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Financial Statements for the Year Ended 31st Dec. 2020
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The Directors are responsible for the preparation and presentation of the financial statements of the Association for Strengthening Agricultural Research in Eastern and Central Africa (“the Organisation”), which comprise the statement of financial position as at 31 December 2020, and the statement of income and expenditure, statement of changes in fund reserves and statement of cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes in accordance with the accounting policies.
The Directors’ responsibility includes: determining that the basis of accounting and accounting policies is an acceptable basis for preparing and presenting the financial statements, and for such internal control as the Directors determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. They are also responsible for safeguarding the assets of the organisation.
The Directors are also required to prepare financial statements for each year which present in all material respects, the state of affairs of the organisation as at the end of the reporting period. The directors are also required to ensure the maintenance of proper accounting records which disclose with reasonable accuracy the financial affairs of the organisation.
The Directors accept responsibility for the financial statements which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with accounting policies. The Directors are of the opinion that the financial statements present in all material respects, the state of the financial affairs and of its operating results. The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control.
The Directors have made an assessment of the organisation’s ability to continue as a going concern and have no reason to believe that the organisation will not be a going concern for at least the next twelve months from the date of this statement.
Approval of the financial statements
The financial statements of ASARECA were approved and authorised for issue by the Board of Directors on …………... May 2021.
……………………………….. ………………………………
Executive Director Head of Finance
Date: ………. May 2021
The Association for Strengthening Agricultural Research in Eastern and Central Africa Financial statements for the year ended 31 December 2020 (Continued)
Income
Income from donations
Membership contribution Other earned income
Total income
Expenditure Governance & secretariat management Programme management support Technical programmes Total expenditure
Deficit for the year 2020 US$
811,662 210,000 9,727
1,031,389
1,279,364 348,107 185,797 1,813,268
(781,879)
2019 US$
273,202 265,000 54,424 592,626
1,030,666 306,030 150,314 1,487,010
(894,384)
The Association for Strengthening Agricultural Research in Eastern and Central Africa Financial statements for the year ended 31 December 2020 (Continued)
ASSETS Non-current assets
Property and equipment Leasehold land
Current assets Cash at bank Accounts receivable – NARI membership Accounts receivable – partners Accounts receivable project sub-grantees Accounts receivable – others
Total assets
RESERVES AND LIABILITIES Reserves
Investment in fixed assets Capital reserve fund Accumulated operating surplus
2020 US$
18,973 237,916 256,889
1,946,572 740,081 30,456
300,301 3,017,410 3,274,299
256,889 1,219,114 455,319 1,931,322
2019 US$
15,027 248,260 263,287
3,328,881 545,081
30,000 49,336
3,953,298 4,216,585
263,287 1,196,505 1,259,807 2,719,599
The Association for Strengthening Agricultural Research in Eastern and Central Africa Financial statements for the year ended 31 December 2020 (Continued)
LIABILITIES
Deferred income
Accounts payable – others Accruals and provisions
Total reserves and liabilities 2020 US$
656,567 124,969 561,441
1,342,977 3,274,299 2019 US$
1,357,161 94,718 45,107
1,496,986 4,216,585
The financial statements of ASARECA were approved and authorised for issue by the Board of Directors on ……………May 2021 and were signed on its behalf by:
……………………………….. Executive Director ……………………………… Head of Finance
Date: ……...........May 2021
Independent auditor’s report
Opinion
We have audited the financial statements of The Association for Strengthening Agricultural Research in Eastern and Central Africa (ASARECA) (“the Organisation”), which comprise the statement of financial position as at 31 December 2020,and the statement of income and expenditure, statement of changes in fund reserves and statement of cash flows for the year then ended, and notes to the financial statements, including significant accounting policies and other explanatory information.
In our opinion, the accompanying financial statements of The Association for Strengthening Agricultural Research in Eastern and Central Africa are prepared in all material respects, in accordance with the basis of accounting described in note 3 to the financial statements.
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 Organisation in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Uganda, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter – Basis of Accounting and Restriction on Use and distribution
We draw attention to note 3to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the organisation to comply with the organisation’s financial reporting provisions. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Organisation and should not be used by or distributed to parties other than the Organisation. Our opinion is not modified in respect of this matter.
Other Information
The Directors are responsible for the other information. The Other Information comprises the Secretariat information, List of abbreviations /acronyms, Report of the Directors and Statement of Directors’ responsibilities but does not include the financial statements and our auditor’s report thereon.
The Association for Strengthening Agricultural Research in Eastern and Central Africa Financial statements for the year ended 31 December 2020 (Continued)
Our opinion on the financial statements does not cover the other information and we do not express 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. If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The Directors are responsible for the preparation of the financial statements in accordance with the basis of accounting described in note 3 to the financial statements, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Organization’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Organization or to cease operations or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also;
• Identify and assess the risks of material misstatement of the financial statements, whether due 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. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting 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 audit procedures that are
The Association for Strengthening Agricultural Research in Eastern and Central Africa Financial statements for the year ended 31 December 2020 (Continued)
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Organization’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Organization to cease to continue as a going concern.
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.
The engagement partner on the audit resulting in this independent auditor’s report is CPA Stephen Ineget P0401.
KPMG
Certified Public Accountants 3rd Floor, Rwenzori Courts Plot 2 & 4A, Nakasero Road PO Box 3509 Kampala, Uganda
Date: ……………………….2021 CPA Stephen Ineget
Agriculture in the Face of the COVID-19 Pandemic
ANNUAL CORPORATE REPORT 2020
Plot 5, Mpigi Road | P. O. Box 765, Entebbe, Uganda Tel: +256 414 320 556, +256 414 321 885 Email: secretariat@asareca.org Website: www.asareca.org
asareca@facebook.com @asareca
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