REPUBLIC OF KENYA
OFFICE OF THE AUDIT9R-GENERAL
REPORT
OF
THE AUDITOR-GENERAL
ON
THE FINANCIAL STATEMEN oKENYA TRANSPORT SECTOR SUPPORT
PROJECT (KTSSP) IDA CREDIT NO. 4926
FOR THE YEAR ENDED30 JUNE 2015
KENYA CIVIL AVIATION AUTHORITY
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KENYA CIVIL AVIATION AUTHORITY
KENYA TRANSPORT SECTOR SUPPORT PROJECT (KTSSP)
IDA CREDIT NO: CR 4926 KE
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 3 0 TH JUNE 2015
KENYA CIVIL AVIATION AUTHORITY
TABLE OF CONTENTS
KEY AUTHORITY INFORMATION AND MANAGEMENT ................ 3...........3
CORPORATE PROJECT INFORMATION, MANAGEMENT & IMPLEMENTATION: ................. 7
STATEMENT OF DIRECTOR GENERAL AND PROJECT COORDINATORS' RESPONSIBILITY......9
REPORT OF THE AUDITOR-GENERAL ..................... .................. 10
STATEMENT OF COMPREHENSIVE INCOME.. ................. 1......................1
STATEMENT OF FINANCIAL POSITION ............................................. 12
RECEIPTS AND PAYMENTS STATEMENT ............................................ 14
STATEMENT OF COMPARATIVE BUDGET AND ACTUAL................................. 14
NOTES TO THE FINANCIAL STATEMENTS ................................................ 15
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KENYA CIVIL AVIATION AUTHORITY
KEY AUTHORITY INFORMATION AND MANAGEMENT
(a) Background information
INTRODUCTIONKenya Civil Aviation Authority was formed on 241h October 2002 following the enactment of TheCivil Aviation (Amendment) Act, 2002. The Act received Presidential assent and became effectiveon the same day, 24th October 2002. This Act amended the Civil Aviation Act (Cap.394) of the lawsof Kenya and established the Kenya Civil Aviation Authority (KCAA) as an autonomous corporatebody that took over the functions of the Directorate of Civil Aviation (DCA) and the licensing of airservices hitherto under Civil Aviation Board (CAB). The Civil Aviation Act (Cap 394) and the CivilAviation (Amendment) Act, 2002 have now both been superseded by The Civil Aviation Act, 2013.At cabinet level, Kenya Civil Aviation Authority is represented by the Cabinet Secretary forTransport & Infrastructure, who is responsible for the general policy and strategic direction of theAuthority.VISIONTo be a model of excellence in civil aviationMISSIONTo develop, regulate and manage a safe, efficient and effective civil aviation system in Kenya.CORE VALUESCommitment to Safety and Security: We endeavour to maintain a safe and secure environment inall areas of our operations and entire civil aviation industry within our jurisdictionCustomer Focus: We undertake to embrace, meet, delight and exceed our customers' expectationsthrough passionate pursuit of service excellence. We shall invest on our people and systems, tocontinuously enhance quality service provision to our customers as a priority.Commitment to Fairness and Equity: We commit to be fair and promote equity in all our activities.We enforce our corporate Non-discrimination policy at an arm's length.We shall promote the Government's efforts to avert corruption in the country by ensuring zerotolerant to corruption. KCAA will strive to be a just, accountable and performance driven Authority.Background information (continued)Commitment to Staff: We undertake to continuously invest in our human capital to enhanceprofessionalism and integrity.Creativity and Innovativeness: We recognize and encourage initiative, creativity and innovationaimed at adding value to our operations and supply chain command.Respect for Diversity: We recognize and appreciate differences in gender, race, disability, region,age and generation. The differences complement and bind us together as one family, KCAA.
(b) Principal Activities
KCAA performs two broad key functions. The first one is to provide air navigation services inKenya's Airspace (also referred to as the Nairobi Flight Information Region). The second is toregulate the aviation industry in Kenya. In addition to this, KCAA offers training for aviationpersonnel through the East African School of Aviation.The mandate of the KCAA is essentially embedded in its functions/responsibilities, which areenumerated in the Civil Aviation Act 2013. These functions are enumerated as follows:(a) Licensing of air services;
(b) Provision of the air navigation services;
(c) Establishment and maintenance of a system of aircraft registration and the marking of civilaircraft;
(d) Securing sound development of the civil aviation industry in Kenya;
(e) Advising the Government on matters concerning civil aviation;
(f] Co-ordination and direction of search and rescue services;
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KENYA CIVIL AVIATION AUTHORITY
(g) Facilitation and provision of all the necessary support for aircraft accident and incident
investigations conducted by the investigator-in-charge;
(h) Carrying out investigations on incidents that are not classified as accidents and serious
incidents;
[i) Safety, security, economic and technical regulation of civil aviation;
(J) Dealing with incidents of unlawful interference with aviation security;
(k) Establishment, co-ordination and maintenance of State Safety Security programmes;
(1) Certification of aircraft operators;
(m) Enforcement of approved technical standards of aircraft;
(n) Licensing and monitoring of aeronautical personnel;
(b) Principal Activities (continued)
(o) Provision of technical services for the design, installation, and modification of electronic,
radio and other equipment used in the provision of air navigation services;
(p) Ensuring the integrity of the systems, equipment and facilities of the Authority;
(q) Issuance and dissemination of the publications referred to in the Act;
(r) Production of accurate, timely, comprehensive and relevant air transport information for
planning and decision making purposes;
(s) Approval, certification and licensing of aircraft maintenance organizations' and regulation of
aviation training institutions in Kenya;
(t) Establishment, management and operation of training institutions for purposes of the Authority;
(u) Registration of rights and interests in aircraft;
(v) Planning, development and formulation of the airspace master plan for the safe and efficient
utilization of Kenyan airspace;
(w) Establishment, co-ordination and maintenance of state aviation safety and security
programmes;
(x) Licensing and certifications of aerodromes, regulated agents and air navigation service
providers;
(y) Performing economic oversight of air services, protecting consumer rights, environment and
ensuring fair trading practices;
(z) Giving effect to the Chicago Convention and other international agreements relating to civil
aviation to which Kenya is party to.
KCAA carries out its functions in a manner consistent with the Chicago Convention on International
Civil Aviation, Annexes to the Convention relating to international Standards and Recommended
Practices (SARPs), and other international conventions and protocols relating to civil aviation, to
which the Republic of Kenya is a party. KCAA is also expected to perform any obligations required
by any agreement, treaty or arrangement between Kenya and any other country, inter-
Governmental organization or any other body with respect to the safety, regularity and efficiency
of air navigation and aviation safety in general.
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KENYA CIVIL AVIATION AUTHORITY
The Act also stipulates that KCAA should coordinate with other Government agencies such as theKenya Airports Authority, Kenya Ports Authority, Kenya Defense Forces and the Police Service inthe discharge of its responsibility for aviation safety and security.
(c) Key Management
The Authority's day-to-day management is under the following key organs:- Principal Secretary for Transport;- KCAA Board of Directors;
The Director General and the KCAA Management Team
(d) Key Management
The key management personnel who held office during the financial year ended 30th June 2015 andwho had direct fiduciary responsibility were:
No. Designation Name
1. Director General Capt. Gilbert M. Kibe
2. Corporation Secretary Judith N. M. Ng'ethe
3. Director Corporate Services Joseph K. Chebungei
4, Director Air Navigation Services Eng. Reuben J. Lubanga
6. Director EASA Dr. George K. M. M'Nchebere
(e) Headquarters and Main Stations
Head Office Wilson AirportKAA Complex P0 Box 30163Jomo Kenyatta International Airport NAIROBI, KENYAP 0 Box 30163, 00100 GPO Tel: (020) 606246 Fax: (020) 604692NAIROBI, KENYA E-mail: [email protected]: (020) 827470-5Fax: (020) 822300E-mail: [email protected] Malindi AirportWebsite: www.kcaa,or,ke P.0 Box 18
MALINDI, KENYAJomo Kenyatta International Airport Tel: (042) 30463 Fax: (042) 30428P0 Box 19031 E-mail: [email protected], KENYATel: (020) 827100 Fax: (020) 827102 Kisumu AirportE-mail: [email protected] P 0 Box 431
KISUMU, KENYAMoi International Airport Tel: (057) 2024499 Fax: (057)P0 Box 93939 2021035MOMBASA, KENYA E-mail: [email protected]: (041) 3433008 Fax: (041)3432069Email: mombasaPkcaa.or.ke
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KENYA CIVIL AVIATION AUTHORITY
Eldoret Airport (f) BankersP0 Box 3036 National Bank of Kenya,ELDORET, KENYA Jorno Kenyatta International AirportTel: (053) 2062966 Fax: (053) Branch2062965 P. 0. Box 30763 - 00100E-mail: [email protected] NAIROBI, KENYA
East African School of Aviation (g) Independent AuditorsP0 Box 30689 Auditor GeneralNAIROBI, KENYA Kenya National Audit OfficeTel: (020) 823602-7 Anniversary Towers, University WayFax: (020) 823699 P0 Box 30084Website: www.easa.ac.ke GPO 00100F-mail: infoPeasa.ac,ke NAIROBI, KENYA
Lokichoggio AirportTel:(054)32292 (h) Principal Legal AdvisorLOKICHOGGIO, KENYAF-mail: [email protected] The Attorney General
State Law OfficeHarambee AvenueP 0 Box 40112City Square 00200NAIROBI, KENYA
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KENYA CIVIL AVIATION AUTHORITY
CORPORATE PROJECT INFORMATION, MANAGEMENT &IMPLEMENTATION:
The KCAA component is part of the IDA financed Kenya Transport Sector Support( the Project
Number is P124109 while the Credit Number is 4926-KE) that the Government of Kenya signed in
May 2011 for the purpose of financing development projects in the Transport Sector. KCAA is one
of the implementing agencies of the project.
The Financing Agreement (FA) was initially signed between the Government of Kenya (GoK) and
the World Bank on 23r May 2011 and became effective on 22nd August 2011. However in March
2014, due to an additional financing given to the project by the World Bank, a new Financing
Agreement was signed between GoK and the World Bank. Under the additional financing, KCAAreceived a grant support of USD 1,660,000. The overall implementation period of the entire project
is seven years. The KCAA component, is projected to be implemented over a 7-year period at anapproximate cost of US$ 23.6 million.
To date KCAA has received Kshs.1,326,500,115 (USD 15 Million Approx.) from IDA as the drawnloan amount. The loan attracts an interest of 5% p.a, payable on 15t February and 1S " August
each year. The repayment of the principal amount of the loan shall commence from 2019 for a
period of 23 years.
Project Sub-components:-
The KCAA Component of the KTSSP project is comprised of four sub-components which are
briefly described here below:-
a) Provision of technical assistance to strengthen KCAA's Aviation Safety and
Security Oversight Capacity.
Implementation of this sub-component entails the following key activities: procurement of flight
safety consultancy services, purchase of aviation security training equipment, establishment of
flight safety technical library, review and development of technical examination questions,rehabilitation of technical examination center and purchase of reference documents for the library.
To date the following contracts have been signed: four contracts for flight safety consultants and
two contracts for procurement of aviation security equipment. The amount allocated for this sub-component is USD 2.89 million.
b) Upgrading of Air Navigation Systems
Implementation of this sub-component entails supply, installation and commissioning of the
following four types of air navigation systems: Communications systems, ATS Message Handling
System, Navigation Aids Systems, and Flight Safety Procedure Design. Four contracts have been7
KENYA CIVIL AVIATION AUTHORITY
signed for implementation of the foregoing systems and all of them have been successfully
implemented and completed. The amount allocated for this sub-component is USD 6.40 million.
c) Construction of an office block for KCAA headquarters and supervision of the
related construction works.
Implementation of this sub-component entails construction of an office block that will serve as the
headquarters of KCAA. Towards this end a contractor has been engaged construction the office
block including an access road. As the end of June 2015, the contractor had completed 85% of the
scheduled construction works. The amount allocated for this sub-component is USD 11.50 million.
d) Implementation of Information Communication Technology Systems
Implementation of this sub-component entails procurement of the following seven ICT Systems:
Human Resource Management System; Electronic Document Management System; E-mail and
Collaboration Suite; PABX for EASA; Five Servers and Server Racks; Car track and Fleet
Management Solution; and establishment of Remote Disaster Recovery Site. The E-Mail and
Collaboration suite, PABX for EASA, Five servers and server racks and the car track and fleet
management have been completed. Implementation of the human resource management system
and electronic document management system, are currently ongoing. The amount allocated for
this sub-component is USD 1.3 million.
e) Training of KCAA Staff
This is meant enhance appropriate competencies in aviation safety and security. The amount
allocated for this sub-component is USD 1.0 million.
Project Staff:
As per the Financing Agreement KCAA is to constitute a Project Implementation Team (PIT)
comprising of the following:-
1. Project Team Leader,
2. Project Coordinator,
3. Financial Management Specialist,
4. Procurement Specialist,
5. Technical specialist.
The PIT is directly responsible to the Director General in the performance of its duties.
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KENYA CIVIL AVIATION AUTHORITY
STATEMENT OF DIRECTOR GENERAL AND PROJECT COORDINATORS'
RESPONSIBILITY
The Financing Agreement dated May 23, 2011 between International Development Association (IDA) and
Kenya Civil Aviation Authority (KCAA) Article IV requires the Authority to prepare financial statements for
each financial year, which adequately reflect the operations, resources, and expenditures related to the KCAA
Component of Kenya Transport Support Project as at the end of the financial year under review. It also
requires the project accounting officer and the coordinator to ensure that proper accounting records are
kept, which disclose with reasonable accuracy at any time, the financial position of the project., It also
requires the project to design, implement and maintain internal controls relevant to the preparation and fair
presentation of the financial statements and ensuring that they are free from material misstatements,
whether due to fraud or error; safeguarding the assets of the project; selecting and applying appropriate
accounting policies and making accounting estimates that are reasonable in the circumstances.
The Director General and the Project Coordinator on behalf of the Authority, accept responsibility for the
annual financial statements, which have been prepared using appropriate accounting policies supported by
reasonable and prudent judgments and estimates, in conformity with International Public Sector Accounting
Standards and the requirements of the Credit Agreement.
The Accounting Officer and the Project Coordinator are of the opinion that the financial statements give a
true and fair view of the state of the project financial position as at 30' June 2015 and further confirm the
completeness of the accounting records maintained for the project which have been relied upon in the
preparation of the financial statements as well as on the adequacy of the internal control systems.
The Director General and the Project Coordinator confirm that the project has complied fully with the terms
and conditions of the Financing Covenants in accordance with the legal agreement and the applicable
Government regulations and that the project funds received during the period under audit were used for the
eligible purposes for which they were intended and were properly accounted.
......... ............ ..............
CHARLES KOMBO CAPT. GILBERT M. KIBEPROJECT COORDINATOR DIRECTOR GENERAL
...£Y .. . C2 v . . ..... ...Date Date
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REPUBLIC OF KENYA
Tclephone: -254-20-3 42330 P.O. Box 30084 -00 100Fx%; 254-20 3 11482E-Mail: NAIROBI
OFFICE OF THE AUDITOR-GENERALREPORT OF 'THE AUDITOR-GENERAL ON, XENYA 3RANSPORT SECTORSUPPORT PROJECT (KTSSP) IDA CREDIT NO.,, 4926 - KE FOR THEYEAR ENDED,3.0 JUNE 2015 KENYA CIVIL AVIATION AUTHORITY,
,REPORT-ON THE FINANCIAL STATEMENTS
1, have, audited the accompanying financial statements, of Kenya Transport' SectorSupport Project (KTSSP). IDA Credit No., 11 to. 18, which''comprise the statement of finaricial position as at 30 June 2015,, and the. statement,ofcomprehensive income, cash'flow statement' r6iceipts'and payments 'statement andstatement of comparative budget and actual for the year then ended, 'and a summary ofsignificant accounting policies. and other .exr)lanatory information in accordance withprovisions of Article 229 of the Constitution of Kenya, Section:14 -of the Public Audit Act,,.2003 and 'the Development 'Credit Agre I empnt, No.,4926'KE dated, 23 May 20.11between the Republic of Kenya 'and International Development Association. . I haveobtained all the information and explanations which,,to the',best,of my knowledge andbelief, were necessary,for.Ithe purpose of the audit.
Management's Responsibility for the Financial Statements
The Director-General of Kenya Civil Aviation and Project Coordinator areresponsible for the preparation and fair presentation of these financial statements'inaccordance with International Public Sector Accounting Standards (Accrual Basis) andfor such internal control as management determines is, necessary to enable thepreparation of financial statements that are free from material misstatement, whetherdue to fraud or error.
The management is also responsible for the submission of the''financial statements tothe Auditor-Gerteral in accordance with the provisions of Section 13 of the Public AuditAct, 2003.
Auditor-General's Responsibility
My responsibility is to express an opinion on these financial statements based on theaudit and report in accordance with the provisions of Section, 15 of the Public.Audit Act2003 and submit the report in compliance with Article 289(7) of the Constitution ofKenya. The audit was conducted in accordance with the International Standards onSupreme Audit Institutions (ISSAls). Those standards require compliance with ethicalrequirements and that the audit be planned and performed to obtain reasonableassurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on the
Kenya T-i7iisl3o -ISecto;-Stipl. oi-tPi-(?iecitKTSSP) IDA Credit.jVo. 4926-KE-AnnualReporl andFinanciedStatementsfiv the year ended 30 June 2015
auditor's judgement, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's - preparation
and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the Projects internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accountingestimates made by the management, as well as evaluating the overall presentation of
the financial statements.
I b"elieve the audit evidence obtained is sufficient and appropriate to provide a basis for
my qualified audit opiniorn
Basis for Qualified Opinion
Unexplained/Unreconciled cash balance
The statement -o finarncial position as at 30 June 2015 reflects cash balance of
Kshs.57,565,861. However, the cash book reflects a balance of Kshs.53,350,05 while
the bank certificate reflects a balance of kshs. 52,300.05. The variances in the three
figures have not been explained or reconciled.
In the circumstances, it has not been possible to confirm the correctness and the
accuracy of cash balance of Kshs.57,565,861 as at 30 June 2015.
Qualified Opinion
In my opinion, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph, the financial statements present fairly, in all material respects, the,
financial position of the Project as at 30 June 2015, and of its financial performance and
its cash flows for the year then ended, in accordance with International Public Sector
Accounting Standards (Accrual Basis) and conforms to the Development Credit
Agreement No. 4926 KE dated 23 May 2011.
In addition, the special account statement presents fairly, the special account
transactions and the closing balance has been reconciled with the books of account.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the International Development Association, I report based on my audit
that:-i. All International Development Association funds have been used in accordance
with the conditions of the Credit Agreement, with due attention to economy and
efficiency and only for the purpose for which the fund were provided;
ii. Counterpart funds have been provided and used in accordance with the
conditions of the Agreement, with due attention to economy and efficiency and
only for the purpose for which they were provided;
iii. Goods and services financed have been procured in accordance with the
Agreement and in compliance with the World Bank rules and procedures;
Keiya Transport Sector Support Project (KTSSP) IDA Credit No. 4926 - KE - Annual Report and Financial
Statementsfor the year ondod 30 June 2015
2
iv. Necessary supporting documents, records and accounts have been kept inrespect of all Project activities;
v. Adequate internal control to monitor expenditure and other financial transactionsexist; and
vi. A fixed assets register for the Project's assets was maintained during the year.
FCPA Edward R. 0. Ouko, CBSAUDITOR-GENERAL
Nairobi
29 December 2015
Kenya Transport Sector Support Project (KTSSP) IDA Credit No. 4926 - KE - Annual Report and FinancialStatements for the year ended 30 June 2015
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KENYA CIVIL AVIATION AUTHORITY
KENYA TRANSPORT SECTOR SUPPORT PROJECT CR: 4926 KE
STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30TH JUNE 2015
Note 2015 2014Income Kshs. KshsInterest Receipts 6 381,037 2,585,879Project counterpart 7 1,413,349 8,893,274Total Income 1,794,386 11,479f153
Expenditure
Training of staff and 7 214281595 5,225,350trainersAviation Safety Consultancy 7 291254,510 27,309,645Project operating costs 7 1,413,349 2011431229Bank Charges 8 10,380 221671Total Expenditure 331106,834 52,700,895Surplus/ (Deficit) for the year (31,312,448) (41,221,742)Surplus /(deficit) B/F (65,534,846) (24,313,104)Surplus/ (Deficit) C/Forward (96,847,294) (65,,534,846)
KENYA CIVIL AVIATION AUTHORITY
KENYA TRANSPORT SECTOR SUPPORT PROJECT - CR: 4926KE
STATEMENT OF FINANCIAL POSITION
AS AT 3 0 TH JUNE 2015.
2015 2014ASSET Note Ksh KshFixed AssetsProperty Plant & Equipment 2 510,902,290 26,922,542Motor Vehicles 2 11,401,843 11,401,843Computer Hardware & 2 25,739,639 25,739,638SoftwareProperty Plant & Equipment 2 20,650,159 431,282,356Work In ProgressBuilding Work in Progress 2 666,315,020 169,117,512Total - Non Current Assets 1,235,008,951 664,463,891Current AssetsCash Balance 3 57,565,861 11,218,155Total Current Assets 57,565,861 11,218,155TOTAL ASSETS 1,292,574,812 675,682,046
Equity and LiabilitiesIDA Loan 4 1,326,500,115 659,430,945KCAA Counterpart 4 55,442,880 55,442,880Accounts Payable 5 7,479,111 26,343,067Surplus / (Deficit) Account (96,847,293) (65,534,845)TOTAL LIABILITIES & 1,292,574,812 675,682,047LOAN
CHARLES KOMBO CAPT. GILBERT M. KIBEPROJECT COORDINATOR DIRECTOR GENERAL
Date Date
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KENYA CIVIL AVIATION AUTHORITY
KENYA TRANSPORT SECTOR SUPPORT PROJECT - CR: 4926KECASHFLOW STATEMENTFOR THE YEAR ENDED 30TH JUNE 2015
2015 2014Note Ksh Ksh
Cash from Operating ActivitiesNet Surplus from Operations (31,312,448) (41,221,742)AdjustmentsOperating profit before workingCapital changes (31,312,448) (41,221f742)(Increase) / Decrease in InterestReceivable 2,412,159Increase / (Decrease) in Creditors 13 (18,863,956) 23,216,702Net Cash from Operating Activities (50,176,404) (15,592,881)9 0% Surplus Paid / Corporation TaxPaid 14
(50,176,404) (15,592,880)Cash used in Investing ActivitiesPurchase of Fixed Assets (570,545,059.96) (536,863,237)Disposal of AssetsTotal Cash used in InvestingActivities (570,545,059.96) 536,863,237Cash flow from Financing ActivitiesLoans received IDA 667,069,170 438,214,046GOK/KCAA Counterpart 55,442,880Net Cash flow from FinancingActivities 667,069,170 493,656,926Increase / (Decrease) in Cash & CashEquivalents 46,347,705 (58,799,191)Cash & Cash Equivalents at the Start ofthe Year 11,218,156 70,017,347Cash & Cash Equivalents at theEnd of the Year 57,565,861 11,218,156
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KENYA CIVIL AVIATION AUTHORITY
RECEIPTS AND PAYMENTS STATEMENT
FOR THE YEAR ENDED 30TH JUNE 2015
2015 2014Receipts Ksh KshReceipts from Min. OfTransport ( WB) 110,000,000 66,878,286Interest income - 2,412,159Interest Income 381r037 2,585,879
110,381,037 71,876,324
PaymentsTraining of staff andtrainers 2,428,595 3,688,350Consultancy services forAviation safety 13,070,663 27,451,001Consultancy services forKCAA HQ 16,183,847 11,077,150Aviation EquipmentPurchase 13,475,890 88,434,342Payment to Creditors 18,863,955 -Bank charges 10,380 24,672
64,033,331 130,675,515
Excess Receipts overPayments 46,347,706 (58,799,191)Opening balance as 11,218,155 70,017,346Closing Balance IDAAccount 57,565,861 11,218,155
STATEMENT OF COMPARATIVE BUDGET AND ACTUAL
KTSSP- KCAA BUDGET 2014- ACTUAL 2014- VARIANCECOMPONENT 15 (A) 2015 (B) (A-B)
Ksh Ksh Ksh
Proposed KCAA HQConstruction 615,000,000 416,056,152 198,943,848
Aviation EquipmentPurchase 190,000,000 154,488,908 35,511,092Support to AviationSafety & Securityconsultancy & HQConsultancy 45,000,000 29,254,510 15,745,490Training KTSSP 20,000,000 2,428,595 17,571,405Total 870,000,000 602,228,165 267,771,835
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KENYA CIVIL AVIATION AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS
1. Accounting Policies
The financial statements have been prepared in accordance with International Public SectorAccounting Standards (IPSAS) and IDA/Donor guidelines. The principal accounting policiesadopted remain unchanged from the previous reporting period and are set out below.
a) Basis of preparation
The financial statements have been prepared under historical cost convention as modified toinclude valuation of donations received in kind, long term investments, and equipments asdescribed here below.
b) Revenue - Grants
Unrestricted grants are accounted for in the period when confirmation of the commitment to payis received from Donors or GOK. Grants received for specific purposes are treated as deferredincome and only credited to the income and expenditure statement when the activities for whichthey are provided for have been undertaken.
Grants received for specific asset purchases are treated as deferred income for asset acquisitionand only credited to the income and expenditure statement when activities for which they wereprovided for have been undertaken.
c) Project Income
Project income represents income from project carried out by KCAA and is accounted for onaccrual basis.
d) Donation in Kind
Donations in kind are recognized on a receipt basis and recorded at their fair value.
e) Interest Income
Interest income is recognized on accrual basis.
f) Fixed Assets
Fixed Assets acquired under this project are shown in the books at cost price.
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KENYA CIVIL AVIATION AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)2. Asset PurchasesThe Project made payments for the following Works & Equipment during the year ended 30 June
2015
During the year 2014-2015 the assets purchased were as below:
MOTOR VEHICLES Ksh
TOYOTA KENYA LTD TOYOTA LANDCRUIZER HZJ79R- 6,158,843TJMRS
OMO MOTORS LTD FORD RANGER XLT NO MTD-914- 5,243,000045-11
TOTAL 11,401,843
PLANT & EQUIPMENT
INTERTECH BATINORM EXPLOSIVE DETECTION TRACE 18,189,306EQUIPMENT
ACHELtS KENYA LTD X-RAY BAGGAGE INSPECTION 10,369,674UNITFLIGHT PROCEDURE DESIGN
CGXAEROINSYS OO23,153,686
SUPPLY OF VHF, VOICESELEX ELSAG S.P.A RECORDERS & VOICE 131,364,528
COMMUNICATION SYSTEMS
SUPPLY & DELIVERY OFTHALES ELECTRONIC SYSTEMS NAVAIDS SYSTEMS -ILS/DME & 247,823,267GmbH DVORIDME
SUPPLY, INSTAL & COMMISSION 80,001,829THALES AIR SYSTEMS S.A AN AMHS
TOTAL 510,902,290
COMPUTER & COMPUTER SOFTWARE
SYMPHONY SERVERS & SERVER RACKS 8,124,459
SYSTEM INFORMATION & EMAIL SOLUTION & COL SUIT 7,769,632TECHNOLOGYMFI CONSULTING LTD PABX AT EASA 9,845,548
25,739,639
Total Fixed Assets 548,043,772
WORK IN PROGRESS 2014-2015
LANDMARK HOLDINGS LTD CONSTRUCTION OF KCAA HQ 634,266,020
MMI CONSTRUCTION SUPERVISION 32049000OF KCAA HQ
SUB-TOTAL 666,315,020
CoreTEC System & Solutions HUMAN RESOURCE NOT 8,415,200SOLUTION
XRX TECHNOLOGIES DOCUMENT MGT SYSTEM( 9,100,871CALS & SCANNERS)
FROTCOM LTD CAR TRACK FLEET MGT SOLN 3,134,088
686,965,179
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KENYA CIVIL AVIATION AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. Cash At Bank
The IDA funds held by KCAA as per the cashbook as at 3 0 th June 2015 is Ksh 57,565,861
4. IDA Loan received to date is Kshs 1,326,500,115. This is made up as follows:
2015 2014
Ksh Ksh
Balance B/F 659,430,945 221,216,899
Direct payments 557,069,170 371,335,760
Receipts Thro' MOT 110,000,000 66,878,286
Total 1,326,500,115 659,430,945
The counterpart contribution by the Authority was Ksh 55,442,880 for the year 2013-2014.
5. Accounts Payable represent amount owed as at 30th June 2015 but for which the serviceshad been rendered to the project as follows:-
2015Creditors Ksh
CAR TRACK FLEET MGTFrotcom K Ltd SOLN 1,392,928XRX Technologies CALS & SCANNERS 650,404
HUMAN RESOURCE MGTCoreTec Systems & Solutions SOLUTION 5,049,120MFI Consulting Ltd EASA PABX 100,154System & InformationTechnology E - MAIL SOLUTION 79,037
X-Ray Baggage ScreenerAchelis Kenya Ltd Kit 44African Touch Safaris Airticket 83,584Capt Joe Mutungi Flight Safety Consultancy 123,840Total 7,479,111
6. Interest Income
The interest income is on the current account balances as held at the National Bank during theyear. The total for the year was Ksh 381,037.20.
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KENYA CIVIL AVIATION AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
7. Expenditure during the financial year in each category were as follows:
a) Training: various officers were trained under this category. The total expenditure incurredduring the year amounted to Ksh 2,428,595
b) Consultancy: Aviation safety & KCAA HQ design. Individual flight safety consultants andKCAA HQ design consultancy services during the year. This amounted to Ksh 29,254,510
c) Project operating costs- this is the Authority's contribution to the project recurrent
activities as per the contract. Ksh 1,413,349 was incurred during the year.
8. Bank charges for the year 2014/2015 is Ksh 10,380.
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