EMBASSY GENERAL REPORT 2010-2011 - TanzaniaDAR ES SALAAM. Telegram: “Ukaguzi", Telephone: 255(022)2115157/8, ... Excellence: We are professionals providing high quality audit services

ANNUAL GENERAL REPORT OF THE CONTROLLER AND AUDITOR GENERAL

On the Audit of the Financial Statements of the Tanzanian Embassies/Missions for the year ended 30th June, 2011

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Office of the Controller and Auditor General AGR/EM/2010/2011

THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE

Office of the Controller and Auditor General, Samora Avenue, P.O. Box 9080, DAR ES SALAAM. Telegram: “Ukaguzi", Telephone: 255(022)2115157/8, Fax: 255(022)2117527, E-mail: [email protected], Website: www.nao.go.tz

In reply please quote No. Ref. Na.CA.4/37/01/2010/2011

date 31ST March, 2012

Your Excellency Dr. Jakaya M. Kikwete, The President of the United Republic of Tanzania, State House, P. O. Box 9120, Dar es Salaam.

Re: Annual report of the Controller and Auditor General on the

financial statements by the Embassies/Missions for the year

ended 30th June, 2011

Pursuant to Article 143(4) of the Constitution of the United Republic of Tanzania of 1977 (revised 2005), and Section 34 (1) (c) of the Public Audit Act No. 11 of 2008, I hereby submit to you the above mentioned report. I submit.

Ludovick S. L. Utouh CONTROLLER AND AUDITOR GENERAL

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Office of the Controller and Auditor General,

The National Audit Office,

United Republic of Tanzania.

(Established under Article 143 of the Constitution of the URT).

The statutory duties and responsibilities of the Controller and Auditor General are given under Article 143 of the Constitution of the URT of 1977 (revised 2005) and in Sect. 45 and 48 (1) of the Local Government Finances Act No. 9 of 1982 (revised 2000) together with Sect. 10 (1) of the Public Audit Act No. 11 of 2008. Vision To be a centre of excellence in public sector auditing. Mission To provide efficient audit services in order to enhance accountability and value for money in

the collection and use of public resources.

Core values

In providing quality services, NAO is guided by the following Core Values:

� Objectivity: We are an impartial organization, offering services to our clients in an objective and unbiased manner;

� Excellence: We are professionals providing high quality audit services based on best practices;

� Integrity: We observe and maintain high standards of ethical behavior and the rule of law; � People focus: We focus on our stakeholders’ needs by building a culture of good customer

care and having competent and motivated work force; � Innovation: We are a creative organization that constantly promotes a culture of

developing and accepting new ideas from inside and outside the organization and � Best resource utilisation: We are an organisation that values and uses public resources

entrusted to it in an efficient, economic and effective manner.

We do this by:-

• Contributing to better stewardship of public funds by ensuring that our clients are accountable for the resources entrusted to them;

• Helping to improve the quality of public services by supporting innovation on the use of public resources;

• Providing technical advice to our clients on operational gaps in their operating systems; • Systematically involve our clients in the audit process and audit cycles; and • Providing audit staff with appropriate training, adequate working tools and facilities that

promote independence.

© This audit report is intended to be used by Government Authorities. However, upon receipt of

the report by the Speaker and once tabled in Parliament, the report becomes a matter of

public record and its distribution may not be limited.

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Foreword

Accountability of funds appropriated to the Embassies/Missions for the past four years has tremendously improved. This has been made possible not only because of my annual audit reports of the respective embassies/Missions, but also due to efforts of the Permanent Secretary of the Ministry of Foreign Affairs and International Cooperation and the constructive contributions from the Parliamentary Oversight Committee of Public Accounts Committee (PAC) This report is being submitted to the President of the URT in accordance with Article 143 of the Constitution of the United Republic of Tanzania (revised 2005) and Section 34(1) & (2) of the Public Audit Act No.11 of 2008. Pursuant to Article 143(2) (c) of the Constitution of the URT, the Controller and Auditor General shall, at least once every year, shall audit and give an audit report in respect of the accounts of the Government of the United Republic, the accounts managed by all officers of the Government of the United Republic, the accounts of all Courts of the United Republic and the accounts managed by the Clerk of the National Assembly. Under Article 143(4) of the Constitution of the URT, the Controller and Auditor General is required to submit to the President of the URT every report he makes pursuant to the provisions of Sub Article (2) of the same Article. Upon receipt of such reports, the President shall direct the persons concerned to submit these reports before the first sitting of the National Assembly preferably before the expiration of seven days from the day the sitting of the National Assembly began. Operational independence of my office has greatly improved following the enactment of the Public Audit Act No. 11 in 2008. However, in accordance with international standards there is need for further improvement in terms of control of salaries and recruitment to enable me to effectively fulfil my Constitutional mandate. With the enactment of this new legislation, my office has endeavoured in enforcing financial controls and assisting the Government in the enhancement of public accountability. In essence, the legislation has enabled me to provide the necessary independent assurance to the Parliament and through it to the public on such issues as accountability, transparency and probity in the use of public resources and in particular as to whether such resources have been effectively utilised with due regard to economy, efficiency and effectiveness as intended and appropriated by the Parliament. It is worth noting that, while my office reports on any non compliance with various laws, rules and regulations and on weaknesses in internal control systems in the Embassies/Missions, the ultimate responsibility for the maintenance of an effective and adequate system of internal control and a compliant framework lies with each Sub-Warrant Holder under the Accounting Officer of Vote 34.

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In this regard the Missions/Embassies and my office each has a role to play in contributing to Parliamentary and public confidence building in public resources management. However, while the roles of Embassies/Missions and National Audit Office may differ, the desire for efficient utilization of public resources remains a common ground. In order to meet the expectations of the Parliamentarians’ and the public at large, NAO continually reviews its audit approaches to ensure that the audit coverage provides an effective and independent review of the performance and accountability of public sector entities. Moreover, we seek to ensure that our audit coverage is well targeted and addresses priority areas so as to maximize our contribution in improving public administration. Since our work acts as a catalyst in improving financial management, we continue to discuss with our auditees contemporary issues and developments that impact on public sector management, particularly financial reporting and good governance. The Public Accounts Committee (PAC), one of the oversight committees of the Parliamentary, has deliberately accorded priority to the accountability of resources allocated to the Embassies Missions / by conducting special sessions where all parliamentary issues from the Missions/Embassies were addressed and recommended measures to the Ministry for improvement. With these efforts, I believe the Ministry of Foreign Affairs and International Cooperation has a crucial role to play in order to make sure that the Sub-Warrant Holders in the Embassies/Missions take actions on the recommendations issued to them. I would like to acknowledge the professionalism and commitment of my staff in achieving our goals and undertaking the work associated with meeting our ambitious audit programs despite working for many hours in very difficult conditions marked with, insufficient working tools and low salaries. I hope that the National Assembly will find the information in this report useful in holding the Government to account for its stewardship of public funds and its delivery of improved public services to Tanzanians. In this regard, I will appreciate to receive feedback from the users of this report on how to further improve it in the future.

Ludovick S.L. Utouh CONTROLLER AND AUDITOR GENERAL _____________________________ National Audit Office, Dar es Salaam, March, 2012

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Acknowledgement

I would like to express my gratitude to those who created an enabling environment for me to discharge my Constitutional obligations. I would like to thank every member of my staff for their endeavours to once again, meet the statutory reporting deadline. With lots of appreciation, I am obliged to pay tribute to my family and the families of my staff members for their tolerance during our long absence from them in fulfilling these Constitutional obligations. I am equally indebted to all other stakeholders including the Paymaster General, the Treasury and all Sub Warrant Holders in the Embassies / Missions and the Permanent Secretary of the Ministry of Foreign Affairs and International Cooperation for the support and cooperation in providing vital information needed for the preparation of this report. I would also like to thank the Government Printer for expediting the printing of this report for its timely submission. Last but not least, I would like to thank all the public servants throughout the Embassies / Missions for their invaluable contributions in upholding the status of our Missions/Embassies. May the almighty God bless you all as we commit ourselves to promote accountability on the use of public resources in the country.

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List of abbreviation

A/C Account

ACGEN Accountant General

CFS Consolidated Financial Statements

CPO Central Payment Office

HIV Human Immuno-deficiency Virus

IFMS Integrated Financial Management System

INTOSAI International Organization of Supreme Audit Institutions

ISA International Standards on Auditing

LPO Local Purchase Order

MDAs Ministries, Departments and Agencies,

NAO National Audit Office

PFA Public Finance Act (No. 6 of 2001(revised 2004)

PFR Public Finance Regulations, 2001

PMG Paymaster General

PPA Public Procurement Act (No. 21 of 2004

PPRA Public Procurement Regulatory Authority

Reg. Regulation

Sect. Section

URT United Republic of Tanzania

USD United States Dollars

PAC Public Accounts Committee

PEs Procuring Entities

AO Accounting Officer

PMU Procurement Management Unit

Cap Chapter

SDR Special Drawing Rights

IPSAS International Public Sector Accounting Standards

PEs Procurement Entities

PMU Procurement Management Unit

LBS Local Based Staff

MoFAIC Ministry of Foreign Affairs and Corporation

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TABLE OF CONTENTS

Office of the Controller and Auditor General ........................................ i

Vision . ..................................................................................... i

Mission ..................................................................................... i

Foreword ................................................................................. ii

Acknowledgement ....................................................................... iv

List of abbreviation ...................................................................... v

CHAPTER 1 ................................................................................3

1.0 BACKGROUND AND GENERAL INFORMATION .................................3

1.1 Audit of Embassies/Missions .....................................................3

1.2 Functions and Responsibilities of the CAG to the Missions/Embassies .....3

1.3 Organisation of Audit Work at the National Audit Office ....................4

1.4 Scope and applicable audit standards ..........................................4

1.5 Accounting Policies ................................................................5

1.6 Statutory responsibilities of Embassies/Missions ..............................5

1.7 Internal control system ...........................................................5

1.8 Preparation and submission of financial statements for audit ..............6

CHAPTER 2 ................................................................................7

2.1 REVIEW OF THE IMPLEMENTATION OF THE PREVIOUS YEAR’S

AUDIT FINDINGS AND RECOMMENDATIONS ...................................7

CHAPTER 3 ................................................................................9

3.0 Revenue collection and finding analysis ........................................9

3.1 Introduction ........................................................................9

3.2 Comparison of the Exchequer issues received, and actual expenditure for

Mission/Embassies .................................................................9

3.3 Revenue performance .............................................................9

3.4 Audit findings from audits of Missions/Embassies ........................... 10

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CHAPTER 4 .............................................................................. 35

4.0 Presentation and Analysis of Audit Results .................................. 35

4.1 Introduction ...................................................................... 35

4.2 Types of audit Opinion .......................................................... 35

4.3 Unqualified Opinion without Emphasis of Matters .......................... 37

1. Sub – Vote 2019 – Brussels ...................................................... 37

2. Sub – Vote 2031 - Lumpur in Malaysia ........................................ 37

3. Sub – Vote 2020 – Geneva ....................................................... 37

4.4 Unqualified Opinion with Emphasis of Matters .............................. 37

4.5 Qualified Opinion ................................................................ 55

4.6 Adverse Opinion .................................................................. 55

4.7 Disclaimer of Opinion ........................................................... 55

CHAPTER 5 .............................................................................. 57

5.0 CONCLUSION AND RECOMMENDATIONS ..................................... 57

5.1 Conclusion ........................................................................ 57

5.1.1 Revenue Retention .............................................................. 57

5.1.2 Budget deficiencies ............................................................ 57

5.1.3 Mismanagement of Government Properties ................................. 57

(a) Visa sticker Machines ............................................................. 57

5.1.4 Non updating of the Foreign Services Staff Regulations 1979 ............ 58

5.1.5 Ownership of land and buildings .............................................. 58

5.2 Recommendations ............................................................... 58

6.0 Appendices ....................................................................... 59

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Executive Summary This year’s Annual Audit Report for the Embassies/Missions covers the following: (A) Introduction; (B) Trend of Audit Opinions issued; (C) Major internal control weakness noted during the audit; (D) Conclusion and Recommendations; A: Introduction This part gives a summary of the final results of the audit of the financial statements of the Mission/Embassies for the financial year ended 30th June 2011. The scope of audit in the Mission/Embassies covered also 5 consulates. The remaining consulates (-) will be covered in the next audit depending on the availability of funds. B: Audit Opinions For the year under review, there has been a positive improvement in the Opinions issued to the Mission/Embassies compared to the previous year as tabulated below: Table 1: Opinions Trend

Category Unqualified Opinion Qualified Opinion Adverse Opinion

FY 2008/2009 2009/2010 2010/2011 2008/2009 2009/2010 2010/2011 2008/2009 2009/2010 2010/2011

12mbassies

/ Missions 27 29 32 4 2 0 1 0 0

From the table above, the trend shows that Unqualified Opinions for Embassies/ Mission have increased from 55 (71 %) to 69 (85%) while Qualified Opinions have decreased from two in the financial years 2009/2010 and 2010/2011 respectively. This year’s results have not recorded any Adverse Opinion as compared to the previous year. Moreover, there were no Embassies/ Mission which was issued with a Disclaimer of Opinion.

C: Major findings noted during the audit During the course of the audit, we once again noted a number of serious weaknesses which are covered in detail under the respective chapters of this report. These weaknesses are mainly on non compliance with the existing legislations/regulations, lack of proper internal control systems and where such systems exist they are to a large extent neglected. The main findings can be summarized as follows: • Expenditure from revenue collected which resulted to excess Vote in the Sub-votes

has amounted to Shs.3,013,732,776.00 at the year end. • Problems associated with revenue retention scheme including irregular transfer of

funds from consulates to Embassies/ Missions and Ministry of Head quarter.

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• Un disposed off assets compiled in the stores in Berlin, Tokyo and other Embassies

reported an accumulation of used assets which needs Ps – MoFIC to grant permission for disposal.

• Non availability of title deeds of the land and buildings in the Embassies/ Missions. • Undeveloped plots which have remained for a number of years.

Plot in London, Dubai, Nairobi, Maputo, Abuja have remained undeveloped for many year.

• Inadequate release of funds in line with appropriation acts. As at the reporting date, the Embassies/Missions reported underfunding though budget by Shs.3,907,082,332.80

• Outstanding liabilities For the period ended 30th June, 2011, Embassies/ Missions reported outstanding

liabilities amounting to Shs. 5,336,648,246.53. Appendix IV

• Outdated Foreign Service Regulation

Foreign service Regulation remained in updated since 1979 to date regardless of massive changes in the working stations overseas.

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CHAPTER 1

1.0 BACKGROUND AND GENERAL INFORMATION

Introduction This report is issued following the audit of the accounts and underlying documents of the Tanzanian Embassies / Missions pursuant to Article 143(4) of the Constitutions of the URT of 1977 (revised 2005) and Sect. 34 (1) of the PAA No. 11 of 2008 for the financial year ended on 30th June, 2011.

1.1 Audit of Embassies/Missions

I am required by Article 143 of the Constitution of the URT to audit all the Embassies/Missions and all office, Courts and Authorities of the Government of Tanzania and submit my report to the President who shall cause them to be laid before the Parliament. In discharging these duties, I am required by Section 10 of the Public Audit Act No. 11 of 2008, to satisfy myself that: • All reasonable precautions have been taken to safeguard the collection of

public moneys and that the law, directives or instructions relating thereto have been duly observed.

• All monies from the Consolidated Fund are authorized and issued according to the Appropriation Act.

• All monies disbursed have been expended and applied under proper authority and have been spent for the purpose intended by such authority. Also, adequate regulations exist for the guidance of storekeepers and stores accounts and that they are duly observed. In addition, I have the duty, by virtue of the same section to draw the attention of the President/Parliament to any apparent lack of economy in the expenditure or use of public moneys or stores.

1.2 Functions and Responsibilities of the CAG to the Missions/Embassies

The statutory responsibilities of my office are to audit the accounts of including those of Embassies/Missions as given under Sect. 10(1) of the Public Audit Act No.11 of 2008. From the law, I am responsible for examining, inquiring into, auditing and reporting on the accounts of all Ministries and Departments of the Government and their Accounting Officers, it includes all persons entrusted with the collection, receipt, custody, issue or payment of public monies or with the receipt, custody, issue, sale, transfer or delivery of any stamps, securities, stores or other public property. Further, my responsibilities cover all Public Authorities and Other Bodies including any authority or body which receives funds from the Consolidated Fund or from public monies for public purpose, any authority or body which is

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authorized by law to receive money for public purpose and any authority or body required by law to be audited by my office.

1.3 Organisation of Audit Work at the National Audit Office

The report provides a summary of the final results of the audit exercise, which was carried out by my Office throughout all the 32 Embassies/Missions during the first two weeks of March, 2012 for the period ended 30th June, 2011.

In the previous four years, the audit results of the Missions/Embassies were reported under Vote 34 - Ministry of Foreign Affairs and International Cooperation. This year the findings are reported separately due to delays in release of funds from Treasury for the exercise, hence could not be completed on time to beat the deadline for inclusion in the General report of the Central Government.

1.4 Scope and applicable audit standards

1.4.1 Scope of Audit The scope of audit which is based on risk and materiality covered areas of revenue collection which was extended to about 5 Honorary consulates for the first time which covered expenditure authorization in terms of the Appropriation Act, performance of Ambassadors or heads of Missions in terms of Economic Diplomacy roles, procurements and assets management. I could not cover all the Honorary consulates due to inadequate financial resources and time for reporting. Audits were performed to satisfy myself as to compliance with established laws and regulations, the exercise of economy, efficiency and effectiveness in the utilization of public resources and to highlight irregularities, although not exhaustively. In the cause of the audit, the findings are brought to the attention of the Heads of the Missions, Ambassadors and the Accounting Officer of Vote 34 with copied the reports and management letters for action on all issues which needs the attention of the Ministry. 1.4.2 Applicable Auditing Standards

The National Audit Office (NAO) is a member of the International Organisation of Supreme Audit Institutions (INTOSAI), the African Regional Organization of Supreme Audit Institutions (AFROSAI) and the African Regional Organization of Supreme Audit Institutions – English speaking Countries (AFROSAI - E). We therefore apply in all our audit procedures, the auditing standards issued by INTOSAI (ISSAI) and the International Standards on Auditing (ISA) issued by the International Federation of Accountants (IFAC) in which Tanzania is a member through the National Board of Accountants and Auditors (NBAA). It is my pleasure to state here that Tanzania (through the Controller and Auditor

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General) is currently the chair of AFROSAI-E with effect from April 2011 for a tenure of three years. AFROSAI-E comprises 24 members across Africa. The SAI of Tanzania is the Coordinator of WEGA African Region whereas in November, 2011 the UN Generally Assembly voted the Tanzania CAG to be a member of the UN Board of Auditors together with Auditors General of China and United Kingdom effective from 1st July, 2012.

1.5 Accounting Policies

Reg. 53 of the Public Finance Regulations of 2001 (revised 2004) states that; the accounting policies of the Government are framed so as to ensure that the resources appropriated by the parliament are properly accounted for. However, on revenue collected in the Embassies /Missions, the Treasury has granted 100% retention of revenue collected for operations in the respective missions. Payments out of the Consolidated Fund will be through appropriations by Parliament.

Accounts have been prepared based on IPSAS - cash basis of accounting. Under IPSAS cash basis of accounting, revenue earned by the Government is not realized until received in cash. On the expenditure side, charges are made only when the payment has been processed thoroughly.

Sect 25(i) to (j) of the Public Finance Act No. 6 of 2001 (revised 2004) elaborates on the accounts and statements to be prepared by Accounting Officers and submitted to the Controller and Auditor General for audit purposes.

1.6 Statutory responsibilities of Embassies/Missions

In Embassies/Missions, the Sub-Warrant holders are the stewards of the Public resources under their areas of responsibilities. Their functions and responsibilities are stipulated in Sect.8 of the Public Finance Act No.6 of 2001 (revised 2004), is that Sub Warrant Holders are responsible and accountable for public resources under their jurisdiction. It is of paramount importance for sub warrant holders to ensure the existence of effective and workable internal control system in their work places.

1.7 Internal control system

Internal control systems refer to all means by which Government resources are directed, monitored, and measured. Internal controls play an important role in preventing and detecting frauds/misappropriations and protecting the public resources, both physical and intangible. Implementing an effective internal control structure is an essential responsibility of the management of any entity.

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1.8 Preparation and submission of financial statements for audit

The responsibility for the preparation and presentation of financial statements to the Controller and Auditor General for audit purposes lies with the individual Sub Warrant Holders of the respective Embassies/Missions. In addition, Sect. 25 Sect. 25 of the PFA of 2001 (revised 2004); specifies the types of financial statements to be prepared by the Accountant General, Accounting Officers and other Public Officers administering legally established funds. Moreover, Sect. 25(4) of the same Act requires the accounts to be prepared in accordance with generally accepted accounting principles and the disclosure of the accounting basis used in the preparation of the financial statements is a legal requirement. For the fourth year running, the financial statements of the Embassies/Missions have been prepared based on the IPSAS – cash basis of accounting which is in line with the requirement of Reg. 53 of the PFR of 2001 (revised 2004). All Heads of Missions and Ambassadors are required to prepare performance reports on the achievements recorded in economic diplomacy and adverts made in terms of investment opportunities in Tanzania. This is in line with Reg. 8(5) of the PFR 2001. They are also required to prepare a summary of financial results for the fiscal year of audit in a form approved by the Accountant General and made available to them through the PS – Ministry of Foreign Affairs and International Cooperation.

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CHAPTER 2

2.1 REVIEW OF THE IMPLEMENTATION OF THE PREVIOUS YEAR’S AUDIT FINDINGS AND RECOMMENDATIONS

Introduction This chapter presents results of evaluation made during the current audit on how the Embassies/Missions under the Permanent Secretary – Ministry of Foreign Affairs and International Cooperation has implemented the previous year’s audit recommendations issued by the Controller and Auditor General through the individual reports to various Embassies/Missions The evaluation results were on the following areas: (i) Expenditure over and above the approved budget (ii) Retention of revenue collected in the respective Embassies/Missions (iii) Ownership of the houses in the Embassies/Missions (iv) Delays in developing the plots in the Embassies/Missions (v) Updating of Foreign Service Regulations (vi) Release of funds to the Embassies/Missions

Most of the recommendations in my previous reports were not acted upon. The Ministry of Foreign Affairs and International Cooperation should implement all recommendations which were geared towards direct improvement of systems and processes and those with continuing effects as shown below: Previous Audits recommendations structured responses 2008/2009 Description

Review of revenue retention scheme

• Review of retention scheme in order to ensure that Embassies/Missions remit to the revenue Exchequer Account No.14:50 all revenue collected in excess of amount allowed to be retained to offset budget deficit has not been done despite my previous recommendation.

• Transfers of revenue collections from Missions should be controlled by the Ministry of Finance.

Mismanagement of Government Properties

Problems shown below which inhibit effective use of Visa sticker machines in Embassies/Missions of Kuala Lumpur, Lilongwe, Geneva and Rome have not been resolved as follows: (a) Over monopolization of the right to replace even

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basic parts of Visa Sticker machines (b) Lack of maintenance for the machines (c) Lack of skills to operate the machines

Updating of the Foreign Services Staff Regulations

1979 Updating of the Foreign Service Staff Regulations, 1979 Part I and II to suite the current situation has not been done as recommended in my previous years’ report.

Ownership of land and buildings Title deeds for land and buildings owned by Tanzanian Embassies/Missions in Kampala and Kigali have so far not been acquired despite my previous recommendation. Also efforts geared at developing existing owned plots in our Missions/Embassies have been very minimal.

Final responses of Sub Warrant holder on individual reports submitted to them by the Controller and Auditor General various Embassies/Missions made good progress in implementing outstanding matters arising from the previous years’ audits. However, in this year’s audit 26 Embassies/Mission had previous years’ outstanding

issues with monetary value amounting to Shs.15,999,327,574.54 with Berlin

(Shs.3,481,465,623.44) having the largest share. Appendix III

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CHAPTER 3

3.0 REVENUE COLLECTION AND FINDING ANALYSIS 3.1 Introduction

This section gives a critical analysis of the funding portfolio of the Missions/Embassies for the financial year 2010/2011. Missions/Embassies are mostly funded by Exchequer Issues from the Treasury and the revenue collection for operations to plug off the deficit between approved estimate and the amount released by Treasury. Audit has established that 22 Missions/Embassies have overspent amount of

Shs. 3,013,732,776.08 due to weak internal control over the revenue collected,

whereas 10 Missions have recorded under expenditure of Shs. 655,747,406.00

which calls for review of the retention policy.

3.2 Comparison of the Exchequer issues received, and actual expenditure for Mission/Embassies

Records show that total exchequer issues released by Treasury to the Missions/Embassies in the year 2010/2011 was Shs.44,197,802,015.91 where as actual expenditure was Shs.46,555,788,395.99 Summary of the analysis is shown below: The overspent amount is from revenue collection account

Financial Year (Shs)

Exchequer Issues received (Shs)

Actual Expenditure

(Shs)

Over Expenditure

(Shs) 2010/2011 44,197,803,025.91 46,555,788,395.99 3,013,732,776.08

For detailed analysis refer to Appendix I

3.3 Revenue performance

Total revenue collected in the Missions amounted to Shs.16,481,723,491.37

against approved estimates of Shs.13,743,082,921.67 resulting to over

collection of Shs.3,108,554,806.25 and under collection of Shs.369,914,236.55

Details of revenue collected from each Mission/Embassies is shown at Appendix

II.

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3.4 Audit findings from audits of Missions/Embassies

Issues raised from the Missions/Embassies during audit are detailed in the management letters issued to individual Embassies/Missions Below are pertinent issues raised in each of the audited areas:

1. Bujumbura (i) Lack of Internal Audit Services

Accounting Officers are required to establish an effective Internal Audit Unit by Reg.28-35 of Public Finance Regulations Act 2001 (revised 2004). The Internal Audit Unit is required to appraise the soundness and application of accounting, financial and operational controls within the Ministry of Foreign Affairs and International Cooperation and those corresponding Tanzanian High Commissions abroad, these internal audit services are provided by the internal audit department based in the Ministry of Foreign Affairs and International Cooperation.

(ii) Unremitted revenue to the Ministry Headquarters TShs.25,551,348.20 The Embassy is required not to retain any amount from the collection account, However the audit observed that a total of USD 16,340 equivalent to TShs.25,551,348.20 collected during the year, was not banked at all meanwhile its remaining balance as at 30th June 2011 was found to be only TShs.16,403,527.70 (USD 10,490) which implies that the Embassy has spent TShs.9,147,820.50 (USD 5,850) to finance other activities from the collection account.

(iii) Delayed banking of revenue TShs.32,002,553.10 Audit scrutiny of revenue collection records (from October, 2010 to October, 2011) including the Exchequer Receipt Vouchers, Revenue Cash Collection Book (RCCB), bank paying slips and Bank Statements revealed that revenue collected from Visa fees, emergency travelling documents and passport application fees were not promptly banked for 12 months contrary to Reg. 78 of the Public Finance Regulation 2001(revised 2004) which requires all revenue collected to be banked daily.

(iv) Non submission of analysis of outstanding liabilities TShs.78, 877,773 Pursuant to section 25 (2) (b) of the Public Finance Act No 6 of 2001 (revised 2004) requires Accounting Officers, within a period of three months after the end of the financial year to

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prepare and transmit to the Controller and Auditor General (CAG) in respect of the financial year, a statement of liabilities and commitments outstanding for the supply of goods and services and such other information as the Ministry may require.

2. Kigali (i) Internal Auditor has never provided a report to the Embassy

Accounting Officers are required to establish an effective Internal Audit Unit by Reg. 28-35 of Public Finance Regulation Act 2001 (revised 2004). The Internal Audit Unit is required to appraise the soundness and application of accounting, financial and operational controls within the Ministry of Foreign Affairs and International Cooperation and those corresponding Tanzanian Embassies/Missions abroad, these internal audit services are provided by the internal audit department based in the Ministry of Foreign Affairs and International Cooperation.

(ii) Failure to pay security service debt of TShs.20,778,030 as per

contract agreement The Embassy signed a contract on 01/01/2011 with M/S INTERSEC Security Company for providing security service to the Chancellery Building at Kagugu area and Ambassador’s residence at Kagugu area. The contract comes into effect from 01/01/2011 and ends on 28/02/2012. The agreed service charge per month was RwF.424,800 (VAT exclusive) and RwF 728,000 (VAT inclusive) and the charge may vary and include additional of RwF 120,000 depends on whether the guards are armed or unarmed. Despite the contractual agreement the Embassy has been failed to Service charge for more than eleven months which accumulates dues of RwF.8,053,500 (equivalent to Shs.20,778,030). As per agreement any delay of payment may attract a penalty of 5% of invoice amount for the corresponding month or may forward the issue to the Court.

(iii) Analysis of outstanding liabilities TShs.54, 938,897.76 Pursuant to section 25 (2) (b) of the Public Finance Act No 6 of 2001 (revised 2004) requires Accounting Officers, within a period of three months after the end of the financial year to prepare and transmit to the Controller and Auditor General (CAG) in respect of the financial year, a statement of liabilities and commitments outstanding for the supply of goods and services and such other information as the Ministry may require.

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(iv) Expenditure incurred without budgetary provision TShs.34, 230,877.59

The Embassy management spent beyond the approved budget a total amount of TShs.34,230,877.59 to various payees to meet various Embassy’s official activities without retrospective budgetary approval supported by the reallocation warrant.

3. Abu Dhabi (i) Unapproved expenditure of revenue Dhs.191,700

(TShs.78,213,600.00) Audit examination of the accounting of collected revenue from visa, attestation and other miscellaneous collections noted that amount totaling Dhs.191,700.00 (Tshs. 78,213,600.00) were transferred from Revenue Account No. 0157283097 to local vote account No. 0156086392 all opened in the National Bank of Abu Dhabi for the settlement of various bills and other expenses. Approval of spending revenue from Accounting Officer from the Ministry of Foreign Affairs and international Cooperation was not obtained.

(ii) The Embassy of the United Republic of Tanzania in Abu Dhabi had paid advocacy charge amounting to UAE DHS 25,000.00 (Tshs. 10,200,000.00) for defending Embassy in its case no. 40/2011 at the Emirate of Abu Dhabi Judicial Department Undersecretary Office in respect of Villa No. 27, Madinat Zayed – 14th Street behind the Union National Bank, Sector No. 148. The house is owned by Mubrak Ali Ghanem Al Qubaisi which was rented for one of the Embassy official. The owner of Villa claimed for annual rent because Tanzania Embassy had failed to give notice of vacating the Villa in time according to terms and conditions of the contract Ref No. 2/55 dated 10th November, 2009 for the tenancy period from 12th November, 2009 to 11th November, 2010.

(iii) Outstanding Claims (Liabilities) TShs.31,429,418

The financial statements of the Embassy of United Republic of Tanzania in Abu Dhabi for the year ended on 30th June 2011 reported a sum of TShs.31,429,418 as total outstanding liabilities in respect of LBS gratuity. However, at the time of writing this management letter the amount is still outstanding.

4. Muscat Oman

(i) Un-banked revenue – OMR 12,325 (TShs.47,588,845.50) Audit of sampled revenue collection for the year under review noted that revenue amounting OMR 93,250 was collected from

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visa, attestation and other miscellaneous collections. Out of the amount collected revenue totalling OMR 12,325 (Tshs. 47,588,845.50) was under banked contrary to Reg. No. 78 (1) of the Public Finance Regulations, 2001 (Revised 2004)

(ii) Excess remittances of Local Based Staff Salaries Tshs. 68,255,025.00 Audit verification of the amount remitted by MoFAIC to the Tanzania Embassy of Muscat in respect of the local based Staff salaries for the year under review against actual amount of salaries paid noted over remittance of Tshs. 68,255,025. However, expenditure statement of the excess amount in the Embassy of Muscat has not been made available to the auditor.

(iii) Expire of the Oman Government Assistance. Oman Government had assisted Tanzania Government in provision of the Embassy Office building and Ambassador House in 2005. The assistance effectively expired on 2010, and then extended for two years. However, to the audit date on 23rd February, 2012 the Embassy has not obtained plot(s) for the construction of Office and /or Ambassadors is House.

(iv) Paid claims of the House rent R.O 2,000 The amount was explained though payment voucher no. 8/10/2010 of Sultanate of Oman Riyals 2,000 (Tshs. 8,000,000) paid to M/S Seif Bin Hilal Bin Ali Al-mamary as part payment of house rent claim in respect of the tenant Head of the Chancery. The House is situated at plot No. 4898 in Azaiba Area Muscat and total outstanding rent claim was RO 5,100. House rent was monthly payable.

5. Cairo (i) Loss of potential revenue from apartment Shs. 147,825,000

During the year under review, we carried out an audit inspection at Embassy of Tanzania- Cairo and noted that the Embassy owns a five storey Chancery Building of which four flats are fully occupied i.e. three flats for office use and one being a residential flat for Administrative Attaché. One apartment is vacant for more than 3 years of which could have been used for commercial (rental) purposes with minimum charge of Egyptian Pound (EGP) 300 equivalent to Tshs. 81,000 per day.

(ii) Tel Aviv, Israel Consulate

The consulate was officially opened in March 2003. Since then, the consulate has been doing a remarkable work in issuing visas and attending Tanzania nationals living in Israel as well as promoting Tanzania Tourism.

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(iii) Beirut, Lebanon Consulate

Mr. Albert S. Zakhem was appointed to be the honorary consul from 2002 for the purpose of issuing visas to people visiting Tanzania, attending Tanzania nationals living in Lebanon and promoting Tanzania’s economic and socio-political interest in Lebanon.

6. Kinshasa (i) During the year under review the Embassy transferred

a sum of Shs. 2,250,795 from Visa Collection Revenue account to Vote account without prior approval of the Permanent Secretary of the Ministry and as directed in the Ministry of Foreign Affairs and International Cooperation

(ii) Higher Operating Costs of Old Motor Vehicles

During the audit of financial statements for the year ended 30/6/2011, it was revealed that, the Embassy owns two motor vehicles; Mercedes Benz not in good condition and Suzuki Vitara, which is a Service Car for the Embassy was not operating (grounded).

7. Kampala Revenue shortfall due to vacated house in Khartoum by Uganda Embassy Shs.95,183,992

(i) On review of files we noted that the Uganda Embassy wrote a letter with reference No KHT/C/60 dated 01/07/2011 to Tanzania Embassy that they will vacate the House as no renovation of the property has been made.

(ii) Abolished ERVs books found in use On checking the ERV kept in the office for daily business operations we noted old ERVs books with serial numbers 27885801-27886000, 25623601-256223800 and 18567601-18567800 which were abolished to be used by the Government were kept in the office and used to collect government revenue contrary to Treasury directives.

(iii) Approval for disposal off Grounded motor vehicles not

implemented

On review of Motor vehicle files together with physical yard packing lot visits, we noted that two (2) Motor vehicles were found grounded at THC-Kampala for a long time and authority for disposing off one vehicle was granted vide letter no FA/48/430/01/83 dated 31st March,2011 including other Embassy of Berlin and New York, but for the best reason known to the management no action was taken. In

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addition the Embassy wrote a letter to the Ministry vide letter no THCK/V.60/2/33 dated 11th April, 2011 seeking clarification as to which vehicle should be disposed off among the two Vehicles. To date March, 2012 almost one year since the authority was granted no response has been received from the Ministry and no follow up have been made by the management.

(iv) Items under Supplies and Consumable goods were over spent by Shs.83,159,260 On checking the expenditure against approved budget we noted the items under supplies and consumables to have been over spent when compared with approved estimates and no reasons were stated to justify the over expenditure observed.

8. Pretoria

(i) Under reporting of Property, Plant and Equipment Shs.1,045,575,000 During the year 2010/2011 Tanzania High Commission Pretoria made a major rehabilitation of Head of Mission residence house. After rehabilitation, the Mission contracted M/S Freddy Blake to carry out valuation at a contract sum of South African Rand (R) 8,350 (equivalent of Shs.1,503,919). The valuer came up with the value of R.7,500,000 as open market rate which is equivalent to Shs.1,350,825,000 at closing exchange rate of 180.11. The value reported in the financial statements was Shs.305,250,000 instead of Shs.1,350,825,000

(ii) Transfer of funds from revenue account without Accounting Officer’s Authority Shs.480,796,531 Examination of revenue collection during the year noted that, Shs.868,178,545 was collected from visa application and emergency travelling documents.

9. Maputo (i) Statement of Revenue

The statement of revenue as at 30th June 2011 reflected total revenue collection of Shs.33, 827,549 against the approved estimates of Shs.7,000,000 resulting into over collection of Shs.26, 827,549 which is equivalent to 383% above of the estimated revenue budget.

(ii) Transfer of funds from revenue account without Accounting Officer’s Authority Shs.19,702,872 Examination of revenue collection during the year noted that, Shs.33,827,549 was collected from visa application and emergency travelling documents.

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(iii) Medical refund without Doctor’s prescriptions Shs.4,544,170.32 Scrutiny of payments vouchers noted that, payments amounting to USD.2,906 which is equivalent to Shs.4,544,170.32 was refunded to 3 home based staff contrary to the Reg.143 (iii) of Tanzania Foreign Service Regulations of 1979.

10. Lusaka (i) Short Receipt of funds remitted to the High Commission - Shs.

7,885,575.59 for (Other Charges – OC). The Ministry of Foreign Affairs and International Cooperation and other Institutions remitted funds of Shs. 579,029,553 to the Tanzania High Commission – Lusaka for the financial year 2010/2011 in respect of Other Charges, staff salaries and allowances, in which funds amounting to Shs. 571,143,977.96 was received by the High Commission out of funds remitted, therefore resulted to short receipt of funds of Shs. 7,885,575.59 which have negative impact to the High Commission’s operation activities for the financial year under review. Moreover bank Commissions and charges which lead to decrease of funds remitted are not effected in monthly bank statements to ascertain the actual amount of bank commissions and charges.

(ii) Un-authorised transfer with delayed or no response for Permit requested Shs.82,246,209.50 During the year under review the High Commission collected Shs.91,233,647.05 as revenue. A transfer of Shs.82,246,209.50 was made from the revenue account to Vote account where by permit for some transfers were requested but there was neither a delay nor response while some transfers had no prior permit request from the Permanent Secretary-Ministry of Foreign Affairs and International Cooperation.

(iii) Disposal of assets (Motor vehicles – VOLVO S.90 and ISUZU – KB 260) Examination of assets Register and site visit conducted at the High Commission’s premises revealed that there is a motor vehicle (Volvo S.90) with registration number. 20 CD 61Z, Chassis number YV19691V1119179 purchased in the year 1997. This motor vehicle is fully depreciated according to the policies. Review of relevant documents and other correspondences showed that the high Commission had written a letter with reference TZLU/V.60/9/140 dated 11/09/2009 and letter TZLU/V.60/9/147 dated 20/02/2012 to the Permanent Secretary requesting permit for disposal of this

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motor vehicle but no responses could be obtained.

11. Ottawa

(i) Renovations done without signed contracts - Shs 19,266,924.44 We have reviewed the Tanzania High Commission procurement management, in particular, awarding of contracts and payment records and we noted that various minor building works worth Shs.88,274,193.42 were done without signed contracts contrary to the Procurement Act and Regulation 2005.

(ii) Funds not returned to loan board Shs 183,088.64 (CAD 112.) During the financial year 2010/2011 the Central Government through loan board transferred Shs.7,506,000 to the mission in favour of Juma Kitika who was undertaking Sports degree in Cuba since 2008,according to the letter with reference No NV/74/10 of 22/12/2010 which requires Juma Kitika to return back to Tanzania because he failed to attend lectures for two years from the date of admission. In this situation the mission was directed to spend part of his tuition fees which was already sent to the High Commission for air ticket to get him back home and remaining balance should be refunded to loan board as per letter with reference No CA55/55/039 of 23/12/2010.

(iii) Transfer of Funds from Revenue Account to Canadian Account not Authorized by the Permanent Secretary - Ministry of Foreign Affairs and International Cooperation Shs. 666,753,316 Revenue collection for the financial year 2010/2011 was Shs.623,312,224 while the balance brought forward was Shs.54,183,162.85 hence recording total revenue for the year amounting to Shs.677,495,386.80. However, the High Commission management transferred a total amount of Shs.666,753,316 from Revenue Account to Canadian Vote Account without approval from the Permanent Secretary to the Ministry of Foreign Affairs and International Cooperation.

(iv) Revenue Collections Not Transferred to the Director Of Immigration Shs.3,060,203 (CAD 2,292.76)

During the year under review the Embassy of Canada collected a total amount of TShs.677,495,386.90 from its source of revenue such as receipt from visa, legalization of documents, new passport application form, Emergency travel documents and new and renewal of passport. Out of those collection Shs.3,060,203 equivalent to CAD 2,292.76 was for Director of

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Immigration inrespect of passport issued at the Misson, which should have been transferred to Director of Immigration as at 30th June 2011 However, the funds were not yet transferred to the Director of Immigration services as at the date of audit 24/02/2012.

(v) Un Budgeted Payments for House Mortgage Shs. 30,998,868 (CAD 18,962.80) A test check made to the payment vouchers noted that Tanzania High Commission – Ottawa entered into a contract on 27th October, 2006 for the acquisition of house No 2209. However, payment amounting to Shs. 30,998,868 paid in respect of principal and interest for the mortgage was made under items GOISOI-210322 - housing allowances which was not budgeted for

(vi) Activities performed but the approved budget was zero Shs.109,263,814.651

Review of the budget of High Commission under the Ministry of Foreign Affairs and International Cooperation noted the items having zero budget amounts; However the review of financial transactions in cash books noted that the High Commission spend CAD 8,183.41 for the items with zero budget.

12. Riyadh (i) Unapproved expenditure from revenue SAR 78,000.00

(TShs.29,569,680) Audit examination of the documents of the collected revenue from visa, attestation and other miscellaneous collections noted that amount totalling SAR 78,000.00 (TShs.29,569,680) were transferred from Revenue Account No. 2107014264 to local vote account No. 0001902628 for the settlement of various bills and other expenses without approval of the Accounting Officer Ministry of Foreign Affairs and International Cooperation.

(ii) Outstanding Liabilities SAR 52,220 (TShs.86,163,000) The financial statements of the Tanzania Embassy Riyadh - Saudi Arabia for the year ended on 30th June 2011 reported a sum of SAR. 52,220 as total outstanding liabilities in respect of school fees, electricity, insurance charges, telephone bills and officers allowance.

(iii) Uneconomic rental costs for Chancery and residential accommodation The Tanzania Embassy Riyadh - Saudi Arabia incurs annual rent amounting to SAR 425,000 (Chancery SAR 90,000, home based staff accommodation SAR 335,000) which is equivalent to

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TShs.179,010,000. Rental charges keep on escalating each year due high demand of houses in Riyadh and persistence fluctuation of currencies hence resulting to substantial increases in Rental expenses for the Chancery and residential accommodation in the subsequent years.

13. Abuja

(i) House Rent paid for Flat Not Occupied TShs.37,152,000

During the audit of financial statements for the year under review, the High Commission of Tanzania- Abuja made a payment of Naira 3,600,000 (TShs.37,152,000) to M/S Interstate Architects Ltd in respect of house rent for Administrative Attaché residence for two years from July 2011 to June 2013. However, the Administrative Attaché has already returned home on 12/7/2011 thus the flat is vacant and the government received no value on the paid amount.

14. Harare

(i) Disposal of assets Examination of assets Register and site visit conducted at the Embassy’s office Building revealed accumulation of unused, damaged assets which occupied four (4) rooms. The high commission had written a letter with reference HBA 246/405/01/7 dated 7/11/2011 to the Permanent Secretary requesting disposal of these assets but no responses could be obtained.

(ii) Accreditation

The Embassy of the United Republic of Tanzania Harare is accredited to two countries namely Zimbabwe and Mauritius. During the year 2010/2011 the Embassy has established a Consul Office in Mauritius under the contract referred to as “The Agreement between the Government of the United Republic of Tanzania and the Honorary Consul of the United Republic of Tanzania with jurisdiction over the Territory of Mauritius” signed on 14th March 2011. The Office and the Honorary Consul are strategically positioned and of great importance to the Government, Ministry of Foreign Affairs and International Cooperation and the embassy itself to forge meaningful relations with Mauritius. Due to financial crisis, the High Commissioner has not presented his credentials to Mauritius Government.

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15. Kuala Lumpur

(i) Outstanding Liabilities The financial statements of the Tanzania High Commission in Kuala Lumpur reported Shs.206,889,910.00 being total outstanding liabilities for the year ended on 30th June 2011 as compared to liabilities of Shs.56,479,280.00 for the year 2009/2010 indicating an increase of Shs.150,410,630 or equivalent to 266.3%. The outstanding liabilities at the year end defeats the concept of the cash budget system embraced by the Government.

(ii) Exchange loss Shs.94,329,636

Tanzania High Commission Kuala Lumpur was established in 2008. It was discovered at the time that Malaysia’s financial regulations do not allow any type of cash transactions using any foreign currencies. All over-the-counter transactions including all banks must issue or receive local Malaysia currency. As such, payment of personal emoluments (FSA and net Salary) is all paid out in Malaysia Ringgit (RM) exchanged using Central Bank-determined exchange rate of the day.

(iii) Credentials not presented The Tanzania High Commission in Kuala Lumpur is also accredited to six other countries, namely Thailand, Cambodia, Indonesia, Philippines, Laos and Brunei. The Mission has not yet presented accreditation to two countries, namely Indonesia and Brunei due to non availability of funds and non-fulfilment of other diplomatic procedures.

16. New Delhi

(i) Outstanding liabilities; Shs.111,594,736 The financial statements of the Tanzania High Commission in New Delhi reported a sum of Shs.111,594,736 as total outstanding liabilities for the year ended on 30th June 2011.

(ii) Irregularities in the Handing Over Certificate Regulation 290 of the FSR of 1979 part two requires the outgoing officer to prepare handing over certificate and be countersigned by the incoming officer. However, we noted that the hand over document between the former Head of Mission H.E Eva Lilian Nzaro and the current Head of Mission H.E Eng. John W. H. Kijazi, no mention was made in the document of the existence of the Honorary Consul of Dhaka in Bangladesh which is under accreditation of the Tanzania High Commission in New Delhi since October, 1998, until recently (March, 2011)

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through reliable sources when the Consulate came into the knowledge of the High Commission. We also noted there were no records of handing over between H.E Eva Lilian Nzaro and the outgoing H.E Dr. Ahmad Kiwanuka who was the Head of Mission the time the Honorary Consul of Dhaka Bangladesh was appointed.

17. Berlin (i) Expenditure exceeded an ambit of Vote Tshs.721,181,935

The Berlin financial statements as at 30th June, 2011 disclosed over-expenditure to the tune of Tshs.721,181,935 which resulted from approved estimates of Tshs.1,504,118,166 against net expenditure of TShs.2,225,300,101.

(ii) Irregularities noted in medical refund TShs.119,35,730.65 The Management of Berlin Embassy, paid a huge total sum of Euro.55, 137.47 which was equivalent to Tshs.119, 335,730.65 to various Embassy’s officials as refund costs for medical treatment provided.

(iii) Understatement of the revenue collected from VISA

amounting to TShs.13, 841,590.06 The statement of revenue collection as at 30th June, 2011 reflected revenue collection from VISA fees aggregating to Shs. 1,263,594,905.00.

(iv) Passport fees not remitted to Immigration Department Dar-Es- Salaam Tshs.1, 033,419.84

During the year under review the Embassy Management collected a total amount of Euro.1615 which was equivalent to Tshs.2,985,594.75 from passport fees of which only an amount of Euro.961.24 or Tshs.1,952,174.91 was transferred from the Embassy to Immigration Department, Dar-Es-Salaam which resulted to un-remitted balance of Tshs.1,033,419.84.

(v) Loss on Exchange Rate Fluctuations Shs.213,366,409.79

Funds remitted to the Embassy have been highly affected by monthly exchange rate fluctuations.

(vi) Statement of outstanding liabilities Tshs.193, 567,049.49

Statement of outstanding liabilities for the year under review closed with outstanding liabilities aggregating to Tshs.193, 567,049.49

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18. Paris

(i) Direct expenditure from Revenue Account TShs.816,044,921.53. The financial statements of the supply vote account as at 30th June 2011 closed with an apparent saving of Tshs. 923,396,516.78, the amount has been arrived at by comparing the year’s approved estimates of Tshs. 2,554,802,235.56

(ii) Revenue Collection Exchanged with Cheques Euro 123,463.00 or TShs.326,530,231.33

During the year under review, the Embassy management exchanged cheques with cash collected from Visa amounting to Euro123,463.00 or Tshs.326,530,231.33. This wrong practice cast a shadow of doubts due to the fact that a payee is paid cash collected from Visa and thereafter the cash taken from revenue account would be replaced or credited to the revenue account by a check from recurrent vote account which is contrary to the PFR of 2001.

(iii) Outstanding arrears of staff and suppliers claims to the tune of TShs.167,001,190.08 Statement of outstanding liabilities for the year under review closed with outstanding liabilities aggregating to Tshs.167,001,190.08

19. Rome (i) Irregular refunds for medical expenses TShs.25,734,440

Rome Embassy management paid a huge sum of Euro.12, 867.22 or TShs.25,734,440 to various Embassy officials as refund for medical treatments provided to officials of the Embassy which was not proper due to the fact that the Embassy appear to have been paying medical insurance cover for its officers and their families to meet the same purpose.

(ii) Passport and ETD fees collected but not remitted to Immigration Department Dar-Es-Salaam Euro. 2,835.00 or TShs.5,878,483.50 During the year under review the Embassy management collected a total amount of Euro. 2,835.00 or Tshs. 5,878,483.50 from passport and emergency travelling document fees of which none of the amount collected appear to have been transferred from the Embassy to Immigration Department, Dar-Es-Salaam.

(iii) Loss on Exchange Rate Fluctuation Tshs.87,724,323.54

Funds remitted to the Embassy have been highly affected by

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exchange rate fluctuations. The statement of cash flow as at 30th June, 2011 disclosed effect on exchange rate fluctuations losses to the tune of Shs.87,724,323.54.

(iv) Statement of outstanding liabilities Tshs.816,168,360.64 Statement of outstanding liabilities for the year under review closed with outstanding liabilities aggregating to TShs.816,168,360.64

20. Brussels (i) Outstanding Liabilities for the year ended 30th June 2011 Euro

103,942.04 (TShs.238,230,997.99)

The financial statements of the Tanzania Embassy in Brussels reflected Euro 103,942.04 (TShs.238,230,997.99) being total outstanding liabilities for the period under review.

(ii) Maintenance costs incurred on unserviceable motor vehicles - Euro 14,341.98 (TShs. 30,507,747.85)

It has been noted during audit that the Tanzania Embassy in Brussels owned two motor vehicles for office services i.e. Volkswagen Caravelle with registration No CDR872 and the Representational Car Mercedes Benz S 320 with registration No CDQ 674. The motor vehicles were acquired in February and March 2002 at a price of Euro 26,131.80 and Euro 47,048 respectively.

(iii) Loss of €80 mil of direct budget support and bilateral development partnership with the Kingdom of the Netherlands

Review of the status of implementation of Economic Diplomacy during the year 2010/2011 revealed a communication dated 8th March 2011 sent to the Ministry of Foreign Affairs & International Cooperation of Tanzania by the Netherlands Ministry of Foreign Affairs informing on the intention of the Netherlands Government to stop bilateral development partnership with Tanzania, a measure which will lead to loss of Euro 80 mil per year of Dutch direct budget support to Tanzania.

21. Brasilia

(i) Nugatory expenditure for Rent on unused house Shs.174,218,148

The Mission entered into lease agreement with M/s Cristina Frota Mendonça for lease of House situated at SHIS, QI 07, Conjunto 4, Casa 4, Lago sul, Brasilia, DF. The house was for residence of Administrative attaché and the tenant was obliged to pay the Landlord R$.7,500 per month from 15/10/2009 to

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14/10/2010.

(ii) Lack of Tourism promotion banners and fliers at Embassy reception

Being among of its activities, the embassy has to advertise and promote tourism attractions available in Tanzania in various ways to various people visiting the embassy. One way could be having banners, fliers or/and Newsletters that could be placed at the reception to be seen or given to visitors of the embassy and other people who happen to visit the embassy for any reason. But nothing was on display during audit.

22. Tokyo

(i) Excess Vote in the Supply Vote Account Shs.596,084,384.15 The Embassy was approved to spend Shs.1,608,476,384 in the financial year 2010/2011. However, the Tokyo Embassy spent a total of Shs.2,204,560,767.15 during the year under review, and thus resulting into Excess Vote (expenditure above the approved budget) of Shs.596,084,384.15.

(ii) Non Reconciled figures between Funds transfer by the Ministry and the Reported amounts in the Embassy Shs.12,662,084.07

Review of Embassy financial statements revealed that there were funds sent by the Ministry of Foreign Affairs and International Cooperation but official communication to notify the Embassy was not done, as such the reported financial statements were recorded at Japanese Yen figures whose corresponding Tanzania Shilling value could not be verified.

(iii) Non budgeted for development activities

Shs.49,630,824.41 During the year under review the Ministry of Foreign Affairs and International Cooperation disbursed a total of Shs.581,278,928 for development activities which had no approval of the Parliament. The Embassy of Tanzania in Tokyo could not produce evidence for approval of such development activities besides the fact that it reported expenditure in the development account amounting to Shs.649,630,824.41. The difference constitute an opening balance of Shs.68,351,896

(iv) Over expenditure in Budget Items Shs.620,455,210

Audit scrutiny into the statement of comparison of budget and actual amounts as presented in the financial statements of the Tokyo Embassy for the financial year ended 30thJune, 2011 noted some significant over expenditure in budget items.

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(v) General Observations for Accounting Officer Ministry of Foreign Affairs and International Cooperation to address. Review on the reporting framework for the Embassies revealed that the Ministry fully adopted the International Public Sector Accounting Standards (IPSAS) Cash Basis reporting framework that is being used in the Ministries, Departments and Agencies (MDA) Vote accounts.

(vi) Inadequately disclosed Deposit Account Shs.91,675,886.60 The Embassy did not prepare a Statement of Deposit Account for inclusion into the Financial Statements during the year 2010/2011 rather than a cash flow statement for the deposit account which could not provide all the necessary information to users of the financial statements.

(vii) Inadequately Disclosed Development Account From the analysis above it shows that the Embassy spent Shs.649,630,824.41 out of nil approved budget by the Parliament, therefore recording an Excess vote in the Development Account of Shs.649,630,824.41.

(viii) Inadequate Control in Visa administration in Honorary Consulates

The Visa administration system in the Honorary Consulates are working with hand written and stamped unlike in the Embassies where there are Visa Sticker Machines installed and therefore the visa stickers are issued from the Ministry of Home Affairs with sequential numbers.

(ix) Lack of clear guidance on amounts to be maintained in the Consulate Bank Accounts The Honorary Consulates of both Melbourne and Perth, Australia have been maintaining separate bank accounts for the Tanzania Consulate. Visa fee collections during the months are being remitted to Tokyo Embassy as they fall due. However, up to time of audit March, 2011, there were no clear guidance issued by the Government to Honorary Consuls on how much should be kept on account at end of each month.

(x) Lack of clear guidance on amounts to be maintained in the Consulate Bank Accounts The Honorary Consulates of both Melbourne and Perth, Australia have been maintaining separate bank accounts for the Tanzania Consulate. Visa fee collections during the months are being remitted to Tokyo Embassy as they fall due. However, up to time of audit March, 2011, there were no clear guidance issued by the Government to Honorary Consuls on how much

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should be kept on account at end of each month.

(xi) Inappropriate deduction of 20% on Visa Fee collections in Melbourne, Australia Shs.193,572,276.30 An analysis made into the revenue account records of the Honorary Consulate of Melbourne revealed that the Consulate is deducting twenty percent on all monthly collections as disbursement fees.

23. Beijing

(i) Excess Vote in the Supply Vote Account Shs.334,402,791 The Embassy was voted to spend Shs.1,291,142,573 in the financial year under review. However, the Beijing Embassy spent a total of Shs.1,625,545,364 thus resulting to excess vote (over expenditure) of Shs.334,402,791 against the approved budget.

(i) Outstanding Liabilities Shs. 671,142,630.51 The financial statements of the Embassy as at 30th June, 2011 reflected Shs.134,645,920 as total outstanding liabilities. However, due to non availability of funds to settle outstanding liabilities, the dues had increased to Shs.671,142,630.51 (RMB 2,652,737.67) as at the time of audit (March, 2012)

(ii) Revenue collection transferred to Recurrent Account

without Prior Approval Shs.460,736,880 (RMB 1,857,810) During the year under review the Embassy transferred a sum of Shs.460,736,880 (RMB 1,857,810 as per mean exchange rate as at the end of financial year) from Visa Collection Revenue account without prior approval of the Permanent Secretary-Ministry of Foreign Affairs and International Cooperation as directed in the Ministry of Foreign Affairs and International Cooperation Circular No. 2 of 2003/2004 part A Section 3

(iii) Non budgeted for activities Shs.14,899,843.55

During the year under review, the Embassy had expenditures which were not voted for. It was noted that the Embassy spent Shs. 14,899,843.55 for attending various unbudgeted for activities

(iv) Non budgeted for activities Shs.14,899,843.55 During the year under review, the Embassy had expenditures which were not voted for. It was noted that the Embassy spent Shs. 14,899,843.55 for attending various unbudgeted for activities.

(v) Non Reconciled figures between Funds transfer by the Ministry

and the Reported amounts in the Embassy Shs. 406,227,787.79 Review of Embassy financial statements revealed that there were

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funds sent by the Ministry of Foreign Affairs and International Cooperation but official communication to notify the Embassy was not done. As such the Embassy management recorded the funds as they were found to have deposited in the bank account at the rate prevailing at the end of the month.

(vi) General Observations for Accounting Officer Ministry of

Foreign Affairs and International Cooperation to address Review on the reporting framework for the Embassies revealed that the Ministry fully adopted the International Public Sector Accounting Standards (IPSAS) Cash basis reporting framework that is being used in the Ministries, Departments and Agencies (MDA) Vote accounts. However, its application in the Embassies was assessed by audit to be unsuitable as necessary and important information which would have value to the users of financial statements are not adequately disclosed using the fully adopted IPSAS cash basis.

24. Mombasa - Consulate under Nairobi Mission

(i) Unbanked revenue collection from passport and renunciations fees TShs.790,462.40 Review of ERV books, RCCB bank and bank statements reveals that a total of TShs.790,462.40 collected from passport fees amounts to USD 420 (equivalent to TShs.547, 142.40) and a total of TShs.243,320 collected from renunciations fees of (equivalent to KShs.14,000) were not banked till 6th March 2012, This is contrary to the Public Finance Regulation No. 60 of 2001 (revised 2004).

(ii) Improperly vouched expenditures TShs.1,645,421

Pursuant to Reg. 95 (4) of the Public Finance Regulations, a payment voucher which is incomplete because of its supporting documents is missing shall be regarded as missing voucher. However, during the audit, payments totaling to TShs.1,645,421 was not supported by expenditure particulars

25. Nairobi

(i) Failure of the Tanzania Government to grant a guarantee to NSSF for construction of Chancery offices at Nairobi.

Review of Chancery’s documents concerning development of Embassy’s plot No. 209/13678 Upper Hill, Nairobi and the lease agreement of the Chancery Offices revealed the following: (a) the plot has not been developed for more than ten years (b) National Social Security Fund (NSSF) of Tanzania has agreed to

develop the plot but the Government did not respond to date. (c) For a plot being undeveloped for such years, invaders have been

attracted to take the plot. Refer to case No. 655 of 2009 between LAMSHORE LIMITED VS BIZANJE K.U.D.K (MISC. APPL. NO. 655 of

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2009 LAMSHORE LIMITED VS BIZANJE K.U.D.K) though the court rules that the plot is the property Tanzania High Commission Nairobi but the Embassy had incurred a cost of TShs.55,686,542.55 for paying an advocate Masara Company and Advocates Commissioner for Oaths plus other associated costs of TShs.20,570,790.

26 Washington

(i) Transfer of Funds from Revenue Account To Vote Account

USD 606,421.36

The transfer from revenue to vote account was authorized by HOC contrary to Ministry’s directive which requires the Accounting Officer to approve all transfers within the embassy accounts.

(ii) Activities performed with zero budgets TShs.246,690,602

Examination of the Embassy’s accounts noted the items which have zero budget amounts. However, scrutiny of the statement of itemized expenditure noted that the Embassy spend TShs.246,690,602.00 for the items with zero budget

(iii) Overstated Original Approved Annual Estimates – TShs.995,715,088

Approved budget for the embassy Washington- DC for financial year 2010/2011 was TShs.1,800,875,952 while statement of vote account disclosed TShs.2,796,591,040 as original approved annual estimates. the management did not disclose the difference of TShs.995,715,088.

27 New York

(i) Gratuity arrears for Local staff not paid USD 216,850.04 The review of employment contract agreements between the Embassy management and local Staff dated 1st July 2009 under the terms and conditions of service part XIII (2), which states that there will be no payments in a form of gratuity at the end of a contract instead the same will be covered in a 13th month salary paid at the end of each year.

While the local staffs who were in service with Permanent Mission of Tanzania before 1st of July 2009, their gratuity Claims of one month salary for each year were forwarded to the Ministry of foreign Affairs and International Cooperation for further action. However, up to the time of audit (March 2012) no funds were released for the payments of gratuity claims amounting to USD 216,850.04

(ii) Plant, Property and Equipments not Revalued – Shs.396,293,678.35 Financial statements for the year ended 30th June 2011 disclosed the Plant, Property and Equipment amounting to Shs.396,293,678.35 as balance at the end of financial year.

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However audit scrutiny revealed the following anomalies • The Assets register submitted for audit was stores ledger not

asset register hence it does not indicate balance in value as at 30thJune, 2011 and all other necessary particulars such as internal code number and location. The required particulars are recorded to the inventory sheets;

• Noncurrent asset were not revalued since year 1964 which results to Understatement of Noncurrent assets to the financial statements

• The assets with no values were listed to the statement of Plant, Property and Equipments which implies no revaluation was done

(iii) House and Furniture not in Use – Shs 571,000

Audit of fixed assets conducted at the mission on 1st march

revealed the following:-

• The official residence for Head of Mission located at 30 over

hill road, Mount Vernon, NY 10552 owned by the Government

and furniture are not in use since July 2010.

• HOM is residing in a temporary rented residence located at

86Judson Avenue Dobbs Ferry, NY 10052 at a rent of $ 7,000

per month.

(iv) Overstated Statement of Plant, Property and Equipments and Understated Current Assets - Shs.71,026,545.48 The listed below motor vehicles were disclosed to the financial

statements as asset for the year ended 30th June 2011.

(iv) Activities performed but the approved budget was zero Shs.46,852,337 Review of the budget of Permanent Mission to the United Nation under the Ministry of Foreign Affairs noted the items having zero budget amounts.

28 Addis Ababa

(i) Visa Stickers Machine out of order

It has been two years and a few months since the Visa Sticker machine went out of order. Efforts have been made by the Embassy to contact the Ministry for Finance as well as the Immigration Department so that the technical problem can be resolved. To date the machine has not been fixed.

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(ii) Stores not taken on ledger charge Shs.4,031,720.53 It was revealed through test check that stores purchased worth Shs.4,031,720.53 were not accounted for in the stores ledger contrary to regulation 198 of the Public Finance Regulation- 2004.

(iii) Home based staff received a Nil balance monthly salaries During the review of the payroll sheet for the months of September, December and March which was taken as sample we noted that, two home based officers received nil balance salaries.

(iv) Property, Plant and equipments not linked into Fixed Asset

Register worth Shs.377,667,017 The Property, Plant and Equipment schedule reported that the embassy has assets worth Shs.377,667,017.05. However we were not able to confirm authenticity of the reported figure due to the fact that its Fixed Asset Register lack essential details such as the date of acquisition, value of the asset, type, allocation, condition of the assets and disposal if any. In actual fact the one maintained acts as stores ledger instead of Fixed Asset Register.

(v) Undeveloped Plots No. 23 Kebele Worda 17 allocated for construction of Ambassador’s Residence

The Ethiopian Government gave one plot no .23 Kebele Worda 17 which located at the bole Area free of charge to the Embassy of Tanzania in Addis Ababa for construction of its Ambassador’s Residence in 1996. Due to the need of the Ambassador’s residence the government decided to purchase an additional land adjacent to allocated plot costing USD 63,612.32 equivalent to Shs.81,376,060.36 as at 22nd Feb, 2007. The Embassy of Tanzania in Addis Ababa has owned the plot for 13 years now without developing it contrary to the Ethiopian land Act Development Guidelines which requires that plot allocated should be developed within 3 years after allocation.

29 Lilongwe

(i) Lack of schedule for Foreign exchange gain Shs.195, 270,696 The foreign exchange gain has been reported to be Shs.195,270,696 as compared to a gain of Shs. 203,924,174 in the year 2009/2010 as by the generated system. Due to the non installation of EPICOR system we were unable to verify the accuracy of the figure as no schedule was provided. We also doubted the accuracy of the formula used in the calculation.

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2. (ii) Over expenditure against budget Shs. 259,654,186 A comparison of the approved estimates and actual expenditure in an itemized statement of expenditure for the financial year 2010/2011 revealed an over expenditure of Shs. 259,654,186 as detailed below which bears no authority as per Reg. 46 of the Public Finance Regulations of 2001 (revised 2004).

(iii) Missing High Commission’s Motor Vehicle (Toyota Land

Cruiser-PRADO) The High Commission of the united republic of Tanzania Lilongwe sent its car Toyota Land Cruiser – PRADO with Registration number 42 CD3 from Lilongwe to Dar es Salaam for services and repair as per letter with ref. AB 162/382/03/11 dated 28/11/2007. The High commission wrote a letter with reference number AB 162/382/01/49 dated 15/7/2010 to the Permanent Secretary, Ministry of Foreign and International Cooperation requesting for the return of that vehicle. Till the time of this audit the vehicle had not been returned to the High Commission Lilongwe and no response or feedback has been received from the Ministry of Foreign Affairs despite several reminders.

(iv) Unimpressive High Commissioner’s Representational Car

During our Audit on asset management, we noted that the High Commissioner’s representational car was purchased in the year 2003 (about 10 years ago). The High commission has been incurring a lot of money in subsequent maintenance/repairing resulting from deterioration of the motor vehicle.

(v) Non Beneficial Contributions to NHIF

Review of the medical expenses revealed that apart from the expenses being covered by the mission, employees contribute to NHIF of which they don’t benefit as the service is not available in the country accredited to. According to the Tanzania Foreign service staff regulations of 1979, these employees are supposed to work abroad for period of four (4) years in one country; hence their contributions to NHIF are not necessary.

(vi) Joint Permanent Commission

The Governments of Tanzania and Malawi have established a “Joint Permanent Commission (JPC) in order to foster co-operation on various areas of mutual interests and benefit

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including trade, transport, defence, immigration, agriculture and scientific issues, among others

(vii) Gas and Oil exploration along Tanzania-Malawi Lake Border

The Government of the Republic of Malawi has since September 2011 issued license (green lights) to a UK firm known as “Surestream Petroleum Limited to start exploring for oil in Lake Nyasa.

30. Geneva

(i) Outstanding Liabilities for the year ended 30th June 2011 CHF 418,248.05 (TShs.795,089,512.57) In addition to the above analysis of the financial performance as at 30th June 2011 the financial statements of Tanzania Permanent Mission to the UN in Geneva reflected CHF. 418,248.05 equivalents to TShs.795,089,512.57

(ii) Foreign exchange loss occurred due to remittances made in

currency other than the functional currency in the country of the Mission – TShs.447,895,259.76 (CHF 195,416.78) The Ministry of Foreign Affairs and International Cooperation remits funds to various Embassies as approved by the National Assembly by converting the amount entitled of Tanzania Shillings into functional currencies at the receiving station in the respective foreign country.

31 Stockholm

(i) Over-Expenditure amounting to Shs.170,785,047.00 The net expenditure of TShs.1,057,026,512, spent during the year under review exceeded approved budget of Shs.1,562,323,237 by Shs.170, 785,047.00.

(ii) Transfer of funds to Immigration not acknowledged SEK12,498.20 equivalent to Shs.3,124,550.00

An amount of SEK 12,498.20 (equivalent to Shs.3,124,550.00) was transferred to the Director of Immigration Service Department Dar es Salaam, in respect of passport fees collected by the Embassy, but was not acknowledged by the Director of Immigration.

(iii) Revenue collected by honorary consul Copenhagen not

remitted to the Embassy SEK 47,800.00 equivalent to Shs.11,950,000.00 The Honorary consul of Copenhagen Robert C Anderson died on 13/09/2011 the documents and letters submitted by the daughter of the late censual has revealed the following

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anomalies; Honorary consul has been issuing visa and collected fees in his own receipts and not submitted revenue collected to the Embassy. The a daughter of the late Robert Anderson agreed and committed herself by a letter dated 28/2/2012 that she would remit the amount of SEK 47,800.

(iv) House at Masvägen 28 Täby not renovated

Physical verification of House no 28 located at Masvägen 28 Täby a property of the Embassy of Stockholm revealed that, the House was found in bad condition which need major renovation and no response have been communicated from the Ministry Head Quarter. Furthermore, Ministry of Finance should grant authority to allow the Ministry and Embassy to process and obtain the Mortgage at Stockholm for the renovation of the house and rent the house to generate revenue.

32 London

(i) Expenditure beyond the approved budget Shs. 1,582,860,024.64

During the audit of the financial statements of the High Commission of Tanzania in London (Sub vote 2006) for the year ended 30/6/2011, and the comparison between approved estimate and actual expenditure, we noted the High Commission incurred expenditure in items over and above approved budget of expenditure amounting to Shs.1,582,860,024.64 (refer to the itemised expenditure report for the period ended 30/6/2011.

(ii) Abandoned building not in use

The High Commission of Tanzania in London owns a house with a title deed number NGL706501 located at Colin Deep Garden NW. The house has not been occupied by any staff. A site visit and physical verification conducted by the team of auditors and staff of the High commission noted that the Ministry of Foreign Affairs and International Corporation has neglected to rehabilitate the building.

(iii) A plot not yet developed The High Commission of Tanzania in London owns a plot allocated at 19 Dene wood Road 6 4 AQ with title deed no MX 397371 of 23/5/2005.

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The audit team and staff of the High Commission visited the site on 14/3/2012 and noted that the Ministry’s planned plot which is situated in a prime area for commercial activities is not yet developed for the construction of the Tanzania chancery and official residence for over six years.

34 Moscow (i) Exchange Rate Fluctuation loss resulted to Shs 9,199,464.84

When comparing the funds remitted to the Embassy of Tanzania in Moscow by the Ministry of Foreign Affairs and International Cooperation for the year ended June, 2011 with the Embassy’s receipt, we noted that the Embassy of Tanzania in Moscow has been highly affected by the exchange rate fluctuation loss amounting to Shs.9,199,464.84.

(ii) Credentials not presented The Embassy of Tanzania in Moscow-Russia represents our Country and all former Soviet Union States with exception of three Baltics States. The Embassy is also accredited to 10 countries, namely; Belarus, Ukraine, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Tajikistan and Uzbekistan. As at the time of this audit (March, 2012), the Embassy of Tanzania in Moscow managed to present credentials to only two Countries namely; Belarus and the Ukraine. The Embassy failed to present credentials to other eight accredited Countries on explanations that the Ministry had not furnished the credentials to the Embassy.

(iii) Outstanding Liabilities amounting to Shs.441,225,697.00 In addition to the above analysis of the financial performance as at 30th June 2011 the financial statements of the Embassy of Tanzania Moscow reflected Shs.441,225,697.00 being total outstanding liabilities.

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CHAPTER 4

4.0 PRESENTATION AND ANALYSIS OF AUDIT RESULTS

4.1 Introduction

This chapter, analyses the grounds which gave rise to the issuance of a particular type of Opinion to a Sub vote. The analysis is aimed at amplifying the basic criteria used in forming the Opinions as discussed in the preceding chapters. The auditor's Opinion is a formal Opinion, or a disclaimer thereof, issued by an independent external auditor as a result of an audit on the financial statements or evaluation performed on an entity or subdivision thereof (called an “auditee”). The Opinion is provided to the user of these financial statements as an assurance service in order for the user to make decisions based on the results of the audit. An auditor’s Opinion is considered an essential tool when reporting financial information to users. In the public sector, it is intended to advise the Parliament and other users on whether Embassies/Missions financial statements have been prepared in conformity with the International Public Sector Accounting Standards (IPSAS) - cash basis of accounting and in the manner required by Sect 25(4) of the Public Finance Act of 2001 (revised 2004) including the Embassies/Missions compliance with laws and regulations. Besides having formed an Opinion on the financial statements, the objective of the auditor is to draw users’ attention, when in the auditor’s judgment it is necessary to do so, by way of clear additional communication in the auditor’s report. The situation in which additional communication may be necessary is when:

(a) A matter, although appropriately presented or disclosed in the financial

Statements, is of such importance that it is fundamental to users’ understanding of the financial statements (Emphasis of Matter); or

(b) As appropriate, any Other Matter that is relevant to users’ understanding of

the audit, the auditor’s responsibilities or the auditor’s report (Other Matter).

4.2 Types of audit Opinion

The following are the common types of auditor’s Opinions, each one presenting a different situation encountered during the auditor’s work as follows: (i) Unqualified Opinion

Unqualified Opinion is sometimes regarded by many as equivalent to

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“Clean Audit Opinion”. This type of Opinion is issued when the financial statements presented are free from material misstatements and are in conformity with the International Public Sector Accounting Standards (IPSAS) - cash basis of accounting and in the manner required by Sect 25(4) of the Public Finance Act, of 2001 (revised 2004) including compliance with laws and regulations. It is the best type of an audit Opinion an auditee may receive from an external auditor.

(ii) Qualified Opinion

The auditor shall express a qualified Opinion when: (a) The auditor, having obtained sufficient appropriate audit evidence,

concludes that misstatements, individually or in the aggregate, are material, but not pervasive, to the financial statements; or

(b) The auditor is unable to obtain sufficient appropriate audit evidence on which to base the Opinion, but the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive.

Matters which may give rise to this type of Opinion are as follows:

• Expenditures incurred without payment vouchers. • Goods or services procured were not supported by delivery notes, hence

there is no confirmation whether they were actually received or recorded. • Various payments were not supported by proper documents. • Revenue receipt books were not submitted for audit verification. • Assets owned or purchased were not supported by schedules. This may lead

to doubtful existence of the Assets. • Unavailability of confirmation from the payees on the payments made. Lack

of acknowledgement receipts from the payees could lead to possible misappropriation of funds. In this regard, there is a limitation of scope of audit.

• Where the auditor is able to form an Opinion on a matter but this conflicts with the view given by the financial statements (Disagreement in best practice on records keeping and non compliance with Laws and Regulations).

Disagreement with management on best practices on records keeping and compliance with Laws occurs in the following situations:

• The assets are owned by the Embassies/Missions but not recorded in Registers.

• Stores purchased and paid for are not recorded in stores ledgers; hence the issues and utilities cannot be ascertained.

• There are no disclosures of bank balances in the books of account. • When the accounting records are omitted, incomplete or inaccurate.

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• Where there is inadequate disclosure of accounting policies. • When the Embassies/Missions uses inappropriate accounting method e.g.

inappropriate depreciation rate/charge.

Qualified Opinion will therefore show that financial statements present fairly the state of affairs except for effects of a specific audit observation. (iii) Adverse of Opinion An adverse Opinion is expressed when, having obtained sufficient appropriate audit evidence, the auditor concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements; thus do not conform to the International Public Sector Accounting Standards (IPSAS) - cash basis of accounting and in the manner required by Sect.25(4) of the Public Finance Act of 2001 (revised 2004), essentially stating that the information contained is materially incorrect, unreliable, and inaccurate in order to assess the Embassies/Missions results of operations. The wording of the adverse Opinion are clear in which the auditor state that the financial statements are not in accordance with the International Public Sector Accounting Standards (IPSAS) - cash basis of accounting and in the manner required by Sect 25(4) of the Public Finance Act of 2001 (revised 2004). (i) Disclaimer of Opinion A Disclaimer of Opinion, commonly referred to as a Disclaimer, is issued when I could not form, and consequently refuse to express an Opinion on the financial statements. This type of Opinion is expressed when I tried to audit an entity but could not complete the work due to various reasons and therefore I do not issue an Opinion. Certain situation where a disclaimer of Opinion may be appropriate includes: lack of independence, or, when there are significant scope limitations, whether intentional or not, or when one refuses to provide evidence and information to me in significant areas of the financial statements and when there are significant uncertainties within the auditee.

4.3 Unqualified Opinion without Emphasis of Matters

A total of 3 (9%) out of the 32 Embassies/Missions audited this year managed to be issued with Unqualified Opinion without Emphasis of matter. Below is the list of Embassies and Missions:

1. Sub – Vote 2019 – Brussels 2. Sub – Vote 2031 - Lumpur in Malaysia 3. Sub – Vote 2020 – Geneva

4.4 Unqualified Opinion with Emphasis of Matters

29 Embassies/Mission (91%) were issued with Unqualified Opinion with Emphasis of Matters.

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The following are the details of Unqualified Opinions with Emphasis of Matters

and other matters for individual Sub – votes.

1. Sub - Vote 2028 - Bujumbura (i) Unremitted revenue to the Ministry Headquarter

TShs.25,551,348.20 The Embassy is required not to retain any amount from the collection account, However the audit observed that a total of USD 16,340 equivalent to TShs.25,551,348.20 collected during the year, was not banked at all meanwhile its remaining balance as at 30th June 2011 was found to be only TShs.16,403,527.70 (USD 10,490) which implies that the Embassy has spent TShs.9,147,820.50 (USD 5,850) to finance other activities from the collection account.

(ii) Delayed banking of revenue TShs.32,002,553.10

Audit scrutiny of revenue collection records (from October, 2010 to October, 2011) including the Exchequer Receipt Vouchers, Revenue Cash Collector Book (RCCB), bank paying slip and Bank Statements revealed that revenue collected from Visa fees, emergency travelling documents and passport application fees were not promptly banked for 12 months contrary to Reg. 78 of the Public Finance Regulation 2001(revised 2004) which requires all revenue collected to be banked daily.

2. Sub - Vote 2026 - Kigali

Expenditure incurred without budgetary provision TShs.34, 230,877.59 The Embassy management spent beyond the approved budget a total amount of TShs.34,230,877.59 to various payees to meet various Embassy’s official activities without retrospective budgetary approval supported by the reallocation warrant.

3. Sub - Vote 2023 - Nairobi

(i) Fuel not taken into ledger charge TShs.11, 187,500 The audit observed that there is no stores ledger maintained by the Embassy to control fuel movements and other store items.

(ii) Improperly vouched expenditures TShs.5,098,767.70

Pursuant to Reg. 95 (4) of the Public Finance Regulations, a payment voucher which is incomplete because of its supporting documents is missing shall be regarded as missing voucher. However, during the audit payments totaling to TShs.5,098,767.70 (which is equivalent to KShs 277,862) were not supported by expenditure particulars such as lease and security agreement.

(iii) Unconfirmed Foreign Exchange Loss TShs.33, 712,840 During examination of statement of receipts and payments for financial year 2010/2011 a foreign exchange loss of TShs.33,712,840 was disclosed without analysis for audit scrutiny.

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(iv) Unbanked revenue collection from passport and renunciations

fees TShs.790,462.40 Review of ERV books, RCCB bank and bank statements reveals that a total of TShs.790, 462.40 collected from passport fees amounts to USD 420 (equivalent to TShs.547, 142.40) and a total of TShs. 243,320 collected from renunciations fees of (equivalent to KShs. 14,000) were not banked till 6th March 2012, This is contrary to the Public Finance Regulation No. 60 of 2001 (revised 2004).

(v) Misappropriation of Consulate’s petty cash TShs.1,560,528 The Vice Consulate General in Mombasa has been authorized to use petty cash payments standing imprest of KShs. 100,000 (TShs.1,800,000) through a letter dated 11th August, 2010 with reference No. CA 226/277/01/68 from the Permanent Secretary, Ministry of Foreign Affairs and International Corporation. Audit examination on petty cash imprest book, authorized minutes, and attached receipts/cash sales for two consecutive financial years i.e. 2009/10 and 2010/11 noted that the petty cash payments were misappropriated. A local based staff who was an accountant by then used to overstate actual expenses incurred when requesting for petty cash replenishment. When replenishment is requested by the Accountant the sum of expenses incurred and retirements/receipts made are not tallying, however by recalculating the amount requested it was found out that there was still some cash balance remained. Unfortunately the Vice Consul General authorizes reimbursement without recalculating actual expenses incurred and receipts attached for that particular replenishment requested.

4. Sub Vote 2025 - Abuja

The Commission transferred from revenue to current account TShs.20,588,761 without the authority of the Permanent Secretary Ministry of Foreign Affairs and International Cooperation.

5. Sub - Vote 2002 - Berlin

Net expenditure exceeded an ambit of Vote by Tshs.721,181,935 The Berlin financial statements as at 30th June,2011 disclosed an

over-expenditure to the tune of Tshs.721,181,935 which resulted

from approved estimates of Tshs.1,504,118,166 against net

expenditure of Tshs.2,225,300,101.

(ii) Purchase of assets not approved Shs.1,976,985.05

The statement of comparison of budget and actual amount spent as

at 30th June,2011 disclosed capital expenditure of Tshs.1,976,985.05.

However, audit scrutiny revealed that this expenditure item could not

be budgeted and approved for purchases of assets for the year under

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review.

(iii) Questionable medical refunds Tshs.119, 335,730.65

The Management of Berlin Embassy, paid a huge total sum of Euro.55,

137.47 which was equivalent to Tshs.119, 335,730.65 to various

Embassy’s officials as refund costs for medical treatment provided.

However, it was revealed during the audit that the practice of

refunding costs of medical treatment is not proper due to the fact

that the Embassy has no medical practitioners as stipulated in

Tanzania Foreign Service Regulations, 143 (iii).

(iv) Passport fees not remitted to Immigration Department Dar-Es-

Salaam Tshs.1, 033,419.84

During the year under review the Embassy Management collected a

total amount of Euro.1615 which was equivalent to

Tshs.2,985,594.75 from passport fees of which only an amount of

Euro.961.24 or Tshs.1,952,174.91 was transferred from the Embassy

to Immigration Department, Dar-Es-Salaam which resulted in un-

remitted balance of Tshs.1,033,419.84.

6. Sub - Vote 2031 - Brasilia

Payment of rent for unused house Shs.116,015,625 (i) The Government continued pay the rent for 15 months from

April, 2010 to June, 2011 to the tune of R$.112,500 equivalent to Shs.116,015,625 for the house that the embassy was not using.

(ii) The Government had to incur maintenance cost of R$.47,290 equivalents to Shs.48,767,813 for delaying maintenance instead of R$.25,320 equivalents to Shs.26,111,250 if it was maintained and returned immediately.

(iii) Also the Mission paid R$.9,149 equivalents to Shs.9,434,710 for water bills, the cost which could not be incurred if the lease was terminated immediately.

7. Sub – Vote 2027 - Abu Dhabi Outstanding Claims of Local Based Staffs (Liabilities) TShs. 31,429,418

8. Sub - Vote 2024 - Riyadh Outstanding Claims - Liabilities SAR 52,220 (TShs. 86,163,000)

9. Sub - Vote 2022 - Harare

(i) Valuation of assets including buildings and motor vehicles has not been since the embassy was established.

(ii) There is no clear explanation as to how the figure for foreign

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exchange loss was arrived at.

10. Sub - Vote 2010 - New Delhi

Irregularities in the Handing Over Certificate Regulation 290 of the FSR of 1979 part two requires the outgoing officer to prepare handing over certificate and be countersigned by the incoming officer. However, we noted that the hand over document between the former Head of Mission H.E Eva Lilian Nzaro and the current Head of Mission H.E Eng. John W. H. Kijazi, no mention was made in the document of the existence of the Honorary Consul of Dhaka in Bangladesh which is under accreditation of the Tanzania High Commission in New Delhi since October, 1998, until recently (March, 2011) through reliable sources when the Consulate came into the knowledge of the High Commission. We also noted there were no records of handing over between H.E Eva Lilian Nzaro and the outgoing H.E Dr. Ahmad Kiwanuka who was the Head of Mission at the time the Honorary Consul of Dhaka Bangladesh was appointed. Under this scenario, there are no records available at the Mission showing remittance of visa fee collections to the High Commission New Delhi from the Consulate of Bangladesh.

11. Sub - Vote 2014 - Beijing

(i) Excess vote Shs. 334,402,791 The Embassy spent an amount of Shs 1,625,545,364 against the approved budget of Shs. 1,291,142,573 resulting in an over expenditure of Shs. 334,402,791 as at 30th June 2011.

(ii) Non settled Liabilities Shs. 671,142,630.51 The Tanzania Embassy in Beijing as at 30th June, 2011 had liabilities amounting to Shs. 134,645,920. However, due to nor availability of funds to settle for liabilities, and fact that Embassy staff have continued being getting service on credit, the liabilities were found to have increased to Shs.671,142,630.51 as at the time of audit (March, 2012).

(iii) This situation subjects the Embassy into encounters with Foreign Service providers which may have effect in eroding the Mission’s credibility and standing in the eyes of hosts and international community in China.

(iv) Transfer of revenue into Recurrent Account without prior

authority Shs. 460,736,880 A sum of Shs. 460,736,880 (RMB 1,857,810) was transferred from Visa Collection Revenue Account to Recurrent Account without prior approval of the Permanent Secretary the Ministry of Foreign Affairs and International Cooperation

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12. Sub - Vote 2017 - Tokyo, Japan

(i) Excess Vote Shs. 2,854,191,592.56 The Embassy spent an amount of Shs. 2,854,191,592.56(Shs. 2,204,560,768.15 for Recurrent Vote activities and Shs. 649,630,824.41 for Development activities) against the approved budget of Shs. 1,608,476,384. This is an excess vote (expenditure without the approval of Parliament) of Shs. 1,245,715,208 (Shs. 596,084,384.15 in Recurrent Vote and Shs 649,630,824.41 in Development Vote Account) as at 30th June 2011. Non Quantified results in Economic Diplomacy The Statement of Performance reported only one budget item on “Bilateral Agreements signed in Japan and countries of accreditation” which spent Shs. 91,626,513 leaving the other planned targets with no monetary values.

(ii) Inadequate Control in Visa administration in Honorary Consulates The Honorary Consulates under the Tokyo Embassy are still issuing handwritten and stamped visas. In addition to that one visa sticker machine which was to be sent to Melbourne is in the stores of Tokyo Embassy, not transported to Melbourne where it was supposed to have been installed and put into use since 2007. Therefore, there is actually no value for money in the acquisition of this machine.

(iii) Inconsistencies in visas pricing Visa prices need to be reviewed to suite the current exchange rates and the reciprocal charged amounts by the other countries both at borders (entry points) and at the Honorary Consulates.

(iv) Lack of clear guidance on amounts to be maintained in the Consulate Bank Accounts Audit review revealed that there were no clear guidance issued by the Government to Honorary Consuls on how much should be kept on account at end of each month. The Ministry of Foreign Affairs and International Cooperation is urged to issue clear guidelines for amounts to be kept by Honorary Consulates.

(v) Inappropriate deduction of 20% on Visa Fee collections in Melbourne, Australia Shs. 193,572,276.30 It was found during the audit that visa fee collections from the Honorary Consulate of Melbourne was being subjected to 20% deductions. However, the signed contract between the Government and the Hon. Consul had no such provision and therefore Shs. 193,572,276.30 deducted from visa collections fees was inappropriate

13. Sub - Vote 2024 - Muscat (i) Deficiency in Statement of performance

The prepared statement of performance for the year ended 30th

June, 2011 lacked certain information considered to be critical for

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evaluation of the Embassy’s achievement of its targets and

objectives. In particular, the following deficiencies were noted:

• Only one strategic objective titled “working environment improved was reported to have achieved during the financial year exhausting the entire amount of Shs 859,998,941 spent during the year under review.

• Performance evaluation on other activities in the Medium Term Expenditure Framework (MTEF) for 2009/2010 – 2011/2012 was not reported upon. These include economic diplomacy enhanced, international peace and security maintained, and communication improved.

(ii) Manual accounting system

The Tanzania Embassy in Muscat Accounting System is operating under manual accounting system. Cash book is maintained in excel and is in both softcopy and hard copy. Accounting procedures of the Embassy are based on the requirements of the International Public Sector Accounting Standards (IPSAS) modified cash basis of accounting, Public Finance Act No. 6 of 2001 (revised 2004) and the Public Procurement Act No. 21 of 2004 together with their accompanying Regulations, 2005. The prior year audit recommendation advising the Embassy to be connected with Integrated Financial Management System (IFMS) under accounting package EPICOR in the Central Payment Office at the Treasury in Dar es Salaam Tanzania has not implemented to date.

(iii) Non performance of internal audit

Reg. 28 of the Public Finance Regulation requires Accounting

Officers to establish an effective Internal Audit Unit. The Internal

Audit Unit is required to appraise the soundness and application of

accounting, financial and operational controls within the Tanzania

Embassy in Muscat. The Tanzania Embassy in Muscat depends on

the Internal Audit Unit from the Ministry’s Headquarters.

However, the last audit was made in the year 2006/07 almost 4

years to the year under review. No internal audit report produced

to audit team when requested.

(iv) Non performance of audit committee Reg.30 of the PFR requires the Accounting Officer to establish an

effective Audit Committee. The Tanzania Embassy in Muscat

depends on the Audit Committee from the Ministry’s

Headquarters.

However, for the year under review no audit committee report

was found to have been made to the Muscat Sub- Accounting

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Officer. In this respect the Sub Accounting Officer could not been

advised on the financial and non financial matters prevailing in

the Embassy.

(v) Non performance of Procurement committee Reg.30 of the PFR requires the Accounting Officer to establish an

effective Audit Committee. The Tanzania Embassy in Muscat

depends on the Audit Committee from the Ministry’s

Headquarters.

However, for the year under review no audit committee report

was found to have been made to the Muscat Sub- Accounting

Officer. In this respect the Sub Accounting Officer could not been

advised on the financial and non financial matters prevailing in

the Embassy.

(vi) Deficiencies in Budgeting processes

Audit test of the budgeting process procedures noted that despite

of the budget been prepared by the Management of the Embassy

no representative from the Embassy been called to defend

prepared budget at Ministerial level since 2007/2008 to the year

under review. Due to non availability of the representative while

discussing Embassy budget has been causing large discrepancies of

the Embassy requirements and approved budget (WI). The

discrepancies have been caused by deleting some important

activities set in draft budget or reducing estimated funds without

communication thus denies Embassy Management to achieve set

objectives.

(vii) Expire of the Oman Government Assistance Oman Government had assisted Tanzania Government in provision

of the Embassy Office building and Ambassador House in 2005.

The Assistance effectively expired on 2010, and then extended in

two years. However, to the audit date on 23rd February, 2012 the

Embassy has not obtained plot(s) for the construction of Office

and /or Ambassador House.

It is estimated that Tanzania Government is saving Oman Riyals

84,000 (7,000 x 12 Months) equivalent to Tshs 336,000,000 at the

prevailing exchange rate of 1 OMR= Tshs 4000 annually for not

paying rent of Office building and Ambassador House.

Unfortunately, no effort made so far to acquire/construct

Embassy accommodation by utilising the saving enjoyed for years.

Upon expiration of the Assistance, the Government is going to

rent both Office Building and Ambassador House and keep paying

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rental charges amounting to more than Oman Riyals 84,000 as

renting cost is increasing each year.

(viii) Vacant post According to the approved staff structure, the Mission is supposed

to have six home based officials inclusive of the Ambassador for

better service delivery. Currently the Mission has only five

officials namely, Head of Chancellor, Minister Chancellor, First

Secretary, Administrative Attaché and Financial Attaché. The

Head of Mission was appointed in January, 2012 but to 27th March

date we concluded audit has not reported to the Embassy. For the

period from October 2010 to 27th March, 2012 position of Head of

Mission was under the Act of Head of Chancellor. However, under

current structure, the position is of crucial, and its absence may

affect internal control procedures in daily operations of the

Embassy and other Diplomacy functions which could result in

material misstatement of the Mission financial affairs and other

diplomacy issues.

(ix) Un-banked revenue – OMR 7,755 (Tshs. 29,943,326) Audit of sampled revenue collection for the year under review

noted that revenue amounting OMR 93,250 was collected from

visa, attestation and other miscellaneous collections. Out of the

amount collected revenue totalling OMR 12,325 (TShs.

47,588,845.50) was under banked contrary to Reg No. 78 (1) of

the Public Finance Regulations, 2001 (Revised 2004).

In addition, we noted that the banked collections were not

referenced with its ERV numbers in the bank deposit slip for quick

reference and audit trail.

Furthermore, bank reconciliation for revenue collection was not monthly prepared for the entire financial year, hence cash book and bank balances remained un-reconciled through-out the year.

14 Sub - Vote 2003 - Cairo

The Embassy management couldn’t manage to recover a total of USD 139,420 which was collected from visas from year 2005 to 2008 by the Honorary Consul entrusted to Tel Aviv, Israel Consulate until her termination on 10th June, 2010.

15. Sub – Vote 2004 - Kinshasa The Commission transferred from revenue to recurrent account

(US$ 1,500) Shs.2,250,795 without the authority of the Permanent Secretary Ministry of Foreign Affairs and International Cooperation.

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16. Sub -Vote 2021- Kampala

(i) Non maintenance of Fixed Assets Register Though the THC-Kampala is having a number of assets, such as computers, motor vehicles, furniture and other office equipments, the above mentioned register is not maintained contrary to regulation 264(2) of PFR 2001(revised 2004).

(ii) Supplies and Consumable goods over spent Shs.83,159,260 On checking the expenditure against approved budget we noted the items under supplies and consumables to have been over spent when compared with approved estimates and no reasons were stated to justify the over expenditure observed.

(iii) Payment not supported with contract agreement worth Shs 3,000,000 During the review of procurement procedures we noted that a supplier M/S Master Clean (L) was paid a total of sum of Shs.3,000,000 for providing services of general cleanliness of the Embassy without contractual obligation.

17 Sub -Vote 2025 - Pretoria (i) Under reporting of Property, Plant and Equipment

Shs.1,045,575,000 The Mission made a major rehabilitation of Head of Mission residence house. After rehabilitation, the Mission contracted M/S Freddy Blake to carry out valuation at a contract sum of R.8,350 (equivalent to Shs.1,503,919). The valuer come up with the value of R.7,500,000 as open market rate which is equivalent to Shs.1,350,825,000.

However, the mission continue to disclose the old price of the valued house at the end of the year as Shs.305,250,000 instead of the new valuated Price of Shs.1,350,825,000 resulting into underreporting of Shs.1,045,575,000

(ii) Transfer of fund from revenue account without Accounting Officer Authority Shs.480,796,531 Examination of revenue collection during the year noted that, Shs.86-8,178,545 was collected from visa application and emergency travelling documents. Further examination noted that, an amount of Shs.480,796,531 was transferred from revenue account to recurrent expenditure without the Permanent Secretary Authority.

18. Sub - Vote 2008 - Maputo (i) Transfer of funds from revenue account without Accounting

Officer Authority Shs.19,702,872 Examination of revenue collection during the year noted that, Shs.33,827,549 was collected from visa application and emergency travelling documents. Further examination noted that, an amount of Shs.19,702,872 was transferred from revenue account to

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recurrent expenditure without Permanent Secretary Authority.

(ii) Unbanked revenue Shs.1,032,055.20 In the examination of revenue accountability during the year, it was noted that, an amount of USD.480 equivalent to Shs.750,585.60 was collected from issued Visa but no any documentary evidence showing that the collected amount was deposited in the Bank. In addition, the Mission issued 9 Emergency Travel Documents, (ETD) to different Tanzanian citizens without collecting ETD fees, hence an amount of USD.180 equivalent to Shs.281,469.60 was also not collected and banked.

19. SUB - VOTE 2007 - Lusaka

(i) Valuation of assets including buildings and motor vehicles has not been done since the High Commission was established.

(ii) There is no clear explanation as to how the figure for foreign exchange gain was arrived at.

20. SUB - VOTE 2030 - Lilongwe (i) Valuation of assets including buildings and motor vehicles has

not been done since the High Commission was established. (ii) There is no clear explanation as to how the figures for foreign

exchange gain were arrived at.

21. Sub -Vote 2001 - Addis Ababa

(i) Visa Sticker Machine out of order

It has been two years and few months since the visa Sticker machine went out of order. Efforts have been made by the Embassy to contact the Ministry for Finance as well as the Immigration Department so that the technical problem can be resolved. To date the machine has not been fixed. The Visa Sticker Machine was meant to keep record of all people visiting Tanzania. Further, the machine was capable of keeping record of all people that have been black listed for security reasons to enter Tanzania. At the moment the Embassy is using a manual process of issuing visas to applicants a process that can be easily misused by people with bad intentions for Tanzania. Terrorists are amongst people who can cheat the current manual visa issuing system and be a security threat to Tanzania national security. There is an urgent need for the Visa sticker machine to be fixed.

22. Sub - Vote 2006 - London Expenditure beyond the approved budget Shs 1,582,860,024.64 The financial statements of the High Commission of Tanzania in

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London for the year ended 30/6/2011, and the comparison between approved estimate and actual expenditure, revealed that the High Commission incurred expenditure in items over and above the approved budget of expenditure amounting to Shs. 1,582,860,024.64,

23. Sub - Vote 2016 - Stockholm (i) Over-Expenditure amounting to TShs.170,785,047.00

The net expenditure of Shs. 1,057,026,512, spent during the year under review exceeded approved budget of Shs 1,562,323,237 by Shs.170, 785,047.00.

(i) Delay in Authorization of Transfer of Funds at the Ministry HQ

The audit under review noted that there is a tendency of delay in the authorization of transfer of funds from revenue account to vote account, from fifteen to sixty nine days,

(ii) Delay in process of referred visa applications to Immigration

Headquarters In review of the selected sample of the referred visa applications, we noted that the referred visa applications to the Immigration Service Department Dar es salaam delayed in processing and approval by between which takes 21 to 56 days.

(iii) Transfer of funds to Immigration not acknowledged SEK 12,498.20 equivalent to Shs 3,124,500.00 An amount of SEK 12,498.20 (equivalent to Shs.) was transferred to the Director of Immigration Service Department Dar es Salaam, in respect of passport fees collected by the Embassy. However, no acknowledgement receipts from the Immigration Department were made available to confirm receipt of the transferred amount.

(iv) Activities implemented out of approved budget Shs 136,404,053

Audit scrutiny of the statement of Performance Report of the financial statements disclosed various activities amounting to Shs. 198,580,408.85 which have been implemented by the Embassy to achieve its objectives. However scrutiny of the same performance report reveals that the activities were implemented without budget provision.

(v) Exchange Rate Fluctuation resulted to amount of SEK 96,651.86 equivalents to Shs, 24,162,750.00 The Embassy of Stockholm has been affected by the devaluation of the currency (SEK) received (Exchange Rate fluctuation) from

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the salaries received from the Ministry of Foreign Affairs and International Cooperation amounting to SEK 96,651.86

(vi) Outstanding Liabilities amounting to Shs. 489,446,560 During the audit of the financial statements of the Embassy of Stockholm for the financial year 2010/2011, we noted that the Embassy closed with outstanding liabilities amounting to Shs 489,446,560. The Ministry of Foreign Affairs and International Cooperation remitted an amount of Shs 133,348,947.00 to the Embassy to settle the outstanding liabilities.

24 Sub - Vote 2009 - Moscow

(i) Overspending in expenditure items as shown in the itemized Statement as at 30th June, 2011 – Shs. 162,325,357 A comparison of the approved estimates and actual expenditure item wise for the financial year 2010/2011 noted an over expenditure of Shs. 162,325,357

(ii) Bank charges for services not budgeted amounting to

Shs. 2,228,733.88 The audit of payment vouchers and other related documents for the year under review, noted that the Embassy of Tanzania in Moscow paid an amount of Shs 2,228,733.88 to Bank for Foreign Trade –Moscow being bank charges for the service rendered for the financial year 2010/2011. We further noted that there was no budget provision for the bank charges cost item.

(iii) Exchange Rate Fluctuation loss Shs. 9,199,464.84

When comparing the funds remitted to the Embassy of Tanzania in Moscow by the Ministry of Foreign Affairs and International Cooperation for the year ended June, 2011 with the Embassy’s receipt, we noted that the Embassy of Tanzania in Moscow has been highly affected by the exchange rate fluctuation amounting to Shs. 9,199,464.84.

(iv) Credentials not presented The Embassy of Tanzania in Moscow-Russian represents our Country and all former Soviet Union States with exception of three Baltics States. The Embassy is also accredited to 10 countries. As at the time of this audit (March, 2012), the Embassy of Tanzania in Moscow had managed to present credentials to only two of the accredited countries. The Embassy failed to present credentials to the other eight accredited Countries on explanations that the Ministry had not

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furnished the credentials to the Embassy.

(v) Outstanding Liabilities amounting to Shs. 25,467,900 The financial performance as at 30th June 2011 of the financial statements of Embassy of Tanzania Moscow reflected Shs 441,225,697.00 being total outstanding liabilities as shown in the financial statements. The Ministry of Foreign Affairs and International Cooperation remitted an amount of Shs. 415,757,797.11 to the Embassy to settle the current (2011/2012) outstanding liabilities leaving a balance of Shs. 25,467,900.

25 Sub - Vote 2011 - New York

(i) Plant, Property and Equipments not revalued – Shs 396,293,678.35

Financial statements for the year ended 30th June 2011 disclosed the Plant, Property and Equipment amounting to Shs.396,293,678.35 as balance at the end of the financial year. However, audit scrutiny revealed that the PPE were not re-valued since 1964.

(ii) House and Furniture not in Use – Shs 571,000 Audit of fixed assets conducted at the mission on 1st march

revealed the following:

– The official residence for Head of Mission located at 30

OVERHILL ROAD, MOUNT VERNON, NY 10552 owned by the

Government is not in use since July 2010.

– HOM is residing in a temporary rented residence located at

86 Judson Avenue Dobbs Ferry, NY 10052 at a rent of $ 7,000

per month. Since August 2010.

However, site visit made to 30 Overhill road, mount Vernon

noted that no action has been taken by the Ministry to

renovate or reconstruct the house to date despite the survey

made by Marin Architects in July 2010 which costed USD

18,500 and reflected the major defects of the house and

action to be taken. Also correspondence from HOM to the

Government explains the extent of the problem and the

budget amounting to USD 3,210,000 for renovation.

Surprisingly, the mission is still paying USD 7000 per month

for the HOM residency while the Government house for HOM

is idle and the bill for Marin Architect amounting to USD

18,500 is still outstanding to date.

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(iii) Gratuity arrears for Local staffs not paid USD 216,850.04 The review of employment contract agreements between the Embassy management and local Staffs dated 1st July 2009 under the terms and conditions of service part XIII (2), which states that there will be no payments in the form of gratuity at the end of a contract instead the same will be covered in a 13th month salary paid at the end of each year. While the local staffs who were in service with Permanent Mission of Tanzania before 1st of July 2009, their gratuity claims of one month salary for each year were forwarded to the Ministry of Foreign Affairs and International Cooperation for further action. However, up to the time of audit (March 2012) no funds had been released for the payments of gratuity claims amounting to USD 216,850.04. The Ministry should immediately remit this sum.

(iv) Accounting System Tanzania Permanent Mission to the United Nations Accounting System should operate under the Integrated Financial Management System (IFMS) using the Epicor accounting software package. Accounting procedures of Tanzania Permanent Mission to the United Nations are based on the requirements of the International Public Sector Accounting Standards (IPSAS) cash basis of accounting, the Public Finance Act No. 6 of 2001 (revised 2004); the Public Procurement Act,2004 together with their accompanying Regulations,2005. However, the IFMS using Epicor accounting software package was disconnected when moving from the 7th floor to the 4th floor and has been not connected for the whole of financial year 2010/2011.

(v) Internal Audit Reg. 28 of the Public Finance Regulation requires Accounting Officers to establish an effective Internal Audit Unit. The Internal Audit Unit is required to appraise the soundness and application of accounting, financial and operational controls within the Tanzania Permanent Mission to the United Nations- New York. The Internal audit service for the Mission is provided by the Internal Unit staff based in the Ministry of Foreign Affairs and International Cooperation. During the year under review, the internal audit staff of the Ministry audited the mission and issued a report. However the

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recommendations of the Internal Audit Unit had not been implemented by the Ministry of Foreign Affairs and International Cooperation by the time the external audit was conducted.

26 Sub- Vote 2018 – Washington Dc (i) 2139 R Street Office Building Not In Use worth - Shs

425,334,560 Tanzania Embassy Washington DC had acquired an office building costing USD 10,427,856.91 located at No.1232 22nd Street NW Washington DC 20037. On 1/03/2010 the Chancery shifted from old office building No.2139 R Street to the new office building 1232 22nd Street NW Washington DC 20037. This is a very commendable step of the Embassy owning its own office building. It is cheaper to the Government in the long run.

(ii) Outstanding items to the Bank Reconciliation

Statements as at December 2011- USD 5,877.32 ( Shs 9,190,541.60) Our review of the bank reconciliation statements revealed several outstanding unpresented cheques which have remained unadjusted as at 30th June 2011 amounting to USD 46,587, However, the review of bank reconciliation statements up to the month of December 2011 noted that the items amounting to USD 40,707.68 have been cleared leaving a balance of USD 5,877.32 un cleared contrary to Reg 162 (1) and (3)of PFR of 2001(revised 2004)

(iii) Foreign Exchange Difference Not Forecasted USD 1,243.68(1,944,779.72) Ministry of Foreign Affairs and International Cooperation transferred funds to the Embassy Washington DC for personal emoluments in respect of home based staff amounting to USD 51,500.82. However test check made to the transfers reveals that the received funds were USD 50,256.14 which is less by USD 1,243.68 due to exchange rate fluctuation which resulted to less payment to staff salaries. The Ministry has an obligation of making good the difference of US.1,243.68 so that the affected staff can be paid their rightful salaries.

(iv) Accounting System Tanzania Embassy - Washington DC Accounting System should operate under the Integrated Financial Management System (IFMS) using the Epicor accounting software package. Accounting procedures of Tanzania Embassy Washington DC

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are based on the requirements of the International Public Sector Accounting Standards (IPSAS) cash basis, the Public Finance Act No. 6 of 2001 (revised 2004); the Public Procurement Act,2004 together with their accompanying Regulations,2005. However the IFMS installed at the Embassy is not working.

(v) Internal Audit Reg. 28 of the Public Finance Regulation requires Accounting Officers to establish an effective Internal Audit Unit. The Internal Audit Unit is required to appraise the soundness and application of accounting, financial and operational controls within the Tanzania Embassy Washington DC. Internal audit service is provided by the Internal Audit Unit staff based in the Ministry of Foreign Affairs and International Cooperation. During the year under review the Ministry’s Internal Audit staff audited the Embassy and issued a report. However, the recommendations of the Internal Audit Unit were not implemented by the Ministry of Foreign Affairs and International Cooperation.

27. Sub -Vote 2012 - Canada

(i) Accounting System The Tanzania High Commission – Ottawa Accounting System is not operating under the Integrated Financial Management System (IFMS) using the Epicor accounting software package. However, accounting procedures of Tanzania High Commission – Ottawa are based on the requirements of the International Public Sector Accounting Standards (IPSAS) cash basis of accounting, the Public Finance Act No. 6 of 2001 (revised 2004); the Public Procurement Act,2004 together with their accompanying Regulations,2005.

(ii) Internal Audit During the year under review, the Ministry’s Internal Audit Unit had not performed any audit service at the Embassy. Ineffectiveness of Internal Audit Unit may fail to review properly and timely the Internal Control System.

28 Sub-Vote 2031 - Brasilia (i) Nugatory expenditure of Rent on unused house Shs.174,218,148

The Mission entered into lease agreement with M/s Cristina Frota Mendonça for lease of House situated at SHIS, QI 07, Conjunto 4, Casa 4, Lago sul, Brasilia, DF. The house was for residence of Administrative Attaché. Despite of the departure

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of the Administrative Attaché, the Embassy did not return the house to the landlord for the reason that, the Mission did not have R$.25,320 equivalent to Shs.26,111,250 for the maintenance of the house to its original state before termination of the lease agreement.

Following the delay on termination of lease agreement, the following were the consequences to the Mission, Ministry and the Government at large:

– The Government had to continue paying the rent for 15 months from April, 2010 to June, 2011 to the tune of R$.112,500 Equivalent to Shs.116,015,625 for the house that the Embassy was not using.

– The Government had to incur maintenance cost of R$.47,290

equivalents to Shs.48,767,813 for delaying maintenance instead of R$.25,320 equivalents to Shs.26,111,250 if it had been maintained and returned immediately.

– Also, the Mission paid R$.9,149 equivalents to Shs.9,434,710

for water bills, the cost which should not have been incurred if the lease was terminated immediately.

In total the embassy spent a sum of R$.168,939 equivalent to Shs.174,218,148 for the house that was not used, hence causing a nugatory expenditure to the Government.

29. Sub-Vote 2013 Paris

(i) Amount spent directly from Revenue Collection Account to Vote

Account TShs.816,044,921.53. (ii) There was an In-adequate follow-up in implementing outstanding

matters that arose in the 2009/2010 audit report. (iii) The Embassy management had un-paid arrears of staff and

suppliers claims to the tune of Tshs.167,001,190.08 (iv) The management incurred expenditure for un-budgeted item known

as other payments TShs.5,014,164.87

30 Sub-Vote 2015 - Rome (i) There was Un-budgeted expenditure for acquisition of

assets TShs.11,116,831 (ii) Cash and bank balances not transferred to PMG Account

TShs.3,636,244.20. (iii) There were questionable payments of medical refunds

amounting to Euro.12, 867.22 or Tshs.25,734,440. (iv) Renovation made for the Chancery building without

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adherence to tender procedures Euro 4,840.00 or Tshs. 9,218,774.60.

(v) There was questionable purchase of fuel coupons amounting to Euro.13, 669.00 or Tshs.27,338,000.

(vi) There was questionable payment for transporting personal effects amounting to Euro. 4,092.00 or Tshs. 7,614,720.96.

(vii) There were unpaid staff and suppliers claims amounting to TShs.816,168,360.64.

(viii) Passport and ETD fees collected but not remitted to Immigration

Department Dar-Es-Salaam Euro. 2,835.00 or Tshs. 5,878,483.50

4.5 Qualified Opinion

No Embassies/Mission audited in the year in question was issued with Qualified Opinion.

4.6 Adverse Opinion

There was no single Sub vote out of the 31 Embassies/Mission audited in the year 2010/2011 that was issued with Adverse Opinion. This is an improvement compared to the year 2009/2010 whereby such an Opinion was issued to one Embassy/Mission.

4.7 Disclaimer of Opinion

During the year under review, I have not encountered any situation which restricted my audit scope to the extent of issuing a disclaimer of Opinion.

4.8 Summary of types of Opinions issued to Embassies/Missions The table below is a summary of the types of audit Opinions issued to Embassies/Mission on the financial statements for the year ended 30th June, 2011

S/NO. Unqualified opinion without Emphasis of Matter

Embassy/Mission 1 Geneva

2 Brussels

3 Kuala Lumpur

Unqualified opinion with Emphasis of Matter

Embassy/mission

1 Muscat

2 Cairo

3 Kinshasa

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4 Kampala

5 Pretoria

6 Maputo

7 Lusaka

8 Lilongwe

9 Berlin

10 Brasilia

11 Beijing

12 New York

13 Washington

14 Bujumbura

15 Kigali

16 Nairobi

17 Abuja

18 Addis Ababa

19 London

20 Moscow

21 Stockholm

22 Rome

23 Paris

24 Tokyo

25 Abu Dhabi

26 Riyadh

27 Harare

28 New Delhi

29 Ottawa

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CHAPTER 5

5.0 CONCLUSION AND RECOMMENDATIONS

5.1 Conclusion

5.1.1 Revenue Retention

The decision of the Paymaster General in collaboration with the Permanent Secretary,

Ministry of Foreign Affairs and International Cooperation to allow embassies and

missions abroad to retain 100% of revenue collected has resulted to misappropriation

of funds by some Sub warrant holders.

5.1.2 Budget deficiencies

Release of inadequate funds as appropriated by Parliament has resulted to budget

deficiencies which has denied to implement our planned activities including

presentation of credentials, rehabilitation, maintenance and repairs of buildings,

motor vehicles and settlement of outstanding liabilities.

5.1.3 Mismanagement of Government Properties

(a) Visa sticker Machines

Problems shown below which inhibit effective use of Visa sticker machines in most of

our Embassies/Missions have so far not been resolved:

i) Over monopolization of the supplier of these machines on the right to

replace even basic parts of Visa Sticker machines

ii) Lack of maintenance for the machines

iii) Lack of skills to operate the machines

(b) Lack of Maintenance policy on Embassies’/Mission Buildings

All Government buildings are under the authority of the Ministry of works and

managed by the Tanzania Building Agency. We noted during audit that buildings in

the Embassies or Missions are in bad shape as they have remained unmaintained for

a long time as mentioned in the report. This include Maputo, London, Pretoria,

Lusaka, and Sweden just to mention a few.

The Ministry of works has not prepared a policy for maintenance of its building

abroad and the following are some of outcomes of missing policy;

i) Failure to prepare sufficient budget on maintenance of buildings ii) Missing of proper records on real estates iii) Missing of clarity who is responsible on real estate iv) Missing of future housing plan.

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5.1.4 Non updating of the Foreign Services Staff Regulations 1979 Updating of the Foreign Services Staff Regulations, 1979 Part I and II to suite the

current situation has not been done as recommended in my previous years’ report. I

reiterate on the urgency of implementation of this recommendation.

5.1.5 Ownership of land and buildings Title deeds for land and buildings owned by Tanzanian Embassies/Missions in London,

Nairobi and Maputo have so far not been acquired despite my previous

recommendation.

5.1.6 Disposal of furniture and motor vehicles

Furniture and motor vehicles have remained un-disposed off for long periods at the

detriment of these assets due to poor communication between the Ministry and

Embassies. Disposal procedures require the Permanent Secretary to grant permission

to Sub Warrant Holders to dispose of the properties.

5.1.7 Delays in developing Acquired Plots in London, Maputo, Abuja, Abu Dhabi, etc

5.2 Recommendations 5.2.1 The Paymaster General is required to review the retention scheme for the purposes of

ensuring revenue collected is properly controlled and managed.

5.2.2 The Accounting Officer of the Ministry of Foreign Affairs and International Cooperation

should ensure that voted funds are timely released as budgeted to the

Embassies/Missions to meet their operation expenses.

5.2.3 The Ministry of Finance/ Accountant General should work out a contract between the

supplier of the Visa Sticker Machines and the Government of Tanzania for the purpose

of addressing all the anomalies as reported above.

5.2.4 The Permanent Secretary Ministry of Foreign Affairs and International Cooperation in

collaboration with the President’s Office, Public Service Management should expedite

the process of updating the Foreign Services Staff Regulations, 1979 Part I and II to

suite the current situation.

5.2.5 The Permanent Secretary Ministry of Foreign Affairs and International Cooperation is

required to communicate with the Ministry of Works to ensure that Title deeds for land

and buildings are acquired on time for complete ownership.

5.2.6 The Permanent Secretary Ministry of Foreign Affairs and International Cooperation is

advised to liase with his counterpart in the Ministry of works and the Tanzania Building

Agency and work out on an ownership and maintenance policy of the many

government building owned by our Embassies/Missions.

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6.0 Appendices

Appendix I

OVER/UNDER EXPENDITURE

S/N NAME OF THE

EMBASSY

APPROVED ESTIMATES (SUPPLY

VOTE) (SHS.)

ACTUAL EXCHEQUER

RECEIVED (SHS.)

NET EXPENDITURE (SHS.)

UNDER RELEASE/(OVER RELEASE)(SHS.)

OVER EXPENDITURE

(SHS.)

UNDER EXPENDITURE (SHS.)

A B C A-B C-B B-C

1 PARIS 2,554,802,235.56

1,631,405,718.78

2,447,450,640.31 923,396,516.78

816,044,921.53

2 PRETORIA 1,165,015,405.00

1,511,890,889.00

2,188,854,238.00

(346,875,484.00)

676,963,349.00

3 TOKYO 1,608,476,384.00

946,548,847.40

1,213,629,768.47 2,204,560,767.15

267,080,921.07

4 MUSCAT 678,801,840.00

672,118,712.00

859,998,941.00 6,683,128.00

187,880,229.00

5 LILONGWE 642,269,704.00

656,358,964.00

839,303,504.00 (14,089,260.00)

182,944,540.00

6 LUSAKA 809,463,900.00

586,612,712.00

764,506,979.00 222,851,188.00

177,894,267.00

7 ABU DHABI 1,472,629,332.00

1,722,931,742.00

1,845,511,549.00

(250,302,410.00)

122,579,807.00

8 MOMBASA 1,558,422,237.00

1,095,225,606.00

1,193,178,334.00 463,196,631.00

97,952,728.00

9 ADDIS ABABA

1,058,569,659.30

779,755,259.75

851,345,760.65 278,814,399.55

71,590,500.90

10 ABUJA 1,409,968,608.00

1,543,094,831.00

1,611,503,417.00

(133,126,223.00)

68,408,586.00

11 KIGALI 732,299,692.40

618,219,432.95

668,296,652.21 114,080,259.45

50,077,219.26

12 LONDON 3,050,812,252.00

2,941,273,807.00

2,983,062,276.00 109,538,445.00

41,788,469.00

13 KAMPALA 719,970,456.00

595,303,051.00

631,934,121.68 124,667,405.00

36,631,070.68

14 HARARE 900,760,414.20

651,509,659.35

683,939,302.25 249,250,754.85

32,429,642.90

15 BUJUMBURA

865,321,762.00

852,751,249.00

884,914,737.00 12,570,513.00

32,163,488.00

60

______________________________________________________________________________________________________________


16 CANADA 1,233,102,817.00

1,580,330,474.00

1,610,184,668.00

(347,227,657.00)

29,854,194.00

17 SAUD ARABIA

867,671,000.00

839,905,405.00

867,382,900.00 27,765,595.00

27,477,495.00

18 BERLIN 1,504,118,166.00

2,197,996,104.17

2,225,300,100.91

(693,877,938.17)

27,303,996.74

19 KINSHASA 802,580,949.00

775,863,298.00

799,687,421.00 26,717,651.00

23,824,123.00

20 ROME 1,886,294,858.00

1,771,073,144.00

1,790,038,008.00 115,221,714.00

18,964,864.00

21 BRAZIL 1,380,465,414.00

1,602,964,756.00

1,615,375,534.00

(222,499,342.00)

12,410,778.00

22 MOZAMBIQUE

805,349,280.00

619,644,027.00

631,111,613.00 185,705,253.00

11,467,586.00

23 CAIRO 619,578,404.00

643,537,495.00

640,025,689.00 (23,959,091.00)

3,511,806.00

24 SCTOCKHOLM

1,576,836,582.00

1,950,917,204.00

1,942,645,572.00 374,080,622.00

8,271,632.00

25 MOSCOW 1,536,782,377.00

1,624,128,570.00

1,612,550,590.00 75,768,213.00

11,577,980.00

26 WASHINGTON

1,800,875,952.00

2,820,034,746.00

2,796,591,040.00

(1,019,158,794.00)

23,443,706.00

27 GENEVA 1,903,669,190.00

2,068,037,969.61

2,040,114,285.03

(164,368,779.61)

27,923,684.58

28 NEW DELHI 1,605,657,466.00

1,368,992,618.00

1,323,415,492.00 236,664,848.00

45,577,126.00

29 BRUSSELS 1,777,447,254.70

1,860,580,079.90

1,779,390,988.48 (83,132,825.20)

81,189,091.42

30 KUALA LUMPUR

1,144,562,104.00

1,077,619,589.00

994,120,518.00 66,942,515.00

83,499,071.00

31 NEW YORK 3,386,532,782.00

3,624,854,428.00

3,497,224,839.00

(238,321,646.00)

127,629,589.00

32 BEIJING 1,291,142,573.00

966,322,637.00

723,198,917.00 1,625,545,364.00

243,123,720.00

TOTAL 44,350,251,050.16

44,197,803,025.91

46,555,788,395.99 3,907,082,332.80

3,013,732,776.08

655,747,406.00

61

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OVER/UNDER COLLECTION OF REVENUE Appendix II

S/N NAME OF THE

EMBASSY ESTIMATES ACTUAL COLLECTION OVER COLLECTION

(SHS.) UNDER

COLLECTION (SHS.)

A B B-A A-B

1 TOKYO 637,998,300.00 1,330,615,679.00 692,617,379.00

2 BEIJING 350,000,000.00 723,198,917.00 373,198,917.00

3 BERLIN 955,767,092.00 1,279,900,101.00 324,133,009.00

4 WASHINGTON 3,487,560,717.00 3,784,920,932.00 297,360,215.00

5 NEW YORK 549,600,000.00 823,763,586.00 274,163,586.00

6 GENEVA 328,000,000.00 544,027,071.49 216,027,071.49

7 SCTOCKHOLM 505,296,725.00 676,081,772.00 170,785,047.00

8 PRETORIA 707,500,000.00 868,187,545.00 160,687,545.00

9 MUSCAT 304,000,000.00 461,443,694.00 157,443,694.00

10 NEW DELHI 126,769,500.00 221,188,059.00 94,418,559.00

11 KAMPALA 100,000,000.00 188,309,948.63 88,309,948.63

12 ROME 500,000,000.00 578,924,453.00 78,924,453.00

13 ABU DHABI 208,100,000.00 264,386,615.00 56,286,615.00

14 NAIROBI 189,857,780.00 228,846,464.00 38,988,684.00

15 MOZAMBIQUE 7,000,000.00 33,827,549.00 26,827,549.00

16 CANADA 600,000,000.00 623,312,224.00 23,312,224.00

17 KIGALI 21,520,980.00 30,651,911.20 9,130,931.20

18 HARARE 21,240,000.00 30,154,681.20 8,914,681.20

19 KUALA LUMPUR 5,000,000.00 10,730,458.00 5,730,458.00

20 LILONGWE 10,000,000.00 14,353,049.00 4,353,049.00

21 BUJUMBURA 20,320,310.67 24,123,177.40 3,802,866.73

22 LUSAKA 78,203,000.00 80,139,176.00 1,936,176.00

23 BRAZIL - 1,202,148.00 1,202,148.00

24 LONDON 1,862,148,517.00 1,862,148,517.00 -

25 SAUD ARABIA 46,600,000.00 46,414,285.00

185,715.00

26 ABUJA 262,200,000.00 261,288,001.00

911,999.00

27 CAIRO 46,500,000.00 40,388,375.00

6,111,625.00

28 MOSCOW 102,000,000.00 83,591,537.00

18,408,463.00

29 KINSHASA 24,800,000.00 6,251,627.00

18,548,373.00

62

______________________________________________________________________________________________________________


30 BRUSSELS 480,100,000.00 400,709,096.70

79,390,903.30

31 PARIS 955,000,000.00 841,959,516.55

113,040,483.45

32 ADDIS ABABA 250,000,000.00 116,683,325.20

133,316,674.80

TOTAL 13,743,082,921.67 16,481,723,491.37 3,108,554,806.25

369,914,236.55

63

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APPENDIX III

PRIOR YEARS OUSTANDING MONETARY ISSUES

S/N EMBASSY/MISSION AMOUNT IN TSHS

1 BERLIN 3,481,465,623.44

2 SAUDI ARABIA 1,873,597,787.48

3 BRUSSELS 1,743,679,795.07

4 PARIS 1,146,789,322.67

5 WASHINGTON 1,014,811,853.83

6 LILONGWE 997,797,834.99

7 PRETORIA 953,826,379.00

8 ABUJA 788,182,055.00

9 BEIJING 645,347,107

10 MOSCOW 533,129,381.00

11 MUSCAT 447,854,943.20

12 GENEVA 366,287,956.33

13 TOKYO 330,281,854.85

14 SOCKHOLM 273,557,651.00

15 NEW YORK 272,310,259.65

16 KINSHASA 260,250,856.78

17 CAIRO 192,311,765.40

18 ABU DHABI 186,895,665.00

19 LONDON 164,864,523.04

20 KAMPALA 97,265,386.78

21 BUJUMBURA 92,829,969.90

22 SAUDI ARABIA 83,393,065.00

23 ADDIS ABABA 18,416,364.85

24 CANADA 16,858,568.06

25 KIGALI 14,240,615.88

26 LUSAKA 3,080,989.34

TOTAL 15,999,327,574.54

64

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Appendix IV

OUTSTANDING LIABILITIES

S/N NAME OF THE EMBASSY AMOUNT (TSHS)

1 ABU DHABI 31,429,418.00

2 BEIJING 671,142,630.51

3 BERLIN 193,567,049.49

4 BRUSSELS 238,230,997.99

5 BUJUMBURA 78,887,773.00

6 CANADA 685,694,885.00

7 GENEVA 795,089,512.57

8 KAMPALA 30,437,582.49

9 KIGALI 54,938,897.76

10 KUALA LUMPUR 206,889,910.00

11 LUSAKA 37,998,206.00

12 MOSCOW 441,225,697.00

13 MAPUTO 127,614,132.00

14 NEW DELH 111,594,736.00

15 NEW YORK 73,127,708.00

16 PARIS 167,001,190.08

17 ROME 816,168,360.64

18 SAUDI ARABIA 86,163,000.00

19 STOCKHOLM 489,446,560.00

TOTAL OUSTANDING 5,336,648,246.53