'ч ti � �� д а i� м � г� сс� сл �еа �С�Ш4`� � о °° ш о в`�'э а' � � � � р � р р о 1JJU}ZШ Q,.. 4 о о о о f Ш и гОма � й � й Z� й� ° о о о о о ,� � � � � � г J � т..-, ,� о о о о о � � Н с � _ __ р } ��-ц о о о о о � т а г � г' F�. � � ° � И ш б �+ � ' „ сч .� г д- � � �„ � д° едi у� '-�р = � N о л°°а � р сд м �са F�- � ш о�о uмr�s с� � � е�С i � �i � аа °о rn аsло � � ' ва о ti � -� �,..., ао � iл ц7 s'`f = i ш� с�а м ti м ° � �s О 1 ._ � _ _ N '� ! а�в Q � � o�rso � 'cv � =а; � Г ее с � о � �' �'�io г�б � � � � � � � '� � `� � �- •� � ~- '� _ `�-- 'в � гл � � �_ `б С Q1 о,� Q й� ы' � с°� и� f" Е й`°k' � О д� й п� и�� о `т �°-> 4°, с`с о� .ь _ � .... � � т�и а � � � - р" С � ...... � . �. � Г� U V �� U а а сл � � 1� `и � . ш � l,j �,..... �- � и м о сч со г- �^л г' r°� � с.�� � � ~ .'�л а' � c�v �s�'а с� о ао о� ал с�в .� � � � � � � U 7 � м N � °о м � i в`�'�s �_° � до о r �_ `� ^ c�r Q N � � � ао '�"} � i г°� м � ar � е.в � � о � о � о � � � F � i G? О О О О ы ш t- й �" � о о о о о и ш ш � � � а ~ в � о г� .� �, т о о с� о о -� а а, � _� ш � ш U е�`� т, � � ° а с� -� а � с г���'у д о rn °о с"°л � � '+--• � оо о �- ~ шш° _css Q � "7 � � � с`�о � � сл � г ш р а �+ _� � � си аэ •cr г- оса �, � r�.. 4 it! .� � а�л� ц�r м � c��i � о�а ��: Н I� С� �3 �•. � <- CV м; Q й Z а s��l Q О с� С7 о j �� ELa�� ; `�_ I �' � o��w � ��°о ° �J т©а�` � а о м � С7 ° Z � � � rn °о � � vy �'•1 �.а-� � � � � � � а ш ш� � � � .л �., ,�� �_ м � м ср r- �(7� °�°° м � �i � ° с.°'+s шигш � � � � v �°�� -- 4' о � о о о I I ° = г � � I 0 � U � � I � � � и о � о о с,а I �7 о �, _ � о w �_� } т � � rл о с7 о о а � � �р"' � ш � � о � о � о о о I � а � �° � � 1 г � � � � � х с �' rnrn о° �' � °�°' 1- о sв �у ы ао � цi ц� т а � a�s $ о с� rr`- м� � t т � т_ Q � `'�Q � о~о ° �_ ; � N -� � � � N � i� � L О � � ш � � N $ ,л с `са сът �'' р +-' � С_ав7 ° �' • ° `о � N С'�С .. С�/? "� .. � ....�.... � с� � � -� : Е Q- vi � � � � � � � i � � С!7 � �- � � �' � � �- � ш р а� о а� иэ � � � � qr , � ° �= � � � и °� � р': w � -v ш � г� дi � й �_ � 1 а � tЛ � S� � � � О О; о„ � S' г`� U� `� �- c,7I UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 NOTES - CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE, 2024 2024 2023 TZS TZS 103 - Advance Payment for Acquisition of Property Plant and Equipment Prepayments Assets - Monetary (2,596,638,047) (1,594,805,167) Payment (2,596,638,047) (1,594,805,167) Payment (2,596,638,047) (1,594,805,167) 105 - Receipts from Sales of Property, Plant and Equipment 0 0 Payment 0 0 Payment 0 0 15 - Tax Revenue 0 0 Revenue 0 0 Revenue 0 0 16 - Revenue Grants Government Grant Development 43,533,397,435 0 Foreign Revenue 43,533,397,435 0 Revenue 43,533,397,435 0 32 - Subvention from other Government entities 0 0 Subvention Development Foreign 0 6,900,676,422 Revenue 0 6,900,676,422 Add/Less (Change in Working Capital) Deferred Subvention Capital 12,629,513,397 12,029,313,024 12,629,513,397 12,029,313,024 Receipt 12,629,513,397 18,929,989,447 34 - Wages, Salaries and Employee Benefits 0 0 Casual Labour Discretionary 8,434,605,070 116,761,500 Expenses 8,434,605,070 116,761,500 55 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Expenses 8,434,605,070 116,761,500 35 - Use of Goods and Service 0 0 Per Diem - Foreign 61,570,000 0 Advertising and Publication - 346,474,936 2,832,000 Communication 8t Information Air Travel Tickets Training - 16,000,000 536,000 Foreign Air Travel Tickets Travel - In - 5,323,000 0 Country Air Travel Tickets Travel Out Of 13,200,270 0 Country Artistic Materials 600,100,000 0 Conference Facilities 245,110,479 69,110,229 Diesel 292,231,059 223,164,312 Electricity - Utilities Supplies and 2,687,008 1,670,655 Services Food and Refreshments 1,024,464,079 192,355,000 Ground Transport (Bus, Train, 46,641,482 3,299,000 Water) Ground travel (bus, railway taxi, 62,815,920 21,380,000 etc)Travel - In - Country Internet and Email connections 16,952,734 1,500,000 Office Consumables (papers, 1,654,922,039 788,649,000 pencils, pens and stationaries) Outsourcing Costs (includes 5,134,108 0 cleaning and security services) Per Diem - Domestic 18,222,229,531 3,233,251,500 Per Diem - Foreign 1,004,335,400 0 Printing and Photocopying Costs 1,096,518,000 114,893,598 Programs Transmission Fees 1,500,000 0 Rent - Office Accommodation 44,981,824 0 Technical Materials 516,480,000 30,460,500 Training Allowances 80,835,000 0 Training Materials 4,400,000 0 Tuition Fees Training - Domestic 105,860,000 600,000 Expenses 25,470,766,869 4,683,701,794 Add/Less (Change in Working Capital) Prepayment Consumables 244,574,312 101,425,688 Withholding Tax Payable Addition 583,254 (3,628,804) 245,157,566 97,796,884 Payment 25,715,924,436 4,781,498,678 36 - Maintenance Expenses 0 0 Motor Vehicles and Water Craft 215,942,064 1,500,000 56 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Outsource maintenance contract 0 73,917,779 services - Buildings Tyres and Batteries 13,547,250 0 Expenses 229,489,314 75,417,779 Expenses 229,489,314 75,417,779 52 - Other Expenses 0 0 consultancy fees 1,836,512,701 228,017,189 Surveys 3,371,105,922 371,283,000 Expenses 5,207,618,623 599,300,189 Expenses 5,207,618,623 599,300,189 61 - Deposit 0 0 Unapplied Deposit Account (15,290,000) (16,605,000) Addition Revenue (15,290,000) (16,605,000) Revenue (15,290,000) (16,605,000) 74 - Effect of Foreign Currency Changes Foreign Exchange differences 1,549,898,544 81,332,126 (Gain) - Monetary Payment 1,549,898,544 81,332,126 Payment 1,549,898,544 81,332,126 77 - Acquisition of Property, Plant and Equipment 0 0 Beds, desks, shelves, tables and 0 (176,318,991) Chairs Monetary Computers and Photocopiers (86,597,448) (854,774,000) Monetary Motor vehicles, Monetary (2,616,294,725) 0 Printers and Scanners Monetary 0 (187,375,190) Telecommunications (1,823,094,252) (210,655,783) infrastructure, networks and equipment monetary Payment (4,525,986,425) (1,429,123,964) Payment (4,525,986,425) (1,429,123,964) 92 - Proceed from sale of PPE 0 0 57 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Payment 0 0 Payment 0 0 RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS/ (DEFICIT) FOR THE PERIOD ENDED 30 JUNE 2024 2024 2023 TZS TZS Surplus/ Deficit for the Period 5,048,479,785 1,221,002,494 Add/ (Less) Non-Cash Item Depreciation of Property, Plant and 619,045,325 285,824,793 Equipment Expected Credit Loss Impairment 73,290,993 61,466,466 Gain on Foreign Currency Translation (1,549,898,544) (81,332,126) Add/ (Less) Change in Working Capital Deferred Income 12,629,513,397 12,029,313,024 Other Receipt 15,290,000 16,605,000 Payables and Accruals (583,254) 3,628,804 Prepayments (244,574,312) (101,425,688) Net Cash Flow from Operating Activities 16,590,563,389 13,373,616,301 58 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 STANDARD TRIAL BALANCE REPORT FOR THE PERIOD ENDED 30 JUNE, 2024 CODE DESCRIPTION TZS TzS 13320102 Government Grant Development 0.00 43,533,397,435.29 Foreign 14256101 Foreign Exchange differences 0.00 1,549,898,543.95 (Gain) - Monetary 21114105 Casual Labour Discretionary 8,434,605,070.00 0.00 22001101 Office Consumables (papers, 1,654,922,039.22 0.00 pencils, pens and stationaries) 22001109 Printing and Photocopying Costs 1,096,518,000.00 0.00- 22001112 Outsourcing Costs (includes 5,134,108.00 .0 cleaning and security services) 22002101 Electricity - Utilities Supplies and 2,687,008.34 0.00 Services 22003102 Diesel 292,231,058.98 22007103 Rent -Office Accommodation 44,981,824.00 0.00 22007109 Conference Facilities 245,110,479.09 0.00 22008102 Tuition Fees Training - Domestic 105,860,000.00 0.00 22008107 Training Allowances 80,835,000.00 0.00 22008108 Training Materials 4,400,000.00 22008110 Ground Transport (Bus, Train, 46,641,482.00 0.00 Water) 22009101 Air Travel Tickets Training - 16,000,000.00 0.00 Foreign 22009108 Per Diem - Foreign 61,570,000.00 0.00 22010101 Air Travel Tickets Travel - In - 5,323,000.00 0.00 Country 2210102 -Ground travel (bus, railway taxi, 62,815,920.00 0.00 etc) Travel - In - Country 22010105 T Per Diem -Domestic 18,222,229,530.78 0. 00 22011101 Air Travel Tickets Travel Out Of 13,200,270.00 0.00 Country 22011105 Per Diem - Foreign | 1,004,335,400.00 0. 00 22012101 Internet and Email connections 16,952,733.55 0.00 22012104 Programs Transmission Fees 1,500,000.00 0.00 22012105 Advertising and Publication - 346,474,936.00 0.00 Communication & Information 22013106 Technical Materials 516,480,000.00 0.00 22013107 Artistic Materials 600,100,000.00 0.00 22014104 Food and Refreshments 1,024,464,079.30 0.00 22021101 Motor Vehicles and Water Craft 215,942,064.00 0.00 22021102 Tyres and Batteries 13,547,250.00 0.00 22033701 Expected Credit Loss I73,290,992.74 0.00 23140101 Motor vehicles, Depreciation 261,629,472.51 0.00 23150101 Telecommunications infrastructure, 203,375,003.45 0.00 networks and equipment Depreciation 59 UNITED REPUBLIC OF TANZANIA MINISTRY OF LANDS, HOUSING AND HUMAN SETTLEMENTS DEVELOPMENT LAND TENURE IMPROVEMENT PROJECT THE REPORT BY THOSE CHARGED WITH GOVERNANCE AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 STANDARD TRIAL BALANCE REPORT FOR THE PERIOD ENDED 30 JUNE, 2024 CODE DESCRIPTION TZS TZS 23150108 Computers and Photocopiers 117,671,431.00 0.00 Depreciation 23150109 Printers and Scanners Depreciation 18,737,519.00 0.00 23160241 Beds, desks, shelves, tables and 17,631,899.13 0.00 Chairs Depreciation 28520204 consultancy fees 1,836,512,701.18 0.00 28520208 Surveys 3,371,105,922.13 0.00 31121101 Motor vehicles, Monetary 2,616,294,725.07 0.00 31122101 Telecommunications infrastructure, 2,033,750,034.52 0.00 networks and equipment monetary 31122108 Computers and Photocopiers 941,371,448.00 0.00 Monetary 31122109 Printers and Scanners Monetary 187,375,190.00 0.00 31123141 Beds, desks, shelves, tables and 176,318,991.32 0.00 Chairs Monetary 32171201 Prepayment Consumables 346,000,000.00 0.00 32171202 Prepayrments Assets - Monetary 4,191,443,213.72 0.00 33181108 Unapplied Deposit Account Addition 0.00 31,895,000.00 33182154 Withholding Tax Payable Addition 0.00 3,045,549.85 33191111 Deferred Subvention Capital 0.00 24,658,826,420.85 61465101 Motor vehicles, Accumulated 0.00 261,629,472.51 Depreciation 61466101 Telecommunications infrastructure, 0.00 245,506,160.05 networks and equipment Accumulated Depreciation 61466108 Computers and Photocopiers 0.00 288,626,231.00 Accumulated Depreciation 61466109 Printers and Scanners Accumulated 0.00 56,212,557.00 Depreciation 61466241 Beds, desks, shelves, tables and 0.00 52,895,697.39 Chairs Accumulated Depreciation 62123114 Development Expenditure Cash 6,246,294,923.38 0.00 Account 62123124 Unapplied Cash Account 31,895,000.00 0.00 62123143 USD BOT Collection Account 15,170,666,834.40 0.00 62123231 Provision for ECL (Cash) 0.00 134,757,458.74 63293101 Accumulated Surplus/Deficit 0.00 1,159,536,028.18 Opening TOTAL 71,976,226,554.81 71,976,226,554.81 Permanent Secretary Date 60