Annual general report of the controller and - Parliament of Tanzania

3. Dodoma
Urban
Water
Supply
and
Sewerage
Authority
Qualified
opinion
Limitation of scope
The Authority’s revenue policy is
to recognise revenue from supply
of water and the provision of
sewerage disposal services on the
basis of amounts billed to
customers. We however noted
that the Authority has been
recognising revenue on the basis
of cash collected from customers.
Consequently an amount of Tshs
104,314,900 being excess of cash
collected over the amounts billed
during the financial year
2007/2008 had been recognised in
the income statement. While we
have made necessary adjustment
in the financial statements in
respect of the above excess
collections incorrectly treated as
revenue for the year ended 30
June 2008, we are unable to
determine the magnitude of any
further adjustments relating to
prior years cash collections, that
may be necessary to correct any
misstatements in the accumulated
deficit and trade receivable
balances as brought forward from
the previous financial statements.
Trade Receivables
There is a difference of Tshs
259,576,473 between trade
receivables general ledger
balance and the total of
underlying billing listings as at 30
June 2008. This difference has not
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Office of the Controller and Auditor General PA&oBs 2007/08 30