"j THE UNITED REPUBLIC OF TANZANIA $ NATIONAL AUDIT OFFICE ISO 9001:2015 Certified SOKOINE UNIVERSITY OF AGRICULTURE (SUA) THE SOUTHERN AFRICAN CENTRE FOR INFECTIOUS DISEASES SURVEILLANCE - AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL AND COMPLIANCE AUDIT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 PROJECT ID: P151847 Controller and Auditor General, National Audit Office, Ukaguzi House, Mahakama Road, P.O. Box 950, 41101 Tambukareli, Dodoma, Tanzania. Tel: 255 (026) 2161200-9, E-mail: ocaq@nao.go.tz Website: www.nao,go.tz December 2024 AR/PA/SUA/SACIDS/2023/24 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. To be a credible and modern Supreme Audit Institution with high-quality audit services for enhancing public confidence. To provide high-quality audit services through the modernisation of functions that enhance accountability and transparency In the management of public resources. Modernising External Audit for Stronger Public confidence We are an impartial public /We deliver high-quality audit services based an institution, independently appropriate professional offering high-quality audit knowledge, skills, and best services to our clients in an practices unbiased manner. CORE We value and work We observe and maintain high together with internal VALUES ethical standards and rules of and external law in the delivery of audit stakoholders. services, We focus on achievemienhs of reliable. We encourage, create, timely, accurate, useful, and innovate value- and clear performance adding Ideas for the targets, improvement of audit services. © This audit report is intended to be used by Sokoine University of Agriculture (SUA) 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/PAISUA/SACIDS/2023/24 TABLE OF CONTENTS A b b reviatio ns ...............................................................................................iii 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL ................. 1 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS.....................................1 1.2 REPORT ON COMPLIANCE WITH LEGISLATIONS.............................................4 1.2.1 Compliance with the Public Procurement laws .........................................4 1.2.2 Compliance with the Budget Act and other Budget Guidelines ......................5 2.0 INT RO DUCT IO N .............................................................................. 6 3.0 SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024.. 13 Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 Abbreviations ACE Eastern and Southern Africa Higher Education Centres of Excellence Project BOT Bank of Tanzania CAG Controller and Auditor General CoP Community of Practice ICIPE International Centre of Insect Physiology and Ecology IDA International Development Association ISSAI International Standards of Supreme Audit institutions IUCEA Inter-University Council for East Africa MUHAS Muhimbili University of Health and Allied Sciences NIMR National Institute for Medical Research SACIDS Southern African Centre for Infectious Disease Surveillance SUA Sokoine University of Agriculture TZS Tanzanian Shillings Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 j SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL Chairman of the University Council, Sokoine University of Agriculture (SUA), P.O. Box 3000, MOROGORO. 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS Unqualified Opinion I have audited the special purpose financial statements of Southern African Centre for Infectious Disease Surveillance - Africa Centre of Excellence for Infectious Diseases of Humans and Animals in East and Southern Africa (SACIDS-ACE) Project implemented by Sokoine University of Agriculture (SUA), which comprise the statement of receipts and payments for the year ended 30 June 2024, as well as the notes to the financial statements, including a summary of significant accounting policies. In my opinion, the accompanying special purpose financial statements present fairly, in all material respects, the receipts and payments of Southern African Centre for Infectious Disease Surveillance - Africa Centre of Excellence for Infectious Diseases of Humans and Animals in East and Southern Africa (SACIDS-ACE) Project implemented by Sokoine University of Agriculture for the year ended 30 June 2024, in accordance with International Public Sector Accounting Standards (IPSAS) modified cash basis of accounting and the manner required by Section ii (B) of the Financing Agreement. Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAI). 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 Southern African Centre for Infectious Disease Surveillance - African Centre of Excellence (SACIDS ACE II) Project implemented by Sokoine University of Agriculture (SUA) 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. Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 * - SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) Emphasis of Matter I draw attention to Note 1(a) of the special purpose financial statements which describes the basis of accounting. The special purpose financial statements are prepared to provide information to World Bank - International Development Association (IDA) and Sokoine University of Agriculture. As a result, the statements may not be suitable for other purpose. My opinion is not modified in respect of this matter. 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. Other Information Management is responsible for other information. The other information comprises the Project Management Report, Statement of management responsibility and the Declaration by the Head of Finance but does not include the financial statements and my audit report thereon. My opinion on the financial statements does not cover the other information, and I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information that I obtained prior to the date of this audit report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with Accounting Policies described in Note 1 (a) to special purpose financial statements and requirements of the Project Agreement 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. Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 2 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) Those charged with governance are responsible for overseeing the entity's financial reporting process. Responsibilities of the Controller and Auditor General for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an audit report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control; * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my audit report. However, future events or conditions may cause the entity to cease to continue as a going concern; and * Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 3 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are, therefore, the key audit matters. I describe these matters in my audit report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest of such communication. 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 LEGISLATIONS 1.2.1 Compliance with the Public Procurement laws Subject matter: Compliance audit on procurement of works, goods, and services I performed a compliance audit on the procurement of works, goods, and services in the Southern African Centre for Infectious Disease Surveillance - African Centre of Excellence (SACIDS ACE II) Project implemented by Sokoine University of Agriculture (SUA) 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 Southern African Centre for Infectious Disease Surveillance - African Centre of Excellence (SACIDS ACE II) Project implemented by Sokoine University of Agriculture (SUA) is generally in compliance with the requirements of the Public Procurement laws. Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 4 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) Unsatisfactory performance of the contractor on the Heath SACIDS Biomedical Laboratory Building project Clause 4 (1.1.3) of Contract No. PA/012/2022-2023/HQ/W/29 required the SACIDS Biomedical Laboratory Building project to be completed within five months from 25 August 2023, with a completion deadline of 26 January 2024. However, as of 31 July 2024, the project was delayed by over 200 days, with only 35% of the work completed despite TZS 476,470,045.40 in advance and interim payments. The delay is attributed to the University's failure to perform due diligence on the contractor's competence and financial ability, potentially leading to increased costs, penalties, and financial inefficiencies. 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 Southern African Centre for Infectious Disease Surveillance - African Centre of Excellence (SACIDS ACE II) Project implemented by Sokoine University of Agriculture (SUA) for the financial year 2023/24 as per the Budget Act and other Budget Guidelines. Conclusion Based on the audit work performed, I state that Budget formulation and execution of the Southern African Centre for Infectious Disease Surveillance - African Centre of Excellence (SACIDS ACE II) Project implemented by Sokoine University of Agriculture (SUA) is generally in compliance with the requirements of the Budget Act and other Budget Guidelines. Charles E. Kichere Controller and Auditor General, Dodoma, United Republic of Tanzania. December 2024 Controller and Auditor General ARIPA/SUA/SACIDS/2023/24 5 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) 2.0 INTRODUCTION 2.1 Background of the Project The SACIDS Africa Centre of Excellence for Infectious Diseases of Humans and Animals in East and Southern Africa (SACIDS-ACE) is Project that was designed with a focus of applying principles of molecular biology or analytical epidemiology in the One Health context to better understand and manage infectious diseases. The idea is to see results through the efficient use of research platform for Centre students and fellows that are designed to address disease problems that the Southern African Development and East African Communities (SADC and EAC) have identified as priorities, and/or that pose profound threats to global health security. The Centre's students and fellows examine host-pathogen interactions in southern and East African ecosystems, paying particular attention to development challenges such as food security, poverty, gender and the needs of marginalised communities. The Centre's research is in three strands, each grouped into theme clusters operating as Communities of Practice (CoP). The coordination of the 3 clusters is shared between, MUHAS and NIMR whereby SUA has been mandated to coordinate the Cluster addressing Viral Diseases that Threaten Human Health, Food Security and Livelihoods, MUHAS mandated to coordinate the Cluster addressing Bacterial Zoonoses, Antimicrobial resistance and Neglected Tropical Infectious Diseases that cause chronic disease and disability, with severe health, economic and social consequences that impact on the quality of life and Livelihoods in Low income or marginalised communities, especially women, children and people with disability; while SUA and NIMR are mandated with the Cluster that address Community- Level One Health Security, with a focus on rural, remote, cross-border and marginalised communities. SUA also provides the molecular biology and genomics competence for SACIDS-ACE. The Project's Vision: An African society protected from infectious diseases affecting the health of humans, animals, and ecosystems, thereby promoting livelihoods and socio-economic development including market access and the environment. The Project's Mission To harness science, technology and innovation to improve Africa's capacity in detection, identification and monitoring of infectious diseases to better manage the risks posed by them. Controller and Auditor General ARIPA/SUAISACIDS/2023/24 6 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) The Project's Goal: To develop effective African research capacity for infectious diseases through collaborative and jointly funded research programmes with a focus on African problems but in the context of global agenda. 2.2 The specific objectives of the ACE II Project are to:- Build institutional capacity to provide quality postgraduate education with relevance to the labour market, including, inter alia, updating curricula of existing programs or creating new education programs to meet the development challenge; meeting benchmarks for quality. Build institutional capacity to conduct high quality applied research, relevant to addressing a key development challenge/priority, including, inter alia, faculty development and staff training, fellowships and post-doctoral studies, networking activities with national and international partners, hosting and participating in conferences, research equipment and materials and laboratory refurbishment/rehabilitation, research dissemination, knowledge and technology transfer, and patenting or other intellectual property rights related activities. i. Develop and enhance partnerships with other academic institutions (national, regional and international) to pursue academic excellence, to raise the capacity of network partners, and to raise the Centre's capacity, including inter alta, joint delivery of education programs, faculty exchanges/visiting faculty, joint research and conferences, sharing of specialised equipment and library resources. ii. Develop and enhance partnerships with industry and the private sector to generate greater impact, to enhance the impact of the ACE on development and increase relevance of said centres on education and research, including, inter alia, industry advisory boards, industry lectures, training of trainers for sector training institutions (such as polytechnics, nursing, teacher or agricultural colleges), joint research, training and other activities to communicate, interact and reach out to civil society, private sector and grassroots communities. iii. Improve governance and management of the institution and setting up a role model for other higher education institutions, to improve monitoring and evaluation, including monitoring of labour market outcomes of graduates, administration, fiduciary management (including financial management (FM), procurement, oversight and capacity), transparency, ability to generate resources, and project implementation; and Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 7 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) iv. Deliver outreach, and create an impact, to society by delivering excellent teaching and producing high quality applied research. 2.3 Principal Financing 2.3.1 Project Duration and the Overall Budget The Project has duration of five years with a total budget of USD 6,000,000 with implementation plan covering a period from 2016 to 2021 as performance agreements entered between United Republic of Tanzania and World Bank - International Development Association (IDA). As a result of COVID-19, the World Bank granted a no- cost extension to SACIDS-ACE and all other ACE II Projects to 30 April 2024 to accomplish the remaining activities as per project documents where there is also an understanding that after the extension period the centre's will continue to exist and handle the uncompleted tasks as well as securing new funding for future development. On that understanding, the terms and conditions of the Project allows for solicitation of leverage funding from other sources (externally generated revenue) to support the project and centre's objectives. 2.5.1 Receipt of Funds During the Year During the year that ended 30 June 2024, the project had a sum of USD 2,155,932 available for spending. This includes the opening balance of USD 553,453 and a further receipt of USD 1,075,540 from the World Bank; and USD 526,939 from other agencies as detailed under Note 2 to the Financial Statements. 2.3.3 Conditional Receipt of Externally Generated Revenue During the year under review, the project received funds from other co-funding agencies generated in compliance with the requirement to find additional sources of income. The funds received amounted to USD 526,939 which is part and parcel of the receipt explained under part 1.3.2 of this report. The amount and details of funders are as shown in Note 2 to these Financial Statements. 2.4 Performance and Achievement During the year under review, cumulatively, the project spent a total sum of USD 1,287,833 (including USD 680,505 for the funds received from World Bank IDA; and USD 607,328 for co-funding agencies) against the cumulative budget of USD 2,072,605. The cumulative spending is 62% of the overall budget for both the funds received from World Bank IDA and the Co-Funding agencies. The usage of funds is as explained below; 2.4.1 Achievements During the year under review, SACIDS-ACE has achieved the following milestones: Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 8 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) i. SACIDS-ACE achieved 100% of all the four disbursement-Linked indicators (DLI) i.e. DLIl on Institutional readiness, DL12 on Excellence in education and research capacity and development impact, DLI3 on Timely, transparent and institutionally reviewed Financial Management, and DL14 on Timely and audited Procurement. As a result of this achievement, SACIDS-ACE withdrew from the World Bank a total of SDR4,275,000 as indicated in the Project Appraisal Document. ii. SACIDS-ACE completed the international accreditation of MSc One Health Molecular Biology (MSc OHMB) and obtained a seal from the Accreditation Agency for Study Programmes in Engineering, Informatics, Natural Sciences and Mathematics (ASIIN) of Germany. The MSc OHMB degree programme is aligned to Level 7 of the European Qualifications Framework for Life-Long Learning (EQF LLL). iii. SACIDS-ACE enabled Sokoine University of Agriculture to be an African Host Institution for the Regional Scholarship and Innovation Fund (RSIF) of the Partnership for Skills in Applied Sciences, Engineering and Technology (PASET). The RSIF-PASET initiative is funded by the World Bank, the Government of the Republic of Korea, Carnegie Cooperation of New York and nine (9) African Governments, and coordinated bt the International Centre of Insect Physiology and Ecology (icipe). SACIDS-ACE has received a total of 45 RSIF-PASET PhD scholars (7 from first cohort of 2018, 11 from second cohort of 2020, 14 from the third cohort of 2021, 11 from fourth cohort of 2022 and 2 from the fifth cohort; 14 females and 31 males; 9 Kenyans, 10 Rwandese, 4 Tanzanians, 3 Beninese, 1 Chadian, 3 Ivorians, 1 Congolese (DRC), 1 Ethiopian, 1 Malawian, 1 Nigerien, 1 Nigerian, 1 South Sudanese, 1 Burundian and 8 Mozambicans). iv. SACIDS-ACE funded a total of 16 PhDs students [Tanzania (11); Uganda (1), Zambia (2), DRC (1), Botswana (1)], 4 Master of Philosophy [Tanzania (3), Zambia (1), and 13 Master of Science in One Health Molecular Biology [Tanzania (10), Namibia (1), Botswana (1), Malawi (1)], all of whom have graduated at SUA and MuhimbiLi University of Health and Allied Sciences. v. SACIDS-ACE attracted four female Master of Science students who have registered at SUA during the 2023/2024 academic year with scholarships from the Additional Financing of the World Bank to IUCEA. Three candidates are registered for the MSc Crop Science and one in MSc One Health Molecular Biology. These are nationals of Burundi (2), Kenya (1) and Rwanda (1). vi. Developed and submitted the following proposals for funding: (a) In collaboration with the Development for Health (MDH) submitted a full proposal for the Notice of Funding Opportunity Number: 72062124RFA00003 for USAID Usalama wa Afya Duniani (Global Health Security) Project to USAID on 21 June 2024 with a budget Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 9 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) of USD25 million, (ii) Epidemic Science Leadership and Innovation Network (EPSILON) Preliminary Application (Reference number: EPS-P-137) in partnership with the Uganda Virus Research Institute (Uganda), National Institute of Health (Mozambique), National Institute for Biomedical Research (DRC), National Institute for Communicable Diseases (South Africa), and The Royal Veterinary College, University of London (United Kingdom) on 31 January 2024 with a budget of USD 5,397,000.00, (iii) Strengthening Health and Disease Modeling for Public Health Decision Making in Africa in response to call by Wellcome Trust and the Bill E Melinda Gates Foundation on Strengthening Health and Disease Modeling for Public Health Decision Making in Africa Concept note submitted on 23 October 23 2023 to Wellcome Trust and the Bill Et Melinda Gates Foundation with a budget of GBP2,999,076, and Development of Probiotic Products for Improving Animal Health and Productivity in response to IDRC Call for Research Proposals: Innovative Veterinary Solutions for Antimicrobial Resistance (InnoVet-AMR) 2 in Food-Producing animals: Ruminants and Aquaculture. Proposal submitted to IDRC on 30 October 2023 with a budget of USD1,447,622. vii. SACIDS-ACE participated in the 14th National Steering Committee (NSC) that was held on 28 July 2023 at the Ardhi University, Dar es Salaam. 2.5 Management structure SUA manages the SACIDS-ACE program, with the Centre Leader from SUA, the Deputy Centre Leader cum Principal Investigator from SUA and the second Deputy Centre Leader from MUHAS providing centre leadership and management, supported by a dedicated Secretariat. Upon completion of the project the centre will continue to exist and operate within the SUA framework. 2.6 Audit Mandate The Controller and Auditor General is the Statutory Auditor of Sokoine University of Agriculture by the virtue of Article 143 of the Constitution of the United Republic of Tanzania as amplified under Section 9 of the Public Audit Act Cap 418 [R.E 2021]. Further Schedule 2B (3) of the Financing Agreement for ACE II projects between the Recipient (Government of the United Republic of Tanzania) and the International Development Association "the association" insists on recipient to cause the Eastern and Southern African Higher Education Institutions to have their Financial Statements audited; and for that matter, the recipient's auditor is the Controller and Auditor General. Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 10 SPA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) 2.7 STATEMENT OF MANAGEMENT RESPONSIBILITY The management is responsible for preparation and fair presentation of the Statement of Receipts and Payments in accordance with accounting policies and grant agreement set out under notes to the financial statement, and for such internal controls as management determines are necessary to enable the preparation of the financial statements that are free from material misstatements, whether due to fraud or error. The management is required to ensure that the Project keeps proper accounting records, which disclose with reasonable accuracy at any time. They are also responsible for safeguarding the assets of the Project. The management accepts responsibility for the special purposes financial statements which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with the Projects' accounting policies; and with provisions of the Projects Agreements and government provisions. The management is of the opinion that the special purposes financial statements present in all material respects the financial affairs of Project and the results of its activities. The management further accepts responsibility for maintenance of accounting records, which may be relied upon in the preparation of the financial statements as well as adequate systems of internal financial control. BY ORDER OF THE COUNCIL Prof. Japhet J. Kashaigili Date: ...>. ....... Director of Postgraduate Studies, Research, Technology Transfer and Consultancy Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 11 SUA SACIDS AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS-ACE) 2.8 DECLARATION OF THE HEAD OF FINANCE 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 Head of Finance/Accounting responsible for the preparation of financial statements of the entity concerned. It is the duty of a Professional Accountant to assist the University 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 modified cash basis as described in Financing Agreement. Full legal responsibility for the preparation of project financial statements rests with the University Council as Par part 16.1 of the project implementation plan 2016-2021 and the no cost extension period to April 2024. 1, Peter Wilson, being the Head of Finance/Accounting of Sokoine University of Agriculture hereby acknowledge the responsibility of ensuring that financial statements of the SACIDS-ACE for the year ended 30 June 2024 have been prepared in compliance with the requirements of the Grant Contract I thus confirm that the financial statements comply with the requirement of the Grant Contract as on that date and that they have been prepared based on property maintained financial records. Peter Wilson Lubuwah Position: Director of Finance NBAA Membership No.: ACPA 2081 Date: ... . ........... Controller and Auditor General ARIPA/SUA/SACIDS/2023/24 12 SJA-SAC1dS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN- AST AND SOUTHERN AFRICA (SACIDS-ACE) SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 3.0 SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 3.1 STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30 JUNE 2024 2023/24 2023/24 BUDGET ACTUAL Notes USD USD Receipts Fund Balance as at 1 July 2023 2 553,453 Receipts from International Dev 2 1,262,380 1,075,540 Assc(IDA)_World Bank Receipts from Co-Funding Agencies 2 810,225 526,939 Total Budget/Receipts 2,072,605 2,155,932 Payments Output 1: Learning Excellence 3 153,471 71,380 Output 2: Research Excellence 4 779,206 227,335 Output 6: National and Regional academic part 5 19,626 49,742 Output 8: Management and governance 6 261,509 106,201 Output 9: Monitoring and Evaluation System 7 48,568 42,878 Co_Funding Agencies Expenditure 8 810,225 790,29 2,072,605 1,287,833 Excess of Receipts over payment 868,099 Represented by: Cash and Cash Equivalent 9 801,594 Receivables 10 73,610 Payable 11 (7,105) Fund balance as at 30.06.2024 868,099 The statement of receipts and payments was approved for issue by management of Sokoine University of Agriculture on and signed on its behalf by: Prof. R. T. Chibufida Prof. J. Kashaigili Prof G. Misinzo Mr. P W. Lubuwah Vice Chancellor Director of Leader Director of Postgraduate Studies, SACIDS-ACE Finance Research, Technology Transfer and Consultancy Controller and Auditor General ARIPA/SUA/SACIDS/2023/24 13 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) 1. ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation The financial statements are prepared on the modified cash basis (as per Section ii (B) of Financing Agreements and Section 4.09 of General Condition) of accounting to accrue for outstanding payables whose supporting documents (e.g. invoices and/or service agreements) were received and approved before or on the last day of the accounting period but had not been paid. (b) Revenue recognition Revenues are recorded when credited to the Project's bank account. Unspent fund balances at the end of one accounting period are carried forward as income in the subsequent accounting period. (c) Expenditure Expenditure is recognised when incurred. Project funds are only used for approved budget activities that are in accordance with the objectives of the grant and the Project. (d) Imprest The term imprest is used to cover Project related advances, being funds disbursed to individuals, with the purpose of incurring expenditure on approved budgeted activities on behalf of the Project. Imprest is recognised as expenditure when accounted for. (e) Accounts receivable Amounts refundable to the Project are recognised if their recoverability is virtually certain. (f) Fixed assets Fixed assets are not capitalised but are recorded as payments after the receipt of the assets or when payment has been made, whichever occurs earlier. The list of assets as at 30 June 2024 has been attached as Appendix 2 of this report. (g) Foreign currency translation (continued) Functional currency is the currency of which the Project operates as per Financing Agreement. The functional currency is United States Dollar (USD). The financial statements are presented in USD. All receipts and payments are made in USD. For the case of demand note/payments prepared in local currency, the payments are effected prior to translation of the transaction (s) using the prevailing exchange rate of TZS against USD at that particular date. Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 14 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) For presentation purposes, receipts are shown in the original amounts of USD received during the year. Payments during the period, accounts receivable, accounts payable and cash balance at the end of the accounting period are also shown in USD. 1. ACCOUNTING POLICIES (CONTINUED) (h) Payables Payables are unpaid invoices and/or service agreements whose supporting documents were received and approved before or on 30 June 2024, which was the last day of the accounting period but were settled subsequently. 2. RECEIPTS DURING THE YEAR 2023/24 Receipt No Amount (USD) INTL DEVELOPMENT ASSOCIATION#1DA 57990 SACIDS ACE 572,130 INTL DEVELOPMENT ASSOCIATION#IDA 57990 SACIDS ACE 157,487 INTL DEVELOPMENT ASSOCIATION#IDA 57990 SACIDS ACE 345,923 Sub Total IDA 1,075,540 Receipts from Co-Funding agencies ICIPE-RSIF SCHOLARSHIP GRANT FUNDS 27,000 Tanzania Commision For Science Technology 83,890 ICIPE-RSIF Scholarship Grant Funds 31,800 ICIPE-RSIF Scholarship Grant Funds 46,200 ICIPE-RSIF Scholarship Grant Funds 46,800 ICIPE-RSIF Scholarship Grant Funds 15,000 ICIPE-RSIF Scholarship Grant Funds 9,600 ICIPE-RSIF Scholarship Grant Funds 9,600 Korea National Institute of Health 16,032 Korea National Institute of Health 36,217 ICIPE-RSIF Scholarship Grant Funds 35,400 ICIPE-RSIF Scholarship Grant Funds 54,000 Tanzania Commision For Science Technology 105,800 ICIPE-RSIF Scholarship Grant Funds 9,600 Sub-total Co-Funding Agencies 526,939 Total Receipts 1,602,479 3 Outputl: Learning excellence 2023/24 USD Pursue international accreditation/recognition of MSc. One Health Molecular Biology (OHMB) Bank Charges and Commissions 55 Civil Servants Contracts 928 Conference Facilities 1,288 Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 15 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) 3 Outputl: Learning excellence 2023/24 USD Extra-Duty 3,287 food and Refreshment 4,873 Honoraria 6,111 Per Diem - Domestic 13,471 Public Service Social Security Fund (PSSSF) 772 Registration, Accreditation, Admission and Articulation 8,973 sitting aLLowance 3,519 Sub Total 43,277 Equipment and Laboratory software for students practical Computers, printers, scanners, and other computer related equipment Sub total Maintain Laboratory Manager/Chief Laboratory Technologist Civil Servants Contracts 20,881 National Health Insurance Schemes (NHIF) 117 Public Service Social Security Fund (PSSSF) 4,417 Workers Compensation Fund (WCF) 98 Sub total Enroll 7 PhD; Stipend, Research fund and Registration Tuition fees 1,471 Sub total 1,471 Total for Output 1 71,380 4 Output 2: Research Excellence 2023/24 USD Engage 2 Post Docs; Stipends, Research funds Civil Servants Contracts 4,613 National Health Insurance Schemes (NHIF) 106 Public Service Social Security Fund (PSSSF) Sub Total Refurbishing teaching labs at Dept Microbiol - SUA Consultancy fee 34,877 Controller and Auditor General ARIPA/SUA/SACIDS/2023/24 16 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) Office buildings and structures 180,243 Withholding Tax 6A1 Sub total 221,561 Total for Output 2 227,335 5 OUTPUT 6: NATIONAL AND REGIONAL ACADEMIC PART 2023/24 USD Carry out joint research and training activities Food and Refreshment 201 Honoraria 9,791 Per Diem - Domestic 37,743 Responsibility allowance 417 Special allowance Total for Output 6 49 6 OUTPUT 8: MANAGEMENT AND GOVERNANCE 2023/24 USD Appoint Centre Secretariat staff and set up operations for programme coordination, finance, Training and Research Officer, IT, procurement, Communications Manager programme quality assurance and internal Monitoring & Evaluation Civil Servants Contracts 33,630 Community Health Fund 236 National Health Insurance Schemes (NHIF) 381 Public Service Social Security Fund (PSSSF) Sub Total Support Center operation costs: Salaries for Administration staff and Contribution to secretariat & Departmental operational costs Accommodation 1,666 Bank Charges and Commissions 236 Conference Facilities 191 Diesel 3,976 Extra-Duty 964 Food and Refreshment 140 Ground travel (bus, railway taxi, etc) 6,397 Controller and Auditor General ARIPA/SUA/SACIDS/2023/24 17 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) 6 OUTPUT 8: MANAGEMENT AND GOVERNANCE 2023/24 USD Honoraria 6,711 Insurance Expenses 188 Motor Vehicles and Water Craft 561 Office Consumables (papers, pencils, pens and stationaries) 1,154 Outsourcing Costs(Includes cleaning and security services) 278 Per Diem - Domestic 34,566 Per Diem - Foreign 816 Printing and Photocopy Paper 131 Registration, Accreditation, Admission and Articulation 1,680 Research and consultancies 1,982 Subscription Fees 2,536 Sub Total Total for Output 8 106,201 7 OUTPUT 9: MONITORING AND EVALUATION 2023/24 USD Meetings of National Steering committee Per Diem - Domestic 15,653 Research and consultancies Sub Total 21,599 Carrying out Monitoring (And control auditing of partners) Honoraria 6,978 Per Diem - Foreign 2,540 Sitting allowance 3,280 Sub Total 1279 External auditing Audit supervision expenses 8,481 Sub Total 8,481 Total for Output 9 42,878 8 CO FUNDING EXPENDITURES 2023/24 USD PROJECT 1: RSIF-PASSET Bank Charges and Commissions 1,191 Research and Dissertation (Training - Domestic) 191,786 Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 18 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) 8 CO FUNDING EXPENDITURES 2023/24 USD Tuition Fees (Training - Domestic) 124,800 Sub Total 317,777 PROJECT 2: ONE HEALTH DETECT Advertising and Publication 5,000 Bank Charges and Commissions 168 Civil Servants Contracts 5,115 National Health Insurance Schemes (NHIF) 93 Per Diem - Domestic 16,273 Public Service Social Security Fund (PSSSF) 618 Research and consultancies 2,660 Subscription Fees 271 Telephone Equipment (mobile) 1 Sub Total 32 UKRI-GRTA Laboratory Supplies 1 Sub Total 1061 CGHS Bank Charges and Commissions 15 Per Diem - Domestic 1,702 Previous imprest retirements 182,969 Sub Total 184,686 ICIPE-JIRA Bank Charges and Commissions 20 Per Diem - Foreign 4,528 Research and consultancies 7,766 Research and Dissertation (Training - Domestic) 3,499 Subscription Fees 300 Sub Total 16113 KNHI-KOREA Bank Charges and Commissions 156 Per Diem - Domestic 37,044 Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 19 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) 8 CO FUNDING EXPENDITURES 2023/24 USD Per Diem - Foreign 4,620 Research and consultancies 9,500 Research and Dissertation (Training - Domestic) 3 Sub Total 8 OR TAMBO Advertising and Publication 5,018 Bank Charges and Commissions 256 Civil Servants Contracts 14,943 Computers, Printers, Scanners, and Other Computer related equipment Diesel 4,553 Food and refreshment 20 Honoraria 7,760 Internet and Email connections 279 Laboratory Supplies 14,233 National Health Insurance Schemes (NHIF) 74 Other license and fees 3 Per Diem - Domestic 46,807 Public Service Social Security Fund (PSSSF) 2,723 Research and consultancies 13,442 Shipping Administration Charges 454 Upkeep/Stipend Allowances 31,707 Workers Compensation Fund (WCF) 74 Sub Total 142,386 Total for Co funding 790,297 9 CASH AND CASH EQUIVALENT 2023/24 USD Opening Balance 344,858 Receipts 1,602,479 Total cash and cash equivalent 1,9471337 Actual expenditure in USD Account (611,496) Actual expenditure in TZS Account (534,247) Total Expenditure (1,145,743) Cash and Cash equivalent as at 30th June 2024 801,594 Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 20 SUA- SACIDS- AFRICA CENTRE OF EXCELLENCE FOR INFECTIOUS DISEASES OF HUMANS AND ANIMALS IN EAST AND SOUTHERN AFRICA (SACIDS ACE) 10 RECEIVABLE 2023/24 USD Staff Imprest 2,477 Inter Project receivables 40,455 Other Receivable (Deposit Et Prepayment) 29,823 Prepaid Expenses 855 73,610 A sum od USD represents project receivables where USD 2,477 is for unretired imprests at the year end retired in the subsequent period, USD 40,455 is an interproject receivable for the activities within SACIDS project to be settled as the projects continues, and USD 29,823 as deposit and prepayment for goods delivered but certified in the subsequent period; and USD 855 is the prepaid expenses for fuel at GPSA. 11 PAYABLE 2023/24 USD Withholding Tax 3,634 Unapplied 153 Staff payable L941 Total ZIP5 Controller and Auditor General AR/PA/SUA/SACIDS/2023/24 21 N N И � о rn � b ° о b b а � Q. � �о � о и � � N а '°" и � � С � й а � г а а ш S � cV о• г.� о � � N г"'• о v о � v S о�о р м N � � N" ао ^'� Q� �- . и � N О ар � � и Ф и и .а N � � �о о .� ш z � • �г � � г� о• г� � о• о � м � . J м N � г � м �ri � м � � м � и Г � N и ^ N . Z 0 � N ^ N N N а W � й �^ G • � � а.�+ � lJ • а ш � й � W � а = W й � а � �.. � Q � rn i о о о о �а О J Z5 оо и � � cv g N Q й � С N о N й � � � � � n ш а �� и � р 'С � а о'о о � � � ш � � т й +' � W � ш с О W о а � � � � � �� � й ш ° Q $ о � � г °° °' г� � � т � г о�л � `о 'i° га а � � � � � й � � c.W1 � L т � � ип Е у 7+ Q � � � � � й N � � � � м � г�а � � '° � � а' �,л � ` � � ^ Е у ' [� 1i � О U�л � й = � О О � w � гб � Ф � � � .� �, � � •� �, � � й ~ �т �� � 'L' т гб � � а о й с с � г��а � � ш с о L � с v � � �J с� Н � ° ш ол � г�'�о �' � � °а � � Q `i й r и с� с v �° а' � � � с�о ш N � с � ш � � Х С оа с� '= J о Q- � t и га � � � L' о ++ � •�и, �ш 'со й с� 2 ш й о с о с �_ � Н L � г.;� а � ш � с ° го 'го а"i s � а► о с � � � с а т � а0 а. Е �1- а и а и ш а и г й й� а м N и � М О� О� � N М и и �О � М м � Й � • , а � и � � а г � ш � � оо о� о• rn � � � � � г•�-, � м � й и •о � о р^ � � р �и г� �о Г iл et , м `O � � � t� г а , � � и а w • v� � � N � р � � оГо � м N' � ^ ^ р �- N 1� и � ер и м � � � � � � N И � О^+ О , Z � � � �, Q И ' , � О ' а а и � а � и = а х а L� N N � м О�р � ° ° .а0о о°о pZ О �о �р м � и и g � и r� а и � �л" .о" � о" iл м ао г� W в- � М N � N N � � а Г �' (V N W � И_ � И � о � и � > � О г � � � � �i г��б О га с � �° „_' � ш W iQ.�� о��о о г, и � � >. с +� � ш ',� � с ` Z й� а и � L� J гб i:+ � � � гnб L О. � � � � Ш U � О � С N � � � � р � с�0 � � •О � гб � � а � �t1 � � w + � а � ш °" �л � ; ��о" wu ° L ьм о��� ��о•� о '� � � � гс�,ш й й�'�•�° и � у �о�� � �+;��� ° о I` й г'-'б й й � ��i й� °' � up�f С � � с s � �' С С гб С 7 � �д ш� `а �° о й� v � � 3�рΡ с ш го � и � и оп +л l7 г�б и^�_ у � tn �� а.и.+ J � j •� й iб �+ j Е1.. о i:+ ���'' С i гб �= Ш � *'' � � М а 1] . Q � и т �у � i� С° � �О с N N с�+-'б b � � ОП Е i:+ N о` а�0 N � ои гиб р гп L о и� V П1 и С у � +� Q � � � � � � 0 N� •� � j � о р � О � О О � О и р°,� .� й �� � � а� �� � а Н г С �, Н � � � ` , о�л�� аа � С с р Е й ай � с i }+ а' ¢�.м с���о � А '��ои �о � о го � га � о � �� ш�+аа+� и г �аига ии и� и Q и и Н v � с.� � � � � й й й - й >^ н N а �� N N и й �• � а � а г � ш � � _ F- с � ;+ ° �r О �оо`.i и и С г а � � И L '� г aVC oN 'и N ' J � � М N о г N а й с о г й а а и и г а � и � � о � � N � о а О Nй � а N W . � а � о й_ � 3 � м � `ги � 'а � С�` а й � � �s w ш � t` � с г �g ?� �,с�,, 0 с С] W а й т� ,� г '� -� ш ~ й И -n О � гд Н � О,� L � �` -г�-� � � аг�i � о и � W й s N � �' � а а� ` с ,о s�° и й О ао '._.`� � Q а � � ~ и� � й � а� LJ а й О � � о � а_ 7 � Й � � J с �у" ' Ф � к � о а, t`�л г'9iZ а_ О Q � ��.�.а аа�' 3 ° и � а и