ASDP Basket Fund - Ministry Of Agriculture, Food and Cooperatives

Page 2 of 5ASDP/16The United Republic of TanzaniaASDP ProgrammeNotes to the Receipts and Payments Account For the Year Ended1. Accounting EntityThe Government of the United Republic of Tanzania (GoT) in conjunction with several donor partners namely [x] have agreed to jointly financethe Agriculture Sector Development Programme (ASDP). Under this programme, development partners finance ASDP using various fundingmodalities including a basket fund (see note 4). In the case of basket funding, donor partners deposit funds into a holding account held at theBank of Tanzania (BOT) and thereafter channel their financing to the Agricultural Sector Lead Ministries (ASLMs) vote through the ExchequerSystem. Funds are managed as part of GoT’s resources and accounted for as part of ASLM’s development vote. Funds are released from thisaccount to meet quarterly expenditure of the ASDP.2. Significant Accounting Policies(i) Accounting ConventionThe account has been prepared on a cash basis of accounting in line with GoT policy. Income is recognised in the account when actuallyreceived while expenditure is recognised when actually paid. Donor partners fund the ASDP through actual cash disbursements and/or directpayments.(ii) Accounting for direct payments (see note 4)Funds in the form of direct payments are recognised in the account when received by the ASLM as both income and expenditure through theissue of dummy exchequer issue of funds by the Government Paymaster General.(iii) Fixed assets and consumablesFixed assets, stocks and consumables are expensed in full in the year of purchase and asset disposals are recognised as income in the year ofsale.(iv) ImprestsImprest funds provided to various GoT officers for the purposes of implementation of various activities under the ASDP Work Plan are recognisedas expenditure when payments are made in line with the cash basis of accounting. However, controls and monitoring of these funds is donethrough a memorandum imprest system which records all imprests issued and their subsequent accountability. Imprest balances remaining at theend of the financial year are shown in these financial reports for clarification and follow up purposes.(v) Reporting currencyThis account is reported in Tanzania Shillings (TShs) in line with GoT policy. Although the holding account is denominated in US Dollar (US$),transfers from this account to the Exchequer account are made in equivalent TShs using the official BOT selling exchange rate ruling on the dateof the transfer. ASLM received funds from the Exchequer Account in Tanzania Shillings.C 10