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2021-12-31-accounts

Trustees’ Annual Report for the period

From 01/01/2021 Period start date To 31/12/2021 Period end date

Charity name: Reforest Africa

Charity registration number: 1185419

Objectives and Activities

SORP reference
Summary of the purposes of
the charity as set out in its
governing document		 Para 1.17 Reforest Africa’s vision is to see “Native
forests recovering across Africa”, with the
following mission:
Our mission is to develop and implement
techniques for ecological restoration,
conservation and monitoring of African
forests for wildlife and people.
Summary of the main
activities in relation to those
purposes for the public
benefit, in particular, the
activities, projects or services
identified in the accounts.		 Para 1.17 and
1.19		 Trustees have been engaged in writing
funding proposals to foundations to raise
funds to support the charity and building of a
botanical garden in Tanzania as one of the
recent projects to kickstart and support
long-term restoration of Greater
Udzungwa-Kilombero Landscape
Restoration.
The team in Tanzania have made plans to
establish a 13 acre plot botanical garden
next to the head office in collaboration with
villagers from Mang’ula A village. The
nursery will grow threatened tree species
and native species to support local resource
(firewood) and livelihood (timber) needs to
reduce pressure on natural forestsand be
able to accommodate up to 100,000
seedlings. A team of volunteers from Penn
State University, USA have drafted
landscape designs for implementation in the
next reporting period. Reforest Africa is also
supporting a community-run tree nursery in
neighbouring Katukila village. Together the
two tree nurseries which this year have
germinated an estimated 24,142 saplings of
42 native species.
Reforest Africa has also made a three year
co-management agreement with Tanzania
Forest Service (TFS) agency to assume

co-management responsibility for Magmbera Nature Forest Reserve, a small (2,615 ha), but biologically diverse protected area located next to our head office in Mang’ula. Other activities include 5 environmental awareness and training events in five local schools. Statement confirming Para 1.18 The trustees have had whether the trustees have regard to the Charity Commission’s guidance had regard to the guidance on public benefit issued by the Charity Commission on public benefit

Additional information (optional) You may choose to include further statements where relevant about:

SORP reference Para 1.38 Policy on grant making Para 1.38 Policy on social investment including program related investment Para 1.38 Contribution made by volunteers Other

Achievements and Performance

SORP reference

Summary of the main
achievements of the charity,
identifying the difference the
charity’s work has made to
the circumstances of its
beneficiaries and any wider
benefits to society as a
whole.		 Para 1.20 Charity Employed a new program manager
in 1st of November to oversee the work of the
charity and supporting the ongoing
management of Magombera and
establishment of botanical garden on the 13
acres of land purchased by the charity
Plas for establishment of the botanical
garden have advanced, with land
agreements in place to enable work to
commence to establish the botanical garden
on the 13 acre plot of land, including nursery
designs, installation of water infrastructure
and employment of key staff.
Purchasing tree nursery equipments
including wheelbarrows, water canes and
shovels.
Co-management agreement with Tanzania
Forest Service (TFS) agency signed to
assume co-management responsibility for
Magmbera Nature Forest Reserve, a small
(2,615 ha), but biologically diverse protected
area located next to our head office in
Mang’ula.
Developed first draft of MoU with the
adjacent village (Mang’ula A) for the
management of Botanical garden and MoU
for the management of Magombera Nature
Forest Reserve
Identifying Mother trees as well as mapping
its location for easier access to obtaining
seedlings.
Environmental training events having reached 5
primary schools with a total of 365 students in 4
villages.

Additional information (optional) You may choose to include further statements where relevant about:

Achievements against Para 1.41
objectives set
Performance of fundraising
activities against objectives Para 1.41
set

Para 1.41 Investment performance against objectives Other

Financial Review

Review of the charity’s
financial position at the end
of the period		 Para 1.21 The total amount of GBP 94,127 was
received from trusts and foundations and
University donoations as detailed in the
accompanying financial report. Total
expenditure was GBP 57,981. Balance at
year end GBP 36,146
Statement explaining the
policy for holding reserves
stating why they are held		 Para 1.22 A minimum 10% reserve is required to
provide a buffer to cover unexpected costs.
Amount of reserves held Para 1.22 £ 36,146
Reasons for holding zero
reserves		 Para 1.22
Details of fund materially in
deficit		 Para 1.24
Explanation of any
uncertainties about the
charity continuing as a going
concern		 Para 1.23 No concerns

Additional information (optional)

You may choose to include further statements where relevant about:

The charity’s principal
sources of funds (including
any fundraising)		 Para 1.47 Main source of funds for the charity for the
mentioned period was mainly from
Foundation Franklinia, United Bank of
Carbon, Southern Tanzania Elephant
Project, Lunds University, Leeds University,
Newcastle University
The charity has found it challenging to open
a UK bank account. Our application to
Barclays was rejected. The reason given
was that Barclays is divesting from support
to Africa. Our application to Natwest was
also unsuccessful, without a clear reason.
Please can the charity commission provide
some suggestions of suitable banks that
would be likely to accept our application for
opening a charity account?
Investment policy and
objectives including any
social investment policy
adopted		 Para 1.46
A description of the principal
risks facing the charity		 Para 1.46 Ability to open a bank account is the primary
limiting factor at present as this limits the
financial security of the charity

Other

Structure, Governance and Management

Description of charity’s
trusts:
Type of governing document
(trust deed, royal charter)		 Para 1.25 Constitution of Charitable Incorporated
Organisation; Mode of Operation
How is the charity
constituted?
(e.g unincorporated
association, CIO)		 Para 1.25 CIO
Trustee selection methods
including details of any
constitutional provisions e.g.
election to post or name of
any person or body entitled
to appoint one or more
trustees		 Para 1.25 Appointment of charity trustees
(1) Apart from the first charity trustees, every
trustee must be appointed by a resolution
passed at a properly convened meeting of
the charity trustees.
(2) In selecting individuals for appointment
as charity trustees, the charity trustees must
have regard to the skills, knowledge and
experience needed for the effective
administration of the CIO.

Additional information (optional) You may choose to include further statements where relevant about:

Policies and procedures
adopted for the induction and
training of trustees		 Para 1.51
The charity’s organisational
structure and any wider
network with which the
charity works		 Para 1.51
Relationship with any related
parties		 Para 1.51 Improved relationship with stakeholders in
the region, government of Tanzania through
direct working with respective Regional,
District and Division/village officials
Other

Reference and Administrative details

Charity name Reforest Africa

Other name the charity uses		 NA

Registered charity number		 1185419
Charity’s principal address 5 The Crescent
Princes Risborough
HP 27 0HT

Names of the charity trustees who manage the charity

Names of the charity trustees who manage the charity Names of the charity trustees who manage the charity Names of the charity trustees who manage the charity Names of the charity trustees who manage the charity Names of the charity trustees who manage the charity
Trustee name Office (if any) Dates acted if not for
whole year		 Name of person (or
body) entitled to
appoint trustee (if any)
1 Robin Loveridge
2 Antje Ahrends
3 Andrew Marshall
4 Gurveena
Ghataure
5 Olivia
Hanrahan-Soar
6 Samuel Kabiru
7 Tessa-Lee Jones
8 Josephina Oji
9
1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0

– Corporate trustees names of the directors at the date the report was approved Director name

Name of trustees holding title to property belonging to the charity

Trustee name Dates acted if not for whole year

Funds held as custodian trustees on behalf of others

Description of the assets
held in this capacity		 NA
Name and objects of the
charity on whose behalf the
assets are held and how this
falls within the custodian
charity’s objects		 NA
Details of arrangements for
safe custody and
segregation of such assets
from the charity’s own assets		 NA

Additional information (optional)

Additional information (optional) Additional information (optional) Additional information (optional) Additional information (optional)
Names and addresses of advisers (Optional information)
Type of
adviser		 Name Address
Name of chief executive or names of senior staff members (Optional information)

Exemptions from disclosure

Reason for non-disclosure of key personnel details

Other optional information

Declarations

Declarations Declarations Declarations Declarations Declarations Declarations Declarations
The trustees declare that they have approved the trustees’ report above.
Signed on behalf of the charity’s trustees
Signature(s)
Full name(s) Robin Loveridge
Position (eg
Secretary, Chair, etc)		 Trustee
Date 09/11/2021

Charity Name Reforest Africa

No (if any)

Receipts and payments accounts

For the period Period start date Period end date To from 1/1/2021 12/31/2021

Section A Receipts and payments

----- Start of picture text -----
Unrestricted Restricted Endowment
Total funds
funds funds funds
to the nearest
to the nearest £ to the nearest £ to the nearest £
£
A1 Receipts
Lunds University - 1,372 - 1,372
United Bank of Carbon 3,882 3,882
Southern Tanzania Elephant Project 4,427 4,427
Andrew Marshall 1,448 1,448
University of Newcastle 23,420 23,420
Leeds University - 3,697 - 3,697
Franklinia Foundation - 48,155 - 48,155
United Bank of Carbon - 5,482 - 5,482
University of Newcastle - 2,244 - 2,244
- - - -
- - - -
- - - -
- 94,127 - 94,127
Sub total (Gross income for AR)
A2 Asset and investment sales,
(see table).
- - - -
- - - -
Sub total - - - -
Total receipts - 94,127 - 94,127
A3 Payments
Salaries and Wages - 12,546 - 12,546
WCF - 115 - 115
NSSF - 2,404 - 2,404
Purchase of office equipmmnet 2,186 - 2,186
Vehicle Repair and Maintenance 524 - 524
Rent Expenses - 931 - 931
Accounting and Audit Fees - 345 - 345
Telephone and Internet - 83 - 83
Seeds and pesticides - 1,898 - 1,898
Bank Charges - 190 - 190
Electricity and Water Charges - 103 - 103
Environmental Conservation Costs - 414 - 414
Fuel Expenses - 190 - 190
Taxes - 1,769 - 1,769
Annual fees - 80 - 80
Medical Insurance Expenses - 103 - 103
Field expenses - Agrysis project 12,641 12,641
workshops expenses - Agrysis project 7,904 7,904
Field expenses -Insects Herbivore 671 671
Travel expenses 636 636
Consultancies - 9,618 - 9,618
General Office Expenses - 2,630 - 2,630
Total Payments [ - ] 57,981 - 57,981
- - - -
- - - -
Sub total [ - ] - - -
Total payments - 57,981 - 57,981
Net of receipts/(payments) - 36,146 - 36,146
A5 Transfers between funds - - - -
A6 Cash funds last year end - - - -
----- End of picture text -----

Cash funds this year end 36,146 - 36,146

Section B Statement of assets and liabilities at the end of the period at the end of the period
Unrestricted Restricted
Categories Details funds funds
B1 Cash funds Total cash funds to nearest £
-
-
-
-		 to nearest £
-
-
-
-
(agree balances with receipts and payments
account(s))		 OK
 Agreement Error
Unrestricted Restricted
funds funds
B2 Other monetary assets Details to nearest £
-
-
-
-
-
-		 to nearest £
-
-
-
-
-
-
B3 Investment assets Details Fund to which
asset belongs		 Cost (optional)
-
-
-
-
-
B4 Assets retained for the Details
13 acre plot of land on which a botanic		 Fund to which
asset belongs		 Cost (optional)
-
charity’s own use 2 motor vehicles
1 ofce facility		 -
-
-
-
-
-
-
-
B5 Liabilities Details Fund to which
liability relates		 -
-
-
-
-
Amount due
(optional)
Signed by one or two trustees on
behalf of all the trustees		 Signature Print Name
Robin Loveridge Robin Loveridge

----- Start of picture text -----
CC16a
----- End of picture text -----

----- Start of picture text -----
Last year
----- End of picture text -----

to the nearest £

-

-

-

-

Endowment funds

to nearest £ - - - -

OK

Endowment funds to nearest £ - - - - - -

Current value (optional) - - - - -

Current value (optional) - - - - - - - - - When due (optional)

Date of approval

8/4/2022

SIBE FINANCIAL SERVICES

REFOREST AFRICA

REPORT OF MEMBERS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

SIBE FINANCIAL SERVICES P.O BOX 62951 Mob: - +255 787 230 463 + 255 767 230 463 E. Mail: - sibefs2000@gmail.com Website: - DAR ES SALAAM TANZANIA

REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

CONTENTS PAGE Organization information 3 Members’ report 4-6 Statement of Members’ Responsibilities 7 Declaration of Head of Finance 8 Auditors’ Report 9-13 Statement of Financial Position 14 Statement of Financial Activity and Other Comp Income 15 Statement of Changes in Equity 16 Statement of Cash flow statement 17 Notes to the Financial statements 18-29

(2)

REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

ORGANIZATION INFORMATION

PRINCIPAL PLACE OF BUSINESS: Morogoro Region, Tanzania

REGISTERED OFFICE : Mang’ula, Kilombero District P.O. Box 60118, Morogoro Region Tanzania.

.

ORGANIZATION PRINCIPAL BANKERS: CRDB-SUA BRANCH MOROGORO

ORGANIZATION AUDITORS : SIBE FINACIAL SERVICES Certified Accountants and Auditors P.O.BOX 62951 DAR-ES-SALAAM TANZANIA

(3)

REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

REPORT OF MEMBERS

The members present this report and the audited financial statements for the year ended 31[st] December 2021 which disclose the state of affairs of Reforest Africa. The audited financial statements are set out on page 9 to 13.

1 INCORPORATION

The Organization is registered as an International NGO under NGO Act, 2002 on 19[th ] December 2019, with registration number I-NGO/R/0826.

2 PRINCIPAL OBJECTIVES OF THE ORGANIZATION AND THE PERFORMANCE FOR THE YEAR

The Organization’s main activity is forest restoration and conservation to help both wildlife and people.

State of affairs

In the opinion of the members the state of the Organization affairs is satisfactory and there has been no material change which would affect the financial statements as presented.

During the year ended 31[st] December 2021 the Organization made no surplus or deficit as the Organization spent the grants received in line with donors’ approved budget. However, for the activities to be performed in the next accounting period its related grant received is treated as deferred Income and property of the Organization, whenever derived shall be applied solely towards the promotion of the objects of the Organization and no portion thereof shall be paid or otherwise howsoever by way of profit to the members of the Organization save for such expenses incurred for the Organization.

3 MEMBERS

The names of the members at the date of this report and of those who held office during the year are as follows:

Name Position Citizenship
1 Andrew R.Marshall Chairperson British
2 DeoDShirima Member Tanzanian
3 Robin Loveridge Treasurer British
4 AntjeAhrends Member Germany
5 HamiduAmiSeki Member Tanzanian
6 Herman M Lyatuu Project
Coordinator
Manager		 Tanzanian

4 ORGANIZATION GOVERNANCE

The Members are committed to the principles of good Organization governance and recognize the need to conduct the business in accordance with generally accepted best practice. In so doing, the Members therefore confirm that:

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

5 DIVIDENDS

Not applicable

6 RISK MANAGEMENT AND INTERNAL CONTROLS

The members accept final responsibility for the risk management and internal control systems of the Organization. It is the task of members to ensure that adequate internal financial and operational control systems are developed and maintained on an ongoing basis in order to provide reasonable assurance regarding:

The efficiency of any internal control system is dependent on the strict observance of prescribed measures. There is always a risk of non-compliance with such measures by staff. Whilst no system of internal control can provide absolute assurance against misstatement or losses, the Organization’s system is designed to provide the members with reasonable assurance that the procedures in place are operating effectively.

The members assessed the internal control systems throughout the financial year ended 31st December 2021 and are of opinion that they met accepted criteria.

7 PROPERTY, PLANT AND EQUIPMENT

Information relating to movement in Property Plant and Equipment is shown in Note 4 to the financial statements. In the opinion of the members the market values of the Organization’s properties are not less than the value shown in these financial statements.

8 EMPLOYEES WELFARE-Management/employees relationship

The relationship between employees and the management is cordial. There were no unresolved complaints received by the management from the employees during the year.

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

9 DISABLED PERSONS

Disabled persons are given first priority in filling job vacancies appropriate to them.

10 RELATED PARTY TRANSACTIONS

All related party transactions and balances are disclosed in note 7 to the financial statements.

11 POLITICAL AND CHARITABLE DONATIONS

The Organization did not make any political donations during the year 2021.

12 CORPORATE SOCIAL RESPONSIBILITIES

The Organization participates actively in community activities and development programs throughout the country.

13 FINANCIAL COMMITMENTS

The members are of the opinion that all known liabilities and commitments have been taken into account. These liabilities are relevant in assessing the Organization’s state of affairs.

14 EVENTS AFTER REPORTING DATE

As stated in Note 9 there are no events or transactions that have occurred since the reporting date which would have a material effect on the financial statements as presented.

15 FORMAT OF FINANCIAL STATEMENTS

The financial statements of REFOREST AFRICA have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB).

16 AUDITORS

The auditors SIBE FINANCIAL SERVICES have expressed their willingness to continue in office and are eligible for re-appointment. A resolution proposing the reappointment of SIBE FINANCIAL SERVICES as auditors of the Organization for 2022 will be put to the Annual General Meeting.

12/04/2022 Date

Country Secretary

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

STATEMENT OF MEMBERS RESPONSIBILITIES

The NGO Act, CAP 365 requires the members to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the Organization as at the end of the financial period and of its profit or loss. It also requires the members to ensure that the Organization keeps proper accounting records that disclose, with reasonable accuracy, the financial position of the Organization. The members are also responsible for safeguarding the assets of the Organization.

The members 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 Financial Reporting Standards and the requirements of the NGO Act, CAP 365.The members are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Organization.

The members 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 external auditors are responsible for independently reviewing and reporting on the Organization’s financial statements. The Financial statements have been examined by the external auditors and their report is presented on pages 9 to 13.

Country Secretary

12/04/2022 Date

(7)

REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

DECLARATION OF THE HEAD OF FINANCE/ACCOUNTING OF REFOREST AFRICA

The National Board of Accountants and Auditors (NBAA) according to the power conferred under the Auditors and Accountants (Registration) Act. No. 33 of 1972, as amended by Act No. 2 of 1995, requires financial statements to be accompanied with a declaration issued by the Head of Finance/Accounting responsible for the preparation of financial statements of the entity concerned. It is the duty of a Professional Accountant to assist Members/Governing Body/Management to discharge the responsibility of preparing financial statements of an entity showing true and fair view of the entity position and performance in accordance with applicable International Accounting Standards and statutory financial reporting requirements. Full legal responsibility for the preparation of financial statements rests with the Members/Governing Body as declared under statement of members’ responsibility on an earlier page. I FIONA GHUMPI being Finance and Administration Manager of REFOREST AFRICA hereby acknowledge my responsibility of ensuring that financial statements for the year ended 31[st] December 2021 have been prepared in compliance with applicable accounting standards and statutory requirements. I thus confirm that the financial statements give a true and fair view position of REFOREST AFRICA as on that date and that they have been prepared based on properly maintained financial records.

Signed by:

Position: FINANANCE AND ADMINISTRATION MANAGER

NBAA Membership No.: ACPA 711

Date: 12/04/2022

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

INDEPENDENT AUDITORS’ REPORT

Report on Audit Financial Statements

Opinion

We have audited the Organization’s financial statements of REFOREST AFRICA which comprise the statement of financial position as at 31[st] December 2021, the statement of financial activity and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes set out on pages 19 to 29 of this report in accordance with International Financial Reporting Standards and the requirements of the NGO Act, CAP 365.

In our opinion the Organization financial statements give true and fair view of the state of Organization’s financial affairs as at 31[st] December 2021 and of its financial activity and cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRSs”) and the requirements of the NGO Act, CAP 365.

Basis for opinion

We have conducted our audit in accordance with International Standards on Auditing (ISAs) and such other audit procedures we considered necessary in the circumstances. Our responsibility is to express an independent opinion on the financial statements based on the audit. The standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Independence

We are independent of the Organization in accordance with the National Board of Accounts and Auditors code of Ethics is consistent with International ethic standards Board for Accountants’ code of Ethics for Professional Accountants (IESBA Code), together with other ethical requirements that are relevant to our audit of the financial statements in Tanzania. We have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained was sufficient and appropriate to provide a basis of our audit opinion.

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs require us to report to where:

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter inaudit **How our audit addressed the key audit matter **
New revenue accounting standard
The
application
of
new
revenue
accounting standard involves certain
key
judgements
relating
to
identification of distinct performance
obligations,
determination
of
transaction price of the
identified
performance
obligations,
the
appropriateness of the basis used to
measure revenue recognized over a
period.Additionally,new
revenue
accounting
standard
contains
disclosures which involves collation of
information in respect disaggregated
revenue and periods over which the
remaining performance obligations will
be satisfied subsequent to the balance
sheet date.
Refer to note3.1.5of the financial
statements
on
the
revenue
determination.		 We assessed theOrganizationprocess to identify
the impact of adoption of the new revenue
accounting standard.
Our approach consisted testing of the design and
operating effectiveness of the internal controls and
substantive testing as follows:
Evaluated the design of internal controls relating
to implantation of new revenue accounting
standard.
Selected a sample
of
continuing and new
contracts, and tested the operating effectiveness of
internal control, relating to identification of the
distinct
performance
obligations
and
determination of transaction price. We carried out
a combination of procedures involving enquiry
and observation, reperformance and inspection of
evidence in respect of operation of these control.
Tested
the
relevant
information
technology
systems’ access and change management controls
relating to contracts and related information used
in recording and disclosing revenue in accordance
with the new revenue accounting standard.
**Conclusion **

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Our procedures did not identify any material exceptions.

Other Information

The members are responsible for the other information and report of members.

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 on the other information that we obtained prior to the date of this auditor’s report, we conclude there is material misstatement of this other information, and we are required to report that fact. We have nothing to report in this regard.

Responsibilities of management and those charged with Governance for the financial statements

The Directors of Organization are responsible for the preparation presentation of these financial statements that give a true and fair view of in accordance with International Financial Reporting Standards and the requirements of the companies ACT, 2002, and for such internal controls as members determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statement the directors are responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances and assessing the Organization’s ability to continue as going concern,disclosing,as applicable, the 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.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Organization’s 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.

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

We communicate with members 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.

Report on Other Legal Requirements

This report, including the opinion, has been prepared for, and only for, the Organization’s members as a body in accordance with the NGO Act,2002 and for no other purposes.

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Date 12/04/2022

STATEMENT OF FINANCIAL POSITION AS AT 31[ST] DECEMBER 2021

NOTES
ASSETS
Non-current Assets
Property, Plant and Equipment
4
Total Non-current Assets
Current Assets
Cash and Cash Equivalents
Total Current Assets
TOTAL ASSETS
FINANCED BY:
Accumulated Residue/(Deficit)
Deferred Revenue
Total Equity and
Liabilities		 2021
2020
Tshs
Tshs
73,435,91577,421,394
73,435,91577,421,394
112,179,385 7,356,504
112,179,385 7,356,504
185,615,30084,777,898
73,435,91477,421,394
112,179,385 7,356,504
185,615,300 84,777,898

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REFOREST AFRICA

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Deo Shirima

Name Signature Date 12/04/22

Country Secretary

Notes 18 to 29 form an integral part of these financial statements

STATEMENT OF FINANCIAL ACTIVITY AND COMPREHENSIVE INCOME FOR THE YEAR ENDED 31[ST] DECEMBER 2021

2021 2020
Tshs Tshs
Receipts from Grants 5 178,470,312 153,251,428
Operating Overheads 6 (178,470,312) (153,251,429)
Operating Residue/(Deficit) 0 (0)

Notes 18 to 29 form an integral part of these financial statements

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REFOREST AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

STATEMENT OF CHANGES IN EQUITY STATEMENT OF CHANGES IN EQUITY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER, 2021.
Accumulated Fund TOTAL
Tshs. Tshs.
Balance as at 1 January, 2021. 77,421,393 77,421,393
Adjustment made for additional assets Depreciation (3,985,479) (3,985,479)
Surplus/(Deficit) -
-
Balance as at 31 December, 2021. 73,435,914 73,435,914

Notes 19 to 29 form an integral part of these financial statements

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31[ST] DECEMBER 2021

2021 2020
Tshs Tshs
Cash Flows from Operating Activities
Cash received from Grants 262,642,637 142,737,194
Cash Payments:
Payments to Suppliers and Employees (168,145,033) (95,999,694)
Net Cash flow from operating Activities 94,497,604 46,737,500
Cash Flow from Investing Activities
Acquisition of Non-current Assets 6,339,800 (46,737,500)
Net Cash flow from Investing Activities 6,339,800 (46,737,500)
Cash Flow from financing Activities
Capital fund 3,985,476 (12,744,834)
Net Cash flow from Financing Activities 3,985,476 (12,744,834)
Net Change in Cash and Cash Equivalents 104,822,880 (12,744,834)
Cash and Cash Equivalents at the Beginning of the
Year 7,356,504 20,101,339
Cash and Cash Equivalents at the End of the Year 112,179,385 **7,356,504 **

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Notes 19 to 29 form an integral part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS

1 GENERAL INFORMATION

The Organization is registered in Tanzania under NGO’s Act No 24 of 2002 and is domiciled in Tanzania.

2 BASIS OF PREPARATION

2.1 Statement of compliance

The Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS). Where an International Financial Reporting Standard does not address a particular issue, the appropriate International Financial Reporting Standard / International Accounting Standard (IAS) has been applied.

The preparation of Financial Statements in conformity with general accepted accounting practices requires the use of estimates and assumptions that affects the reported amounts of assets and liabilities at the date the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates.

2.2 Basis of measurement

The accounting principles recognized as appropriate for the measurement and reporting of the Statement of financial performance, statement of financial position and cash flows on the accrual basis using historical cost are followed in the preparation of the Financial Statements.

2.3 Functional and Presentation currency

These Financial Statements are prepared in Tanzanian Shillings.

2.4 Use of Estimates and Judgments

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the application of assets, liabilities, income and

expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a going concern basis. Revisions to

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the Financial Statements are:

2.5 Adoption of new Standards and interpretations

2.5.1 Standard and interpretations effective in the current year

In the current year, the company has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations:

Since March 2020, the IASB has issued the following:

Amendment to IFRS 16, ‘Leases’ - COVID-19 Rent related concessions (May 2020 and March 2021)

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest rate benchmark (IBOR) reform

Amendments to IFRS 17 and IFRS 4 ‘Insurance contracts’

Narrow scope amendments to IFRS 3, ‘Business combinations’, IAS 16, ‘Property, plant and equipment’, and IAS 37 ‘Provisions, contingent liabilities and contingent assets’

Annual Improvements 2018-2020

Amendments to IAS 1, ‘Presentation of financial statements’, IFRS Practice statement 2 and IAS 8, ‘Accounting policies, changes in accounting estimates and errors’

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the organization.

.

2.6 Going Concern

The Organization’s management has made an assessment of the ability of the conservation operations to continue as going concern and is satisfied that it has the resources from donor to continue for at least one year under the COVID 19 pandemic which has led to withdrawal

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

support from key funder. Furthermore, management is working hard at international level to secure necessary resources in order to mitigate the uncertainties that may cast significant doubt upon the Organization’s ability to continue as a going concern. Therefore, the financial statements will for now continue to be prepared on the going concern basis unless otherwise the situation turn into worst case scenario.

3 SIGNIFICANT ACCOUNTING POLICIES

3.1 Foreign Currency Translation

a) Foreign currency translation

The transaction in foreign currencies is translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the financial position date are translated to Tanzanian Shillings at the foreign exchange rate ruling at that date.

b) Financial Statements of foreign operations

The assets and liabilities of foreign operations including goodwill and fair value adjustments arising on acquisition are translated to Tanzanian Shillings at foreign exchange rates ruling at the financial position date. The income and expenses of foreign operations are translated to Tanzanian Shillings at average rates. Translation differences on non monetary financial assets such as equities classified as available for sale are included in the fair value reserve in equity.

3.1.1 Presentation of Financial Statements

These Financial Statements are presented in accordance with the International Accounting Standards IAS as follows:

3.1.2 Financial Instruments

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments are classified into the following categories upon initial recognition: 

  - Loans and receivables;

  - Financial assets at fair value through statement of financial performance;

  - Held to maturity investments ; and

  - Available for sale financial assets.

3.1.3 Property, Plant and Equipment

i) Recognition and measurement

Items of Property, Plant and Equipment are measured at historical cost less accumulated depreciation and accumulated impairment loss. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, and the costs of dismantling and removing are allocated. Cost also may include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of Property, Plant and Equipment.

All other repairs and maintenance are charged to the statement of Comprehensive income during the financial period in which they are incurred.

ii) Reclassification to Investment Property

Property that is being constructed for future uses as Investment Property is accounted for as property, plant and equipment until construction or development is complete, at which time it is re-measured to fair value and reclassified as investment property. Any gain or loss arising on re-measurement is recognized in statement of Profit or Loss and Other Comprehensive income .

When the use of property changes from owner occupied to investment property, the property is measured to fair value and reclassified as investment property.

iii) Subsequent Costs

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

economic benefits embodied within the part will flow and its cost can be measured reliably.

iv) Depreciation

Depreciation is calculated on reducing balance basis to recognize the consumption of economic benefits of an asset over its useful life.

Depreciation assets are classified as follows:

Description
 rate
Motor Vehicle 25%
Office Machines &equipment 12.5%
Furniture and fittings
 12.5%
Computer
 37.5%

3.1.4 Impairment

Financial Assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

All impairment losses are recognized in statement of Comprehensive income. Any cumulative loss in respect of an available-for-sale financial asset recognized previously in equity is transferred to statement Comprehensive income.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. For financial assets measured at amortised cost and available-for-sale financial assets that are debt

securities, the reversal is recognised in statement of financial performance. For available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.

3.1.5 Revenue recognition

The Organization depend much on grants received from various donors as a source of revenue. Grants are recognized on cash basis and therefore there are no accruals for grants not received. Grant balances at year ends are carried forward to the next financial year.

3.1.6 Accounts Receivables and Loans

Accounts receivables are carried at original amortised amount less an estimate made for doubtful debts based on a review of all outstanding amounts at the year-end. Provision for bad and doubtful debts is made in respect of specific debts, which have been outstanding for recovery for one year and are considered doubtful of recovery.

3.1.7 Cash and Cash Equivalents

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

For the purpose of the cash flow statement, cash and cash equivalents comprise of cash in hand, deposits held with banks and investments in money market instruments.

3.1.8 Financial Assets and Liabilities

The entity classifies its financial assets in the following categories: at fair value through statement of Profit and Loss and comprehensive Income, loans and receivables, and available for sale. The classification depends on the purpose for which the financial assets were acquired. Directors determines the classification of its financial assets at initial recognition and re-evaluates this designation at every reporting date.

3.1.9 Accounts Payables and Others

Accounts Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

3.1.10 Income tax

Income tax expense is the aggregate of the charge to profit or loss in respect of current income tax and deferred income tax. Current income tax is the amount of income tax payable on the taxable profit for the period determined in accordance with the Tanzanian Income Tax Act, 2004.

Deferred income tax is provided in full, using the liability method, for all temporary differences arising between the tax bases of assets and liabilities and their carrying values for financial reporting purposes. However, if the deferred income tax arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss, it is not accounted for. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted at the statement of financial position date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which temporary differences can be utilised.

3.1.11 Provisions

Provisions are recognized when the operation of services has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

3.1.12 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit and loss in the period in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite useful life economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life reviewed at least at the end of each reporting period. Changes in the expected useful life or

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

the expected pattern of consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

The amortisation expense on intangible assets with finite lives is recognized in the income statement as the expense category that is consistent with the function of the intangible assets, but is tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life continues to be supportable, if not, the change in useful life from indefinite to finite is made on a prospective basis.

As at 31[st] December 2021, the Organization did not have any indefinite intangible assets.

3.1.13 Employee benefits

Short-term employment benefits such as salaries, social security contributions, and leave fare assistance are recognized in profit or loss when they fall due.

Post-retirement benefits

The business does not have arrangement for post-retirement benefits.

Other long term benefits

Other long-term benefits are recognized when an obligation arises. The Organization had no other long-term benefit commitments during the year.

NOTE 4

NOTE 4
BOTANICAL MOTOR
GARDEN VEHICLE OFFICE COMPUTERS FURNITURE TOTAL
EQUIPMENT AND
FITTINGS
COST Tshs Tshs Tshs Tshs Tshs Tshs
As at 1 January, 2021. 43,889,000.00 55,348,500 1,765,000 2,816,127 103,818,627
Valuation - -
Additions 6,339,800 6,339,800
Disposal - -
As at 31 December, 2021. 43,889,000 55,348,500 1,765,000 6,339,800 2,816,127 110,158,427
DEPRECIATION
As at 1 January, 2021. 25,298,063 413,672 685,499 26,397,233
Additions - -
Disposal - -
Charge for the year 7,512,609 168,916 2,377,425 266,328 10,325,279
As at 31 December, 2021. -
32,810,672		 582,588 2,377,425 951,828 36,722,512

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

NET BOOK VALUE

As at 31 December, 2021.
43,889,000
22,537,828
1,182,412
3,962,375
1,864,299		 As at 31 December, 2021.
43,889,000
22,537,828
1,182,412
3,962,375
1,864,299
As at 31 December,
2020.
43,889,000
30,050,438
1,351,328
2,130,628
NOTES 5
RECEIPTS
Grants
Other Income (Private Donation)
NOTE 6
OPERATING OVERHEADS
Accounting and Audit Fees
Salaries and Benefits
Salaries and Wages
WCF
PAYE
NSSF
Repair and Maintenance
Vehicle Repair and Maintenance
Other Operating Expenses
Rent Expenses
Telephone and Internet
Seeds and pesticides
Bank Charges
Electricity and Water Charges
Environmental Conservation Costs
Fuel Expenses		 2021
2020
163,945,035
142,737,194
4,200,000
168,145,035
142,737,194
1,000,000
1,900,000
36,383,857
34,110,946
333,857
1,712,350
6,970,841
7,248,739
43,688,555
43,072,035
1,520,000
8,316,000
1,520,000
8,316,000
2,700,000
3,000,000
240,000
5,505,500
16,433,404
550,912
699,969
300,000
1,200,000

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Workshops expenses-Agrysis
project
Insurance Expenses
Office Equipment-Computers
Field cost
Transport and Travelling expenses
Depreciation
Power Tiller
Botanical garden
Field Assistants/facilitators
General Office Expenses
Withholding Tax/Taxes
Medical Expenses
Total operating expenses		 550,000
22,921,000
1,652,000
6,339,800
38,604,394
14,576,130
1,844,000
915,000
10,325,279
10,514,235
2,848,500
43,889,000
27,892,000
2,850,000
7,858,428
1,880,000
5,130,444
398,157
300,000
307,000
132,261,757
99,963,394
178,470,312
153,251,429

7. RELATED PARTY TRANSACTIONS

Key management personnel are described as those persons having authority and responsibility for planning, directing and controlling the activities of the Organization directly or indirectly, including any director of the Organization. There were no related party transactions during the period under review.

8 FINANCIAL RISK MANAGEMENT

The Organization’s activities expose it to a variety of financial risks including credit risk, liquidity risk, foreign currency risk and operational risks. The Organization’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Organization ‘s financial performance.

Management is accountable to the members for ensuring effective risk management activities and adherence to the risk appetite limits set by the members.

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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2021

Primary responsibility for management of these risks lies with the individual departments or business units in which they arise. It is the responsibility of the respective department to ensure appropriate assessment and management of the individual risks within the Organization and to report the same to the management who report to the Board.

The Organization’s risk management policies are established to identify and analyzed the risks faced by the Organization , to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions, products and services offered.

Credit risk

The Organization takes on exposure to credit risk, which is the risk that counterparty will cause a financial loss to the financial institution by failing to discharge an obligation. Credit risk is the most important risk for the Organization’s business; management therefore carefully manages its exposure to credit risk. Credit exposures arise principally in short-term cash surpluses only with banks of high credit standing

Accordingly, the Organization has no significant concentration of credit risk that has not been adequately provided for.

Foreign exchange risk

The Organization takes on exposure to the effects of fluctuations in the prevailing foreign currency exchange rates on its financial position and cash flows.

Liquidity risk

Liquidity risk is the risk that the Organization is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are withdrawn. Management monitors the maturity gap of the Organization’s assets against maturing liabilities.

The Organization’s financial liabilities and net settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date.

9 EVENTS AFTER THE REPORTING DATE

There were no significant events after the statement of financial position date.

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