THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE ISO9001:2015 Certified DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE FINANCIAL AND COMPLIANCE AUDIT OF THE EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP) FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 Project ID: 163399 CREDIT NUMBER IDA/63330 TZ Controller and Auditor General, National Audit Office, "Ukaguzi" House, 4 Mahakama Road, P.O. Box 950, 41104 Tambukareli, Dodoma, Tanzania. Tel: 255 (026) 2161200, E-mail: ocaq@nao.qo.tz Website: www.nao.go.tz December 2024 AR/CG/DIT-MWZ/EASTRIP/2023/24 4 P. 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 3-' 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 ett n pWe deliver high-quality audit We are an Impartial public services based on institution, independently aporae poesoa offeing ighqualty aditknowledge, skills, and best services to our clients in an L I~practices unbiased manner. Teamwork Spirit . Integrity We value and work CORE We observe and maintain high together with internal VALUES ethical standards and rules of and external law In the delivery of audit stakeholders. services. Results-Oriented Creativity and we focus on Innovation achievements 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 ATC EASTRIP and the World Bank and may form part of the annual general report, once the report submitted to the World Bank they might be shared and become public document; hence, its distribution may not be limited. Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 . .. * -. TABLE OF CONTENTS A bbreviations ...................................................................................... 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 2.0 FINANCIAL STATEMENTS................................................................... 5 ontroller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 V.A. ~ --- .L ABBREVIATIONS BoT Bank of Tanzania CoE Centre of Excellence DLI Disbursement Linked Indicator EASTRIP East Africa Skills for Transformation and Regional Integration Project ECL Expected Credit Loss ICT Information and Communication Technology IPSAS International Public Sector Accounting Standards ISSAls International Standards of Supreme Audit Institutions MoEST Ministry of Education, Science and Technology NACTE National Council for Technical Education PDO Project Development Objectives PIU Project Implementation Unit TVET Technical and Vocational Training TZS Tanzanian Shillings URT United Republic of Tanzania USD United States Dollar WB World Bank Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 4p A r 1.0 INDEPENDENT REPORT OF THE CONTROLLER AND AUDITOR GENERAL Chairperson, Governing Council, Dar es Salaam Institute of Technology (DIT), P.O. Box 2958, DAR ES SALAAM, TANZANIA. 1.1 REPORT ON THE AUDIT OF FINANCIAL STATEMENTS Unqualified Opinion I have audited the financial statements of DIT Mwanza Campus-EASTRIP, which comprise the statement of financial position as at 30 June, 2024, and the statement of financial performance, statement of changes in net assets and cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. In my opinion, the accompanying financial statements present fairly in all material respects, the financial position of DIT Mwanza Campus-EASTRIP as at 30 June, 2024, and its financial performance and its cash flows for the year then ended in accordance with International Public Sector Accounting Standards (IPSAS) Accrual basis of accounting and the manner required by the Public Finance Act, Cap. 348. Basis for Opinion I conducted my audit in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the section below entitled "Responsibilities of the Controller and Auditor General for the Audit of the Financial Statements". I am independent of DIT Mwanza Campus in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the National Board of Accountants and Auditors (NBAA) Code of Ethics, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Key Audit Matters Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. I have determined that there are no key audit matters to communicate in my report. Other Information Management is responsible for the other information. The other information comprises Report of the Governing Board, Declaration by the Head of Finance and statement of Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 AO- -V management responsibility on the EASTRIP financial statement 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 obtained prior to the date of this audit report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. Responsibilities of Management and those charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IPSAS and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the entity or to cease operations or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the entity's financial reporting process. Responsibilities of the Controller and Auditor General for the Audit of the Financial Statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an audit report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with 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. Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 2 As part of an audit in accordance with ISSAls, I exercise professional judgment and maintain professional skepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control; * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my audit report. However, future events or conditions may cause the entity to cease to continue as a going concern; and * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are, therefore, the key audit matters. I describe these matters in my audit report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest of such communication. Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 3 In addition, Section 10 (2) of the Public Audit Act, Cap 418 requires me to satisfy myself that the accounts have been prepared in accordance with the appropriate accounting standards. Further, Section 48(3) of the Public Procurement Act,2011 requires me to state in my annual audit report whether or not the audited entity has complied with the procedures prescribed in the Procurement Act and its Regulations. 1.2 REPORT ON COMPLIANCE WITH LEGISLATIONS 1.2.1 Compliance with the Public Procurement laws Subject matter: Compliance audit on procurement of works, goods, and services I performed a compliance audit on the procurement of works, goods, and services in DIT EASTRIP Mwanza Campus for the financial year 2023/24 as per the Public Procurement laws. Conclusion Based on the audit work performed, I state that procurement of goods, works and services of DIT Mwanza Campus-EASTRIP is generally in compliance with the requirements of the Public Procurement laws in Tanzania. 1.2.2 Compliance with the Budget Act and other Budget Guidelines Subject matter: Budget formulation and execution I performed a compliance audit on budget formulation and execution in DIT Mwanza Campus-EASTRIP 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 DIT EASTRIP Mwanza Campus is generally in compliance with the requirements of the Budget Act and other Budget Guidelines. Charles E. ichire Controller and Auditor General, Dodoma, United Republic of Tanzania December 2024 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 4 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 2.0 FINANCIAL STATEMENTS 1.0 PROJECT BACKGROUND Dar es Salaam Institute of Technology (DIT), Mwanza Campus is a beneficiary of World Bank funding regional project to transform DIT Mwanza Campus into a Centre of Excellence in Leather Processing and Allied Technologies (CELPAT) under the East Africa Skills for Transformation and Regional Integration Project (EASTRIP). The Project Development Objective (PDO) is to increase the access and improve the quality of TVET programs in selected Regional Flagship TVET Institutes and to support regional integration in East Africa. The CELPAT will address the challenges facing the nation at Large and DIT Mwanza Campus by implementing various activities such as developing curricula and programs that meet market demand, upgrading infrastructures including machineries and equipment, strengthening Industrial linkages, and educational study visits (Including Internships and workplace exposure for TVET instructors and students), Industrial experts visitations Industrial Advisory Committee establishment, and the establishment of Outreach programs. 1.1.1 Objectives of CELPAT . Strengthening governance and management to international standards with ISO Certifications * Strengthening of industrial linkages between DIT Mwanza and relevant industries to address technical skill gap * Development of market relevant and competency-based training programs * Capacity building of school managers and teachers (tutors, instructors, lecturers) * Improvement of training facilities and equipment * Establishment of sustainable partnership and collaboration with non-project national TVET. * Increase student enrolment through development of market relevant programs. 1.1.2 Enrolment performance DIT Mwanza Campus continue to run trainings in Nine (4) Ordinary Diploma programmes, three (3) certificates programmes and three (3) short course programmes. Programmes offered at DIT-Mwanza Campus were as follows; 1.1.3 Ordinary Diploma Programmes * Ordinary Diploma in Science and Laboratory Technology * Ordinary Diploma in Leather Products Technology * Ordinary Diploma in Leather Processing Technology * Ordinary Diploma in Food Processing Technology Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 5 ___________________ ______________________ I THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 1.1.4 Certificates Programmes * ICT-Information and Communication Technology * LA-Laboratory Assistant * LGF-Leather Goods and Footwear 1.1.5 Short Courses * Basic Shoe Making * Leather Craft Tanning * Computer Applications, Maintenance and Repair The DIT-Mwanza Campus student's registration status for academic year 2023/2024 is presented in the table below: Table 1: Ordinary Diploma Programmes (NTA) 2023/2024 2022/2023 S/N Programme Female Male Total Female Male Total 1 Ordinary Diploma in Science 25 52 77 23 41 64 and Laboratory Technology (NTA Level 4-6) 2 Ordinary Diploma in Food 01 0 01 Processing Technology (NTA 3 2 5 Level 4-6) 3 Ordinary Diploma in 8 31 39 18 39 57 Leather Products Technology (NTA Level 4-6) 4 Ordinary Diploma in 1 4 5 01 03 04 Leather Processing Technology (NTA Level 4-6) Table 2: National Vocational Awards (NVA) S/N Programme 2023/2024 2022/2023 Male female Total Female Male Total 1 ICT-Information and 6 2 8 18 44 62 Communication Technology 2 LA-Laboratory Assistant 3 3 6 15 8 23 3 LGF-Leather Goods and Fotwar4 1 5 2 3 5 Footwear- Table 3: Short Course S/N Programme 2023/2024 2022/2023 male Female Total Female Male Total 1 Basic shoe Making 87 15 102 56 36 92 2 Leather Tanning 38 16 54 8 12 20 3 ICT-Information and 236 129 365 287 144 431 Communication Technology Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP S/N Programme 2023/2024 2022/2023 male Female Total Female Male Total 4 Tie and Dye 0 0 0 86 5 91 (Fabric Dyeing) 5 Basic Leather 0 0 0 13 35 48 Goods Making 6 Chemistry Practical for 36 14 50 10 33 43 Secondary Teachers 7 Football Making 22 10 32 6 28 34 8 Footwear Design and Pattern 56 23 79 4 39 43 Making 10 21 31 1.2 PROJECT MANAGEMENT The General Management of Mwanza campus is under the Campus Director who is appointed by the DIT Chief Executive Officer (Rector). The Director of the Campus is also a Centre Leader [CL] and is the Accounting Officer of the project who reports directly to World Bank (WB) through DIT Rector. The project established an Industrial Advisory Committee to advise on industrial issues and it is composed of members from the private sector/ industry, academia, and public sector. A Project Implementation Unit (PIU) is formed by the DIT Management led by Project Coordinator. 1.2.1 Industrial Advisory Committee As part of EASTRIP implementation, CELPAT has established an Industrial Advisory Committee (IAC), as stipulated in the World Bank Project Appraisal Document (PAD). IAC is responsible for providing CELPAT with information, advice and recommendations from a cross-section of Leather industries and stakeholders on contemporary issues affecting Tanzania's Leather sector. According to guidelines, IAC meets twice per year; in the year ended 30 June 2024, the IAC conducted two meetings (November 2023 and May 2024). 1.2.2 Functions of Industrial Advisory Committee It is proposed that, functions of the Industrial Advisory Committee shall include but not limited to the following: * Strategic curriculum reforms to incorporate the industry needs. * Support the DIT Council through Project Implementation Unit (PIU) to oversee its implementation by providing industry input as to how the country can achieve a full utilization of leather and leather products in the longer term and promote changes in behaviour and culture in the industry. * Coordinate the leather sector working group/associations to achieve stronger leadership in the industry and ownership of the problem and solutions related to the sector and advice the DIT Management accordingly. Controller and Auditor General AR/CG/DIT-MWZIEASTRIP/2023/24 7 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP * Bring an industry specific perspective to keep CELPAT abreast of technical changes in the leather sector and identify future trends. * Advice and support the delivery of DIT's strategic plan to produce skilled labour that will fit working effectively and efficiently in the leather industry. * Promote a culture change resulting in a leather industry/sector which recognizes and accepts high standards Et quality products as an integral part of successful business practice. * Promote better understanding and recognition of the risks associated with non- conformity of internationally accepted standards and lack of skilled human resources in the business perspective. * Identify impediments impacting employability and absorption of trained workforce available in the market and advise the DIT Management accordingly. * Assist in identification and acquisition (when appropriate) of external funding and resources to support students and programmes (scholarships, program materials, and other resources) 1.2.3 Composition of Industrial Advisory Committee The Industrial Advisory Committee of the CELPAT shall constitute nine (9) members as follows: i. Deputy Principal Academic, Research and Consultancy (DPARC), ii. Industrial Liaison and Career Guidance (ILCG) officer, iii. Project Coordinator who shall serve as the secretary, and iv. Six (6) members who will be drawn from the broad range of Leather industries/Institutions including but not limited to; * Tanzania Leather and Leather Products Association (TALLEPA), * Leather Association of Tanzania (LAT)), * Ministry of Industry and Trade (1), * Ministry of Livestock and Fisheries Development (1), * Sokoine University of Agriculture (SUA) (1), and a TVET Institutions 1.2.4 Appointment of Members The DPARC, Project Coordinator, and ILCG are members by virtue of their positions, whereas the six members were proposed by the PIU, and submit names/organizations to DIT Management Meeting for deliberation and recommendation for the approval by the DIT Machinery. Following the appointment of Dr. Richard Masika who was the member of . IAC to the position of DIT Council Chairman, the PIU has proposed the name for his replacement and procedure for endorsement are under Institute machinery and will finally be submitted to WB for approval. Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Table 4: List of Committee Members S/N Name of Employer Position Education Area of Candidate Level Competence 1. Cot. (Rtd) Industrialists Former Director M.Eng. Manufacturing - Joseph L and Private General, Export Computerized Simbakatia sector Processing Zone Numerical Control Authority (EPZA) 2. Joram P. LAT/ Office, Executive Secretary BSc Leather Technology Wakari DSM 3. Mr. Gabriel Ministry of Assistant Director - MSc Tropical Animal Sirili Livestock and Livestock Products, Production, Fisheries Food Security and Animal Science and Nutrition Production 4. Eng. Peter K Ministry of Industrial Engineer MSc Process Et Nyang'ombe Industry and Manufacturing Trade Industries Technologies, Chemical Et Processing Eng. 5. Eng. Kilimanjaro Managing Director MBA, Management of MasudOmari International (BScin leather Industries, Leather Mechanical Mechanical Industries Engineering Engineering Company Limited, Moshi Kilimanjaro 1.2.5 Core Project Team (Project Implementation Unit - PIU) Project Coordinator will be Centre Leader (CL). The CELPAT Project Implementation Unit (PIU) was constituted by 6 members from the following focus areas; Technical person in leather and leather goods; Financial Specialist/Accountant, Procurement Specialist, Gender and Environmental Safeguard personnel and Industrial Liaison Officer and Monitoring and Evaluation personnel. The members of the PIU are appointed staff of DIT by the institute management. Table 5: List of Project Implementation Unit and their Roles S/N Name Role 1 Dr. Albert G. Mmari Centre Leader and Project Coordinator CELPAT PROJECT IMPLEMENTATION UNIT MEMBERS 1 Mr. Issa Mwangosi Technical person in Leather Technology, Assistant Project Coordinator 2 Mr. Stephen Ngiga Financial Specialist/Accountant 3 Ms. JuliethMwihambi Procurement Specialist Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP S/N Name Role 4 Mr. Augustine MbitiLa Monitoring and Evaluation 5 Mr. Aidan Telesphory Industrial Liaison Officer 6 Ms. Doris Ngogo Gender and Environmental Safeguard 1.2.6 Project Beneficiaries Table 8 below explains the project beneficiaries with respect to developed programs and other activities with current status of the benefit and scale of beneficiary (micro, small, and medium). Also, the table explains how the project will shift/change the current status: Table 6: Project Beneficiaries Scale of Current Related Expected S/N Beneficiary Beneficiary Status Developed/Reviewed Status Change Program 1 Leather and Medium to Lack of * Tailor made Qualified and leather Large skilled programs as competent products manpower requested by manpower Industries industries and * Long term programs 2 Leather and Micro to Lack of Tailor made programs Skilled labour leather Small skills, force products design and manufacturers improveme nt technologie 3 Students/ Beginners Lack of Long term programs Qualified and Trainees (secondary skills competent school graduates graduates) Et TVET (NVA III levels) graduates 4 Public and NVA level II Shortage of * Long term programs Academic private TVET skilled staff * Tailor made progression to institutions programs higher levels (NVA Ill) 5 Standard seven Beginners Unskilled, Tailor made programs Self/wage leavers Unemploye employed d, informally employed 1.2.7 Stakeholders of the Centre The project sustainability depends on internal and external stakeholders. In that view CELPAT plans to generate revenue and overcome running costs/operating expenses for long term project sustainability. In this project, DIT Mwanza Campus proposes to use a C 10 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP number of revenue sources, including Tuition fees, Charges from the consultancy services after teachers and staff have been trained, Contract tanning services to Micro, Small and Medium enterprises (MSME's), Charges on use of equipment /facilities, products development to industrial level, sales of Leather articles and any possible funds from development partners/donors. The main Project stakeholders are private and government stakeholders. 1.2.8 Private sector stakeholders Table 7: Footwear and leather goods stakeholders Stakeholder Current status Roles in the project Students/Trainees Low/lack of skills / Labor/work force to the market End user/consumers Low effective / Secondary demand for skills demand V demand for footwear and leather goods Export market High effective / Demand for high quality leather and demand/lucrative leather goods market Footwear and leather goods Operating but with V Primary demand for skills manufacturers: lack/inefficient V Industrial attachments * Kilimanjaro International skilled Labour / guest/visiting lectures, Leather Company V Curriculum development, Industries limited V Form part of CoE Advisory board * Woiso Shoes Company (50%) * Bora Industries * Ital shoe * TAUMA * JAET Leather Products Ltd * Micro, Small, Medium Enterprises (MSMEs) * Leather Association of Tanzania * Tanzania Leather Products Producers Association (TALEPPA) Table 8: Tanneries (Leather processing) stakeholders Stakeholder Current status Role to play in the project Moshi Tannery Operating to wet-blue V Primary demand for skills and finished leather / Students' industrial attachment Ace Leather Tannery Operating to Finished / guest/visiting lectures, Leather / Curriculum development, Himo Tannery Operating, to finished V Form part of CoE Advisory board leather (50%) Africa Tannery (Mwanza Not operating Tannery) Lake Trade tanners Not operating (Kibaha, Coast Region) Salex Tanneries (Arusha) Not operating Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Stakeholder Current status Role to play in the project Phiss Tanneries LTD Operating, to finished (Bagamoyo, Coast Region) Leather Xhanzhu (Shinyanga) Not operating Afro Leather Industries Not operating (DSM) Table 9: Raw material supply chain Stakeholders Stakeholder Current status Role to play in the project Ranches (e.g. MABUKI) More upcoming ranches Upgrading quality of livestock Abattoirs (e.g. DSM and New investment going into Hides and skins Improvement Dodoma abattoirs, Nyakato abattoirs - Mwanza) TATA Chemical supplier Chemical Supply DESBRO Chemical supplier Chemical Supply 1.2.9 Public sector stakeholders Table 10: Partner Institution Stakeholder Current status Role to play in the project Ethiopian Technical Conduct training, research and / Main partner University (ETU), Ethiopia consultancy on leather and V Staff Skills upgrading leather products technology / Consultancy / Staff Exchange program Leather Industry Conduct training, research and V Main partner Development Institute consultancy on Leather and / Staff Skills upgrading (LIDI) leather products technology / Consultancy V Exchange program Table 11: Regulatory bodies Stakeholder Current status Role to play in the project NACTE low number of accredited institutions in registration and accreditation of leather technologies TVET institutes ERB Low number of Licensed engineers regulating and Licensing engineering activities NEMC Environmental emission chatlenge Monitor and regulation of environmental activities Table 12: Livestock development Institutions Stakeholder Current Status Role to play in the project VETA Dodoma Lack of skills in hides/skins V Improve the quality of hides and skin improvement produced in local abattoirs V Exchange program / Industrial attachment Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 12 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Table 13: Training, Research and development Institutions Stakeholder Current Status Role to play in the project Textile Department- Provide courses on Textile / Student Exchange program CoET technology V Curriculum development V Design and Research VETA Dakawa Low NTA level in leather / Creates demand of graduate in studies lower levels for further studies in footwear and leather goods / Student industrial attachment V Curriculum development SUA Provide training in / Exchange program bioprocessing V Industrial attachment V Curriculum development TIRDO Low number of research in V Research on leather leather TEMDO Financing research on V Research on industry industrial development Table 14: Policy Implementation institutions Stakeholder Current Status Role to play in the project SIDO Support SMEs in industry / Industrial policy implementation sector V Policy implementation V Business development services Table 15: Responsible ministries Stakeholder Current Status Role to play in the project Ministry of Education, Responsible for all higher / Autonomy of the Institutions Science and Technology learning Institutions / Policy formulation V Signatory body Ministry of Industry and Responsible for all / Policy formulation Trade matters relating industry and trade Ministry of Livestock and Responsible for livestock / Policy formulation Fisheries Development development / Signatory body 2.0 PROGRESS ON IMPLEMENTATION OF THE PROJECT The East Africa Skills for Transformation and Regional Integration Project (EASTRIP) was launched and became effective in May 2019, the date during which DIT Mwanza Campus effectively started the implementation of its project activities. Currently, a total of TZS 31,597,655,744 has been received from World Bank up 30 June 2024 which is equivalent to 85% of the total funds expected i.e. TZS 37,017,500,000 (USD 16,250,000 @ TZS 2,278). Out of the received of funds TZS 18,119,795,225 have been utilized to finance the Project 'scheduled activities. A total of TZS 13,280,771,503 remains as cash and cash equivalents as of the closing date, comprising TZS 12,234,157,739 deposited at designated account at Bank of Tanzania, TZS 1,044,325,164 deposited at CRDB Bank, and an unapplied balance Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 13 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP of TZS 2,288,600. This balance has been reduced to TZS 13,258,344,744 due to the expected credit toss. Challenge and recommendations for addressing them. A major challenge which was encountered during the implementation of the project, was on the construction of the five new buildings whereby. * Budget constraint was experienced as a result of global inflation and under-budgeting of some buildings, example, two (2) hostels, for Female and Male students, and a Teaching block, which had to finally be re-scoped. Construction of Experts houses had to be postponed. * Anticipated noise and air pollution due to construction The following were the recommendations on Building Construction, Environmental and Social Safeguard issues. * Rescoping of works by reducing number of buildings, floors, alternatively additional funds need to be solicited for further construction. * Site hoarding during construction and regular machine maintenance to mitigate air and noise pollution. * Proper adherence to Environmental and Social Management Plans (ESMP) Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 14 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 3.0 COMMENTARY ON THE FINANCIAL STATEMENTS 3.1.1 Introduction The Financial Statements for the year 2023/2024 provide a record of the East Africa Skills for Transformation and Regional Integration Project (EASTRIP), Statement of Financial Performance, Statement of Financial Position, Cash Flow Statement, Statement of Change in Net Assets, Statement of Comparison of Budget and Actual Amounts and Notes to the Financial Statements. 3.1.2 Overview Of Financial Statements The Financial Statements present; Statement of Financial Position, Statement of Financial Performance, Statement of Changes in Net Assets, Cash Flow Statement, Statement of Comparison of Budget and Actual amounts, Significant Accounting policies and Notes to the Financial Statements as of 30 June 2024. 3.1.3 Financial Position Financial Position comprises, Receivables, Cash and Cash equivalents, Noncurrent assets, Deferred Income, Payables, Net assets Capital grant and Accumulated surplus. Cash and Cash Equivalents A total of TZS 13,280,771,503 remained as Cash and Cash Equivalents at closing date on 30 June 2024 which comprised of TZS 12,234,157,739 deposited at Designated Account at Bank of Tanzania (BOT) and TZS 1,046,613,764 inclusive of unapplied deposited at CRDB Bank, Nyanza Branch Mwanza. For the year ended 30 June 2023 the balance of cash and cash equivalent was TZS 6,409,258,174. However, with ECL adoption balance is 2024: 13,258,344,744 and 2023: 6,375,367,263 Unapplied deposit account A total of TZS 2,288,600 part of cash and cash equivalents remain as unapplied in CRDB account. This figure includes all unapplied transactions (payments) that banks have refused to honour for a variety of reasons, such as account name mismatches or dormant accounts. Because these transactions were returned to our CRDB expenditure account, the cash balance increased. For the year ended 30 June 2023 the balance was TZS 1,575,600 Receivables A total of TZS 49,377,826 remained as balance of receivables as of 30 June 2024 comprises safari imprest and purchase imprest taken by staff during the year. While for the year ended 30 June 2023 stood TZS 67,231,116 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 15 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Aging Category Outstanding Amount (TZS) 0-30 days 2,960,000.00 61-90 days 1,910,000.00 121-150 days 2,075,000.00 151-180 days 6,851,440.00 181-210 days 4,846,060.00 211-240 days 28,144,000.00 241-270 days 2,591,326.00 Total 49,377,826.00 Payables Payables for the year under review were TZS 1,176,907,076 which include withholding tax and construction retention money. For the year ended 30 June 2023 the balance was TZS 434,678,176. Deferred Income Total funds amounted to TZS 13,021,289,620 was not amortized on 30 June 2024 which include unspent balance project funds receipts from IDA - World Bank. For the year ended 30 June 2023 the balance was TZS 6,151,327,189 Net Assets Net assets were TZS 13,404,704,177 for the year ended 30 June 2024 which is the accumulated surplus. For the year ended 30 June 2023 the balance was TZS 8,875,510,344 Prepayments (Advance Payment) A total of TZS 3,899,575,201 remained as unrecovered outstanding of advance payments that was made to contractor in Phase one and Phase two of the construction. The recovered amount was TZS 1,111,563,282.97 from a total advance payment made to contractor amounting to TZS 5,011,138,484.37. For the year ended 30 June 2023 the balance was TZS 4,406,732,018. Work in Progress A total of TZS 9,879,948,911 stood as Work in progress for the year ended 30 June 2024. For the year ended 30 June 2023 the balance was TZS 4,127,962,538. The increase was the work completed during the year. 3.1.4 Financial Performance Financial Performance comprises of; Subvention from other Government entities, use of goods and services, Employees benefits, Maintenance expenses, Depreciation of property, plant and Equipment, other expenses and social benefits. Controller and Auditor General AR/CG/DIT-MWZ1EASTR P/2023/24 16 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTR1P Gain on Foreign Currency Translation During the year under review, no gain was recorded as translation gains from differences on currency exchange rates compared to TZS 197,926,916 recorded in financial year ended 30 June 2023. Subvention from other government entities During the year under review revenue amount of TZS 6,219,677,564 was amortized compared to the year ended 30 June 2023 were amortized revenue was TZS 9,573,517,251. Wages, salaries, and Employee Benefits Actual costs incurred for the year under review for Wages, Salaries and employee benefits was TZS 211,358,002 compared to TZS 77,488,230 for the year ended 30 June 2023. Use of goods and services During the year under review, actual costs incurred for Use of Goods and Services was TZS 1,276,632,166 while for the year ended 30 June 2023 the expenses was TZS 1,245,906,452. Maintenance Expenses Maintenance expenses for the financial year ended 30 June 2024 amounted to TZS 9,797,341, while for the year ended 30 June 2023, they were TZS 28,056,253. Depreciation of Property, Plant and Equipment The depreciation charged during the financial year ended 30 June 2024 was TZS 62,937,091, while TZS 22,010,457 was charged for the year ended 30 June 2023. Other Expenses During the year, other expenses was TZS 123,443,282, while for the year ended 30 June 2023, the amount incurred was TZS 105,851,271. Social benefits Social benefit expenses incurred during the financial year ended 30 June 2024 was TZS 780,000, while for the financial year the year ended 30 June 2023, the cost incurred was TZS 1,262,770. Surplus/Deficit for the year Surplus for the financial year ended 30 June 2024 was TZS 4,529,193,833, while for the - -year ended 30tJune, 2023, surplus was TZS 8,256,977,822. Controller and Auditor General ARICG/DIT-MWZ/EASTRI P/2023/24 17 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 4.0 STATEMENT OF MANAGEMENT RESPONSIBILITY ON THE EASTRIP FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2024 The Management of the Dar es Salaam Institute of Technology has prepared these financial statements in accordance with the provisions of Sect 25(4) of the Public Finance Act. No 6 of 2001 (Revised 2004). The financial statements as required by the said Act are presented in a manner consistent with the International Public-Sector Accounting Standards (IPSASs) - Accrual Basis of Accounting. The Governing Council of Dar es Salaam Institute of Technology is responsible for establishing and maintaining a system of effective Internal Control designed to provide reasonable assurance that the transactions recorded in the accounts are within the statutory authority and that they contain receipts and uses of all public financial resources by Dar es Salaam Institute of Technology. To the best of my knowledge, the system of Internal Control has operated adequately throughout the reporting period and that the financial statements and underlying records provide a reasonable basis for the preparation of the financial statements for the 2023/2024 financial year. I accept responsibility for the integrity of the financial statements, the information they contain and their compliance with the Public Finance Act No. 6 of 2001 (revised 2004) and instr s issued by Treasury in respect of the year under review. Eng. Dr. Richard J eph Masika' Chairperson of the Governing Council Date: I_o a 2 f Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 18 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 5.0 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 responsible for the preparation of financial statements of the entity concerned. It is the duty of a Professional Accountant to assist the Governing Council and Management to discharge the responsibility of preparing financial statements of an entity showing true and fair view of the entity position and performance in accordance with applicable International Accounting Standards and statutory financial reporting requirements. Full legal responsibility for the preparation of financial statements rests with the Governing Council as under Governing Council Responsibility Statement on the earlier page. I, KUDRA BITESIGIRWE, being the Director of Finance and Accounts of the Dar es Salaam Institute of Technology hereby acknowledge my responsibility of ensuring that financial statements for the year ended 30 June 2024 have been prepared in compliance with International Public Sector Accounting Standards (IPSASs). 1, thus confirm that the financial statements present a true and fair view position of the Dar es Salaam Institute of Technology as on that date and that they have been prepared based on property maintained financial records. Name: Kudra Salim Bitesigirwe Signature: Position: Director of Finance and Accounts NBAA Membership No.: ACPA 4654 Date: -5 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 19 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024 Note TZS TZS 2024 2023 ASSETS Restated Current Asset Cash and Cash Equivalents 62 13,258,344,744 6,375,367,263* Receivables 67 49,377,826 67,231,116 Prepayments 69 3,899,575,201 4,406,732,018 Inventories 70 9,407,098 Total Current Asset 17,216,704,870 10,849,330,397 Non-Current Asset Property, Plant and Equipment 77 508,535,682 485,798,374* Work In Progress 82 9,879,948,911 4,127,962,538 Total Non-Current Asset 10,388,484,593 4,613,760,912 TOTAL ASSETS 27,605,189,463 15,463,091,309 LIABILITIES Current Liabilities Payables and Accruals 89 1,176,907,067 434,678,176 Deferred Income 93 13,021,289,620 6,151,327,189 Deposits 94 2,288,600 1,575,600 Total Current Liabilities 14,200,485,286 6,587,580,965 TOTAL LIABILITIES 14,200,485,286 6,587,580,965 Net Assets 13,404,704,177 8,875,510,344 NET ASSETS/EQUITY Capital Contributed by: Taxpayers/Share Capital Accumulated Surpluses / Deficits 13,404,704,177 8,875,510,344 TOT ETS/EQITY 13,404,704 177 8,875,510,344 Eng. Dr. Richard seph Masika Prof. Preksedis Marco Ndomba Chairperson Rector S ' \\ EQ. ---k_ Date: ... Date................................ Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 20 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP) STATEMENT OF FINANCIAL PERFORMANCE AS AT 30th JUNE 2024 Note TZS TZS REVENUE 2024 2023 Revenue Restated Decrease in excepted credit toss 24 11,464,152 - Gain on Foreign Currency Translation 27 - 197,926,916 Subvention from other Government entities 32 6,219,677,564 9,573,517,251 Total Revenue 6,231,141,716 9,771,444,167 TOTAL REVENUE 6,231,141,716 9,771,444,167 EXPENSES AND TRANSFERS Expenses Wages, Salaries and Employee Benefits 34 211,358,002 77,488,230 Use of Goods and Service 35 1,276,632,166 1,245,906,452 Maintenance Expenses 36 9,797,341 28,056,253 Other Expenses 52 123,443,282 105,851,271 Expected Credit Loss 54 - 33,890,911 Social Benefits 56 780,000 1,262,770 Depreciation of Property, Plant and 77 62,937,091 22,010,457 Equipment Total Expenses 1,684,947,882 1,514,466,344 Transfer Subsidies 58 14,000,000 Grants and Transfers 59 3,000,000 Total Transfer 17,000,000 TOTAL EXPENSES AND TRANSFERS 1,701,947,882 1,514,466,344 Surplus / Deficit 4,529,193,833 8,256,977,822 Eng. Dr. RicharNoseph Masika Prof. Preksedis Marco Ndomba Chairperson Rector Date:. ........................ .... Date: . . ............. ..... .... . THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP CASHFLOW STATEMENT AS AT 30 JUNE 2024 TZS TZS 2024 2023 CASH FLOW FROM OPERATING ACTIVITIES Restated RECEIPTS Subvention from other Government entities 13,089,639,994 7,165,488,250 Revenue Grants - Increase in Deposit 713,000 1,575,600 Total Receipts 13,090,352,994 7,167,063,850 PAYMENTS Wages, Salaries and Employee Benefits 211,358,002 77,488,230 Use of Goods and Service 525,957,083 1,213,147,040 Subsidies 14,000,000 - Social Benefits 780,000 1,262,770 Other Expenses 123,443,282 105,851,271 Maintenance Expenses 9,797,341 28,056,253 Grants and Transfers 3,000,000 - Total Payments 888,335,708 1,425,805,564 NET CASH FLOW FROM OPERATING ACTIVITIES 12,202,017,285 5,741,258,286 CASH FLOW FROM INVESTING ACTIVITIES Investing Activities Payment for Work in Progress (5,751,986,373) (2,817,294,783) Advance Payment for Acquisition of Property Plant and 507,156,817 (5,011,138,484) Equipment Acquisition of Property, Plant and Equipment (85,674,400) (319,278,421) Total Investing Activities (5,330,503,956) (8,147,711,688) NET CASH FLOW FROM INVESTING ACTIVITIES (5,330,503,956) (8,147,711,688) Net Increase 6,871,513,329 (2,406,453,402) Cash Surrendered to Holding Account Effect of Foreign Currency Changes - 197,926,916 Cash and cash eq vatent at beginning of period 6,409,258,174 8,617,784,660 eq ivalent at end of period 13,280,771,503 6,409,258,174 Eng. Dr. Rich d Joseph Masika Prof. Preksedis Marco Ndomba Chairperson Rector Date:... .......................... Date: ..... .................... Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 22 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP STATEMENT OF CHANGES IN NET ASSETAND EQUITY AS AT 30th JUNE 2024 Opening Balance as at 01 Jul 2023 - 8,875,510,344 8,875,510,344 Addition Capital Injected Other Reserve Other Appropriations Minority Interest Surplus/ Deficit for the Year - 4,529,193,833 4,529,193,833 Closing Balance as at 30 Jun 2024 - 13,404,704,177 13,404,704,177 Opening Balance as at 01 Jul 2022 - 618,532,521 618,532,521 Addition Capital Injected Other Reserve Other Appropriations Minority Interest Surplus/ Deficit for the Year - 8,256,977,822 8,256,977,822 Closing Balance as at 30 Jun 2023 - 8,875,510,344 8,875,510,344 Eng. Dr. Richar)oseph Masika Prof. Preksedis Marco Ndomba Chairperson Rector Date: ................................ Date : ..................................... 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Box 2525, Mwanza Institute Bankers Bank of Tanzania, P.O Box 2939, Dar es Salaam, Tanzania CRDB Bank PLC, Nyanza Branch, P.O. Box 5185, Mwanza. Institute Auditors The Controller and Auditor General, National Audit Office, Audit House, 4 Ukaguziroad, P.o.Box 950, 41104 Tambukareti Dodoma, Tanzania Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 27 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 6.2 STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION The Financial statements are prepared in accordance with International Public Sector Accounting Standards (IPSAS-Accrual Basis of Accounting) and comply with the Public Finance Act, 2001 (Revised 2020). The financial statements have been prepared on the basis of historical cost basis, unless stated otherwise. The cash flows statement is prepared using the direct method. The financial statements are prepared on an accrual basis. 6.3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES JUDGMENTS, ESTIMATES AND ASSUMPTIONS The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated. 6.3.1 Cash and Cash Equivalents Cash and Cash Equivalents comprise deposits held with bank. 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. 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 Entity operates with the following Banks with global ratings and Probability of Default (PD) as provided in the table below. Rating IProbability of No Name of the Bank aenc Score Default (D Agency Default (PD) 1 CRDB PLC Moody's B2 2.16% 2 Bank of Tanzania (BoT) N/a N/a N/a Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 28 . . .. .. . . . .. .. .. .. .. .. . .. .. .. .. ._ . .. .. .. .. .. . .. THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP DESCRIPTION CASH AND BANK ACCUMULATED REASON BALANCE SURPLUS FINANCIAL YEAR 2022/2023 6,607,185,090 8,803,141,168 EXPECTED CREDIT LOSS 33,890,911 33,890,911 Change in Accounting Policy RESTATED BALANCE 6,573,294,179 8,769,250,257 Change in Accounting Policy Financial Assets Initial and Subsequent Measurement Financial assets are initially measured at fair value and subsequently measured as per following criteria: i. The management model within which the Financial Asset is held. Classification of Financial Assets Classification is based on the criteria mentioned above, as a result the following classes of financial instruments arise namely; i. Financial assets at Amortized Cost, ii. Financial asset at Fair Value through Net asset/ Equity, and iii. Financial asset at Fair Value through Surplus or Deficit. Financial Assets at Amortized cost Financial Assets are subsequently measured at Amortized Cost if both of the following conditions are met; i.The financial asset is held within a management model whose objective is to hold financial assets to collect contractual cash flow and ii.The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of outstanding amount This includes cash and cash equivalent Impairment of financial assets The impairment of financial asset is calculated using expected credit losses model. The Entity recognizes loss allowances (Expected Credit Losses (ECL)} on all financial assets. A loss aLlowance is calculated at each reporting date however, the ECL model is updated on annual basis to accommodate any event that might cause significant increase in credit risks on financial asset. The term 'expected credit loss' does not imply that losses are anticipated, rather that there is recognition of the potential risk of Loss. Determining whether an expected credit loss should be based on 12-month expected credit losses or lifetime expected credit losses depends on whether there has been a significant increase in credit risk of the financial asset since initial recognition. Controller and Auditor General AR/CG/DIT-MWZ/EA5TRIP/2023/24 29 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Loss allowances for ECL are presented in the statement of financial position as follows: Financial assets measured at amortized cost: as a deduction from the gross carrying amount of the assets; Inputs into measurement of ECLs The key inputs into the measurement of ECLs are the discounted product of: probability of default (PD), loss given default (LGD) and exposure at default (EAD). The PD represents the likelihood of a bank defaulting on its financial obligation (as per "Definition of default and credit-impaired" above), either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation. EAD is based on the amounts the Entity expects to be owed at the time of default, over the next 12 months (12M EAD) or over the remaining lifetime (Lifetime EAD). Loss Given Default (LGD) represents the Bank's expectation of the extent of loss on a defaulted exposure. LGD is expressed as a percentage loss per unit of exposure at the time of default (EAD). LGD is calculated on a 12-month or lifetime basis, where 12- month LGD is the percentage of Loss expected to be made if the default occurs in the next 12 months and Lifetime LGD is the percentage of loss expected to be made if the default occurs over the remaining expected lifetime of the deposit. Historical analysis Cash and Cash Equivalent 2024 2023 Cash at Bank and on hand 13,280,771,503 6,409,258,174 Expected Credit Loss: Opening 33,890,911 - Charged during the year (11,464,152) 33,890,911 Closing 22,426,759 33,890,911 Cash as per Statement of Net Asset 13,258,344,744 6,375,367,263 Analysis of Cash and Cash Equivalent For the purpose of the statement of cash flows, cash and cash equivalent comprises of the following balances with less than 12 months maturity from the date of acquisition 2024 2023 Cash as per Statement of Financial Position 13,258,344,744 6,375,367,263 Expected Credit Loss 22,426,759 33,890,911 Gross Cash and Cash Equivalent 13,280,771,503 6,409,258,174 Moreover, the Entity operates with CRDB Bank with current global ratings of B2 from Moody's, which gives Probability of Default (PD) of 2.16% Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 30 .j. . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP De-recognition financial assets The Entity derecognizes a financial asset when: a. The contractual rights to the cash flows from the financial asset expire; or b. It transfers the rights to receive the contractual cash flows in a transaction in which either: * substantially all of the risks and rewards of ownership of the financial asset are transferred; or * The Entity neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. When The Entity enters into transactions whereby it transfers assets recognized in its statement of financial position but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized. Financial liabilities Recognition Financial liabilities are recognized when the Entity has contractual obligation to deliver cash as a result of goods or services received. Measurement Financial liabilities are initially measured at fair value and net gains and losses, including any interest expense, are recognized in surplus or deficit. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in surplus or deficit. Any gain or loss on de-recognition is also recognized in surplus or deficit. De-recognition The Entity derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The Entity also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On de-recognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in surplus or deficit. | Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 31 .- .... ...... THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 6.3.2 Revenue Recognition The Project receives its revenue from IDA- World Bank and revenue is accounted for on accrual basis. Loan from the World Bank is revenue from non-exchange transactions and are recognized in the financial statements when it is probable that future economic benefit will flow to the project and if those benefits can be reliably measured. IPSAS 23 Para 44 required that an inflow of resources from a non-exchange transaction recognized as an asset shall be recognized as revenue, except to the extent that a liability is also recognized in respect of the same inflow. Loan is recognised as income when such loan have been received and expensed to match expenditure incurred with Loan received. 6.3.3 Expenses Expenses are decreases in economic benefits or service potential during the reporting year in the form of outflows or consumption of assets or incurrence of liabilities that result in decreases in net assets and are recognized on an accrual basis when goods are delivered and services are rendered, regardless of the terms of payment. 6.3.4 Payables and Accruals Accounts payable include invoices received from suppliers not yet settled are valued at fair value through. Accruals are liabilities for the cost of goods and services that have been received by or provided to the Project during the year, and which have not been invoiced by suppliers at the reporting date. 6.3.5 Deferred Income These are unspent fund of EASTRIP activities at the year end. 6.3.6 Provisions Provisions are recognized when the Project has a present obligation (Legal or Constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Project expects some or all of a provision to be reimbursed, the expense relating to any provision is presented in surplus or deficit net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current rate that reflects where appropriate the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. 6.3.7 Taxes The project being a government project is exempted from tax on the surplus/deficits for the year. Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 32 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 6.3.8 Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the disclosed amounts of assets within the next financial year are depreciation of assets and amortization of assets. Impairment of Cash balances in Bank the project reviews its financial assets measured at amortised cost at each reporting date to assess whether an impairment loss should be recognised in surplus or deficit. In particular, judgment by the Entity Management is required in the estimation of the amount when determining the Level of impairment loss required. 6.3.9 Depreciation rates The policy relating to depreciation charge is adopted from the Public Asset Management Guidelines using a straight line to write off the cost of each asset value over its estimated useful life at a given rate per annum as listed below: * Motor vehicles - 10% * Computer - 12.5% * Furniture and Fittings - 10% * Safe (Equipment) - 10% Effect of Change in Depreciation Estimates For the financial year 2023/24 the project adopted new estimates of assets useful life. Thus, led to financial statement restate as the adoption was retrospectively. Audited Restated Reason 2022/23(TZS) 2022/23(TZS) Statement of Financial Position Cash and Cash 6,409,258,174 6,375,367,263 Effect of IPSAS 41as ECL for Equivalents the year was TZS 33,890,911 Property, Plant and 379,538,287 485,798,374 Change of Useful life Equipment Accumulated Surpluses 8,803,141,168 8,875,510,344 / Deficits I Statement of Financial Performance Depreciation of 107,445,587 22,010,457 Change of Useful life Property, Plant and Surplus / Deficit 8,205,433,603 8,256,977,822 6.3.10 Risk Management The Project is subject to a number of financial risks: foreign currency risk. i) Foreign Currency Risk The project's exposure to foreign exchange risks arises from purchases, assets and liabilities denominated in currency other than the functional currency and translation Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 33 - ~ ~ ~ ~~~~ ..........-- _ __ __ - __ THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP of transactions during reporting. As a result, the Project is subject to transaction and translation exposure from fluctuations in foreign currency exchange rates; ii) Economic Environment Risk Risks related to Project's economic environment. Factors to consider include: Inflation and Foreign exchange fluctuations. iii) Political environment Risk Risks emanating from political factors and decisions that have an impact on the Project's mandate and operations, possible factors to consider include: political pressure; Local, Provincial and National elections; and Changes in office bearers. iv) Human resources Risk Risks that relate to human resources of the Project, these risks can have an effect on the Project's human capital with regard to: Integrity and honesty; Employee wellness; Employee relations and Retention. v) Credit Risk Credit risk refers to the loss due to the non-performance by counter parties to discharge an obligation. The Project is subjected to risk of its balances of cash in Commercial bank (CRDB). Total Cash in the Banks to which the Entity is exposed to credit risk as of 30 June 2024 with its comparative figures are presented in the table below according to the classification of assets: Ratings Description 2024 2023 CRDB Bank B2 B2 Credit quality Credit quality per class of financial assets. The table below shows the quality by class of asset for all financial assets exposed to credit risk, based on the Entity's credit rating system. The amount presented is gross of impairment allowances. 30.06.2024 Description Stage 1 Stage 2 Stage 3 Tota Cash a Cash Equivalent 13,280,771,503 0 0 13,280,771,503 Total 1 13,280,771,503 0 0 13,280,771,503 30.06.2023 Description Stage 1 Stage 2 Stage 3 Total Cash a Cash Equivalent 6,409,258,174 0 0 6,409,258,174 Total 6,409,258,174 0 0 6,409,258,174 Controller and Auditor General AR/CG/DIT-MWZ/EA5TRIP/2023/24 34 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECTAfEASTRIP Movement in Expected Credit Loss allowance The following tables explain the changes in the loss allowance between the previous period and the current reporting period due to change in credit risk factors: Cash and Cash Equivalent: Description Stage 1 Stage 2 Stage 3 Loss Attowance as at 30 June 2023 33,890,911 0 0 New Financial Assets Originated/Purchased (11,464,152) 0 0 Financial Asset derecognised 0 0 0 Change in risk parameters 0 0 0 Loss Allowance as at 30 June 2024 22,426,759 0 0 vi)Procurement Risk Risks relating to the Project material resources, possible aspects to consider include: Availability of material; Costs and means of acquiring/procuring resources; and the wastage of material resources. Controls in place are as Transparency method, identifying the needs, developing specifications, contract documents, negotiating the contract, management the contract, evaluating offers, identifying the preferred supplier and selecting a procurement method. 7.0 FUTURE CHANGES IN ACCOUNTING POLICIES The Entity assesses and intends to adopt these standards when they become effective. IPSAS 43 - Leases: IPSASB approved IPSAS 43, Leases with an effective date of January 1, 2025. IPSAS 43 supersedes IPSAS 13, Leases and introduces the right-of-use model for lessees, aligning with IFRS 16, Leases. The IPSASB will continue consideration of public sector specific leasing issues, such as concessionary leases, in its Other Lease-Type Arrangements project. The entity is currently assessing the impact of the standard. IPSAS 44- Non-current Assets Held for Sale and Discontinued Operations: In May 2022 IPSASB issued IPSAS 44 that specifies the accounting for assets held for sale and the presentation of discontinued operations. It requires 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 * Presented separately in the statement of financial position and results of discontinued operations to be presented separately in the Statement of financial performance. IPSAS 44 will be effective for periods beginning on or after January 1, 2025. IPSAS 45 - Property, Plant and Equipment: This standard provides guidance on accounting for Property, Plant and Equipment so that users of Financial Statements can discern information about an entity's investment in its PPE and the changes in such investment. The standard applies to PPE used to develop or maintain the biological Controller and Auditor General ARICG/DIT-MWZIEASTRIP12023124 35 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP assets related to agricultural activity other than bearer plants, Mineral rights and mineral reserves such as oil, natural gas and similar non-regenerative resources and the recognition and measurement of exploration and evaluation assets. IPSAS 45 removed IPSAS 17's scope exclusion of Heritage Asset. This standard will be effective on 1 January 2025 with earlier application permitted IPSAS 46- Measurement. The objective of this Standard is to define measurement bases that assist in reflecting fairly the cost of services, operational capacity and financial capacity of assets and liabilities. The Standard identifies approaches under those measurement bases to be applied through individual IPSAS to achieve the objectives of financial reporting. An entity that prepares and presents financial statements under the accrual basis of accounting shall apply IPSAS 46, Measurement in measuring assets and liabilities. The measurement requirements described in this Standard apply to both initial and subsequent measurement, unless specific guidance is included in the individual IPSAS. IPSAS 46 will be effective for periods beginning on or after January 1, 2025. IPSAS 47- Revenue. IPSAS 47 is a single source for revenue accounting guidance in the public sector, which presents two accounting models based on the existence of a binding arrangement. This new Standard provides focused guidance to help entities apply the principles to account for public sector revenue transactions. IPSAS 47 is a single source for revenue accounting guidance in the public sector, which presents two accounting models based on the existence of a binding arrangement. This new Standard provides focused guidance to help entities apply the principles to account for public sector revenue transactions. To meet this objective requires an entity to consider the terms of the transaction, and all relevant facts and circumstances, to determine the type of revenue transaction and set out the accounting requirements to account for the revenue transaction. IPSAS 47 will be effective for periods beginning on or after January 1, 2026 IPSAS 48: Transfer Expenses. The objective of this standard is to establish the principles that a transfer provider (an entity) shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of expenses and cash flow arising from transfer expense transactions. In order to meet the objective, This Standard requires an entity to consider the terms of the transaction and all relevant facts and circumstances to determine the type of transfer expense transaction and sets out the accounting requirements for the transfer expense transaction. IPSAS 48 will be effective for periods beginning on or after January 1, 2026. IPSAS 49: Retirement Benefit Plans. The objective of this standard is to prescribe the accounting and reporting requirements for public sector retirement benefit plans, which provide retirement benefits to public sector employees and other eligible participants. IPSAS 49 will be effective for periods beginning on or after January 1, 2026. Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24; 36 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP IFRS S1: The objective of IFRS S1 (General Requirements for Disclosure of Sustainability related Financial Information) is to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to primary users of general- purpose financial reports in making decisions relating to providing resources to the entity. The Standard requires an entity to disclose information about all sustainability- related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium or long term. This Standard also prescribes how an entity prepares and reports its sustainability- related financial disclosures. It sets out general requirements for the content and presentation of those disclosures so that the information disclosed is useful to primary users in making decisions relating to providing resources to the entity. IFRS S2: The objective of IFRS S2 (Climate-related Disclosures) is to require an entity to disclose information about its climate-related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions relating to providing resources to the entity. The Standard requires an entity to disclose information about climate-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium or long term. Climate-related risks to which the entity is exposed includes climate-related physical risks and climate-related transition Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 37 . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . .. . . . . THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP NOTES TO THE FINANCIAL STATEMENT AS AT 30th JUNE, 2024 2024 2023 TZS TZS Restated 24 - Fair value Gains on Financial Asset Decrease in ECL 11,464,152 11,464,152 27 - Gain on Foreign Currency Translation Foreign Exchange differences (Gain) - Monetary - 197,926,916 - 197,926,916 32 - Subvention from other Government entities Subvention Development Foreign 6,219,677,564 9,573,517,251 6,219,677,564 9,573,517,251 34 - Wages, Salaries and Employee Benefits Casual Labour Expenses 908,726 Casual Laborers - 80,000 Facilitation Allowance Expenses -employee 5,860,000 50,475,959 Food and Refreshment 66,304,435 21,512,445 Fuel Allowance 21,714,617 Honoraria 12,390,000 Outfit Allowance 1,292,000 200,000 Professional Allowances 29,809,000 - Sitting Allowance 4,000,000 Telephone ALlowance 9,840,000 Transport Expenses 56,362,950 - Uniform Allowance 3,785,000 4,311,100 211,358,002 77,488,230 35 - Use of Goods and Service Advertising and publication - 5,115,000 Advertising and Publication - Communication Et 43,384,000 1,000,000 Information Controller and Auditor General AR/CG/DiT-MWZ/EASTRiP/2023/24 38 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Air Travel Tickets Training - Domestic 57,959,120 18,999,756 Air Travel Tickets Training - Foreign 23,224,605 - Air Travel Tickets Travel - In - Country 30,877,500 59,820,314 Air Travel Tickets Travel Out of Country 57,322,215 35,301,347 Books, Reference and Periodicals - 2,505,342 Classroom Teaching Supplies 3,086,000 12,400,000 Computer Supplies and Accessories 330,000 Conference Facilities 41,508,318 25,154,496 Diesel 16,595,040 12,176,096 e Training Materials - 1,718,000 Electricity - Utilities Supplies and Services 3,040,000 - Exhibition, Festivals and Celebrations - 34,339,960 Food and Refreshments 13,000,000 53,982,500 Furniture and Appliances - 400,000 Ground Transport (Bus, Train, Water) 22,379,200 58,782,478 Ground travel (bus, railway taxi, etc) Travel - In - 23,707,190 87,183,830 Country Ground travel (bus, railway taxi, etc) Travel Out Of 24,618,950 1,982,000 Country Health Insurance Training - Foreign 2,000,000 4,489,683 . Internet and Email connections 1,220,709 1,500,000 Laboratory small non-durable equipment - 3,361,630 Lodging/Accommodation Travel - In - Country 17,900,050 - Mobile Charges 9,500,000 Office Consumables (papers, pencils, pens and 13,718,900 24,379,900 stationaries) Operations and Training Fuel 21,046,076 Per Diem - Domestic 395,434,375 351,189,682 Per Diem - Foreign 127,835,336 113,935,310 Printing and Photocopy paper 470,000 - Printing Material 1,200,000 - Production and Printing of Training Materials - 24,459,750 Protective Clothing, footwear and gears 1,700,000 Publicity - 47,581,730 Research and Dissertation Training - Domestic 34,614,000 20,594,459 Research and Dissertation Training - Foreign 20,000,000 Controller and Auditor General AR/CG/DIT-MWZIEASTRIP/2023/24 39 .. . . . . . . . . . . . . . . . . . . THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EA.STRIP Subscription Fees 8,000,000 Tapes, Films, and Materials (split) - 1,401,544 Technical Materials 92,248,732 1,254,000 Training Aids 560,600 Training Allowances - 11,570,000 Training Materials 9,274,670 - Tuition Fees Training - Domestic 32,588,500 22,853,435 Tuition Fees Training - Foreign 68,270,925 54,963,784 Upkeep Allowances 26,932,225 77,484,460 Upkeep/ Stipend Allowance 64,600,000 27,956,250 Visa Application Fees 3,490,090 5,979,117 Water Charges 3,085,440 - 1,276,632,166 1,245,906,452 36 - Maintenance Expenses Direct labour (contracted or casual hire) - - 11,546,600 Vehicles and Transportation Equipment Motor Vehicles and Watercraft 7,782,527 Panel and body shop repair materials and 5,427,126 services Repair and Maintenance of Furniture 9,797,341 550,000 Tyres and Batteries - 2,750,000 9,797,341 28,056,253 52 - Other Expenses Agency fees 41,239,382 Audit fees Expenses 31,020,000 31,140,000 Bank Charges and Commissions - 899,470 Car Wash 2,949,500 - consultancy fees 48,234,400 - Registration Fees Expenses - 326,284 Sundry Expenses - 73,485,518 123,443,282 105,851,271 Controller and Auditor General ARICG/DIT-MWZ/EASTRIP/2023/24 40 -. ~ ~~ ~ ....... .- .. . .___.__.__.................._ _________.__......- - THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 54 - Expected Credit Loss Expected Credit Loss - 33,890,911 - 33,890,911 56 - Social Benefits Health Costs -Employee 780,000 - Settlement of Medical Treatment Claims - 1,262,770 780,000 1,262,770 58 - Subsidies Deposit Insurance Board 14,000,000 14,000,000 59 - Grants and Transfers National Council for Technical Education 3,000,000 (NACTE) 3,000,000 62 - Cash and Cash Equivalents Development Expenditure Cash Account 1,044,325,164 1,574,948,046 Provision for ECL (Cash) (22,426,759) (33,890,911) Unapplied Cash Account 2,288,600 1,575,600 USD BOT Collection Account 12,234,157,739 4,832,734,528 13,258,344,744 6,375,367,263 67 - Receivables Imprest Receivable - Staff 49,377,826 67,231,116 49,377,826 67,231,116 69 - Prepayments Prepayments Assets - Monetary 3,899,575,201 4,406,732,018 3,899,575,201 4,406,732,018 70 - Inventories Consumables 9,407,098 9,407,098 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 41 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 94 - Deposits Unapplied Deposit Account Addition 2,288,600 1,575,600 2,288,600 1,575,600 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 42 шо оо иоо orv °о �°о°о n � 3 м о �°°о о 00 ао оо_� о „� � � У О N о� �О - . > N � м.О � с0 vj О О О� о0 � У N ^ � р р� � М О N О� �D О�_ ^ д ti м N W 1� � � 7'7 N^� � . ,., � ,° г > � v ш z о voo �t � о � о о � i о м гч о о о и м о м м о � � 1� м О О О N и м�t � � �О � ,.., ^ � и о !� О 1� м и О � С N со м со � `� д � � й'V О м - � i � N N оо оо � о �О � м � г`•� 1 � N а� г�i .- г� � м � •� о о , а � � о � о � о о � � м о й .ио ом о � - А о м rnoo о� ��м .�ой�`Vг, о С � Ш о� �О ro и 0 . о n .�- � О р �� р, Q У L р� ��--. �.j � П1 N ' • •� v v й rn о � и� N i � и N � t� м � i �-�i а .L и •NO N о й о о й а р ш +-+ N и .о о � а а � о о � .о г� ,п и � � ~ rn � й и г ш � о � � а Q � L � N i v 3 Е и о i NI l7 � i м ., м � Q N � а � а�� и `�O °о �Oо°о °� о°о �°о°о °O � г о � N � м�� `о и .о м о � I� �} ^ г� м и о � N о м � о `� I й � О� О °о �°о Г � N и и со О � � Ш 1 , р J г м м � � N и' � г О �t � и � I т О О 1� О О О 1� м � � ш oJ О с0 О О N, рр � W F � М о0 � О О_ О м О О О г- l7 � � IL D !V N и N О о0 � О N О О N U' � 0 р� о о0 1� V N О г,.� рЛ с0 .С1 О О_ �' а' Ш Ш а N N О N О� О � С и О� м о а F- Н г `о � v м� � �' j й .ил й ои ^ г� р о "' о г� I ш�� м � С L м .°°о со v и�^ га N � i Н г Сх[ о о О О О О о О ++ } м � �[!F-.? 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Г Г U Q гио ° ° � � а� ти � � ш"' �`� а, а О р ° s� ZZ � �+, У � � '_' �и а� � + ш о 'а �г �у ° � � и го Q ° � с и v �р и�а и � о О �п и Ф •° � г� ov� '^� v � � � � ш О Q +� � � й��� Q ш >° и-� ��Q ш`�' � v � � и .f� � wQ � °. � iЧ�- р� � С; р о ,� ш � р ° Е v � ,� `.~ � '� �'� а =U а а°; о �_ооа ,�� �_а v о Е а � а й `° ш� р��' г� и о и ,� +� • И й w > О Н р и � � "° 'м � �+ � 0 .i +' ш ш ш�О NZ N и �. � го.� с и� � г р о о_Н �а р аат т1- w а� � !.........1 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION ANQ REGIONAL INTEGRATION PROJECT (EASTRiP 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 4,529,193,833 8,256,977,822 Add/ (Less) Non-Cash Item Depreciation of Property, Kant and Equipment 62,937,091 22,010,457 Expected Credit Loss Impairment 0 33,890,911 Fair value Gains on Assets and Liabitities (11,464,152) 0 Gain on Foreign Currency Translation 0 (197,926,916) Add/ (Less) Change in Working Capital. Deferred Income 6,869,962,430 (2,408,029,001) Inventories (9,407,098) 0 Other Receipt 713,000 1,575,600 PayabLes and AccruaLs 742,228,891 600,533 Receivables 17,853,290 32,158,880 Net Cash Flow from Operating Activities 12,202,017,285 5,741,258,286 .... ......... - . . ............. . . . 4 6 troller and Auditor General AR/CG/DIT-MWZ/EASTRIP12023/241 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Note 1 B - Trial Balance STANDARD TRIAL BALANCE REPORT FOR THE PERIOD ENDED 30th JUNE, 2024 TZS TZS 13465102 Subvention Development Foreign 0.00 6,219,677,563.67 14250118 Reversal of provision for 0.00 11,464,152.00 impairment of Receivables (ECL) 21113113 Outfit Allowance 1,292,000.00 0.00 21113114 Sitting Allowance 4,000,000.00 0.00 21113126 Professional Allowances 29,809,000.00 0.00 21113127 Uniform Allowance 3,785,000.00 0.00 21113135 Telephone Allowance 9,840,000.00 0.00 21113144 Facilitation Allowance Expenses - 5,860,000.00 0.00 employee 21114101 Honoraria 12,390,000.00 0.00 21121103 Food and Refreshment 66,304,435.00 0.00 21121111 Fuel Allowance 21,714,617.30 0.00 21121112 Transport Expenses 56,362,950.00 0.00 22001101 Office Consumables (papers, 13,718,900.00 0.00 pencils, pens and stationaries) 22001103 Printing and Photocopy paper 470,000.00 0.00 22002101 Electricity - Utilities Supplies and 3,040,000.00 0.00 Services 22002102 Water Charges 3,085,440.00 0.00 22003102 Diesel 16,595,039.79 0.00 22003113 Operations and Training Fuel 21,046,075.93 0.00 22007109 Conference Facilities 41,508,318.24 0.00 22008102 Tuition Fees Training - Domestic 32,588,500.00 0.00 22008108 Training Materials 9,274,670.00 0.00 22008109 Air Travel Tickets Training - 57,959,120.00 0.00 Domestic 22008110 Ground Transport (Bus, Train, 22,379,200.00 0.00 Water) 22008111 Research and Dissertation 34,614,000.00 0.00 Training - Domestic 22008117 Upkeep/ Stipend Allowance 64,600,000.00 0.00 22009101 Air Travel Tickets Training - 23,224,605.00 0.00 Foreign .-- . . . . . 4 7 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRAT1ON PROJECT (EASTRiP 22009102 Tuition Fees Training - Foreign 68,270,925.00 0.00 22009103 Upkeep Allowances 26,932,225.00 0.00 22009105 Health Insurance Training - 2,000,000.00 0.00 Foreign 22010101 Air Travel Tickets Travel - In - 30,877,500.00 0.00 Country 22010102 Ground travel (bus, railway taxi, 23,707,190.00 0.00 etc) Travel - In - Country 22010104 Lodging/Accommodation Travel - 17,900,050.00 0.00 In - Country 22010105 Per Diem - Domestic 395,434,375.00 0.00 22011101 Air Travel Tickets Travel Out of 57,322,215.00 0.00 Country 22011102 Ground travel (bus, railway taxi, 24,618,950.00 0.00 etc) Travel Out Of Country 22011105 Per Diem - Foreign 127,835,336.00 0.00 22011106 Visa Application Fees 3,490,090.00 0.00 22012101 Internet and Email connections 1,220,708.97 0.00 22012105 Advertising and Publication - 43,384,000.01 0.00 Communication Et Information 22013103 Classroom Teaching Supplies 3,086,000.00 0.00 22013106 Technical Materials 92,248,732.00 0.00 22014104 Food and Refreshments 13,000,000.00 0.00 22016101 Printing Material 1,200,000.00 0.00 22024109 Repair and Maintenance of 9,797,341.26 0.00 Furniture 23140101 Motor vehicles, Depreciation 53,524,118.70 0.00 23150102 Hardware: servers and equipment 7,419,772.50 0.00 (inct. desktops, laptops etc.) Depreciation 23150107 Other equipment and 1,002,000.00 0.00 installations Depreciation 23160102 Office Furniture Depreciation 991,200.00 0.00 25120102 Deposit Insurance Board 14,000,000.00 0.00 26311269 National Council for Technical 3,000,000.00 0.00 Education (NACTE) 27310103 Health Costs -Employee 780,000.00 0.00 ...trol .... .......... i. . General . ...-.... -. -48 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 28520201 Audit fees Expenses 31,020,000.00 0.00 28520203 Agency fees 41,239,382.00 0.00 28520204 consultancy fees 48,234,400.00 0.00 28520332 Car Wash 2,949,500.00 0.00 31121101 Motor vehicles, Monetary 535,241,187.10 0.00 31122102 Hardware: servers and equipment 45,075,800.00 0.00 (incL. desktops, laptops etc.) Monetary 31122107 Other equipment and 10,020,000.00 0.00 installations Monetary 31122108 Computers and Photocopiers 14,282,380.00 0.00 Monetary 31122109 Printers and Scanners Monetary 108,020.00 0.00 31122130 Office Furniture Monetary 9,912,000.00 0.00 31221101 Consumables 9,407,098.06 0.00 31710110 Other Structure - WIP Monetary 9,879,948,910.89 0.00 32171120 Imprest Receivable - Staff 49,377,826.00 0.00 32171202 Prepayments Assets - Monetary 3,899,575,201.40 0.00 33181102 Supplies of goods and services 0.00 62,160,000.00 Addition 33181108 Unapplied Deposit Account 0.00 2,288,600.00 Addition 33181110 Retention Payable Addition 0.00 1,143,979,832.65 33181188 Settlement of Supplier Debts 31,140,000.00 0.00 33182107 Withholding tax 0.00 468,802.24 33182154 Withholding Tax Payable Addition 0.00 1,438,431.68 33191111 Deferred Subvention Capital 0.00 13,021,289,619.71 61465101 Motor vehicles, Accumulated 0.00 92,857,432.30 Depreciation 61466102 Hardware: servers and equipment 0.00 9,294,772.50 (inct. desktops, laptops etc.) Accumulated Depreciation 61466107 Other equipment and 0.00 2,106,000.00 installations Accumulated Depreciation 61466130 Office Furniture Accumulated 0.00 1,845,500.00 Depreciation S.............--.- - 49 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP 62123114 Development Expenditure Cash 1,044,325,164.07 0.00 Account 62123124 Unapplied Cash Account 2,288,600.00 0.00 62123143 USD BOT Collection Account 12,234,157,739.23 0.00 62123231 Provision for ECL (Cash) 0.00 22,426,759.00 63293101 Accumulated Surplus/Deficit 0.00 8,875,510,343.70 Opening 29,466,807,809.45 29,466,807,809.45 Note 2B - Extended Notes (Cash flow notes) NOTES - CASH FLOW STATEMENT FOR THE PERIOD ENDED 30th JUNE, 2024 2024 2023 103 - Advance Payment for Acquisition of Property Plant and Equipment Prepayments Assets - Monetary 507,156,817 (4,406,732,018) Payment 507,156,817 (4,406,732,018) Payment 507,156,817 (4,406,732,018) 105 - Receipts from Sales of Property, Plant and Equipment 0 0 Payment 0 0 Payment 0 0 106 - Payment for Work in Progress 0 0 Other Structure - WIP Monetary (5,751,986,373) (3,824,638,892) Payment (5,751,986,373) (3,824,638,892) Payment (5,751,986,373) (3,824,638,892) 15 - Tax Revenue 0 0 Revenue 0 0 Revenue 0 0 16 - Revenue Grants C l . . . ................... . ...- 50 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Revenue 0 0 Revenue 0 0 32 - Subvention from other Government entities 0 0 Subvention Development Foreign 6,219,677,564 9,573,517,251 Revenue 6,219,677,564 9,573,517,251 Add/Less (Change in Working Capital) Deferred Subvention Capital 6,869,962,430 (2,408,029,001) 6,869,962,430 (2,408,029,001) Receipt 13,089,639,994 7,165,488,250 34 - Wages, Salaries and Employee Benefits Casual Labor Expenses 0 908,726 Casual Laborers 0 80,000 Facilitation Allowance Expenses - 5,860,000 50,475,959 employee Food and Refreshment 66,304,435 21,512,445 Fuel Allowance 21,714,617 0 Honoraria 12,390,000 0 Outfit Allowance 1,292,000 200,000 Professional Allowances 29,809,000 0 Sitting Allowance 4,000,000 0 Telephone Allowance 9,840,000 0 Transport Expenses 56,362,950 0 Uniform Allowance 3,785,000 4,311,100 Expenses 211,358,002 77,488,230 Expenses 211,358,002 77,488,230 35 - Use of Goods and Service Advertising and publication 0 5,115,000 Advertising and Publication - 43,384,000 1,000,000 Communication Et Information Air Travel Tickets Training - 57,959,120 18,999,756 Domestic tA- 51 Cotroller and Auditor General AR/CG/DIT-MWZ/EASTRIP/032 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFICA.SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Air Travel Tickets Training - Foreign 23,224,605 0 Air Travel Tickets Travel - In - 30,877,500 59,820,314 Country Air Travel Tickets Travel Out of 57,322,215 35,301,347 Country Books, Reference and Periodicals 0 2,505,342 Classroom Teaching Supplies 3,086,000 12,400,000 Computer Supplies and Accessories 0 330,000 Conference Facilities 41,508,318 25,154,496 Diesel 16,595,040 12,176,096 e Training Materials 0 1,718,000 Electricity - Utilities Supplies and 3,040,000 0 Services Exhibition, Festivals and 0 34,339,960 Celebrations Food and Refreshments 13,000,000 53,982,500 Furniture and Appliances 0 400,000 Ground Transport (Bus, Train, 22,379,200 58,782,478 Water) Ground travel (bus, railway taxi, 23,707,190 87,183,830 etc) Travel - In - Country Ground travel (bus, railway taxi, 24,618,950 1,982,000 etc) Travel Out Of Country Health Insurance Training - Foreign 2,000,000 4,489,683 Internet and Email connections 1,220,709 1,500,000 Laboratory small non-durable 0 3,361,630 equipment Lodging/Accommodation Travel - In 17,900,050 0 - Country Mobile Charges 0 9,500,000 Office Consumables (papers, 13,718,900 24,379,900 pencils, pens and stationaries) Operations and Training Fuel 21,046,076 0 Per Diem - Domestic 395,434,375 351,189,682 Per Diem - Foreign 127,835,336 113,935,310 Printing and Photocopy paper 470,000 0 Printing Material 1,200,000 0 . ............ . . . .....5 2 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 . THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT EASTRIP Production and Printing of Training 0 24,459,750 Materials Protective Clothing, footwear and 0 1,700,000 gears Publicity 0 47,581,730 Research and Dissertation Training 34,614,000 20,594,459 - Domestic Research and Dissertation Training 0 20,000,000 - Foreign Settlement of Supplier Debts 31,140,000 0 Subscription Fees 0 8,000,000 Tapes, Films, and Materials (split) 0 1,401,544 Technical Materials 92,248,732 1,254,000 Training Aids 0 560,600 Training Allowances 0 11,570,000 Training Materials 9,274,670 0 Tuition Fees Training - Domestic 32,588,500 22,853,435 Tuition Fees Training - Foreign 68,270,925 54,963,784 Upkeep Allowances 26,932,225 77,484,460 Upkeep/ Stipend Allowance 64,600,000 27,956,250 Visa Application Fees 3,490,090 5,979,117 Water Charges 3,085,440 0 Expenses 1,307,772,166 1,245,906,452 Add/Less (Change in Working Capital) Consumables 9,407,098 0 Imprest Receivable - Staff (17,853,290) (32,158,880) Retention Payable Addition (741,042,189) (402,937,644) Supplies and Consumables goods 0 31,140,000 Opening Supplies of goods and services (31,020,000) (31,140,000) Addition Withholding tax (468,802) 0 Withholding Tax Payable Addition (837,900) (600,532) (781,815,083) (435,697,056) Payment (525,957,083) 810,209,397 Controller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRiCA SKILLS FOR TRANSFORMATION AND REGtONAL INTEGRATION PROJECT IEASTRIP 36 - Maintenance Expenses Direct Labour (contracted or casual 0 11,546,600 hire) - Vehicles and Transportation Equipment Motor Vehicles and Watercraft 0 7,782,527 Panel and body shop repair 0 5,427,126 materials and services Repair and Maintenance of 9,797,341 550,000 Furniture Tyres and Batteries 0 2,750,000 Expenses 9,797,341 28,056,253 Expenses 9,797,341 28,056,253 43 - Social Benefits Health Costs -Employee 780,000 0 Settlement of Medical Treatment 0 1,262,770 Claims Expenses 780,000 1,262,770 Expenses 780,000 1,262,770 52 - Other Expenses Agency fees 41,239,382 0 Audit fees Expenses 31,020,000 31,140,000 Bank Charges and Commissions 0 899,470 Car Wash 2,949,500 0 consultancy fees 48,234,400 0 Registration Fees Expenses 0 326,284 Sundry Expenses 0 73,485,518 Expenses 123,443,282 105,851,271 Expenses 123,443,282 105,851,271 58 - Subsidies Deposit Insurance Board 14,000,000 0 Expenses 14,000,000 0 - -- 54 Controller and Auditor General AR/CG/DIT-MWZIEASTRIP/2023/24_ THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS EAST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT (EASTRIP Expenses 14,000,000 0 59 - Grants and Transfers National Council for Technical 3,000,000 0 Education (NACTE) Expenses 3,000,000 0 Expenses 3,000,000 0 61 - Deposit Unapplied Deposit Account Addition (713,000) (1,575,600) Revenue (713,000) (1,575,600) Revenue (713,000) (1,575,600) 74 - Effect of Foreign Currency Changes Foreign Exchange differences 0 197,926,916 (Gain) - Monetary Payment 0 197,926,916 Payment 0 197,926,916 77 - Acquisition of Property, Plant and Equipment Computers and Photocopiers (14,282,380) 0 Monetary Hardware: servers and equipment 0 (37,575,800) (inct. desktops, laptops etc.) Monetary Motor vehicles, Monetary (69,915,000) (268,659,621) Office Furniture Monetary (1,369,000) (8,543,000) Other equipment and installations 0 (4,500,000) Monetary Printers and Scanners Monetary (108,020) 0 Payment (85,674,400) (319,278,421) Payment (85,674,400) (319,278,421) L an Au io General- -_ -_ -R-c-/DI......A..... .. --.-. 55 Lcontroller and Auditor General AR/CG/DIT-MWZ/EASTRIP/2023/24 THE UNITED REPUBLIC OF TANZANIA DAR ES SALAAM INSTITUTE OF TECHNOLOGY (DIT), MWANZA CAMPUS E:AST AFRICA SKILLS FOR TRANSFORMATION AND REGIONAL INTEGRATION PROJECT fEASTR 92 - Proceed from sale of PPE Payment 0 0 Payment 0 0 .. - -.. . . 5 6 Conr-le -ndAu - AR/CG/DIT-MWZ/EASTRIP/2023/24 Controller and Auditor General___ _ _ _ __ _