Tanzania Cotton Board Annual Report And Accounts

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REPORT OF THE CONTROLLER AND AUDITOR GENERALAnnual Report and Accounts for the year ending on 30 th June 2010REPORT OF THE CONTROLLER AND AUDITOR GENERALON THE FINANCIAL STATEMENTSOF TANZANIA COTTON BOARD FOR THE YEARENDED 30 TH JUNE 2010I have audited the accompanying financial statements of Tanzania Cotton Board which comprise thestatement of financial position as at 30 June 2010, Statement of comprehensive income, statementof Changes in Equity and Statement of cash flows for the year then ended and summary of significantaccounting policies and other explanatory notes set out from pages 13 to 41 of this report.Directors’ Responsibility for the Financial StatementsThe Board of directors of Tanzania Cotton Board is responsible for preparation and fair presentationof these financial statements in accordance with International Financial Reporting Standards. Thisresponsibility includes designing, implementing and maintaining internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error; selecting and applying appropriate accounting policies; and makingaccounting estimates that are reasonable in the circumstances.Responsibilities of the Controller and Auditor GeneralMy responsibility as an auditor is to express an independent opinion on the financial statementsbased on the audit. The audit was conducted in accordance with International Standards on Auditing(ISA), International Standards of Supreme Audit Institution (ISSAIs) and such other audit proceduresI considered necessary in the circumstance. These standards require that I comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.An Audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statement. The procedures selected depend on the auditor’s judgment, includingthe assessment of the risks of material misstatement of the financial statements, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant tothe Tanzania Cotton Board preparation and fair presentation of the financial statements in orderto design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Tanzania Cotton Board internal control. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonablenessof accounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.In addition, Sect.10 (2) of the PAA No 11 of 2008 requires me to satisfy myself that the accountshave been prepared in accordance with the appropriate accounting standards and that; reasonableprecautions have been taken to safeguard the collection of revenue, receipt, custody, disposal, issueand proper use of public property, and that law, directions and instruction applicable thereto havebeen dully observed and expenditure of public monies have been properly authorized.Further section 44(2) of the Public Procurement Act No.21 of 2004 and Reg.No.31 of the PublicProcurement (Goods, Works, Non-consultant services and Disposal of Public assets by Tender)Regulation of 2005 requires me to state in my annual audit report whether or not the auditee hascomplied with the provisions of the Law and its regulations.I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis formy audit opinion.22
STATEMENT OF COMPREHENSIVE INCOMEAnnual Report and Accounts for the year ending on 30 th June 2010Basis of opinionI could not get strong evidence and confirmation from farmers to support payment of TZS 2billmade by the Board through cotton buyers as subsidy for cotton bought at TZS 360 per kilogram atthe beginning of cotton season during the year under review. Therefore, the amount stated in thefinancial statement as cotton subsidy payable to farmers may be understated.Qualified OpinionIn my opinion, except for the matters referred to above, the financial statements present fairly inall material respects the financial position of the Tanzania Cotton Board as at 30 th June 2010, itsfinancial performance and cash flows for the year then ended in accordance with the InternationalFinancial Reporting Standards and the Cotton Industry Act, 2001.Emphasis of MatterI draw attention to the Board for a need to conduct full investigation to establish actual cotton subsidyamount paid to farmers and the real outstanding balance to be paid.Report on Compliance with the Procurement LegislationIn view of my responsibility on the Procurement legislation, and taking into consideration theprocurement transactions and process I reviewed as part of this audit, I state that Tanzania CottonBoard has to great extent complied with the requirements of the Public Procurement Act No. 21 of2004 together with its related Regulations save lack of Procurement Management Unit.23
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Tanzania Cotton Board Annual Report And Accounts

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