ITEM 4B-2: 2015 FINANCIAL REPORT OF THE GENERAL SECRETARIAT AFROSAI 2 2015 FINANCIAL REPORT
Table of Contents INTRODUCTION 3 I- REPORT OF THE GENERAL SECRETARIAT 3 Financial situation 3 Financial performance 5 II- RESPONSIBILITIES OF THE AFROSAI GENERAL SECRETARIAT 7 III- REPORT OF THE STATUTORY AUDITORS 7 IV- FINANCIAL STATEMENTS AND EXPLANATORY NOTES 8 1. PRESENTATION OF FINANCIAL STATEMENTS 8 A. STATEMENT OFASSETS AND LIABILITIES 8 B. STATEMENT OF INCOME AND EXPENSE 9 C. STATEMENT OF CHANGE IN NET POSITION 9 D. CASH FLOW STATEMENT 9 E. COMPARISON OF BUDGETED AMOUNTS AND RAISED REVENUE AMOUNTS 10 F. COMPARISON OF BUDGETED AMOUNTS AND EXPENDITURE AMOUNTS 11 2. EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 11 NOTE 1: ASSETS ACCOUNTING METHODS AND EVALUATION BASIS 12 NOTE 2: INTANGIBLE ASSETS 14 NOTE 3: TANGIBLE ASSETS 15 NOTE 4: CONTRIBUTION ARREARS 16 NOTE 5: ADVANCE PAYMENTS ON CONTRIBUTIONS 17 NOTE 6: CASH AND CASH EQUIVALENTS 17 AFROSAI 3 2015 FINANCIAL REPORT
NOTE 7: OTHER CURRENT LIABILITIES 18 NOTE 8: NET ASSET/NET SITUATION 18 NOTE 9: CONTRIBUTIONS OF SAIs THAT ARE AFROSAI MEMBERS 18 NOTE 10: DEBT RECOVERY 19 NOTE 11: SUPPLIES AND MATERIALS 19 NOTE 12: PLANNING, IMPLEMENTATION AND MONITORING OF GS/AFROSAI ACTIVITIES 20 NOTE 13: ENTERTAINMENT EXPENSES OF THE GENERAL SECRETARIAT 20 NOTE 14: BANK CHARGES 21 NOTE 15: COORDINATION OF TRAINING ACTIVITIES 21 NOTE 16: GENERAL ASSEMBLY 21 NOTE 17: EXECUTIVE COMMITTEE 21 NOTE 18: JOINT TECHNICAL COMMISSIONS 22 NOTE 19: WORKING GROUP 22 NOTE 20: INTERNAL VERIFICATION JOURNAL 22 NOTE 21: OTHER EXPENSES 22 INTRODUCTION
1. In accordance with Article 20 (4) of AFROSAI By-laws, the AFROSAI General Secretariat shall prepare the Organisation's financial documents. It shall equally ensure its wide distribution to members.
2. In accordance with Article 21 (1) of the above-mentioned By-laws, financial statements, financial report and financial management of AFROSAI shall be verified by statutory auditors.
3. After verification, the financial report shall be submitted to the AFROSAI Executive Committee for approval.
4. This report comprises 4 (four) parts:
. report of the General Secretariat (I); . responsibilities of the General Secretariat (II); . report of the statutory auditors (III); . financial statements accompanied by explanatory notes (IV).
REPORT OF THE GENERAL SECRETARIAT
5. In this first part of the financial report, the following shall be presented chronologically:
. financial situation (A); . financial performance (B); . budget implementation situation (C).
FINANCIAL SITUATION
6. Generally, AFROSAI recorded a net asset of USD 182,237 as at 31 December 2015 against USD 363,072 as at 31 December 2014, i.e. a drop of USD 180,835 in AFROSAI's resources (in absolute value), equivalent to 50 % (in relative value), in the last financial year.
The graph below shows the 2014-2015 AFROSAI net assets trends.
Trends of other current liabilities AFROSAI 2 2015 FINANCIAL REPORT
7. The Organisation's cash and its equivalents stood at USD 31, 001 as at 31 December 2015 against USD 164, 576 as at 31 December 2014. In the past financial year, we witnessed a drop of USD 133,575 in absolute value and 81 % in relative value, as shown in the graph below.
8. The drop in the 2014-2015 cash is justified by the following:
. low payment rate of annual contributions by members (33 %);
. coverage of certain obligatory commitments such as the entertainment expenses of the General Secretariat, training activities and meetings of statutory bodies.
9. Advance payment of members generally dropped by USD 4,000 between 2014 and 2015.
10. The recovery of contribution arrears in less than one year recorded an upward trend during the 2015 financial year, reducing the amount of arrears from USD 53,225 as at 31 December 2014 to USD 10,500. However, the recovery of arrears in more than one year remained mitigated.
11. Other current liabilities significantly increased in 2015. The line "Other current liabilities" increased from USD30,476 as at 31December 2014 to USD41,472 as at 31December 2015, as shown in the graph below: AFROSAI 3 2015 FINANCIAL REPORT
Trends of other current liabilities FINANCIAL PERFORMANCE
12. Contrary to the AFROSAI result for 2014 which recorded a resource surplus of USD79,720 corresponding to the difference between the income assessed at USD302,356 and expenses amounting to USD222,636, that of 2015 recorded a deficit of USD148,459, result of the difference between income (USD 80,226) and expenses (USD 228,685).
13. The graph below shows the 2014-2015 AFROSAI financial performance trends.
From the graph, we realise that the AFROSAI financial performance witnessed a sharp fall in 2015.
14. An assessment of the performance status revealed that:
. The operating expenses of the General Secretariat dropped from USD 132,025 in 2014 to USD 111,666 in 2015, that is, a reduction of USD 20,359 in absolute value and 15 % in relative value; . The expenses relating to the organization of training sessions and statutory meetings increased from USD 59,894 in 2014 to USD 90,539 in 2015, that is, an increase of USD 30,645 in absolute value and 51 % in relative value; . The expected annual statutory contributions increased from USD 62,000 in 2014 to USD 68,500 in 2015 due to the admission of new members namely: the African Union, WAMU Audit Court and SAI of Eritrea.
15. The graph below summarises the major expenses of the Organisation as well as the statutory contributions of members for the 2014-2015 period. AFROSAI 4 2015 FINANCIAL REPORT
Operating expenses of the General Secretariat
16. From the graphic analysis, it is revealed that the line "Operating expenses of the AFROSAI General Secretariat" most mobilised resources.
RESPONSIBILITIES OF THE AFROSAI GENERAL SECRETARIAT
17. In accordance with AFROSAI By-laws, and in conformity with IPSAS standards, the AFROSAI General Secretariat shall be responsible for preparing financial statements that give a true and fair view of accounts and operations of the Organisation for the year. In this regard, the General Secretariat must: . design, implement and maintain an internal control system that guarantees the preparation of financial statements that give a fair view and free from material misstatement; . adopt the appropriate accounting reference document and apply related standards; . prepare financial statements in accordance with the accounting reference document adopted.
18. The Secretary-General shall be responsible for keeping accounts which show the Organisation's financial situation at all times and which enable the preparation of financial statements.
19. The Secretary-General's responsibility includes the protection of AFROSAI's heritage and in this regard, it shall be incumbent on him to take necessary measures to prevent and detect any case of fraud.
The Secretary-General certifies that: (a) the financial statements give a true and fair view of accounts, financial performance and cash position of AFROSAI as at 31December 2015; (b) AFROSAI shall fulfil its financial commitments on their expiry date; (c) the financial statements were prepared in accordance with IPSAS standards. Done at Yaounde, on...... AFROSAI 5 2015 FINANCIAL REPORT
Secretary-General
REPORT OF THE STATUTORY AUDITORS
FINANCIAL STATEMENTS AND EXPLANATORY NOTES
20. This last part hitches on the two points below:
. Presentation of financial statements (1); . Explanatory notes to the financial statements (2).
PRESENTATION OF FINANCIAL STATEMENTS
21. In accordance with IPSAS standards, the financial statements prepared by the AFROSAI General Secretariat comprise the following:
. statement of assets and liabilities (A); . statement of income and expense (B); . statement of change in net position (C); . cash flow statement (D); . comparison of budgeted amounts and raised revenue amounts (E); . comparison of budgeted amounts and raised expenditure amounts (F).
A. Statement of assets and liabilities
Notes 31.12.2015 31.12.2014 Assets Non-current assets Intangible assets 2 - - Intangible assets 3 10,973 20,137 Contribution arrears in more than one year 4 176,000 164,375 Total non-current assets 186,973 184,512 Current assets Contribution arrears in less than one year 4 10,500 53,225 Other current assets Cash and cash equivalents 6 31,001 164,576 Total current assets 41,501 217,801 Total assets 228,474 402,313 Liabilities Non-currentliabilities Advance payments in more than one year 5 3,500 1,765 Total non-current liabilities 3,500 1,765 Current liabilities Advance payments in less than one year 5 1,265 7,000 Other current liabilities 7 41,472 30,476 AFROSAI 6 2015 FINANCIAL REPORT
Notes 31.12.2015 31.12.2014 Total current liabilities 42,737 37,476 Total liabilities 46,237 39,241 Net assets 8 182,237 363,072
B. Statement of income and expense
Notes 31.12.2015 31.12.2014 31.12.2013 Income Statutory contributions 8 68,500 62,000 62,000 Voluntary contributions 9 0 145,698 - Other income 9 11,726 94,658 58 Total income 80,226 302,356 62,058 Expenses Operating expenses of the General Secretariat 111,666 132,025 8,531 Training and meetings of bodies 90,539 59,894 48,955 Other expenses 22 26,480 30,717 96,503 Total expenses 228,685 222,636 153,989 Surplus and deficit for the period -148,459 79,720 - 91,931
C. Statement of change in net position
Cumulative Reserves Notes surpluses/deficits Total Net assets as at 31.12.2014 363,072 - 363,072 2015 deficit -148,459 - -148,459 2015 surplus - - - IPSAS adjustments 32,376 - 32,376 Net assets as at 31.12.2015 8 182,237 - 182,237
D. Cash flow statement
Notes 31.12.215 31.12.2014
Cash flow of operational activities Financial year surplus or deficit 9 -117,194 79,720 Depreciation charge 10 18,108 18,010 Provision charge - - Reversal of provisions 11 - 94,606 Increase/reduction of non-current assets 12 2,461 20,347
Increase/reduction of current assets 13 -170,299 60,970 AFROSAI 7 2015 FINANCIAL REPORT
Notes 31.12.215 31.12.2014
Increase/reduction of current liabilities 27,782 1,500 Increase/reduction of non-current liabilities 2,735 100 Net cash flow from operational activities (99,086) -76,593
Cash flow of investment activities Property additions 1001 - Disposal of property - -
Net cash flow of investment activities - -
Net increase/reduction of cash and cash equivalents -127,574 62,580 Cash and cash equivalents at period start 101,996 101,996 Cash and cash equivalents at period end 37,002 164,576
E. Comparison of budgeted amounts and raised revenue amounts
Budget lines Note Budget Implementation Difference Implementation (1) (2) (3)= (2)-(1) rate (4) = ((2)/(1))*100
9 58,900 19,400 -39,500 33
Debtrecovery 10 43,656 69,600 25,944 160
Exchange gains 0 11,726 11,726 on members' contributions Advancepayments 0 4,765 4,765 - on contributions Deposit of SGBC 0 141,081 141,081 funds at SCB Cash available at 41.067 41.067 0 100 SCB
Total 143,623 287,639
F. Comparison of budgeted amounts and expenditure amounts AFROSAI 8 2015 FINANCIAL REPORT
Implementation Implementation Gap Budget lines Note Budget (1) rate (2) (3)= (2)-(1) (4) = ((2)/(1))*100
CHAP1: OPERATING EXPENSES OF THE SECRETARIAT Supplies and materials 11 10,204 2,531 -7673 24
Planning, implementation and monitoring of GS/AFROSAI 12 11,500 12,413 913 107 activities
Entertainment expenses of the General Secretariat 13 27,500 57,246 29,746 208
Bank charges 14 0 2,372 2,372 Sub-total 1 74,562 CHAP2: TRAINING AND MEETINGS OF BODIES 2.1 Coordination of training activities 15 3,061 11,163 8,102 364
2.2 Organisation of statutory bodies meetings
22.1. General Secretariat 16 7,143 15,309 8,166 2.2.2 Executive Committee 17 46,000 30,378 -15,622 66
2.2.3 Joint Technical Commissions 18 22,000 32,163 10,163 146
2.2.4 Working Group 19 6,500 30,540 24,040 469
Sub-total 2 (2.1+2.2) 79,166 119,553 CHAP3: INTEGRATED VERIFICATION JOURNAL Verification journal I. 20 3,000 0 3,000 0 Sub-total 3 3,000 0 3,000 0
Grand total (St1+ St2+St3) 132,623 194,115
2. EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: Assets accounting methods and evaluation basis
22. These are rules and principles which were applied when preparing the Organisation's financial statements to ensure that they provide information that meet certain qualitative characteristics.
ACTIVITY CONTINUITY AFROSAI 9 2015 FINANCIAL REPORT
23. AFROSAI's financial statements were prepared with the hypothesis that the Organisation is in a situation of activity continuity and shall respect regulatory obligations in the foreseeable future.
PRESENTATION CONSISTENCY
24. The presentation and classification of lines in financial statements shall be preserved from one financial year to the other, unless:
(1) a major change in the nature of the Organisation's activities or a presentation assessment of its financial statements shows that this change will produce a more appropriate presentation of events or operations; or (2) a change of presentation is imposed by an international accounting standard of the public sector.
RELATIVE IMPORTANCE AND GROUPING
25. The IAS standard 1 defines the notion of relative importance: "information is significant if not indicating it may affect the economic decisions taken by users based on financial statements". Any significant element is presented separately in financial statements. Insignificant elements are grouped (if they are homogeneous). The setting of significance threshold is not specified.
COMPENSATION
26. Assets, liabilities, expenses and income must not be offset except in the following cases: (a) a public sector international accounting standard imposes or authorises it; or if (b) gains and losses from similar transactions are not significant.
ACCRUAL ACCOUNTING
27. Operations and other events are recorded when there occur and not at cash or cash equivalent inflow or outflow. Elements recorded according to accrual accounting are assets, liabilities, net assets, income and expenses.
COMPARATIVE INFORMATION
28. Comparative information for the previous financial year is presented for all encrypted information that appears in financial statements. The comparative information is also provided for any narrative explanation when it is relevant to the understanding of financial statements for the current financial year.
PRESENTATION CURRENCY
29. The presentation currency of AFROSAI financial statements is the US dollar. Operations carried out in CFAF are converted to US dollar using an average dollar rate equivalent to CFAF 490. The fixed rate of Euro1 to CFAF 656 when converting from Euro to CFAF. Impacts relating to the application of average rate were taken into account in accounting via the regularisation operations of financial year end.
DURATION OF FINANCIAL YEAR AFROSAI 10 2015 FINANCIAL REPORT
30. AFROSAI's financial statements are presented annually at the close of each financial year. They are presented on the 31December of each year. The financial statements of this report concern the 2015 financial year.
ASSETS EVALUATION BASIS
31. The initial evaluation basis applied to assets is the historic cost. Assets may be re-evaluated.
CASH AND CASH EQUIVALENTS
32. For AFROSAI accounts, cash and cash equivalents comprise cash on hand and assets in unremunerated current bank accounts.
DEBT ACCOUNTING
33. AFROSAI's debt comprises contribution arrears such as calls for membership contributions not yet paid. In the meantime, the Organisation is not carrying out income generating activities and customer receivables. Arrears are evaluated at their recovery value.
RECORDING AND DEPRECIATING INTANGIBLE ASSETS
Original value (OV): this is the depreciable property value at its entry into the AFROSAI heritage; Depreciation annuity (A): this is the annual depreciation (i.e. the depreciation amount over a period of 12 months) (A= OVx r/100); Net book value (NBV): the difference between the original value and the accumulated depreciation of an asset. It is also called the residual value; Estimated useful life or depreciation period (n) (n= 100/r): this is the time the asset must take after its entry into service to completely depreciate from the accounting point of view. Depreciation rate (r): this is a coefficient generally expressed in percentage that is applied to the original value or at the base to determine depreciation annuity (r= 100/n). The rate retained when recording and depreciating the Organisation's assets complies with the general tax code of the Republic of Cameroon, which is inspired by international standards. Depreciation system: a depreciation system defines the manner in which depreciation annuities will be calculated. The AFROSAI General Secretariat chose a linear or constant depreciation system. In the said system, depreciation annuities are constant and the accumulated depreciation is directly proportional to the time spent by the asset. The tables below summarise the Organisation's assets depreciation:
INCOME ACCOUNTING
34. Income represents inflows of economic advantages from the company's ordinary activities and resulting in an increase in equity, except equity increases from contributors. In accordance with IPSAS standards, income must be observed during the period when it was generated and not during cash or cash equivalent inflows according to the accounting rules of the financial year. Within the framework of AFROSAI, income comprises members' contributions called statutory contributions and voluntary cash or material contributions that may come from either members or other external bodies notably from GIZ, one of the technical partners of AFROSAI. Advance payments by members do not constitute income at the time of payment to take into account the principle of the financial year accounting. Such payments are kept in current or non-current AFROSAI 11 2015 FINANCIAL REPORT
liabilities depending on their maturity. Income related to contributions received during the call for contributions concretised by the issuance of bills to SAI members.
EXPENDITURE ACCOUNTING
35. Expenses represent outflows of economic advantages. They are recorded at birth and not during cash or cash equivalent outflows with regard to the principle of the financial year accounting. The Organisation's expenses were classified by function for a proper analysis of its financial performance. Regarding external services what triggers the registration of expenditure is the receipt of the suppliers’ bill. For daily subsistence allowances paid to executive staff for their travel expenses, what triggers the registration of the said expenditure is the presentation of supporting documents, notably regarding accommodation. As regards transport and travels, the triggering factor is the presentation of boarding pass and final bill of the travel agency.
The assessment method used for expenses is the cash cost method represented by cash or cash equivalent outflow.
NOTE 2: INTANGIBLE ASSETS
36. This is the SAGE SAARI software provided by GIZ for USD 7,943 assessed at the inflow cost in accordance with IPSAS standards. The applied depreciation rate is 100 % given that its use validity period is one year before renewal. This accounts for its null value at the end of each financial year, as shown in the depreciation table below:
Depreciation of intangible assets
Depreciation table No.1 Asset description: SAGE SAARI software Acquisition date: 1.1.2015 Identification No. Date of entry into service 1.1.2015 Depreciation rate: 100% Duration of use: 1 year OV: USD 7,943 (i.e. CFAF 3,892,070) DEPRECIATION PLAN Year OV (USD) Annuity (A) ∑A NBV Observations 2015 7,943 7,943 7,943 0
NOTE 3: TANGIBLE ASSETS
37. They are mainly composed of computer hardware broken down as follows in USD:
DATE OF ENTRY INTO COMPONENTS SERVICE ENTRY VALUE SERVER 1.1.2014 6,928 INVERTERS 1.1.2014 1,398 AFROSAI 12 2015 FINANCIAL REPORT
COMPUTERS 1.1.2014 14,890 VIDEO-PROJECTOR 1.1.2014 1,386 PRINTER 1.1.2014 692 INTERNET INSTALLATION 1.1.2014 1,480 NETWORK INFRASTRUCTURE 1.1.2014 3,431 "Canon" CAMERA 15/09/2015 1001 GROSS TOTAL 31,205 ACCUMULATED DEPRECIATION AS AT 31.12.2015 20,233 TOTAL NET ASSETS 10,972
38. The said hardware constitutes a GIZ donation and their depreciation situation is summarised in the table below:
Depreciation of intangible assets
Depreciation table No.2 Asset description: Computer hardware Acquisition date: 1.1.2014 Identification No. Date of entry into service 1.1.2014 Depreciation rate: 33.33% Duration of use: 3 years OV: USD 30,204 DEPRECIATION PLAN Year OV Annuity (A) ∑A NBV Observations 2014 30,204 10,068 10,068 20,136 The computer 2015 30,204 10,068 20,136 10,068 hardware must 2016 30,204 10,068 30,204 0 be renewed from 1stJanuary 2017
Depreciation table No.2 Asset description: Camera CANON EOS 650D Acquisition date: 15.9.2015 Identification No. Date of entry into service 15.9.2015 Depreciation rate: 33.33% Duration of use: 3 years OV: USD 1,001 DEPRECIATION PLAN Year OV (USD) Annuity (A) ∑A NBV Observations From15.9.2015 1,001 97 97 904 The depreciation to 31.12.2015 spans over 3 months 15 days 2016 1,001 334 431 570 2017 1,001 334 765 236 From the 1st to 1,001 236 1,001 0 The depreciation 15 Sept. 2018 spans over 8 months 15 days
NOTE 4: CONTRIBUTION ARREARS
39. The total amount of annual contribution arrears of members as at 31stDecember 2015 stood at USD 186,500 broken down as follows: AFROSAI 13 2015 FINANCIAL REPORT
No. MEMBERS AMOUNT ARREARS IN MORE THAN ONE YEAR 1 AUDIT COURT OF ALGERIA 6,000 2 TRIBUNAL DE CONTAS DE ANGOLA 12,000 3 AUDIT BENCH OF THE SUPREME COURT 3,000 4 AUDIT AND BUDGET DISCIPLINE COURT 2,000 5 AUDIT BENCH OF COTE D'IVOIRE 28,800 6 AUDIT AND BUDGET DISCIPLINE COURT 7,750 7 FEDERAL AUDITOR GENERAL OF ETHIOPIA 10,000 8 AUDITOR GENERAL OF GAMBIA 3,500 9 GENERAL INSPECTORATE OF GUINEA 2,000 10 TRIBUNAL DE CONTAS DE GUINEE BISSAU 5,000 11 DIRECTION GENERALE DU CONTROLE FINA 4,000 12 AUDITOR GENERAL OF GAMBIA 4,000 13 AUDIT BUREAU OF LIBYA 9,000 14 AUDIT COURT OF MADAGASCAR 13,500 15 AUDITOR GENERAL OF MALAWI 1,000 16 CONTROLEUR GENERAL DES SERVICES PUB 1,100 17 COUR DES COMPTES DE LA REP. ISL. MA 2,000 18 AUDITOR GENERAL OF THE FEDERATION OF NI 12,000 19 GENERAL INSPECTORATE OF THE STATE OF CAR 3,500 20 AUDIT COURT OF THE DRC 6,000 21 AUDITOR GENERAL OF MALAWI 1,500 22 AUDITOR GENERAL OF MALAWI 2,000 23 AUDITOR GENERAL OF SUDAN 3,000 24 AUDITOR GENERAL OF KINGDOM OF SWAZI 1,000 25 NATIONAL AUDIT OFFICE OF TANZANIA 4,000 26 AUDIT BENCH OF THE SUPREME COURT 15,750 27 AUDIT COURT OF TOGO 1,600 28 AUDIT COURT OF TUNISIA 7,000 29 AUDITOR GENERAL OF GAMBIA 4,000 NOTE 1: 176,000 ARREARS IN LESS THAN ONE YEAR 30 AUDITOR GENERAL OF BOTSWANA 1,000 31 ACCOUNTS VERIFICATION COMMISSION 1,000 32 AUDIT COURT OF GABON 3,000 33 AUDIT COURT OF NIGER 500 34 AUDITOR GENERAL OF UGANDA 1,000 35 AFRICAN UNION 3,000 36 CONTROLLER AND AUDITOR GENERAL OF ZIMBABWE 1,000 NOTE 2: 10,500 GRNAD TOTAL (T1+T2) 186,500
NOTE 5: ADVANCE PAYMENTS ON CONTRIBUTIONS
40. As at 31stDecember 2015, advance payments from members' contributions amounted to USD 4,765, broken down as follows: AFROSAI 14 2015 FINANCIAL REPORT
No. MEMBERS AMOUNT PAYMENTS IN MORE THAN ONE YEAR 1 AUDITOR GENERAL OF LOSOTHO 500 2 AUDIT COURT OF BURKINA FASO 3,000 NOTE 1: 3,500 PAYMENTS IN LESS THAN ONE YEAR 3 CONSUPE 565 4 AUDIT COURT OF MOROCCO 700 TOTAL 2 1,265 GRNAD TOTAL 4,765
NOTE 6: CASH AND CASH EQUIVALENTS
41. The cash and cash equivalent line is made up of the following elements:
Lines 31December 2015 31December 2014 Banks - Standard Chartered Bank 11,987 5,005 97,877
Banks' total 11,987 102,882 Fund 19,015 61,694 TOTAL CASH 31,002 164,576
NOTE 7: OTHER CURRENT LIABILITIES
42. As at 31stDecember 2015, other current liabilities stood at USD 41,472, broken down as follows:
CREFIAF Yearconcerned Advance amount Designation 28,500 Balance of 2012 in flow 876 Fee for the translation of the 12th 2012 AFROSAI General Assembly 1,100 Wire transfer to Egypt for the integrated verification journal JMP TRAVEL 2015 10,996 Air tickets TOTAL 41,472
NOTE 8: NET ASSET/NET SITUATION
43. It corresponds to the difference between total assets and total liabilities and expresses an increase in resources when it is positive and a reduction in resources when it is negative. The drop in net assets recorded in 2015 is justified by the rise in current and non-current liabilities compared to 2014 (drop in economic advantages as already mentioned in note 7) and a AFROSAI 15 2015 FINANCIAL REPORT
drop in the organisation's debt and its cash (see notes 4 and 5).
NOTE 9: CONTRIBUTIONS OF SAIs THAT ARE AFROSAI MEMBERS
44. The projected amount of all SAIs that are AFROSAI members' contributions for 2015 was estimated at USD 58,900 and the effective contributions made by the latter stood at USD 19,400, corresponding to a 33 % rate. They are the following members:
No. Members Amounts 1 SOUTH AFRICA 3,000 2 BURKINA-FASO 500 3 CAPE VERT 500 4 EGYPT 3,000 5 ERITREA 500 6 GHANA 2,000 7 KENYA 2,000 8 MAURITIUS 1,000 9 NAMIBIA 500 10 SUSPENSE ACCOUNTS 2,000 11 SUSPENSE ACCOUNTS 1,400 12 SAO TOME 1,000 13 SENEGAL 500 14 SIERRA LEONE 1,000 15 SOUTH SUDAN 500 TOTAL 19,400
45. When checking the Organisation's bank statements with Standard Chartered Bank, payments made by some unidentified SAIs were transferred to suspense accounts while waiting for supporting documents.
NOTE 10: DEBT RECOVERY
46. These are AFROSAI's claims towards some of its members who owe contributions for previous years. This line was estimated at USD 43,656 for 2015 and has an effective realisation of USD 69,600, corresponding to 160 %. Members that paid their contribution arrears are listed in the table below:
No. MEMBER AMOUNTS 1 SOUTH AFRICA 3,000 2 ALGERIA 3,000 3 BOTSWANA 2,000 4 BURKINA FASO 4,000 5 COTE D'IVOIRE 2,000 6 GABON 9,000 7 GHANA 4,000 AFROSAI 16 2015 FINANCIAL REPORT
8 KENYA 30,000 9 UGANDA 600 10 DRC CONTRIBUTION 10,000 11 SOUTH SUDAN 1,500 12 TOGO 500 TOTAL 69,600
NOTE 11: SUPPLIES AND MATERIALS
47. Forecasts relating to this line were USD 10,204 against expenses of USD 2,531, that is, an implementation rate of 24 %.
No. Expenditure purpose Amount 01 Rental of materials and Services 1,020 02 Acquisition of camera 1,001 03 Acquisition of accounting software 510 Total 2,531
NOTE 12: PLANNING, IMPLEMENTATION AND MONITORING OF GS/AFROSAI ACTIVITIES
48. This line concerns expenses borne by the General Secretariat in the discharge of its duties. There are notably:
. maintaining contact between GS-AFROSAI and SAI members; . distributing documents and specialised publications, publishing the annual report; . Organising operational activity planning meetings . Auditing AFROSAI's accounts . Another expenses as part of the planning, implementation and monitoring of GS/AFROSAI activities.
49. The credit allocated to this line for 2015 is USD 11,500 and expenses effectively made for the period considered stood at USD 12,413 broken down as follows:
No. Expenditure purpose Amount 01 Expenses for the planning of GS/AFROSAI 4112 activities 02 Training workshop for GS/AFROSAI 608 executive staff on IPSAS standards 03 Expenses for the auditing of AFROSAI 4,681 accounts for 2014 (DSA for auditors and other logistics) 04 Expenses for SG/AFROSAI working visit to 3,012 Egypt Total 12,413
50. Thus, an implementation rate of 107 % representing expenses borne in addition to the price hikes of goods and services on the Cameroon market is revealed. AFROSAI 17 2015 FINANCIAL REPORT
NOTE 13: ENTERTAINMENT EXPENSES OF THE GENERAL SECRETARIAT
51. These are expenses borne by the General Secretariat as part of experience sharing and international commitments of AFROSAI with other stakeholders notably: INTOSAI, EUROSAI, ARABOSAI, OLACEFS, IDI, INCOSAI, international consortium of verifiers and managers of public finances, African Union, etc. For 2015, the earmarked budget was USD27,500. Implementation stood at USD 57,246, broken down as follows:
No. Expenditure purpose Amount 01 Participation at the Task-Force on the certification of 7,862 auditors held in Oslo in Norway. 02 Participation at the 8th EUROSAI-OLACEF Conference 19,032 03 Working visit to Cairo of the SG/AFROSAI 6,968 04 Participation at the CBC annual meeting 6,437 06 Participation at the 10th AFROSAI-E Executive 2,827 Committee, held in Cape Town in South Africa 07 Participation of the ASG at the international 516 symposium organised by SAI of Malawi 08 Participation at the 7th INTOSAI DONOR Committee 8,444 09 Participation at the INTOSAI WGEA Executive 5,160 Committee TOTAL 57,246
52. The "cost of representation" line significantly increased compared to 2014, given the Organisation's international commitments.
NOTE 14: BANK CHARGES
53. The Organisation's bank account lodged at Standard Chartered Bank of Cameroon recorded total bank charges of USD 2,372, from 1January to 31 December 2015.
NOTE 15: COORDINATION OF TRAINING ACTIVITIES
54. The budget allocated for this line for 2015 was USD 3,061 and the expenses effectively made stood at USD 11,163 relating to the institutional capacity building of the SAI of Burkina Faso. Related details are presented as follows:
No. Expenditure purpose Amount 01 Activities relating to the institutional enhancement of the Audit 11,163 Court of Burkina Faso TOTAL 11,163
NOTE 16: GENERAL ASSEMBLY AFROSAI 18 2015 FINANCIAL REPORT
55. The estimated cost for this line was USD7,143, but the expenses effectively made for 2015 stood at USD15,309, due to the preparation and participation of the General Secretariat executive staff at the 13th General Assembly of AFROSAI which held in Sharm El Sheikh, Egypt in 2014. The details of such expenditure are shown in the table below;
No. Expenditure purpose Amount 01 AFROSAI prize awarded to KHEMRAJ 1,243 02 Expenses relating to the 13th General Assembly 14,065 TOTAL 15,309 (1) Expenses relating to the preparation of the 13th General Assembly and participation of the Secretary-General at the said meeting.
NOTE 17: EXECUTIVE COMMITTEE
56. The budget allocated for this line was USD46,000 and expenses effectively made as part of the 50th Executive Committee meeting which held in Maputo, Mozambique from 21 to 23September 2015 stood at USD30,378 (i.e. 66%) broken down as follows:
No. Expenditure purpose Amount 01 Preparation of the 50th AFROSAI Executive Committee 3,872
02 Participation at the 50th AFROSAI Executive Committee 25,486 03 Communication expenses as part of the 50th AFROSAI 1,020 Executive Committee Total 30,378
NOTE 18: JOINT TECHNICAL COMMISSIONS
57. The AFROSAI Joint Technical Commissions' meeting held at Hôtel la Falaise of Yaoundé from 7 to 10 July 2015. Budgeted at USD 22,000, this activity finally cost USD 32,163. As such, the implementation rate stands at 157.6 %. The table below shows details of related expenses.
No. Expenditure line USD 01 Lodging and catering for participants as well as rental of 22,184 halls for deliberations in plenary and workshops. 02 Logistics (kits for participants); hospitality expenses for 9,980 participants; communication and transport TOTAL 32,164
NOTE 19: WORKING GROUP
58. Expenses relating to this head stand at USD 30,540 against the projected USD 6,500. Their details are shown in the table below:
No. Expenditure purpose Amount AFROSAI 19 2015 FINANCIAL REPORT
01 Activities relating the joint audit of the Nile, Cairo in 21,891 Egypt. 02 Participation at the working group meeting of 2,827 INTOSAI/WGEA in Lesotho 03 Participation of the SG/AFROSAI as part of the GTT 5,822 WGEA held in Dakar, Senegal Total 30,540
NOTE 20: INTERNAL VERIFICATION JOURNAL
59. The Internal Verification Journal is an AFROSAI publication done by the SAI of Egypt which did not receive from the General Secretariat, in the past year, the financial support of USD 3,000. This is the reason for the null implementation rate for this activity
NOTE 21: OTHER EXPENSES 60. There are as follows:
Description Amounts Exchange losses 0 Provision 6,000 Bank charges 2,372 Depreciation and provision expenses 18,108 TOTAL 26,480