Project charter - MINECOFINminecofin.gov.rw/.../PAU_Files/...for_2019_2020_for_Proje… · Web viewThe presentation and classification of items in the financial statements are consistent

XXX Project (Insert name of Project)Monthly/Annual Report and Financial Statements

For The Period Ended dd mm yyyy

Issued in (Current month/Quarter)

Government of Rwanda(Insert correct name of your Project) Financial statements for the year ended 30 June 2020

Table of Contents

1. Project charter.............................................................................................................................................3

2. Statement of responsibilities.......................................................................................................................7

3. Statement of revenue and expenditure for the period ended 30 June 2020.............................................8

4. Statement of financial assets and liabilities as at 30 June 2020..............................................................10

5. Statement of Cash Flows for the period ended 30 June 2020.................................................................12

6. Statement of changes in net assets for the period ended 30 June 2020..................................................14

7. Statement of comparison of budget and actual amounts........................................................................15

8. Notes to the financial statements..............................................................................................................17

Appendix 1: Progress on follow up of Audit Recommendations....................................................................60

Appendix 2: Compliance checklist for Budget Agencies................................................................................61

Appendix 3: Detailed Trial Balance as at dd mm 2020...................................................................................62

Appendix 4: Bank reconciliation statements as at 30 June 2020. (For all bank accounts)...........................63

Appendix 5: Bank statements to accompany the bank reconciliation statements. (For all bank accounts)64

Appendix 6: Petty cash certificate....................................................................................................................65

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1. Project charter

1.1 Statement of Purpose

The purpose of this section is to formally recognize the authorization of XYZ Project <insert correct name of project>.

This section of the report contains (a) general information about the project, (b) a project overview, (c) the project objectives, (d) a list of the people involved in the project, (d) a list of project constraints, (e) any assumptions made, (f) the preliminary schedule and budget estimates, (g) the plan modification rules, and (h) an approval signature section

1.2 Project Information

Project Start Date: The project approval date is DD MM YYYY

The project signature of agreement date is DD MM YYYY

The project effectiveness date is DD MM YYYY

Project End Date: The project completion date is DD MM YYYY

The project completion extended to DD MM YYYY (if any)

The project last disbursement date is DD MM YYYY

The project last disbursement extended to DD MM YYYY (if any)

Project Manager: The project manager is Mrs/Mr (Insert name : xxxxxx

Project Budget by donor

List donor(s) name, amount and currency

1. World Bank: xxxxx Million (SDR)

2. GoR counterpart amount xxxxx Million (SDR)

Total cost of the project

XXXXX Million (SDR)

Implementing Budget Agency

Implementing Budget Agency is: XXXXX

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1.3 Project Overview

Line Ministry of the project Example: MINEDUC

Strategic goals/objectives of the project

Example: The development objective of the Skills Development Project for Rwanda is to improve access to quality and demand-responsive vocational training).

General achievement of strategic goals /main component of the projects

Example1. (Delivery of Quality and Relevant Vocational

Training (8 occupations in 7 Vocational Training Centres))

2. (TVET System Strengthening)3. (Skills Development Fund(SDF))

Specific achievement of strategic goals/outputs of the projects

Example:1. (Employer satisfaction with VTC graduates)2. (Employed persons trained through SDF sub-

grants who improved job performance)3. (VTC graduates are employed or self-employed

within six months after graduation)4. (A system in place to monitor and evaluate TVET

performance available)5. (Adequately skilled trainers in place)

Current situation that the project was formed to intervene

Example :Improve access to quality and demand-responsive vocational training and learn new skills for a current or a future job, to increase earnings, to improve carrier opportunities in a current or another field

Other important background information of the project

Example: One of the five general objectives of this project is to improve work productivity by delivering a better synergy between education and employment

1.4 Assumptions

The following assumptions have been made during the planning process for the project:

(i) Xxxx

(ii) Xxxx

1.5 Registered office

The project is domiciled in Kigali, Rwanda. The address of its registered office is:

Xxx (Insert address of your project as appropriate)

1.6 Bankers

The following are the bankers for the current year:

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(i) ....

(ii) .....

1.7 Auditors

The project is to be audited by ………………….

1.8 Roles and Responsibilities

List the different people who will be working on <project name>. This list would include the project manager and all the key stakeholders who will be involved with <project name>. Also, record their role, their positions, and their contact information.

Name Role Position Contact Information

Chief Budget Manager

Permanent Secretary

Email:

Phone:

Project Coordination

Project Manager

Email:

Phone:Finance management

Director of Finance

Email:

Phone:Accounting Accountant Email:

Phone:<Add rows as necessary>

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1.9 Funding Summary

The Project is for duration of xxx years from 20xx to 20xx with an approved budget of US$ xxxx (use donor currency) as highlighted in the table below:

Source of funds

Donor Commitment-

Cumulative Amount received to date – (Month to June 2020)

Cumulative Amount received to date – (Month to June 2020)

Undrawn balance to date (Month to June 2020)

Undrawn balance to date (Month to June 2020)

(in respective currency)

(in respective currency)

(in Frw) (in respective currency)

(in Frw)

(A) (B) (A)-(B)(i) Grant

(ii) Loan

(iii) Other (FI, CP,)

GORTotal

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2. Statement of responsibilities

Article 66 of the Organic Law N° 12/2013/OL of 12/09/2013 on State Finances and Property requires public entities to submit annual Financial Statements to the ministry of Finance and Economic planning with 2 months following the end of the fiscal year.

Article 19 of the Organic Law N° 12/2013 further stipulates that the Chief Budget Manager is responsible for maintaining accounts and records of the public entity, preparing reports on budget execution, managing the financial resources for the public entity effectively, efficiently and transparently, ensuring sound internal control systems in the public entity and safeguarding the public property held by the public entity.

As Chief Budget Manager accepts responsibility for the financial statements, which have been prepared using appropriate accounting standards applicable to Public Entities as defined by Article 99 of the Ministerial Order N°001/16/10/TC of 26/01/2016 relating to financial regulations.

These financial statements have been extracted from the accounting records of XYZ Project (Insert correct name of your project) and the information provided is accurate and complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwanda.

In my opinion, the financial statements give a true and fair view of the state of the financial affairs of XYZ Project (Insert correct name of your Project). I further confirm that XYZ Project (Insert correct name of your Project) maintained proper accounting records that may be relied upon in the preparation of financial statements. I also confirm that adequate systems of internal control were maintained and operated effectively during the financial year to safeguard the assets of the project.

Nothing has come to the attention of Management to indicate that XYZ Project (Insert correct name of your Project) will not continue operating as a going concern for the foreseeable future.

Signature: ______________________________________________

Name: _________________________________________________ [Chief Budget Manager]

Date: ________________________________________________

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3. Statement of revenue and expenditure for the period ended 30 June 2020

Note FY 2019/2020 FY 2018/2019

Period ended Month XXXX

Period ended June 2019

Frw FrwRevenues

Revenue from non-exchange transactions

Tax Revenue 1 X X Grants 2Transfers from central Treasury 3 X X Transfers from public entities 4 X X Fines, Penalties and Licenses 5 X X

Revenue from exchange transactions Property income 6 X X Sales of goods and services 7 X X Proceeds from sale of capital items 8 X XOther revenue 9Borrowings Domestic borrowings 10.A X X External borrowings 10.B X X Total Revenue X X Expenses Compensation of Employees 11 (X) (X) Goods and Services 12 (X) (X) Grants and Other transfers 13 (X) (X) Subsidies 14 (X) (X) Social Assistance 15 (X) (X) Finance costs 16 (X) (X) Acquisition of fixed assets 17 (X) (X) Repayment of borrowings 18 (X) (X) Other expenses 19 (X) (X) Total Expenses (X) (X) Surplus / (Deficit) for the period XX/(XX) XX/(XX

These financial statements should be read in conjunction with the accompanying notes (including accounting policies).

Prepared by:

Insert the name of Accountant/Chief Accountant

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Signature DateReviewed by:

Insert the name of Head of Finance

Signature DateChecked by:

Insert the name of Head of Corporate Services

Signature Date

Approved by:

Insert the name of Chief Budget Manager

Signature Date

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4. Statement of financial assets and liabilities as at 30 June 2020

Note FY 2019/2020 FY 2018/2019



Frw FrwASSETS

Current assets Cash and cash equivalents 20 X X Receivables from exchange transactions 21 X X Advance payments 22 X X Total current assets XX XX

Non-current assets Direct investments 23 X X Total Noncurrent assets X X

Total assets (A) XXX XXXX

LIABILITIES Current liabilities Payables 24 X X Payments received in advance 25 X X Retained Performance Securities 26Total current liabilities X X

Non-current liabilities Direct borrowings 27 X X Total Non-current liabilities X X

Total liabilities (B)

Net assets C = A-B XXX XXX

Accumulated surplus/(deficits) 28 X/(X) X/(X) Prior year adjustments 29 X/(X) X/(X) Surplus/deficits of the period X/(X) X/(X) Total Net Assets X/(X) X/(X)

These financial statements should be read in conjunction with the accompanying notes (including accounting policies).

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Prepared by:

Insert the name of Accountant/Chief Accountant

Signature DateReviewed by:


Signature DateChecked by:

Insert the name of Head of Corporate Services

Signature Date

Approved by:


Signature Date

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5. Statement of Cash Flows for the period ended 30 June 2020

Note FY 2019/2020 FY 2018/2019



Frw FrwCash flow from operating activities Revenues Revenue from non-exchange transactions Tax Revenue 1 X X Grants 2 X X Transfers from central Treasury 3 X X Transfers from public entities 4Fines, Penalties and Licenses 5 X X Revenue from exchange transactions Property income 6 X X Sales of goods and services 7 X X Other revenue 9 X XExpensesCompensation of Employees 11 (X) (X) Goods and Services 12 (X) (X) Grants and Transfers 13 (X) (X) Subsidies 14 (X) (X) Social Assistance 15 (X) (X) Finance costs 16 (X) (X) Other expenses 19 (X) (X) Adjusted for: Changes in receivables 30 X/(X) X/(X)Changes in payables 30 X/(X) X/(X)Prior year adjustments 29 X/(X) X/(X)Net cash flows from operating activities A X/(X) X/(X)Cash flows from Investing Activities Acquisition of fixed assets 17 (X) (X)Proceeds from sale of capital items 8 X XPurchase of shares (X) (X)Net cash flows from Investing Activities B X/(X) X/(X)Cash flow from Financing Activities Proceeds from borrowings 10 (X) (X)Repayment of borrowings 18 X XNet cash flow from financing activities C X/(X) X/(X)Net increase/(decrease) in cash and cash equivalents A+B+C X/(X) X/(X)

Cash and cash equivalents at beginning of period

20 X X

Cash and cash equivalents at end of period

20 XX XX

Control

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Prepared by:

Insert the name of Accountant/Chief Accountants

Signature Date

Reviewed by:


Signature Date

Checked by:

Insert the Head of Corporate Services

Signature Date

Approved by:


Signature Date

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Government of Rwanda(Insert correct name of your Public entity) Financial statements for the year ended 30 June 2020

6. Statement of changes in net assets for the period ended 30 June 2020

Accumulated surplus/loss

Adjustments Total

Frw Frw FrwBalances as at 30th June 2018 X/(X) X/(X) X/(X) Prior year adjustments:Cash and cash equivalent X/(X) X/(X) Receivables and other financial assets X/(X) X/(X) Investments X/(X) X/(X) Payables and other liabilities X/(X) X/(X) Borrowing X/(X) X/(X) Net Surplus/(Deficit) for the financial year X/(X) X/(X) Balance as at 30th June 2019 X/(X) X/(X) X/(X) Balances as at 30th June 2019 X/(X) X/(X) X/(X) Prior year adjustments:Cash and cash equivalent X/(X) X/(X) Receivables and other financial assets X/(X) X/(X) Investments X/(X) X/(X) Payables and other liabilities X/(X) X/(X) Borrowing X/(X) X/(X) Net Surplus/(Deficit) for the financial year X/(X) X/(X) Balances as at 30th June 2020 X/(X) X/(X) X/(X)

Authorization Date

The financial statements were approved by the management of the insert project name on ……DDMMMYYYY signed on its behalf by:

Prepared by:

Insert the name of Budget Officer/Accountant

Signature Date

Reviewed by:


Signature Date

Checked by:

Insert the name of Corporate Services Division Manager

Signature Date

Approved by:


Signature Date

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7. Statement of comparison of budget and actual amounts

Notes Original budget

Revised budget Actual Variances Performa

nce 2020 2020 2020 2020 % Frw Frw Frw Frw N/A A B A-B (B/A)*100RECEIPTS Tax Revenue X X X X %Grants and transfers X X X X %Other Revenues X X X X %Total receipts 31 X X X X % EXPENDITURE Compensation Of Employees (X) (X) (X) (X) %

Goods And Services (X) (X) (X) (X) %Finance cost (X) (X) (X) (X) %Subsidies (X) (X) (X) (X) %Grants and other transfers (X) (X) (X) (X) %

Social assistance (X) (X) (X) (X) %Other Expenses (X) (X) (X) (X) %Total payments 32 (X) (X) (X) (X) % Operating balance (X) (X) (X) (X) %

Transactions in non-financial assetsCapital expenditure (X) (X) (X) (X) %Disposal of tangible fixed assets (X) (X) (X) (X) %

Total non-financial assets

33 (X) (X) (X) (X) %

Net lending/(borrowing)

FinancingReserves X X X X %Borrowings- Domestic X X X X %Borrowings- External X X X X %Repayment of borrowings (X) (X) (X) (X) %

Total net incurrence of liabilities

34 X X X X %

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Explanation on variances

Explain the major variances observed above:

(i) Xxxx Insert explanations for variances

(ii) Xxxx Insert explanations for variances

(iii) Xxxx Insert explanations for variances

(iv) Xxxx Insert explanations for variances

(v) Xxxx Insert explanations for variances

Authorization Date

The financial statements were approved by the management of the insert project name on ……DDMMMYYYY signed on its behalf by:

Prepared by:


Signature Date

Reviewed by:


Signature Date

Checked by:


Signature Date

Approved by:


Signature Date

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8. Notes to the financial statements

8.1. Significant accounting policies

Public entities maintain their books of account on a modified accrual basis of accounting as prescribed in basis for preparation.

8.1.1. Statement of compliance

The financial statements have been prepared in accordance with the Organic Law nº 12/2013 of 12/09/2013 on State Finances and Property and related legal framework. These financial statements have been authorized for issue by The Chief Budget Manager on XX month 2020The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period. The presentation and classification of items in the financial statements are consistent from one period to the next and takes into consideration progressivve improvements as contained in the Government of Rwanda roadmap to migrate to accrual IPSAS.

8.1.2. Basis of preparation

The financial statements have been prepared on the basis of historical costs unless otherwise stated. The cash flow statement is prepared using the direct method.

The specific accounting basis for major items in the financial statements are provided below. Except for the subsidiary entities affiliated to the decentralised entities, public entities shall maintain their books of account on a modified accrual basis of accounting. The subsidiary entities affiliated to the decentralised entities shall maintain their books of account on a modified cash basis of accounting and progressively move to the same accounting basis as that of the rest of the public entities.

In this context modified accrual basis of accounting means that financial transactions and events shall generally be recognized in the books of account when they occur and not only when cash or its equivalent is received or paid, except in the following circumstances when transactions will be treated on a cash basis;

(i) Public debt (principal and interest) – involving Treasury bills, treasury bonds, corporate bonds, sovereign bonds and external loans acquired by the Ministry or any other debt the State may take on will be treated on cash basis and recognized as revenue during the year of receipt and as expenditure in the year of repayment. However, loans acquired directly by a public entity and any associated interest shall be treated on an accrual basis and recognized as liabilities.

(ii) Inventories – these are assets:

a. in the form of materials and supplies to be consumed in the production process,b. in the form of materials to be consumed in the rendering of services,c. held for sale or distribution in the ordinary course of operations,

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d. in the process of production for sale or distribution.

Inventories include assets such as consumable stores, maintenance materials, ammunition, land and other properties held for sale, strategic stock piles e.g. fuel reserves. These will be treated on cash basis and recorded as expenditure during the year of acquisition and treated as revenue in the year of disposal.

(iii) Non-exchange transactions: - These arise where an entity receives value from another entity without giving approximately equal value in exchange. These include taxes, fines and penalties, transfers, gifts and donations and shall be recognised when cash is received.

(iv) Non-current assets (tangible and intangible assets): - such as vehicles, furniture, equipment, finance leases, Plant and tools and investment property will be treated on cash basis and recorded as capital expenditure during the year of acquisition and revenue in the year of disposal.

(v) Investments excluding those directly made by public entities: - shareholding in public corporations, investments in associates, equity interest in joint ventures, lending and on-lending by government entities will be treated on cash basis and recorded as capital expenditure during the year of acquisition and revenue in the year of disposal.

(vi) Student loans: - Student loans shall be treated on a cash basis at the time of disbursements and recognized as expenses. Similarly, they will be recognised as revenue when loan repayments are received from the students.

The financial statements are presented in Rwanda Francs (Frw), being the currency of legal tender in Rwanda which is the functional and reporting currency of the Government of Rwanda.

8.1.3. Reporting project

The Financial Statements have been prepared by (Insert the name of the project) pursuant to Articles 19 and 66 of the Organic Law on State Finances and Property No 12/2013 of 12/09/2013 that empowers the Chief Budget Manager to prepare the financial statements.

8.1.4. Reporting periods

The Government of Rwanda Fiscal Year runs from 1st July to 30th June. These financial statements cover the period from 1st July 2019 to 30th June 2020. The comparative figures reflect the 12 months ended 30th June 2019.

8.1.5. Key assumptions and judgements

These financial statements, as a component of the Government consolidated financial statements, reflect the Government’s financial position as at 30 June 2020, and the financial results of operations and cash flows for the year ended on that date. Included in these financial statements are a number of judgements, estimations and assumptions.

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The assumptions are based on information available at the time of the preparation of the financial statements. It should therefore be noted that actual results may differ from the assumptions stated and thus have a material impact on the financial statements. The key assumptions are discussed below:

8.1.6. Presentation Currency

The functional currency of the Government of Rwanda is the Rwandan Franc. For reporting purposes, the financial statements are translated into Rwandan Francs.

The rates used to translate foreign currency balances is the average rate applicable by National Bank of Rwanda as at 30 June 2020.

8.1.7. Areas of significant estimation

These financial statements do not have significant estimates so far. For the non-current asset and inventory balances disclosures, the acquisition cost before depreciation has been used.

8.1.8. Adoption of new and revised standards

The government is in the process of transitioning to IPSAS through a phased approach that involves a six-year implementation plan. The current year is year 2 of the transition process. By the end of the six-year implementation period, the government plans to have fully transitioned to IPSAS and adopted all relevant standards.

8.1.9. Recognition

I. Revenue recognition

a) Revenue from non-exchange transactions

Tax revenue

Tax revenues are recognized in the books of accounts when cash is received. Cash is considered as received when notification of tax remittance is received.Rwanda Revenue Authority is the principal revenue collector of Government revenue mainly in form of taxes. Local governments have also been allowed to collect certain forms of taxes within their area of jurisdiction, with the RRA also entrusted to collect some of the tax revenue on their behalf.

Tax on revenue is further sub-categorized as follows:a) Taxes on Income, Profits or Capital Gains;b) Taxes on Property Income;c) Taxes on goods and services; and

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d) Taxes on international trade and transactions.

Grants

Grants are transfers received by government units, from other resident or non-resident government units or international organizations that do not meet the definition of a tax, subsidy, or social contribution. This include current and capital transfers received from foreign Governments, international organizations and from other general government units. Transfers from other general Government units includes Transfers from National Treasury, Inter-entity and intra-entity transfers. Inter-entity transfers refer to transfers between cost or revenue centres belong to different public entities while intra-entity refers to transfers between cost or revue centres within the same public entity.

A transfer is a transaction in which one institutional unit provides a good, service, or asset to another unit without receiving from the latter any good, service, or asset in return as a direct counterpart. Grants are normally receivable in cash, but may also take the form of the receipt of goods or services (in kind). Grants receivable are classified first by the type of unit providing the grant and then by whether the grant is current or capital.

A grant may be a sum of money or services given by a government body for specific purposes. Usually the money given can only be used for the intended purposes stated in the grant writing or application.

These transfers could be classified according to the sector of the counterparty and whether they are current or capital transfers.

The grants and transfers shall be sub-categorized as follows:a) Grants received from Foreign Governments;b) Grants received from International Organizations; andc) Grants received from other general Government units which includes Treasury

Transfers, Inter-entity and intra-entity transfers.

Grants and similar financing for capital items, to the extent that they have not been eliminated on consolidation, are recognised immediately in the Statement of financial assets and liabilities unless it is likely that the grant will need to be repaid, in which case the grant is deferred in the Statement of financial assets and liabilities

The following applies to grants and transfers: Grants are recognized in the books of accounts when cash is received and in case of

grant in kind, such grants are recorded upon receipt of the grant item and upon determination of the value.

Transfer from Treasury are recognized in the books of accounts when cash is received.

Transfers received from Government entity for onward payment to a third party are not treated as an inter-entity (revenue) rather, such transfers shall be recorded as transit fund (liability) in the books of the receiving entity.

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Transfers from Treasury that are not related to current fiscal year budget are not treated as cash transfers. Instead such transfers shall be treated as inter-entity transfers.

Transfers from entities to Treasury which does not relate to the current fiscal year budget are treated by Treasury as inter-entity transfers.

Funds returned to Treasury at the end of the fiscal year as a result of zero balance accounts sweeping are not recognized as inter-entity transfers. Instead, those funds will reduce the cash transfer account balance for the same year. Where such transfers are received by Treasury in the subsequent fiscal year (such as embassies and foreign missions) such transfers is recognized as inter-entity transfers.

Fines, penalties and licenses

These are non-tax revenue collected by Rwanda Revenue Authority and other GovernmentAgencies. They are recognised when cash underlying the fee, fine, penalty or licence is received.

b) Revenue from exchange transactions

Property income

Property income is the revenue receivable in return for putting financial assets and natural resources at the disposal of another unit. Revenue in this category may take the form of interest, distributed income of corporations, investment income, and rent. Distributed income of corporations includes dividends, withdrawals of income from quasi-corporations, and reinvested earnings on foreign direct investment. Investment income includes property income from investment income disbursements, and holders of investment fund shares.

Sales of goods and services

Sales of goods and services consist of the sales by market establishments, administrative fees charged for services, incidental sales by nonmarket establishments, and imputed sales of goods and services. Sales of goods and services are recorded as revenue without deduction of the expenses incurred in generating that revenue.

An entity may receive revenue from sale of government property.1) Disposal of tangible fixed assets;2) Sale of inventories;3) Sale of valuables;4) Sale of non-produced assets;5) Sale of financial assets – domestic (including repayments of advances and loans issued

by government considering that the advances or loans are expensed when issued); and6) Sale of financial assets – foreign.

Proceeds from sale of capital items

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This refers to the fees collected from the sale of Disposal of Tangible Fixed Assets Sale of Inventories Sale of Valuables, Sale of Non-Produced Assets, Disposal of Financial Assets – Domestic, Disposal of Financial Assets – Foreign. Proceeds from sale of capital items are recorded as revenue without deduction of the expenses incurred in generating that revenue.

Other revenueThese are other revenue not classified in other classes of revenue. This include claims from insurance and guarantees seized.

Revenue from exchange transactions shall be recognized on accrual basis.

c) Borrowings

The Ministry of Finance and Economic Planning is the principal borrowing agent for CentralGovernment. Public debt and associated interest is recognized on cash basis. Proceed from loan borrowing is recognized as revenue during the year of receipt at cost and repayment as expenditure in the year of repayment. Cash is considered as received when recipient entity received a transfer advice from the partner rather than when cash is received in the bank account of the receiving entity.

Other loans (principal and any associated interest) acquired directly by a public entity (e.g. those acquired by Decentralized Entities) are treated on an accrual basis and recognized as liabilities.

II. Expenditure

All expenditure is recognised on accrual basis however the point of recognition may be different according to their categories.

a) Compensation of employees

Compensation of employees is the total remuneration, in cash or in kind, payable to an individual in an employer-employee relationship in return for work performed by the latter during the reporting period.

Expenditure relating to compensation of employees is accounted for on an accrual basis and recognized in the books of accounts when an expenditure is incurred regardless of the time associated cash and cash equivalent are paid out.Staff costs include salaries and wages, the costs of pensions and other employee benefits. Public sector pension scheme costs include current service costs and past service costs.

b) Goods and services

Goods and services consists of the value of goods and services used for the production of market and nonmarket goods and services.

The value of goods or services is recorded when the goods or services are actually used rather than when they were acquired or paid for. In practice, these events often coincide for inputs

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of services but not for goods, which may be acquired some time in advance of their use. The value of goods purchased and held for resale is recorded as goods and services when they are sold.

c) Grants

Expenditure relating to grants includes grants to international organisation and foreign governments, grants to subsidiaries etc. Grants are accounted for on cash basis and recognized in the books of accounts when cash and cash equivalent is paid out. Cash is considered as paid when consideration for payment such as EFT, Cheque, Payment Order are signed rather than when cash and cash equivalent are debited from the bank statement.

d) Subsidies

Subsidies are current unrequited transfers that government units make to enterprises on the basis of the level of their production activities or the quantities or values of the goods or services they produce, sell, export, or import. Subsidies are receivable by resident producers or importers, and in exceptional cases, non-resident producers of goods and services. Subsidies may be designed to influence levels of production, the prices at which outputs are sold, or the profits of the enterprises. Subsidies include payable tax credits receivable by enterprises for these purposes. By the nature of subsidies, only government units incur an expense in this form.

e) Transfers to public Entities

Transfers to public entities are made in the form of direct/indirect cash transfers and direct payments to public reporting entities. Payments from the Central Treasury account are originated and approved by the respective Public entities before they are forwarded to the Treasury for payment. Direct/indirect cash transfers are transferred together with associated activities to be performed. The expenditure/receipt is recognised when actual cash is transferred. Cash is considered as transferred when consideration for payment such as EFT, Cheque, Payment Orders are approved level 2 rather than when cash and cash equivalent are debited from the bank statement. For direct payments expenditure is recognized when goods/services are received and when commitment is approved for all other expenditures. During the consolidation process while the actual spending reported by budget agencies is regarded as expenditures.

f) Social assistance

Social benefits are current transfers receivable by households intended to provide for the needs that arise from social risks—for example, sickness, unemployment, retirement, housing, education, or family circumstances. These benefits are payable in cash or in kind to protect the entire population or specific segments of it against certain social risks.

Social assistance is accounted for on cash basis and recognized in the books of accounts when cash and cash equivalent is paid out. Cash is considered as paid when consideration for payment such as EFT, Cheque, Payment Order are signed rather than when cash and cash equivalent are debited from the bank statement.

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g) Finance cost

Finance cost includes bank interest paid on borrowings which is accounted for on cash basis and recognized in the books of accounts when cash and cash equivalent is paid out. Cash is considered as paid when consideration for payment such as EFT, Cheque, Payment Order are signed rather than when cash and cash equivalent are debited from the bank statement.

h) Acquisition of fixed assets

The expenditure on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as expenditure and income items respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as revenue and as Acquisition of Fixed Assets otherwise it not recorded rather a fixed asset register which contains details of assets is maintained by each public entity.

i) Repayment of borrowings

Expenditure relating to principal loan repayments, investments, lending and on-lending, are accounted for on cash basis and recognized in the books of accounts when cash and cash equivalent is paid out. Cash is considered as paid when consideration for payment such as EFT, Cheque, Payment Order are signed rather than when cash and cash equivalent are debited from the bank statement.

j) Other expenses

Any other expenses not part of the ones above will fall into this category and shall be for on cash basis of accounting and recognised in books of accounts when cash and cash equivalent is paid.

III. Assets and Liabilities

a) Cash and cash equivalents

Cash comprises cash on hand, demand deposits and cash equivalents. Demand deposits and cash equivalents comprise balances with banks and investments in short-term money market instruments which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the National Bank of Rwanda, foreign bank for the case of embassies and high commissions and at various commercial banks at the end of the reporting period.

b) Inventories

Inventories are expensed in the period in which they are acquired by the Government and its entities.

c) Receivables

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These receivables include the receivables from the exchange transactions, prepayments and other receivables. Receivables from non-exchange transactions and these relating to on lending transactions are recorded when cash and cash equivalent is received.

d) Payables

These mainly relate to invoices for goods and services which were outstanding on the date of the closure of the fiscal year. These are recognized as liabilities for that specific fiscal year. All goods received notes are recognised as liabilities if not yet paid as at the end of the period.It also includes short term borrowings received by budget agencies from Local Commercial Banks as these are not regarded as public debt.

IV. Other relevant information

a) Changes in accounting policies and estimates

When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impracticable to do so.

b) Foreign currency transactions

Transactions denominated in foreign currencies are initially translated to the Rwandan Franc at the foreign exchange rate at the date of transaction.

The National Bank of Rwanda provides exchange rates for major foreign currencies on a daily basis. These are presented for selling rate (rate the bank will sell foreign currency to its clients), buying rate (rate the bank will buy foreign currency from its clients) and average rate (average between the selling and buying rate).

During the year, revenue items are translated using the selling rate (this equals the Buying rate presented at BNR website) of the transaction day whereas the Expense items should be translated using the buying rate (this equals the Selling rate presented at BNR website) of the transaction day.

The associated exchange losses are recorded as other expenditure while exchange gains should be recorded as other revenue. At the end of the year, book balances, Assets (such as bank and cash and accounts receivables) and liability (such as accounts payables), denominated in foreign currencies are converted into the Rwanda Franc at the average rate of exchange ruling on that closing date, as issued by the National Bank of Rwanda. The associated exchange losses/gains are recorded as expenditure/income in the books.

c) Comparative figures

Adjustments have been made on the opening balances of the current financial period with respect to adjustments made by individual entities relating to the comparative periods.

Page 25 of 70


d) Subsequent events

There have been no events subsequent to the financial year end with a significant impact on the financial statements for the year ended June 30, 2020.

e) Related parties

The Government regards a related party as a person or an entity with the ability to exert control individually or jointly, or to exercise significant influence over it, or vice versa. Members of key management are regarded as related parties and comprise the councillors, the executive committee members, the city manager, deputy city manager and senior managers.

f) Contingencies

The Project does not recognize a contingent liability, but discloses details of any contingencies in the notes to the financial statements, unless the possibility of an outflow of resources embodying economic benefits or service potential is remote. Project has no contingent assets.

g) Notes to the statement of comparison of budget and actual amounts

The original budget for 2019/2020 was approved by the Parliament/ District council for Local Government on (date). Subsequent revisions or additional appropriations were made to the approved budget in accordance with specific approvals from the appropriate authorities. The additional appropriations are added to the original budget by the Government upon receiving the respective approvals in order to conclude the final budget. Accordingly, the Government recorded additional appropriations of (date) budget in accordance with specific instructions of the Cabinet/Parliament.

Government’s budget is prepared on a different basis to the actual income and expenditure disclosed in the financial statements. The financial statements are prepared on accrual basis using a classification based on the nature of expenses in the Statement of revenues and expenditures, whereas the budget is prepared on a cash basis. The amounts in the financial statements were recast from the accrual basis to the cash basis and reclassified by presentation to be on the same basis as the approved budget. A comparison of budget and actual amounts, prepared on a comparable basis to the approved budget, is then presented in the statement of comparison of budget and actual amounts.

In addition to the Basis difference, adjustments to amounts in the financial statements are also made for differences in the formats and classification schemes adopted for the presentation of the financial statements and the approved budget.

Timing differences occur when the budget period differs from the reporting period reflected in the financial statements. There are no timing differences for Government.

Project differences occur when the budget omits program/activity or a project that is part of the project for which the financial statements are prepared.

Page 26 of 70


Page 27 of 70


8.2. Explanatory notes

8.2.1. Tax Revenue

This refers to tax revenue collected mainly by Rwanda Revenue Authority and other Government agencies.

ID account

Description FY 2019/2020 FY 2018/2019Period ended Month XXXX


Frw Frw111 Taxes on Income, Profits or Capital Gains X X112 Taxes on Payroll and Workforce X X113 Tax on Property Income X X114 Taxes on goods and services X X

115 Taxes on international trade and transactions X X

Total X X

8.2.2. Grants

A. Grants from Foreign Governments

ID account

Name of Donor Date received

Amount in foreign currency

Exchange rate

Amount LCY in Current FY

Amount in LCY Previous FY

Frw Frw

137 Foreign Governments

(Insert name of donor) X X X X


Debt forgiveness Subtotal X X X X

B. Grants from International organisations

ID account



Exchange rate



Frw Frw

138 International Organizations


Page 28 of 70


ID account



Exchange rate



Frw Frw


Debt forgiveness Subtotal X X X X

C. Donations and gifts

ID account



Exchange rate



Frw Frw144205 Gifts of land

(Insert name of donor)

144206 Gifts of buildings(Insert name of donor)

144207 Gifts of machinery(Insert name of donor)

144208 Gifts of intangible assets(Insert name of donor)

144209 Gifts for other Tangible Assets(Insert name of donor)

TOTAL

8.2.3. Transfers from Central treasury

During the period ended DD/MM/YYYY, we received transfers from Central Treasury as detailed below:

Page 29 of 70


ID account

Description

FY 2019/2020 FY 2018/2019



Frw Frw139101 Treasury Direct Payments X X139102 Treasury Direct Cash Transfers X X139103 Treasury Indirect Cash Transfers X X139201 Treasury Direct Payments-Capital139202 Treasury Direct Cash Transfers-Capital139203 Treasury Indirect Cash Transfers-

Capital Total X X

8.2.4. Transfers from public entities

8.2.4.1. Transfers from reporting public entities

During the period ended DD/MM/YYYY, we received transfers from government reporting agencies as detailed below:

ID Account

Description FY 2019/2020 FY 2018/2019Period ended

Month XXXXPeriod ended

June 2019Frw Frw

8.2.4.1.1.Enter Entity Transfers 139104 Transfers from Central Government (insert name of public entity) (insert name of public entity) 139105 Transfers from Districts

(insert name of public entity)(insert name of public entity)

139106 Below Line Transfer from Central Treasury(insert name of public entity)(insert name of public entity)

139107 Transfers from Subsidiary Entities-Current (insert name of public entity) (insert name of public entity)139108 Revenue Remittance from RRA139204 Transfers From Central Government

Institutions -Capital(insert name of public entity)(insert name of public entity)

139205 Transfers From Districts -Capital

Page 30 of 70


ID Account



June 2019Frw Frw

(insert name of public entity)(insert name of public entity)

139206 Transfers from Independent development projects

(insert name of public entity) (insert name of public entity)139207 Below Line Transfers From Treasury -

Capital(insert name of public entity)

Subtotal8.2.4.1.2.Intra Entity Transfers 139109 Intra Transfers From Central Government -

Current(insert name of transferring entity)(insert name of transferring entity)

139110 Intra Transfers From Districts -Current(insert name of transferring entity)(insert name of transferring entity)

139111 Intra Transfers From Government Developments Projects Current(insert name of transferring entity)(insert name of transferring entity)

139112 Intra Transfers From Subsidiaries Entities -Current(insert name of transferring entity)(insert name of transferring entity)

139208 Intra Transfers From Central Government -Capital(insert name of transferring entity)(insert name of transferring entity)

139209 Intra Transfers From Districts -Capital(insert name of transferring entity)(insert name of transferring entity)

139210 Intra Transfers From Government Developments Projects Capital(insert name of transferring entity)(insert name of transferring entity)

139211 Intra Transfers From Subsidiaries Entities -Capital(insert name of transferring entity)(insert name of transferring entity)

Subtotal

Page 31 of 70


ID Account



June 2019Frw Frw

Total

8.2.4.2.Transfers from subsidiary units

During the period ended DD/MM/YYYY, we received transfers from subsidiary units as detailed below:

ID Account



June 2019Frw Frw

1393 (insert name of public entity) (insert name of public entity) Total X X

8.2.5. Fines, penalties and licences

This refers to non-tax revenue collected by Rwanda Revenue Authority and other Government agencies.

ID AccountDescription FY 2019/2020 FY 2018/2019

Period ended Month XXXX Period ended June 2019Frw Frw

1431 Fines X X1432 Penalties X X1433 Forfeitures X XTotal X X

8.2.6. Property income

This refers to the fees collected from the sales of Goods and Services and property income as follows for the period ended DD/MM/YYYY

ID Account Description

FY 2019/2020 FY 2018/2019Period ended


June 2019Frw Frw

1411 Interest 1412 Dividend received1413 Rent and leases revenues

Total

Page 32 of 70


8.2.7. Sales of goods and services

This refers to the fees collected from the sales of Goods and Services and property income as follows for the period ended DD/MM/YYYY




June 2019Frw Frw

1421 Sale of Goods of Market Establishment X X 1422 Administrative fees X X

1423Incidental Sales by Non Market establishments X X

Total X X

8.2.8. Proceeds from sales of capital items

This refers to the fees collected from the Disposal of Tangible Fixed Assets Sale of Inventories Sale of Valuables, Sale of Non-Produced Assets, Disposal of Financial Assets – Domestic, Disposal of Financial Assets – Foreign for the period ended DD/MM/YYYY




June 2019Frw Frw

151 Disposal of tangible fixed assets X X1517 Disposal of intangible fixed assets X X152 Sale of Inventories X X153 Sale of Valuables X X154 Sale of Non-Produced Assets X X155 Disposal of financial Assets-Domestic x x 156 Disposal of financial Assets-Foreign Total X X

8.2.9. Other revenue

These comprise of other revenues including voluntary transfers other than grants, miscellaneous income and unidentified revenues.

ID Description FY 2019/2020 FY 2018/2019

Page 33 of 70


AccountPeriod ended


June 2019Frw Frw

144 Voluntary transfers other than grants X X1451 Miscellaneous income X X1452 Unidentified revenue X X Total X X

8.2.10. A Domestic Borrowings

These comprise of proceeds from loan borrowing from domestic development partners received by entity in form of cash transfers; direct payments and in form of technical assistance.

Name of Partner Date received


Exchange rate


Amount in

Previous FY

Frw Frw161. Domestic Loans (Loan Received in Cash)

Insert name of the partner Insert name of the partner 161. Domestic Loans (Loan Received by Direct payment)

Insert name of the partner Insert name of the partner 161. Domestic Loans (Loan Received by Technical assistance)

Insert name of the partner Insert name of the partner Total

8.2.10. B External Borrowings

These comprise of proceeds from loan borrowing from external development partners received by entity in form of cash transfers; direct payments and in form of technical assistance.

Name of Partner Date received

Amount in

foreign currency

Exchange rate


Amount in

Previous FY

Page 34 of 70


Frw Frw162 Foreign Loan (Loan Received in Cash)

Insert name of the partner Insert name of the partner 162 Foreign Loan (Loan Received by Direct payment)

Insert name of the partner Insert name of the partner 162 Foreign Loan (Loan Received by Technical assistance)

Insert name of the partner Insert name of the partner Total

8.2.11. Compensation of Employees

These comprise of the remuneration payable to employees in return for the work done. In addition to wages and salaries, compensation of employees includes social contributions made by general Government unit on behalf of its employees.

ID Account

Description FY 2019/2020 FY 2018/2019Period ended Month XXXX


Frw Frw2111 Salaries in cash for Political appointees X X2112 Salaries in cash for Diplomats X X2113 Other employees: Basic Salary in cash X X 2114 Teachers Basic Salary in Cash X X 2115 Health Staffs Basic Salary in Cash X X 2116 Project Staff remuneration X X2131 Actual Social Contribution X X2141 Salaries Arrears in Cash X X2142 Salaries in Arrears in Kind2143 Arrears on Social Contribution Total X X

8.2.12. Goods and Services


FY 2019/2020 FY 2018/2019Period ended Month XXXX


Frw Frw2211 Office Supplies and Consumables

Page 35 of 70





Frw Frw2212 Water and Energy2213 Rental Costs2214 Communication Costs2215 Insurances and licences

2216Bank charges and commissions and other financial costs

2217 Public Relations and Awareness2218 Membership and Subscriptions

Insert name of the organization /Institution

2221 Professional and contractual Services2231 Transport and Travel2241 Maintenance and Repairs2242 Spare Parts2251 Small office equipment2252 Small tools & production equipment2261 Training Costs2271 Health and Hygiene2272 Clothing ;Uniforms and Curtains2273 Security and Social Order2274 Veterinary and Agricultural Supplies2275 Other production materials and supplies2281 Arrears - Use of Goods and Services2291 Other Use of Goods& Services Total X X

8.2.13. Grants and Other transfer payments

8.2.13.1. Grants

These comprise of non-compulsory transfers made by budget agencies and include grants to foreign Governments, grants to international organisations, and transfers to Government non-reporting entities as per below details:




Frw FrwGrant to external261 Grants to Foreign Governments 0 0262 Grants to International Organisations 0 0 Total 0 0

Page 36 of 70


8.2.13.2. Transfers to public Reporting Entities

During the period ended DD/MM/YYYY, we made transfers to public reporting agencies and Self Accounting Development projects as detailed below:




Frw Frw

267104 Transfers to Central government entities

Transfer to Treasury 9,053,073 0 (insert name of public entity) 0 0267105 Transfers to Districts (insert name of public entity) 0 0 (insert name of public entity) 0 0

267206 Transfers to Independent development projects

(insert name of public entity) 0 0 (insert name of public entity) 0 0 267106 Below Line Transfer to Treasury (insert name of public entity) 0 0 (insert name of public entity) 0 0 267208 Revenue Remittance (insert name of public entity) 0 0 (insert name of public entity) 0 0267107 Transfers to Subsidiary Entities-Current (insert name of public entity) 0 0 (insert name of public entity) 0 0267109 Intra Transfers To Central Government -

Current (insert name of public entity) 0 0 (insert name of public entity) 0 0267110 Intra Transfers To Districts -Current (insert name of public entity) 0 0 (insert name of public entity) 0 0267111 Intra Transfers To Government

Developments Projects Current (insert name of public entity) 0 0 (insert name of public entity) 0 0267112 Intra Transfers To Subsidiaries Entities -

Current (insert name of public entity) 0 0

Page 37 of 70





Frw Frw (insert name of public entity) 0 0267107 Transfers to Subsidiary Entities-Current (insert name of public entity) 0 0 (insert name of public entity) 0 0267204 Transfers To Central Government

Institutions -Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0267205 Transfers To Districts -Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0267207 Below Line Transfers To Treasury -

Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0267208 Revenue Remittance To Kigali City (insert name of public entity) 0 0 (insert name of public entity) 0 0267209 Intra Transfers To Central Government -

Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0267210 Intra Transfers To Districts -Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0267211 Intra Transfers To Government

Developments Projects Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0267212 Intra Transfers To Subsidiaries Entities -

Capital (insert name of public entity) 0 0 (insert name of public entity) 0 0 Total

8.2.13.3. Transfers to subsidiaries

These comprise of non-compulsory transfers made by budget agencies as per below details:

ID Account

Description FY 2019/2020 FY 2018/2019Period ended Period ended

Page 38 of 70


Month XXXX June 2019Frw Frw

267301 District Schools267302 District Hospitals267304 Prisons267305 Courts –Up and Lower267307 Sectors267308 Transfers to Health Centres 267309 Transfers to Pharmacies267310 Transfer to Mutual health sections267311 Transfer to Health centres

267399 Other Transfer to non-reporting government entitiesTotal

8.2.14. Subsidies

This refers to the amount transferred to the public and private market producer’s corporations in form of subsidies as below:




Frw Frw251 Subsidies To Public Corporations X X

Insert Name252 Subsidies To Private Enterprises X X

Insert Name Subtotal X X

8.2.15. Social assistance

During the period ended DD/MM/YY, incurred social assistance amounting to:

ID Accoun

tDescription



Frw Frw272 Social Assistance Benefits X X273 Employer Social Benefits X X274 Arrears on payment of social benefits X X Total X X

Page 39 of 70


8.2.16. Finance costs

These are costs incurred to service debts in form of interest paid in respect of public loans.

ID account DescriptionFY 2019/2020 FY 2018/2019



Frw Frw2421 Interest to Non-Residents X X

2431 Interest to Residents other than Governments X X

2441 Interest to other General Government units X X

Total X X

The details are presented in table below




Frw Frw2421 Interest to Non-Residents X X

Sub total

2431 Interest to Residents other than Governments X X

Sub total

2441 Interest to other General Government units X X

Sub total Total X X

8.2.17. Acquisition of fixed assets

Page 40 of 70


During the period ended DD/MM/YY, we incurred capital expenditure as detailed in the table below:

ID accoun

tDescription



Frw Frw231 Acquisition of fixed assets X X232 Inventory X X233 Valuables X X234 Non Produced Assets X X

235 Investment in Financial Assets – Domestic X X

236 Investment in Financial Assets – Foreign X X

237 Arrears on acquisition of fixed assets X X2321 Acquisition of strategic Stocks X X238 Acquisition Of Other Investments Total X X

8.2.18. Repayment of borrowings

These represent the amount paid to settle the principal on loans advanced to Government.

ID account Description

FY 2019/2020 FY 2018/2019


Year to June 2019

Frw Frw2912 Currency And Deposits2913 Securities Other Than Shares (Debt Securities)2914 Domestic Loans2921 Repayment of principal – Foreign debt2922 Securities Other Than Shares (Debt Securities)2923 Foreign Current Loans2924 Foreign Capital Loans TOTAL

The details are presented in table below


FY 2019/2020 FY 2018/2019


Year to June 2019

Frw Frw2912 Currency And Deposits

Page 41 of 70



FY 2019/2020 FY 2018/2019


Year to June 2019

Frw Frw

Sub total2913 Securities Other Than Shares (Debt Securities)

Sub total2914 Domestic Loans

Sub total2921 Repayment of principal – Foreign debt

Sub total2922 Securities Other Than Shares (Debt Securities)

Sub total2923 Foreign Current Loans

Sub total2924 Foreign Capital Loans

Sub total TOTAL

8.2.19. Other expenses

Page 42 of 70


These include all expenses transactions not elsewhere classified. This includes membership and subscriptions, scholarships and education benefits as well as miscellaneous expenses.




Frw Frw267303 Transfers to Political Parties267306 Transfers to Teachers Sacco267308 Transfers to credit saving scheme285101 Miscellaneous expenses285102 Disaster Intervention and Relief Costs285103 Other Contingencies and Emergencies285104 Decorations and Medals285105 VAT refund285106 Other tax refund285107 Non tax revenue refund285108 Other miscellaneous expenses285109 Sitting allowances285110 Support to third party initiatives285111 Impromptus285112 Penalty285113 Grant refund285114 Bad debt written off285115 Caution Money Refund

285116Tax Counterpart on Development projects

286101 Arrears on other expenditures287101 Property Expense Other Than Interest288101 Education Reimbursable Scholarships

288102Education Non Reimbursable Scholarships

288103 Other Education Scholarships288104 Students Living Allowances288105 Students Transportation Costs (Airfares)288106 Education Practicum Costs

288107Other Elsewhere Classified Education Benefits

288108

Current Grants (Select Name Of Specific Institution From Source Name Segment)

288109 Current Grants To Local Ngo288110 Current Grants To Local Company

288201Capital Grants (Select Name Of Specific Institution From Source Name Segment)

288202 Capital Grants To Local Ngo288203 Capital Grants To Local Company

Page 43 of 70





Frw Frw289101 Building Insurance289102 Automobile And Aircrafts Insurance289103 Insurance Of Other Long Term Assets

289104Insurance Of Employees In Case Of Accident At Work

289105Insurance Of Students In Case Of Accident In Practicum

289106Insurance From Responsibility For Third Party

289107 Other Insurance Costs289107 Other Insurance CostsTotal

8.2.20. Cash and cash equivalents

The bank amounts shown in the table below have been reconciled to the bank statements as at DD/MM/YY and as at 30th June 2018

8.2.20.1. Cash at bank

ID account Bank name

Account No.

Account currency


Exchange rate


Balance as at 30 June 2019

Frw FrwLocal currency Banks accounts in Rwanda 3113 BNR Frw Subtotal Foreign Currency bank accounts held in Rwanda 3114XX USD Sub totalDeposits within Banks in Rwanda 3115Sub totalLocal currency Banks accounts Outside Rwanda3213Foreign currency Banks accounts Outside Rwanda3214Sub Total Deposits within Banks Outside Rwanda3215Grand Total

Page 44 of 70


8.2.20.2. Petty Cash

ID account Petty name

Account currency


Exchange rate



Frw FrwCash Holdings- Frw Inside Rwanda3111 Sub Total Foreign Currency petty cash held in Rwanda 3112 Sub total Cash Holding –FCY Inside Rwanda3211Sub Total Cash Holding –FCY Outside Rwanda 3213Sub total Total

8.2.21. Receivables from exchange transactions

This refers to the amount receivable from the fees, sales of Goods and Services and property income as at DD/MM/YY

Debtor's Account Code

Debtor's name FY 2019/2020 FY 2018/2019Period ended Month XXXX


Frw FrwSales of Goods

312101 + 322101 Accounts receivables - Customers X X312198 Doubtful Receivables312199 + 322199 Other accounts receivables312401 + 322401 Receivable from Budget Agencies312504 Proceeds from privatisation

receivable322101 Rendering of services 312101 + 322101 Accounts receivables - Customers312198 Doubtful Receivables312199 + 322199 Other accounts receivables312102 + 322102 Accounts receivables - Students X X312103 + 322103 Accounts Receivables-Health

Insurers312601 + 322601 Bursary Loans - Local312602 + 322602 Unclassified bursary loans312701 Receivable from Health Centres

Page 45 of 70


Debtor's Account Code

Debtor's name FY 2019/2020 FY 2018/2019Period ended Month XXXX


Frw Frw312702 Receivable from Hospitals TOTAL x x

See details on disclosure 8.3.9

8.2.22. Advance payments

This refers to the amount receivable other than fees, sales of Goods and Services and property income as at DD/MM/YY

ID account DescriptionFY 2019/2020 FY

2018/2019Period ended Month XXXX


Frw Frw312101 + 322101 Accounts receivables - Customers X X312198 Doubtful Receivables X X312199 +322199 Other accounts receivables X X312201 + 322201 Receivable Salaries and Wages X X312202 TPR Receivable X X312203 Medical Health Insurance Contributions

Receivable X X

312204 Social Security Contributions Receivable X X312205 Scholarship Deductions Receivable X X312206 Outstanding Terminal Dues Receivable X X312207 Other Deductible Contributions Receivable X X312208 Other Deductions Receivable X X312209 Maternity Leave Scheme Contributions

Receivable X X

312210 +322202 Imprest X X312211 +322203 Other Payroll receivables X X312301+322301 Employee contributions Scheme loans X X312501 +322501 Dividends X X312502 Other Receivable from Public Enterprises X X312503 Interests receivable X X312801 Advance Payments on Works, Goods and

Service Contracts X X

Total X XSee details on disclosure 8.3.9

8.2.23. Direct investments

Page 46 of 70


This includes agency investments in private companies and public corporations.Category of share

Company name

Nature of business

Investment date

Number of shares

% of shares

Share value as at ddmmyy

Share value as at 30 June 2019

Frw Frw

8.2.24. Payables

This refers to the payables from the normal course of the operations as below




Frw Frw4121 Accounts Payables -Third parties Insert supplier name x x Insert supplier name x x4122 Payroll liability Insert liability category or name X X

412301 Payables to Government Budget Agencies X X

Insert the entity name 412302 Payables to Public Enterprises (GBEs) Insert the entity name 4124 Tax Liabilities Insert liability category or name X X Total payables X X

8.2.25. Payments received in advance

This refers to the amount received before rendering services or delivering the Goods includes the performance Guaranty and caution money for the period DD/MM/YY




Frw Frw412106 Prepayments and Accruals Insert supplier name x x Insert supplier name x x Total payables X X

Page 47 of 70


8.2.26. Retained Performance Securities

This refers to the withheld amount on the suppliers’ invoices for performance securities. Retained performance securities are reimbursed back to the suppliers after the final delivery and most of time after liability period.




Frw Frw4125 Retained Performance Securities Insert supplier name x x

Insert supplier name x xTotal

8.2.27. Direct borrowings

This refers to the borrowing made by the entity name from the domestic partner as below

Financial Institution

Loan repayment period

Purpose of the loan

Principal

Repaid to date

Outstanding current FY

Outstanding Previous FY

Frw Frw Frw Frw[Insert full bank name] X X

[Insert full bank name] X X




8.2.28. Accumulated surplus/Deficit from previous year

These include cash book reconciled bank balances, petty cash balances, accounts payables balances as well as accounts receivables balances existing at the beginning of the year along with the closing balance of the Prior year adjustments and the accumulated balance as of the last year

Page 48 of 70


ID account

Description

Accumulated Surplus/(Deficit)FY 2019/2020 FY 2018/2019

June 2019 (Submitted for Consolidation)

June 2019 (adjustments )

June 2019 (After audit adjustment )

June 2018 (After Audit adjustments)

Frw Frw Frw Frw

511101Cash and cash equivalent XXX

XXXXXX

511102 Accounts Receivables XXX XXX XXX

511103 Accounts Payables (XXX) (XXX) (XXX)

Investments XXX XXX XXXBorrowing (XXX) (XXX) (XXX)

512101 Bank and cash Adjustment XXX/(XXX)

XXX/(XXX) XXX/(XXX)

XXX/(XXX)

512102 Receivables Adjustment XXX/(XXX)

XXX/(XXX) XXX/(XXX) XXX/(XXX)

512103 Payables Adjustment XXX/(XXX)


521101 Accumulated Surplus XXX/(XXX)


Total XXX/(XXX) XXX/(XXX) XXX/(XXX) XXX/(XXX)

8.2.29. Prior Year Adjustments

The following is the prior year adjustments to opening balances

ID Account

Description

FY 2019/20

FY 2019/20 FY 2018/2019

FY 2018/19

FY 2017/2018

Current period 2019/2020

Movements (+/-)

June 2019 Movements (+/-)

June 2018

Frw Frw Frw Frw

512101Cash and cash equivalent

512102

Receivables and other financial assetsInvestments

512103 Payables

Page 49 of 70


and other liabilitiesBorrowing

Total

29.1 Adjustments on cash and cash equivalent

Description As 30th June 2020 As at 30 June 2019

Frw Frw

Total

29.2 Adjustments on accounts receivables

Description As 30th June 2020 As at 30 June 2019Frw Frw

Total29.3 Adjustments on accounts payables


Total

29.4 Adjustments on investments


Total

29.5 Adjustments on borrowing


Total

Page 50 of 70


8.2.30. Changes in Accounts Receivables and Accounts Payables

These comprise of changes in account receivables and accounts payables from previous year to this year. Once the change in accounts receivable is positive, it represents the cash outflow while the negative change in accounts receivables implies cash inflows. As far as accounts payable are concerned, the positive change implies more cash inflows whereas the negative trend of accounts payable implies the cash flowing outside the entity. Below is the movement within accounts receivable and accounts payable.

Description Balance as at month 2019

Movement during the current year

Balance as at 30th June 2020

Movement during the previous year

Frw Frw Frw FrwMovement in accounts receivablesMovement in accounts payable

Page 51 of 70


8.3. Important disclosures

8.3.1. Breakdown of the inventory of supplies and consumables

DescriptionBalance as at 30 June 2019

Additions Consumed /disposed of

Balance as at 30 June

2020Consumable stores X X X XMaintenance materials X X X XSpare parts for plant and equipment

X X X X

Strategic stock X X X XWork in progress X X X XEducational/training course materials; and

X X X X

Drugs X X X XTotal X X X X

Page 52 of 70


8.3.2. Summary of physical assets and reconciled to the fixed asset register

CategoriesOpening balance 1 July 2019

Acquisition of assets

Disposed of

Revaluation surplus/(loss) amount

TransfersTotal gross carrying amount

Depreciation for the period

Net carrying amount as at DDMMYY

Frw Frw Frw Frw Frw Frw Frw FrwLand Buildings Structures Infrastructure Transport equipment Office Equipment ICT Equipment Machinery Equipment Other equipment Other infrastructure Heritage and cultural assetsInvestments propertyTotal

8.3.3. Summary of Biological assets and reconciled to the fixed asset register

Categories

Name Opening

balance 1 July 2019

New born babies

New acquisition of assets Disposed of Transfers

Revaluation surplus/ (loss) amount

Total gross carrying amount


Number

Frw

Number

Frw

Number

Frw Number Fr

wFrw

Number

Frw

Frw Number

Frw

Number

Frw

Livestock

Page 53 of 70


Categories

Name Opening

balance 1 July 2019

New born babies

New acquisition of assets Disposed of Transfers

Revaluation surplus/ (loss) amount

Total gross carrying amount


Number

Frw

Number

Frw

Number

Frw Number Fr

wFrw

Number

Frw

Frw Number

Frw

Number

Frw

Birds & fowl

Live fish Shellfish & aquatic invertebrates

Insects Wild animals

Total

Page 54 of 70


8.3.4. Detailed building registry (Rwanda Housing Authority)

SN

Name of the Building

Code of the Building

Building type

UPI of the Land

Condition (New, good, fair, deteriorated)

Owner Co-owner Plot area square meter

Net Carrying Amount Frw

1234

Guidance Notes:

Building types includes

Offices Residential Industrial Hospital Colleges and Universities Schools Hostels Public

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8.3.5. Roads registry (Rwanda Transport Board)

SN Road class

Road Code

Road Names

Starting point

End Point

Length Paved length

Unpaved length

Cost at the beginning of the year

Additions/(Deterioration)

Cost at the End of the Year

Frw Frw Frw1.2.3.4.5.

Guidance on road classification:

Class

Classification Description of the road

N1 National roads International roads that link Rwanda with neighbouring countries; Roads that interlink Districts or that link a District and the City of Kigali; Roads that link areas of tourist significance and facilities of national or international

importance, such as ports and airports.D1 District and City of Kigali roads and

those in other urban areas – Class One (D1)

Roads linking different sector headquarters within the same District, or roads that are used within the same sector.

D2 Districts and City of Kigali roads and those in other urban areas - Class Two (D2)

Arterial roads that connect District roads to rural community centres, which are inhabited as centres of population.

P4, P5,

Specific roads (Primary, P4 and P5) and

Roads specifically constructed to connect national roads or District roads to Kigali City and other urban areas to sites of agricultural production, the processing of natural resources or tourism.

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8.3.6. Summary of intangible assets

Description Balance as at 30 June 20x0

Additions Consumed /disposed of


Frw Frw Frw FrwGoodwillFranchise agreements and other special agreementsPatentsCopyrightsSoftwareTotal

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8.3.7. Service concession agreements

Description Parties Duration

Conditions (in brief)

Investment value Outstanding financial liabilities

Operator Grantor Grantee 2020 2019 2020 2019Frw Frw Frw Frw

8.3.8. Leases

Type Lessor Duration Start date Total lease amount

Number of instalments

Periodic repayment

Total Repayments as of xxmmyyyy

Frw Frw

Operating

Finance

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8.3.9. Aging Summary Report for Receivables

Payable Name Date Intervals

Total1-45 days 46-90 days 91-365 days 1 Year to 2

Years Above 2 Years

Name xxx xxx xxx

Total Xxx Xxx Xxx Xxx Xxx Xxx

8.3.10. Aging Summary Report for Payables

Payable Name Date Intervals

Total1-45 days 46-90 days 91-365 days 1 Year to 2 Years Above 2 Years

Name xxx xxx xxx

Total Xxx Xxx Xxx Xxx Xxx Xxx

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8.3.11. Outstanding recoveries of training costs

Type or class of sponsorship FY 2019/2020 FY 2018/2019Period ended Month XXXX

Period ended 30 June 2019

Frw Frw[Insert type] X X[Insert type] X X

X X

8.3.12. Summary of contingent liabilities

Contingent liability Contracting date

Nature/description of underlying of GoR obligation

Value at contracting (if available)Frw

Outstanding lawsuitsWarrantees / GuaranteesLiquidated damagesUnliquidated damagesTaxes, fines and penalties disputedOtherTOTAL

8.3.13. Outstanding recoverable taxes and fees

Taxpayer Name Taxpayer TIN

Type of tax

Amount declared not paid as at 30 June 2020

Amount declared not paid as at 30 June 2019

Frw Frw

TOTAL

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8.3.14. Retained guarantees

8.3.14.1. Advance guarantee

This refers to the advance guarantees submitted by various contractors not yet repaid back at the end of the financial year.

Contractor name

Object of the contract

Guarantor

Contract amount

Guaranteed amount Frw

Status of execution

Return date

Total

8.3.14.2. Performance guarantee

This refers to the performance guarantees submitted by various contractors not yet returned or seized. These performance guarantees exclude the performance guarantee constituted through withholding funds from contractor invoices.

Contractor name

Object of the contract

Guarantor Contract amount

Guaranteed amount Frw

Status of execution

Return date

Total

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8.3.15. Disclosure on subsidiary entities financial results as at 30th June 2020

S.No.

NBA code

NBA Name

NBA Category

Opening

Balance

Adjustments on opening

balance

Transfer from District

Transfer from other

entities Other

Revenues Expense

s

Period Fund

Balance Bank

Balances Cash

Balances Account

Receivables

Account

Payables Fund

Balance

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Appendix 1: Progress on follow up of Audit Recommendations

The template below summarizes the audit recommendations forming the basis of opinion from the recent audit as well as the implementation status.

Reference No. on the audit Report

Issue / Observations from Auditor

Recommendation Action taken by management

Timeframe:(Put a date when you expect the issue to be resolved)

Status:(Open or Closed)

Focal person for implementation of recommendations

Guidance Notes:

(i) Use the same reference numbers as contained in the audit report;(ii) Obtain the “Issue/Observation” and “auditor’s recommendation”, required above, from final audit report that is signed by Management;(iii) Before approving the report, discuss the timeframe for implementing remaining recommendations with the appointed Focal Point persons

within your entity responsible for implementation of each issue;(iv) Indicate the status of “Open” or “Closed” as at the date of submitting this report to MINECOFIN. Open means the issue is not yet resolved

while closed means the issue has now been resolved;(v) For all issues related to Accounts Payable, Receivable and Omitted bank accounts, and that require an audit adjustment, these should be

adjusted before submission of the FY 20X0/X2 i.e. before 31st July 2020.

Prepared by:


Signature Date

Reviewed by:


Signature Date

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Checked by:


Signature Date

Approved by:


Signature Date

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Appendix 2: Compliance checklist for Budget Agencies

The checklist below should be populated by the Director of Finance and is aimed at assisting him/her in his quality review role and ensuring completeness of the financial statements.

Ref Particulars Yes

No Comment if answer is No

1 Basic Financial Statements

1.1 Is the financial statement prepared according to the format provided by MINECOFIN?

1.2

Does the report contain a Statement of Revenue and Expenditure, Statement of assets and liabilities, a cash flow statement, statement of comparison of budget and actual, notes to financial statements, and disclosures?

1.3Are the notes to the financial statements complete and tie to the Statement of Revenue and Expenditure and Statement of assets and liabilities?

1.4Have the financial report been reviewed by the Director of Finance and Chief Budget Manager before submission to Accountant General.

1.5 Have adequate information explaining the variances been provided in the comparison of budget and actual amounts.

1.6 Has the report been submitted within the statutory deadlines?

1.7 Have all Inter-Entity transactions been confirmed with the sending and receiving entity?

1.8Have the bank reconciliations for all bank accounts been done and reconciliation reports attached to the current financial statements

2 Period end procedures

2.1 Are all the prior year adjustments authorized by the Chief Budget Manager?

2.2 Are all journal vouchers authorized by the Director of Finance?

2.3 Has the audit recommendation checklist been populated and included in this report?

2.4 Have all outstanding payments as at year end accrued as accounts payable?

2.5Has the aging list of accounts receivable and accounts payable been reviewed by Director of Finance and Chief Budget Manager and provide along the annual financial statements?

3 Filling

3.1 Are all supporting documents for all transactions contained in the General Ledger available and properly filed?

4 Laws and Regulations

4.1Has the financial report been signed off by the Chief Budget Manager, Project Coordinator, Director of Finance, Accountant and revenue officer as the case may apply?

5 Disclosures5.1 Has the entity included all disclosures as required by reporting

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Ref Particulars Yes

No Comment if answer is No

template?5.2 Are all disclosures casting?

Prepared by:


Signature Date

Reviewed by:


Signature Date

Checked by:


Signature Date

Approved by:


Signature DateAppendix 3: Detailed Trial Balance as at dd mm 2020

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Appendix 4: Bank reconciliation statements as at 30 June 2020. (For all bank accounts)

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Appendix 5: Bank statements to accompany the bank reconciliation statements. (For all bank accounts)

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Appendix 6: Petty cash certificate

Cash Count Certificate

Date: DD MM 2020 Currency: Frw

Authorised cash threshold (maximum cash allowed) _____Frw 500,000_______

Denomination Number Total Value

Not

es

5,000 xx Xx2,000 xx Xx1,000 xx Xx500 xx Xx

Coi

ns

100 xx Xx

50 xx Xx20 xx Xx10 xx Xx5 xx Xx1 xx Xx

Total amount of cash counted (a)Add petty cash advances outstanding (b) XxTotal cash in hand ( c = a+b) XxCash balance as per cash book (IFMIS) (d) XxDifference (e = c-d) XAction required/ explanation for the difference: (insert reason for difference)

Name Signature DateCash counted by

(Name) : (Director of Finance)

DD MM 2020

Agreed by (name) : (Cashier/accountant in charge of petty cash)

DD MM 2020

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Documents

Project charter - MINECOFINminecofin.gov.rw/.../PAU_Files/...for_2019_2020_for_Proje… · Web viewThe presentation and classification of items in the financial statements are consistent