RF BLC OFNA THE AUDITO-ERA ON CENTRE OF EXCELLENCE IN SUSTAINABLE AGRICULTURE AND AGRIBUSINESS MANAGEMENT FO TIEYEAR ENDED 30 JUE, 2024 EGETON UNIVERSITY N~OCV 2024 CESAAM EGERTON UNIVERSITY KENYA Project Name: Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Implementing Entity: EGERTON UNIVERSITY PROJECT CREDIT NUMBER: 5798-KE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDEDJUNE 30,2024 Prepared in accordance with the Cash Basis of Accounting Method under the InternationalPublic Sector Accounting Standards (IPSAS) Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. TABLE OF CONTENTS 1. Acronyms, Abbreviations and Glossary of Terms............................................................................ii 2. Project Inform ation and Overall Perform ance................................................................................. 1 3. Statement of Performance Against Project's Predetermined Objectives.........................................xvi 4. Environm ental and Sustainability Reporting..................................................................................xix 5. Statement of Project Management Responsibilities .......................................................................xxii 6. Report of the Independent Auditors on the Financial Statement of CESAAM Project.................xxiv 7. Statement of Receipts and Payments for the year ended 30th June 2024..........................................1 8. Statem ent of Financial Assets as at 30th June 2024 ...........................................................................2 9. Statement of Cashflow for The Year ended 30th June 2024 ..............................................................3 10. Statement of Comparison of Budget and Actual amounts for Year Ended 30th June 2024 ..............4 11. Significant A ccounting Policies ......................................................................................................... 5 12. N otes to the Financial Statem ents....................................................................................................12 13 . A n n ex e s ............................................................................................................................................ 18 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. 1. Acronyms, Abbreviations and Glossary of Terms WB World Bank CESAAM Centre of Excellence in Sustainable Agriculture andAgribusiness Management. VC Vice Chancellor ACE II Africa Center of excellence. ICPAK Institute of Certified Public Accountants of Kenya IPSAS International Public Sector Accounting Standards NT National Treasury OAG Office of the Auditor General PFM Public Finance Management PSASB Public Sector Accounting Standards Board DLIs Disbursement Linked Indicators Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. 2. Project Information and Overall Performance 2.1 Name and registered office Name: The project's official name is Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Overall Objective: Sustainable Agriculture and Agribusiness Management through capacitydevelopment, research and technology transfer for enhanced food security. Address: The project headquarters offices are; Egerton University, Nakuru County, Kenya.The address of its registered office is: Egerton University P.O. Box 536 - 20115 Egerton, Kenya. Contacts: The following are the project contacts Email: cesaam@egerton.ac.ke Website: cesaam.egerton.ac.ke Twitter: @CESAAM_EGERTON Facebook: CESAAM EgertonUniversity Mobile: +254725809214 | +254700822859 1 +254722831634 2.2 Project Information Project Start Date: The project start date is 04-07-2016 Project End Date: The project end date is 30.04.2024 Project Manager: The project manager is Prof. George Owuor Project Sponsor: The project sponsor is International Development Association 2.3 Project Overview Line Ministry/State The project is under the supervision of the Education Ministry. (State Department of the Department for University Education) Project Project number IDA Credit 5798-KE Strategic goals of the The strategic goals of the project are as follows: Project i) Capacity development along the Agricultural Value Chain in the Eastern and Southern Africa region, especially for the fragile and post conflict states. ii) To undertake innovative research, including use of biotechnology and limate smart agriculture, for increased crop and livestock productivity. iii) Enhance the capacity of the University's Agro-Science Park to assist Partner universities establish a similar model for incubation of Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. Project information and overall performance (continued) technological innovations. iv) Develop evidence based agricultural policy briefs and disseminate best practices through Agricultural Knowledge Centres in Egerton (CESAAM) and partner universities Achievement of Expected outputs include: strategic goals 1) Increased capacity to conduct quality training and research nationally and regionally. 2) Equipped research laboratories. 3) Increased innovation products. 4) Increased dissemination of agricultural best practices and evidence- based policy briefs. The cumulative impacts of these outputs are increased productivity along the value chain and improved food security. Other important CESAAM aims at leveraging fragile and post-conflict countries through background offering opportunities to their faculty and students. The program does this information of the through Post graduate training, Research, Retooling workshops, project Exchange programs, Summer schools and admission of students from these countries. Current situation that The project was formed to intervene in the following areas: The project was 1) Address Food insecurity and persistent hunger and poverty affecting formed to intervene poverty affecting about 33% of African population. 2) Occurrence of frequent droughts, rampant crop and livestock diseases, 3) Poor Policies and market information access. 4) Inadequate technical capacity and limited technologies and innovations to address emerging challenges including diseases and pests. 5) Climate change effects and inability to sustainably ameliorate the climate impacts. 6) Low involvement in Agri-entrepreneurship, particularly among the Youth Project duration The project was effective as from 24th August 2016 and is expected to run until 31 December 2023 plus a four months extension. iv Centre ofExcellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. Project information and overall performance (continued) 2.4 Bankers The following is the banker for the current year: (i) Kenya Commercial Bank (Egerton Branch) 2.5 Independent Auditor The project is audited by the Auditor General- Kenya. 2.6 Roles and Responsibilities In line with the Project Organogram, the Project Management is in two Levels: The CESAAM Steering or Management Core Team and Thematic Leaders. The Core teams are involved in day-to-day decision making, while thematic leaders are Professors drawn from different disciplines and which comes handy during project research thematic areas. Thus, the main management team is the core team as below: The CESAAM Project Management Team Names Title designation Key qualification Responsibilities Prof. Isaac 0. Vice Chancellor Professor of Overall governance and KibwagePh. D, HSC Pharmaceutical Chemistry Prof. George Owuor Centre Leader PhD in Agribusiness leadership issues at Prof. Samuel M. Deputy Centre University Level and Deputy Centre Leader- Mwonga Leader represent the Council and in charge of Academics Memberof the Prof. Josephine P. Steering Committee PhD in Agronomy Member of the Steering Ouma Committee in Charge of Overseeing Procurement Member of the Dr. Mary Omwamba Steering Committee PhD in Food science Member of the Steering Committee in charge of Logistics Gabriel Ndung'u Project MBA (Finance), Preparation of Accountant CPA-K financial statements Membercf the Prof. Joshua Ogendo Steering Committee PhD in Crop Protection In charge of Research and Innovation V Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. Project information and overall performance (continued) Partners with MoU Activities involved in: andAgreement signed Partners and 1. Community Action 1. Retooling of partnership involved: forRural facultystaff Development 2. Research & Innovation (CARD) 3. Exchange Programmes 2. Kenya Association 4. Product of Manufacturers development and (KAM) commercialization 3. Kenya Private 5. Internship Sector Akne opportunities for (KEPSA) Students 4. The Hive Limited 6. Benchmarking Limited and development 5. University of Rwanda of newand/or 6. University of Burundi existing programs 7. Nelson Mandela 7. Joint teaching and/or African Institute of co-supervision Science and 8. Joint events that Technology (NM- boosterresearch and AIST CREATES) capacity Building 8. Gulu University, 9. University of Juba, 9. Joint private Sector 10. Jaramogi Oginga engagement/mappi Odinga University of ng Science and 10. Development and Technology mounting of (JOOUST) short/skill-based 11. Virginia Tech, Courses 12. Pwani University, 11. Specialized 13. University of Namibia, Research 14. Florida A&M Opportunities University 12. Collaborative (FAMU) researchprojects 15. University of Edinburg 13. Joint proposal Writing 16. Zheij iang University 17. Nanjing Agricultural University 18. Kenya Agriculrural & Livestock Research Organization. (KALRO). 19. The Biosciences eastern and central Africa (BecA)-ILRI HubBeCA ILRI 20. The International Maize and Wheat vi - Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. Improvement Center (CIMMYT) 21. International Centre of Insect Physiology and Ecology (ICIPE). 22. Hand in Hand East Africa 23. Kenya Plant Health Inspectorate Service (KEPHIS) 24. Lian Farm Ltd vii Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024 Project information and overall performance (continued) 2.7 Funding summary The Project is from 2016 to 2024 with an approved budget of XDR 5,999,905 equivalent to KShs 619,490,191 Six hundred nineteen Million, four hundred ninety thousand, one hundred and ninety-one only as highlighted in the table below: Below is the funding summary: A. Source of Funds (Loan 5,99,905 619,490,191 lrkmatblpathAsociatn20165017 -- 1,090,82100 111,J95,000 hem bhlopmthsoc4n20180019 - - 845,458,04 85,477,343 liientW lDuopm Associn 2019K020 1,139,146.95 117,616,922 .I*-WDwbpnrAssoikO2K02 1,285,127.86 132,689,452 ______________ 11mbrd ~e~iir Assoc6li 02TO222 ______ 777,5713i 89,284,242 ______ ______ laiAxDevelpntAsocwn2022023 274,357.91 28,327,454 liodlAr o epm Associon 20231024 774,08135 104,500,983 TOTAL 5,999,905 619,490,191 6,176,566 660,491,395 (176,661) (41,001,24) (iCouterpertfunds _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ErIonuniv v . v 1,000,000 0 1,000,000 0 0 TAl 5M99,905 620,490,191 6,176,566 661,491,395 (176,61) (1,1,24 Vii Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024 Project information and overall performance (continued) B. Application of Funds (i) Loan International Development Association 6,397,011 660,491,395 592,806,104 655,548 67,685,291 ii) Counterpart unds Egerton university 35,63 3,678,822 2,688,05 9,59 990,763 Total 6,432,641 664,170,21 595,494,163 9,59 68,676,05 viii Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAA) Reports and Financial Statements for The Financial Year Ended June 30,2024 Project information and overall performance (continued) 2.8 Summary of Overall Project Performance; Disbursement Linked Results (DLR) during the Financial Year 2023/24 1. DLR 2.2 - CESAAM now has 240 graduate students- (MSc 168: PhD 72) - 52% female and 23% regional) and 63 graduated. 2. Total direct project beneficiaries - 750; includes an international conference, virtual forums, and training, research grants awarded, and short courses offered. 3. DLR 2.3 - CESAAM has fully achieved national accreditation. - International Accreditation: 2 Programs: MSc Food Science & MSc Animal Nutrition currently have undergone for international accreditation by ASIIN, waiting for the final report. 4. DLR 2.5: 214 publications in internationally refereed journals; this is fully achieved as per initial and re-structuring targets (20 publications in this quarter). Fully achieved 5. CESAAM jointly held an International Conference with Africa Farm Management Association (AFMA) in Nov 2021 in Nairobi and planning for another joint conference in September 2024. 6. CESAAM students presented their papers at the Africa Farm Management Association (AFMA) 12th International conference. 7. CESAAM students presented their papers at the Egerton University 14th Biennial International conference. 8. DLR 2.6: Exchange (A total of 111 supported and been verified. 9. DLR 2.7: on Externally generated revenue (Fully Achieved) 10. New projects in 2024: NEXUS Project and Food Safety Project funded by European Union. 11. DLR 2.8: on The Partnership for skills in Applied Sciences, Engineering and Technology (PASET) Benchmarking - Fully achieved 12. DLR 3.2 - 3.4: Financial Management, successfully verified for years 1,2 &3 with unqualified opinion. Disbursement for year 4 done. 13. DLR 4.1 - 4.2: Procurement: Procurement for the years 2022/23 and 2023/24 were completed. ix Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024 X Centre ofExcellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024 1. Safeguards actions Action Status Grievance Redress - An online GRM System set up. Available on CESAAM and University Mechanism websites - It is anonymous but an optional provision for a name and email is provided incase someone requires feedback - Students are sensitized on use An inclusive - CESAAM has a steering committee that comprises students, faculty CESAAM Steering members,industry partners, academic partners and co-opted members Committee when necessary. Students - Supervisors - FIVE consultative meetings have been organized to discuss supervision Consultative Meetings Co-supervision and - To help meet the need for regional research interventions and for advising ofgraduate dynamism,CESAAM shared with students' profiles of faculty students with partners members from partner university and research institutions to select supervisors - CESAAM has planned a joint supervisors and students' regional forum todiscuss matters relating to research in the region and student-supervisor relationship enhanced - CESAAM is in constant touch with the Graduate School and relevant academic units on students' progress and complaints. Social & Environmental- CESAAM's Social safeguards is also the Director University Welfare safeguards Services focal points and former Director Institute of Women, Gender and Development Studies atEgerton University. She is also an expert in sexual harassment. - The Environmental safeguards focal point is a certified environmentalist andformer immediate former Dean Faculty of Environment and Resource Development at Egerton University Special accommodation - Female students are now supported with special accommodation and and fund forstudent additional subsistence to cater for toddlers mothers Community dissemination - Dissemination workshops where students are sent back to places of workshops research todisseminate information to the community Asbestos disposal - CESAAM procured a NEMA-approved consultant who successfully executeddisposal of asbestos CESAAM Complex - There was a community engagement program where there were no objections to the building - CESAAM also presented and ESIA report that was approved by the World Bank, NEMA, County Government and CESAAM Steering Committee. The complex is now complete and the secretariat are operating at the complex. Research funding - The Steering Committee approved an increase in research funding for students. PhD now earns USD 12,000 for research and MSc USD 3,000 forresearch. Additional depending on the nature of research. xi Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. 2. Impact to date (on community, policy etc.) IMPACT Deliberate CESAAM now has a total of 240 students enrolled. Of this number 52% are female and support of 23%being regional students. female CESAAM also provides affirmative fund for female scientists (students) with toddlers. scientists Student Total enrollment: 240 enrollment to Female: 52% enhance Regional: 23% quality CLASS 2019 research in MASTERS PhD SUMMARY the region MALE FEMALE TOTAL MALE FEMALE TOTAL MSc & PhD NATIONAL 10 16 (62%) 26 05 04 (44%) 09 Male: 24 (41%) REGIONAL 07 10 (59%) 17 02 04 (67%) 06 Female: 34(59%) TOTAL 17 26(58%) 43 07 08 (53%) 15 SUB- TOTAL: 58 CLASS 2018 MASTERS PhD SUMMARY MALE FEMALE TOTAL MALE FEMALE TOTAL MSc & PhD NATIONAL 19 18 (49%) 37 09 08 (47%) 17 Male: 33 (49%) REGIONAL 03 07 (70%) 10 02 01(33%) 03 Female: 34(51%) TOTAL 22 25(53%) 47 11 09 (45%) 20 SUB- TOTAL: 67 CLASS 2017 MASTERS PhD SUMMARY MALE FEMALE TOTAL MALE FEMALE TOTAL MSc & PhD NATIONAL 20 12 (38%) 32 13 12 (48%) 25 Male: 43 (57%) REGIONAL 07 04 (36%) 11 03 04 (51%) 07 Female: 32(43%) TOTAL 27 16(37%) 43 16 16 (50%) 32 SUB- TOTAL: 75 CLASS 2016 MASTERS PhD SUMMARY MALE FEMALE TOTAL MALE FEMALE TOTAL MSc & PhD NATIONAL 04 07 (64%) 11 01 01(50%) 02 Male: 05 (38%) GIONAL 0 0 0 0 0 0 Female: 08 (62%) TOTAL 4 7 11 1 1 02 SUB- TOTAL: 13 SELF-PAYING STUDENTS MASTER PhD MALE fEMALE TOTAL MALE FEMALE TOTAL SUMMARY NATIONAL 09 15(63%) 24 1 0 1 Male: 11 (41%) REGIONAL 0 0 0 1 1(50%) 2 Female: 16 (59%) xii Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. TOTAL 9 15 24 2 1 3 SUB- TOTA L: 27 TOTAL: 240 It Regional CESAAM organized and hosted its 1st Regional Summer School for Graduate Summer Students. This, inour understanding, is the largest event that has brought School for together ACE II students in the agriculture field. Graduate Over 200 students participated from INSEFOODS, MaRCCI, Students CSABC, CREATES andCESAAM. High profile Meant to market the centre in the region. regional exhibitions Open/Field To train farmers on emerging agricultural technologies. CESAAM organized a days joint Seeds ofGold Field Day with Nation Media for farmers and industry at Egerton University. Over 400 participants and exhibitors attended. This was in January 2020. Skill-based Organized for the community, farmers and students. (Feed formulation, Research short courses Analytics for students, Proposal writing for students, Policy Brief Preparation course). Youth-led CESAAM students underwent direct outreach to farmers using the Seeds of Gold extension model ofextension. Community All students and faculty supported by CESAAM to carry out research are Dissemination expected to carry outdissemination workshops of research findings in their areas workshops of study. A dissemination workshop is planned post-COVID for 4 students who have graduated andcollected data in Kenya. 1st CESAAM CESAAM competitively awarded proposal research grants, which will be Competitive community orientedand that which must have policy implications, to faculty Research Grant members. A key criterion for selection was whether the proposal had a strong component on collaborationwith industry players. Regional Joint Sensitization visit CESAAM, INSEFOODS, Internet of Things, Rwanda sensitization College of Agricand Veterinary Medicine (Kenya, Tanzania and Rwanda) visits Disseminationof Side Events Held at the RUFORUM international Conference in Nairobi, best- practices Kenya. The side events were on social safeguards (sexual harassment in and policies HEls) and on Role of Partnerships inResearch and Academic Excellence Xiii Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024 Upcoming Activities. Activity Dates Purpose Short course training of farmers September, i Enhance capacity for farmers and 2024 community at large. Exchange programme October, 2024 Staff and students exchange programme to Virginia Tech University Community outreach programme November, Training of farmers on the farming. in Siaya County 2024 1. Key challenges and risks Issue/Risk Status and proposed action Procurement - Slow procurement process - Unwillingness of suppliers to supply items due to main university debts - CESAAM plans to have a suppliers' sensitization workshop to help themunderstand the different nature of the project. - Relatively high procurement staff turn-over - Procuring of the international institutions Risk of - Due to COVID-19 related delays and industrial action by extension for lecturers, studentsare likely to provide reasons for extension. students This will have financial implications on the centre xiv Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. 2. Sustainability of the Centre Action Status (including timelines) CESAAM is attracting Fee - 26 self-paying students now admitted at payingstudents CESAAM - 56 new applicants including those from the region Have CESAAM as a - A committee to over-see this directorate/institutionalization sustainability plan isalready set-up of the centre - Discussions are underway for this Research proposals for funding - Several groups supported to write proposals forfunding. - Externally generated funds attracted. - The centre has now attracted a sum of Ksh 282,607,761 as at at 30h June 2024. Regional gate-way for - CESAAM is positioning itself, through agriculturalinterventions partnership, as a regional gateway for agriculture-related interventions in the region. This is due to its regionalappeal because its presence in the region. Phase II Proposal writing - CESAAM together with 2 other Kenyan ACES (Insefoods - JOOUST & PTRE - Moi University) were involved in joint proposal writing for Phase Ilof ACE II. 2.9. Summary of Project Compliance: The centre has complied with the Egerton financial rules and regulations, the Public Finance Management Act (PFM Act 2012) and the Financing agreement with the development partners. Xv Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. 3. Statement of Performance Against Project's Predetermined Objectives The objective of the Project is to support the University to establish a center of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) through capacity development, research and technology transfer for enhanced food security. The Project shall finance eligible activities aimed at achieving the following Disbursement Linked Indicators (DLIs). (a) Regional specialization endorsed and institutional readiness (b) Excellence in education and research capacity and development impact (c) Timely, transparent and institutionally reviewed Financial Management (d) Timely and audited Procurement The following table specifies the categories of the proceeds of the grants and the allocations of the amounts to each DLI. Amount of the Financing Disbursement Linked Indicator Allocated expressed in US$) DLI 1: Regional specialization endorsed and 1,100,000 institutional readiness DLI 2: Excellence in education and research 4,300,000 capacity and development impact DLI 3: Timely, transparent and institutionally reviewed Financial 300,000 Management DLI 4: Timely and audited Procurement 300,000 TOTAL (US$) 6,000,000 xvi Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. The Center shall: a. Implement the Project in accordance with the Project implementation plan; b. Not assign, amend, abrogate or waive any of the provisions of the Project implementation plan without the Governments and the Association's prior written concurrence. c. Implement the project with due diligence and efficiency and in conformity with appropriate administrative, technical, financial, economic, environmental and social standards and practices and in accordance with the provisions of this Subsidiary Grant Agreement; d. Implement all contractual obligations with the Association and other implementation Agreements to which it is a party in such a manner as to protect the interest of the Government and the Association and to accomplish the purposes of the Financing; e. Prepare the relevant Project reports under the project; and Participate in the mid-term Review of the operations under the project which shall cover progress achieved in the implementation of the project and to implement the relevant recommendations of the mid-term review as agreed with the Association. f. Promptly inform the Government of any conditions which interfere or threaten to interfere with the progress of the project or the performance of its obligations under this Subsidiary Grant Agreement. Summary of achievement 0 DLR 2.2 - CESAAM now has 240 graduate students- (MSc 168: PhD 72) - (52% female and 23% regional). 100 (88 MSc and 12 Ph.D.) have been verified. Graduated = 63 (10 PhDs, 53-MScs: 40% female),- 31 Awaiting graduation. Total direct project beneficiaries - 630; includes an international conference, virtual forums, and training, research grants awarded, and short courses offered. O DLR 2.3 - CESAAM has fully achieved national and international Xvii Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. accreditation. Two programs have under gone International Accreditation: - MSc Food Science & MSc Animal Nutrition Ll DLR 2.4: 2 new partnership with Kentaste Coconut processor, Malindi Fruit processors, and AFMA (partnerships, is currently fully achieved) L DLR 2.5: 241 publications in internationally refereed journals; this is fully achieved as per initial and re-structuring targets (16 publications in this quarter). Fully achieved Ll DLR 2.6: Exchange (100%- A total of 111 supported out of whichl0 have been verified. Academic staff to JOOUST, 3 Academic Staff to Virginia Tech, 4 Academic staff to MaRCCI, Makerere, Uganda, 10 Ph.D. students to JOOUST and 3Ph.D students KALRO Muguga Research Centre. O DLR 2.7: Externally generated revenue (Fully Achieved) - To date attracted a total of Ksh 342,172,834 O DLR 2.8: on PASET Benchmarking - Fully achieved O DLR 3.2 - 3.4: FM, successfully verified for years 1,2 &3 with an unqualified opinion. U DLR 4.1 - 4.2: Procurement: 2022/2023 done with 78.9% compliance. xviii Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. 4. Environmental and Sustainability Reporting 1. Sustainability strategy and profile. The project is committed to implementing the following measures for it sustainability plan; 1. Proposal Development for new funding. New Projects Already earned USD 1.9 Million, e.g. a) IFC. 2021 on creating model farms - USD 290,000 b) Laser Pad Project-on ICT Block chain value chain system-USD 150,000 c) 7 County based value chain projects- Over USD -500,000 d) INCiTiS Food Project - Over USD 1,200,000 e) Future proposals will con through existing teams of experts already trained on fundable proposal development 2. Product development (Innovated Products ongoing development): * Animal feeds * Marmalade jam * Sorghum Bread (seed unit, flour targeting bakery & confectionery) 3. New Fee-Paying Cohort 2022/23- 10 PhD & 20 Msc in Popular programmes (Agribusiness, Animal Nutrition, Crop Protection and Food Science) CESAAM will link them for internships, research attachments and publications) 4. Popular paid Short Courses (Value Addition, Feed formulation, Poultry production, Dairy MgtCow Signal & Agribusiness Value chain Development, Conservation Agriculture) 5. Institutionalization of the Centre to the university structure. 2. Environmental performance The University shall carry out its Respective Part of the Project in accordance with the requirements of the Environmental and Social Management Framework (ESMF) dated April 18, 2016 and the Environmental and Social Management Plan, as appropriate, and except as the Government and the Association shall otherwise agree in writing. The University shall not amend or waive any provision of the safeguard instruments if any such amendment or waiver may, in the opinion of the Association, materially or xix Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. adversely affect the implementation of its Respective Part of the Project or the Project. The University shall in its progress report include progress made on compliance with environmental and social safeguard measures under the Project, giving details of measures taken in furtherance of the environmental and social safeguard and any conditions which interfere or threaten to interfere with the smooth implementation of the said plans and frameworks, and remedial measures taken or required to be taken to address such conditions. The university and the project have taken the following measures; a) Availability of waste disposal points within the CESAAM building b) CESAAM Building NEEMA approval plus World Bank approval for construction executed Further: waste disposal and safety gear followed c) CES Ethical Certificate for our Graduate students during their fieldwork. d) CESAAM students and staff participated in EMS public waste removal, tree planting and training e) CESAAM in collaboration with National Environmental Authority Disposed Asbestos successfully 3. Employee welfare The Project takes into account the gender ratio, stakeholder engagement through public participation. It manages staff careers, appraisal and reward system during Founder's Days, Mau X-Country among others guided by the following policies: 1. EU- Human Resource Policies and Procedures Manual, 2023 2. Training Policy, 3. Gender Policy 4. OSHA Policy 5. Staff Training and Development through retooling and exchange pograms. CESAAM Project through the university also adheres to the Occupational Safety & Health Act, 2007 (OSHA) through an established Committee. These policies are reviewed from time to time on need basis. xx Centre ofExcellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30,2024. 4. Market place practices a) Responsible Supply chain and supplier relations- The procurement of goods, works and consultancy services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with Annex II of the financing agreement. b) Responsible ethical practices The University shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines and the relevant laws of Kenya. c) Regulatory impact assessment The university and the project are committed to safeguard and citizen stakeholder's rights that's; a) Dignity. b) Non-discrimination. c) Equality. d) Autonomy. e) Accountability. f) Participation. g) Proportionality. 5. Community Engagements The project is committed to sharing it output and input with the community. The following events has so far been conducted; 1. Youth-led extension and 4-k club revival plan 2. Regional summer school for graduate students 3. Skilled based short courses for farmers 4. Open field days and communication dissemination 5. Thesis disseminations of best practice xxi Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 5. Statement of Project Management Responsibilities Centre leader for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) are responsible for the preparation and presentation of the Project's financial statements,which give a true and fair view of the state of affairs of the Project for and as at the end of the financial year (period) ended on June 30, 2024. This responsibility includes: (i) Maintaining adequate financial management arrangement and ensuring that these continue to be effective throughout the reporting period; (ii) Maintaining proper accounting records, which disclose with reasonable accuracy atany time the financial position of the Project; (iii) Designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statement, and ensuring that they arefree from material misstatements, whether due to error or fraud; (iv) Safeguarding the assets of the Project; (v) Selecting and applying appropriate accounting policies; and (vi) Making accounting estimates that are reasonable in the circumstances. The Vice Chancellor of Egerton University and the Centre leader for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) accept responsibility for the Project's financial statements, which have been prepared on the Cash Basis Method of Financial Reporting, using appropriate accounting policies in accordance with International Public Sector Accounting Standards. The Vice Chancellor of Egerton University and the Centre leader for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) are of the opinion that the Project's financial statements give a true and fair view of the state of Project's transactions during the financial year/period ended June 30, 2024, and of the Project's financial position as at that date. The Vice Chancellor of Egerton University and the Centre leader for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) further confirm the completeness of the accounting records maintained for the Project, which have been relied upon in the preparationof the Project financial statements as well as the adequacy of the systems of internal financial control. XXII Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 The Vice Chancellor of Egerton University and the Centre leader for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) confirm that the Project has complied fully with applicable Government Regulations and the terms of external financing covenants, and that Project funds received during the financial year/period under audit were used for the eligible purposes for which they were intended and were properly accounted for. Approval of the Project financial statements The Project financial statements were approved by the Egerton University Council on 26th September 2024 and signed by the Vice Chancellor of Egerton University and the Centre leader for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) on 26th September, 2024. Prof. Isaac 0. Kibwage Ph. D, HSC CESA Ag Chief Finance officer Vice Chancellor Name: Prof. George Owuor Name: CPA Charles Wanjohi. ICPAK Member Number: 8804 XXIII REPUBLIC OF KENYA HEADOUARTERS -lephone: +254-(20) 3214000 cmail: info@oagkenya.go.ke Anniversary Towers Website:www.oagkenya.go.ke Monrovia Street P.0 Box 3oo84-00100 OFFICE OF THE AUDITOR-GENERAL NAIROBI EnhancingAccountabitihy REPORT OF THE AUDITOR-GENERAL ON CENTRE OF EXCELLENCE IN SUSTAINABLE AGRICULTURE AND AGRIBUSINESS MANAGEMENT FOR THE YEAR ENDED 30 JUNE, 2024 - EGERTON UNIVERSITY PREAMBLE I draw your attention to the contents of my report which is in three parts: A. Report on the Financial Statements that considers whether the financial statements are fairly presented in accordance with the applicable financial reporting framework, accounting standards and the relevant laws and regulations that have a direct effect on the financial statements; B. Report on the Lawfulness and Effectiveness in Use of Public Resources which considers compliance with applicable laws, regulations, policies, gazette notices, circulars, guidelines and manuals and whether public resources are applied in a prudent, efficient, economic, transparent and accountable manner to ensure the Government achieves value for money and that such funds are applied for the intended purpose; and, C. Report on the Effectiveness of Internal Controls, Risk Management and Governance which considers how the entity has instituted checks and balances to guide internal operations. This responds to the effectiveness of the governance structure, risk management environment and internal controls, developed and implemented by those charged with governance for orderly, efficient and effective operations of the entity. A Qualified Opinion is issued when the Auditor-General concludes that, except for specific issues, the financial statements present a true and fair view in accordance with the applicable financial reporting framework. The Qualified Opinion indicates that the financial statements are to a large extent in agreement with the books of accounts and the underlying records, except for a few cases where material misstatements or omissions were noted in the books of accounts and the financial statements. The issues though material, are not widespread or persistent. The Qualified Opinion on the report on the financial statements should be read together with the report on the Lawfulness and Effectiveness in the Use of Public Resources, and the report on the Effectiveness of Internal Controls, Risk Management and Governance. Report ofthe Auditor-General on Centre ofExcellence in Sustainable Agriculture andAgribusiness Management for the year ended 30 June, 2024-Egerton University The three parts of the report are aimed at addressing the statutory roles anc' responsibilities of the Auditor-General as provided by Article 229 of the Constitution, the Public Finance Management Act, 2012 and the Public Audit Act, 2015. The three parts of the report when read together constitute the report of the Auditor-General. REPORT ON THE FINANCIAL STATEMENTS Opinion I have audited the accompanying financial statements of Centre of Excellence in Sustainable Agriculture and Agribusiness Management set out on pages 1 to 20, which comprise the statement of financial assets and liabilities as at 30 June, 2024 and the statement of receipts and payments, statement of cash flows and statement of comparison of budget and actual amounts for the year then ended and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 35 of the Public Audit Act, 2015. I have obtained all the information and explanations which to the best of my knowledge and belief, were necessary for the purpose of the audit. In my opinion, the financial statements present fairly, in all material respects, the financial position of Centre of Excellence in Sustainable Agriculture and Agribusiness Management as at 30 June, 2024 and of its financial performance and its cash flows for the yearthen ended, in accordance with International Public Sector Accounting Standards (Cash Basis) and comply with the Loan Agreement Credit Number 5798-KE dated 4 July, 2016 between International Development Association (IDA) and the Republic of Kenya and the Public Finance Management Act, 2012. In addition, the special Accounts statement present fairly transactions for the year, and the closing balance has been reconciled with the books of account. Basis for Opinion The audit was conducted in accordance with the International Standards for Supreme Audit Institutions (ISSAls). I am independent of the Centre of Excellence in Sustainable Agriculture and Agribusiness Management in accordance with ISSAI 130 on the Code of Ethics. I have fulfilled other ethical responsibilities in accordance with the ISSAI and in accordance with other ethical requirements applicable to performing audits of financial statements in Kenya. 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 judgement, are of most significance in the audit of the financial statements. There are no other key audit matters to communicate in my report. Report ofthe Auditor-General on Centre of Excellence in Sustainable Agriculture and Agribusiness Management for the year ended 30 June, 2024-Egerton University 2 Other Information The Management is responsible for the other information set out on page iii to xxiii which comprise of Project Information and Overall Performance, Statement of Performance Against Predetermined Objectives, Environmental and Sustainability Reporting and the Statement of Project Management Responsibilities. The Other Information does not include the financial statements and my audit report thereon. In connection with my audit on the Project's 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, 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. REPORT ON LAWFULNESS AND EFFECTIVENESS IN USE OF PUBLIC RESOURCES Conclusion As required by Article 229(6) of the Constitution, based on the audit procedures performed, I confirm that nothing has come to my attention to cause me to believe that public resources have not been applied lawfully and in an effective way. Basis for Conclusion The audit was conducted in accordance with ISSAls 3000 and 4000. The Standards require that I comply with ethical requirements and plan and perform the audit to obtain assurance about whether the activities, financial transactions and information reflected in the financial statements comply in all material respects, with the authorities that govern them. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROLS, RISK MANAGEMENT AND GOVERNANCE Conclusion As required by Section 7(1)(a) of the Public Audit Act, 2015, based on the audit procedures performed, I confirm that, nothing has come to my attention to cause me to believe that internal controls, risk management and governance were not effective. Report of the Auditor-General on Centre of Excellence in Sustainable Agriculture and Agribusiness Management for the year ended 30 June, 2024-Egerton University 3 Basis for Conclusion The audit was conducted in accordance with ISSAIs 2315 and 2330. The Standards require that I plan and perform the audit to obtain assurance about whether effective processes and systems of internal controls, risk Management and overall governance were operating effectively in all material respects. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Conclusion As required by International Development Association (IDA) Credit No. 5798-KE financing Agreement, I report based on my audit that; i. I have obtained all the information and explanations which to the best of my knowledge and belief, were necessary for the purpose of the audit. ii. In my opinion, adequate accounting records have been kept by the project, so far as appears from examination of those records: and, iii. The project's financial statements are in agreement with the accounting records and returns. The Financing Agreement requires that I report on the legal or regulatory requirements, or on performance information disclosed. These matters require expressing a separate opinion as to the Centre of Excellence in Sustainable Agriculture and Agrobusiness Management compliance with laws and regulations. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. Responsibilities of the Management and those Charged with Governance Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (Cash Basis) and for maintaining effective internal controls as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error and for its assessment of the effectiveness of internal controls, risk management and governance. In preparing the financial statements, Management is responsible for assessing the Project'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 is aware of the intention to cease operations. Management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 47 of the Public Audit Act, 2015. Report of the Auditor-General on Centre ofExcellence in Sustainable Agriculture and Agribusiness Management for the year ended 30 June, 2024-Egerton University 4 In addition to the responsibility for the preparation and presentation of the financial statements described above, Management is also responsible for ensuring that the activities, financial transactions and information reflected in the financial statements comply with the authorities which govern them and that public resources are applied in an effective way. The Project Management is responsible for overseeing the, Project's, financial reporting process, reviewing the effectiveness of how Management monitors compliance with relevant legislative and regulatory requirements, ensuring that effective processes and systems are in place to address key roles and responsibilities in relation to governance and risk management, and ensuring the adequacy and effectiveness of the control environment. Auditor-General's Responsibilities for the Audit My responsibility is to conduct an audit of the financial statements in accordance with Article 229(4) of the Constitution, Section 35 of the Public Audit Act, 2015 and the INTOSAI Framework of Professional Pronouncements (IFPP). The Framework requires that, in conducting the audit, I obtain reasonable assurance about whether the financial statements as a whole are free from material misstatements, whether due to fraud or error and to issue an auditor's report that includes my opinion in accordance with Section 48 of the Public Audit Act, 2015. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with IFPP 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. In conducting the audit, Article 229(6) of the Constitution also requires that I express a conclusion on whether or not in all material respects, the activities, financial transactions and information reflected in the financial statements are in compliance with the authorities that govern them and that public resources are applied in an effective way. In addition, I consider the entity's control environment in order to give an assurance on the effectiveness of internal controls, risk management and governance processes and systems in accordance with the provisions of Section 7(1)(a) of the Public Audit Act, 2015. Further, I am required to submit the audit report in accordance with Article 229(7) of the Constitution. Report of the Auditor-General on Centre of Excellence in Sustainable Agriculture and Agribusiness Management for the year ended 30 June, 2024-Egerton University 5 Detailed description of my responsibilities for the audit is located at the Office of the Auditor-General's website at: https://www.oaqkenya.go.ke/auditor-cenerals- responsibilities-for-audit/. This description forms part of my auditor's report. FCP CBS AUDITOR-GENERAL Nairobi 22 November, 2024 Report ofthe Auditor-General on Centre ofExcellence in Sustainable Agriculture and Agribusiness Management for the year ended 30 June, 2024-Egerton University 6 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. 7. Statement of Receipts and Payments for the year ended 30th June 2024 Note 1004 _____ _____ NO21. Cnmiaitdak ef Receis ad Receiptad TOTAL Receip and Receipts ad TOTAL piymcnt hyatiade plynnt Payment FROJEC LIFE contrked by byMthilpais colled by mak by third ie the ntity theaity p3ci Sh KShs Di Shs KSh REEPTS Traisefroi Govement elnk I 151747 _______ 17,478 476,543. A____ 7,54 3,61,.822 LoaRn h e"tna develomtpali 2 1]4,58083 _____ 104,908 28,327,51____ 28327,4v 660j91,395 erAtinced 6ads3 37,04182 37,651,182 401614 _____ 4,W6.671 32,0161 TOTAL RECIRTS I42iT64IF2,2,613 72,869,671 - 72p,867 94177,7 PAIAENTS______________ IAnsfers To Ok Goveand Entits 4 - 8881,00 Mfler GiEnt And Dufs And PqmEent 5 36,38H2,255 36,382,260@ 88,5 53,88951 ,554 25,80547 EceebHoInEcalionAnd Roseach 6 30,0960 30,0960 16,0360 16,43,960 31,18103 eh4gesPronioh dgiRoalRcachkTichqo 7 17,744,992 17,744,999 18.79,169 .18,79,169 1,1 8,367 Exteal eration OfRene 8 2832,752 282,70 1,I9,235 1,0935 9,53,975 Enhacq Itiond]Reains & Oprais 9 5,676,971 5,676,980 7,507,178 7,507,178 80,386,587 Iuely And Trnsprec Faciaaent 10 15,829,423 15,829,433 6,687,207 - 6,687,287 59,744,223 T0TAL lIIS 109,075995 V189,875995 104,8),03 - 1846603 849,611,53 S[RPLUM1EFICl 3294%,6488 (31,%,631) - (3096,631) 97,166,444 The accounting policies and explanatory notes to these financial statements are an integral part of the financial statements. 1 Prof. Isaac 0. Kibwage Ph.D, HSC CESAAM Centre Leader Ag Chief Finance officer Prof Isaacelr OName: Prof. George Owuor Name: CPA Charles Wanjohi ICPAK Member Number: 8804 1 - Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. Statement of Financial Assets as at 30th June 2024 Note 2023/24 2022/23 KShs KShs FINANCIAL ASSETS Cash and Cash Equivalents Bank Balances 11 83,788,775 54,416,503 Accounts receivables - Imprests and Advances 13 13,377,670 9,886,101 Total Cash and Cash Equivalents 12 97,166,445 64,302,604 TOTAL FINANCIAL ASSETS 97,166,445 64,302,604 FINANCIAL LIABILITIES Uncalimed Irnprest Refund 13 - 132,807 TOTAL FINANCIAL LIABILITIES - 132,807 NET ASSETS 97,166,445 64,169,797 REPRESENTED BY Fund balance b/fwd 14 64,169,798 96,166,429 Surplus/Deficit for the year 32,996,648 (31,996,631) NET FINANCIAL POSITION 97,166,445 64,169,798 The accounting policies and explanatory notes to these financial statements form an integral part of thefinancial statements. The financial statements were approved on 26th September, 2024 and signed by: Pro . Isaac 0. Kibwage Ph.D, HSC CESAAM C Leader Ag Chief Finance officer Vice Chancellor Name: Prof. George Owuor Name: C.P.A Charles Wanjohi ICPAK Member Number: 8804 2 Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. 9. Statement of Cashflow for The Year ended 30th June 2024 2023/24 2022/23 Note KShs KShs Receipts for operating activities Transfer from Government entities 1 517,478 476,543 Proceeds from domestic and foreign grants 2 - - Other Attracted funds 3 37,054,182 44,065,674 Total Receipts 37,571,660 44,542,217 Payments for operating activities Transfers to Egerton University 4 - Other Grants And Transfers And Payments 5 36,382,255 53,889,554 Excellence In Education And Research 6 30,609,602 16,443,960 Exchanges To Promote Regional Research &teaching 7 17,744,992 18,729,169 Extenal Generation Of Revenue 8 2,832,752 1,609,235 Enhancing Institutional Readiness & Operations 9 5,676,971 7,507,178 Timely And Transparency Financial Management 10 15,829,423 6,687,207 Total Payment 109,075,995 104,866,303 Net cash flow from operating activities (71,504,335) (60,324,085) CASHFLOW FROM INVESTING ACTIVITIES Acquisition of Assets 0 0 Net cash flows from Investing Activities 0 0 CASHFLOW FROM BORROWING ACTIVITIES Proceeds from Foreign Borrowings 2 104,500,983 28,327,454 Net cash flow from financing activities - NET INCREASE IN CASH AND CASH EQUIVALENT 32,996,648 (31,996,631) Cash and cash equivalent at beginning of the year 64,169,798 96,166,429 Cash and cash equivalent at END of the year 97,166,445 64,169,798 The accounting policies and explanatory notes to these financial statements form an integral part of the financial statements. The entity financial statements were approved on 26th September, 2024 and signed by: Prof. Isaac 0. Kibwage Ph.D, HS CESAA Ce eader Ag Chief Finance officer Vice Chancellor Name: Prof. George Owuor Name: C.P.A Charles Wanjohi ICPAK Member Number: 8804 3 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. J.Statement of Comparison of Budget and Actual amounts for Year Ended 30th June 2024 Receipts/Payments Item Original Budget Final Budget Actual on Budget Percentage of 2023/24 Adjustments 2023/24 Comparable Utiliation Utilization Basis 2023/24 Difference 2023/24 2023/24 Receipts Kshs Kshs Kshs Kshs Kshs Proceeds from domestic and foreign grants 67,845,835 9,095,000 76,940,835 104,500,983 (27,560,148) 136% Other Attracted funds 50,600,000 - 50,600,000 37,054,182 13,545,818 73% Total Receipts 118,445,835 9,095,000 127,540,835 141,555,165 (14,014,330) 111% PAYMENTS World Bank Funding Kshs Kshs Kshs Kshs Kshs Excellence In Education And Research 24,905,000 4,500,000 29,405,000 30,609,602 (1,204,602) 104% Exchanges To Promote Regional Research & Teaching 19,213,915 1,000,000 20,213,915 17,744,992 2,468,923 88% External Generation Of Revenue 2,373,345 500,000 2,873,345 2,832,752 40,593 99% Enhancing Instutional Readiness & Operations 8,255,000 (1,405,000) 6,850,000 5,676,971 1,173,029 83% Timely And Transparency Financial Management 13,098,575 4,500,000 17,598,575 15,829,423 1,769,152 90% SUB-TOTAL PAYMENTS 67,845,835 9,095,0001 76,940,835 72,693,740 4,247,095 94% OTHER ATTRACTED FUNDS Kshs Kshs Kshs Kshs Kshs Other Grants and Transfers 50,600,000 - 50,600,000 36,382,255 14,217,745 72% GRAND TOTAL PAYMENT 11,445,35 9,095,000 127,540,835 109,075,995 18,464,840 86% Note: The significant budget utilization/performance differences in the last column are explained in Annex 2 to these financial statements. The Eligible Expenditure Programs (EEPs) for the financial year 2023/2024 was KShs 1,631,516,087 which consists of the teaching Staff remuneration as explained in Note 15 - (ii). Prof. Isaac 0. Kibwage Ph.D, HSC CESAAM CehreWeader Ag Chief Finance officer Vice Chancellor Name: Prof. George Owuor Name:C.PA Charles Wanjohi. ICPAK Member Number: 8804 4 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024. 11. Significant Accounting Policies The principal accounting policies adopted in the preparation of these financial statements are set outbelow: a) Statement of compliance and basis of preparation The financial statements have been prepared in accordance with Cash-basis International Public Sector Accounting Standards (IPSAS) financial reporting under the cash basis of Accounting, as prescribed by the Public Sector Accounting Standards Board (PSASB) and set out in the accounting policy note below. This cash basis of accounting has been supplemented with accounting for; a) receivables that include Imprests and salary advances and b) payables that include deposits and retentions. The financial statements comply with and conform to the form of presentation prescribed by the PSASB. The accounting policies adopted have been consistently applied to all the years presented. b) Reporting entity The financial statements are for the Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) under National Government of Kenya. The financial statements encompass the reporting entity as specified in the relevant legislation Public Finance Management Act 2012 (PFM Act 2012). These financial statements are part of the consolidated financial statements of Egerton University for the reporting period. c) Reporting currency The financial statements are presented in Kenya Shillings (KShs), which is the functional and reporting currency of the Project and all values are rounded to the nearest Kenya Shilling. Where exchange rate is required one USD will be converted at 101.45 as provided in the Project Appraisal Documents. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Significant Accounting Policies (continued) d) Recognition of receipts The Project recognizes all receipts from the various sources when the event occurs and the related cash has actually been received by the Project. i. Transfers from the Exchequer Transfer from Exchequer is be recognized in the books of accounts when cash is received. Cash is considered as received when payment instruction is issued to the bank and notified to the receiving entity. ii. External Assistance External assistance is received through grants and loans from multilateral and bilateral development partners. iii. Other receipts These include Appropriation-in-Aid and relates to receipts such as proceeds from disposal of assets and sale of tender documents. These are recognized in the financial statements the time associated cash is received. iv. Donations and grants Grants and donations shall be recognized in the books of accounts when cash is received. Cashis considered as received when a payment advice is received by the recipient entity or by the beneficiary. In case of grant/donation in kind, such grants are recorded upon receipt of the grant item and upon determination of the value. The date of the transaction is the value date indicated on the payment advice. v. Proceeds from borrowing Borrowing includes Treasury bill, treasury bonds, corporate bonds; sovereign bonds and external loans acquired by the Project or any other debt the Project may take on will be treated on cash basis and recognized as a receipt during the year they were received. 6 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Significant Accounting Policies (continued) vi. Undrawn external assistance These are loans and grants at reporting date as specified in a binding agreement and relate to funding for the Project currently under development where conditions have been satisfied or their ongoing satisfaction is highly likely and the project is anticipated to continue to completion. An analysis of the Project's undrawn external assistance is shown in the funding summary e) Recognition of payments The Project recognizes all payments when the event occurs and the related cash has actually been paid out by the Project. i. Compensation of employees Salaries and Wages, Allowances, Statutory Contribution for employees are recognized in the period when the compensation is paid. ii. Use of goods and services Goods and services are recognized as payments in the period when the goods/services are consumed and paid for. If not paid for during the period where goods/services are consumed, they shall be disclosed as pending bills. iii. Interest on borrowing Borrowing costs that include interest are recognized as payment in the period in which they incurred and paid for. iv. Repayment of borrowing (principal amount) The repayment of principal amount of borrowing is recognized as payment in the period in which the repayment is made. The stock of debt is disclosed as an annexure to the consolidated financial statements. 7 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Significant Accounting Policies (continued) v. Acquisition of fixed assets The payment 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 payments and receipts 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 receipt and as a payment. A fixed asset register is maintained by CESAAM Project and a summary provided for purposes of consolidation. This summary is disclosed as an annexure to the consolidated financial statements. f) In-kind donations In-kind contributions are donations that are made to the CESAAM Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value received for in- kind contributions can be reliably determined, the Project includes such value in the statement of receipts and payments both as receipts and as payments in equal and opposite amounts; otherwise, the contribution is not recorded. g) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, 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 Central Bank of Kenya and at various commercial banks at the end of the financial year. For the purposes of these financial statements, cash and cash equivalents also include short term cash imprests andadvances to authorized public officers and/or institutions which were not surrendered or accounted for at the end of the financial year. 8 Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Significant Accounting Policies (continued) b) Restriction on cash Restricted cash represents amounts that are limited/restricted from being used to settle a liability for at least twelve months after the reporting period. This cash is limited for direct use as required by stipulation. Amounts maintained in deposit bank accounts are restricted for use in refunding third part deposits i) Imprests and Advances For the purposes of these financial statements, imprests and advances to authorized public officers and/or institutions which were not surrendered or accounted for at the end of the financial year is treated as receivables. This is in recognition of the government practice where the imprests payments are recognized as payments when fully accounted for by the imprest or Authority to Incur Expenditure holders. This is an enhancement to the cash accounting policy. Other accounts receivables are disclosed in the financial statements. j) Contingent Liabilities A contingent liability is: A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or A present obligation that arises from past events but is not recognized because: It is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; or The amount of the obligation cannot be measured with sufficient reliability. Some of contingent liabilities may arise from: litigation in progress, guarantees, indemnities. Letters of comfort/ support, insurance, Public Private Partnerships, The Entity does not recognize a contingent liability but discloses details of any contingencies in the notes to the financial statements unless the possibility of an outflow of resources embodying economic benefits or service potential is remote. There were no contingent liabilities in the year. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statementsfor the Financial Year Ended June 30, 2024 Significant Accounting Policies (continued) k) Contingent Assets The Entity does not recognize a contingent asset, but discloses details of a possible asset whose existence is contingent on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Entity in the notes to the financial statements. Contingent assets are assessed continually to ensure that developments are appropriately reflected in the financial statements. If it has become virtually certain that an inflow of economic benefits or service potential will arise and the asset's value can be measured reliably, the asset and the related revenue are recognized in the financial statements of the period in which the change occurs. 1) Pending bills Pending bills consist of unpaid liabilities at the end of the financial year arising from contracted goods or services during the year or in past years. As pending bills do not involvethe payment of cash in the reporting period, they recorded as 'memorandum' or 'off- balance' items to provide a sense of the overall net cash position of the Project at the end of the year. When the pending bills are finally settled, such payments are included in the statement of receipts and payments in the year in which the payments are made. rm) Budget The budget is developed on a comparable accounting basis (cash basis), the same accounts classification basis (except for accounts receivable - outstanding imprest and clearance accounts and accounts payable - deposits, which are accounted for on an accrual basis), and for the same period as the financial statements. The Project's budget was approved as required by Law and National Treasury Regulations, as well as by the participating development partners, as detailed in the Government of Kenya Budget Printed Estimates for the year. The Development Projects are budgeted for under the Ministries, Departments and Agencies MDAs but receive budgeted funds as transfers and account for them separately. These transfers are recognized as inter-entity transfers and are eliminated upon consolidation. A high-level assessment of the Project's actual performance against the comparable budget for the financial year/period under review has been included in an annex to these financial statements. I 0 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Significant Accounting Policies (continued) n) Third party payments Included in the receipts and payments, are payments made on its behalf by to third parties in form of loans and grants. These payments do not constitute cash receipts and payments and are disclosed in the payment to third parties' column in the statement of receipts and payments. During the year no funds were received in form of direct payments from third parties. o) Exchange rate differences The accounting records are maintained in the functional currency of the primary economic environment in which the Project operates, Kenya Shillings. Transactions in foreign currencies during the year/period are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statements of receipts and payments. p) Comparative figures Where necessary comparative figures for the previous financial year/period have been amended or reconfigured to conform to the required changes in financial statement presentation. q) Subsequent events There have been no events subsequent to the financial year/period end with a significant impact on the financial statements for the year ended June 30, 2024. r) Prior period adjustments Material prior period errors shall be corrected retrospectively in the first set of financial statements authorized for issue after their discovery by: (i). restating the comparative amounts for prior period(s) presented in which the error occurred; or (ii). If the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and net assets/equity for the earliest prior period presented. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. 2.Notes to the Financial Statements 1. Transfers from Government entities The counterpart funding and other receipts from government is as follows: 2023/2024 2022/2023 Cumulative KShs KShs to-date Other transfers from government entities Egerton University 517,478.45 476,543.20 2,994,022 Refund by Egerton university - I - 684,800 517,478.45 1476,543.20 3,678,822 2. Proceeds from Domestic and Foreign Grants During the 12 months to 30 June 2024 we received funding from development partners in form of loansnegotiated by the National Treasury donors as detailed in the table below: Datereceived Amntmlin Ianrceivedli Loansreived Total anount iKShs PROJECT SSD casb as direct LITE SSD KSlu KSks FY2023/24 FY202223 FY2020121 FY201920 FY2018119 F12017118 F2016117 TOTAL 1 wor Ba 121612016 1,080,823 111,595,000 0 0 0 0 0 111,595,000 111,595,0 11tWokBu 5112/2018 2,510 259,167 0 0 0 0 259,167 0 259,167 11 World5/212019 12,94 1,315,641 0 0 0 0 1,315.641 0 1,315,641 71 Worm BA 2412019 830,000 83,902,535 0 0 0 0 13,902.535 0 83:902,535 T1 Worl BA 247/2019 510,104 52030.625 0 0 0 52030,625 0 0 52,030f625 11f Worm BAt 12/11/2019 643,003 65,586.290 0 0 0 65.516,298 0 0 65,586.290 TIr World Bank 1812021 1,285,128 132,689,452 0 0 132689,452 0 132,689,452 11 World Bank 21203/2022 726.392 75,000o 0 75,000.000 75,000,000 1t W4 Bark 5/4/2022 51,179 5,204,242 0 5,234,242 5,294,242 Tlr Word Ban 174/2023 274,358 28.327,454 0 28.327,454 28327,454 TIr World Baik 13/112023 426.745 44,061,451 0 44,061,451 44,061,451 a World Bark 9/5/2024 585371 60,439.532 0 60,439,532 0,439,532 Total 16,42861 660,491,395 104,00,93 2827,454 3084,242 132,689,452 117616,92 85477,43 111,5950 660491,95 3. Other Attracted Funds FY 202324 FY 2022/23 Receipts Receipts Total Receipts Receipts Receipts Total Receipts PROJECT controlled controlled by controlled by controlled by LIFE by the entity third parties the entity in third parties in Cash Cash KShs KShs KShs KShs KShs KShs KShs School Fees and related fees 103,000 0 103,000 648,784 0 648,784 3,483,745 Other Research Projects 0 36,951,182 36,951,182 - 43,416,890 43,416,890 279,124,016 -Total 000 182 3704182 43.416.890 4 28 61 12 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. NOTES TO THE FINANCIAL STATEMENTS (Continued) 4. Transfers to Other Government Entities. During the 12 months to 30 June 2024, there were no transfers TO other Government entities. FY 2023/24 FY 2022/23 PROJECT LIFE Payments made Payments Total Payments Payments Payments Total Payments by the Entity in made by third made by the made by third Cash parties Entity in Cash parties K Shs K Shs K Shs K Shs K Shs K s hs KS Transfers to Egerton Unversity - 0 - 0 1,000,000 TOTAL 0 - - 01,000,000 5. Other Grants and Transfers and Payments FY 2023/24 FY 2022/23 Payments made by Payments made Total Payments made Payments made Total Payments PROJECT the Entity in Cash by third parties Payments by the Entity in by third parties LIFE Cash KShs KShs KShs KShs KShs KShs ADB MOHEST 575,955 575,955 1,786,764 1,786,764 13,358,137 EGU OPERATION EXPENSES 103,000 - 103,000 559,654 - 559,654 786,119 NAPROCLA Project - - 8,071,496 Inter-university Council for East Africa 4,195,200 - 4,195,200 - - 8,623,200 Students FEES and Related expenses . - - - 999,225 UNEPCHINAMAProject 690,330 - 690,330 1,545,370 - 1,545,370 5,140,232 EGU-BOWIE USA Exchange Project 9,277,868 - 9,277,868 7,036,445 - 7,036,445 18,508,063 RWANDA HIGH COMMISSION - - - - 645,118 Kenya Climate Smart Agriculture Projects(KCSAP) 3,027,329 - 3,027,329 25,424,001 - 25,424,001 81,226,686 LASER Project - - - 2,092,200 - 2,092,200 7,816,048 GLOBAL SCOPE Project - - - 3,960,926 LOCUST MASS project - - 176,128 NRF PROJECT DR MESHAC OBONYO 255,531 255,531 255,531 NMK ALOE Project - 1,240,657 POULTRY VALUE CHAIN Project 2,082,000 - 2,082,000 - 4,447,704 NARIGP APICULRURE Project 1,760,944 - 1,760,944 389,664 389,664 2,507,308 BHEARD Project 249,900 249,900 2,152,535 2,152,535 4,584,019 NARIGP DAIRY VALUE CHAIN VIHIGA Project - - - 3,285,500 - 3,285,500 3,605,500 NARIGP LOCAL VEGETABLE VALUE CHAIN VIHIGA Project - - - 2,017,165 - 2,017,165 2,223,165- INTERNATIONAL FINANCE CORPORATION Project 3,424,345 - 3,424,345 6,134,185 - 6,134,185 10,550,310 INCITIS Project 6,612,338 - 6,612,338 1,466,070 - 1,466,070 8,078,408 CHANGE THE GAME ACADEMY-DR 0. INGASIA 1,264,047 1,264,047 1,264,047 INDIGENOUS WILD FRUIT-DR 0. INGASIA 2,863,469 2,863,469 _2,863,469 Closed project - _ 64,873,902 TOTAL 36,382,255 - 36,382,255 53,889,554 - 53,889,554 255,805,469 6. Excellence in Education and Research FY 2023/24 (Ksh) FY 2022/23 (Ksh) Cumulative to-date (Ksh) Recruitment process, interviews & Short listing of students exercise 35,655 - 784,216 Support atleast 25 Ph.D. students 12,762,076 4,363,472 170,146,199 Support atleast 30 Msc. Students 10,677,351 7,548,838 143,426,667 Review & Development of Phd & Msc Curriculum - 1,015,420 5,572,720 Development of short courses for Private sectors upgrading - Agric value chain 336,505 - 4,334,628 Conduct short term courses on sustainable agric & agri business/value chain 6,798,015 3,516,230 15,919,150 Total 30,609,602 16,443,960 341,918,947 Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. NOTES TO THE FINANCIAL STATEMENTS (Continued) 7. Exchanges to Promote Regional Research & Teaching FY202324p(K(h) FY2022/23(Ksh) Cumulative to-date (Ksh) support staff & student presentation in int 5,772,299 1,032,759 11,835,773 Ph.D. students exchange fellowship 657,535 - 6,454,827 Staff supported in collaborated research projects - 1,568,575 12,529,357 Support publications on research output on peer reviewed journals 290,680 237,236 2,108,298 Conduct 2 theses dissemination workshops for 40 graduate students and 1 supervisors co 1,617,625 3,069,315 7,811,365 Support 3 Staff and 20 students to present their research output in local, regional and in in 3,499,015 2,570,443 10,510,363 Retooling workshop to build capacity of teaching staff - 1,546,845 12,584,145 CESAAM - 4 Staff exchange fellowship 4,075,180 3,497,935 9,659,071 CESAAM -Staff supported in collaborated research pjt - 2,055,060 3,015,460 programmes (Crop protection and Agribusiness) internationally accredited by accrediting 1,713,834 2,045,511 4,191,839 Establsih knowledge center - 204,650 204,650 Internship Support for students 60,000 246,000 7,736,905 Engage in consultative MoUs baesd meetings to come up with new MOuS with new partn 58,825 654,840 2,792,895 Total 17,744,992 18,729,169 101,182,360 8. External Generation of Revenue FY202314((sh) Y20223(Ksh) Cumulative to-date ( )Ks) Support research team to develop research proposal 2,832,752 1,609,235 9,573,967 Total 2,832,752 1,609,235 9,573,967 14 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. NOTES TO THE FINANCIAL STATEMENTS (Continued) 9. Enhancing Institutional Readiness & Operations FY2023/24 (Ksh) FY2022123 (Ksh) Cumulative to-date 1,375,5008,38,29h) Procure equipments for Cesaam research center and ICT upgrading 175,500 8,318,299 Procure assorted equipment - animal nutrition lab 393,265 3,883,340 Support Agroscience park 1,030,135 3,405,212 Marketing Cesaam Project and its programs (adverts, banners etc) 5,676,971 2,686,553 15,762,865 Cesaam steering committee, thematic research and training sub committees 2,021,725 8,895,385 Total 5,676,971 7,507,178 80,386,578 10. Timely and Transparency Financial Management FY2023/24(Ksh) FY2022/23(Ksh) Cumulative to-date (Ks h) Cesaam staff package (Salaries and wages) 4,111,325 2,263,725 16,155,092 Admistrative and office running 2,850,212 1,055,145 10,459,495 Renovation of post graduate and tatton demon - 144,430 2,849,377 local & regional Travel 7,987,081 3,223,907 29,399,444 Support of Audit and finance dept 880,805 880,805 Total 15,829,423 6,687,207 59,744,212 11. Bank Account Details FY2023/24 (Ksh) FY2022/23 (Ks h) KShs KShs CESAAM Project Account - KCB Bank no 1184060347 83,788,775 54,416,503 Total bank account balances 83,788,775 54,416,503 12. Cash and Cash Equivalents Carried Forward FY 2023/24 (Ksh) FY 2022/23 (Ksh) KShs KShs Bank accounts 83,788,775.26 54,416,502.78 Outstanding Imprests 13,377,670.00 9,886,101.40 Unclaimed imprest refund 0.00 132,806.70 Total 97,166,445 64,169,797 15 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. NOTES TO THE FINANCIAL STATEMENTS (Continued) 13. Outstanding Imprests and Advances Due Date of Amount Balance Balance Name of Officer or Institution Amount Taken surrender Surrendred 2023/2024 2022/2023 KSHs KSHs KSHs KSHs Outstanding imprests for the year JOSEPH KARIUKI MUGERA 91,920 21-Sep-23 91,920 0 91,920 MS HAFSAYUSSUF WALIM 158,010 30-Jun-23 158,010 0 158,010 MR GABRIEL WARIMA NDUNGU 240,000 12-Aug-23 240,000 0 240,000 PROF JOSEPHINE ACHIENG OUMA 65,405 11-Aug-23 65,405 0 65,405 PROF JOSHUA 0. OGENDO 433,915 23-Aug-23 433,915 0 433,915 PASCAL OJWANG OKWIRI 3,793,510 16-Sep-23 3,793,510 0 3,793,510 MR ERIC ROTICH KIPKEMOI 213,575 11-Aug-23 213,575 0 213,575 TOROITICH FAITH JEBET 713,180 13-Jul-23 713,180 0 713,180 KARIUKI ISAAC MAINA 939,585 13-Jul-23 939,585 0 939,585 OSCAR INGASLAAYUYA 2,272,825 31-Aug-23 2,272,825 0 2,272,825 DR DAVID KURLAWAMUKURU 346,606 31-Aug-23 346,606 0 346,606 MS FLORENCE IKHUMBAWAFULA 83,920 12-Sep-23 83,920 0 83,920 MS IY JELAGAT ROP 165,335 30-Sep-23 165,335 0 165,335 PROF JOSHUA OTIENO OGWENO 368,315 30-Sep-23 368,315 0 368,315 9,886,101 9,886,101 9,886,101 UNCLAIMED IMPREST RECOVERY GITAU RAPHAEL -25786.1 25-Jul-22 -25786.1 0 -25786.1 PASCAL OJWANG OKWNIRl -73057 16-Sep-23 -73057 0 -73057 - WILLY KIPRONO KOROS -25147.35 30-May-23 -25147.35 0 -25147.35 WANDULU ALEXANDER 0. -8816.25 21-Jul-22 -8816.25 0 -8816.25 -132,807 -132,807 - (132,807) MS PETRONILA SUPA OKHATO 489,700 19-Sep-2024 0 489,700 MRS JANE CHEROTICH MARIDANY 226,415 19-Sep-2024 0 226,415 MS ESTHER NAFULA SAMBASI 2,020,850 04-Sep-2024 0 2,020,850 MS FRIDAH MURUGI 92,565 24-Sep-2024 0 92,565 MS JEMIMAH KAMENE KAVULA 129,765 24-Sep-2024 0 129,765 MS HAFSA YUSSUF MAALIM 80,770 20-Jul-2024 0 80,770 MS WAMBUI JOYCE ONDIEKI 374,260 24-Sep-2024 0 374,260 CYRIL OCHIENG OUMA 742,525 19-Sep-2024 0 742,525 MS IVY JELAGAT ROP 233,125 18-Jul-2024 0 233,125 MS CAROLINE NZELI LELO 703,385 16-Aug-2024 0 703,385 JOAN GLORIA AKOTH OMORE 228,395 07-Aug-2024 0 228,395 PROF JOSEPHINE ACHIENG OUMA 330,865 24-Sep-2024 0 330,865 PROF JOSHUA 0. OGENDO 2,172,140 19-Sep-2024 0 2,172,140 PROF ANTHONY MACHARIA KINGORI 1,384,310 22-Aug-2024 0 1,384,310 ELICK ONYANGO OTACHI 2,000,000 19-Sep-2024 0 2,000,000 MR FRANCIS W. NDUNGU 835,320 27-Jul-2024 0 835,320 MR JOHN G. KAMAU 267,000 24-Sep-2024 0 267,000 JEPKOSGEI KIPSOI 254,680 06-Sep-2024 0 254,680 MRS RAHAB WANJIRU MBURU 311,600 18-Jul-2024 0 311,600 MR PETER KUTONDO MURUNGA 500,000 03-Aug-2024 0 500,0001 Accounts imprests outstanding 13,377,670 - 13,377,670 9,753,295 16 Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. NOTES TO THE FINANCIAL STATEMENTS (Continued) 14. Fund Balance Brought Forward FY 2023/24 FY 2022/23 KShs KShs Bank accounts 83,788,775 54,416,503 Outstanding imprests and advances 13,377,670 9,753,294.70 Total 97,166,445 64,169,797 15. OTHER IMPORTANT DISCLOSURES (i) PENDING ACCOUNTS PAYABLE There were no pending accounts payable as at the end of the year, all bills were settled as at 30t1h June 2024 (ii) Eligible Expenditure Programs Payroll for The Teaching Staff 2023/24 Gross Pay Per Gross Pay Per S/No Designation category annum2023/2024 annum2022/2023 Ksh Ksh 1 Professor 149,317,851 92,753,783 2 Adjucnt Proffesor 29,348,220 17,128,821 3 Associate Proffecsor 244,953,728 196,787,458 4 Senor lecturer 312,993,212 241,079,537 5 Lecturer 766,804,561 550,720,266 6 Assistatnt lecturer 79,464,431 134,905,505 7 Tuitorial Fellow 48,634,084 23,196,093 Grand Total 1,631,516,087 1,256,571,463 The eligible expenditure programs includes the payroll for the teaching staff for Egerton University for the year 2023/24 as a requirement from the World Bank. 17 Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. A.Annexes Annex 1: Prior Year Auditor-General's Recommendations The CESAAM Project did not have unresolved issues raised by external auditor. Prof Isaac 0. Kibwage Ph.D, HSC C AAM CentrLeader Vice Chancellor Name: Prof. George Owuor. 1 8 Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for The Financial Year Ended June 30, 2024. ANNEX 2 - Variance explanations - Comparative Budget and Actual amounts for Current FY Recdpts/Payeitstan OrignilBudget FinalBudget Adualon ude Percestageof 202324 Ad m 2023/24 Comparable Utiliatiom Utiliation Bas202324 Dilffresce 2023/24 2023/24 Receipts Ksks KsS Ksis Ksks Ks Prceeds fran domes&ic ad foreign grants 67,845,835 9,095,00 76Q940,835 104,50,983 (27,560,148) 136% OtherAtractedfunds 50,600,000 - 50,600,000 37,054,182 13,545,818 73% Total Recep 118A45,835 9,095,00 127,5%0,835 141,555,165 (14,014,330) 111% PAYMENTS Worl BUkFeding Ksks Kss K*s Ks KAs Excelcce In Educatia And Rearch 24,05,000 4,500,I0O 29,405,00 30,609,602 (1,204,602) 104% Exchanges To Promote Reonal Research & Teaching 19213,915 1,000,000 20213,915 17,744,92 2,468,923 88% External Generationf Revenue 2373,345 50,00 2873,345 2,832,752 40,593 990 Enhancing 1isltonal Readiness & erations 8255,000 (1,405,000) 6,850,000 5,676,971 1,173,029 83% Timely And Transprencyhancial Mlagament 13,098,575 4,50,00 17,598,575 15,829,423 1,769,152 90% S0-TOTAL PAYMENIS 6745,835 9,0,000 76,940,835 72,693,740 4,47,095 94% OTHERATTRACED FUNDS Kss Ksks K1s Ksks KAs Other Grants and Transfers 50,600,00 50,600,000 36382,55 14,217,745 72% GRANDTOTALFAYMENT 1185,835 9,0,O 127,540,835 109,075,9 18,46,840 86% Explanation to the variances. Proceeds from domestic and foreign grants were Ksh 104,500,983, the project achieved all the set DLR and as such after verification of the achievements, the project received the final disbursements from the World bank. These funds will be used for sustainability of the Center in line with the project objectives. Other attracted funds were at 72% of the expected funds. The joint projects used funds brought forward from the previous years to carry out their activities. The underutilization for the other grants and transfers by 28% was as a result of the difference in the work plans for other projects which form part of attracted funds from joint research projects. The Overall performance is at 86 percent utilization as most of the planned activities were undertaken. 19 Centre ofExcellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024. ANNEX 3 - Summary of Fixed Asset Register Asset class "Disposals *Punhases/Addi in the Year ons in the Year Opening Cost (KShs) (KShs) Closing Cost (KShs) 202324 (KShs) 202223 2023124 2023124 (a) (b) (c) (d)= (a)+ (b4c) Transport equipnt 13,000,000 0.00 13,000,000 Office equipment, fiinre ad ftting 16,561,480 0.00 16,561,480 Buldig 15,793,467 1 0.00 15,793,467 TOTAL 45,354,947 - 45,354,947 Centre of'Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 ANNEX 4 - Pictorial Representation of Key Past Activities Pictorials Infrastructure Teaching and research facilities improved. CESAAM continue to utilize project funds to improve conditions of teaching and research facilities. This includes, construction or renovation works, equipping of laboratories, resourcing of libraries and provision of digital learning facilities. Constructed Facility CESAAM Complex Building Features Item description Number Seating capacity Offices 7 14 Resource centre 1 25 Reception area 1 2 Server roomt 1 1 Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 CESAAM boardroom .:e Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAAJ) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Resource centre Renovated Facilities that are newly Total Number Seating rehabilitated/equipped at the Capacity higher education institutions Lecture Halls and 5 300 supported by the project. Seminar Rooms Hostels 50 100 Laboratories and 4 200 Workshops Farm fields (Field 2 8 seven and Tatton park) Available zoom facility for the 10 departments support for video conferencing Biotechnology Laboratory Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Purchase la boratory equipment for biotechnology laboratory; No. Equipment 1 Oven -Hot Air Sterilizer -Soil/sand 2 Auto clave 3 Laboratory Autoclave -Bench- top 4 Weighing balance -Electronic 5 Leaf Chlorophyll meter 6 Balance - Analytical 7 Grain Moisture meter 8 Leaf area meter-Portable 9 Gas analyzer -Portable 10 Gas analyzer -Portable 11 TDR Soil Moisture series 12 Sieve- Seed Grading Dairy, food science laboratory equipment No. Equipment I laboratory equipment 2 Gas Production Sensor 3 Oven -Temp 4 Analytical Balance 5 PH-Meter 6 Distillation Apparatus 7 Scrubber-Digestion accessories Centre ofjExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 8 KJEDAHL Digestion Apparatus Animal science laboratory equipment's Mycotoxin Aflotoxin Kit Analyser Using CESAAMProcured Sample Analyzer, Dr. Robert Gesimba guides his PhD students Anne Musonye (from Uganda) through procedures for the use of the Equipment. Renovation of Postgraduate Classes 1. Dairy, Food Science and Technology PhD and Masters classes Renovation done; Electrical fitting, painting and purchase of new furniture. No. Postgraduate Class Capacity Type of Renovation AGEC-AGBM Masters & PhD MSc Class-42 New furniture, internet connectivity Classes PhD Class - 16 and electrical and painting. Dairy, Food Science and MSc Class-24 New furniture, internet connectivity Technology MSc & PhD Classes, PhD Class - 16 and electrical and painting. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Crops, Horticulture and Soils MSc MSc Class-60 New furniture, internet connectivity and PhD Classes PhD Class - 16 and electrical and painting. Anima Science Department MSc Class-20 New furniture, internet connectivity PhD Class - 6 and electrical and painting. Dairy, Food Science and Technology renovated Masters Class. Dairy, Food Science and Technology renovated PhD class Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Renovation of Accommodation Facilities for CESAAM Students Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Isabelle using some of the facilities (Fridge and cooking facility) provided by CESAAM linkages with industry (specify areas of collaboration, include number students benefitted from internships and staff placement); CESAAMs strategic partnerships with industry leaders have proven instrumental in advancing agricultural best practices. Through the signing of eight Memoranda of Understanding (MOUs) with these industry partners, CESAAM has fostered an environment of collaboration that is mutually beneficial. One of the significant advantages of these partnerships is the provision of invaluable internship opportunities. CESAAM has facilitated 209 internship placements for students, with a minimum duration of three months. These internships have not only provided students with practical experience but have also presented opportunities for them to actively contribute to industry research initiatives. Several industry partners have recognized the potential of these students and integrated them into their research activities, enabling them to make substantial contributions to ongoing projects. Summary of internship placement No. Description No. (Internship placement 1. Students 209 2. Staff 24 Centre of'Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements fbr the Financial Year Ended June 30, 2024 III The Principal Secretary, State Department for University Education and Research Amb. Simon Nabukwesi officially opens the CESAAM Complex on 4 February 2022. Amb. Nabukwesi toured various CESAAM Project activities immediately after chairing the African Centres of Excellence (ACE) Steering Committee meeting at Main Campus in Njoro. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Images of Short Course 4 K-Club Youths after Training in Honey Value Addition & Poultry Mgt Kajiado, County trainees with products they madle after the trairung Nakuru County Dairy Trainees Youth-led extension & 4-K Club revival plan 15" Regional Summer School for Graduate Studernts Sifl-based short courses Open Field days/community Dissermination Theses dissemination of best-practices Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Training on social safeguards for our amazing front office staff Enhancing skills in customer relations, communication, time management, record keeping, and more. Proud of our team for their dedication to excellence. CESAAM strengthens collaboration with Bowie State University, USA. Advocating for continuous partnership to ensure the sustainability of the project. Centre ojExcellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 CESAAM supporting Innovation. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 COLLEtE E ABRICUL[TUR E AND LIFE SCWMNC[S Vll GLOML G mun;conn CESAAM *Design a pitch, technical issue brief, and an op-ed on science-based recommendations to the 2023 GAP tReport Recommendations hPitchto a panel of virtual and in-person judges and audience s Receive mentorship from an industry- based coach • Winning team will travel to the US in October 2024 EMAIL INQUIRY: odickson@vt.edu cesiamegerton.ac.ke CESAAM collaborate with Virginia Tech University for Science Communication Symposium Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 CESAAM awarded Food Safety Project funded by the European Union 4,> CESAAM partnership with AFMA to hold an International Conference in East London, South Africa. Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Farmers training in Siaya CESAAM Graduating class of 2024 Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 5. CESAAM website (cesaam.egerton.ac.ke) APPPENDICES i. Statement of designated/ special account ii. Statement of Reconciliation of Special Account iii. Bank Reconciliations. iv. Cash survey report. Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Appendix 1. Statement of designated/ special account SPECIAL ACCOUNT STATEMENT For period ending 30th JUNE, 2024 Account No. 1000331704. Depository Bank CENTRAL BANK OF KENYA. Address CENTRAL BANK OF KENYA. Related Loan ESAHECE ACE I CR NO. 5798 Credit Agreement Currency USD Part A - Account Activity Beginning balance of 1st July. 2023 as per C.B.K Ledger Account 51,689.98 Add: Total Amount deposited by World Bank 2,00,344.94 Total Interest earnings if deposited in account Total amount refunded to cover ineligible expenditure Deduct Total amount withdrawn 2 934.92 Total service charges if not included above in amount withdrawn Ending balance on 30th June,2024 0.00 AUTHORISED REPRESENTATIVE SIGNATURE: CENTRAL BANK OF KENYA DATE AUTHORISED REPRESENTATIVE EXTERNAL RESOURCES SIGNATURE: EPARTMENT-TREASURY DATE Sc~4. NOTE:The ending balance as per Central Bank of Kenya Ledger Accourt and the off-shore Special Account as at 30th June.2024 have been reconciled and a copy of the supporting Reconciliation Statement Io attached. Centre ofExcellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Appendix 2. Statement of Reconciliation of Special Account. EASTERN AND SOUTHERN AFRICA HIGHER EDUCATION CENTRES OF EXCELLENCE - ACE II STATEMENT OF SPECIAL (DESIGNATED) ACCOUNT RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2024 Credit No.: IDA CREDIT NO. 57980-KE Bank Account No.: 1000331704 held with CENTRAL BANK OF KENYA NOTES AMOUNT AMOUNT USD US0 I Amount advanced by IDA 17,645,687.65 Less: 2 Total amount documented 17,645,687.65 3 Outstanding amount to be documented Represented by: 4 Ending Special account Balance as as 30 June 2024 5 Amounts claimed but not credited as at 30 June 2024 6 Amounts withdrawn and not claimed 7 Service Charges (if not included in lines 5 and 6 above) 8 Interest earned (if included in Special Account) 9 Total advance to Special Account Year ended 30 June 2024 Discrepancy between total appearing on line 3 and 9 Notes: I Explain the discrepancy between totals appearing on lines 3 and 9 above (e.g amount due to be refunded to cover ineligible expenditures paid fron the Special/Designated Account) 2 Indicate if amount appearing on line 6 is eligible for financiang by IDA and provide reasons for not claiming the expenditures The amount appearing on line 6 is eligible for financing by World Bank and shall be documented in subsequent IFRs AUTHORISED REPRESENTATIVE RESOURCE MOBILISATION DEPARTMENT DATE:14ot" *4- THE NATIONAL TREASURY Centre of Excellence in Sustainable Agriculture andAgribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Appendix 3. Bank Reconciliation statement. ýRE30 EGERTON UNIVERSITY CESAAM PROJECT BANK RECONOWATION STATEMENT KCB ACCOUNT 1184060347 FOR THE MONTH ENDED JUNE 2024 AMOUNT AMOUNT 1. Cash Book Reconefled Balance as at 30.06,2024 83,788 77 5.2 Add: Unpresented Cheques 1,530,468.00 Add: Unreceipted Deposits 14.05.2024 MPESA 648.00 06.06 2024 STATE TREASURY 10,145,395.00 10,146,043 00- 95,465,286.26 Reconced Cash Book Balance as at 30.06.2024 Reconcied Bank Statement Balance as a 3006.2024 P 85,319,243.26 Add: Unreceipted Deposits 10,146,04300 Gosing Bank Balance as at 30.06.2024 95,465,286.26 Preipared by: Getray Shijenje CPA (K),CP.M Accountant Research & Extension. ignatre Date: CHEF F1N4NCE CF F ER Approved by: Charles K. Wanjohi CPA (K) Deputy Finance Officer Signature Date: Centre of Excellence in Sustainable Agriculture and Agribusiness Management (CESAAM) Reports and Financial Statements for the Financial Year Ended June 30, 2024 Appendix 4. Cash survey Report. EGERTON UNIVERSITY CIASH SURVEY (COUNT N.. ... BREAK DOWN - I 34L(li .Kshs 0. ... Kshs 20-0Kshs .... .001. Kshs .... Kshs TO l CiAS I %...N HAND... Kshs .REPARED BY SIGNATURE D,ATE. HMARD - F SRVEV SIGNATUREk ........A..... . I 4 l SI TURE DA I "Transforming Lives Through Quality Education"