ARUSHA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY

Transcription

ARUSHA URBAN WATER SUPPLY
AND SEWERAGE AUTHORITY
| Annual Report 2010/11 |
ANNUAL REPORT AND ACCOUNTS FOR
THE FINANCIAL YEAR 2010/2011
WATER FOR FOOD SECURITY
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AUWSA Vision:
“Water Supply and Sanitation Services in Arusha City delivered in compliance with both
National and International Standards”.
AUWSA Mission Statement:
“To provide quality water and sanitation services efficiently and effectively using
available resources and technologies for sustainable development in Arusha City”.
AUWSA Quality Policy:
“We, Arusha Urban Water Supply and Sewerage Authority (AUWSA), endeavor to
provide affordable, sufficient, safe and clean water and to have an efficient and
sustainable water supply system which is capable of catering for the current and
future customers’ needs. We continually improve our processes and product to
ensure that we consistently meet customers’ and regulatory requirements and each
of us is personally committed and dedicated to the final quality of his/her job”.
AUWSA Core Values are:
§ Professionalism,
§ Customer focus,
§ Team work spirit,
§ Value for money,
§ Environmental Consciousness,
§ Quality Management System,
§ Innovativeness and
§ Accountability.
Table of Contents
LETTER OF TRANSMITTAL............................................................................................................................................. 1
WHO WE ARE AND WHAT WE DO.............................................................................................................................. 2
THE YEAR IN NUMBERS.................................................................................................................................................. 3
CHAIRMAN’S OVERVIEW STATEMENT...................................................................................................................... 5
MANAGING DIRECTOR’S BUSINESS REVIEW.......................................................................................................... 7
OUR DIRECTORS.............................................................................................................................................................15
MANAGEMENT OF THE AUTHORITY.......................................................................................................................17
STATEMENT OF INTERNAL CONTROL.....................................................................................................................20
REPORT OF THE DIRECTORS......................................................................................................................................22
ACKNOWLEDGEMENT.................................................................................................................................................59
i
21
REPORT OF THE DIRECTORS.........................................................................................................................................
22
ACKNOWLEDGEMENT....................................................................................................................................................
Letter
of Transmittal
63
Hon. Prof. M.J. Mwandosya (MP),
Minister for Water & Irrigation
P.O. Box 9153,
DAR ES SALAAM.
Hon. Prof. M.J. Mwandosya (MP),
Minister for Water
Dear Sir,
RE: THE ANNUAL REPORT OF THE ARUSHA URBAN WATER SUPPLY AND SEWERAGE
AUTHORITY FOR THE PERIOD ENDED 30TH JUNE, 2011
Pursuant to Water Supply and Sanitation Act No. 12 of 2009, I have the honour to submit,
on behalf of the Board of Directors, a report on the Authority’s Operational Performance
for the financial year ended 30th June, 2011 together with the Audited Accounts for the
same period.
Respectfully submitted
F.C. Mrema
CHAIRMAN
BOARD OF DIRECTORS
3rd May, 2012
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WHO WE ARE AND WHAT WE DO
Table
of Contents
Arusha Urban Water Supply and Sewerage Authority was established under the Water
Works Act CAP 272 as per Government Notice No. 371 published on 25th July, 1997. The
Water Works Act has been repealed by Water Supply and Sanitation Act 2009. Whereas
section 60 (2) save rules and regulation to be deemed to continue in force. In view of that
and subject to section 3 (1) of the Waterworks Regulation, the Minister for Water declared
LETTER
TRANSMITTAL.
..........................................................................................................................................
Arusha OF
Urban
Water Supply
and Sewerage Authority an autonomous body with effect
st
from 1 January, 1998.
1
AUWSA discharges its functions under the Ministry of Water and is closely regulated by
WHO WE ARE AND WHAT WE DO............................................................................................................................
the Energy and Water Utilities Regulatory Authority (EWURA)
2
The principal business of AUWSA is production, distribution and delivery of clean and
THE
YEARwater
IN NUMBERS.
...............................................................................................................................................
potable
including
collection, treatment and disposal of the sewage emanating from
the Urban areas of the Arusha City.
3
AUWSA is incorporated in Arusha City. Its registered office and address of its principal
CHAIRMAN’S OVERVIEW STATEMENT....................................................................................................................
place of business is:
6
Wachagga Road,
Managing Director,
MANAGING
DIRECTOR’S BUSINESS REVIEW........................................................................................................
P.O. Box 13600,
8
ARUSHA
Tel.: 027-2504163, 2506124
OUR
DIRECTORS.
............................................................................................................................................................
Toll free
Nos: 0713-800671,
0767-145214 and 0785-555139
Fax: 027-2504163, 2548981
16
E-mail: [email protected] and [email protected]
Website: www.auwsa.or.tz
MANAGEMENT OF THE AUTHORITY.......................................................................................................................
18
STATEMENT OF INTERNAL CONTROL.....................................................................................................................
2
THE YEAR IN NUMBERS!
POSITIONS AS AT 30TH JUNE
TSH. IN BILLIONS
NOTE 2004 2005 2006
Billings Income
14
Other Income
16
Gross Income
2007
2008
2009
2010
2011
2,145 2,240 2,729 3,575
3,710
3,696
3,788
3,963
428
493
487
578
640
2,666 2,771 3,040 4,003
4,203
4,184
4,366
4603
521
531
311
Total Assets
3-8
9,338 9,794 9,893 10,113 10,470
9,684 16,188
16,701
Share Capital
10
5,877 5,877 5,877 5,877
5,877
5,877 10,995
10,995
264
341
234
1,484
76.8
1,548 1,168 1,230 1,494
1,850
-570
-361
-283.9
2,222 2,519 2,918 3,429
3,910
3,968
4,193
4,331
Net Surplus for
the year
271
Retained
Reserves
Revenue
Collection
-
-382
62
Total Assets 16.18bn
Increased by 3.7 %
Surplus Generation 76.8m
Decreased by 95 %
Retained Reserves -284m
Decrease by 21.28%
Billings Income 3.963bn
Increased by 4.6 %
Other Income
Increased by 10.7 %
640m
Gross Income 4.602bn
Increased by 6.8 %
Water Supply Connections 31,675
Increased by 9 %
Sewerage Connections 4,047
Increased by 1.1 %
Revenue Collection 4,331bn
Increased by 3.3 %
Population served water
97.5 %
Population served sewer
17%
Hours of water supply
18hrs on average
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OUR BANKERS
CRDB BANK
ARUSHA BRANCH
P.O. BOX 3150
ARUSHA
TANZANIA
STANDARD CHARTERED BANK
ARUSHA BRANCH
P.O. BOX 3000
ARUSHA
TANZANIA
OUR STATUTORY AUDITORS
Controller & Auditor General
National Audit Office
Who delegated to:
M/s. Shebrila & Co
CERTIFIED PUBLIC ACCOUNTANTS
P.O. BOX 22131
DAR ES SALAAM
TANZANIA
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CHAIRMAN’S OVERVIEW
STATEMENT
Mr. F. C. Mrema
CHAIRMAN
I am humbled by the honor and privilege given to me as Chairman of Arusha Urban Water
Supply and Sewerage Authority (AUWSA) Board of Directors in October, 2010. With the
new members of the Board of Directors we embarked on a review of AUWSA’s Strategic
Plan which was for 2009 – 2013 in order to cater for Arusha’s upgraded status from
a Municipality to a City whereby the area of jurisdiction has expanded from 93km2 to
208km2 and a population increased from 366,933 to 507,903. The coming census will
undoubtedly reveal a bigger number than this.
Before being upgraded to a City, AUWSA was able to provide 98.5% coverage of water
supply and 17% for sewerage coverage. With this City status it is now 44% and 7.6%
respectively.
This additional coverage has raised considerably the bar of challenges AUWSA is now
facing. However the gravest challenges AUWSA is currently facing and will continue to
face for the foreseable future is the ever increasing demand of the City for water and
declining water production from current sources. Demand has now increased from
53,030m3/d to 93,270m3/d while production has decreased from the range of 35,000m3/d
up to 60,000m3/d to 32,000m3/d up to 45,000m3/d depending upon the season. This
mismatch of demand and supply will continue to worsen due to unfavorable weather
conditions and global warning UNLESS radical measures are aggressively taken now to
address this impending crisis.
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The Pangani Basin Water Board has in stark terms notified all the stakeholders in the
City of Arusha and its environs, in particular, Arusha, Meru and Monduli Districts of this
impending crisis. They have identified two catchment areas that need protection and
conservation. Those are:(i)
The Burka – Mateves – Ngaramtoni area.
(ii)
Part of Sokon Ward in the City of Arusha.
Currently, Monduli District receives its supply from the Burka – Mateves – Ngaramtoni
area.
The surveys done by The Pangani Basin Authority confirm these two areas to be the only
viable remaining catchments areas with enough potential to supply the increasing demands
of the four districts for the next 50 years. The only other area with some potential is lake
Duluti but its viability is yet to be established.
These areas however, have challenges of their own and under threat from other competing
human demands including creation of satellite towns. The impact of these other demand
if left unchecked on the catchments areas is very clear. All stakeholders have to agree now
on the way forward without putting into jeopardy these catchment areas unless we can
be assured of a sustainable alternative.
The other major challenge AUWSA is facing is on the Sewerage Disposal System. The
current sewerage disposal ponds at Lemara have long reached its optimum. Fortunately,
we have now been allocated a new site of 100 ha at Themi Holdings Grounds an area
ideal to cater for the whole City. Funding for construction of the physical works has to be
secured as a matter of urgency and priority.
Aware of the importance of the City of Arusha, nationally and regionally, these two
challenges need to be supported, addressed and owned by all stakeholders in particular
the Regional Authorities and the Central Government as national projects requiring
appropriate prompt action.
I submit.
F. C. Mrema
CHAIRMAN
BOARD OF DIRECTORS
3rd May, 2012
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MANAGING DIRECTOR’S
BUSINESS REVIEW
Eng. R. S. Koya
Managing Director
CORPORATE PERFORMANCE FOR THE FINANCIAL YEAR 2010/11
INTRODUCTION:
AUWSA is governed by the Board of Directors and headed by the Managing Director.
Under the Managing Director there are three Departments namely; Technical Services,
Commercial Services and Finance & Administration. There are ten Sections under these
three Departments. Also there are four units namely; Internal Audit; Procurement
Management, Information and Communication Technology, and Public Relations. AUWSA
has 189 employees of different qualifications and professions.
In her fourteenth year as an autonomous entity, the Arusha Urban Water Supply and
Sewerage Authority (AUWSA), attained several achievements in its goal of providing safe
and clean water and sewerage services to the Arusha City residents. The Authority was
able to raise water service coverage from 95% to 98.5% and sewerage coverage from
11.6% to 17%. These achievements were attained when Arusha was having a Municipality
status.
The major achievements made in the previous years included sustaining gains made
since the Authority’s inception, expanding service coverage both in water supply and
sewerage, reducing non revenue water, improving billing and revenue collection efficiency,
procurement of modern working facilities and equipment and recruitment and capacity
building of its staff.
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Recently, Arusha’s status was upgraded from a Municipality to a City, this necessitates the
need for reviewing the previous Strategic Plan to cater for the increased service coverage from
93 km2 to 208km2. Likewise, the service levels for water supply declined from 98.5% to 44%
and that for sewerage service dropped from 17% to 7.6 %. The primary focus of the Authority
was to sustain and improve provision of water supply and sanitation services to the Arusha
City population while striving to contain costs and sustain efficiency in services delivery.
Despite of some significant challenges faced, we continued to maintain proper books of
account and a sound financial discipline. The value of Billing Income during 2010/2011
increased to Tshs. 3.908bn as compared to Tshs. 3.733bn (an increase of Tshs. 175 million
or 4.6%) compared to the previous year. The billing efficiency stood at 66.36% while the
revenue collection efficiency on water, service charges and sewer billed was 92%. In view
of that, the Non Revenue Water (NRW) was 30.98%.
The capital expenditure amounted to Tshs. 655.012m out of which Tshs. 255.44m were
directed towards WSDP project. The Design and preparation of tender documents has
been finalized.
Net Surplus generated amounted to Tshs. 76.80m compared to net surplus of Tshs.
209.31m during the previous year and accounts for 1.67% on Gross Income. Billings
income increased by 4.6% from Tshs. 3.733bn of previous year to Tshs. 3.97bn. Other
income has slightly increased from Tshs. 592m of previous year to Tshs. 640m and Share
Capital contributed a 0.57% surplus as compared to 1.9% for previous year. O and M cost
has increased from Tshs.4.171b of previous year to Tshs.4.533bn an increase of 8.68%.
Our focus during 2010/2011 has been on increasing our core product which is water by
improving existing water sources and exploring new ones to reduce the gap between
water supplied and demand in order to meet our customers’ needs expectations.
Rules and Regulations require the Management to prepare Annual reports showing
Operational and Financial Performance of the Authority. It gives me great pleasure to be
able to fulfill this noble obligation of presenting the Annual report for the Financial Year
ended 30th June, 2011.
AUWSA operates, performs and discharges its functions in accordance to but not limited
to the following:
-
Water Supply and Sanitation Act 2009.
-
Finance Act, 2001
-
Public Procurement Act, 2004.
-
EWURA Act, CAP 414
-
MoU between MoW/EWURA and AUWSA
8
Arusha City population during the reporting period of Financial Year 2010/2011 would be
estimated to the tune of more than 507,903 people with an annual growth rate of 5.4%.
Out of this population 97.5% reside in the former designated Municipality area (93km2)
and have access to water supplied by AUWSA whereas only 17% have sewerage disposal
services.
Service provision: Prevailing situation
Water Supply:
Arusha is supplied with water from three different sources namely; springs, boreholes and
a river. The spring sources include Olesha - Masama springs along Themi River located
4km north of the City, Ngarendolu and Machare springs located within the City. There
are 16 deep wells (boreholes) located in the northern part of the Town (Arumeru District)
and two boreholes located within the City area. The Nduruma River is located in the
north of the City. Boreholes contribute 33% of the daily water production and the springs
48%. The river contributes 19%. The production capacity fluctuates seasonally from an
average of 32,000m3/day in dry seasons to 45,000m3/day during rainy seasons while the
demand is 93,270m3/day, which includes residents within Arumeru District, where the
water production scheme is located.
From the above data, it shows that the supply does not suffice demand. This emphasis
is the importance of additional water sources requirement in order to maintain adequate
water supply throughout.
The water distribution system comprises of 248.88km of pipeline with diameters ranging
from 32mm (11/2”) to 700mm (28”). The pipe materials are of very old Cast Iron, Ductile
Iron, PVC and Polythene. The system also includes storage reservoirs with a total capacity
of 13,500m3, 24 Break Pressure Tanks, 48 Water Kiosks and 150 standpipes.
The number of new water connections constructed was 2,634 whereas a total of 58 new
sewerage connections were effected; bringing the total number of connections to 31,675
and 4,047 for water supply and sewerage services respectively at the end of June 2011.
The number of employees during the reporting period was 189. In this respect the number
of staff per 1000 connections (water and sewerage) stands at 6 which is an acceptable
number as per Memorandum of Understanding. Total new water meters installed were
2,634 for New Water Connections and 404 as replacement for old and defective ones thus
maintaining universal metering (100%).
The present water supply service level is 44% as opposed to the former service area which
was 98.5%. With the new service coverage, the majority of the population is located
in areas where AUWSA water supply network has not yet reached, and the community
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uses own sources. Water quality from all sources (springs, river and wells) is within the
required Tanzania Standards. For safety purposes, water treatment is done using calcium
hypochlorite and water quality monitoring is done by collecting samples from the
distribution system and checked for free chlorine on weekly basis and so far the results
have always been excellent.
Sewerage System
Ø Sewer Network
The sewer network consists of sewer pipes of various sizes and materials; and
inspection manholes. The sewer line is 44km long, the pipes are ranging from
100mm to 600mm diameter; made up of uPVC, Cast Iron and Concrete.
There are 593 manholes for inspection and access for cleaning. A total of 4,047
sewerage connections from categorized properties exist.
The current service
coverage is about 7.6% as opposed to the former 17%, which is very low compared
to clean water service level, hence the need for expansion of sewerage infrastructure
in general.
Sewer cleaning and blockage removal are done on routine basis. There are monthly
average of 320 sewer cleaning and 230 sewer blockage removal occasions.
Ø Sewage Treatment Ponds
There are five ponds working in parallel and series. The first pond is anaerobic,
followed by two facultative ponds in parallel and finally two maturation ponds in
series. Within the pond area there are two sludge ponds to treat septage from
cesspit emptiers.
The average daily flow into ponds is 4,350m3/day. The effluent is ultimately discharged
into Themi River which is mainly used for irrigation downstream. Wastewater
sampling and analysis for monitoring of the ponds performance is done on weekly
basis and any fund whenever need arises.
Operation activities during the year:
Accreditation of the Authority with ISO 9001:2008:
From 13th January, 2011 the Authority obtained ISO accreditation on Quality Management
System. By this accreditation, AUWSA was issued with Quality Management System (QMS)
Certificate No. TZS 501: ISO 9001:2008. The scope of the accreditation covers water
production, water treatment and water distribution. The certificate is renewable after
every three years on condition that ISO standard requirements are maintained through
verification by system auditing that will be periodically carried out by the National ISO
agent (TBS).
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Billing System Update:
Training on the new system (Smart Billing Manager – SBM) was done to the ICT, Billing,
and Account staff. The effective implementation of the system was from July, 2010 billing.
Also, Training to other staff was undertaken during the reporting period.
Repair and extension of services:
Water Supply:
Extension of pipeline network – Total extension this year is 7,046m
• Extension to remove spaghetti at Sombetini, NAIROBI shine 600m and reconnecting
95 customers after replacement of 1” polythene pipe.
• Extension of 11/2” polythene pipeline to remove spaghetti – 150m (Njiro - Malihai)
• Extension of 11/2” polythene pipeline to remove spaghetti – 300m (Njiro – block F)
• Extension of 11/2” polythene pipeline to remove spaghetti – 270m (Sombetini
Palloti)
• Extension of 11/2” polythene pipeline to remove spaghetti – 600m (Sokon USWAHILINI)
• Extension of 11/2” polythene pipeline to remove spaghetti – 150m (Olasiti)
•
•
•
•
Extension of 11/2” polythene pipeline to remove spaghetti – 150m (Kikwakwaru B –
Kwa Mchaina)
Extension of 2” uPVC pipeline to remove spaghetti – 200m (Ngarenaro – Top
London).
Extension of 11/2” Poly pipe – 300m at Olasity Mexon.
Kwa Mromboo area Extension works were carried out whereby 1350m (of poly 3”
and 2” PVC) were completed.
Sewerage System:
During this period the following activities were done:• Repair of ten (10) brocken Manholes at Kaloleni, Unga Ltd, Florida, Soweto, Pendeza,
Daraja II, Lemara and Kati wards.
• Repair of the cesspit empting bay on the sludge ponds at WSP.
• Construction of an intermediate manholes at Unga Lltd (Nguzo mbili) and at Sokoine
road (between Stanbic Bank and NBC Bank) areas to facilitate new connections and
unblocking processes.
• Sewer line extension (216m) in Levolosi ward of which 132m were of 200mm and
84m 150mmØ. Also 12 Manholes were constructed on this sewer extension.
Investments:
Development of New water Sources:
i)
Ilkiurei bore hole:
• During this reporting period, the following activities were undertaken:
• Laying 1,800m of 4” polythene pipeline from Ilkiurei borehole to join the existing
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•
•
16” DI pipe along Namanga road and distribution network within Ilkiurei area
which included 1,020m of 11/2” and 2” of 150m polythene pipeline.
Finalizing the construction of pump house.
The yield of the borehole is 30m3/hour and the project was completed
in February, 2011 and was inaugurated in March 2011 during Maji Week
Commemorations on 16th March, 2011.
Figure 1:0 shows the retired Managing Director accompanied with Management
Team, explaining to the Board of Directors the ongoing activities of developing Ilkiurei
Borehole.
ii)
Machare spring:
This source was handed over to AUWSA by World Vision Tanzania due to operation
and maintenance problems that were faced by both the donor and the community.
The immediate intervention measures that were implemented during the reporting
period include:
• Installation of gravity chlorine dowser for Moshono project
• Installation of 364 new water meters to the existing customers.
• Installation of 4” diameter water meter at the sump
Improvement and operation activities of the project will continue during next F/Y
2011/2012.
12
Figure 2:0 shows the retired Managing Director accompanied with Management Team,
explaining to the Board of Directors on the ongoing activities of developing Machare
Spring.
iii)
Water Sector Development Programme (WSDP):
During the reporting year and through the above mentioned programme, the
consultant is NORPLAN in association with NORPLAN TANZANIA and INTERCONSULT
LIMITED was finalizing detailed engineering design and preparations for tender
documents for improvement of water supply and sewerage services.
The designs included the following development activities:
Water Supply
• Development of new water sources i.e. drilling of new boreholes and abstraction of
surface water from Malala River and Machare springs.
• Construction of conventional water treatment plant to treat water abstracted from
river sources (Nduruma and Malala).
• Improvement and expansion of water supply distribution network including
construction of storage tanks (reservoirs).
Sewerage system
• Construction of New Waste Stabilization Ponds at Themi holding grounds to replace
the existing/overloaded ponds which have also been surrounded or enclosed by
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•
•
human settlements.
Construction of sewer trunk mains; upsizing and expansion of collection sewer lines
including respective appurtenances (manholes, river crossing etc).
Equipments and access roads to sewerage infrastructures
Efforts to secure funds for physical implementation of the project are being
done through Financial Institutions such as Banks, Development Partners and the
Government.
iv)
Research and Development:
The Authority in collaboration with the University of Dar es Salaam through Water
Resources Engineering Department is carrying out a research on Fluoride removal for
Mianzini and Ilboru Boreholes. However, efforts are being taken to look for alternative
Technology by inviting other Service Providers from both National and International
firms to facilitate defluoridation.
The activities carried out during the year are managed as a system of interacting processes
aimed at ensuring that we provide clean and safe water and safe waste water disposal
services consistently in order to meet our customers’ needs and expectations.
It is inspiring to see the way our team of people works together and strives for ways to
improve our collective performance. Throughout the year, their commitment, talent and
integrity have led to the delivery of remarkable results. Our employees are dedicated to
the final quality of their job and consistently ensure that customer’s needs and regulatory
requirements are met.
On behalf of the management, I would like to thank you all for your hard work during the
past year. Our thanks also go to our shareholders, whose continued support to AUWSA
has helped us to achieve record levels of performance in 2010/2011.
Eng. R. S. Koya
MANAGING DIRECTOR
3rd May, 2012
14
OUR DIRECTORS
In accordance to Water Supply and Sanitation Act 2009 there shall be a Board of Directors
for the Authority responsible for carrying out the functions and managing the business
and affairs of the Authority. Pursuant to this, the Board of Directors Regional Head
Quarters shall consist of not more than ten persons. Members are appointed by virtue of
their positions in public offices and others represent certain categories of water supply
consumers. The following is a disclosure of the Board of Directors on their representation
status:-
Mr. Felix C. Mrema
He is currently the Chairman of the Board of Directors
and a reputable Politician in the Region. Mr. F.C. Mrema
commands a high influence in the Arusha City and holds
various responsibilities on public, social and economic
spheres.
Mrs. Lydia M. Joachim
She is a retired Civil Servant, currently dealing with
Facilitation and Consultancy services on Social
Development matters. She represents Women in Board.
Mrs. Evelyne P. Itanisa
She is the Regional Administrative Secretary
for Arusha Region hence representing Regional
Administration.
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Eng. Amani B. Mafuru
Currently he is an Assistant Director for Community
Water Supply in the Ministry of Water. He represents
the Ministry in the Board.
Mr. Herbert N. Illembo
He is currently an employee of Tanzania Breweries Limited
in the capacity of Brewing Manager. He represents
locally based large-scale water consumers.
Mr. Joshua K. Kileo
He is a retired Civil Servant, representing domestic
Consumers in the Board. He is also the Vice Chairman
to the Board of Directors.
Mr. Zephania Darema
He is a Consultant on Small Enterprises and represents
Local Commercial Sector in the Board.
Mr. Estomih F. Chang’ah
He serves as the Ag. Arusha Municipality Director
and becomes a member to the Board by virtue of his
position.
Eng. R. S. Koya
She is the Managing Director of the Authority. She
becomes member of the Board by virtue of her position
and serves as the Secretary to the Board.
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MANAGEMENT OF THE AUTHORITY
Management of the Authority comprises of the Managing Director who is the Chief
Executive Officer and three line Managers, 10 Heads of Sections and four Heads of Units
as shown herein:-
Eng. R.S. Koya
Managing Director
Vacant
Technical Manager
Vacant
Finance & Admin
Manager
Mr. D.L. Fissoo
Customer Services
Manager
UNITS
Mrs. J.A. Lyaruu
Public Relations Officer
Mr. M.B. Ngatunga
Internal Auditor
Mr. A. H. Kimu
Ag. Head of Procurement
Management Unit
17
Mr. S.L. Kalulu
Information and
Communication
Technology Officer
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TECHNICAL DEPARTMENT
Vacant
Technical Manager
Vacant
Eng. S.S. Mahole
Maintenance and Repair
Engineer
Water Production
Engineer
Eng. I.I. Mugalula
Water Network
Engineer
Mr. A. Rweyemamu
Sewerage
Engineer
Eng. F.G. Mkawe
Planning and
Construction
Engineer
FINANCE AND ADMINISTRATION DEPARTMENT
Vacant
Mr. H.G. Matoi
Human Resources Officer
Mr. J.R. Aswile
Finance & Admin Manager
18
Mr. E.N. Melewas
Accountant
CUSTOMER SERVICES DEPARTMENT
Mr. D.L. Fissoo
Customer Services Manager
Vacant
Mr. N.R. Nkendyanoni
Credit Control
Officer
Customer Service
Officer
Mr. C.L. Baasha
Customer Billing
Officer
WORKERS’ REPRESENTATIVES
Mr. P. Bandiho
Chairman
(TUICO AUWSA Branch)
Mr. A.H. Kimu
Representative of Master
Workers’ Council
in the Management
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STATEMENT OF INTERNAL CONTROL
As Accounting Officer, I have the responsibility for maintaining a sound system of internal
control that supports the achievement of the Authority’s policies, aims and objectives set
by the Ministry of Water whilst safeguarding the public funds and assets for which I am
personally responsible in accordance with the responsibilities assigned to me.
The system of internal control is designed to manage risk to a reasonable level rather than
to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore, only
provide reasonable and not absolute assurance of effectiveness.
The system of internal control is based on an ongoing process designed to identify and
prioritize the risks to the achievement of the Authority’s policies aims and objectives,
to evaluate the likelihood of those risks being realized and the impact should they be
realized, and to manage them efficiently, effectively and economically. The system of
internal control has been in place for the period ended 30th June, 2010 and up to the date
of approving of the annual report and accounts.
As Accounting Officer, I also have the responsibility for reviewing the effectiveness of the
system of internal control. The following processes have been established:•
Management meetings held twice monthly to monitor the implementation of
plans and strategic direction of the Authority (The Management comprises of the
Managing Director, Heads of Departments, Sections, Units and a Master Workers
Council Representative who also actively participates).
•
Periodic reports from the Chairperson of the Board Audit Committee to the Board of
Directors concerning internal control.
•
Regular reports by the Internal Auditor who reports to the Board Audit Committee
and works according to the Standards Set by the International Auditing and
Assurance Standards Board (IAASB). These reports include review of working systems,
operational performance and recommendations on how to improve situations.
•
Weekly, monthly, quarterly, mid and annual performance reports as per Memorandum
of Understanding signed between the Ministry and the Authority.
•
Regular reports from Managers on the steps they are taking to manage risks in their
areas of responsibility including progress reports on key projects.
•
Establishment of key performance and risk indicators.
The Internal Auditor and the Heads of Departments and Sections/Units within the Authority
who have the responsibility for development and maintenance of internal control system do
review the effectiveness of the system of internal control, and supplement it by comments
made by the statutory auditors in their management letter.
20
I have been advised on the implications of the results of my review of the effectiveness
of the system of internal control by the Board of Directors, Board Audit Committee and a
plan to address weaknesses to ensure continuous improvement of the system is in place.
Eng.R.S. Koya
Managing Director
3rd May, 2012
21
POTABLE WATER
TZS 789:2003
REPORT OF THE DIRECTORS
The Directors have the pleasure in submitting their report, together with the audited
financial statement of the Authority for the year ended 30th June, 2011.
1.0
ESTABLISHMENT
The Arusha Urban Water Supply and Sewerage Authority was established under the
Waterworks Act CAP 272 as per the Government Notice No. 371 published on 25th
July 1997. The Waterworks Act has been repealed by Water Supply and Sanitation
Act 2009 Where as section 60 (2) (b) save rules and regulation to be deemed to
continue in force. In view of that and subject to section 3 (1) of the Waterworks
Regulations, the Minister for Water declared Arusha Urban Water Supply and
Sewerage Authority an autonomous body with effect from 1st January, 1998 as
amended by Parliament Act No. 8 of 1997 of the United Republic of Tanzania
thereby revoking Government Notices No. 254, 478 and 113 of 1949, 1962 and
1975 respectively made by the legislative body.
The Authority also operates according to:
(i) Water Supply and Sanitation Act 2009
(ii) Waterworks Rules 1997
(iii) Waterworks Regulations 1997
(iv) Memorandum of Understanding between MoW, EWURA and AUWSA(including
Operational Guidelines)
(v) Public Finance Act No. 6 of 2001 (Revised 2004)
(vi) Public Procurement Act 2004 and its Regulations(2005)
(vii) EWURA Act CAP 414
The Operational Guidelines have been prepared to guide the Authority on the
framework to operate. The guidelines deal with personnel, financial, commercial,
technical, purchases, reporting and monitoring mechanisms as well as other
general matters.
2.0
PRINCIPAL ACTIVITIES:
The overriding objective for which the AUWSA was formed is the provision of clean
and safe water and collection, treatment and disposal of waste water in Arusha
City. As per the Memorandum of Understanding (MoU) between the Authority and
the Government of the United Republic of Tanzania, other objectives include:
•
To ensure that water within acceptable standards both in terms of quality and
quantity is continuously supplied to the urban residents.
22
•
•
•
•
•
•
•
•
•
•
•
•
3.0
To set water and sewerage tariffs that ensures continuous supply of water and
its proper disposal which do not marginalize certain sections of individuals in
the society.
To develop and maintain waterworks connected with the supply of water to
the respective areas of operations.
To promote the conservation and proper use of water resources.
To advise the government in the formulation of policies relating to development
and conservation of water.
To educate and provide information to persons on respect of whom the
Authority has been established, on matters related to public health aspects
of water supply, conservation and related matters.
To liaise with the Municipal Authorities on matters related to water supply
and water disposal and on preparation and execution of plans geared at
expansion of these services.
To provide amenities or facilities which the Authority considers necessary or
desirable for persons who use the water and the facilities provided
To collect fees from customers for water supplied and waste water collected
To construct and maintain sewerage disposal works on any public land acquired
or which has otherwise been lawfully appropriated for that purpose.
To ensure that there exist harmonious relationship between the Authority and
the Regional, Municipal Authorities and other institutions within the area the
Authority is established.
To conserve the environment within the areas of operation of the Authority
with a view to ensuring that the environment is not arbitrarily polluted.
To carry out the functions and responsibilities of the Authority with due
diligence.
A. COMPOSITION OF THE BOARD OF DIRECTORS
The Directors of the Authority at the date of this report all of whom have saved
throughout the year are as follows:
S/N
i.
ii.
iii.
iv.
v.
vi.
vii
viii
ix.
Name
Mr. Felix C. Mrema
Mrs. Lydia M. Joachim
Mrs. Evelyne P. Itanisa
Eng. Amani B. Mafuru
Mr. Herbert N. Illembo
Mr. Joshua K. Kileo
Mr. Zephania Darema
Mr. Estomih F. Chang’ah
Eng. Ruth S. Koya
Status Chairman
Member Member Member Member Member Member
Member
Secretary 23
Nationality
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Tanzanian
POTABLE WATER
TZS 789:2003
With the exception of Eng. Ruth S. Koya, the Acting Managing Director, all other
Directors are non executive
B. COMMITTEES OF THE BOARD
Audit Committee
i. Mr. Joshua K. Kileo
ii. Mrs. Evelyne P. Itanisa
iii. Mr. Zephania Darema
iv. Mr. Herbert N. Illembo
vi. Eng. Ruth S. Koya
vii. Mr. M.B. Ngatunga
Chairperson
Tanzanian
Member Tanzanian
Member Tanzanian
Member
Tanzanian
Member Tanzania
Internal Auditor – Secretary
The committee reports to the full Board. It is required to meet on quarterly basis
during the year. Actual meetings held in 2010/2011 were six.
Matters discussed included:
i. Quarterly internal audit reports
ii. External auditors reports and financial statement
iii. Recommendations to the full board for approval of writing off of Bad Debts
Finance, Planning and Appointment Committee
i. Mr. Felix C. Mrema - Chairman
ii. Mrs. Lydia M. Joachim
- Member iii. Mr. Estomih F. Chang’ah - Member iv. Eng. Aman Mafuru
- Member v. Eng. Ruth S. Koya - Member vi Mr. M.B. Ngatunga
- IA -
-
-
-
-
-
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Tanzanian
Ag. Secretary
The committee reports to the full Board. It is required to meet when needs arises.
During the year 2010/2011, the committee held five meetings.
Matters discussed included:
• Recommendation to the full Board for approval of the Annual Budget
• Review of Budgets and Financial performance
• Approval of Mid year review (Reallocation of Fund/Supplementary Budget)
• Conducted Interview for appointments to the post of Salary scale of AWA 9
and above:
• Firing/Terminating services of Employees having salary scale of AWA 9 and
above.
4.0
DIRECTORS’ RESPONSIBILITIES ON THE FINANCIAL STATEMENTS
The Directors are required, under section 28(1) of the Legislation and Operations
Guidelines 1998 for Urban Water and Sewerage Authorities, to prepare financial
24
statements for each financial period that give a true and fair view of the state of
affairs of the Authority and of the results of operations. The Directors are also
required to ensure that the Authority keeps proper accounting records that disclose,
with reasonable accuracy, the financial position of the Authority. The Directors are
also responsible for safeguarding the assets of the Authority.
The Directors accept responsibility for the annual financial statements, which have
been prepared using appropriate accounting policies supported by reasonable
and prudent judgements and estimates, in conformity with International Financial
Reporting Standards (IFRS). The Directors are of the opinion that the financial
statements give a true and fair view of the state of the financial affairs of the
Authority and the result of operations. The Directors further accept responsibility for
the maintenance of accounting records that may be relied upon in the preparation
of financial statements, as well as adequate systems of internal financial control.
Nothing has come to the attention of the Directors to indicate that the Authority
will not remain as a going concern for at least twelve months from the date of this
statement.
5.0 MANAGEMENT
The Management of the Authority is under the Managing Director and is organised
in the following Departments:
• Technical Department:
• Finance and Administration Department:
• Customer Service Department.
Four support Units directly report to the Managing Director. Theses are:
• Internal Audit Unit – Administratively reports to the Managing Director:
functionally reports to the Audit Committee.
• Procurement Management Unit- In line with Public Procurement Act:
• Public Relation Officer : As per MoU (MoW):
• Information and Communication Technology Unit: As per MoU (MoW)
6.0
PERFORMANCE REVIEW
A. OPERATING RESULTS:
• Water produced increased to 14,178,703.59m3 compared to 13,685,357.34m³
of the last year.
• Billing was made on 9,583,291.93m³ compared to 9,559,118 m³ during the
previous year.
• Billing made increased by Tsh. 174,967million (an increased of 4.6%) compared
to the previous year.
25
POTABLE WATER
TZS 789:2003
• Billing efficiency was recorded at 66.36% compared to 69.9% of the previous
year.
• New Water Connections were 2,634 compared to 1,893 during last reporting
period.
• The water quality compliance was 100%.
• The revenue collection amounted to Tsh. 4,331Bn compared to Tsh. 4,193Bil for
the last period. This represents a revenue collection efficiency of 92% against
the water billed.
• Staff benefits stood at Tsh. 1.135billion.
• Cost of sales stood at Tsh. 1.662Bn.
• Other operating costs claimed Tsh. 1.391billion.
• Cash and Cash equivalent was Tsh. 569.4 million.
B. ATTAINMENT IN PHYSICAL TERMS
• Water Production
Produced water during the year 2010/2011 reached 14,178,703.59m3
of treated water as compared to 13,685,357.34 m3 produced in the year
2009/2010. The reasons for the decrease being unfavorable weather condition
and insufficient electricity supply, Water billings to users were made on
9,583,291.93m³ as compared to 9,559,118 m³ billed in the previous year.
• Sewerage Connections
As at the close of the financial year, there were 4,047 sewer connections as
compared to 4,001 connections in the previous year. The sewerage system
now covers 17 % of the Municipal population.
7.0
7.1
ID.NO
MINISTERIAL PERFOMANCE TARGETS
Water Supply
Performance Indicator
Target
2010/2011
Actual Status
June 2011
100
97.5
Target
2010/2011
Actual Status
June 2011
90
79
24.09
39.79
Remarks
Protection of the user interests
User service accessibility
PW 1 (a) Proportion of population living within
the water network (%)
ID.NO
Performance Indicator
PW 1 (b) Proportion of population served with
water (%)
PW 2
Ratio of the total number of connection
to the total number of households %
PW 3
No. of public water kiosks
105
105
PW 4
Average hours of supply
24
18
26
Remarks
Quality of service supplied to users
PW 5
PW 6
Water quality compliance (%)
3.1 E-coli
100
100
3.2 Turbidity
100
100
Response to written complaints (%)
100
100
Sustainability of the Operator
Operator’s financial and economic sustainability
PW 7
Metering ratio (%)
100
100
PW 8
Unaccounted for water (%)
20
30.98
PW 9
Payment of electricity bills in %
100
100
PW 10
Revenue collection efficiency (%)
> 90
94.38
PW 11
Working ratio
< 0.8
0.98
PW 12
Operating ratio
< 0.9
0.92
PW 13
Contribution to investment as percentage
of total expenses (%)
20
16
75
80.08
Operator’s Cost Indicators
PW 14
Personnel
expenditure
produced (Tsh/m3)
per
water
PW15
Personnel expenditure as % of collection
from water, sewerage bills and related
services (%)
< 30
30.00
PW16
Administration costs per m3 produced
(Tsh/m3)
45
71.54
5.3
5.3
Operator’s infrastructural sustainability
PW 17
Treated water storage capacity (hours)
PW 18
Water Mains rehabilitation (Number per
year)
393
PW 19
Water service connections rehabilitation
(Number per year)
7,512
Operator’s operational sustainability
PW 20
29
Mains failures (nr/km/year)
Operator’s human resource Efficiency
PW 21
Personnel/1000 (W&S) connections
≤6
6
PW 22
Total revenue per staff per year (Million
Tshs/staff)
33
22.9
0.15
0.24
Environmental sustainability
PW 23
Energy consumption (kWh/cu.m)
27
POTABLE WATER
TZS 789:2003
7.2 Sewerage
IND.NO
Name of Indicator
Target
2010/2011
Actual Status
June 2011
Remarks
Protection of the user interests
User service accessibility
PS 1
Proportion of population connected with
sewerage network (%)
30
17
PS 2
Number of people sensitized and trained
in sanitation
N/A
N/A
PS3
Number of latrine
household levels
N/A
N/A
PS 4
Number of households with connection
to sewerage
3,563
3,184
100
100
constructed
at
Quality of service supplied to users
PS 5
Response to written complaints (%)
Sustainability of the Operator
Operator’s financial and economic sustainability
(are combined with water)
Operator’s infrastructural sustainability
PS 6
Treatment of collected wastewater (%).
100
100
PS 7
Sewerage Mains rehabilitation (Number
per year) in meters
5
PS 8
Sewerage service connection rehabilitation
(Number per year)
8
Operator’s operational sustainability
PS 9
5,000
4,695
2.0
4.0
8.1 BOD5 compliance (%)
> 99
0
8.2 COD compliance (%)
> 99
0
N/A
N/A
> 99
99
Sewer blockages (nr/100km of sewers/
year)
PS 10 Sewer collapses (nr/100km of sewers/
year)
Environmental Sustainability
PS 11 Wastewater quality compliance
PS 12 Energy consumption (kWh/cu.m/100)
PS 13 Safe disposal of sludge (%)
8.0 SOLVENCY
As at 30th June, 2011 current assets stood at Tzs 2,383 Million where as current
liabilities were Tzs 473 Million. The current assets exceeded current liabilities by Tzs
1,910 Million. The Directors are of the opinion that the Authority was solvent as at
30th June, 2011 as the current ratio was 3:1 indicating that, the Authority is still able
to meet its liabilities as they fall due.
28
9.0 DIRECTORS INTEREST
No Director of the Arusha Urban Water Supply has any personal interest in the
Authority’s affairs that warrants disclosure in this report.
10.0 RELATED PARTY TRANSACTIONS
All Related party transactions are disclosed in notes no. 23 to the financial
statements.
11.0 DIRECTORS REMUNERATION
During the year, the Authority paid a total of Tshs. 42,383,000.00 for rendered
services as director’s fees of the Authority and members of the Board Committees.
12.0 CORPORATE SOCIAL RESPONSIBILITY
The Authority has a policy of aligning its activities with the social, economic and
environmental expectations of its stakeholders. During the reporting period,
the Authority spent a total of Tzs 26,524,000.00 on various activities including
environmental conservation which amounted to Tzs 8,877,000.00
13.0 EMPLOYEES’ WELFARE
The relationship between employees and management continued to be good. There
were no significant unresolved conflicts or complaints received by management from
the employees themselves and the TUICO workers’ representatives.
·
Gender Balance
As at 30th June 2011 the Authority had 186 employees out of whom 144
were male and 42 female. The top management team comprises 3 men and 1
women.
·
Human Resources Management
The management of Arusha Urban Water Supply and Sewerage Authority has
a well defined human resources management programs to ensure that all job
positions are occupied by well trained staff all the time. The management
further emphasis on the human resources is to maintain a manageable quantity
and quality of employees who are effective and self-motivated at work.
·
Training
When presenting its annual budget for the year 2010/2011, the Authority
set aside a sum of Tshs 136,588,055/=for staff training in order to improve
employees technical skills and hence effectiveness. Training programs have
been and are continually being developed to ensure employees are adequately
trained at all levels. All employees are accorded some form of training each
year to update skills and enhance development.
29
POTABLE WATER
TZS 789:2003
·
Medical Facilities
The Authority has entered into agreement with National Health Insurance Fund
and all Authority’s staff and their dependants are being treated under this
arrangement.
·
Financial Support
The Authority provides financial assistance e.g. mid month advances to all
employees as a short-term support. Otherwise, long-term support is provided
through AUWSA SACCOS LTD depending on the assessment as to the need,
circumstance and ability to make repayments.
·
Industrial Safety
The Authority satisfies the standards of industrial safety established by Tanzania
Bureau of Standards, also during the period under review AUWSA in conjunction
with the Occupation Safety and Health Authority conducted training to its
Employees from various Departments, an amount of Tsh 30,645,000/= was
incurred as training cost.
·
HIV/AIDS at Place of Work
The Authority has programs for educating their members regarding the HIV/
Aids pandemic. AUWSA has already formulated its own of HIV/AIDS strategy at
workplace.
·
Disabled Persons
The Authority gives equal opportunities to all people including disabled ones
for vacancies they are able to fill. Similarly under the Workmen’s Compensation
Act the Authority compensates employees who become incapacitated while in
the service of the Authority.
·
Retirement Benefits
The Authority contributes statutory deductions towards employment pension
scheme administered by the Parastatal Pension Fund, National Social Security
Fund and Public Service Pension Fund on behalf of all permanent employees.
30
14.0 POLITICAL AND CHARITABLE DONATIONS
The Authority did not make any political donations during the year. Donations
made on Charitable Organizations during the year amounted to Tsh. 28,480,404/=
and was paid in respect of the following activities:
2010/11
Tzs
Free Water Supplied to the Urban Poor
2009/10
Tzs
1,747,740
1,747,740
Construction of classrooms
NIL
NIL
Environmental Conservation
8,877,000
13,221,000
Community and Social Development
17,647,000
13,511,664
NIL
NIL
28,271,740
28,480,404
Other Public Deserving Causes
Total
15.0 CORPORATE GOVERNANCE
The Directors believe that high standards of corporate governance directly influence
the Authority stakeholders’ confidence and the management recognizes the
importance of integrity, transparency, responsibility and accountability. In so doing
the management therefore confirms that: •
The Board of Directors met regularly throughout the year,
•
They retain full and effective control over the Authority and the Management
team.
•
Different persons in accordance with the Memorandum of Understanding
hold the positions of Chairman and Managing Director.
•
The directors accept and exercise responsibility for strategic and policy
decisions, the approval of budgets and monitoring of performance,
•
They bring skills and experience from their own spheres of business to
complement the professional experience and skills of management,
•
They assure that discussions on issues of performance, policy and strategy
are informed and that debate is rigorous but constructive.
•
They bring skills and experience from their own spheres of business to
complement the professional experience and skills of the Management
team.
•
The Board appoints executive staff and further discloses that the Minister for
Water appoints non-executive directors.
•
They ensure that discussions on issues of performance, policy and strategy
are well informed and that debate is rigorous but constructive.
•
Lastly but not least, the Board of Directors has the mandate to hire and fire
all staff.
31
POTABLE WATER
TZS 789:2003
16.0 TENDER BOARD
The Authority has an established Tender Board pursuant to the Public Procurement
Act No. 21 of 2004 Section 28.
17.0 ENVIRONMENTAL MATTERS.
Environmental considerations are vital in all development projects. Sound
environmental management is a prerequisite for sustainable development. To
achieve sustainability of water projects, it is very important to ensure that water
sources are protected against; contamination and unauthorized abstraction.
While attempting to protect water sources, catchments of these water sources
should be given first priority. Development should meet the needs of present
generation, as well as future generations.
In view of the above the Authority has been participating fully in carrying out
Environmental and Social Impact Assessment study in accordance with guidelines
and procedure stipulated in the Environmental Impact Assessment and Audit
Regulations G.N. No. 349 of 2005. The mitigations are being implemented
accordingly.
18.0 FUTURE DEVELOPMENT PLANS
First and foremost, we reviewed the performance of the previous Strategic Plan. We
observed that during the previous plan a number of measures were implemented
aimed at improving our service delivery. While we take pride in a number of
achievements, we appreciate that we faced some challenges towards achieving
some of them. The analysis done during the Strategic Plan review process enabled
the Authority to plan on what was achieved while developing measures to face the
identical challenges.
Therefore, future plans are:
1. Improving meter-reading by introducing meter reading zones through staff on
accurate data capturing.
2. Sustain hand bills delivery methodology and the introduction of E-payment
concept.
3. Improve debt collection management by:
a. Outsourcing debt collection function.
b. Rescheduling debt payment to customers
4. Sustain Private Sector Participation (PSP) in construction of new water
connections in order to improve efficiency.
5. Sustain Universal metering
6. Develop and improve water sources within the new service areas.
32
7. Conduct phased implementation of re-engineering in the wellfield.
8. Train and equip the leakage detection team to combat leakages.
9. Effectively implement OPRAS.
10.Develop and implement a change management programme for all staff.
In a coordinated way with all the stakeholders and the government, the Authority
has to come up with plans which will maintain the Authority’s policy of providing
quality and sustainable services.
19.0 STATEMENT OF COMPLIANCE
The Authority complied with laws, rules and regulation and all other laws in the
Country which guaranteed smooth operation of the Authority’s business during
the year.
20.0 AUDIT MANDATE
The Controller and Auditor General is the Statutory Auditor of the Arusha Urban
Water Supply and Sewerage Authority by virtue of Article 143 of the Constitution
of the United Republic of Tanzania as amplified under Section 30(1)c of the Public
Finance Act (PFA) No. 6 of 2001 (revised 2004) and Section 32 (4) of Public Audit
Act No. 11 of 2008. However, in accordance to Section 37(5) of the Public Finance
Act and Sect. 33 of Public Audit Act. M/S SHEBRILA & CO were contracted to carry
out the audit of the AUWSA on behalf of the Controller and Auditor General.
BY ORDER OF THE BOARD
……………………………….
CHAIRMAN OF THE BOARD
………………………………….
DIRECTOR
3rd May, 2012
33
POTABLE WATER
TZS 789:2003
INDEPENDENT AUDITORS REPORT
34
35
POTABLE WATER
TZS 789:2003
STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2011
ASSETS
Notes
Non-Current Assets
Property, Plant and Equipment
Capital Work in Progress
Other Intangible Assets
Total Non-Current Assets
Current Assets
Trade and Other Receivables
Inventories
Cash and Bank Balances
Total Current Assets
Non-Current Assets Held for Sale
30.06.2010
Tzs’000’
3
4
5
13,632,535
620,481
53,777
14,306,793
13,224,328
553,321
53,441
13,831,090
6
7
8
1,261,440
552,605
569,323
2,383,368
10,800
1,085,111
554,501
694,001
2,333,613
23,762
16,700,961
16,188,465
10,994,624
2,637,878
(283,977)
13,348,525
10,994,624
2,637,878
(360,779)
13,271,723
9
Total Assets
EQUITY AND LIABILITIES
Equity Attributable to Equity Holders
Government Fund
Revaluation Surplus
Retained Earnings
Total Equity
30.06.2011
Tzs’000’
10
11
Non-Current Liabilities
Deferred Grants Income
Total Non-Current Liabilities
12
2,879,489
2,879,489
2,510,824
2,510,824
Current Liabilities
Trade and Other Payables
Total Current Liabilities
13
472,947
472,947
405,918
405,918
16,700,961
16,188,465
Total Equity and Liabilities
Notes 1 to 24 on pages 41 to 58 form part of these Financial Statements
………………..……….
Chairman
Date: 14TH December, 2011
36
…………...…………
Director
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30TH JUNE, 2011
Notes
2010/11
2009/10
Tzs’000’
Tzs’000’
Billing Revenue
14
3,963,440
3,788,473
Direct Cost
15
1,662,401
1,445,184
2,301,039
2,343,289
Gross Surplus
Other Income
16
622,818
578,339
Employees Benefits Expenses
17
1,135,394
1,180,959
Administrative Expenses
18
916,835
926,037
Other Expenses
19
352,149
372,867
379,642
9,673
Impairment on Receivables
63,612
227,844
Amortization of Intangible Assets Expenses
14,412
522
Operating Surplus
61,813
203,726
6,158
(732)
17,483
13,968
8,652
7,653
76,802
209,309
Depreciation Expenses
Other Losses and Gains
Finance Income
Finance Costs
20
Net Surplus for the Period
Other Comprehensive Income
-
Surplus on Revaluation
76,802
Total Recognized Income for the year
1,274,811
1,484,120
………………..……….
Chairman
37
…………...…………
Director
POTABLE WATER
TZS 789:2003
STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30TH JUNE, 2011
Government Revaluation
Fund
Surplus
Balance as at 1st July, 2009
Adjustments on Opening Balances
Retained
Earnings
Total
Tzs’000’
Tzs’000’
Tzs’000’
Tzs’000’
5,877,452
1,649,892
(360,779)
6,957,256
245
-
245
-
-
5,117,172
-
209,309
209,309
-
1,274,811
-
(287,070)
-
Valuation of Land forming Part of
Government Fund
5,117,172
Total Comprehensive Income
-
Revaluation Surplus
Other Net Adjustments on
Revaluation
-
Balance at as 30th June 2010
Balance as at 1st July, 2010
Total Comprehensive Income
Balance at as 30th June 2011
10,994,624
10,994,624
10,994,624
1,274,811
(287,070)
2,637,878
2,637,878
2,637,878
(151,470) 13,271,723
(151,470) 13,271,723
76,802
76,802
(74,668) 13,348,525
IAS 1 requires that the financial statements should include a statement showing either all
changes in equity or changes in equity other than those arising from capital transactions
with owners and distribution to owners. The above illustrates an approach, which presents
all changes in equity.
………………..……….
Chairman
38
…………...…………
Director
STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 30TH JUNE, 2011
2010/11
2009/10
Tzs’000’
Tzs’000’
76,802
1,484,120
379,642
9,672
14,412
522
(65,247)
(55,925)
(238)
-
-
(1,274,811)
405,371
163,578
(176,329)
330,718
1,896
33,394
Increase/(Decrease) in Trade and Other Payables
67,029
208,252
(Increase)/Decrease in Non Current Assets Held for sale
12,962
(23,762)
(94,442)
548,602
310,929
712,180
(904,135)
(410,450)
-
(261,962)
34,620
-
(869,515)
(672,412)
WSDP Funding
263,300
38,400
World Vision Funding
170,608
-
Net Cash Flow from Financing Activities (C )
433,908
38,400
Net Increase in Cash and Cash Equivalents (A+B+C)
(124,678)
78,168
Cash and Cash Equivalents at Beginning of the Year
694,001
615,833
Cash and Cash Equivalents at End of the Year
569,323
694,001
Cash Flows From Operating Activities:
Surplus for the Year
Adjustment for Non Cash Items:
Depreciation and Impairment
Amortization of Intangible Assets
Amortization of Grants
Gain on Disposal of Property Plant and Equipment
Gain on Revaluation
Operating Surplus Before Working Capital Changes
Movement for Working Capital Items
(Increase)/Decrease in Trade and Other Receivables
Decrease/(Increase) in Inventories
Cash Generated From Operations (A)
Cash Flows From Investing Activities:
Purchase of Non current Assets
Revaluation Adjustments
Proceeds From Sale of Property Plant and Equipment
Net Cash Used in Investing Activities (B)
Cash flow from Financing Activities
………………..……….
Chairman
39
…………...…………
Director
POTABLE WATER
TZS 789:2003
VALUE ADDED STATEMENT FOR THE PERIOD ENDED 30TH JUNE, 2011
Value added is the wealth created by AUWSA through the production, distribution and
selling of clean water and provision of sewerage disposal within Arusha City.
Value created from the water supply and sewerage disposal services is the excess of
gross income over the costs of production, distribution, disposal and sewerage services
purchased.
The value added statement shows the total wealth created, how it was distributed to meet
certain obligations and reward those responsible for its creation, and the portion retained
for the continued operation and expansion of AUWSA.
Below is the detailed and comparative outline
DETAILS
2010/11
2009/10
Value Added :
Tzs ‘000’
Tzs ‘000’
Billings Income
Other Income
3,963,440
3,788,473
646,457
591,176
Cost of Sales
(1,656,070)
(1,445,184)
Other Operating Expenditure
(1,323,597)
(1,534,397)
TOTAL VALUE ADDED
1,630,230
1,400,068
Value Allocated :
To Expansion and Growth :
To Employees
Depreciation
Retained Surplus
TOTAL VALUE ALLOCATED
494,837
219,109
1,135,393
1,180,959
394,054
10,195
76,802
208,914
1,606,249
1,400,068
189
186
Gross Income per Employee
24,390
23,547
Wealth Created per Employee
8,626
7,527
Value Added Ratios
Number of Employees
40
NOTES TO THE ACCOUNTS
NOTE: 1
GENERAL INFORMATION
1.1 Establishment
Arusha Urban Water Supply and Sewerage Authority (AUWSA) was established under
the Waterworks Act CAP 272, now repealed by Water Supply and Sanitation Act
2009 in accordance with Government Notice No 371 published on 25th July, 1997.
Subject to Section 3 (1) of the Waterworks Regulations, the Minister responsible for
Water declared Arusha Urban Water Supply and Sewerage Authority an autonomous
body with effect from 1st January, 1998 thereby revoking Government Notices No
254 of 1949, No 478 of 1962 and No 113 of 1975 made by the legislative body.
AUWSA is incorporated in Arusha City. Its registered office and address of its principal
place of business is:
Wachagga Road,
P.O. Box 13600,
ARUSHA
1.2 Basis of Financial Statements Preparation
These financial statements have been prepared in accordance, and comply, with
International Financial Reporting Standards. The financial statements are prepared
under the historical cost convention, unless otherwise indicated in the summary of
significant accounting policies below.
NOTE: 2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Impairment of Assets
The Authority recognizes an impairment loss for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use (VIU). For purposes
of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). Assets that have an
indefinite useful life are not subject to amortization and are tested annually for
impairment and whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. Assets that are subject to amortization are
tested for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable.
41
POTABLE WATER
TZS 789:2003
(b) Trade Receivables
The Authority recognizes trade receivables initially at original invoice amount which
is fair value at transaction date. Subsequently short term receivables are measured at
cost less allowance for impairment. An allowance for impairment of trade receivables
is established when there is objective evidence that the Authority will not be able
to collect all amounts due according to the original terms of the receivables. The
amount of the allowance is recognized in the statement of comprehensive income.
(c)
Cash and Cash Equivalents
The Authority’s cash comprises cash in hand and at banks. Cash equivalents comprise
of short term bank deposits with an original maturity of three months. The carrying
amounts of these assets approximate their fair value.
(i)
Liquidity and Credit Risks
The liquidity and credit risks associated with cash and cash equivalents is
limited to the extent that the banks into which the funds have been deposited
have high credit-ratings assigned by international credit-rating agencies. Risks
associated with trade and other receivable is low as it is less likely for water and
sewerage debtors to default payment significantly.
(ii) Currency Risk
The Authority takes on exposure to effects of fluctuations in prevailing foreign
currency exchange rates on its financial position and cash flows. The Authority
sets limits on the level of exposures by currency and these limits are monitored
from time to time.
(d) Property, Plant and Equipment
All items of property, plant and equipment are initially recorded at cost. Cost
comprises of expenditure that is directly attributable to the acquisition (purchase
or construction) of the items. Subsequent costs are included in the assets’ carrying
amount or recognized as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Authority and
the cost of the item can be measured reliably. All other repairs and maintenance are
charged to the income statement during the year in which they are incurred.
Land and buildings are subsequently shown at re-valued amount (being fair value
at the date of revaluation) less any subsequent accumulated depreciation and any
subsequent accumulated impairment losses. Revaluation differences are recorded in
the revaluation reserve unless they are reversals of amounts originally accounted for
in the income statement.
42
Other items of property, plant and equipment are stated at historical cost less
accumulated depreciation and any accumulated impairment losses.
Depreciation is provided on a straight-line basis and is calculated separately for
each part of an item of property, plant and equipment with a cost that is significant
in relation to the total cost of the item. Depreciation of an asset begins when it is
available for use, i.e. when it is in the location and condition necessary for it to be
capable of operating in the manner intended by management. Depreciation of an
asset ceases at the earlier of the date that the asset is classified as held for sale in
accordance with IFRS 5 and the date that the asset is derecognized.
Applicable depreciation rates for the Authority’s property, plant and equipment
are as follows:
Buildings
Water pumps, electrical equipments,
Boreholes pipes and fittings and water
2½ %
5%
Furniture
10%
Equipment
30%
Motor vehicles, cycles, mobile machines, Computers and Accessories 20%
Workshop tools, laboratory equipments
and intangible assets
25%
Water Supply Networks, Sewerage Networks
2%
Land is not depreciated.
Major renovations are depreciated over the remaining useful life of the related
asset or to the date of the next major renovation, whichever is sooner.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate,
at each Financial Position date. No depreciation is charged if the residual value of
an item is equal to or greater than its carrying value.
(e)
Intangible assets
Acquired computer software licenses are capitalized on the basis of the costs
incurred to acquire and bring to use the specific software. These costs are amortized
over their estimated useful lives i.e. three to five years.
43
POTABLE WATER
TZS 789:2003
Costs associated with maintaining computer software programs are recognized as
an expense as incurred.
(f)
Inventories
Inventories comprises of pipes and electrical fittings, spare parts, chemicals, fuel,
stationery and other consumables. These are stated at the lower of cost or net
realizable value. Cost is determined using first-in first-out (FIFO) method. Net
realizable value is the estimated selling price in the ordinary course of business
less the costs of completion and selling expenses.
(g) Foreign Currency Transactions
Transactions in foreign currencies during the year are converted into Tanzania
shillings at rates ruling at the date of transaction. Monetary assets and liabilities
denominated in foreign currency at Financial Position date are restated in Tanzanian
shillings using the rate ruling at the financial position date. Exchange gains and
losses are dealt with in the statement of income in the year in which they arise.
(h) Provisions
The Authority recognizes provisions when it has a present legal or constructive
obligation as a result of past events, and it is probable that an outflow of resources
will be required to settle the obligation and a reliable estimate of the amount can
be made. Where the Authority expects a provision to be reimbursed, for example
under an insurance contract, the reimbursement is recognized as a separate asset
but only when the reimbursement is virtually certain.
(i)
Grants
Grants related to capital expenditure are initially credited to deferred income and
are amortized to profit or loss as the asset to which they relate is consumed.
Grants related to revenue expenditure are credited to income statement in the
same period in which the revenue expenditure to which they relate is charged.
(j)
Revenue Recognition
Revenue is recognized when sales of water, sewer disposal services and service
charges are delivered to the customers and billings made. Other incomes as shown
below are recognized as earned when the estimations and related payments have
been made:
·
Water and sewer connection and reconnection fees.
·
Other recoverable charges including materials and services.
·
Bank deposit interest income earned.
44
(k) Retirement Benefit Obligation
The staffs of Arusha Urban Water Supply and Sewerage Authority are members
of Parastatal Pension Fund (PPF), Public Service Pension Fund (PSPF) and the
National Security Social Fund (NSSF), all being state-owned pension schemes.
The funds will bear the pension obligations of the staff for the period after the
members’ retirement from active employment with the Authority. Both schemes
are contributory. Contributions with PSPF/PPF Employer contribution is 15%
while Employee contribution is 5% basing on basic salary and NSSF are 20%
whereby contribution is in the ratio of 10% employee’s gross salary and 10%
employer. The Authority’s contribution to these schemes is charged to income
statement. Employee benefits related to annual leave are accrued in the financial
statements.
(I)
Related Party Transaction
When related party transactions occur, they are disclosed as to their nature,
amounts involved between parties and a further disclosure will show whether the
transaction was carried at an arms length or not.
The disclosure requirement under this policy involves the Boards of Directors and
the Top Management.
The transactions referred to here relate to commercial transactions, loans, writeoffs and remunerations.
(m) Changes in accounting policy and disclosures
The accounting policies adopted are consistent with those of the previous financial
year except as follows:
The Authority has adopted the following new and amended IFRS and
IFRIC interpretations as of 1 January 2009.
•
IFRS 1 First-time Adoption of International Financial Reporting Standards
— Cost of an Investment in a Subsidiary, Jointly Controlled Entity or
Associate (Amendments) - not relevant to the Authority
•
IFRS 2 Share-based Payment: Vesting Conditions and Cancellations effective
1January 2009
•
IFRS 2 Share-based Payment: Group cash -settled Share-based payment
Transactions effective 1 January 2010 (early adopted)
•
IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and separate
Financial Statements (Amended) effective 1 July 2009 (early adopted)
including consequential amendments to IFRS 7, IAS 21, IAS 28, IAS 31 and
IAS 39
•
IFRS 7 Financial Instruments: Disclosure effective 1 January 2009
45
POTABLE WATER
TZS 789:2003
•
•
•
•
•
•
•
•
•
•
•
•
IFRS 8 Operating Segments effective 1 January 2009
IAS 1 Presentation of Financial Statements effective 1 January 2009
IAS 23 Borrowing Cost (Revised) effective January 2009
IAS 32 Financial Instruments: Presentation and IAS 1 Puttable Financial
Instruments and obligation arising on liquidation effective 1 January 2009
IAS 39 Financial Instruments: Recognition and measurement - Eligible Hedged
items effective 1 July 2009 (early adopted)
IFRIC 9 Re-measurement of Embedded derivatives and IAS 39 Financial
Instruments: Recognition and measurement effective for periods ending on
or after 30 June 2009
IFRIC 13 Customer Loyalty Programmes effective 1 July 2008
IFRIC 15 Agreements for the Construction of Real Estate - not relevant to the
Authority
IFRIC 16 Hedges of a Net Investment in a Foreign Operation effective 1
October 2008
IFRIC 18 Transfers of Assets from Customers effective 1 July 2009
Improvements to IFRSs (May 2008)
Improvements to IFRSs (April 2009, early adopted)
Adoption of these standards and interpretations did not have any effect on the
financial performance or position of the Authority except for IAS 23. They did
however give rise to additional disclosures, including, in some cases, revisions to
accounting policies.
The principal effects of these changes are as follows:
IFRS 2 Share- based Payment (Revised)
The IASB issued an amendment to IFRS 2 which clarifies the definition of a vesting
condition and prescribes the treatment for an award that is cancelled. The Authority
adopted this amendment as of 1 January 2009. It did not have an impact on the
financial position or performance of the Authority as no events occurred that this
interpretation relates to.
IFRS 7 Financial Instruments disclosures
The amended standard requires additional disclosures about fair value measurement
and liquidity risk. Fair value measurements related to items recorded at fair value
are to be disclosed by source of inputs using a three level fair value hierarchy, by
class, for all financial instruments recognized at fair value. In addition, reconciliation
between the beginning and ending balance for level 3 fair value measurements
is now required, as well as significant transfers between levels in the fair value
hierarchy.
46
IFRS 8 Operating Segments
The IASB issued IFRS 8 in November 2006. IFRS 8 replaces IAS 14 Segment
Reporting upon its effective date. The Authority early adopted this amendment
as of 1 January 2008. The Authority concluded that this amendment does not
have an impact on the disclosures of the Authority as the Authority has only one
operating segment.
IAS 1 Presentation of the Financial Statements
The revised standard separates owner and non owner changes in equity. The
statement of changes in equity includes only details of the transactions with
owners, with non owners changes in equity presented in a reconciliation of each
component of equity. In addition, the standard introduces the statement of
comprehensive income: it presents all items of recognized income and expenses,
either in one single statement or in two linked statements. The Authority has
selected to present one statement.
IAS 23 Borrowing Costs
The IASB issued an amendment to IAS 23 in April 2007. The revised IAS 23 requires
capitalization of borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset. The Authority’s previous policy
was to expense borrowing costs as they were incurred. In accordance with the
transitional provisions of the amended IAS 23, the Authority has adopted the
standard on a prospective basis. Therefore, borrowing costs are capitalized on
qualifying assets with a commencement date on or after 1 January 2009. During
the 12 months to 30th June 2011. Tzs 621,481 million of borrowing costs have
been capitalized on long-term construction in progress.
IFRIC 13 Customer Loyalty Programmes
IFRIC 13 requires customer loyalty credits to be accounted for as a separate
component of the sales transaction in which they are granted. A portion of the fair
value of the consideration received is allocated to the award credits and deferred.
This is then recognised as revenue over the period that the award credits are
redeemed. The Authority has concluded that the amendment will have no impact
on the financial position or performance of the Authority, as the Authority has not
entered into any such transaction.
Improvements to IFRSs
In May 2008 and April 2009 the IASB issued omnibus of amendments to its
standards, primarily with a view to removing inconsistencies and clarifying wording.
There are separate transitional provisions for each standard. The adoption of the
following amendments resulted in changes to accounting policies but did not
47
POTABLE WATER
TZS 789:2003
have any impact on the financial positioning or performance of the Authority.
IAS 7 Statement of Cash Flows: Explicitly states that only expenditure that results
in recognizing an asset can be classified as a cash flow from investing activities.
This amendment did not have impact in the presentation of the statement of cash
flows
IAS 16 Properly, Plant and Equipment: Replaces the term “net selling price”
with “fair value less costs to sell”. The Authority amends its accounting policy
accordingly, which did not result in any change in the financial position
IFRS 8 Operating Segments Information: clarifies that segment assets and
liabilities need only be reported when those assets and liabilities are included in
measures that are used by the chief operating decision maker. This amendment
did not have impact on the financial statements of the Authority.
IAS 1 Presentation of Financial Statements. Assets and liabilities classified as
held for trading in accordance for IAS 39 Financial Instruments: Recognition and
measurement are not automatically classified as current in the statement of financial
position. The Authority analyzed whether the expected period of realization of
financial assets and liabilities differed from the classification of the instrument.
This did not result in any reclassification of financial instruments between current
and non-current in the statement of financial position.
IAS 18 Revenue: The board has added guidance (which accompanies the standard)
to determine whether an entity is acting as a principal or as an agent. The features
to consider are whether the entity:
·
Has primary responsibility for providing the goods or services
·
Has inventory risk
·
Has discretion in establishing prices
·
Bears the credit risk
The Authority has assessed its revenue arrangements against these criteria and
concluded that it is acting as principal in all arrangements. The revenue recognition
accounting policy has been updated accordingly.
IAS 23 Borrowing Costs: The definition of borrowing costs is revised to consolidate
the two types of items that are considered components of ‘borrowing costs’ into
one - the interest expense calculated using the effective interest rate method
calculated in accordance with IAS 39. The Authority has amended its accounting
policy accordingly which did not result in any change in its financial position.
48
IAS 36 Impairment of Assets: When discounted cash flows are used to estimate
‘Fair value less cost to sell’ additional disclosure is required about the discount
rate, consistent with disclosure required when the discounted cash flow are used
to estimate ‘value in use’. This amendment had no immediate impact on the
financial statements of the Authority because the recoverable amount of its cash
generating units currently estimates using Vales in use’.
The amendment clarified that the largest unit permitted for allocation goodwill,
acquired in a business combination, is the operating segment as defined in IFRS 8
before aggregation for reporting purposes. The amendment has no impact on the
Authority.
AS 38 Intangible Assets: Expenditure on advertising and promotional activities
is recognized as an expense when the Authority either has the right to access the
goods or has received the service. This amendment has no impact on the Authority
because it does not enter into such promotional activities.
Other amendments resulting from improvements to IFRS to the following standards
did not have any impact on the accounting policies, financial positioning or
performance of the Authority:
•
IFRS 2 Share-based Payment
•
IFRS 5 Non-Current Asset held for sale and Discontinued Operations:
•
IFRS 7 Financial Instruments: Disclosures
•
IAS 8 Accounting Policies, Change in Accounting Estimates and Error
•
IAS 10 Events after the Reporting Period
•
IAS 19 Employee Benefits
•
IAS 20 Accounting for Government Grants and Disclosures of Government
Assistance
•
IAS 27 Consolidated and Separate Financial Statements
•
IAS 28 Investments associates
•
I AS 31 Interest in Joint Ventures
•
IAS 34 Interim Financial Reporting
•
IAS 38 Intangible Assets
•
IAS 40 Investment Properties
•
IAS 39 Financial Instruments: Recognition and Measurement
•
IFRIC 9 Reassessment of Embedded Derivatives
•
IFRIC 16 Hedge of Net Investment in a Foreign Operation.
49
Tzs’000’
Tzs’000’
-
Delitions
-
-
17,240
50
-
-
5,117,171 1,255,279
5,117,172 1,269,837
Charge for the
year
As at
30.06.2011
Carrying
Amount at
30.06.2011
Carrying
Amount at
30.06.2010
31,798
31,798
-
-
As at
01.07.2010
Depreciation
5,117,171 1,287,077
-
Transfers From
CWIP
As at
30.06.2011
5,117,171 1,269,837
Buildings
Land
Addition
As at
01.07.2010
Cost/Valuation Description
-
-
20,957
11,757
11,334
423
75,143 213,089
90,108 222,712
8,950
8,791
159
-
-
452,907
73,281
73,621
26,837
25,132
1,705
452,907
353,685
88,422
88,422
-
442,107
- (10,800)
-
25,472
74,986
99,058 234,469 100,458
-
-
23,756
75,302 213,512
Tzs’000’ Tzs’000’ Tzs’000’ Tzs’000’
49,419
128,072
17,236
17,236
-
145,308
-
-
95,889
49,419
Tzs’000’
Tzs’000’
Tzs’000’
Tzs’000’
Tzs’000’
Total
(22,834)
-
325,772
-
38,559
-
-
180,433
44,086
(33,634)
218,992
602,485
53,945
49,385
4,560
53,968
53,968
-
66,720
66,720
-
389,314
379,642
9,672
-
135,304 2,068,390 2,659,831 1,109,956 13,224,329
157,761 2,321,943 2,644,422 1,267,761 13,632,535
29,681
26,856
2,825
187,442 2,375,888 2,698,390 1,334,481 14,021,849
-
-
49,313
138,129 2,072,950 2,659,831 1,109,962 13,234,006
Tzs’000’
Furniture
Comput- DistribuWater Working Motor
Mobile
Sewerage Water
and
ers
tion
Pumps
Tools Vehicles Machines
Boreholes
Fittings
Network
NOTE 3: PROPERTY, PLANT AND EQUIPMENT
POTABLE WATER
TZS 789:2003
20,044
124,143
124,143
157,647
Tzs’000’
Ilikilorit
Borehole
21,768
51
34,474
Carrying Amount: As At 30.06.2010
-
11,576
772
772
12,348
12,348
25%
Tzs’000’
2,293
3,970
723
723
-
4,693
2,400
2,293
25%
Tzs’000’
Website
-
(22,786)
22,786
Tzs’000’
1,959
1,469
490
490
-
1,959
-
1,959
25%
Tzs’000’
ARUTI
19,500
19,500
Tzs’000’
12,003
8,872
3,653
25%
3,131
522
12,525
-
24,373
24,373
Tzs’000’
2,712
2,034
678
678
-
2,712
-
2,712
25%
Tzs’000’
Pastel
4,239
12,525
Tzs’000’
4,239
Tzs’000’
ARUTI - HRMS
1,082
1,082
Tzs’000’
Ilkiurei
Office
Levolosi Kimandolu
Njiro
Borehole Construction Borehole Borehole Borehole
53,441
53,777
14,934
14,412
522
68,711
14,748
53,963
Tzs’000’
Total
620,481
286,902
(218,992)
552,571
Tzs’000’
Total
Other Intangible Assets comprise computer application software packages acquired in the past and still in use by the Authority. When
acquired they were treated as tangible assets. Under IFRS they are de-recognized as tangible assets and recognized as ‘other Intangible
assets’ and amortized over its useful economic period.
25,856
8,618
8,618
-
34,474
-
34,474
25%
Tzs’000’
425,376
255,484
169,892
Tzs’000’
WSDP
SBM Bill
-
(38,559)
38,559
Tzs’000’
Daraja
Mbili
Sewerage
Perfect Bill
Carrying Amount: As At 30.06.2011
As At 30.06.2011
Amortization for the year
Amortization As At 01.07.2010
As At 30.06.2011
Addition
Cost Valuation as at 01.07.2010
Percentage of Amortization
Description
-
1,724
(157,647)
Tzs’000’
Tzs’000’
-
WSDP
AUWSA
Kiranyi
Borehole
NOTE 5: OTHER INTANGIBLES ASSETS
As at
30.06.2011
Addition
Transfers
As at
01.07.2010
Description
NOTE 4: CAPITAL WORK IN PROGRESS
POTABLE WATER
TZS 789:2003
NOTE: 6
30.06.2011
Tzs’000’
30.06.2010
Tzs’000’
TRADE AND OTHER RECEIVABLES
Trade Receivables
Other Receivables
1,248,675
76,377
1,290,533
58,743
Less. Provision for Impairment
1,325,052
63,612
1,349,276
264,165
TOTAL
1,261,440
1,085,111
A provision for impairment has been made for estimated irrecoverable
amounts from trade receivables. Through aging the receivables provision
for impairment has been substantially determined by reference to the
time the receivables have been outstanding
Movement in the Provision for Impairment of Receivables during
the year.
Balance at 1st July 2010
Additions During the Year
Sub- Total
Less: Amount Written Off
264,165
63,612
110,818
227,844
327,777
264,165
338,662
74,497
Balance at 30th June 2011
63,612
264,165
The Directors consider that the carrying amount of trade and other
receivables approximates their fair value
NOTE:7
INVENTORIES
Pipes and Fittings
Building Materials
Electrical Items
Water Chemicals
Spare Parts
Stationeries
Fuel and Lubricants
Sewerage Materials
Other Consumables
269,679
3,998
6,625
54,901
79,306
32,350
12,552
92,136
1,058
TOTAL
552,605
52
300,175
2,246
6,241
18,090
93,448
35,654
20,251
77,057
1,339
554,501
NOTE:8
NOTE: 9
NOTE: 10
CASH AND BANK BALANCES
Cash in Hand
CRDB Revenue Account
CRDB Expenditure Account
Foreign Account - Standard Chartered
Investment Account - Standard Chartered
Capital Account (WSDP)
760
64,374
33,525
25,667
367,773
77,224
TOTAL
569,323
NON CURRENT ASSETS HELD FOR SALE
Toyota L/C Hard Top SU 35258
Toyota L/C Hard Top SU 35235
Nissan Patrol S/W SU 35250
30.06.2011
Tzs’000’
-
838
114,886
13,506
19,320
476,943
68,508
694,001
30.06.2010
Tzs’000’
8,000
8,000
7,762
Land Rover 110 TDI 300 SU 32536
10,800
TOTAL
10,800
23,762
GOVERNMENT FUND
The amount of Tzs (‘000’)10,994,624 represents value of total assets
taken over from the Government of the United Republic of Tanzania at
the inception of Arusha Urban Water Supply and Sewerage Authority.
NOTE: 11
RETAINED EARNINGS
Balance Brought Forward
Add: Surplus During the Year
(360,779)
76,802
(570,088)
209,309
Balance Carried Forward
(283,977)
(360,779)
53
54
30
As at 30.06.2010
51,093
47,443
25,550
21,900
3,650
72,993
-
72,993
Tzs’000’
Boreholes
67,710
67,710
68,432
68,432
-
136,142
-
136,142
Tzs’000’
WIP
Inventories
2,126,512
2,075,110
494,965
443,563
51,402
2,570,075
-
2,570,075
Tzs’000’
Supply
Water
27,083
20,312
6,771
6,771
27,083
-
27,083
Tzs’000’
Daraja Mbili
TASAF
238,400
501,700
-
-
501,700
263,300
238,400 Tzs’000’
(WIP)
WSDP
-
167,196
3,412
3,412
170,608
170,608
Tzs’000’
Project
Moshono
2,510,828
2,879,489
599,237
533,990
65,247
3,478,726
3,044,818
433,908
Tzs’000’
Total
Government grants represent assets and other expenditure funded by the Government of the Federal Republic of Germany and the
World Bank under Water Supply Rehabilitation Programmes and Sewerage Project before and after inception of the Authority. The grants
are recognized as income over the periods necessary to match them with the related costs, which are intended to compensate on a
systematic basis.
18
As at 30.06.2011
95
12
Amortization
As at 01.07.2010
During the year
107
125
As at 30.06.2011
As at 30.06.2011
-
Addition for the year
125
As at 01.07.2010
Tzs’000’
Cost
and Fittings
Furniture
Description
NOTE: 12 DEFERRED GRANTS INCOME
POTABLE WATER
TZS 789:2003
NOTE:13
TRADE AND OTHER PAYABLES
Accrued Expenses
Trade Payables
116,346
356,601
TOTAL
472,947
107,230
298,688
405,918
Trade Creditors and accruals principally comprise amounts outstanding
for trade purchases. The Directors consider that the carrying amounts of
trade payables approximate their fair value.
NOTE: 14
NOTE: 15
BILLING REVENUE
Water Consumption
Sewerage Disposal Charges
Service Charges
2010/11
Tzs’000’
3,566,508
221,768
175,164
2009/10
Tzs’000’
3,364,412
266,069
157,992
TOTAL
3,963,440
3,788,473
568,657
40,567
516,990
280,852
255,335
463,655
24,914
438,094
340,495
178,026
1,662,401
1,445,184
OTHER INCOME
New Sewer Connection Fees
New Water Connection Fees
Water Reconnection Fees
Materials/Services Rendered
Other Recoverable Charges
Amortization of Grants
Tender Document
Broken Meters
Bad Debt Recovery
Illegal Water Consumed Charges
Miscellaneous Receipts
4,079
403,152
44,401
11,651
10,740
65,247
2,930
7,836
23,441
44,888
4,453
2,106
364,892
51,839
8,924
18,118
55,924
2,385
4,071
7,336
55,329
7,415
TOTAL
622,818
578,339
DIRECT COST
Water Production Expenses
Sewerage Expenses
Maintenance and Repair Expenses
Water Distribution Expenses
Direct Labour Costs
TOTAL
NOTE: 16
55
POTABLE WATER
TZS 789:2003
NOTE: 17
EMPLOYEES BENEFITS EXPENSES
Basic Salaries
Gratuity
Employer’s PPF/NSSF Contributions
Wages
Over Time/Lunch Allowance
Traveling on Leave
Medical Expenses
Hardship Allowance
Acting Allowance
Car Maintenance Allowance
Motisha (Bonus)
Staff Terminal Benefit
Responsibility Allowance
TOTAL
NOTE: 18
ADMINISTRATIVE EXPENSES
Land Rent and Rates
Postage, Telephone, E-mail and Mobile
Phone
Insurance
Office Expenses
Fumigation and Fire Fighting Equipment
Training Expenses
Burial Expenses
Traveling on Duty
Computer Expenses
Uniforms
Electricity for Office and Residential
Houses
Workers Council
Management Meetings
Function All Workers
Commission Payable
MD Hospitality
Budget, Annual Accounts Preparation
Service Delivery Targets Cost (PAO)
56
2010/11
Tzs’000’
2009/10
Tzs’000’
653,294
1,287
95,480
5,928
56,963
59,733
57,685
17,490
15,649
42,208
64,070
31,366
34,241
651,903
4,270
112,674
8,754
62,952
54,102
106,629
15,964
13,430
43,992
55,761
17,258
33,270
1,135,394
1,180,959
2010/11
Tzs’000’
3,927
2009/10
Tzs’000’
2,668
85,102
49,240
34,645
3,218
94,128
12,372
79,782
50,404
36,958
91,515
47,392
38,131
109,443
13,389
61,781
46,873
11,682
21,664
21,525
7,541
15,769
9,653
37,755
12,382
1,989
22,635
35,926
6,319
15,585
10,602
26,408
12,896
17,860
NOTE: 19
Printing and Stationeries
City Service Levy
City Car Parking Fees
Organization Manual
AUWSA Committee Meetings
HIV/Aids Measure
Retirement Gift
Revaluation Expenses
Procurement Management Unit
Board Farewell Expenses
Board Meeting Expenses
Outfit Allowances
Road Licenses
54,933
11,963
5,688
43,600
160
4,188
19,946
30,003
164,437
600
3,263
66,699
11,404
3,981
10,888
40,959
330
2,000
10,101
25,380
181,422
1,768
TOTAL
916,835
926,037
2010/11
Tzs’000’
2009/10
Tzs’000’
64,443
7,896
2,896
25,221
10,131
21,286
26,611
560
17,647
8,877
30,125
18,600
7,850
42,383
6,144
17,082
1,595
39,902
2,900
66,267
9,758
1,732
31,459
9,605
25,201
22,073
9,917
13,512
13,221
23,478
18,590
6,410
40,287
2,450
35,778
1,115
4,000
38,014
-
352,149
372,867
OTHER EXPENSES
Public Relations and Advertisement
News Paper and Periodicals
National Monument Roundabout
Entertainment Expenses
Nane nane Exhibitions
Maji Week
May Day
Annual AUWSA General Meeting
Other Donation
Mazingira Expenses
Professional Fees
Audit fees
Audit Expenses
Directors Fees
Debt Collection
Other Corporate Expenses
Software Annual Support
Legal Fees
EWURA Fees
Student Field Practical Expenses
TOTAL
57
POTABLE WATER
TZS 789:2003
NOTE: 20
FINANCE EXPENSES
Bank charges
Bank Interest Charges
6,918
1,734
6,287
1,366
TOTAL
8,652
7,653
NOTE: 21
PROVISION FOR CORPORATE TAX
No provision has been made in these accounts. The Authority, being a
public utility entity, is exempted from an obligation to pay income tax
and all other taxes. However no specific tax exemption was issued to the
Authority by the Minister for Finance during the year under review.
NOTE: 22
CONTINGENT LIABILITIES
The Management certifies that there were no contingent liabilities as at
30th June 2011
NOTE: 23
NOTE: 24
DIRECTORS’ AND TOP MANAGEMENT REMUNERATION
Directors Fees
Top Management Remuneration
2010/11
Tzs’000’
42,383
105,679
2009/10
Tzs’000’
42,087
106,091
TOTAL
148,062
148,178
COMPARATIVE FIGURES
The previous year’s figures have been regrouped wherever considered
necessary to facilitate comparison with the current year figures.
BY ORDER OF THE BOARD
……………………………….
CHAIRMAN OF THE BOARD
April, 2012
58
ACKNOWLEDGEMENT
The Board of Directors and Management of the Arusha Urban Water Supply and
Sewerage Authority would like to thank all those who assisted in the preparation of this
annual report, in particular the principal auditors, CONTROLLER AND AUDITOR GENERAL
and the SHEBRILA & CO, who actually did the delegated work, various stakeholders as
well as employees of the Authority. We also wish to thank our designers and printers of
this report, Ms Penplus Ltd.
Mr. F.C. Mrema
BOARD CHAIRMAN
3rd May, 2012
59
POTABLE WATER
TZS 789:2003
60
Wachagga Road, P.O. Box 13600,
Tel.: 027-2504163/2506124;
Fax: 027-2504163, 2548981
Toll free Nos: 0713-800671, 0767-145214 and 0785-555139
E-mail: [email protected] and [email protected] ;
Website: www.auwsa.or.tz
ARUSHA - TANZANIA

ARUSHA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY

Transcription

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THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE