I 45cr tfze year en6eaf3o June 2016 I I I I I. IPublic Disclosure Authorized ECONOMIC PLANNING (MINECOFIN) AUDIT REPORT MINISTRY OF FINANCE AND I I

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1 Public Disclosure Authorized Disclosure Authorized Disclosure Authorized Disclosure Authorized MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT 45cr tfze year en6eaf3o June 2016

2 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE NTRODUCTON The Ministry of Finance Economic Planning (MNECOFN) was formed in March 1997 from the joining of the Ministry of Finance the Ministry of Planning. This was done in order to improve the co-ordination between the functions of finance planning. 1.1 Structure The Ministry of Finance Economic Planning (MNECOFN) has a structure which consists of the Minister, the Minister of State, the Permanent Secretary Secretary to the Treasury, 6 Heads of Departments, 8 Director Generals 13 Directors of Units. Departments. National Budget Department; 2. National Development Planning Research Department; 3. Office of Chief Economist Department; 4. Office of Chief nternal Audit Department; 5. Office of the Accountant General; 6. Financial Sector Development Department. Directorates 1. Fiscal Decentralisation Division; 2. National Planning Research Division; 3. National Programs & Projects Monitoring Division; 4. Macro - economic Policy Division; 5. External Finance Division; 6. Deputy Accountant General/DG Treasury; 7. Deputy Accountant General/ DG Public Account; 8. Corporate Service Directorate; Units. National nvestment Project Quality Assurance Unit; 2. Debt Unit; 3. Government Portfolio Management Unit; 4. Human Resource Administration Unit; 5. CT Unit 6. Budget Management Reporting Unit; 7. Banking & Non-Banking Sector Unit; 8. Capital Markets & nvestments Schemes Unit; 9. Finance & Logistics Unit; 10. Budget Policy Formulation & Reforms Unit; 1. Local Government nternal Audit Unit; 12. Central Government nternal Audit Unit; 13. FMS Unit. Office of the Auditor General of State finances 2

3 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE 2016 n addition, MNECOFN is the line ministry for the following institutions: * Rwa Revenue Authority (RRA); * Rwa Public Procurement Authority (RPPA); * National nstitute of Statistics of Rwa (NSR); * Capital Market Authority (CMA); * Special Guarantee Fund (SGF); * Rwa Social Security Board (RSSB); * National Capacity Building Secretariat (NCBS); * AgDF Corporate Trust Ltd * Rwa National nvestment Trust Ltd (RNT) 1.2 Principal activities The principal activity/mission of the Ministry is to raise sustainable growth, economic opportunities living stards of all Rwans; achieve the highest stards of accountability transparency in Public management. Office of the Auditor General of Statefinances 3.A

4 5 M STRY OF FNANCE AND AUDT ECONOMC REPORT PLANNNG FOR TRE (MNECOFN) YEAR ENDED 30 JUNE STATEMENT OF RESPONSBLTES Article 66 of the Organic Law No. 12/2013 of 12/09/2013 on State Finances Property requires budget agencies to prepare submit to the Ministry annual financial statements in a period of one month from the end of the fiscal year submit their annual financial statements to the Auditor General of State Finances not later than 31 July of the following fiscal year. Article 19 of the Organic Law N 12/2013 N001/6aT of 12/09/2013 of26/01/216 Article 99 further of Ministerial stipulates order for maintaining that the accounts Chief Budget Manager records of is responsible execution, the budget managing agency, revenues preparing expenditures, reports on preparing, budget of financial plans, maintaining coordinating managing the financial resources the transparently, use ensuring sound internal for the control budget systems agency in effectively, the budget efficiently the public agency property held safeguarding by the budget agency. As the Chief Budget Manager, accept responsibility have been for the annual financial statements, the prepared Ministerial using the "modified cash basis which Order N'00 1/ 16/lO/TC of of 26/01/2016 accounting as relating defined to by Financial Article 2 (20) Regulations of appropriate accounting policies supported by reasonable using prudent judgments estimates. These financial statements have been extracted from the accounting records of Ministry of complete in all material respects. The financial statements also form part of the consolidated financial statements of the Government of Rwa. r in my opinion, the financial statements give affairs a true of Ministry fair view of Finance of the state of Economic the financial Manager further accepts Planning responsibility (MNECOFN). for the maintenance The Chief of accounting Budget relied upon in the records preparation that may of be financial financial statements, control ensuring safeguarding adequate the systems assets of of the internal emr Signature: 0, Caleb RWAMUGANJZA Permanent Secretary Secretary to the * Date: 2 9 AR 2fl Office of the Auditor General of State finances 4

5 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE REPORT OF THE AUDTOR GENERAL REPORT ON THE FNANCAL STATEMENTS Mr. RWAMUGANZA, Permanent Secretary Secretary to the Treasury 3.1 ntroduction n accordance with Article 165 of the Constitution of the Republic of Rwa of 2003 revised in 2015, Articles 6 14 of Law no 79/2013 of 11/09/2013 determining the mission, organization functioning of the Office of the Auditor General of State Finances (OAG), carried out an audit of the accompanying financial statements of Ministry of Finance Economic Planning (MNECOFN) for the year ended 30 June These financial statements comprise the statement of financial position as at 30 June 2016, the statement of revenue expenditure, statement of cash flows budget execution report for the year then ended, a summary of significant accounting policies other explanatory notes. These financial statements are set out on pages 9 to Management's Responsibility for the Financial Statements According to Organic Law No 12/2013/OL of 12/09/2013 on State Finances Property, management of Ministry of Finance Economic Planning (MNECOFN) is responsible for keeping accounting records books of account, preparation of financial statements in accordance with the financial regulations prescribed by the Minister in Ministerial order N 0 001/16/10/TC of 26/01/2016 relating to financial regulations. This responsibility includes the design, implementation maintenance of internal control relevant to the preparation presentation of financial statements that are free from material misstatement, whether due to fraud or error. 3.3 Auditor General's Responsibility My responsibility as Auditor General is to express an opinion on these financial statements based on my audit. conducted my audit in accordance with nternational Stards of Supreme Audit nstitutions (SSAs). Those stards require that comply with ethical requirements plan perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. n making those risk assessments, internal control relevant to the entity's preparation presentation of financial statements is considered in order to design audit procedures that are appropriate in the circumstatices, but not for the purposes of expressing an opinion on the effectiveness of internal control. An audit also includes evaluating the appropriateness of accounting policies used, the reasonableness of accounting estimates made by management, as well as evaluating the presentation of the financial statements. Office of the Auditor General of State finances 5

6 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFTN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE 2016 believe that the audit evidence have obtained is sufficient appropriate to provide a basis for our opinion. 3.4 Opinion n my opinion, proper books of acepunt have been maintained the financial statements give a true fair view of the financial position of Ministry of Finance Economic Planning (MNECOFN) as at 30 June 2016, of its financial performance its cash flows for the year then ended in accordance with the guidelines provided by Ministerial Order N*001/16/10/TC of 26/01/2016 relating to financial regulations Organic Law N' 12/2013/OL of 12/09/2013 on State Finances Property. BRAR AUD G adih Office of the Auditor General of State finances 6

7 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE 2016 REPORT ON COMPLANCE Mr. RWAMUGANZA, Permanent Secretary Secretary to the Treasury 3.5 ntroduction n accordance with Article 165 of the Constitution of the Republic of Rwa of 2003 revised in 2015, Articles 6 14 of Law n' 79/2013 of 11/09/2013 determining the mission, organization functioning of the Office of the Auditor General of State Finances (OAG), carried out an audit of the activities, financial transactions information reflected in the financial statements of Ministry of Finance Economic Planning (MNECOFN) for the year ended 30 June Management's Responsibility for Compliance n addition to the responsibility for the preparation presentation of the financial statements, the Organic Law No 12/2013/OL of 12/09/2013 on State Finances Property specifies that management of Ministry of Finance Economic Planning (MNECOFN) is also responsible for the following: * Preparation of mid-term plan, annual action plan, annual budget for funds provided; * Exercising control over the execution of the budget, in compliance with all provisions of the Organic Law applicable public financial management regulations; * Preparation submission of reports to the Ministry of Finance Economic Planning as provided for in the Organic Law applicable public financial management regulations; * Preparation implementation of cash flow plans in consultation with the Ministry; * Managing effectively, efficiently in a transparent manner, all the public funds in accordance with relevant legal provisions; * Establishing maintaining effective, efficient transparent systems of internal controls risk management; * Ensuring proper use of public funds at the disposal of subsidiary entities; * Providing any other information as may be required by the Ministry Office of the Auditor General of State Finances; * mplementing the Audit recommendations of the Ministry Auditor General of State Finances; * Ensuring compliance with all the provisions of the Organic Law, applicable public financial management regulations other laws relating to public finance. 3.7 Auditor General's Responsibility n addition to the responsibility to express an opinion on the financial statements, Article 166 of the Constitution of the Republic of Rwa of 2003 revised in 2015, requires the Auditor General to confirm that: * Expenditure incurred was necessary in conformity with the laws regulations in force sound management; Office of the Auditor General of State finances 7

8 , MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE 2016 * Controls to safeguard the receipt, custody proper use of public funds were put in place that the laws regulations in force were duly observed to prevent misappropriation of public funds; * Ministry of Finance Economic Planning (MNECOFN) acquired utilized human, material financial resources economically, efficiently effectively to prevent squering of public funds. My responsibility includes expressing an opinion on whether the activities, financial transactions information reflected in the financial statements are, in all material respects, in compliance with the above provisions of the Constitution implemented through Organic Law No 12/2013/OL of 12/09/2013 on State Finances Property other existing laws regulations relating to public financial management. This responsibility includes performing procedures to obtain audit evidence about whether the entity's expenditure income have been applied to the purposes intended by the Organic.Law on State Finances Property. Such procedures include the assessment of the risks of material non-compliance. believe that the audit evidence have obtained is sufficient appropriate to provide a basis for my opinion on Compliance. 3.8 Opinion on Compliance n my opinion, in all material respects, the activities, financial transactions information reflected in the financial statements comply with the provisions of Organic Law No 12/2013/OL of 12/09/2013 on State Finances Property all relevant existing laws regulations governing public financial management there was proper accountability realization of value for money for public funds. ERAL B AUD G E d

9 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE FNANCAL STATEMENTS FOR THE YEAR ENDED 30 JUNE STATEMENT OF REVENUE AND EXPENDTURE FOR THE YEAR ENDED 30 JUNE 2016 Description Notes 12 months to 12 months to 30 June June 2015 Frw Frw Revenue Transfers from Treasury 1 375,363,004, ,926,268,274 Transfers from other Government 2-1,174,542 Reporting entities. Total Revenues (A) 375,363,004, ,927,442,816 Expenses Operating expenses Compensation of Employees 3 2,720,420,633 3,146,030,294 Use of Goods Services 4 130,149,777, ,059,174,613 Transfers to Reporting Entities 5 27,193,173,700 2,789,211,833 Subsidies 6 3,525,650,382 4,031,226,339 Social Assistance 7-300,124,849 Finance cost 8 56,777,101,203 45,529,592,101 Other Expenses 9 34,660,209,986 50,599,549,210 Total operating expenses 255,026,333, ,454,909,239 Capital payments Capital Expenditure 10 93,322,343,234 78,683,555,730 Repayment of borrowings Loans repayments 11 29,937,647,161 16,153,850,582 Total expenses (B) 378,286,323, ,292,315,551 Surplus/deficit (C=A-B) (2,923,319,702) (5,364,872,735) Notes on pages 14 to 25 form an integral part of the financial statements Office of theauditor General of State finances 9

10 . MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE STATEMENT OF FNANCAL POSTON AS AT 30 JUNE 2016 Description Notes Balance as at 30 Balance as at 30 June2016 June2015 Frw Frw Financial Assets. Bank Balances ,592 Cash Balances 13 94,890 7,704 Accounts Receivables Advances 14 19,768,209-19,863, ,296 Less: Financial liabilities Accounts Payables 15 (19,789,612,765) (16,886,271,858) Net Financial assets (19,769,749,666) (16,885,305,562) Representing Accumulated surplus (Deficit) from 16 (16,885,305,562) (13,721,636,790) previous years Net surplus / (Deficit) for current year (2,923,319,702) (5,364,872,735) Prior year adjustment 17 38,875,598 2,201,203,963 Total closing balances (19,769,749,666) (16,885,305,562) Notes on pages 14 to 25 form an integral part of the financial statements Office of the Auditor General of State finances 10

11 MNSTRY OF FNANCE AND ECONOMC PLANNNG (MNECOFN) AUDT REPORT FOR THE YEAR ENDED 30 JUNE STATEMENT OF CASH FLOWS Description 12 Months to 12 Months to June 2016 June 2015 Frw Frw Cash flow from operating activities Transfers from Treasury 375,363,004, ,926,268,274 Transfers from other Government Reporting - 1,174,542 entities Payments for operating expenses Compensation of Employees (2,720,420,633) (3,146,030,294) Use of Goods Services (130,149,777,492) (133,059,174,613) Transfers to Reporting Entities (27,193,173,700) (2,789,211,833) Subsidies (3,525,650,382) (4,031,226,339) Social Assistance - (300,124,849) Finance cost (56,777,101,203) (45,529,592,101) Other Expenses (34,660,209,986) (50,599,549,210) Adjusted for Changes in receivables (19,768,209) Changes in payables 2,903,340,907 3,165,819,801 Adjustment during the period 38,875,598 2,201,203,963 Net cash flow from operating Activities 123,259,118,989 94,839,557,341 Cash flows from nvesting Activities Purchase of capital items (93,322,343,234) (78,683,555,730) Net cash flows from nvesting Activities (93,322,343,234) (78,683,555,730) Cash flow from Financing Activities Repayment of borrowing (29,937,647,161) (16,153,850,582) Net cash flow from financing activities (29,937,647,161) (16,153,850,582) Net increase/ Decrease in cash cash (871,406) 2,151,029 equivalents Cash cash equivalent at Beginning of the 966,296 (1,184,733) year Cash cash equivalent at end of the period 94, ,296 Notes on pages 14 to 25 form an integral part of the financial statements Office of the Auditor General of State finances

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