Office of the Auditor General of Rwanda OAG www. oag. got. rw AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCE (ACE-DS) Audit Report and Audited Financial Statements For the year ended 30 June 2024 Objëcivity- - fsinalism AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE TABLE OF CONTENTS 1. BACKGROUND, MANDATE AND GOVERNANCE................................................. 2 2. STATEMENT OF MANAGEMENT RESPONSIBILITIES .......................................... 8 3. REPORT OF THE AUDITOR GENERAL .................................................................... 9 4 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024................... 12 Background, Mandate and Governance 1 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE 1. BACKGROUND, MANDATE AND GOVERNANCE 1.1. Project background ACE-DS is one of 24 Eastern and Southern Africa Higher Education Centres of Excellence in the Word Bank's ACE II Project. The African Centers of Excellence (ACEs) financed under the ACE II Project supports the Governments of eight (8) participating countries (namely Ethiopia, Kenya, Malawi, Mozambique, Rwanda, Tanzania, Uganda and Zambia) to collectively address key development challenges facing the Eastern and Southern Africa region through interventions in developing critically-needed science and technology capacity. Accordingly, the International Development Association availed to Rwanda a credit amounting to SDR 14,500,000 (Special Drawing Right) equivalent to USD 20,000,000 to strengthen selected Higher Education Institutions. The ACE-DS is based at the University of Rwanda in the School of Business and Economics. 1.2. Project objective The main objective of this project is to establish and strengthen specialization and collaboration among a network of higher education institutions in the Eastern and Southern Africa region to deliver quality postgraduate education, and build collaborative research capacity in the regional priority area, to address key development challenges facing the region. 1.3. Duration and funding summary The Project is for duration from 2016 to 2023 with an approved budget of USD 5.235 Million (Unit of Accounts) as highlighted in the table below: Source Total donor Cumulative Cumulative Undrawn *Undrawn of funds commitment amount amount balance balance to date received to received to date to date (June2024) date (June (June 2024) (June .. ....... 2024) 2024) in1(n USD (innUSQ) i Frw)1 (in lSD) (n Frw) (at) (B) C D=(C*1311.13031) Loan World 5,235,000 5,205,403.9 5,007,857,511.86 29,596.10 **38,804,344 Bank Total 5,235,000 5,205,403.9 5,007,857,511.86 29,596.10 38,804,344 *: Average exchange rate as at 30/06/2024: Frw 1,311.13031=1 USD. **: ACE-DS has no undrawn balance. The diference was due to the exchange rate differences between SDR and USD over the period of the loan. Background, Mandate and Governance 2 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE Note: Below are the details of the funding: Date Amount received in USD Exchange selling rate Amount Frw 20/04/2017 1,100,000 818.648 900,512,800 13/05/2019 109,000 883.971 1 96,352,839 23/05/2019 340,765.96 .-___883.971 301,227,226 14/08/2019 536,500 894.653 479,981,335 17/03/2020 441,000 920.675 406,017,675 28/08/2020 860,720 940.216 809,262,716 24/06/2021 31,551.72 990.667 31,257,248 19/10/2021 898,000 990.667 889,618,966 27/04/2023 150,000 1,164.55 174,683,175.00 26/09/2023 31,424.85 1,198.27 37,655,431.82 18/12/2023 621,053.01 1,244.83 773,105,318.45 22/02/2024 85,388.36 126.95 108,182781.59 TOTAL 5,205,403.90 5,007,857,511.86 1.4. Basic information of the Project The description of the Project is summarized in the table below: Project Name African Centre of Excellence in Data Sciences (ACE-DS) Project Number Credit Number: 5796-RW Line Ministry of the MINEDUC project Funding sources The Project's total funding over the project lifetime is as below: Source of funds Amount Amount in local currency/ in Using the average exchange foreign rate as at 30/06/2024: Frw currency 1311.13031 UDS Frw oan Bank 535,000 6,863,767,173 Total i5,235,000 6,863,767,173 Using average exchange rate as at 30/6/2024 as the date ofproject signature: 1USD = Frw 1311.13031 Project Start Date: The project approval date is 26"h May 2016 The project signature of agreement date is 17th' June 2016 The project effectiveness date is 17"' October 2016 Project End Date: The project last disbursement date is 30i' April 2024 The project completion date is 3 1" December 2023 T he project completion extended date : Extended from 3 1" December 2022 to 31 " December 2023 Project Manager The project manager is Prof. Charles RURANGA Project Sponsor/ Funder Lender name: World Bank The project objective The main objective of this project is to establish and Background, Mandcate and Governance 3 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE strengthen specialization and collaboration among a network of higher education institutions in the Eastern and Southern Africa region to deliver quality postgraduate education, and build collaborative research capacity in the regional priority area, to address key development challenges facing the region. Strategic goals of the Addressing specific development challenges by delivering a Project highly quality in postgraduate training, in research and in professional courses, focuses on data science involving the collection, analysis and transmission of data for facilitating eci sion-making Project components and The Project's components include: activities (i) Offering a research hub for postgraduate students, attracting international expertise and practitioners; (ii) Stimulating collaboration between academics, partners and stakeholders; (iii) Demonstrating the relevance of the centre for innovation, job creation and economic prosperity; and Securing resources to stimulate multidisciplinary collaborative international research projects. Programmes offered by African Center of Excellence for Data Science (ACE-DS) as follows: PhD Programmes: * Data Science in Demography * Data Science in Econometrics * Data Science in Data Mining * Data Science in Actuarial Science * Data Science in Biostatistics Master's Programmes: * Specialization in Actuarial Science * Specialization in Demography * Specialization in Biostatistics * Specialization in Econometrics * Specialization in Mining Certification programmes: * Associate Big Data Engineer * Senior Big Data Engineer * Associate Big Data Analyst * Senior Big Data Analyst * Senior Data Scientist Short Programmes * Machine Learning and Computation Statistics Background, Mandate and Governance 4 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE * Quantitative Monitoring and Evaluation * Data Management * Panel Data Analysis * Statistical Simulation Physical address The Project is domiciled in Kicukiro District, City of Kigali, Rwanda. Implementing agency The Project is implemented by the University of Rwanda (UR) 1.5. Key Project achievements * Enrolled MSc and PhD students and short courses (SC) No MSc PhD SC National Regional Total National Regional Total Total 1 Female 94 19 113 13 3 16 79(17) -___ ----7- 13-- 3 L_6 _ _............. 2 Male 214 20 234 62 12 74 374(83) ---------- ._ _ 3 0 ....... .......(8 3 Total 308 39 347 75 15 90 453 * MSc and PhD graduates No MSc (%) PhD (%) National Regional Total National Regional Total 1 Female 32 19 51(36) 2 0 2 (15) 2 Male { 77 j12 _ 89(64) 7 _ 4 11(85) Total 109(78) 31 (22) 140 9(69) 4(31) 13 * Infrastructure : ACE-DS has A high Performance Computing Cluster made of 5 separate nodes (servers), each having 640GB of RAM, 50TB of storage, two intel of 64 cores. * Research: More than 100 papers published in peer reviewed high impact journals. * Exchange , More than two hundred (200) faculty/students participated in teaching or research exchange. * The ACE-DS financing approach was results-based and achieved 100%. * ACE-DS has established a Data Driven Incubation Hub (DDIH) which was launched officially on 27 March 2023. Background, Mandate and Governance 5 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE 1.6. Organizational structure 16.1. Steering Committee members The Project Steering Committee members who held office during the year ended 30 June 2024 and to the time of this report in November 2024 were as follows: Names Position IInstitution Period KARAKYE Charles Chairperson i MINEDUC From August 2021 to date En.g Mike HUGHES Member MINEDUC FroA 2016 to date NYIRANZEYIMANA Member RISA From August 2016 to date Josephmne - M --- - Dr. MUTIMURABEugene .Member NCST From August 2016 to date NTAGENGERWA Theoneste Member PSF From August2016 to date MUGABO William Member MoE From August 2016 to date MUVUNYI Victor Member M[NICT From August 2016 to date Prof NSANGANWIMANA Member UR-CE From October 2020 to date Florien Assoc. Prof GATARE Igace Member FUR-CST rom August 2016 to date Dr. NKURUNZIZA Joseph Member - UR-CBE From December 2022 to date BUGINGO Immaculate Member UR From August 2018 to 31 July 2024 16.2. Project management The Project management team members who held office during the year ended 30 June 2024 and to the time of this report in December 2024 were as follows: Name I Position Period Ass. Prof. KAYIHURA Muganga Acting Vice Chancellor From 2022 to date Didas Dr. NDIKUMANA Raymond Deputy Vice Chancellor for From 2022 to date Strategic Planning and Administration KAYITARE TENGERA Franyoise Deputy Vice Chancellor for From 2018 to date Finance and Chief Budget Manager Dr. NKURUNZIZA Joseph Ag. UR-Principal of From January 2023 to College of Business and date Economics Prof Prof RURANGA Charles ACE-DS Director From 2017 to date BUGINGO Immaculate UR SPIU Coordinator From 2018 to 31 July 2024 Dr. MUGISHA Michael UR SPIU Ag. Coordinator August 2024 to date KANAMUGIRE Phabian Maurice Ag. UR SPIU Director of From March 2019 to Administration and Finance 24 May 2024 NSENGIYAREMYE Dismas Jean UR SPIU Ag. Finance June 2024 to date Paul Program Manager I ACEs Ag. Project From January 2023 to Background, Mandate and Governance 6 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) BACKGROUND, MANDATE AND GOVERNANCE Name Position Period Coordinator May 2024. ACEs Financial From September 2021 Management Specialist to January 2023 UMUTONI Aline ACEs Financial From August 2024 to Management Specialist date Background, Mandate and Governance 7 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) STATEMENT OF MANAGEMENT RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2024 15. STATEMENT OF MANAGEMENT RESPONSIBILITIES Article 78 of the Organic Law No 002/2022 OL of 12/12/2022 on Public Finance Management require each public sector entity to submit its annual financial statements to the Minister with a copy thereof to the Auditor General of State Finances within forty-five (45) days following the end of the fiscal year. Article 20 of the Organic Law No 002/2022 further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the budget agency, preparing reports on budget execution, managing the financial resources for the budget agency effectively, efficiently and transparently, ensuring sound internal control systems in the budget agency and safeguarding the public property held by the budget agency. As Chief Budget Manager, I accept responsibility for the annual financial statements, which have been prepared using appropriate accounting standards applicable to Public Entities as defined by Article 99 of the Ministerial Order No001/16/10/TC of 26/01/2016 relating to financial regulations. These financial statements have been extracted from the accounting records of African Center of Excellence in Data Sciences (ACE-DS) and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda. in my opinion, the financial statements have been prepared in compliance with the Organic Law No 002/2022 OL of 12/12/2022 on Public Finance Management and related regulations. I confin that ACE-DS maintained proper accounting records which can be relied upon in the preparation of financial statements. I also confirm that adequate systems of internal financial control were maintained and operated effectively during the year to safeguard the assets of the budget agency. Nothing has come to the attention of management to indicate that ACE-DS will not continue operating as a going concern for the foreseeable -future. Name: Francoise KAYITAJRE TE!NGERA Deputy Vice Ch a nc r fo ar Finance University o wnda Date: o g e i AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 16. REPORT OF THE AUDITOR GENERAL REPORT ON THE FINANCIAL STATEMENTS Ms. Fran9oise KAYITARE TENGERA Deputy Vice Chancellor for Finance University of Rwanda (UR) 3.1 Opinion As required by Article 166 of the Constitution of the Republic of Rwanda, and Articles 6 and 14 of Law No 79/2013 of 11/09/2013 determining the mission, organization and functioning of the Office of the Auditor General of State Finances (OAG), I have audited the financial statements African Centre of Excellence in Data Sciences (ACE-DS) for the year ended 30 June 2024 These financial statements comprise the statement of financial position as at 30 June 2024, and the statement of financial performance, the statement of cash flows, the statement of changes in net assets and the statement of budget execution for the year then ended, and a summary of significant accounting policies and other explanatory notes. These financial statements are set out on pages 12 to 29. In my opinion, ACE-DS financial statements which comprise of its financial position as at 30 June 2024, its financial performance and its cash flows for the year then ended were prepared in compliance with the Ministerial Order N' 001/16/10/TC of 26/01/2016 relating to financial regulations and Organic Law N' 002/2022 OL of 12/12/2022 on Public Finance Management. 3.2 Basis for Opinion I conducted the audit in accordance with the International Standards of Supreme Audit Institutions (ISSAls). My responsibilities under ISSAIs are described in section 3.4 of this report. I am independent of ACE-DS and have fulfilled my ethical responsibilities in accordance with the ethical requirements that are relevant to my audit of financial statements of public entities as determined by the Code of ethics for International Organisation of Supreme Audit Institutions (INTOSAI). I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 3.3 Responsibilities of management and those charged with governance for the Financial Statements According to Organic Law No 002/2022 OL of 12/12/2022 on Public Finance Management, management of African Center of Excellence in Data Sciences (ACE-DS) is responsible for keeping accounting records and books of account, and preparation of financial statements in accordance with the financial regulations prescribed by the Minister in Ministerial Order No 001/1 6/10/TC of 26/01/2016 relating to financial regulations. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. Office of the Auditor General of States Finances 9 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 In preparing the financial statements, management is responsible for assessing the African Center of Excellence in Data Sciences (ACE-DS) '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 Government either intends to discontinue operations of the African Center of Excellence in Data Sciences (ACE-DS). Those charged with Governance of this ACE- DS are the project Steering Committee as per establishing funding agreement. They are responsible for overseeing ACE-DS's financial reporting process. 3.4 Auditor General's responsibilities for the audit of the financial statements My objective when conducting an audit is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Misstatements can arise from fraud or error and are considered material if individually or in aggregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these financial statements. An audit conducted in accordance with ISSAls requires an auditor to exercise professional judgment and maintain professional skepticism throughout the audit and involves: * The identification and assessment of the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform procedures responsive to those risks and to obtain sufficient and appropriate audit evidence to provide a basis for the auditor's 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 controls. * Obtaining 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 purposes of expressing an opinion on the effectiveness of internal control. * Evaluating the appropriateness of accounting policies used, the reasonableness of accounting estimates made by management. * Concluding 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 ACE-DS' ability to continue as a going concern as well as evaluating the presentation of the financial statements. Office of the Auditor General of States Finances 10 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDIT REPORT ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Evaluation of the overall presentation, structure and content of the financial statements, including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieved fair presentation. KAMUHIRE Alexis AUDITOR GENERAL KIGA...... .. 2024 Office of the Auditor General of States Finances II AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4 FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.1 STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2024 Description 12 months to 30 12 months to 30 Notes June 2024 June 2023 Frw Frw Revenues Transfers from other government entities 70,804,716 168,323,232 Transfer public debt external Proect 918,943,510 173,459,231 Revenue from exchange transactions 3 53,672,959 47,318,870 Other revenue 4 280,402 1,072,006 Total revenues (A) 1,043,701,587 390,173,338 Expenses Goods and services 5 497,217,927 589,713,954.25 Capital expenditure 6 0 53,878,792.67 Grants and other transfer payments 7 342,154,824.19 17,266,560 Other expenses 8 64,736,198.33 141,170,902.50 Total_expenses (B) __ 904,108,949 802,030,209 Other gains and losses Foreign exchange gain (C) 9 103,770,619 1 121,883,901 Deficit/Surplus for the period 243,363,257 (289,972,970) (D)=(A)-(B)+(C) The notes on pages 17 to 29 form an integral part of the financial statements. Audited Financial Statements 12 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR TUE YEAR ENDED 30 JUNE 2024 4.2 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024 Deseription Note Balance as at 30 June Balance as at 30 s 2024 June 2023 Frw Frw Asse----- ----...t-- .-. -~ - ........ Assets Current assets Cash and cash equivalents ] 10 1 21, 459 983,384,060 Receivables from exchange 11 53,343 354 46,740,600 transactions l Total current assets 1,271,764,813 - 1,030,124,660 Non-current assets Currency And Deposits -Domestic- 12 413,488,717 J 413,488,717 NCA Total non-current assets 1_488,717 413,488,717 Total assets 1,685,253,5301 1,443,613,377 Eguity and liabilities Current liabilities Accounts2payable 13 0 1,723,104 Total liabilities 0 1,723,104 Net Assets/Equity Egui_ty/Net ast Accumulated opening balances 14 441,89273 1,731863,243 DeficiSurplus for the period 243,363,257 (289,972,970) Total equity and liabilities 1,685,253,530 1,443,613,377 The notes on pages 17 to 29 form an integral part of the financial statements, The fmancial statements were approved by African Center of Excellence in Data Sciences (ACE-DS) management and was signed on its behalf by: Prepared by: Jean Eric NDAGIJIMANA Project Accountant - ACE-DS Signature Date Reviewed by: Dismas JP NSENGIYAREMYE Ag. FPM/UR SPIU Signature Date Checked by: Dr Michael MUGISIHA UR SPILT Coordinator Siature Date Approved by: Françoise KAYITI7ARE TENGERA Chief Budget Mianager Signaire Da e Audied .Finncial Staemnt AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.3 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024 Deseription 12 months to 30 12 months to 30 June 2024 June 2023 Frw Frw Cash flows from operating activities Receipts Transfers from other government entities 70,804,716 168,323,231.57 Transfer from the public debt external project 918,943,510 173,459,231.47 Revenue from exchan e transactions 53,672,959 47,318,869.80 Other revenue 280,402 1,072,006.00 Total Revenue 1,043,701,587 390,173,339 Payments., Use of goods and services (497,217,927) (589;713,954.25 Grants and other transfer payments (342,154,824) (17,266,560.00) Other expenses (64,736,198) 141,170,902.50) Adjusted for: Changes in receivables (6,6_0,754)_ (40,012,255) Changes in payables (1,723,104 (5,666,392 Prior adjustments Net cash flows from op_erating activities 131,266,780 (403,656,725) Cash fluws from investing activities ~ Investment pr perty____ _4(413,8,717) Capital expeuditure _______(53,878,793 Net cash flows from investing activities 0 (467,367,510) Cash flow from financing activities Proceeds from borrowings 0 0 Net cash flow from financing activities 0 0 Net increase/(decrease) in cash and cash 131,266,780 (871,024,235) eguivalents Cash and cash equivalents at beginning of 983,384,060 1,732,524,393.51 Effects of exchange rate changes on the balance 103,770,619.45 121,883,901.01 of cash held in foreign curreneies Cash and cash eguivalents at end of period 1,218,421,459 983,384,060 The notes on pages 17 to 29 form an integral part of the financial statements. A udited Financial Statements 14 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.4 STATEMENT OF CHANGES IN NET ASSETS/EQUITY FOR THE YEAR ENDED 30 JUNE 2024 Changes in net assets items Accumulated Movement Total surplus/ deficit during the 2022/2023 2021/2022 year 2022/2023 Frw Frw Frw Accumulated opening balance 1,731,863,243 0 1,731,863,243 Accumulated surplus (289,972,970) 0 (289,972,970) Total 1,441,890,273 0 1,441,890,273 Changes in net assets items Accumulated Movement Total surplus/ deficit during the 2023/2024 2 022/2023 year 2023/2024203224 .........- .............. ..--_. .. .......-1- 11 .. .....-....... Frw Frw Frw Accumulated opening balance 1,731,8,2 3 1,63,243 Surplus/(deficit) for the period (289,972,970) 243,363,257 -46,609,713 Total 1,441,890,273 243,363,257 1,685,253,530 The notes on pages 17 to 29 form an integral part of the financial statements. A udited Financial Statements 15 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.5 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30 JUNE 2024 Description Budget Actual Variances Performa nee Frw Frw Frw % A R . . .. B A-B (B/A *100 Resources Transfers from other 75,804,716 70,804,716 5,000,000 93% Government reporting entities Transfer of public debt 753,912,068 918,943,510 (165,031,442) 122% external Project-------- ---] L 1 --, . Revenue from exchange 45,483,759 53,672,959 (8,189,200) 118% transactions Other revenue 104,051,021 (104,051,021) 0% Total resources (A 1 875,200,543 1,147,472,206 22,71,6363)131 .Payments Use of goods and services (518,628,739) (497,217,927) ( j21,410,812) 96% .O.th-er expen-ses - (377,103,019)..(406,89.,023) 29,788,004 I 108% Total payments (895,731,758) (904,108,950) 8,377,192 1 1% The notes on pages 17 to 29 form an integral part of the financial statements. Explanations of material variances * Transfer of public debt external Project: The 22% over execution of transfer of public debt external project is attributable to more finds received than expected from the World Bank amounting to USD 85,000 and the exchange rate fluctuation. * Revenue from exchange transactions: The 18% over execution of revenue from exchange transactions has resultedfrom students who registeredfor a different module. * Other revenue: The variance on other revenue is mainly made of exchange gains from currency exchange fluctuations between USD and Frw. Audited Financial Statements 16 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 4.6 NOTES TO THE FINANCIAL STATEMENTS 4.6.1 Statement of compliance Public entities maintain their books of account on a modified accrual basis of accounting as prescribed in basis for preparation. The financial statements have been prepared in accordance with the Organic Law N' 002/2022 of 12/12/2022 on State Finances and Property and related legal framework. The Chief Budget Manager has authorized these financial statements for issue on 30' June 2024. The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period. The presentation and classification of items in the financial statements are consistent from one period to the next and takes into consideration progressive improvements as contained in the Government of Rwanda roadmap to migrate to accrual IPSAS. 1. Basis of preparation The financial statements have been prepared on the basis of historical costs unless otherwise stated. The cash flow statement is prepared using the direct method. The specific accounting basis for major items in the financial statements are provided below. Except for the subsidiary entities affiliated to the decentralised entities, public entities shall maintain their books of account on a modified accrual basis of accounting. The subsidiary entities affiliated to the decentralised entities shall maintain their books of account on a modified cash basis of accounting and progressively move to the same accounting basis as that of the rest of the public entities. In this context, modified accrual basis of accounting means that financial transactions and events shall generally be recognized in the books of account when they occur and not only when cash or its equivalent is received or paid, except in the following circumstances when transactions will be treated on a cash basis; (i) Public debt (principal and interest) - involving Treasury bills, treasury bonds, corporate bonds, sovereign bonds and external loans acquired by the Ministry or any other debt the State may take on will be treated on cash basis and recognized as revenue during the year of receipt and as expenditure in the year of repayment. However, loans acquired directly by a public entity and any associated interest shall be treated on an accrual basis and recognized as liabilities. (ii) Inventories - these are assets: a. in the form of materials and supplies to be consumed in the production process, b. in the form of materials to be consumed in the rendering of services, c. held for sale or distribution in the ordinary course of operations, d. in the process of production for sale or distribution. Inventories include assets such as consumable stores and maintenance materials. These will be treated on cash basis and recorded as expenditure during the year of acquisition and treated as revenue in the year of disposal. Audited Financial Statements 17 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 (iii) Non-exchange transactions: - These arise where an entity receives value from another entity without giving approximately equal value in exchange. These include taxes, fines and penalties, transfers, gifts and donations and shall be recognised when cash is received. (iv) Non-current assets (tangible and intangible assets): - such as vehicles, furniture, equipment, finance leases, plant and tools and investment property are treated on cash basis and recorded as capital expenditure during the year of acquisition and revenue in the year of disposal. (v) Investments excluding those directly made by public entities: - shareholding in public corporations, investments in associates, equity interest in joint ventures, lending and on-lending by government entities will be treated on cash basis and recorded as capital expenditure during the year of acquisition and revenue in the year of disposal. (vi) Student loans: - Student loans shall be treated on a cash basis at the time of disbursements and recognized as expenses. Similarly, they will be recognised as revenue when loan repayments are received from the students. a. Reporting periods The Government of Rwanda Fiscal Year runs from 1S July to 30th June. These financial statements cover the period 1st July 2023 to 30h June 2024. The comparative figures reflect the 12 months ended 30t" June 2023. b. Key assumptions and judgements These financial statements, as a component of the Government consolidated financial statements, reflect the Government's financial position as at 30 June 2024, and the financial results of operations and cash flows for the period/year ended on that date. Included in these financial statements are a number of judgements, estimations and assumptions. The assumptions are based on information available at the time of the preparation of the financial statements. It should therefore be noted that actual results may differ from the assumptions stated and thus have a material impact on the financial statements. The key assumptions are discussed below: c. Presentation currency The functional currency of the Government of Rwanda is the Rwandan Franc. For reporting purposes, the financial statements are translated into Rwandan Francs. The rates used to translate foreign currency balances is the average rate applicable by National Bank of Rwanda as at 30 June 2024. d. Areas of significant estimation These financial statements do not have significant estimates so far. For the non-current asset and inventory balances disclosures, the acquisition cost before depreciation has been used. Audited Finauneial Statements 18 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 e. Adoption of new and revised standards The government is in the process of transitioning to IPSAS through a phased approach that involves a six-year implementation plan. Basis of consolidation The financial statements are aggregated on a line by line basis with the inter-entity transactions of revenue and expenditure being eliminated at the national consolidation level to avoid overestimation of revenue or expenses. Fair Presentation and Compliance with Accrual Basis IPSASs during the Period of Transition IPSAS 33, First-Time-Ad option-of-Accrual-Basis-IPSAS s, stipulates that where a first-time adopter has not recognized assets and/or liabilities under its previous basis of accounting, it is not required to recognize and/or measure the following assets and/or liabilities for reporting periods beginning on a date within three years following the date of adoption of IPSASs. The standard recognizes that during the migration, some assets and liabilities are complex and a fair presentation may not be achieved within the three years following the first adoption of the migration and hence provides for exemption relating to fair presentation. In this regard and basing on the exemption relating to fair presentation provided in paragraphs 33 to 62 of IPSAS 33, the following items of assets and liabilities will not be recognized on the face of financial statements under the current modified accrual basis of accounting. Instead, those will be disclosed as important disclosures until those assets are fully identified, registered in appropriate registers and its value can be determined reliably The main ones include; a) Inventories (see IPSAS 12, Inventories); b) Investment property (see IPSAS 16, Investment Property); c) Property, plant and equipment (see IPSAS 17, Property, Plant and Equipment); d) Defined benefit plans and other long-term employee benefits (see IPSAS 25, Employee Benefits); e) Biological assets and agricultural produce (see IPSAS 27, Agriculture); f) Intangible assets (see IPSAS 31, Intangible Assets); g) Service concession assets and the related liabilities, either under the financial liability model or the grant of a right to the operator model (see IPSAS 32, Service Concession Arrangements: Grantor); h) Public debts; and i) Government Investments in Public and Private Enterprises f. Significant accounting policies The accounting policies set out in this section have been consistently applied by all consolidated entities and for all the years presented. Audited Financial Statements 19 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 g. Recognition I. REVENUE a) Revenue from non-exchange transactions * Transfers from other general government units Transfers from other general Government units includes Transfers from National Treasury, Inter-entity and intra-entity transfers. Inter-entity transfers refer to transfers between cost or revenue centres belonging to different public entities while intra-entity refers to transfers between cost or revenue centres within the same budget agency. A transfer is a transaction in which one institutional unit provides a good, service, or asset to another unit without receiving from the latter any good, service, or asset in return as a direct counterpart. Grants are normally receivable in cash, but may also take the form of the receipt of goods or services (in kind). Grants receivable are classified first by the type of unit providing the grant and then by whether the grant is current or capital. A grant may be a sum of money or services given by a government body for specific purposes. Usually, the money given can only be used for the intended purposes stated in the grant writing or application. These transfers could be classified according to the sector of the counterparty and whether they are current or capital transfers. The grants and transfers shall be sub-categorized as follows: a) Grants received from Foreign Governments; b) Grants received from International Organizations; and c) Grants received from other general Government units which includes Treasury Transfers, Inter-entity and intra-entity transfers. Grants and similar financing for capital items, to the extent that they have not been eliminated on consolidation, are recognised immediately in the Statement of financial assets and liabilities unless it is likely that the grant will need to be repaid, in which case the grant is deferred in the Statement of financial assets and liabilities The following applies to grants and transfers: * Grants are recognized in the books of accounts when cash is received and in case of grant in kind, such grants are recorded upon receipt of the grant item and upon determination of the value. * Transfer from Treasury are recognized in the books of accounts when cash is received. * Transfers received from Government entity for onward payment to a third party are not treated as an inter-entity (revenue) rather, such transfers shall be recorded as transit fund (liability) in the books of the receiving entity. * Transfers from Treasury that are not related to current fiscal year budget are not treated as cash transfers. Instead, such transfers shall be treated as inter-entity transfers. * Transfers from entities to Treasury which does not relate to the current fiscal year budget are treated by Treasury as inter-entity transfers. A udited Financial Statemnents 20 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 * Funds returned to Treasury at the end of the fiscal year as a result of zero balance accounts sweeping are not recognized as inter-entity transfers. Instead, those funds will reduce the cash transfer account balance for the same year. Where such transfers are received by Treasury in the subsequent fiscal year (such as embassies and foreign missions) such transfers is recognized as inter-entity transfers. * The transfers other than grant include subsidies, as well as gifts and transfers from individuals, private non-profit institutions, nongovernmental foundations, corporations, and the nature of the transfer is not such that it could be included in the other categories of transfers. * Other revenue These are other revenue not classified in other classes of revenues. This include claims from insurance and guarantees seized, b) Revenue from exchange transactions The project received during the previous year end fees collected from research activities c) Borrowings The Ministry of Finance and Economic Planning is the principal borrowing agent for Central Government. Public debt and associated interest is recognized on cash basis. Proceed from loan borrowing is recognized as revenue during the year of receipt at cost and repayment as expenditure in the year of repayment. Cash is considered as received when recipient entity received a transfer advice from the partner rather than when cash is received in the bank account of the receiving entity. Other loans (principal and any associated interest) acquired directly by a public entity (e.g. those acquired by Decentralized Entities) are treated on an accrual basis and recognized as liabilities. II. Expenditure All expenditure is recognised on accrual basis however, the point of recognition may be different according to their categories. a) Goods and services Goods and services consist of the value of goods and services used for the production of market and nonmarket goods and services. The value of goods or services is recorded when the goods or services are actually used rather than when they were acquired or paid for. In practice, these events often coincide for inputs of services but not for goods, which may be acquired some time in advance of their use. The value of goods purchased and held for resale is recorded as goods and services when they are sold. Auited Financial Statements 21 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 b) Acquisition of fixed assets The expenditure on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as expenditure and income items respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as revenue and as Acquisition of Fixed Assets otherwise it not recorded rather a fixed asset register which contains details of assets is maintained by each public entity. c) Transfers to public Entities Transfers to public entities are made in the form of direct/indirect cash transfers and direct payments to public reporting entities. Payments from the Central Treasury account are originated and approved by the respective public entities before they are forwarded to the Treasury for payment. Direct/indirect cash transfers are transferred together with associated activities to be performed. The expenditure/receipt is recognised when actual cash is transferred. Cash is considered as transferred when consideration for payment such as EFT, Cheque, Payment Orders are approved level 2 rather than when cash and cash equivalent are debited from the bank statement. For direct payments expenditure is recognized when goods/services are received and when commitment is approved for all other expenditures. During the consolidation process while the actual spending reported by budget agencies is regarded as expenditures. d) Other expenses Any other expenses not part of the ones above will fall into this category. Other expenses comprise education non-reimbursable scholarships and students living allowances. III. Assets and liabilities a) Cash and cash equivalents Cash comprises cash on hand, demand deposits and cash equivalents. Demand deposits and cash equivalents comprise balances with banks and investments in short-term money market instruments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the National Bank of Rwanda, foreign bank for the case of embassies and high commissions and at various commercial banks at the end of the reporting period. b) Receivables from exchange transactions These receivables include the receivables from the exchange transactions, prepayments and other receivables recoverable in period not exceeding 12 months. c) Inventories Inventories are expensed in the period in which they are acquired by the Govermnent and its entities. A udited Financial Statenents 22 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 d) Current liabilities These mainly relate to invoices for goods and services which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year. All goods received notes are recognised as liabilities if not yet paid as at the end of the period. It also includes short-term borrowings received by budget agencies from Local Commercial Banks as these are not regarded as public debt. e) Noncurrent liabilities These non-current liabilities include funds due to suppliers whose repayment shall be done in more than 12 months from the end of the financial year. IV. Other relevant information a) Foreign currency transactions Transactions denominated in foreign currencies are initially translated to the Rwandan Franc at the foreign exchange rate at the date of transaction. The National Bank of Rwanda provides exchange rates for major foreign currencies on a daily basis. These are presented for selling rate (rate the bank will sell foreign currency to its clients), buying rate (rate the bank will buy foreign currency from its clients) and average rate (average between the selling and buying rate). During the year, revenue items are translated using the buying rate presented at BNR website of the transaction day whereas the Expense items should be translated using the Selling rate presented at BNR website of the transaction day. The associated exchange losses are recorded as other expenditure while exchange gains should be recorded as other revenue. At the end of the year, book balances, Assets (such as bank and cash and accounts receivables) and liability (such as accounts payables), denominated in foreign currencies are converted into the Rwanda Franc at the average rate of exchange ruling on that closing date, as issued by the National Bank of Rwanda. The associated exchange losses/gains are recorded as expenditure/income in the books. b) Comparative figures Adjustments have been made on the opening balances of the current financial period with respect to adjustments made by individual entities relating to the comparative periods. c) Subsequent events There have been no events subsequent to the financial year end with a significant impact on the financial statements for the year ended 30 June 2024. Audited Financial Statements 23 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Changes in accounting policies and estimates When presentation or classification of items in the financial statements is amended or accounting policies are changed volumtarily, comparative figures have been restated to ensure consistency with the current period unless it is impracticable to do so; in this regards, such adjustments have been treated as adjustments to opening balance. d) Notes to the statement of comparison of budget and actual amounts The original budget for 2023/2024 was approved by the CBM on 30/06/2021. Subsequent revisions or additional appropriations were made to the approved budget in accordance with specific approvals from the appropriate authorities. The additional appropriations are added to the original budget by the Government upon receiving the respective approvals in order to conclude the final budget. Accordingly, the Government recorded additional appropriations of budget in accordance with specific instructions of the Cabinet/Parliament. Government's budget is prepared on a different basis to the actual income and expenditure disclosed in the financial statements. The financial statements are prepared on accrual basis using a classification based on the nature of expenses in the Statement of revenues and expenditures, whereas the budget is prepared on a cash basis. The amounts in the financial statements were recast from the accrual basis to the cash basis and reclassified by presentation to be on the same basis as the approved budget. A comparison of budget and actual amounts, prepared on a comparable basis to the approved budget, is then presented in the statement of comparison of budget and actual amounts. In addition to the Basis difference, adjustments to amounts in the financial statements are also made for differences in the formats and classification schemes adopted for the presentation of the financial statements and the approved budget. * Timing differences occur when the budget period differs from the reporting period reflected in the financial statements. There are no timing differences for Government. * Public entity differences occur when the budget omits program/activity or a public entity that is part of the public entity for which the financial statements are prepared. There are no entity differences. Aiulited Financial Statements 24 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 2. Transfers from other Government entities These transfers include intra transfers (transfers between budget agency and its subsidiaries are eliminated in the statement of financial performance. The project received transfers from Government reporting agencies as detailed below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Fm-Fm 139112 Intra Transfers from Subsidiaries Entities 70,804,716 168,323,232 139214 Transfers public debts external Projects 918,943,510 173,459,231 Total 989,748,226 341,782,463 3. Revenue from exchange transactions ID Description 12 months to 12 months to Acco 30 June 2024 30 June 2023 unt Frw Fnv ..-..-. ~ .. F.. Fr... .141 Propertincome (interest from fixed term deposit) 45,483,759 44,860,694 142 Sales of goods and services (fees paid by students 8,189,200 2,458,175.80 12for professional courses_offe.red by.ACE-D.. Total 53,672,959 47,318,870 4. Other revenue ID Account Description 12 months to 12 months to 30 June 2024 30 June 2023 ........~Fr V ...... n F n 145199 jOther Miscellaneous Income 0i 621,506 145201 Miscellaneous And Unidentified Revenue 280,402 450,500 Total 280,402 1,072,006 5. Goods and services During the 12 months to 30 June 2024, the Project consumed goods and services as detailed in the table below: ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 Frw Frw 2211 Office supplies and consumables 31,887,458 38,801,384 2214 Communication costs 18,911,395 16,621,583 2216 Bank charges and commissions and other 0 426,065 financial costs 2217 Public relations and awareness 13,031,049 20,571,086 2221 Professional and contractual services 278,943,654 304,288,907 2231 Transport and travel 147,879,535 191,383,489 2241 Maintenance and repairs 0 10,693,330 2261 Training costs 6,564,836 6,928,110 A udited Financial Statements 25 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 ID Description 12 months to 12 months to Account 30 June 2024 30 June 2023 I Frv Frw Total 497,217,927 589,713,954 6. Capital expenditure During the 12 months to 30 June 2024, the Project incurred capital expenditure as detailed in the table below: ID Account Description 12 months to 12 months to 30 June 2024 30 June 2023 Fmw Fny 2313 Office equipment, furniture and fitting 0 23,922,933 2314 ICT equipment, software and other ICT 0 8,597,384 a ssets ................ . . 2315 Other machinery and equipment 0 21,358,476 -Library books Total i r y b ..0 53,878,793 7. Grants and other transfer payments These are transfer payments made to the University of Rwanda (UR) to facilitate E- learning/online courses as detailed in the table below: ID Account Description 12 months to 12 months to 30 June 2024 June 2023 Fny Fmv 267100 Intra - Entity Transfers to central Gvt 2,309,084 267112 Intra Transfers Subsidiary Entity-Capital 17,266,560 _______.......... ._____... 267212 Transfers to Subsidiary Units 79,597,542 267109 to Intra - Entity Transfers 260,248,198 267114 &267209 to 267214 Total 342,154,824 17,266,560 Audited Financial Stalements 26 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 8. Other expenses During the 12 months to 30 June 2024, the project incurred various other expenditure. This includes scholarship and students' living allowances as detailed in the table below: ID Description 12 months to 12 months to 30 Account 30 June 2024 June2023 Frw Frw 2821 Scholarships (Education non-reimbursable 19,323,994 37,133,987 scholarship 2822 Other educational benefits (Student living 45,412,204 104,036,915 allowance), Total 64,736,198 141,170,902 9. Foreign exchange gain ID Account Description 12 months to 12 months to 30 June 2024 30 June 2023 Frw Frw 145111 Gain of currency exchange and translations 103,919,131.13 121,887,424 221605 Loss on currency exchange and translations (148,512) (3,523) Total 103,770,619 121,883,901 10. Cash and cash equivalents ID Bank Account Account Amount Exchang Balance as Balance as at account name currenc Number in foreign e rate at 30 June 30 June 2023 y currency 2024 Frw Frw 1002229469 311322 BK Frw 7 9 28,033,533 172,134,716 10002229477 311420 BK USD 28,704.28 1,311.13 37,635,051 33,349,670.29 311405 BNR USD 1000038047 1,311.13 2 5 9 Total 983,384,060 9 11. Receivables from exchange transactions Debtor's Description Balance as at Balance as at Account 30 June 2024 30 June 2023 Code Frw Frw 3121 Accounts receivable - Third arties 19,323,994 1,879,906.17 3125 Interest receivable 34,019,360 44,860,694 Total 53,343,354 46,740,600 A udited Financial Statemen ts 27 AFRICAN CENTRE OF EXCELLENCE FOR DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 12. Currency and deposits -Domestic-NCA Debtor's Account Description Balance as at Balance as at Code 30 June 2024 30 June 2023 - Frwi Frw 3131 Currency and deposits- 413,488,717 413,488,717 Domestic-NCA Total 413,488,717 413,488,717 *: This relates to 3 years- term deposit constituted in Batik of'Kigali PLC at annual interest rate of 11%. Its value date is 5 July 2022 while its maturity date is 5 July 2025. 13. Accounts payable The following were the accounts payable balances as at 30 June 2024: Account code Description Balance as at Balance as at 30 30June2024 June2023 Frw Frw 4121 Accntspayble -third parti Accounts payable -Third parties Total - 1,723,104 14. Accumulated opening balance ID Account Description Balance as at Balance as at 30 June 2024 30 June 2023 Frw Frw 511101 _Bank and cash equivalent opening balance 1,441,890,273 1,731,863,243 511102 Receivables opening balance 0 0 511103 Payable_opening balance 0 0 Total 1,441,890,273 1,731,863,243 A udited Financial Statements 28 AFRICAN CENTRE OF EXCELLENCE IN DATA SCIENCES (ACE-DS) AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 15. IMPORTANT DISCLOSURES 15.1. Inventory of supplies and consumables Description Balance as at 30 Additions Consumed Balance as at June 2023 /disposed of 30 June 2024 rw Frw Frw I FMw Frw Consumable stores 3,225,802 8,322,761 7,579,554 3,969,009 Total 3,225,802 8,322,761 7,579,554 3,969,009 15.2. Summary of physical assets reconciled to the fixed asset register Code Categories Opening Acquisition Disposed Total gross balance as of assets of/Transferred carrying at 30 June amount as 2023 at 30 June 2024 A B C D=A+B-C F'rF m -r -rw F--- --fm l----- -- --- --.... 343 Machineiy and 476,674,176 79,597,541.89 0 556,271,718 equipment Total 476,674,176 79,597,542 0 556,271718 A udited Financial Statements 29