development bank of rwanda plc public disclosure … · 2018. 12. 31. · pbox 13.41 kigali -rwr4a...

DEVELOPMENT BANK OF RWANDA PLC

RENEWABLE ENERGY FUND PROJECT

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

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DEVELOPMENT BANK OF RWANDA PLCRENEWABLE ENERGY FUND PROJECTANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2018

Table of Contents Page No

1. Background of the dono ..................................................................................................................... 1-2

2. Statement of responsibilities ...................................................................................... 3

3. Report of the IndependentAuditor ........................................................................... 4-6

4. Fund Accountability Statement...................................................................................7

5. Notes to the Fund Accountability Statement...........................................................8-11


Directors

The directors that served during the period and to the date of this report are shown below;

Mr. Francis Mugisha ChairmanMr. Eric Rwigamba Non-Executive DirectorMrs. Agnes Kanyangeyo Non-Executive DirectorMr. Cyrille Hategekimana Non-Executive DirectorMr. Johan Debar Non-Executive DirectorMrs. Antonina Rutembesa Kayitesi Non-Executive DirectorMr. Athanase Rutabingwa Non-Executive DirectorMr. Patrick Mwesige Non-Executive DirectorMr. Eric Kwizera Gasana Non-Executive Director

Company SecretaryMs. Loyce K. BamwineDevelopment Bank of Rwanda PlcKN3 Ave,P.0 Box: 1341Kigali, Rwanda

Registered Office and principal place of business

DEVELOPMENT BANK OF RWANDA BUILDINGKN3, AveP.0 BOX: 1341Kigali, Rwanda

2


2. Statement of Directors' Responsibilities

It is the responsibility of Directors' to prepare financial statements for each financial year whichgive a true and fair view of the state of affairs of the Project as at the end of the financial yearand of the surplus or deficit for that year. In preparing those financial statements, Directors' arerequired to:

* Select suitable accounting policies and then apply them consistently;

* Make judgments and estimates that are reasonable and prudent;

* Maintain financial records and prepare the financial statements in accordance with thepolicies and procedures of Development Bank of Rwanda - Renewable Energy Fund Project.

* Prepare the financial statements on going concern basis unless it is inappropriate to presumethat the Project will continue its operations.

Directors' are responsible for keeping proper accounting records, which disclose with reasonableaccuracy, at any time, the financial position of the Project. They have a general responsibility fortaking such steps as are reasonably available to them to safeguard the assets of the organizationand to prevent and detect fraud and other irregularities.

tN

Chief Executive Officer RPBOX 13.41 Kigali - Rwr4a

Date ......2019

3

160i ~ -'6Tel: -250 788309977 / 250 788303322

Certified Public AccOunlants Email: [email protected]

-Peace Plaza, Executive Wing 6" floor vww.cy.comKN J Avei'nuee .Bo- 3638

o dd 'inali, Rwanda

REPORT OF THE INDEPENDENT AUDITORTO THE MEMBERS OF DEVELOPMENT BANK OF RWANDA PLC - RENEWABLE ENERGY FUND

PROJECT

OPINION

We have audited the accompanying financial statements of Development Bank of Rwanda Plc -

Renewable Energy Fund Project which comprise the Fund Accountability Statement for the year

then ended 31 December 2018 and a summary of significant accounting policies and other

explanatory information, as set out on pages 6 to 10.

In our opinion, the Fund Accountability Statement presents fairly, in all material respects the

financial position of Development Bank of Rwanda Plc - Renewable Energy Fund Project as at 31

December 2018 and of its financial performance for the year then ended in accordance with

organization's accounting policies and the funding agreements.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our

responsibilities under those standards are further described in the Auditor's Responsibilities for

the Audit of the Financial Statements section of our report. We are independent of the funded

project in accordance with International Ethics Standards Board for Accountants' Code of Ethics

for Professional Accountants (IESBA Code). We have fulfilled our other ethical requirements

applicable to performing the audit of Development Bank of Rwanda - Renewable Energy Fund

Project. We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.

OTHER INFORMATION

The directors are responsible for the other information. The other information comprises the

background of the project, which we obtained prior to the date of this report which is expected

to be made available to us after that date. Other information does not include the financial

statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not

express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the audit, or otherwise appears to be

materially misstated.

4

w,o rkinc6i word

REPORT OF THE INDEPENDENT AUDITORTO THE MEMBERS OF DEVELOPMENT BANK OF RWANDA PLC - RENEWABLE ENERGY FUNDPROJECT (CONTINUED)

RESPONSIBILITIES OF DIRECTORS FOR THE FINANCIAL STATEMENTS

Directors are responsible for the preparation and fair presentation of the financial statements

that give true and fair view in accordance with organization's accounting policies and the funding

agreements, and for such internal control as management determines is necessary to enable the

preparation of financial statements that are free from material misstatement, whether due to

fraud or error.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue anauditor's report that includes our opinion. Reasonable assurance is a high level of assurance, butis not a guarantee that an audit conducted in accordance with ISAs will always detect a materialmisstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also:

* Identify and assess the risks of material misstatement of the financial statements, whetherdue 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 our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Organisation's internal control.

* Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the directors.

* Conclude on the appropriateness of the management use of the going concern basis ofaccounting and based on the audit evidence obtained, whether a material uncertainty existsrelated to events or conditions that may cast significant doubt on the Organisation's ability tocontinue as a going concern.

* Evaluate the overall presentation, structure and content of the financial statements, including

the disclosures, and whether the financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.

5

REPORT OF THE INDEPENDENT AUDITORTO THE MEMBERS OF DEVELOPMENT BANK OF RWANDA PLC - RENEWABLE ENERGY FUNDPROJECT (CONTINUED)

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

* Obtain sufficient appropriate audit evidence regarding the financial information of the entityto express an opinion on the financial statements. We are responsible for the direction,supervision and performance of the project's audit. We remain solely responsible for our auditopinion

* We communicate with the directors regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in

internal control that we identify during our audit.

* We also provide the management with a statement that we have complied with relevant

ethical requirements regarding independence, and to communicate with them allrelationships and other matters that may reasonably be thought to bear on our independence,

and where applicable, related safeguards.

AlilaGichuhiFor Ernst & Young Rwanda Limited

........ .2019

6


Fund Accountability Statement

Note 31 December 2018

FRW

Grant income 5.1 233,696,959

Proceeds from borrowings 5.2 4,256,341,050

Other income 5.3 140,808,008Net operating revenue 4,630,846-017

Operating expenses

Compensation of employees 5.4.1 38,705,261Use of goods and services 5.4.2 54,206,326Capital expenditure 5.4.3 3,504,942

Total operating expenses 96A,6529

Deficit/Surplus 4,534,429,488

Represented byCash at Bank 5.4.4 3,974,091,577Account receivables and advances 5.4.5 580,000,000

Account payables 5.4.6 (19,662,089)

Balance for the year 4 534,429-488

The Fund Accountability Statement wasAp roved by the Project's management and signed on itsbehalf by:

CEtRDDOveloPrnent Bank of R----PL

.P.crw ~ Y 3 4 1 Kigali - RwaN~a

Chief Executive Officer

Date . ..2-C........2

7


3. Notes to the Fund Accountability Statement

3.1 Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with organization's accountingpolicies and the funding

b) Grant income

These are funds received from the donor. The funds are recognised as grant income when theproject receives the cash from the Development Partner.

c) Other income

Other income includes miscellaneous income such as refunds, deductions and scholarshiprecovery, gain of currency exchange and transactions, proceeds from sale of small items andequipment and funds received from repayment of car loans as well as unidentified revenues.

d) Expenditure

Expenditure is recognised and recorded when paid for. The main categories of expenditureinclude compensation of employees, use of goods and services capital expenditures, transfersand subsidies, loan and interest repayments, social benefits, transfers to reporting entities andother expenses.

e) Cash and bank

Cash comprises cash on hand, demand deposits and cash equivalents. Demand deposits and cashequivalents comprise balances with banks and investments in short term money marketinstruments.

f) Accounts receivable and advances

Receivables mainly relate to advances which are recognised at the time of disbursement.Receivables also include amounts due to the project as at the end of the year. Receivables arecarried at original historical cost.

g) Accounts payable

This mainly relates to invoices for goods and services which were outstanding as at the end ofthe period. These are recognized as liabilities for that specific period. They also includecommitments arising from non-cancellable contractual or statutory obligations.

8


5. Notes to the Fund Accountability Statement (continued)

31 December 20185.1 Grant income FRW

Grant received on;16 March 2018 233-696959

5.2 Proceeding from borrowings

Borrowings received on;

16 March 2018 4256341 05_0

5.3 Other income

Foreign exchange gain 140,808,008

5.4 Operating expense

5.4.1 Compensation of employees

Salaries in cash 32,292,082Social contribution 6,413,179

5.4.2 Use of goods and services

General services 9,136,045Professional, research services 18,140,750Transport and travel 9,875,706Training costs 17,053,825

5A206326

5.4.3 Capital expenditure

Acquisition of tangible fixed assets (Laptops) 3504,942

9


5. Notes to the Fund Accountability Statement (continued)

31 December 20185.4.4 Cash at Bank FRW

BNR-REF (Designated Account) 3,9O4_91577

5.4.5 Account receivables

The following were the account receivables as at 31 December 2018

DUFATANYE KARENGERA SACCO 20,000,000EJO HEZA TUZAMURANA SACCO KIBIRIZI 20,000,000GIRINTEGO SACCO KIVURUGA 20,000,000GIRUBUKIRE SACCO 20,000,000IMBARUTSO MUSENY] SACCO 20,000,000INSHUTI ZIMUGANO SACCO 20,000,000IZIYIGIHE SACCO 20,000,000MBAZI ISONGA SACCO 20,000,000NGARAMA ISUNGE SACCO 20,000,000REBAKURE SACCO 20,000,000SACCO ABESAMIHIGO BA GIHANGO 20,000,000SACCO AMEREKEZO JARAMA 20,000,000SACCO GANAHEZA - NYAGISOZI 20,000,000SACCO KIRA BURUHUKIRO 20,000,000SACCO MUYIRA DUSHYIGIKIRANE 20,000,000SACCO REBAKURE 20,000,000SACCO TWAMBUTSANYE 20,000,000SACCO TWIZIGAMIRE - NGERA 20,000,000SACCO URUYANGE RUKOMA 20,000,000TERIMBERE SACCO BWIRA 20,000,000TSIMBURA SACCO SHANGASHA 20,000,000TUGANE SACCO NYABINONI 20,000,000UMURAVA SACCO - BIGOGWE 20,000,000INDATWA SACCO 20,000,000IZIGAMIRE SACCO MIYOVE 20,000,000COOPEC UBUMWE NYAKALIRO 20,000,000SACCO IGIHONDOHONDO 20,000,000SACCO JYAMBERE GAHARA 20,000,000SACCO KARAMBI VISION 20,000,000

800,000

10


5 Notes to the Fund Accountability Statement (continued)

The following were the accounts payables as at 31 December 2018:

31 December 20185.4.6 Account payables FRW

BRD - REF Staff salaries 7,796,665BRD - REF Operating expenses 780,000Sector Exsec 920,000CAS Hotel 225,000Park Inn Hotel 1,881,600Kabanda Philibert 2,823,529Nkuranga Egide 3,176,471Alper Tilev 2,058,824

19662-089

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development bank of rwanda plc public disclosure … · 2018. 12. 31. · pbox 13.41 kigali -rwr4a...

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