Repoblica De Mogambique Fundo De Estradas (FE)
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Public Disclosure Authorized RepOblica de Mogambique Fundo de Estradas (FE) Public Disclosure Authorized Financial Statements For the year ended 31 December 2018 Public Disclosure Authorized FUNDO DE ESTRADAS Public Disclosure Authorized FUNDO DE ESTRADAS AGGREGATED FINANCIAL STATEMENTS 31 December 2018 INDEX PAGES Statement of management responsibilities 1 Independent Auditor's Report 2 Aggregated Road Sector Accounts - Balance Sheet 5 Aggregated Road Sector Accounts - Income Statement 6 Road Fund Accounts - Balance Sheet 7 Road Fund Accounts - Income Statement 8 ANE Accounts - Balance Sheet 9 ANE Accounts - Income Statement 10 Provinces Accounts (ANE and Road Fund Delegations) - Balance Sheet 11 Provinces Accounts (ANE and Road Fund Delegations) - Income Statement 12 Municipalities Accounts - Balance Sheet 13 Municipalities Accounts - Income Statement 14 Districts Accounts - Balance Sheet 15 Districts Accounts - Income Statement 16 Office of Zambeze Bridge Project Accounts - Balance Sheet 17 GNPT - Office of New Bridge of Tete Accounts - Balance Sheet 18 GNPT - Office of New Bridge of Tete Accounts - Income Statement 19 Road Fund Operating - Balance Sheet 20 Notes to the Financial Statements 21 STATEMENT OF MANAGEMENT RESPONSIBILITIES The directors are responsible for the preparation of the financial statements that present fairly the aggregated financial statements of Fundo de Estradas, comprising the balance sheet as at 31 December 2018 and the statement of income and expenditure for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with the modified cash receipts and disbursements basis of accounting disclosed in Note 2. The financial statements have been audited by the independent accounting firm, Deloitte & Touche (Moyambique), Lda, which were given unrestricted access to to all financial records and related data. The directors believe that all representations made to the independent auditors during their audit were valid and appropriate. The report of the independent auditors is presented on pages 2 and 4. The financial statements for the year ended 31 December 2018 presented on pages 5 to 73 have been prepared in accordance with the basis of accounting described in the Notes to the financial statements. They are based on appropriate accounting policies which have been consistently applied, and which are supported by reasonable and prudent judgements and estimates. The going concern basis has been adopted in preparing the financial statements. The management have no reason to believe that Fundo de Estradas will not be a going concern in the foreseeable future based on forecasts and available cash resources. The Directors' are also responsible for Fundo de Estrada's system of internal controls. These are designed to provide reasonable but not absolute assurance as to the reliability of the financial statements and to adequately safeguard, verify and maintain accountability of assets. These controls are monitored throughout the Entity by the Directors and employees with the necessary segregation of authority and duties. Processes are in place to monitor internal controls, to identify material breakdowns and implement timely corrective action. The aggregated financial statements of Fundo de Estradas, as identified in the first paragraph, were approved by the Board of Di(ectors on 30,April2019,and are signed on its behalf by: Prof. An ilo Mac acua Jo Mutombene Chief Executive icer rHead of Finance Directorate Cain Postal 4318 Delottte & Touch e Maputo (Mogamnbique) Lda Moqambique Chartered Accountants and Management consultants Registration No: 5917 Rue dos Desportlstas, 833 Predio JAT V-1 3 Andar Tel +258 21320955 Tel: +258 21430594 Tel: +258 20600100 [email protected] www.deloitte.com (FREE TRANSLATION FROM THE PORTUGUESE VERSION) INDEPENDENT AUDITOR'S REPORT To the Shareholders of FUNDO DE ESTRADAS Report on the Audit of the Financial Statements Opinion We have audited the aggregated financial statements of Fundo de Estradas, which comprise the balance sheet as at 31 December 2018, and the statement of income and expenditure for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory notes, as set out on pages 5 to 74. The financial statements have been prepared by the management of Fundo de Estradas for the purpose of providing financial information to the financiers. In our opinion, the aggregated financial statements, present fairly, in all material respects and in terms of the agreement with the financiers, the financial position of the Fundo de Estradas as at 31 December 2018, and the statement of income and expenditures for the year then ended in accordance with the basis of accounting set in note 2 to the financial statements. Basis for Opinion We conducted our audit in accordance with International Audit Standards (ISAs), issued by IAASB. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Fundo de Estradas in accordance with the ethical requirements that are relevant to our audit of the financial statements in terms of the code of ethics issued by the Order of Accountants and Auditors of Mogambique ("OCAM"), which comply with the Code of Ethics issued by the Ethics Standards Board for Accountants (IESBA), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Matters We confirm, within the scope of our audit, that the transactions were made in accordance with the contracts, agreements and relevant legislation. Responsibilities of the Board of Directors for the Financial Statements The Board of Directors is responsible for the preparation of financfal statements that give a true and fair view in accordance with basis of accounting set out in note 2, and for such internal control as the Board of Directors determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors is responsible for assessing the Fundo de Estradas's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fundo de Estradas or to cease operations, or has no realistic alternative but to do so. The Board of Directors is, also, responsible for overseeing the Fundo de Estrada's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or taken together, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors. o Conclude on the appropriateness of the Board of Directors' use of the going concern basis of accounting and, based on the audit evidence obtained. whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Fundo de Estradas to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying