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Arusha international Conference Centre I Annual Report 2011

1We Bring the World to Tanzania

Annual Report 2011

AICCArusha international Conference Centre

Annual Report 2011

2 We Bring the World to Tanzania


Vision

To be a model and enabler of business tourism

AICC Mission Statement

To promote and provide quality business tourism services to national

and international clientele for enhanced national, social and

economic development.


Financial Highlights

Total Revenue for the past ve years

9,000,000,000

8,000,000,000

7,000,000,000

6,000,000,000

5,000,000,000

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

02005/06

Revenue

2006/07 2007/08 2008/09 2009/10 2010/11



Corporate Information

REGISTERED OFFICE & CENTRE’S HEADQUARTERS

Barabara ya Afrika Mashariki

P.O. Box 3081

Arusha, Tanzania

Tel. Gen. Line: +255 27 250 3181/9

Managing Director: 250 8008/3881

Fax: +255 27 250 6630

E-mail: [email protected]

Website: http://www.aicc.co.tz

PARENT MINISTRY

Ministry of Foreign Aff airs and

International Co-operation.

Kivukoni Front

P.O. Box 9000

Dar es Salaam.

Tel: 022 2111906/10

Fax: 022 2116600

Email: [email protected]

AUDITORS

The Controller and Auditor General,

National Audit Offi ce,

Samora Avenue/Ohio Street,

P.O.Box 9080,

Tel: +255 (022) 2115157/8

Fax: +255 (022) 2117527

E-mail: [email protected]

Website: www.nao.go.tz

BANKERS

NBC LTD

CRDB BANK PLC

FBME BANK LTD


TABLE OF CONTENTS

(i) Letter of Submission

(ii) Chairperson’s Statement

(iii) Board of Directors

(iv) Managing Director’s Statement

(v) Management Team

(vi) Report of the Auditors

(vii) Statement of Financial Position as at 30th June, 2011

(viii) Statement of Comprehensive Income for the year ended 30th June, 2011

(ix) Cash Flow Statement for the year ended 30th June, 2011

(x) Statement of Changes in Equity for the Year ended 30th June, 2011

(xi) Notes on the Accounts



Hon. Bernard Membe (MP)Minister for Foreign Aff airs andInternational Co-operationP.O.BOX 9,000Dar es Salaam

Dear Hon. Minister

In accordance with the Public Corporations Act (CAP 257 R.E 2002 of the laws of Tanzania), I hereby submit the Annual Report with the Centre’s Audited Statement of Financial Position, Statement of Comprehensive Income, Cash Flow Statement and Statement of Changes in Equity for the fi nancial year 2010/2011

Yours Sincerely,Amb. Christopher LiundiCHAIRPERSON

Hon. Bernard Membe (MP)Minister for Foreign A� airs &International Co-operation


Letter of Submission

Chairperson’s Statement

It is my pleasure as the Chairperson of the Board of Directors of Arusha International Conference Centre, to report a turnover of TShs 8,174,864,843 as compared to TShs 7,873,802,224 last year.

This Annual Report presents the AICC’s achievements over the past year and illustrates how the Centre has positioned itself in spearheading Business Tourism in Tanzania. During this fi nancial year the Board continued to guide the Centre in implementing, formulating new policies and guidelines; in doing so the Board approved the Estates Management Policy, Centre’s Motor Vehicle Use Policy, Joint Venture Policy and the Centre’s Customer Service Charter.

Despite the challenging economic conditions, the Centre has managed to deliver exceptional services to its clientele.

The Centre’s Board of Directors is presently preoccupied with harnessing and exploiting AICC landed property potential to ensure that it plays a more meaningful contribution in social and economic development of the country. Such eff orts include working closely with the Government and other stakeholders to build a modern convention centre in Arusha. Similarly, modernization and upgrading of the current facilities and residential houses in Arusha is continued.

On behalf of the Board of Directors, I would like to commend and thank the Centre’s Management and employees for yet another good year in “bringing the world to Tanzania”.

Amb. Christopher LiundiCHAIRPERSONAICC BOARD OF DIRECTORS



Managing Director’s Statement

Over view

The Centre’s achievement is measured in far more than fi nancial statistics. The last fi nancial year saw AICC moving closer to achieving its mission of promoting and providing quality business tourism services to national and international clientele for enhanced national socio-economic development. This mission encompasses the major aspect of Centre’s core business.

Operational Results

During the year under report, the Centre registered a turnover of TShs 8,174,864,843 as compared to TShs 7,873,802,224 recorded in previous fi nancial year. The revenue sources are Estates, Conferences and Hospital. The increase in income was attributed by gain in exchange rate fl uctuations.

In this fi nancial year, the Centre realized a profi t of TShs 531,605,320 after tax as compared to TShs 988,890,286 recorded last year. The decreased profi t was due to increased prices of commodities coupled with the exchange rate fl uctuations which aff ected expenditures drivers.

Mr. Elishilia D. KaayaManaging Director


Table 1: Total Revenue for the past � ve years

YEAR ESTATES HOSPITAL CONFERENCES OTHERS TOTAL

2006/07 3,360,376,818 623,369,608 1,297,296,960 387,983,277 5,669,026,663

2007/08 3,534,165,351 884,091,021 1,551,887,787 -244,108,457 5,726,035,702

2008/09 4,020,063,595 923,692,377 1,261,300,822 333,989,650 6,539,046,444

2009/10 4,351,645,801 1,084,292,692 2,114,509,513 323,354,219 7,873,802,224

2010/11 5,015,477,609 1,461,492,477 1,233,362,699 464,532,058 8,174,864,843

Figure 1: Revenue Trend Chart



Ms. Rose M. Lugembe

Vice Chairperson

Mr. Makumba Kimweri

Member

Mr. Joseph Chilambo

Member

Mr. Issa M. Suleiman

Member

Amb. Christopher Liundi

Chairperson

Mr. Wilfred Nyachia

Member

Dr. Aggrey Mlimuka

Member

Hon. Zainab R. Kawawa (MP)

Member

Ms Nuru H. M. Millao

Member

Mr. Shaban Mnubi

Member


Board of Directors

Mr. Leonce Anthony

Chief Internal Auditor

Mr. Eliakim Samwel

Head of Procurement Management Unit

Mr. Savo S. Mung’ong’o

Director of Finance and Administration

Prof. Sendui Ole Nguyainei

Director of Hospital Services

Ms. Mkunde Senyagwa

Director of Conferences and Marketing

Arch. Paul K. Ndosa

Director of Estate and Projects

Mr. Elishilia D. Kaaya

Managing Director


Management Team


Job creation

During the period under report, the Centre’s permanent staff complement was 127 being 64 female and 63 male. It also signifi cantly contributed to both direct and indirect job creation in the Arusha City and Tanzania at large through spillover eff ect.

Human resource development

The Centre continued to off er sponsorship to its employees both in short and long term courses within and outside the country on various disciplines as specifi ed on the Centre’s Training Program. Tailor made programmes were also conducted for customer care, preparation for life after retirement and information technology as a strategy of costs reduction.

Working relationships

Members of staff continued to enjoy harmonious working relationship through Workers Council and departmental meetings. The annual party and Mayday celebrations which are conducted annually brought together employees at leisure time.

Performance recognition and incentive

In this fi nancial year, AICC continued to implement its incentive policy, which includes awarding best workers aimed at recognising the outstanding performance of individual employees. Awards are based on various performance criteria set in appraisal forms and OPRAS.

The Centre met medical and bereavement expenses to its employees and their immediate dependants through National Health Insurance Fund and as provided in Incentive Scheme.


Human Resource Management

AICC Corporate Social Responsibility Initiative (CSR)

Arusha International Conference Centre (AICC) believes that its business cannot grow if it operates in a non-sustainable social and economic and environment. It is for this reason the Centre has a clear Corporate Social Responsibility (CSR) Initiative committed to contributing towards the sustainable social and economic development of Arusha communities and Tanzania as a whole.

To achieve this, for the period of 2010/2011 AICC through its CSR Initiative had supported various community initiatives and the general public such as schools, communities, vulnerable individuals, and students, to mention but a few. However special mention is attributed to the contribution made as a consolation to the victims of Gongo la Mboto bomb blasts in Dar es Salaam. The total support given out for the period is amounting to 25,848,500.

Practical training window for students

AICC, in collaboration with training institutions offi cered opportunities for practical training to students from all over Tanzania to obtain skills and experience in diff erent fi elds of studies by working at the Centre for a period from one month to six months. Specifi c focus areas included conferences & marketing, fi nance, administration, estates, hospital and public relations & protocol. During the year under review, a number of these interns were off ered employment elsewhere.



Governance

The good Governance process at AICC has been tested, is being tested and will continue to be tested. As for any other corporate process, several things are involved: the internal controls which aim at checking possible lopsided or lop siding; and, on the other hand, risk management which is geared toward identifying, assessing, deciding on response to, and reporting on opportunities and threats that aff ect the achievement of its objectives. While it is the duty of the Management to ensure that the governance process is handled with due care, the Board of Directors through its various committees has continuously ensured that good governance is given the priority it deserves. It is on this premises that AICC has managed to cross over the fi nancial year 2010/11 with minimal adverse impact on issues relating to governance and readying for future trials.

The internal audit unit, while mainly tasked for assurance and consulting service to the organization by evaluating and improving the eff ectiveness of risk management, controls and governance process, during the ending fi nancial year spent almost half of its productive time in consulting assignments. Most of these assignments were conducted in team-working, aimed at fostering an environment that give assurance that controls are not only in place but also that they are current, aligned to other public policies and regulations and at the same time, working for the betterment of the organization and its stakeholders.

During the fi nancial year 2010/11, employees of the Centre, without whom many operating activities wouldn’t be achieved, played an important role in ensuring achievement of governance process at the Centre.


Conference Services

In the fi nancial year 2010/2011, the Centre hosted a total 84 meetings, a 10% increase in number of meetings compared to last year’s performance. Out of these meetings, 30 were local and 19 were international and the remaining 35 were regional meeting. All these meeting brought to Tanzania and Arusha in particular a total of 22,997 conference delegates which is a 40% increase in number of people attending meetings at the Centre.

The Centre faces shortage of adequate space in meeting rooms, exhibition areas and banqueting facilities.Nevertheless, the following high profi le meetings were hosted at the Centre successfully.

• BOT Joint Seminar on Financial markets • East African Council of Ministers • IET International Seminar • PSPTB Annual Conference • NSSF Annual Member Meeting • Tanganyika Law Society General Meeting • RETOSA Board Meeting • TRA Annual Meeting • Eastern And Southern African Anti-Money Laundering Group • TAPSEA fi rst Annual Meeting • The 3rd Diaspora shareholders coordination meeting • CRDB annual General Meeting • NIMR Annual Scientifi c Conference • PPF Annual Meeting • Forever Living Meeting • UWT-Arusha



Marketing Activities

Promotional and marketing activities for the Centre continued aiming at retaining and increasing local customers, but also the Centre increased eff orts at increasing international meetings.

The Centre used local media in print and television; while internationally the Centre advertised in the Worldwide Convention Centres Directory, Association Meetings International (AMI), Selling Tanzania and BEDOUK Magazine. These magazines and directorates are distributed to international Professional Conference Organizers (PCO) and industry trade fair.

The Centre has increase eff orts in increasing leads by using the available databases in the meeting industry especially ICCA database and Bedouk, where there is information on possible meetings that the Centre can host.

In this fi nancial year, AICC participated in both local and international exhibitions. Locally, AICC participated in Karibu Fair, a travel and tourism exhibition, which is organized yearly at Magereza grounds in Arusha. This locally organized fair, is gaining regional and international recognition very fast and thus, the Centre had an opportunity of increasing awareness of its services and facilities to both regional and international visitors.

AICC was also among the participants under the Ministry of Foreign Aff airs stand in the “Public Service Management Week” at Mnazi Mmoja ground in Dar es Salaam. AICC represented the counrty well in the international MICE (Meeting, Incentives, Conferences, and Exhibtions) trade fair, in EIBTM (Events, Incentives, Business Travel) which takes place yearly in Barcelona, Spain and IMEX (Incentives, Meetings and Exhibitions) which also takes place yearly in Frankfurt, Germany.


Figure 2: Conference’s Income Trend for the past 5 years

2,500,000,000

2,000,000,000

1,500,000,000

1,000,000,000

500,000,000

02006/07 2007/08 2008/09 2009/10 2010/11



The department continued to perform its traditional role of property management together with projects development. The overall objective being realization of maximum returns from the existing property and development of new ones to increase the Center’s revenue and increase housing stock in Arusha Municipality.

In the year under review several activities were performed towards realization of the mentioned objective as follows:-

(i) Repair and maintenance of the housing stock and offi ce complex(ii) Purchase of new equipments (iii) Development of new housing and commercial projects(iv) Various Estate Policies(v) Preparations for upgrading/development of AICC hospital

Repair and maintenance of properties

Repair and maintenance works were executed in 479 housing units, offi ce complex and conference facilities to enhance their value and aesthetic conditions.

Repair and maintenance works were also carried out at the hospital including modernization of consultation rooms, construction of shade for visitors, and plumbing works.

Major works done were the rehabilitation of hospital theatre room and completion of rehabilitation of one block of fl ats at Kijenge Estate.

Purchase of new equipment

New standby generator of 600 KVA was purchased and installed at head quarters complex to arrest the problem of power interruptions and rationing.

New modern equipments like theatre lamp was purchased and installed at the hospital.

Estates and Projects


New commercial and housing projects

Preliminary preparations for construction of state-of-the art convention Centre at Kijenge site, commercial complex at Kaloleni Estate and three blocks of fl ats in Corridor area and Amani Road were conducted.

Estate Policies

Preparation of AICC Estate Management Policy and Joint Venture Policy was completed and approved by the Board of Directors for use. Preparation of Property Management data base (Property Handler) was initiated.

AICC Hospital Development

Initial preparations for development of AICC hospital in order to expand medical services were carried out. This includes consultant’s report on operations of hospital services and requirements for the proposed development.

Income Generated from Estates for the Period of 2006/07 - 2010/11

6,000,000,000

5,000,000,000

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

02006/07 2007/08 2008/09 20010/112009/10

O� ce House Total

The exterior views of proposed residential blocks of fl ats which AICC intends to undertake on plots number 138 Block E, Amani Road and 22 River Road respectively. The project which starts on the third quarter of 2011-2012 fi nancial year, will not only increase revenue to the Centre but also give new facelift of Arusha City.



Hospital Services

The Center’s Hospital continued with its provision of good quality services to its clients. During this period a total of 1,295 in-patients and 47,291 out-patients were attended in diff erent clinics both general and specialized. The main theatre had a total of 198 major operations and 156 minor procedures respectively. The number of clients has increased tremendously as a result of increased number of staff when compared to the previous year by 7 percent (i.e.July2009-June2010 had a total of 34,642 patients whereas in this period the total number of patients is 48,586).

Care and Treatment Clinic (CTC) which is now 6 years old had registered 586 clients who came for voluntary Counseling and Testing (VCT) services. Of the total enrollees 24 were children below 14 years old.

Patients Statistics for the Past Five(5) Years

50,000

40,000

30,000

20,000

10,000

02006/07 2007/08 2008/09 2009/10 2010/11

Outpatients Inpatients Total


Upgrading the Hospital Services

The Hospital is constantly upgrading its facilities and services in order to maintain its competitive position among Arusha hospitals. It was during this period when the hospital acquired a new generator which has off set the problem of power interruptions. Furthermore the renovation of consultation rooms has totally changed the look of our hospital. The addition of patients waiting lounge has solved the problem of crowding at the reception desk.

Hospital’s Income for the Past 5 years

Hospital’s Income for the Past 5 years

1,600,000,000

1,400,000,000

1,200,000,000

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

1,600,000,000

1,400,000,000

1,200,000,000

1,000,000,000

800,000,000

600,000,000

400,000,000

200,000,000

2006/07

2006/07(200,000,000)

-

2007/08

2007/08

2008/09

2008/09

2009/10

2009/10

2010/11

2010/11



1.0 Introduction The Directors hereby submit their report together with the audited fi nancial statements for the year

ended 30th June, 2011 which disclose the fi nancial position of Arusha International Conference Centre. The audited statements are set out on page 9 to page 29 of the report.

2.0 Directors Members of the Board of Directors who served the Arusha International Conference Centre with

eff ect from 14th November, 2009 are as stated below:

NAME STATUS NATIONALITY

1. Amb. Christopher Liundi Chairperson Tanzanian2. Ms. Rose Lugembe Vice Chairperson Tanzanian3. Mr. Wilfred Nyachia Member Tanzanian4. Mr. Joseph F. Chilambo Member Tanzanian5. Hon. Lazaro Nyalandu (MP) Member Tanzanian (up to December, 2010) 6. Hon. Zainabu R. Kawawa (MP) Member Tanzanian (w.e.f. January, 2011)7. Mr. Issa M. Suleiman Member Tanzanian8. Mr. Shaaban B. H. Mnubi Member Tanzanian9. Ms. Nuru Millao Member Tanzanian10. Dr. Aggrey Mlimuka Member Tanzanian11. Mr. Makumba T. Kimweri Member Tanzanian12. Mr. Elishilia D. Kaaya Secretary Tanzanian

Audit Report on the Financial Statements

Audit Report on the Audit Report on the


3.0 Statement Of Directors’ Responsibilities in Respect of the Financial Statements The Directors are responsible for the preparation of fi nancial statements of Arusha International

Conference Centre which show a true and fair view of the state of aff airs of the Centre in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).

The Directors confi rm that suitable accounting principles have been used and applied consistently

and reasonable and prudent judgements and estimates have been made in the preparation of the fi nancial statements for the year ended 30th June, 2011. The Directors also, confi rm that applicable accounting standards have been followed and that the fi nancial statements have been prepared on a going concern basis.

The Directors are responsible to ensure that the Centre keeps proper accounting records that

disclose with reasonable accuracy at any time the fi nancial position of the Centre. They are also, responsible for safeguarding the assets of the Centre and hence, for taking reasonable steps for the prevention and detection of fraud, errors, and other irregularities. The Directors are also, responsible for the maintenance of an adequate system of internal controls.

4.0 PRINCIPAL FUNCTIONS OF ARUSHA INTERNATIONAL CONFERENCE CENTRE

The objectives of the Centre include:

- To manage and control the headquarters complex of the defunct East African Community and all other premises and lands in Arusha City that belonged to the defunct East African Community.

- To provide facilities and services in the complex for the purpose of conferences, meetings, seminars, etc.

In exercising its functions of control and management, the Centre shall have due regard to:

- The political, economic and social aspirations of the people of the United Republic of

Tanzania. - The health and general welfare of the members of the public by guiding its operations in

a manner that conserves the environment in a coherent and sustainable way. - Crucial to this, is the Centre’s societal responsibility where AICC has nursed a strong sense

of belonging among the local communities, not only in Arusha region and the city, but also nationally.



5.0 ARUSHA INTERNATIONAL CONFERENCE CENTRE’S PERFORMANCE AND FUTURE DEVELOPMENT

5.1 Performance

For the past six years (2005/2006 to 2010/2011), audit reports have indicated that:

- Closing of fi nal accounts has been done on time and within the statutory provisions for each fi nancial year and got clean certifi cates.

- Annual reports based on the audited accounts were prepared and presented before the

relevant parliamentary committee and subsequently tabled before the Parliament through the Minister for Foreign Aff airs and International Co-operation as per the governing legislation.

- There has been a systematic increase in the Centre’s income. - AICC has in place a well-articulated Corporate Plan that guides the organization in its

operations both in the short term and the foreseeable future.

The main factors that led to the above situation were:

- Having in place appropriately trained personnel to man the Centre’s operations. - Careful and continuous evaluations and analysis of the underlying business environment

that is followed by appropriate measures by the Board of Directors. 5.2 Future Development and/or Plans

- The vision of the Centre is to be a sustainable world class congress-tourism centre.

- The mission of the Centre is to promote and provide quality congress tourism services to national and international clientele for enhanced national, social and economic development.

- AICC therefore endeavors to off er quality and eff ective international congress tourism services, quality offi ces, residential accommodation and medical services in Africa.

6.0 SOLVENCY OF THE CENTRE The Directors have reviewed the current fi nancial position of the Centre. On the basis of the review,

the Directors are of the opinion that the Centre is on sound fi nancial footing, being able to meet all its current and maturing fi nancial obligations without any hindrance.


7.0 EMPLOYEES WELFARE The Centre has the following employees’ welfare arrangements: 7.1 Training The Centre off ers sponsorship to its employees both in short and long term courses within and

outside the Country on various disciplines based on guidelines issued from time to time. 7.2 Medical Facilities The Centre meets fully the cost of medical consultation and treatment for all employees and their

immediate dependants as stipulated by the Centre’s staff regulations. 7.3 Relationship Between Management and Employees There is a systematic procedure of communication with employees on a regular basis, which is

done through department meetings, management and staff meetings as well as through notice boards, circulars or through workers’ council meetings. Participatory approach is used as a method of reaching pertinent decisions aff ecting the entire workforce.

8. PERSONS WITH DISABILITIES It is the Centre’s policy to give equal opportunities to persons with disabilities for vacancies they

are able to fi ll. Employment by the Centre is therefore non-discriminatory and complies with international conventions relating to the Bill of Rights.

9 GENDER BALANCE Arusha International Conference Centre gives equal opportunity to all Tanzanians during recruitment

and fi lling of Management positions provided that they have the necessary qualifi cations, qualities and abilities regardless of their gender. As at 30th June, 2011 there were 60 males and 66 females.

10 CORPORATE GOVERNANCE Arusha International Conference Centre puts emphasis to highest Standards of Good Corporate

Governance. The organizational structure is fl exible and accommodates changes from internal as well as external environment. Moreover, the Centre periodically reviews its rules and regulations with a view to ensuring the best performance. The Centre adheres to the global standards and practices of good corporate governance. In doing so, the Centre has established and maintains Tender Board, an Internal Audit Unit and Procurement Management Unit.



11 ENVIRONMENTAL PROTECTION Arusha International Conference Centre implements Government’s Policy and Directives on

environmental conservation. The Centre preserves the environment through tree planting, an activity which is being carried out throughout the year.

12 HIV/AIDS POLICY The management of HIV/AIDS is an important challenge for the Arusha International Conference

Centre (AICC). AICC has determined some risks associated with an impact of HIV/AIDS as follows: operational risk, legal risk and health risk.

While all these risks are under investigation, AICC has adopted the following core principles as a basis for its HIV/AIDS policy.

Continuously assess the risk posed by HIV/AIDS on the operations of the Centre. Limit the number of new infections among the employees. Ensure employees living with HIV/AIDS are aware of their rights and that their rights are respected

and protected. Provide care and support to employees and living with HIV/AIDS.

13 STATUTORY AUDITORS The Controller and Auditor General (CAG) is the statutory auditor of the Centre by virtue of Article

143 of the constitution of the United Republic of Tanzania, and as amplifi ed in Section 32 (4) of the Public Audit Act No.11 of 2008. However, in accordance with section 33 of the same Act, M/S AMAS Associates were authorised to carry out the audit of the Centre on behalf of the Controller and Auditor General.

By Order of the Board ………………………………… ………………………………. CHAIRPERSON DATE:



Senior Offi cial with Bank of Tanzania, Ms. Gloria Maganga (right) receives a trophy from the Minister of Labour and Employment, Hon. Gaudensia Kabaka, during the National Social Security Fund (NSSF) Annual General Meeting held at AICC in 2011. Looking on are NSSF Director General, Dr. Ramadhan Dau (left), Chairman of the Board f Trustees of NSSF, Mr. Abubakar Rajab (second left) and Deputy Minister for Labour and Employment, Hon. Makongoro Mahanga (centre).

King of Ashanti Kingdom of Ghana, His Majesty Otumfuo Osei Tutu II and his delegation pose for a group picture with East African Community (EAC) and AICC offi cials when he visited AICC Complex where he also had talks with offi cials of the International Criminal Tribunal for Rwanda (ICTR). Seated with him are Former President of Tanzania, His Excellence, Benjamin Mkapa (left), EAC Secretary General, Amb. Dr. Richard Sezibera (centre) and former Arusha Regional Commissioner, Hon. Isdory Shirima


AUDIT REPORT ON THE FINANCIAL STATEMENTS REF: REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON FINANCIAL STATEMENTS OF ARUSHA

INTERNATIONAL CONFERENCE CENTRE FOR THE YEAR ENDED 30TH JUNE 2011 I have audited the accompanying fi nancial statements of the Arusha International Conference Centre

which comprise the Statement of Financial Position as at 30th June, 2011, Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity for the year then ended and a summary of signifi cant accounting policies and other explanatory notes set out from pages 9 to 29 of this report.

Directors’ Responsibility for the Financial Statements The Directors are responsible for the preparation and fair presentation of these fi nancial statements in

accordance with International Financial Reporting Standards. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of fi nancial statements that are free from material misstatements, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Responsibility Of The Controller And Auditor General My responsibility as an auditor is to express an independent opinion on the fi nancial statements based

on the audit. The audit was conducted in accordance with International Standards on Auditing (ISA) and International Standards of Supreme Audit Institutions (ISSAI) and such other audit procedures I considered necessary in the circumstances. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures

in the fi nancial statements. The procedures selected depended on auditor's judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the Arusha International Conference Centre's preparation and fair presentation of the fi nancial statements in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the Centre's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.

In addition, Sect. 10 (2) of the PAA of 2008 requires me to satisfy myself that the fi nancial statements have been kept in accordance with the appropriate accounting standards and that; reasonable precautions have been taken to safeguard the collection of revenue, the receipt, custody, disposal, issue and proper use of public property, and that the law, directions and instructions applicable thereto have been dully observed, expenditures of public monies have been properly authorised.

Furthermore, Sect.44 (2) of the Public Procurement Act No. 21 of 2004 and Regulation No. 31 of the

Public Procurement (Goods, Works, Non-consultant services and Disposal of Public Assets by Tender) Regulations of 2005 requires me to state in my annual audit report whether or not the auditee has complied with the provisions of the Law and its Regulations.


I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my

audit opinion. UNQUALIFIED OPINION In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of

the Arusha International Conference Centre as at 30th June, 2011, and its fi nancial performance and its cash fl ows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) and comply with the Public Audit Act No. 11 of 2008 and the Arusha International Conference Centre (Establishment) Order, 1978 issued under Government Notice No. 115 published on 25th August, 1978.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS Compliance with Public Procurement Act In view of my responsibility on the procurement legislation, and taking into consideration the

procurement transactions and processes reviewed as part of this audit, the Arusha International Conference Centre has generally complied in all material respects with the provisions of the Public Procurement Act, 2004 and its related Regulations of 2005.

Jumaa J. Mshihiri Ag. CONTROLLER AND AUDITOR GENERAL The National Audit Offi ce, P. O. Box 9080, DAR ES SALAAM 19th December, 2011



ASSETS

Non Current Assets

Property, Plant and EquipmentInvestment PropertyIntangible AssetsTotal Non Current Assets

Current Assets

InventoriesTrade and Other ReceivablesProvision for TaxationFixed DepositsCash and Cash EquivalentsTotal Current Assets

TOTAL ASSETS

EQUITY AND LIABILITIES

Capital and Reserves

Capital FundCapital GrantsRevaluation ReserveAccumulated Surplus/(Defi cit)Total Equity

Non Current Liabilities

Security DepositsDeferred Tax LiabilityTotal Non Current Liabilities

Current Liabilities

Trade and Other PayablesCash and Cash EquivalentsTotal Current Liabilities

Total Liabilities

TOTAL EQUITY AND LIABILITIES

30.06.2011TZS

3,004,328,13418,183,438,238

021,187,766,372

190,395,0362,378,913,005

226,555,400864,840,219

1,951,292,1955,611,995,854

26,799,762,226

183,453,7221,747,109,833

22,251,330,125462,269,209

24,644,162,889

106,784,0111,283,205,4581,389,989,469

765,609,8680

765,609,868

2,155,599,336

26,799,762,226

30.06.2010TZS

3,196,584,82518,477,903,785

2,296,69621,676,785,306

176,066,3962,471,897,211

361,855,350307,224,000

1,408,791,4024,725,834,360

26,402,619,666

183,453,7221,775,794,833

22,251,330,125-69,336,111

24,141,242,569

86,473,1601,152,592,035

1,239,065,195

742,102,352280,209,550

1,022,311,902

2,261,377,097

26,402,619,666

NOTE

567

89101112

13141516

1718

1920

STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2011

NOTES 1 TO 31 FORM PART OF THESE FINANCIAL STATEMENTS. AUDITORS REPORT ON PAGES 6, 7 AND 8.

…………… ……………………… ………………………CHAIRPERSON DIRECTOR DATE




INCOME

Offi ce RentHouse RentMedical IncomeConference IncomeOther IncomeTOTAL

LESS: EXPENDITURE

Administrative ExpensesMarketing ExpensesFinancial ExpensesOperational ExpensesOther ExpensesDepreciation and Amortisation Expense

TOTAL EXPENDITURE

SURPLUS/(DEFICIT) BEFORE TAXATION

LESS: INCOME TAX EXPENSE

SURPLUS/(DEFICIT) AFTER TAXATION

2010/2011TZS

3,577,369,4491,438,108,1601,461,492,4771,233,362,699

464,532,0588,174,864,843

2,485,900,658262,558,993

20,723,3233,284,109,864

270,260,0381,053,793,274

7,377,346,150

797,518,693

265,913,373

531,605,320

2009/2010TZS

2,967,291,7711,384,354,0301,084,292,6922,114,509,513

323,354,2197,873,802,224

1,873,025,006220,198,748

23,125,2673,045,745,044

116,878,5921,034,360,292

6,313,332,949

1,560,469,275

571,578,989

988,890,286

NOTE

21

2223242526

27

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30TH JUNE, 2011



CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts From Customers Cash Paid to Suppliers and Employees CASH GENERATED FROM OPERATIONS Tax Paid During the Year NET CASH FROM OPERATIONS CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of PPE Acquisition of Investment Property Proceeds - Disposal of PPE NET CASH USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Security Deposits NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENT AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENT AT THE END OF THE YEAR

2010/2011TZS

7,665,769,192

6,300,045,360

1,365,723,833

0

1,365,723,833

-488,906,539-78,617,802

4,200,000

-563,324,341

802,399,492

20,310,851

822,710,343

1,128,581,852

1,951,292,195

2009/2010TZS

6,728,270,658

5,336,677,523

1,391,593,136

91,126

1,391,502,010

-307,887,8160

16,162,600

-291,725,216

1,099,776,793

27,426,747

1,127,203,540

1,378,311

1,128,581,852

NOTE



STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30TH JUNE, 2011


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE, 2011

Balance As At 1st July, 2009

Surplus/(Defi cit For the Year

Less: Amortisation of Capital Grants

Balance As At 30th June, 2010

Balance As At 1st July, 2010

Surplus/(Defi cit For the Year

Less: Amortisation of Capital Grants

Balance As At 30th June, 2011

Capital Grants

TZS

1,856,341,597

-80,546,764

1,775,794,833

1,775,794,833

0

-28,685,000

1,747,109,833

Accumulated Surplus/ (De� cit)

TZS

-1,058,226,397

988,890,286

-69,336,111

-69,336,111

531,605,320

462,269,209

Capital Fund

TZS

183,453,722

183,453,722

183,453,722

0

183,453,722

Revaluation Reserve

TZS

22,251,330,125

22,251,330,125

22,251,330,125

0

22,251,330,125

TOTAL EQUITY

TZS

23,232,899,047

988,890,286

-80,546,764

24,141,242,569

24,141,242,569

531,605,320

-28,685,000

24,644,162,889





NOTES ON THE ACCOUNTS

NOTE: 1 LEGAL STATUS Arusha International Conference Centre was established under the Public Corporations Act,

1969, by a Presidential Order, viz, the Arusha International Conference Centre (Establishment) Order, issued through Government Notice No. 115 published on the 25th August, 1978.

The main objectives for which the Centre was established include:- To manage and control the headquarters complex of the defunct East African Community

and all other premises and lands in Arusha City which belonged to the defunct East African Community.

To provide facilities and services in the complex for the purposes of conferences, meetings, seminars, etc.

The Centre is a public corporation incorporated under the Public Corporation Act, 1969

and domiciled in Arusha city. The address of the registered offi ce is P. O. Box 3081, Arusha. Tanzania.

NOTE: 2 BASIS OF PREPARATION The fi nancial statements have been prepared under the historical cost convention. No

adjustments have been made for infl ationary factors aff ecting the accounts. The preparation of fi nancial statements in conformity with IFRS requires the use of certain critical

accounting estimates. It also requires management to exercise its judgment in the process of applying the Centre’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are signifi cant to the fi nancial statements are separately disclosed in a note.

NOTE: 3 STATEMENT OF COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING

STANDARDS The fi nancial statements for the year ended 30th June, 2011 and the comparative fi gures for

the previous year have been prepared in accordance with International Financial Reporting Standards (IFRSs) and all applicable interpretations issued by the International Accounting Standards Board (IASB). The Centre adopted IFRSs in the fi nancial year ended 30th June, 2005 with a transition date being 1st July, 2003.


NOTE: 4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 4.1 PROPERTY, PLANT AND EQUIPMENT 4.1.1 Owned Assets Property, plant and equipment are stated at cost as deemed cost less accumulated depreciation

and any accumulated impairment losses. The cost of self-constructed assets includes the cost of materials, direct labour, the initial estimate, where relevant, of the costs of dismantling and removing the items and restoring the site on which they are located, and an appropriate proportion of production overheads.

Certain items of property, plant and equipment that had been revalued to fair value on or prior

to 1st July, 2003, the date of transition to IFRSs, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Property that is being constructed or developed for future use as investment property is

classifi ed as property, plant and equipment and stated at cost until construction or development is complete, at which time it is reclassifi ed as investment property.

Where parts of an item of property, plant and equipment have diff erent useful lives, they are

accounted for as separate items of property, plant and equipment. 4.1.2 Revaluation During the year ended 30th June, 2008 the Centre revalued its items of Property, Plant and

Equipment comprising of Plant and Machinery, Offi ce, Conference and Hospital Furniture and Equipment and Domestic Furniture and Equipment. Thus, adopting the revaluation model. The eff ective date of revaluation was 31st December, 2007. The revaluation of such items in future would be conducted after every fi ve years. The revaluation surplus would be credited to a Revaluation Reserve Account.

4.1.3 Subsequent Costs Subsequent costs (major renovation costs) are included in the asset’s carrying amount or are

recognized as a separate asset, as appropriate, only when it is probable that future economic benefi ts associated with the item will fl ow to the Centre and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the fi nancial year in which they are incurred.

4.1.4 Depreciation Land is not depreciated. Depreciation on other assets is calculated using the straight-line

method to reduce the cost of each asset to its residual value over its estimated useful life at a given rate per annum as detailed below:



Asset Description Rate Per Annum % Buildings 1.5 Plant and Machinery 12.5 Offi ce, Conference and Hospital Furniture 10.0 Offi ce, Conference and Hospital Equipment 20.0 Domestic Furniture and Equipment 15.0 Motor Vehicles 25.0 Fixtures and Fittings 10.0 Depreciation is charged on assets from the date when they are ready for use and stop on the

date when the asset is derecognized by the Centre. Assets that are subject to depreciation are reviewed for impairment whenever events or

changes in circumstances indicate that the carrying amount may not be recoverable.

Gains and losses on disposal are determined by comparing the disposal proceeds with the carrying amount and are credited/charged to the statement of comprehensive income.

4.2 INVESTMENT PROPERTY Investment property is a property which is held either to earn rental income or for capital

appreciation or for both. Cost model is the policy adopted by the Centre for measuring investment property.

Investment property is stated at cost less subsequent accumulated depreciation and any

accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item.

4.2.1 Subsequent Costs Subsequent costs (major renovation costs) are included in the asset’s carrying amount or are

recognized as a separate asset, as appropriate, only when it is probable that future economic benefi ts associated with the item will fl ow to the Centre and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the fi nancial year in which they are incurred.

Investment property that had been revalued to fair value on or prior to 1st July, 2003, the date

of transition to IFRSs, is measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.


4.2.2 Depreciation Land is not depreciated. Depreciation on buildings is calculated using the straight-line method

to reduce the cost of each asset to its residual value over its estimated useful life at a rate of 1.5% per annum.

Depreciation is charged on investment properties from the date when they are ready for use

and stop on the date when the respective asset is derecognized by the Centre.

Investment properties are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Gains and losses on disposal are determined by comparing the disposal proceeds with the

carrying amount and are credited/charged to the statement of comprehensive income.

4.3 INTANGIBLE ASSETS Intangible assets, including computer software, that are acquired by the Centre are stated at

cost less accumulated amortization and impairment losses. 4.3.1 Subsequent Costs Subsequent costs on capitalized intangible assets are capitalized only when they increase the

future economic benefi ts embodied in the specifi c asset to which they relate. All other costs are expensed as incurred.

4.3.2 Amortisation Amortisation is charged to the statement of comprehensive income on a straight-line basis

over the estimated useful lives of intangible assets unless such lives are indefi nite. Goodwill and intangible assets with an indefi nite useful life are systematically tested for impairment at the end of each reporting period. Other intangible assets are amortised from the date they are available for use. The estimated useful life for the computer software is 5 years.

4.4 INVENTORIES Inventories are stated at the lower of cost and net realizable value. Net realizable value is the

estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The cost is based on the fi rst in fi rst out (FIFO) principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. The FIFO principle has been consistently applied.

4.5 PROVISION FOR IMPAIRMENT OF RECEIVABLES Receivables are recognized initially at fair value and subsequently measured at fair value

less provision for impairment. Specifi c provision is made in the fi nancial statements against receivables considered to be doubtful of recovery.



4.6 FOREIGN CURRENCY TRANSLATIONS 4.6.1 Functional and Presentation Currency The fi nancial statements are presented in Tanzania Shillings, which is the Centre’s functional and

presentation currency. 4.6.2 Transactions and Balances Foreign currency transactions are translated into Tanzanian shillings at the rates of exchange

ruling at the dates of the transactions. Monetary assets and liabilities at the year end expressed in foreign currencies are translated into Tanzanian shillings at the rates of exchange ruling at the end of the fi nancial year. The resultant gains/losses on exchange rate translations are dealt with in the statement of comprehensive income. The rate that was adopted at the end of the reporting period was TZS 1,559.50 equivalent to USD 1.

4.7 CASH AND CASH EQUIVALENTS Cash and cash equivalents are carried in the statement of fi nancial position at face value. For the

purpose of statement of cash fl ows, cash and cash equivalents comprise cash in hand, deposits held on call and fi xed deposits maturing within the next three months.

4.8 INCOME RECOGNITION Income is recognized on accrual basis of accounting. Income is recognised only when it is

probable that the economic benefi ts associated with the transaction will fl ow to the Centre.

4.9 INCOME RELATED GRANTS Funds received by the Centre from the Government or other donors for meeting operating

costs and expenses are credited to the statement of comprehensive income. 4.10 CAPITAL GRANTS Capital grants received from the Government or other donors in form of property, plant and

equipment or funds, whose primary condition is that the Centre should purchase, construct or otherwise acquire long term assets, are deferred to capital grants account and released to the statement of comprehensive income over the expected useful lives of relevant property, plant and equipment. The amount allocated annually to the statement of comprehensive income equals to the depreciation charge relating to that capital grant.


4.11 PROVISIONS Provisions are recognised when the Centre has a present legal or constructive obligation as

a result of past events, it is probable that an outfl ow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. When the Centre expects a provision to be reimbursed, for example under insurance contract, the reimbursement is recognised as a separate asset only when the reimbursement is virtually certain.

4.12 IMPAIRMENT OF ASSETS Assets that have an indefi nite life are not subject to amortization and are tested annually for

impairment. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the amount by which the assets’ 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. For the purposes of assessing impairment, assets are grouped at the lowest level for which there is separately identifi able cash fl ows (cash generating units).

4.13 EMPLOYEES BENEFITS 4.13.1 Retirement Bene� ts Arusha International Conference Centre has statutory obligations to contribute to various

pension schemes in favour of all the employees employed under permanent and pensionable terms. The pension schemes in force which the Centre contributes include the Parastatal Pension Fund (PPF) and National Social Security Fund (NSSF).

Contributions to these funds are recognised as an expense in the period the employees render

the related services. The Centre has no legal or constructive obligations to pay further contributions if the Funds

have no suffi cient assets to pay all employees the benefi ts relevant to their services in the current and prior period.

4.13.2 Short Term Bene� ts The cost of all short-term employee benefi ts such as salaries, employees entitlements to leave

pay, medical aids, long service award, other contributions, etc. are recognised during the period in which the employees render the related services.

4.13.3 Termination Bene� ts Termination benefi ts are payable whenever an employee’s employment is terminated before

the normal retirement date or whenever an employee accepts voluntary redundancy in exchange of these benefi ts.



The Centre recognises termination benefi ts when it is constructively obliged to either terminate the employment of the current employees according to detailed formal plan without possibility of withdrawal or to provide termination benefi ts as a result of an off er made to encourage voluntary redundancy.

4.14 RISK MANAGEMENT Risk is an inherent feature of the activities of any institution. Arusha International Conference

Centre endeavours to manage risk by having in place appropriate functional structures, systems and procedures. These structures, systems and procedures evolve continuously in response to changes in the environment in which the Centre operates. The following are the main types of risks the Centre is exposed to in the course of executing its operations:

- Operational Risk - Liquidity Risk - Credit Risk (i) Operational Risk Operational risk is the risk of loss both fi nancial and non-fi nancial resulting from inadequate

systems, management failures, ineff ective internal control processes, fraud, theft, and human errors. The Centre addresses this risk, inter alia, through ensuring existence of a sound internal control system.

Managing operational risk in the Centre is an integral part of the day to day operations by the

management. This risk is closely monitored by management and the Board of Directors.

(ii) Liquidity Risk Liquidity risk is the risk that the Centre faces by not having adequate funds to settle day to day

obligations as they fall due. The Centre has a prudent liquidity risk management through which it maintains suffi cient cash to cover committed credit facilities received, working capital as well as capital project requirements. Liquidity risk management by the Centre includes forward planning and close monitoring by the fi nance department.

(iii) Credit Risk Potential credit risk involves short term cash deposits and trade and other receivables. Risk

relating to short term cash deposits is managed through ensuring that cash surpluses are deposited with banks of high credit standing.

Management of risk associated with trade and other receivables includes prompt invoicing,

close follow up and requiring regular customers to deposit money in advance to cover for services to be rendered.


DESCRIPTION

Cost/Valuation As At 01.07.2010

Revaluation Reserve

Additions During the Year

Adjustments/Disposals

Revaluation Reserve


Accumulated Depreciation and

Impairment As At 01.07.2010

Revaluation Reserve

Charge During the Year


Accumulated Depreciation and

Impairment As At 30.06.2011

Carrying Amount As At 30.06.2011

LAND AND

BUILDINGS

TZS

507,414,784

402,400

0

507,817,184

110,993,802

7,623,294

0

118,617,096

389,200,088

PLANT AND

MACHINERY

TZS

85,270,000

216,380,406

0

301,650,406

26,646,875

16,525,436

0

43,172,311

258,478,095

OFFICE,

CONFERENCE

AND HOSPITAL

FURNITURE

TZS

1,388,481,239

25,245,382

0

1,413,726,621

292,647,836

137,035,585

0

429,683,421

984,043,200

OFFICE,

CONFERENCE

AND HOSPITAL

EQUIPMENT

TZS

1,978,793,720

76,480,524

-5,000,000

2,050,274,244

817,338,350

388,321,762

-2,250,000

1,203,410,111

846,864,133

NOTE: 5 PROPERTY, PLANT AND EQUIPMENT



DOMESTIC

FURNITURE

AND

EQUIPMENT

TZS

99,302,402

4,575,169

0

103,877,571

28,581,428

14,780,057

0

43,361,485

60,516,086

FIXTURE AND

FITTINGS

TZS

470,745,147

2,377,388

0

473,122,535

170,433,351

44,828,226

0

215,261,577

257,860,958

WORKS IN

COURSE OF

CONSTRUCTION

TZS

0

0

0

0

0

0

0

0

0

MOTOR

VEHICLES

TZS

358,835,609

163,445,270

-6,796,008

515,484,871

245,616,434

69,298,869

-6,796,007

308,119,296

207,365,575

TOTAL AS AT

31.12.2010

TZS

4,625,862,025

307,887,816

-44,906,941

4,888,842,900

1,074,851,987

660,313,029

-42,906,941

1,692,258,075

3,196,584,825

TOTAL AS AT

31.12.2011

TZS

4,888,842,900

488,906,539

-11,796,008

5,365,953,431

1,692,258,075

678,413,229

-9,046,007

2,361,625,297

3,004,328,134

NOTE: 5 PROPERTY, PLANT AND EQUIPMENT (continued)


NOTE: 6 INVESTMENT PROPERTY

DESCRIPTION


Additions During the Year



Accumulated Depreciation and Impairment

As At 01.07.2010

Charge During the Year


Accumulated Depreciation and Impairment

As At 30.06.2011



TOTAL AS AT

30.06.2011

TZS

24,636,369,864

78,617,802

0

24,714,987,666

6,158,466,079

373,083,349

0

6,531,549,428

18,183,438,238

18,477,903,785

TOTAL AS AT

30.06.2009

TZS

24,636,369,864

0

0

24,636,369,864

5,788,920,531

369,545,548

0

6,158,466,079

18,477,903,785

LAND AND

BUILDINGS

TZS

24,636,369,864

78,617,802

0

24,714,987,666

6,158,466,079

373,083,349

0

6,531,549,428

18,183,438,238

18,477,903,785



NOTE: 7 INTANGIBLE ASSETS

DESCRIPTION

Cost/Valuation As At 01.07.2010 Additions During the Year Adjustments/Disposals Cost/Valuation As At 30.06.2011 Accumulated Depreciation and Impairment As At 01.07.2010 Charge During the Year Adjustments/Disposals Accumulated Depreciation and Impairment As At 30.06.2011 Carrying Amount As At 30.06.2011Carrying Amount As At 30.06.2010

ANTI VIRUS (E-SCAN)

TZS

8,099,312

0

0

8,099,312

7,424,370

674,943

0

8,099,312

0

674,943

TOTAL AS AT 30.06.2011

TZS

16,437,365

0

0

16,437,365

14,140,669

2,296,696

0

16,437,365

0

2,296,696

COMPUTER SOFTWARE

TZS

2,932,222

0

0

2,932,222

2,932,222

0

0

2,932,222

0

0

1 pc Escam corporate

edition 50 users

TZS

5,405,831

0

0

5,405,831

3,784,078

1,621,753

0

5,405,831

0

1,621,753

TOTAL AS AT 30.06.2010

TZS

16,437,365

0

0

16,437,365

9,638,955

4,501,714

0

14,140,669

2,296,696


NOTE: 8 INVENTORIES Medical Stores Stationery Supplies Building Materials Tools and Spares General Stores - Hardware etc. TOTAL

30.06.2011TZS

101,908,63625,799,68226,283,90813,248,06023,154,750

190,395,036

30.06.2010TZS

98,711,84319,588,17118,586,84517,149,06722,030,471

176,066,396

NOTE: 9 TRADE AND OTHER RECEIVABLES Trade Receivables Prepayments Sundry Receivables Staff Receivables Advance to Suppliers VAT Sub - Total Less: Provision for Impairment

TOTAL

2,509,069,26820,415,793

6,996,433111,777,213

28,283,18685,445,762

2,761,987,654

383,074,649

2,378,913,005

2,492,509,35813,230,606

3,646,282117,024,517

52,081,364129,953,402

2,808,445,529

336,548,317

2,471,897,211

NOTE: 10 PROVISION FOR TAXATION The movement in the provision for taxation during

the year is as follows: Balance As At 1st July Add: Income Tax Expense For The Year Add: Income Tax Expense For Prior Years

Deduct: Payments Made During the Year

Balance As At 30th June

361,855,350112,010,004

23,289,946135,299,950

226,555,400

0

226,555,400

438,500,71576,736,491

076,736,491

361,764,224

91,126

361,855,350



NOTE: 12 CASH AND CASH EQUIVALENTS NBC A/C 01403001564 NBC US$ A/C 0140050000976 CRDB A/C 335260 FBME Bank - Credit Card NBC A/C 014103001552 TOTAL

66,774,2181,560,083,393

93,869,901202,529,099

28,035,583

1,951,292,195

179,001,0171,033,009,977

80,721,230116,059,178

0

1,408,791,402

NOTE: 11 FIXED DEPOSITS Balance

The balance represents funds deposited in fi xed

deposit account at FBME Bank Ltd.

30.06.2011TZS

864,840,219

30.06.2010TZS

307,224,000

NOTE: 14 CAPITAL GRANTS Balance on 01.07.2010 Additions during the Year Amortisation During the Year Balance on 30.06.2010

1,775,794,8330

1,775,794,83328,685,000

1,747,109,833

1,856,341,5970

1,856,341,59780,546,764

1,775,794,833

NOTE: 13 CAPITAL FUND Balance The balance represents value of assets taken over in year 1978 from the defunct East African

Community.

183,453,722 183,453,722


NOTE: 15 REVALUATION RESERVE Balance

30.06.2011TZS

22,251,330,125

30.06.2010TZS

22,251,330,125

NOTE: 16 ACCUMULATED SURPLUS/(DEFICIT)

Surplus/(Defi cit) Brought Forward Surplus/(Defi cit) for the Year Surplus/(Defi cit) Carried Forward

30.06.2011TZS

-69,336,111531,605,320462,269,209

30.06.2010TZS

-1,058,226,397988,890,286-69,336,111

NOTE:17 SECURITY DEPOSITS Balance The balance represents refundable amounts received from tenants of offi ce and residential

houses as security against any damages that may arise during the tenancy period.

106,784,011 86,473,160

NOTE: 18 DEFERRED TAX LIABILITY Balance The above balance of deferred tax liability represents amounts of income taxes payable in

future periods in respect of taxable temporary diff erences arising from diff erences between the carrying amount of an asset or liability in the statement of fi nancial position and its tax base.

1,152,592,035.00 657,749,537.00

The Centre’s items of property, plant and equipment were revalued and resulted into revaluation surplus balances as shown above. In December, 2007 the revaluation of property, plant and equipment was done by M/S Property Consultancy and Services Limited of P. O. Box 13310 Arusha, who are registered valuers. The valuation was based on depreciated replacement cost. The reserve is not available for distribution.



NOTE: 19 TRADE AND OTHER PAYABLES Trade Payables Customers’ Advances Statutory Employees Liabilities (PAYE) Unpaid Sales Tax and Withholding tax Utilities Payable Audit Fees and Expenses Payable Sundry Payables TOTAL

30.06.2011TZS

652,326,28747,161,069

2,851,7023,521,847

14,492,53035,000,00010,256,433

765,609,868

30.06.2010TZS

635,788,91442,558,081

3,273,4533,598,610

28,022,97028,829,520

30,805742,102,352

NOTE: 20 CASH AND CASH EQUIVALENTS (BANK OVERDRAFT)

NBC A/C 0140300552 0 348,406,627.14

The Centre had an overdraft facility with NBC Limited, Arusha Branch, with a limit of TZS 500,000,000 at an interest rate of 18% per annum during the year under review. A legal mortgage over nine buildings of the Centre secure the overdraft.

NOTE: 21 INCOME Interest Income Tender Non Refundable Deposit Commission Amortisation of Capital Grants Bill Boards Compensation on Stollen Mirrors Depreciation Adjustment Donations Received Electricity Arrears Recovered Fines to Defaulters Hire of Football Ground Hire of Motor Vehicle Lease Agreements Long Overdue Liabilities Printing Documents Rent Recovered Gain on Disposal of PPE Gain/(Loss) on Exchange Rates Fluctuations Discount Allowed TOTAL

9,009,9397,850,000

5,40928,685,000

360,0000

2,250,0000

14,932,7003,143,220

18,157,500128,000

95,00020,918,239

06,008,3501,449,999

351,538,7020

464,532,058

1,215,7602,710,000

5,48780,546,764

3,150,0004,385,100

01,000,000

00

6,875,0000

45,00015,003,785

79,2000

14,162,600194,161,230

14,294323,354,219


NOTE: 22 ADMINISTRATIVE EXPENSES Personnel Emoluments Offi ce Running Expenses Terminal Benefi ts Debts Collection Expenses Project Feasibility Study Security Services

TOTAL

2010/2011TZS

1,064,501,206964,737,157245,425,832

8,399,5289,445,000

193,391,935

2,485,900,658

2009/2010TZS

965,325,431580,190,781117,750,511

10,325,5008,643,783

190,789,000

1,873,025,006

NOTE: 23 MARKETING EXPENSES Advertising and Publicity Exhibitions and Fairs Sales Promotion Nane Nane Exhibition TOTAL

60,290,525180,794,503

20,213,9651,260,000

262,558,993

83,558,012112,113,138

21,927,5972,600,000

220,198,748

NOTE: 24 FINANCIAL EXPENSES Interest on Bank Overdraft Bank Charges TOTAL

7,908,71912,814,603

20,723,323

11,507,64311,617,624

23,125,267

NOTE: 25 OPERATIONAL EXPENSES Rented Offi ce Expenses Residential House Expenses Medical Expenses Conference Expenses TOTAL

1,216,371,860379,344,376

1,170,977,170517,416,458

3,284,109,864

992,265,221281,912,305978,115,454793,452,064

3,045,745,044

NOTE: 26 OTHER EXPENSES Directors’ Fees and Expenses Audit Fees and Expenses TOTAL

227,791,05742,468,980

270,260,038

86,878,59230,000,000

116,878,592



NOTE: 27 INCOME TAX EXPENSE Income Tax Expense For The Year Income Tax Expense For Prior Years Deferred Tax Expense TOTAL

112,010,00423,289,946

130,613,423

265,913,373

76,736,4910

494,842,498

571,578,989

Board Members and Key Management Personnel

Description Board: Board Members’ Fees Board Expenses Total

2010/2011TZS

35,000,000192,791,057

227,791,057

2009/2010TZS

10,000,00076,878,592

86,878,592

NOTE: 28 RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability to control the other party or

exercise signifi cant infl uence over the other party in making fi nancial and operating decisions. Related party transactions eff ected during the year 2010/2011 included salaries, allowances, social security contributions, fees and other expenses as follows:

Management: Salaries and Allowances Outstanding on Loans Other Advances Employer’s PPF/NSSF Contributions Total

274,202,45616,066,051

5,872,75030,468,988

326,610,245

240,376,56025,778,889

5,597,22029,238,002

300,990,671

All transactions with related parties are at arm’s length in the normal course of business, and on terms and conditions similar to those applicable to others.


NOTE: 29 CAPITAL COMMITMENTS There were no capital commitments as at 30th June, 2011.

NOTE: 30 CONTINGENT LIABILITIES The Centre may be liable for unspecifi ed amount of liability upon determination of various civil

suits pending in courts of law. The Centre is a defendant in several civil suits as at 30th June, 2011 against its former employees, tenants and other persons as plaintiff s.

NOTE: 31 COMPARATIVE FIGURES Previous year’s fi gures have been regrouped wherever considered necessary in order to make

them comparable with current year’s fi gures.




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...welcome to AICC, located at the heart of Africa, midway between Cairo and Capetown. AICC is your perfect venue formeeting requirements. With abundant natural attractions around, the Centre can accommodate 10 - 1,350 delegates.

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ContactsFor further Information/Bookings, please contact The Managing DirectorArush International Conference Centre P.O. Box 3081, Arusha - Tanzania.Tel: 255 - 27 - 250 - 8008/2953/2595/2269 Fax: 255 - 27 - 250 - 6630Email: [email protected]: www.aicc.co.tz

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