REPUBLIC OF KENYA Telephone: +254-20-342330 P.O. Box 30084-00100 Fax: +254-20-311482 E-mail: oag@oagkenya.go.ke NAIROBI Website: www.kenao.go.ke OFFICE OF TfE AUDITOR-GENERAL ACEIlDA CR 5798/2017/2018 (28) 2 December 2018 The Vice Chancellor Jaramogi Oginga Odinga University of Science and Technology P. O. Box 210-4601 BONDO Dear Sir, REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF AFRICA HIGHER EDUCATION CENTRES OF EXCELLENCE PROJECT NO.151847 FOR THE YEAR ENDED 30 JUNE 2018 Enclosed herewith please, find two sets of the audited financial statements of the above Africa Higher Education Centres of Excellence Project No.151847 for the year ended 30 June 2018 duly certified and with the seal of the Auditor-General affixed thereon for your retention and necessary action. Please acknowledge receipt. Yours faithfully, CPA D. 0. Gichana Deputy Auditor General For: AUDITOR-GENERAL Copy to: The Principal Secretary Ministry of Education State Department for University Education Jogoo House 'B' Harambee Avenue P.O. Box 9583-00200 NAIROBI The Director External Resources Department National Treasury P. 0. Box 30007-00100 NAIROBI Encl: Promoting Accountability in the Public Sector REPUBLIC OF KENYA OFFICE OF THE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS OF AFRICA HIGHER EDUCATION CENTERS OF EXCELLENCE PROJECT NO.151847 FOR THE 17 MONTHS PERIOD ENDED 30 JUNE 2018 JARAMOGI OGINGA ODINGA UNIVERSITY AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD AND FEEDS JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY PROJECT GRANT/CREDIT NUMBER: IDA CREDIT 5798-KE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR 17 MONTHS PERIOD JUNE 30, 2018 repared in accordance with the Cash Basis of Accounting Method under the Internaiionl Public-Sector Accounting Standards (IPSAS). Contents 1 PROJECT INFORMATIONAND OVERALL PERFOMANCE................................ 2 1.1 Name and Registered Office.......................................................................................... 2 1.2 Project Inform ation........................................................................................................ 2 1.3 Project O verview ............................................................................................................ 3 1.4 B ankers............................................................................................................................ 6 1.5 A uditors........................................................................................................................... 6 1.6 Roles and Responsibilities ............................................................................................. 7 1.7 Funding Sum m ary ......................................................................................................... 9 1.8 Summary of Overall Project Performance .................................................................. 9 1.9 Summary of Project Compliance................................................................................ 10 2. STATEMENT OF PROJECT MANAGAMENT RESPONSIBILITES....................... 1 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 30 JU N E 2018............................................................................................................................ 12 5. STATEMENT OF FINANCIAL ASSETS AS AT 30 JUNE 2018................................. 13 6. STATEMENT OF CASHFLOW FOR THE PERIOD AS AT 30TH JUNE 2018 ....... 14 7. STATEMENT OF COMPARATIVE BUDGET AND ACTUAL AMOUNTS............. 15 8. NOTES TO THE FINANCIAL STATEMENTS............................................................. 16 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 1 PROJECT INFORMATION AND OVERALL PERFOMANCE 1.1 Name and Registered Office Name: ACE II Project: Africa Center of Excellence in Sustainable Use of Insects as Food and Feeds (INSEFOODS). - Objectives: The specific project objectives are to: - i. Build human resource and infrastructural capacity for research, training and technology r development and transfer on insects as food and feed; ii. Build sustainable local, regional and international partnerships and networks for research, development and training on insects as food and feed; fil' Develop a biodiversity repository of insects for food and feed in the region; and iv. Develop insect technology incubation and skills transfer hub for teaching and research. Address: The Project offices are located at Jaramogi Oginga Odinga University of Science and Technology, main campus, Bondo. Bondo - Usenge Road P.0 Box 210-40601 Bondo, Kenya Telephone: (254) 057-2058000/ 2501804 E-mail: Contacts Center Director Telephone: (254) 057-2058000/ 2501804 E-mail: Website: 1.2 Project Information Project Start Date: The Financing Agreement was signed on 4th July 2016 and the Subsidiary Grant (Performance Agreement) signed on 271 October 2016. Date of Credit Effectiveness 1st February 2017 Project End Date: The project end date is 31t December 2022 Project Manager: The Center Director: Dr. Darius Otiato Andika Project Sponsor: International Development Association (IDA)-World Bank 21 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 1.3 Project Overview Line Ministry / Ministry of Education / State Department For University Education State Department of the project Project Number: P151847 b Strategic goals of Key Strategic Objectives. the Project i. Build human resource and infrastructural capacity for research, training and technology development and transfer on insects as food and feed; ii. Build sustainable local, regional and international partnerships and networks for research, development and training on insects as food and feed; iii. Develop a biodiversity repository of insects for food and feed in the region; and iv. Develop insect technology incubation and skills transfer hub for teaching and research. Achievement of The project aims to achieve the goals through the following means: strategic goals Component 1. Strengthening Education Capacity (Excellence) and Development impact Component 2. Strengthen Research Capacity Excellence Component 3. Attracting Regional Faculty and Students Component 4. Plan for National, Regional and International Academic Partnership and Collaborations Component 5. Plan for Management and Governance Component 6. Sustainability With the following Key strategic priorities Sub -component 1.1: Develop new relevant multidisciplinary Masters and PhD curricula and regular reviews Sub - component 1.2: Benchmark and obtain accreditation for Masters and PhD Curricula Sub-component 1.3: Rehabilitate and Upgrade teaching and Learning facilities Sub-component 1.4: Set up a grants management scheme and allocate research funds Sub-component 1.5: Strengthen ICT infrastructure for teaching and learning Sub-component 1.6: Advertise and Admit students into Masters and PhD programmes Sub-component 1.7: Offer required taught courses top Masters and PhD students Sub- component 1.8: Initiate and implement regional students' exchange AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 to broaden learning experiences Sub-component 1.9: Develop Relevant short Courses for Special groups Sub-component 2.1: Scale up Masters and PhD research in key areas in insect science and food security Sub-componen .2: Expand Local, regional and international collaborations d joint research programmes Sub-component 2.3: Equip and rehabilitate research laboratories for upscaling insect rearing, processing and analysis Sub-component 2.4: Enhance faculty research capacity through staff development, exchange programmes and visits Sub-component 2.5: Recruit/Maintain qualified technical and support staff Sub-component 2.6: Conduct training workshops and seminars to broaden students' learning experience Sub-component 2.7: Develop and sign MoUs with partner institutions Sub-component 2.8: Attract, retain and retool faculty in areas relevant to the ACE Sub-component 2.9: Publish in peer reviewed journals Sub-component 2.10: Support scientific conference presentations Sub-component 2.11: Develop insect technology incubation and skills transfer hub Sub-component 3.1: Set up collaborative postgraduate programmes with other Institutions Sub-component 3.2: Set up structures for student and staff support Sub-component 3.3: Establish staff/student regional mentorship programme and regional working groups Sub-component 3.4: Develop partnerships with industry, research organization for staff and equipment Sub-component 4.1: Inception meeting and workshops to form strategic working groups for collaborative teaching and research Sub-component 4.2: Institutionalize faculty exchange programmes Sub-component 4.3: Establish and publish a high impact peer reviewed journal in insects as food and feeds Sub-component 4.4: Set up collaborative postgraduate, postdoctoral studies and fellowship programmes Sub-component 4.5: Schedule a launching and inception workshop with partners Sub-component 4.6: Participation in two (2) joint regional ACEII Meetings Sub-component 5.1: . Incorporate Management Information System (MIS) for implementing Centre's activities including a Grant Management System Sub-component 5.2: Adopt best practices in Financial Management and Procurement Sub-component 5.3: Establish sound fiduciary practices 1 Sub-component 5.4: Procure and maintain vehicles 41 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 Sub-component 5.5: Centre operations Sub-component 5.6: Centre staff Sub-component 5.7: Put in place governance framework, financial management, administrative, procurement, monitoring and evaluation procedures and systems Sub-component A: Schedule and hold implementation team meetings Sub-component 5.9: Schedule and hold M&E meetings Sub-component 5.10: Design, host and manage a custom website for the center Sub-component 5.11: Promote the Centre (marketing) Sub-component 6.1 Generate revenue from internal and external sources (student fees, government subsidies, consultancies, income generating activities from selling products and services from the Centre) Sub-component 6.2: Support faculty to submit three major grant applications Sub-component 6.3: Support PhD and MSc students to apply for small grants from international agencies to support their research, attendance and presentations at meetings Other important INSEFOODS is one of the 24 competitively selected centers at background Universities in Eastern and Southern Africa under the World Bank's information of the Eastern and Southern Africa Higher Education Centers of Excellence project Project II (ACE II). The overall objective of INSEFOODS is to achieve long-term food and nutritional security by using insects as a cost effective, reliable and sustainable source of protein and other nutrients for food and feeds. To achieve this objective, INSEFOODS' strategy is to develop and offer high quality regional and internationally accredited masters, doctoral and short courses programs in food security and sustainable agriculture with insects for food and feeds as the entry point. The educational programs will involve teaching, research, product development and commercialization, and student and staff exchanges in different disciplines related to insects as food and feeds across Africa. INSEFOODS is funded by the World Bank to the tune of US$ 6 million over a five year period 2017-2022. The Bank has disbursed US$ 1.1 million following the achievement of the Disbursement Linked Indicator (DLI) number 1 in terms of US$ 600,000 for DLI#l.1 and US$ 500,000 for DLR#1.2. The funds were credited into the JOOUST Bank Account at the Equity Bank, Bondo Branch, for the ACE II Project on 9th June 2017. The amount received in Kenya shillings was 111,595,000 (one hundred and eleven million, five hundred and ninety Curretsitatio Nfifty). Current situation INSEFOODS was designed to: 51 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30, 2018 that the project was formed to intervene a) Strengthen Education Capacity Excellence through the number of Ph.D. and Masters students trained, and the number of students who participate in short term trainings; b) Strengthen Education Capacity & Development Impact through the number of stildent and staff internships with private sector, the number of sub-regional and internationally accredited education programs, the number of students employed by industry and by universities as faculty members, and the number of students who create/start their own businesses; c) Strengthen Research Capacity Excellence through the number of internationally peer reviewed research publications in disciplines supported by the INSEFOODS Program; the number of new research collaboration in the region; the number of students employed by research organizations; and the number of patents, invention disclosures, trademarks and copyrights emanating from the project's activities; and d) Strengthen Education and Research Capacity through increased financial sustainability and demonstration of value to students and partners through the amount of externally generated revenue by the INSEFOODS Project duration The project started 2017 and is expected to run until 31 Dec 2022 1.4 Bankers Equity Bank; Bondo Branch P.0 Box 598-40601 Bondo, Kenya 1.5 Auditors Office of the Auditor General, Kenya National Audit Office, Anniversary Towers, University way, P.0 Box 30084-00100 Nairobi,Keny 61 � .. �=' ё � � о � о � � о о и о о � °` � "о � � � д '•�''' Cj ~'�' � �' � � б � и � � � � у � и й о' � �. Ф �• � й �. л � 0 �� Г� �? � � р �• и � � � л сбD й� praZ �' � � л у � � р т�1 у �• и' � 9 �С1.3 ,,.� � 'т1 О GJ � � D А т� ,I Ф' � О. � к N• й � � � �• А• � , � „к и � � • О � О � !3. �, С�! � О и � � � С � уС, � �т1 -�д �-дд Г1� �Cj �"��у�сг4у о дО�лG �� � й, о� r ,�- �: � °• �' � � iu' �. � с °�• � � � �'о.. � с�и fD � CD �° �• � " �° � � ~'�' � ~'� � � �. � � сли �•� �� ^�i °� �� �'� °й'х � ►,- и� � о � с С л"' с� � � � �* �`� С7 р• -�'е и"+ л' б б �' Г° � й °0 t1i � U�Q � �� сс�'� �,� � О° �б '�N �� �sp "а � �, 0 �-лt � й �' О � Q. � � �' С (i � р N• � L� п°� "~ л � о � �� � б � � н й' � л �' '� � 7д � � о' �-,s' � �:--��, ..ч �� _-е,.я гг � '� � й �. � � `ы�' � � си Ё__!. . о � �к � � �• о � � � О р л ryq к р, �": t'' р. � С+ �-r� �г' Р'' .. cD tr1 i�/1�Й И О � � � `,' � `� �л �� � Г� � �• � ° � � л о с�и Г� о � � � � � � � о�►ti � л� � � � � �. а. х� и .-• �-.. � сCDi � �' � �' �' �, � � 'б � �. � � Г� � � ,.л.� � � � �С�' '��" л л р й ~ � " � � � д �° � � л � �с � � л й. аг4 � �D О пQ iu' л о О � � � � � �Q., t� и си R° 'ь��г � О н�1 Q,, � � д f�i О О О N N � � � � � � � • С О О О � � '� � б б �. � О б б �'; � � � � �] �у � � 'л'� "л; � � �• �! и л �л.у � � �, � � � � к � гн�г'� r Ф л '�{-�' . „л,i ,.лу �-лs к � ��,, й б � c��D � � ь'� '� '�D ,� С `►� О т '": � �г � CL � f�- й' tlQ � ь'�.' л � р' �С... �• й• �' л � р ~• С .С�-г � �р►�# р �О�-1 О `�С ''�h �С '�' .+. ►r. `с � �С � О к и �� и b� G1 Gy by �t Q" и р,, ¢, Q. Q- О к � � с� � b �. и л � � а с� � . �_ � - " , / �>:_� С7 t7 С� С Z С1 �-д �.., �., и � � о�� к к � :-е :"� к ,►°*� � � �n � '�'� i-+ � � � { О" � �,', С С � • � G � �,�„ � й � � � � � G Z � � ~ � � л• �й' � � а д � Qa.. � � � � ° о � ° � � g °�. � " CD �' � � у � °о � � �р с �' � ° �i t� е� т б� ° ,'D к р' г�+ О А� � +п Гs""`� I � � � � � к , О� С � О О О � 'кд "кд b � � R. е`мD t�J I ..= к к �. �. с�. А� l"� ско iu �� си си си �р си ги ... ���� � й � i й � с'�и �'о � � � й• � г�о � х i- � � � � � � � � л � а о l� Р. л ��,, и i' N N c�D c�D N N � О .��. (CD й� � � г а б с�'D (dD сбD � б б � �' � � �-е к к к к к "р'� г' и. � У i __i . .•�мь. � b�'� . L"� � � , •b ►b � �д � ►�д '-д 'b � � � й й й i _ ', � � й � °'' � � � � 0 � � л с� О . �•�•к�� х qaQro�� х �а � � � �''' � � С л ". п л � '��' ' � � � С,. С '"д ср к• � �, �+ ° �г � ,,.: и t11 I ' о � б c�D � ° � � � � ° v' �• у О О• С� � и� (D ��,. р ° v' и � гг � �' � � и -а � � � � • � л � � �" � �' ;�1 � � � �• о ¢, П� С'1 � � � 5 л � �• "�д �, � � у G (D' О й �• ►д'' fËo `_' с°и � �• л v �_ � � � � � G � _i гn `, � 5 -.sr' � �'' � � � � -�sr' � � о � а , � �i, �, � р, Ок �.. � � � � � � о�' � � � Q- � � ... .... O�Q fI�Q� U�4 Uq dQ � "�s � c�D (�D (�D ,,�,�.� т О N Ф Ф �р Ф �� ° О О Ф О `-I ►°-h М � r°у� м°.r� ►°+� ,л�, О М �•*� ''*+ О � � � � `%д '' 7 �„д �+' �. � О � �. -- � л °►� р к � � (�D (�D г.✓• � .-г и '' -Cr'i' � Fc � �• (р ° � � лг ''г1 , ° О -�s �• й С � � �' ` � � �• �, (1q ,�,'s' ,.�.� �б b л ��,,, '�' с � � � � R "б � �• �• � и• � � v. i � � °- �l � Р. С� `'� '� и �, О И �� cD Ф л й b а '"'г к �s � �•- О � С А� ,' F-h и С лрΡ ° р� р � Q,, � `�-д I � - С '.�1 � О L`�. О �' � ry�q• С й '~°J' ' � ''б О � � л. � й б ОО �,г �F'''''� О � `� i � ;i i..; . � AFRICA CENTER OF EX iELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period June 30,2018 1.7 Funding Summary Jhe project duration is 5 years (from 2017 to 2022) with an approved total budget of USD 6 Million equivalent of Ksh. approx. 600](4illions as highlighted in the table below: Source of funds Donor commitment Amount received to Undrawn amount to date date 30.06.2018 30.06.2018 USD. Ksh. USD. Ksh. USD. Ksh. i) Grant 16M 60 1,115,950 111.595M 14,884.05 488 405M ii) Others 1. 16,095.9M. 1.6095M 160,959 1.8 gummary of Overall Project Performance Budget performance During the year the budget performance against actual amount stood at 43.37%. Physical Progress- Value for money achievements o Accreditation of quality Education in M.Sc. Food Security and Sustainable Agriculture and one Ph.D in Food Security and Sustainable Agriculture o Admission of 31 and 16 MSc and PhD students in MSc and PhD in Food Security and Sustainable Agriculture respectively for academic year 2018/2019 o Conducted Short Course Training on Cricket Rearing And Value Addition for 34 Farmers trained as Trainers of Trainees (ToTs) o Development and operationalization of Partnerships Agreements and Memorandum of understanding (MoUs) with key research and industry stakeholders XUAT, NMK, MMUST, Chinhoyi University of Technology, Makerere University and Sigma Feeds; o Refurbishment of project facilities including I Office block,4 Postgraduate Students lecture rooms, I Insect Processing Lab, I Insect Repository, I Wet laboratory and 1 guest house. o Published 5 peer reviewed conference papers with regional authors and I policy brief developed with regional and international authors o Conducted one faculty and PhD student exchange at Chinhoyi University of Technology, Zimbabwe and University of Ghana respectively 91 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 Generation of external funds from DANIDA to support Center staff present papers during the "Insects to Feed the World Conference" in Wuhan, China. * Retooling of Center Staff on critical areas of operation including Accountant, Procurement Officer and Intern Audit Staff * Development of Comprehensive INSEFOODS Website (www.insefoods.jooust.ac.ke) for enhanced transparency of financial management and project activities Implementation Challenges Challenge/Constraint Measures Adopted 1 Procurement processes PPRA through coordination of MoE has planned for training of project and University management staff on procurement processes 2 Attracting regional students Engagement with IUCEA and other ACE projects on students recruitment 3 Regional and International accreditation IUCEA has proposed to initiate formation of of academic programmes regional accreditation body to facilitate the process 1.9 Summary of Project Compliance There were no issues of non-compliance 10 APRfCA CENTERIOPXCELLBNCE INSVSTAPJAiULE OF50 INSKCTS AS p009£ ARES, rth and fiuancalstm~ For t7Mesusperiod Jrn. 30,20U8 2.5TATEMENT OF PROJCT aANAGAMENT RSPONSILIT[8 The Univerity Mangemnt and the P#et Centre Managmont fr Africa Centre of Excekree in SusuaMe Us of aets as Food and F .ed ACE fl-INS fD is resIol for the prepaation md prsentai of the projects financial gi a tre and fr view of th sate of afiirs of Mhe >roject for and as at the nd f the financial period ended on june 30. 201 This responsiity inchudes (1) malnaining ~dquac financial mnagement arrangemmnts and onsurig thOu onInue to bo fcve woughout the reporting (i4) maintain proper acoting recorDs, which dismose with as e aury at may time the flnmnciw position of th Pro (i) designing, implemnting and m tnal cotrob matto thepre o and fait psentation ofth fiancial m and nsuring that wha fre from material missi.emn4 wwthe due to e of fr* (~v) the aas of the Projet (v) selectin- and applyingp i aun po ad ( making accomntg esimaus that are reamonab ln in taT tnementju and t Project Centr Mana for Africa C n of Ege in teUsefOlasCS OOdU andFeds ACt NSEFOODScp reonbtf the Projct's fimnfal st ents. which have been prepand on th Cash u asis Method of financial Reporing. using ppopriatw accounting poie in accd with ttona Public Setor Accouting Standrds. lie Univerity Management and th Projet Centre management for Africa Centr, of Exelkuce in S a able Use of lsects as Food and Veed ACE II-NSEFOODS a of #he opinion that U Proe.FI«nancial samens give a true fAir view of 6he state of Projects tranetionsz~ durirs the fimaial puriod enfd Jun 30, 2018, and of dh Project's f l position as at that da. The University Cocil and the project aocounting ofrkcr for Africa Centre of Exce In Sastable Use öin as Fod and Fee ACE, 1-INSE OD furhr cotfn complet of the a (-m~ng eord inained r the Project wbh have been rolied upon in$he paparaion fthe PjOcI fiacl s ~s as well as the adequy of the systems of hnternal financtat donrls. The University ng and the Project Centre Managemnt 4Cenre of Fxc0ne ln SusiaInabk Use of lasects s Fod aod Feedt ACE cenra~ that the Projet has conpiled fully vith applcable Government r nd the lera= of external &ants, and t Project funds r*eived during tefäacil period . ible purposes for which they were intende und wer pmpury ,5 Rccoun~ for.- Tho Prjet ancial wre approved by The UOnivsy Mae and the cCt Maeent fr A^ Cart ofE n~e In Smog~abl V*e dfiec~os F~o and AMed ACEINM0WD9 20t8 and sign by them Pro.Stphn. Agong' Dr.Dariu 0. AndikaCP N litag REPUBLIC OF KENYA Telephone: +254-20-342330 P.O. Box 30084-00100 W F ax: +254-20-311482 E-mail: oag@oagkenya.go.ke NAIROBI Website: www.kenao.go.ke OFFICE OF ThE AUDITOR-GENERAL REPORT OF THE AUDITOR-GENERAL ON AFRICA HIGHER EDUCATION CENTERS OF EXCELLENCE PROJECT NO. 151847 FOR THE 17 MONTHS PERIOD ENDED 30 JUNE 2018 - JARAMOGI OGINGA ODINGA UNIVERSITY REPORT ON THE FINANCIAL STATEMENTS OPWpO174 I have audited the accompanying financial statements of Africa Higher Education Centers of Excellence Project No.151847 set out on pages 12 to 26, which comprise the statement of receipts and payments, statement of financial assets and liabilities as at 30 June 2018, statement of cash flows and statement of comparison of budget and actual amounts for the period then ended, and a summary of significant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 35 of the Public Audit Act, 2015 and the Grant Agreement No. 5798-KE dated 27 October 2016 between International Development Association(IDA) -World Bank and the Government of Kenya. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit. In my opinion, the financial statements present fairly, in all material respects, the financial position of Africa Higher Education Centers of Excellence Project No.151847) as at 30 June, 2018, and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards (Cash Basis) and comply with the terms of the Grant Agreement No. 5798-KE dated 27 October 2016. The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAls). I am independent of Africa Higher Education Centers of Excellence Project No.151847 in accordance with ISSAI 30 on Code of Ethics. I have fulfilled other ethical responsibilities in accordance with the ISSAI and in accordance with other ethical requirements applicable to performing audits of financial statements in Kenya. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Emphasis of Matter 1. Lack of Government Counterpart Funding Included in the financial statement under statements of receipts and payments is Note 8.2 transfer from International Development Association (IDA) being the amount the project received of Kshs.111,854,166.55 as grant. However, there was no evidence to prove that counterpart funding was received or budgeted for as per the Grant Agreement which had stated that counterpart funds of up to five percent of the credit (equivalent to a maximum of Report of the Auditor-General on the Financial Statements of Africa Higher Education Centers of Excellence Project No. 151847for the 17 Month Period Ended 30 June 2018 -Jaramogi Oginga Odinga University Promoting Accountability in the Public Sector US$ 900,000) over the project duration of five years to support activities of the project. No reason has been provided for this anomaly, contrary, to section 72 (6) of Public Finance Management (National Government) Regulations 2015, which states that National government shall ensure grants afe factored in the budgets and counterpart funds appropriated accordingly. Consequently, failure to receive budgeted funds may affect the operations of the project and none adherence to provisions of relevant laws may lead to the donor withdrawing Project funding. 2. Budget Execution and Performance Included in the financial statement under statement of comparative budget and actual amounts is approved budget totaling Kshs.189,109,594. However, analysis of the budget agaM1;t-actuals on activities of the project revealed that only 19% being Kshs.35, 311,379 was utilized against the budgeted amount of Kshs.189,109,594 thus 81% of the budget remained unutilized. Further, receipts during the year amounted to Kshs.115,626,464 against budget figure of Kshs.189,109594, resulting to a shortfall by Kshs73,483,130, contrary, to Section 33(f) of Public Finance Management National Government Regulation 2015, which stipulate that budget estimates shall take into account expenditure priorities which contributes to the realization of the required output and desired policy outcome. Consequently, the underutilization of budgeted amounts impacts negatively on timely implementation of project activities and financing timeliness. Key Audit Matters Key audit matters are those matters that, in my professional judgment, are of most significance in the audit of the financial statements. There were no Key Audit Matters to report in the year under review REPORT ON COMPLIANCE WITH LAWFULNESS AND EFFECTIVENESS IN USE OF PUBLIC MONEY As required by Article 229(6) of the Constitution, based on the procedures performed, I confirm that public money has been applied lawfully and in an effective way. Basis for Conclusion Investment of Project Funds Included in the financial statements under Note 8.4 is other receipts of Kshs.2,162,703 which includes finance income Kshs.2, 140,603 being earned interests as a result of on call deposits, on the project amount transferred totaling Kshs.190,000,000 from the project's bank account (Equity A/C No.0750271748376) as shown below: Report of the Auditor-General on the Financial Statements ofAfrica Higher Education Centers q1'Excellence Project No. 151847 for the 17 Month Period Ended 30 June 2018 -daranmogi Oginga 0dinga L)ziversiti 2 Date of Description Amount Amount Interest Date of Deposit Transferred Received Earned Receipt Kshs. Kshs. Kshs. 07.07.2017 Transfer of funds 70,000,000 71,198,150.65 1,198,150.65 17.10.2017 to Equity Bank A/C 0750373473716 11.01.2018 Transfer of funds 60,000,000 60,303,205.50 303,205.50 16.02.2018 to Equity Bank A/C 0750375486738 22.03.2018 Transfer of funds 60,000,000 60,639,246.56 639,246.56 28.05.2018 to Equity Bank A/C 0750376884144 TOTAL 190,000,000.00 192,140,602.71 2,140,602.71 However, the following anomalies were observed: i. The transfers were made from the project bank account and the approvals to withdraw the funds from the project account to the call and deposit bank accounts were not availed for audit review. ii. The openings of call and fixed deposit bank accounts were not supported by authority from National Treasury. iii. Interest earned was not budgeted for during the period under review. iv. Supporting documents were not availed to confirm closure of the bank accounts and as a result the accuracy and completeness of interest on investment earned or receivable could not be confirmed. v. Out of the total interest earned of Kshs.2,140,602 an amount of Kshs.324,863 was banked in the Implementing Agency bank account. Therefore, going against the Subsidiary Agreement, section 2.06 between JOOUST and Government of Kenya. Contrary, to Section 82 (4) of Public Finance Management (National Government) Regulations 2015 states that except with the prior authority of the National Treasury, no accounting officer may open a bank account for the deposit, custody or withdrawal of public moneys or other moneys for which he or she is responsible in his or her official capacity or for the transaction of official banking business. Consequently, the management was in breach of the law and regulations. Conclusion My responsibility is to express a conclusion based on the review. The review was conducted in accordance with ISSAI 4000. The standard requires that I comply with ethical Report of the Auditor-General on the Financial Statements of Africa Higher Education Centers of Excellence Project No. 151847 for the 17 Month Period Ended 30 June 2018 -Jaramogi Oginga Odinga University 3 requirements and plan and perform the review so as to obtain limited assurance as to whether the activities, financial transactions and information reflected in the financial statements are in compliance, in al material respects, with the authorities that govern them. A review is limited primarily to analytical procedures and to inquiries, and therefore provides less assurance than an audit. I have not performed an audit, and, accordingly, express my conclusion in the form of limited assurance, which is consistent with the more limited work I have performed under this compliance review. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. REPORT ON INTERNAL CONTROLS EFFECTIVENESS, GOVERNANCE AND RISK MANAGEMENT SYSTEMS Conclusion As required by Section 7,(1) (a) of the Public Audit Act, 2015, based on the procedures performed, I confirm that, nothing has come to my attention to cause me to believe that internal controls, risk management and overall governance were not effective. My responsibility is to express a conclusion based on the review. The review was conducted in accordance with ISSAI 1265. The standard requires that I plan and perform the review so as to obtain limited assurance as to whether effective processes and systems of internal control, risk management and governance was maintained in all material respects. The matters reported are limited to the deficiencies identified during the audit that I have concluded are material to be reported. I have not performed an audit, and, accordingly, express my conclusion in the form of limited assurance, which is consistent with the more limited work I have performed under this review. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS As required by the International Development Association(IDA)-World Bank, I report based on my audit, that: i. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit; ii. In my opinion, adequate accounting records have been kept by the Africa Higher Education Centers of Excellence Project No.151847 so far as appears from the examination of those records; and, Report of the Auditor-General on the Financial Statements of Africa Higher Education Centers of Excellence Project No. 151847for the 17 Month Period Ended 30 June 2018 -Jaramogi Oginga Odinga University 4 In addition to the audit of the financial statements, a compliance review is planned and performed to express a conclusion with limited assurance as to whether, in all material respects, the activities, financial tpnsactions and information reflected in the financial statements are in compliance with fhe authorities that govern them in accordance with the provisions of Article 229(6) of the Constitution and submit the audit report in compliance with Article 229(7) of the Constitution. The nature, timing and extent of the compliance work is limited compared to that designed to express an opinion with reasonable assurance on the financial statements. Further, in planning and performing the audit of the financial statements and review of compliance, I consider internal control in order to give an assurance on the effectiveness of internal controls, risk management and governance processes and systems in accordance with the provisions of Section 7 (1) (a) of the Public Audit Act, 2015 and subriIt the audit report in compliance with Article 229(7) of the Constitution. My consideration of the internal control would not necessarily disclose all matters in the internal control that might be material weaknesses under the ISSAls. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Because of its inherent limitations, internal control may not prevent or detect misstatements and instances of non-compliance. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the Africa Higher Education Centers of Excellence Project No.151847 policies and procedures may deteriorate. As part of an audit conducted in accordance with ISSAls, I exercise professional judgement and maintain professional skepticism throughout the audit. I also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. * Conclude on the appropriateness of the management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Africa Higher Education Centers of Excellence Project No.151847 ability to continue as a going concern or to sustain its services. If I conclude that a material uncertainty Report of the Auditor-General on the Financial Statements of Africa Higher Education Centers of Excellence Project No. 151847for the 17 Month Period Ended 30 June 2018 -Jaramogi Oginga Odinga University 6 exists, I am required to draw attention in the auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on thi audit evidence obtained up to the date of my audit report. However, future events or conditions may cause Africa Higher Education Centers of Excellence Project No.151847 to cease to continue to sustain its services. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. * Obtain sufficient appropriate audit evidence regarding the financial information and business activities of the Africa Higher Education Centers of Excellence Project No.151847 to express an opinion on the financial statements. * Perform such other procedures as I consider necessary in the circumstances. I communicate with the management regarding, among other matters, the planned scope and timing of the audit and, significant audit findings, including any significant deficiencies in internal control that are identified during the audit. I also provide management with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards. FCPA Edward R. 0. Ouko, CBS AUDITOR-GENERAL Nairobi 28 December 2018 Report of the Auditor-General on the Financial Statements of Africa Higher Education Centers of Excellence Project No. 151847for the 17 Month Period Ended 30 June 2018 -Jaramogi Oginga Odinga University 7 AFRICA CENTR OF EXCELLECE tN SUSTMNABLE USE OF INSECTS AS pOOD & FEEVa. Report and Financiaj Swtat' For 17Months period June 30,22018 4. STATEMENT OF RECEIPTS AND PAYMENTS FOR THE PERIOD ENDED 73JUNE 2$18, Note 14 Months ending 30 June 2018 RECEIPTS Kils. Transfer from IDA 8.2 111,954,167h Proceeds from other foreign grants 8.3 1,609.594 ,.Other receipts 84 2462703 TOTAL RECEIPTS PAYMENTS Compensation of employees g&5 8,38,119 Purchase of goods and services 8.6 18.523560 Acquisition of Non-Finance Assets 8.7 8249,70 TOTAL PAYMENTS SURPLuSOEFicIr) FOR THE PERIOD . 80,315,084 The accounting policies and explanatory notes to these financial statmen ar an ntegra prtof (hi the financial sAnerments. Vice ChanceRor Project Coordinator Pr Prof Stephen G, Agong Dr. Darius 0. Andika CPA Was Mage ICPAK No. 121 P4 r *t*A&RI N l ILR 0[ I V \FØ>JU1NE ending 30 June 2018 KShs FIN ANCIAL ASSETS k;h Iklanuces 8.8 f1al Cash and EquiNalents ,150X4 TOTAL FINANCIAL ASSETS R1rRt,srN iDBY surph% for the year &iX ztog NF F FINANCIAI. POSITION 8,315,084 CCK euint a"~t.nd CA:' hturniries tu' ikw ' aV < ?IN J' frm an ur epe gri wu -0 ACi. \- 1J~ Ah kruc( : Rtpøn% and Yincba1 Matenhrnr For 1'Months period end«d S une 311 2u1$ F T0 » enig311 June 2018 Rtcdpi Pfrnm uperating acth itigs 1~;i7 uerp- from H. eeds from other (Ireign grårxs J)Uer receipN4 I 5626,463 Pavments for oper.ling am ih itie, Ck:pensali.n f(emplor IL Z PUXhse. of IXkhad services Net cd hn from operating activitjs zn rlow tr»m mf~ingeacic ls Acqttisition o'f Non,Firant .eb Ital uer tij flows (rum isrn an sk811 S8 ( fi:~ bøireing aIni\s ~ nd w~rh equigmr. at :hK St;e~ ot tu'et -~ ~~~N CAs*r t,t . . . Ih Ia � '� .. . � . R,E4� .. I ���� . _ . . ' ег� ^'г �,! .✓ .+'' "�З. '� л'.�Dl1' .�t .�м .,..,. .�.�ь � � � ,wj eipe а�ьк. �,,. .^." � . .в. - .. . _ ..` ! Г� ,,,�} +ыrt ,'�.. '��`1` ,'+�^3 л� �. �., � ,.� "г' .. ^ �� � . Г. У- '..в '% I`� .У'" Г, н"� �ивI/R,♦ гыв. � w ....,.г �' �' i�ч 1� ..,,, н""- .-.� Г р. н_ww `д7' iW � '-t �ц t V+� ^. ~ 'I .� '.. + , � .. а 'R. 1 Т�' � 'й�'4' w�t а�в4 � • � �r : � }в�q� М'� . +г` А' Мт' У• �v •� � "+� 1I'�, r iI ам�i � � r .. .. 1 `f � �� ✓ � � � �М ав .r ..м ив. , . ,I�, � . м . . � }Et. � � : . .Mi. У., �� м .... � ... , п ^ �+ �+�г "` вwг . п '... вV� - � �� w- J. J ц � �У/у_ ц _ yk„ . А'''� г�„ _ � '`3 _ � ^� .i м` . � , �. . � � ° �+� r ц . `ц � �.. � п г�"'ы° � � мУ � � r +м� с .г '� ��.. i , . � м � м, м. ..�° .. . � . � '^R � +� }�„' � 1 � ,Г°�r�. +*�" '•�^ `Г "•" � ��r � ,�. � w . .. t г� � . � � � ,r -w е.г :w' t '-' s" �Б � ,_ р . � ,�„ «. . � � .. � . �и .�� ;/ �. .г,,; •_ _. . ,,н ,/' .9С „» 1,�� . . _ . "' � . +м , � еьwь- r�.. я� �� .�r �,ë,rt . � .'�•, ,� ,�„ х � . �п�. '�п .... � � °н �. , к . i�*i =..� �: -•-�ь� _ �"'�*, :JC: - ` � �г :h '.. � �. .�.;�. '� ��о '* � '�' м а'м; ,�., � � � � �� .�"�... � � .. "' � .�`-в и�` '�' w. » ± �\,� � '^ ti... °,.w ^,.. ,^м. �wм �' � � jjj'�� �ь � � ,��_' � � °�." �; � - � � .. Р . -.и. � ,... �.., . -... г� .м ,� чм+. r л`� ,�. � r � � � � .. � � � л .,�. � � _ � �.. � � р /= .. ' 'А� ..г+ ' ..... ` г «q «в ..+ .�г �. ..w д�, .w. у+г _ � уµ � � � .. �... rt'tM мм ".� �� i «.. С' г' "'�` �� � '"� �� � � ;к' � +�: .,� .С'и � w.к' ы �я � `it ':tt �,йi '.3 � '" у. ;r -�м, �.{ыr� .j.-.н-. г -� �ь . д wп ti ;/_ а+. .�.w � � R � � � � л � � . . , � �,+► "! . . �у-. .. ,,,. ... � ,... � . �"" � ""' � ,у�, *�с w' � � � � f r �:r -�� `д: �С w -.S _ Г�` +� , � "�2 . . .. � �к. . . '� . � г� .,�0 � дГ � �. , , � � ... � .... .. ,«�. _ . . . _ . ^С ,1: �' �. . � ���'�w � � '� .. Ч, ... ,... ._ ... .,,. . . . �, � п ++м r . . � у.� ��,i ➢,и� У.fь hN. . �n � v. ,r . �s �.'�`. . r" '+У. �� w� . t.. 1r �. м . #�}� ,,,. Ег '�'У ч�.+ ..�Ё+ ы �+ � 7 Уп` . .-_ '9 у � , . � . . F`,� . �� . � . � �.�. I�r . iиs. .. •fi � � � .. . . . �. �. I- _ .. �. � ь1/ ,,,. s � _ _ � . . . . � � � .. .._... � г�,. I �,. � в�у. � � � wмr.�. � �., � : � � . :гы '�г °�iг :н�i�. + ,,. п�ь. i � ;;.. ',м ; м ',.+*м '>. ", "� « "Х' � �» tR+ .? iа � r""°; `.� :а/.' "` _ �-+ _ �„` '.r�г �-..Е �.;tд -' ;у•• �.г* --.• � �° � С: м. � �� ,•�н ы .� w. �:, '.r.r �Ч 1�» ^,�„t � � мR '"� 'а"' ь�+` : ""' ,мл�` Р: � _ � �.�t �� � �+� f � �,sM ^F- ��„а v�. :ы. ,Bi ,�+� ""': �. ��' .�,�в _..... �,,,�j ,j� ,i�е�.. ''! '^ь � /�'ь � '.Z,л - � :.,. 'SМ�' "'ц' w {� # аRв � м� wв; � .. м� '�SC, ,в�.'"'�.° .,I.t '^�`f .j1 . .. м�'. - �""� ::..а ,�, ' � ,..` �..,;j �` � ; -.w. г�гt '� �.в} ,�iC� °i+� ,ы ��: .+i� � .." `,� , л.r w . ��и.. � ме � Мв' .� , . . .�.м. ь�'� r '� � �` '�`� э,..л q��� � tii� „�+t ,.�s � +,�г +r: .»мг r � 4' мf� . .. � :е� ��: ....�r '-д'' �м :�. я _ ' лч. � �'^ . ,.� « �:;.. : и. .,. мr . G _.-..,.- _....,... .._-�-. ..'. ....W...�.-' . . .е. . ..�..ж� . ... .. . . . .. . ......._ ' 5� ' CA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. AFR rts and Financial Statements Re For 17Months period June 30,2018 For 88. NOTES TO THE FINANCL4,L STATEMENTS. hhee principal accounting policies adopted in the preparation of these financial statements are set T T p0 out as under: 8.1. Basis of Preparation 8.1.1. Statement of compliance and basis of preparation The financial statements have been prepared in accordance with Cash-basis IPSAS financial reporting under the cashbasis of Accounting, as prescribed by the PSASB and set out in the accounting policy note below. This cash basis of accounting has been supplemented with accounting for; a) receivables that include imprests and salary advances and b) payables that include deposits and retentions. n6 fifibncial statements comply with and conform to the form of presentation prescribed by the PSASB. The accounting policies adopted will be consistently applied to all the years presented. 8.1.2. Reporting entity ' The financial statements are for the Africa Center of Excellence in Sustainable -use of Insects as Food and Feeds under the State Department for University Education under the Ministry of Higher Education, National Government of Kenya. The financial statements encompass the reporting entity as specified in the relevant legislation PFM Act 2012. 8.1.3. Reporting currency The financial statements are presented in Kenya Shillings (KShs), which is the functional and reporting currency of the Project and all values are rounded to the nearest Kenya Shilling. 8.1.4 Significant Accounting Policies a) Recognition of receipts The Project recognizes all receipts from the various sources when the event occurs and the related cash has actually been received by the Government. Transfers from the Exchequer Transfer from Exchequer is recognized in the books of accounts when cash is received. Cash is considered as received when payment instruction is issued to the bank and notified to the receiving entity. External assistance is received through grants and loans from multilateral and bilateral development partners. 161 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 Donations and grants Grants and donations shall be recognized in the books of accounts when cash is received. Cash is considered as received when a payment advice is received by the recipient entity or by the beneficiary. In case of grant/donation in kind, such grants are recorded upon receipt of the grant item and upon determination of the valu*. The date of the transaction is the value date indicated on the payment advice. Undrawn external assistance These are loans and grants at reporting date as specified in a binding agreement and relate to funding for the Project currently under implementation where conditions have been satisfied or their ongoing satisfaction is highly likely, and the project is anticipated to continue to completion. An analysis of the Project's undrawn external assistance will be shown in the funding summary when available. Other receipts These include other incomes and relates to receipts such as proceeds from application for admission fees, tuition fees paid by students under the project, grants as a result of proposal writing e.tc that are admissible under the project. These are recognized m the financial statements the time associated cash is received. b) Recognition of payments The Project recognizes all payments when the event occurs, and the related cash has actually been paid out by the Project. * Compensation of employees Salaries and Wages, Allowances, Statutory Contribution for employees are recognized in the period when the compensation is paid. * Use of goods and services Goods and services are recognized as payments in the period when the goods/services are consumed and paid for. If not paid for during the period where goods/services are consumed, they shall be disclosed as pending bills. * Acquisifton of fixed assets The payment on acquisition of property plant and equipment items is not capitalized. The cost of acquisition and proceeds from disposal of these items are treated as payments and receipts items respectively. Where an asset is acquired in a non-exchange transaction for nil or nominal consideration and the fair value of the asset can be reliably established, a contra transaction is recorded as receipt and as a payment. A fixed asset register is maintained by each public entity and a summary provided for purposes of consolidation where needed. 171 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 c) In-kind donations In-kind contributions are donations that are made to the Project in the form of actual goods and/or services rather than in money or cash terms. These donations may include vehicles, equipment or personnel services. Where the financial value received for in-kind contributions can be reliably determined, the Project includes such value in the statement of receipts and payments both as receipts and as payments in equal and opposite amounts; otherwise, the contribution is not recorded. d) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits on call and highly liquid investments with an original maturity of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. Bank account balances include amounts held at the Central Bank of Kenya and at various commercial banks at the end of the financial year. For Vhdpurposes of these financial statements, cash and cash equivalents also include Bank account balances, short term cash imprests and advances to authorized public officers and/or institutions which were not surrendered or accounted for at the end of the financial year where applicable. Restriction on cash Restricted cash represents amounts that are limited/restricted from being used to settle a liability for at least twelve months after the reporting period. This cash is limited for direct use as required by stipulation. Amounts maintained in deposit bank accounts are restricted for use as stipulated in the financing agreement. e) Accounts receivable For the purposes of these financial statements, imprests and advances to authorized public officers and/or institutions which were not surrendered or accounted for at the end of the financial year is treated as receivables. This is in recognition of the government practice where the imprest payments are recognized as payments when fully accounted for by the imprest or AIE holders. This is an enhancement to the cash accounting policy. Other accounts receivables are disclosed in the financial statements where applicable. f) Budget The budget is developed on a comparable accounting basis (cash basis), and for the same period as the financial statements. The Project's budget was approved as required by Law and National Treasury Regulations, as well as by the participating development partners, as detailed in the Government of Kenya Budget Printed Estimates for the year. g) Third party payments Included in the receipts and payments, are payments made on its behalf by to third parties (Jaramogi Oginga Odinga University (JOOUST). These payments are reimbursed on a quarterly basis. 18 I AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 h) Exchange rate differences j The accounting records are maintained in the functional currency of the primary economic environment in which the Project operaps, Kenya Shillings. Transactions in foreign currencies during the year/period are converted into the functional currency using the exchange rates prevailing at the dates of the transactions. Any foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statements of receipts and payments. fi) Comparative figures Where necessary comparative figures for the previous financial year/period will be amended or reconfigWred to conform to the required changes in financial statement presentation. j) Subsequent events There have been no events after the financial year/period end with a significant impact on the financial statements for the year ended June 30, 2018. 191 AFRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 NOTES TO THE FINANCIAL STATEMENTS (Continued) 17MONTHS 8.2 Receipts from Governmept of Kenya ENDING 31 JUNE 2018 06.09.2017 111,595,000 19.06.2018 259,167 Total 111,854,167 These represent finances transferred from the Government of Kenya 8.3 Proceeds from other foreign grants Name of Donor DANIDA Fellowship Center 1,6099594 8.4 Other receipts Finance Income 2,140,603 Sale of goods and services 22,100 Total 2,162,703 Investment income relates to interest on-call deposits held 8.5 Compensation of employees Salaries of permanent Employees 8,258,429 Basic Wages of temporary Employees 263,689 Compulsory National Social Security Schemes 16,000 Total 89538,118 8.6 Purchase of goods and services Domestic travel and subsistence 8,015,834 Training expenses 900,662 Printing, Advertising & information supplies & 172,478 Foreign travel & subsistence 6,188,781 Specialized materials & services 1,790,558 Routine Maintenance- other assets 897,740 Other operating expenses 537,750 Finance Costs 19,757 Total 18,5239560 8.7 Acquisition of Non-Finance Assets Purchase of motor vehicles 4,995,000 Purchase of computers 525,000 Purchase of equipment 2,343,200 Purchase of furniture 386,500 201 glCA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. eport and Financial Statements jpor 17Months period ended June 30, 2018 8,249,700 Total 17MONTHS ENDING 30* JUNE 2018 8.8 Cash and Cash EquivaleAts Bank Account (Equity Acc. No 0750271748376) 80,3015,084 Cash in hand Cash in short term deposits ., Outstanding Imprests Total 80,315,084 1 9. Gratuity The University policy on contract employees is to pay gratuity at the end of the contract period. During the period the gratuity payable to staff on contract was KShs. 645,128.60 which will be payable at the end of the respective contract period. 10. Progress on follow up of auditor's recommendation. This is the first year of the operations of the project. The Project did not have any issues for auditor's attention. 211 FRICA CENTER OF EXCELLENCE IN SUSTAINABLE USE OF INSECTS AS FOOD & FEEDS. Reports and Financial Statements For 17Months period ended June 30,2018 221 ,._. �, ..е �. м .-. м � р :� � '_' �' �у р � ''а -� � � т � й � л, w О N � ~ С � � '� � � F+ 0 �Rt Ф � а. w � и � т � а �. � � � и � ° � л д � � с�и � � � � � �к сQ � си е � �'б С� л � С �г � С Г� С � а� и � � а д� � �, "� � � � � у �f�° � ,��3 и ���....�� Fo � ^ �. � � ¢' '�д �. "дr�! р Lь=�уΡ1 I � а' ~ и R �� л(�-ip `� т� А в�• :i ~ i � ,� � а � о � �, о � о ... ,�1 � �о � � �' с � ° А г,ау �' l�гJ � Г' �' сго с� А. � � � �i � � � � � й � �, �� � � � ,�и Crj � А � � '� ° � � W I� � спо �л,� '-' � ". О � � й � л � �: � � � (�D N Q1 � о � � �� о �•,� л :�i � � �° Гхj � �. � � , tr1 � О � � � � � � � н � л А� CL Ф � ы� � �i t'�-. !��� а. � о � й о а и Н ;� �. ro � ао а � � °Q � А �� � � � r а, b О у а � ��вуΡ' ,.1: � 1 1--� 1 F-+ ОО N � С: �-Ч � � I i � о�о v � и hJ � °0 с" о � у О о ' � и � � �1 � ° О ° � Й � О О ° � Сг) А ,.r �• � � N � � � й и � `D °° й й и "'3 � � !Э� °° а�, и о о о Q, v' о о о о о о � О ° ,°о о о о о � С ° � о ° ° ° � f�o и V д � N � � � t'у'' � . N ,� � и � N � � О и � И о w й � оо w а� О i.n и О гли ° � р О С w � О � ° � р 0 ; ;S ° О ° ° ° � а' ,, j • , �' сиi � � � О � о �ч"'б �3. '�' о ° � � � � R. с�и � � � � � � м � �• С iu л �-.о _ �� й С�1. й с� �`� й� и�. � б.�м а м� v' С Ф¢. С � ,,. и и О и 'б "��'� Fб � � � О а � � � `� `�~ � � �, й "• �тs w �r3 о �' S� О � � .а �'� �q�°���� 'б �о�'г�А с�и о о � л а' й�+ 0 О- c��D �� '-" "'! . й �. и �. � � и � О• �_ р. А� �� �, v, и �л �' �" о О��'д �. v' и v' и и и �. � N� л � v� �л �^ �' �' и F'д � и и и � й• и и � � i в ( N и N N�]- N о N с� N и N N И о',"✓ �• '."' �:"' .� '.""� .✓ 6' � � 1SJ М� � со 'L3 о �. i-. О о � н.+ �* �• и� ю�' �О к0 � �1 О Ф _? : 1 � б� iл С�. и iN ° tJ � б � W Ф N О,✓ � О "'! "О Q- • си г� б � и,•� и �� �� о д � О r о д� о г� .о° t� �' t� о[к� си � гc�� о с о о- о о.б � � а.п�, �. ��� у � и р„ c�i � о�о С ю�б '�' Р' R�. ю �rs и си е си `' � � о � �С �D � � о � а. fD � � � � �. а. о ~ � г� р р � С1 �• ~ о � й о си � .б � � гг t3+ � � &' �" �t � ц � `�' р„ ирΡо °л R. � � �, ^.� �' � � � оо �_ ао а �� � '�,�, �7 р, �: � ыу к R (D � к � CL м(D � Ф • CL {� 1�1 OQ �. (� N Ф CL � и и � О Ф гг � N � � �-r Ф ryиq' �цр о г�+� �рΡ� �, рΡц1 �• ° � л � � "б л о G и о С "б 'б � "�. � � R'б � Ф R i� С• б о� � �s .i. ¢, й �* гг � Ф� � � G� � к R •• �дл �•А. �. tl�o � к ё� � й с�о'� ��+�р'�1 � р Ф• ок л� и�� Ф��'•д с� гг й��у � О' �� �р � А'.✓ i:1 �' ох' �' С�D �Ф и 'б �n.a `Dо С�� а � Ф� о �7 �iC и � о л. �. � ски �-�г � � юс� � й � � lz7 � ё о � � � � � �• "ои п"' � и со о' G• сио `� �,.о.� �'• � � г"� -�иt о• м�i R r � � � � й � �• � о � � � � � � � и� 0 �N � О С fC � � � � а � о• б � � � � � о � с��, � ° � �' W � � �г � и и О L�1 - �• �• � w• о � � �, � � � �• � й �• � � w а, ои kк о о и � � � �и„ .Р�у и й �оq w�• и� �t � R. �' С б Я�. Ф {'�О F+ �П � О � � и• � й 'б �• � � Ф � л " � U� ,.,�,r,!�Ь, ю ,_, С� ;� и � �у о о � к 'r•s' • �• й � � � � R � :4 � ¢ • � � � о л и �• о и � ' rуΡ� 1 � � � " 1 1 ,�j 1 1 W � '""' � � й � оо t�11 v .,� � ' N ' � � � о о � о � w 0 о й N '� р � О О � ~ � w � '� и � и и N rP � �^ � л w N rP �-° й " р � � О и и о �С О Й О О � N � О О р � О О � О О О О О О � О О й О О О О Оо О О � °о °о °о °о о о ° о � ° ° ° о ° ° р о о о о °о °о с о � о ° с с о ° ° о о о О �� о о ° о ° о о о о о д. � .-+ � N N �. w �С о� о� и и N � оо и � 1�1 , � о � N � и о rд о о �. �,л о �с о t1J �;� � о ? ..° с� о о о ° ° д ,� и о � ° owo oNO °о v о ° � р ° р ° � -- °о °о о °° �,, о о N о о л о ° о о и о о о о о о� о о о о °о о ° ° � о о � с о � о о о о � 'о° о ' � о �с о о о � �о���и � с� и и t�i Г� tт1 о ю �� о о � � ю �.й � о о о � а° � � � а ц � ' л `�.°,�� °.р- к ".' � О О. С3` О. (� � ,о_. ¢' о Ф Ф "t � �р и� �� �р � � а � � � ,�о � � � � с � R, р й Q, �. � о � � � �D й о. � w Е: � � �•о О v�' о и � Ф � �� � � �jUp .С..Nк � � � о Ф О R' N N0с� L� Ф '"S � й � � < �S• � �' С � ^ N � � Ф ,.' �р ср ,_, са со �.�оо о� �р к�• Ф о к � а О �� а � м �• �� О л � О О О �• О (�D �¢' б Ф к си w г-г б ip со Rt' к сР и Cr � и �р и к Ф и и � О �р и � к � г��+ �• о, � � и � � � ►� �у �. `� и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и и сл �л и и и и и и и и и и и т и и I ~ i 닌,· - - и Г�.* и •`ир ��� v � •�и, � -�и,, р� N�� �--. о �. с� �, с" О,� "б R �, -✓ � с� �•id � со 5 � �I '° � v, и.� о '' сли �уΡуΡ � и � � � � р `'р й � У`° � ° �' w � �Cr��j-�y � ы� v С3' л � �ё � � W � С � м � F'►в ~ •�• `д (р F'1 � � с�о й, а' с�и ,� � `� v, л си б � '� �. ,�s' "* ° � '�'� С р �% tAs1 � � с�о � о "' � �'v � �'.s'' � сби и и � � р � си � С. г гГ Ф л� Ф �л-t и о и Ат т �� � Ф ►�' �у а' и гг м('� � � �• � р t11 � й � �n. � �' °е � � � � w � � � � � �л �• л О r. р � С�-•]. G_ и.и.� л и �_ ",.l2 л � Ф с�о �, �. р„ �J !,� � А. � !з. � � л �s � й � о^ �. ( 4 � � C�i �• л < о_ уС � � � � 'б � � � � �. 5 G� п3• �r а. л r с�о � � � � � й � � � л < � о С � � ' р� •t"�,^�. Cs .F•� � л л и� л �. � р 1� о о4 � со о � � �' � г� :Z о и 0 �� � .r�.•р�' А �.w� А о о о,,,,� � � й ° tт1 �' о t� , � � м � � � `� � o N � � О л с�и й �• i ы� ' � � � и � ~ � � й � О ьQ1-� � � ''3 м . �, � у � .:`'` а :, ,+`1р. CD �• � � � v и' i]. � м � � � �• � � � °' ,� а � на � `� � � м О r и � 00 N W L=1 и ��.' N � � N l,,) и N j � � � � � N � � � v � б� � W Св � �1 00 � и _ о� �д [•� � о `^ о д ° �' °о о о � ° w �i '.� о о о о � w о о о � о о � о �, и о � � и �-. w а� �С N � v, О� �1 "'� о о о о, о `'' ►-, � о ° о "� °о о и о о о оо ° � й о о о о о о о � � °о о °о о о � о о о °о о о о о '=J о о о о ° о ° о о о о о о о О о о с о о о о о о о с О о оо о о ° о о о о о о ° С о � � �-• и � w w � и и W � .-� оо и '""' О и � й �С а � ` w о � °� �" � °° °�° `л '� � �и й w л о � о � о+ � °° о ° о w о � � W и °° '� � о N N � I С С и С о � � О о W о О °о о° р о i..� и о о о о aN, О °о о и о о i �-.� �-► [17 А� � л С7 С7 д "�'r О N ,.., м�' С"'�] cD � о � О�� 0 � � 0 � "е � �• л• й '�'1 � � � б �• � б � л � А� Ф � л О �N,r �г ... и и (р рΡ� г+ ,� и ,.. �} �р �� а�~лгг О � Ф �р �� й¢'R о.� А.т й � � и CD � G й °' А' и Р- �г �' � Q• . р� б и м и � '�гs' С! f и о о�� и Q' и С N��� �� < О , �! О С� �-лt м а,�и Nи `"У, й !. б� � � � би ооа� �, л си ° р. � � о� � сР ри Ф � � и и и и v, и и и и и и и и и и и и и и и и и и и и и и и p1 °' и и � и �, и и и и и и гл и и v, v, и и и и и и и и 1 и и и и и � � � w о� л� а� е� аго w о� о, и �1 �� � � �' "� N о.°ч � �-. о б о е� б rs � � �° о. и Н ��-► о °+ �i' �[" s � � с-��'и � � � й о v � � �, о о 'ts � „�б � �,, си �. � р,�, �" � е °''� ,о.� '�.�.� р�� й � А� р� � ii � �•„b и � qл со б ��Z � � ° � � �D < о �срΡ � и �J у "л � � � R "�"' й � � Я�D ы� р о о. � �, со �. л О i т_ � р о со kI' ¢, "'• ыкJ � О � � � � "' � � � � А � � � й � сии � � С � �` гг �• � � �• а (р а � � й k3 iu с•� � t" � ,.°.' О v' � О �tt � � � С�1 �� w сD л° а' ��'* А и'а � "ы� г. �i ср w "б и о � � �.� О, �р �. м N у � � 0 ry�p Ry� �"- 1.°+ ь-�ГП �`� т••F го ip �' СО С,' � � � � � ° Н � � ' � .г,, � и ° ~ м w � � � � � � rуΡ� �j 1 Н+ W !-+ l � W N N �С± м+ � lI1 � � J � ti'J � . � � � о � ° � � .� ° °о оо °O � � о � � W о ° '-' � о о �-' у � О О iв� � � � О J ° О О v°�i И ° О О р �J °° ° о о ° О о °о °о С � О R° _ � ~ W � � 1=1 ,✓ ° �1 О [J N � � д � �И � ° С � И �., � О О :р О � О�О � р О N С N ° � � О r � О_ R�. о� О р�. � . ,,.1 r ° '"� �' ° , Q.� й � R'й I� � д � ё � � � � Э �' �а�. � � s �• � �s� и и и и и и и и и и и и г- I i и и и и . и и и и и и и � � � , ! , . �'- i i