ANNUAL REPORT
For the year ended 30th june 2012
39
Public Service Pensions Fund
AU
di
T REPORT ON THE F
i
NAN
ci
AL STATEMENTS
cONT
'd
33
In addition, Sect 10(2) of the Public Audit Act of 2008 requires me to satisfy myself
that the accounts have been kept in accordance with generally accepted accounting
princi
ples; 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 duly
observed, expendit
ures of public monies have been properly authorized.
Furthermore, Sect. 44(2) of the Public Procurement Act No. 21 of 2004 and Reg. No
31 of the Public Procurement (goods, works, non
-
consultant services and disposal of
public assets by Tender) Regulations
issued under G.N 97 of 2005 requires me to
state in my annual audit report whether or not audited entity has complied with the
provisions of the law and its regulations.
I believe that the audit evidence I have obtained is sufficient and appropriate to
p
rovide a basis for my audit opinion.
Unqualified Opinion
In my opinion, the financial statements give a true and fair view of the state of
affairs of the Fund as at 30 June 2012 and of the disposition at that date of its
assets and liabilities, other tha
n liability to pay pensions and benefits falling due
after the end of the year in accordance with the International Financial Reporting
Standards and the requirements of the Public Service Retirement Benefit Act No. 2
of 1999.
Emphasis of matter
Without
qualifying my opinion, I draw attention to Note 2 to the financial
statements which indicates that based on Actuarial Valuation carried out in 2010,
the Fund has actuarial deficit of TZS 6.49 trillion. These conditions, along with other
matters as set fort
h in Note 2, indicate the existence of a material uncertainty that
may cast significant doubt about the Fund's ability to continue as a going concern.
I draw attention to Note 19 to the financial statements, the Fund has recognized
TZS 107,091,529,000 use
d to finance the construction of the College of Education of
The University of Dodoma as a loan which is contrary to the contract terms which
states that the project is in the form of Design, Build, Own and Transfer the building
where by the Fund will in t
urn receive rent calculated on the basis of cost of
investment and interest on investment i.e. 15% over a period