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Audited Consolidated Financial Statements for the Year Ended 30Th THE UNITED REPUBLIC OF TANZANIA AUDITED REPORTS BY THOSE CHARGED WITH GOVERNANCE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2020 Government City – Mtumba, Treasury Avenue, P. O. Box 2802, 40468 Dodoma, Tanzania. March, 2021 THE GOVERNMENT OF TANZANIA REPORTS BY THOSE CHARGED WITH GOVERNANCE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2020 TABLE OF CONTENTS AUDITED REPORTS BY THOSE CHARGED WITH GOVERNANCE ..............................................................i LIST OF ABBREVIATIONS AND ACRONYMS .................................................................................................. I LIST OF TABLES ........................................................................................................................................... III GENERAL INFORMATION .............................................................................................................................. 1 STATEMENT BY THE HONORABLE MINISTER ............................................................................................. 2 STATEMENT BY THE PAYMASTER GENERAL .............................................................................................. 5 MANAGEMENT RESPONSIBILITY ONTHE CONSOLIDATED FINANCIAL STATEMENTS ............................. 6 DECLARATION OF THE HEAD OF FINANCE AND ACCOUNTING UNIT ........................................................ 7 COMMENTARY ON THE FINANCIAL STATEMENTS ...................................................................................... 8 AUDITED CONSOLIDATED FINANCIAL STATEMENTS ............................................................................. 19 STATEMENT OF FINANCIAL PERFORMANCE ............................................................................................ 20 STATEMENT OF FINANCIAL POSITION ...................................................................................................... 21 STATEMENT OF CHANGES IN NET ASSETS .............................................................................................. 22 CASH FLOW STATEMENTS ......................................................................................................................... 23 STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS ..................................................... 24 1. GENERAL INFORMATION .................................................................................................................. 25 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION ....................................................... 25 3. SCOPE OF CONSOLIDATION ............................................................................................................ 25 4. AUTHORIZATION DATE ..................................................................................................................... 25 5. REPORTING ENTITY .......................................................................................................................... 26 6. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES..................................................................... 31 7. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS................................ 46 8. FUTURE CHANGES IN ACCOUNTING POLICIES .............................................................................. 47 8. FUTURE CHANGES IN ACCOUNTING POLICIES (CONTINUED) .......................................................... 48 9. EXCHANGE RATES ............................................................................................................................ 48 10. RISKS MANAGEMENT ....................................................................................................................... 48 10. RISKS MANAGEMENT ........................................................................................................................ 49 11. APPROVED BUDGET AND COMPOSITION OF BUDGET AND ACTUAL AMOUNTS .......................... 49 12. SEGMENTAL INFORMATION ............................................................................................................. 50 13. ELIMINATION ADJUSTMENTS ........................................................................................................... 56 14. EXCHEQUER (ISSUED)/RECEIVED ................................................................................................... 59 15. TAX REVENUE ................................................................................................................................... 61 16. REVENUE FROM EXCHANGE TRANSACTIONS................................................................................ 61 17. SOCIAL CONTRIBUTIONS ................................................................................................................. 62 18. EXTERNAL ASSISTANCE (GRANTS AND AIDS) ................................................................................ 62 19. FINANCE INCOME .............................................................................................................................. 63 20. LEVIES ............................................................................................................................................... 63 21. FEES, FINES, PENALTIES AND FORFEITS ........................................................................................ 64 22. OTHER REVENUE .............................................................................................................................. 64 23. LGA OWN SOURCE REVENUE .......................................................................................................... 65 24. DEBT FORGIVENESS ........................................................................................................................ 65 25. 15% OF REVENUE (DIVIDEND) TRANSFER FROM/(TO) THE GOVERNMENT ENTITIES ................. 65 26. FAIR VALUE GAINS ON EQUITY INVESTMENTS ............................................................................... 65 27. FAIR VALUE GAINS ON GOVERNMENT SECURITIES ....................................................................... 65 28. FAIR VALUE GAINS ON INVESTMENT PROPERTIES ........................................................................ 66 29. FAIR VALUE GAINS ON BIOLOGICAL ASSETS .................................................................................. 66 30. FAIR VALUE GAINS ON ACTUARIAL VALUATION OF DEFINED BENEFIT PLANS ............................ 66 31. FAIR VALUE GAINS ON FINANCIAL ASSETS..................................................................................... 66 32. FAIR VALUE GAINS ON MARKETABLE SECURITIES ........................................................................ 66 33. GAINS ON FOREIGN CURRENCY TRANSLATION ............................................................................. 66 THE GOVERNMENT OF TANZANIA REPORTS BY THOSE CHARGED WITH GOVERNANCE AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2020 34. GAIN ON DISPOSAL OF ASSETS ....................................................................................................... 66 35. EXCHEQUER REVENUE .................................................................................................................... 66 36. SUBVENTION FROM OTHER GOVERNMENT ENTITIES ................................................................... 66 37. GRANTS, TRANSFERS AND SUBSIDIES RECEIVED ........................................................................ 66 38. SHARE OF DEFICIT OF ASSOCIATES AND JOINT VENTURES ......................................................... 66 39. WAGES, SALARIES AND EMPLOYEE BENEFITS .............................................................................. 67 40. SUPPLIES AND CONSUMABLES USED ............................................................................................. 68 41. ROUTINE REPAIRS AND MAINTENANCE EXPENSES ...................................................................... 71 42. SOCIAL BENEFITS ............................................................................................................................. 73 43. FINANCE COST .................................................................................................................................. 73 44. OTHER EXPENSES ............................................................................................................................ 74 45. PROVISION FOR OBSOLETE INVENTORIES .................................................................................... 75 46. SUBVENTIONS TO OTHER GOVERNMENT ENTITIES ...................................................................... 75 47. GRANTS, TRANSFERS AND SUBSIDIES ISSUED ............................................................................. 76 48. DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT .............................................................. 76 49. DEPRECIATION OF INVESTMENT PROPERTIES .............................................................................. 76 50. AMORTISATION OF INTANGIBLE ASSETS ........................................................................................ 76 51. IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT .................................................................. 77 52. IMPAIRMENT OF INTANGIBLE ASSETS ............................................................................................ 77 53. IMPAIRMENT OF INVESTMENT PROPERTY ....................................................................................
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