Trustees’ Annual Report for the period
From 01/01/2022 Period start date Period end date
To 31/12/2022
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 |
Ongoing assistance to the Tanzania Forest Service Agency in the management of Magombera Nature Forest Reserve. Working closely in making sure the forest reserve is managed well to reach its establishment objectives. Establishment of Magombera Community Conservation Forum as a platform for local villagers to give feedback on the management of the reserve Ongoing management and expansion of the Udzungwa Botanic Garden, starting to implement the the landscape design design through presenting it to the villages and discussing the MoU with Mangula A & B villages, BG maintained through clearing fire break and establishing a tree nursery capable of raising more than 100,000 seedlings, boundary marking and planting 360 seedlings of three tree species (Khaya anthotheca, Milicia excelsa and Cordyla africana) along the boundary. Prepared a tree nursery and vanilla agroforestry trials under natural and exotic tree We monitored 56 restoration trial plots and 20 new plots of were planted with 4,000 native trees, previous plots all these plots were maintained through clearing and re- measured growing stems to prevent plant competition and provide enough space for better growthof seedlings. Monitoring of |
| growth rate, mortality rate, fire resistance, regeneration and recruitment of new trees seedling were carried out between May and August to understand more on the restoration methodologies, techniques and to determine the survival rate of the planted framework species. Founded the Udzungwa-Kilombero Landscape Restoration Forum and held meetings with various stakeholders from 11 different public and private stakeholders, including District officials from 5 Districts, TFS, TANAPA, NGOs (TFCG, MCDI, AM, EFC, AWF, STEP, IUCN) and KSC, discussing potential areas for restoration across the 53,000 km2 Udzungwa- Kilombero landscape. Conducting awareness raising campaign named Magombera Forest Day on Forest managements, Restoration and good governance in Magombera Village. The event invited more than 1000 villages community members adjacent to Magombera NFR including all 4 village government officials, School teachers, school children from 5 schools and the wider communities |
||
|---|---|---|
| Statement confirming whether the trustees have had regard to the guidance issued by the Charity Commission on public benefit |
Para 1.18 | The trustees have had regard to the Charity Commission’s guidance 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 | Over 1000 community members attendedour environmental education events The 2615 ha forest of Magombera has been maintained and protected. Over 100,000 seedings have been grown in the Botanic Graden to support our restoration efforts. |
Additional information (optional) You may choose to include further statements where relevant about:
| Achievements against objectives set |
Para 1.41 | |
| Performance of fundraising activities against objectives set |
Para 1.41 | |
| Investment performance against objectives |
Para 1.41 | |
| Other |
Financial Review
| Financial Review | ||
|---|---|---|
| Review of the charity’s financial position at the end of the period |
Para 1.21 | The Charity received total income of GBP110,727, expenditure of 75,490, with net position of 35,237 |
| 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 | £35,237 |
| Reasons for holding zero reserves |
Para 1.22 | No income received by the charity to date. |
| 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)
| Additional information (optional) | 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, with grants from Flamingo Land and The Biodiversity Consultancy. |
| 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 | |
| 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 |
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 | |
| 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
| 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 |
Trustee name | Office (if any) | Dates acted if not for whole **year ** |
Name of person (or body) entitled to appoint trustee (ifany) |
|---|---|---|---|---|
| Robin Loveridge | ||||
| Antje Ahrends | ||||
| Andrew Marshall | ||||
| Gurveena Ghataure |
||||
| Olivia Hanrahan-Soar |
||||
| Samuel Kabiru | ||||
| Tessa-Lee Jones | ||||
| Josephina Oji | ||||
– 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 NA held in this capacity Name and objects of the NA charity on whose behalf the assets are held and how this falls within the custodian charity’s objects Details of arrangements for NA safe custody and segregation of such assets from the charity’s own assets
Additional information (optional)
Names and addresses of advisers (Optional information)
Type of Name Address adviser
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
The trustees declare that they have approved the trustees’ report above.
Signed on behalf of the charity’s trustees
| Signature(s) Full name(s) Position (eg Secretary, Chair, etc) Date |
||
|---|---|---|
| Robin Loveridge | ||
Trustee |
||
| 23/10/2023 | ||
| 23/10/2023 |
| Reforest Africa | Reforest Africa | Reforest Africa | Reforest Africa | Reforest Africa | No (if any) | No (if any) | No (if any) | CC16a | |
|---|---|---|---|---|---|---|---|---|---|
| For the period from |
01/01/2022 | To | 31/12/2022 | ||||||
| Section A Receipts and payments | |||||||||
| A1 Receipts | Unrestricted funds to the nearest £ - 39,701 30,000 - - - - - 69,701 - |
Restricted funds to the nearest £ 41,026 - - - - - - - 41,026 - |
Endowment funds to the nearest £ - - - - - - - - - - |
Total funds to the nearest £ 41,026 39,701 30,000 - - - - - 110,727 - - - 110,727 329 26,753 197 4,800 346 3,499 888 322 3,075 380 79 1,431 341 1,784 747 10,010 2,944 2,468 1,744 3,811 497 3,909 5,136 75,490 - - - 75,490 35,237 |
Last year to the nearest £ |
||||
| Fondation Franklinia Grant | - | - | |||||||
| Flamingo Land Grant | 39,701 | - | |||||||
| The Biodiversity Consultancy Conservation Fund |
30,000 | - | |||||||
| - | - | ||||||||
| - | - | ||||||||
| - | - | ||||||||
| - | - | ||||||||
| - | - | ||||||||
| Sub total(Gross income for AR) |
69,701 |
- | |||||||
| A2 Asset and investment sales, (see table). |
|||||||||
| - | - | - | - | ||||||
| - |
- | - | - | - | |||||
| ~~Sub total~~ | - | - | - | - | - | ||||
| Total receipts A3 Payments |
|||||||||
| - | |||||||||
| Accountingand audit fees | 329 | - | |||||||
| Salaries and wages | 26,753 | - | |||||||
| WCF | 197 | ||||||||
| NSSF | 4,800 | ||||||||
| Office renovation | 346 | ||||||||
| Vehicle repair | 3,499 | ||||||||
| Rent | 888 | ||||||||
| Telephone and internet | 322 | ||||||||
| Seeds andpesticides | 3,075 | ||||||||
| Bank charges | 380 | ||||||||
| Electricityand water | 79 | ||||||||
| Fuel | 1,431 | ||||||||
| Insurance expenses | 341 | ||||||||
| office equipment | 1,784 | - | |||||||
| Magombera Forest Dayactivities | 747 | - | |||||||
| Meetings and events | 10,010 | ||||||||
| Transport | 2,944 | ||||||||
| Depreciation | 2,468 | ||||||||
| Village support events | 1,744 | ||||||||
| Botanicgarden installations | 3,811 | ||||||||
| General office expenses | 497 | ||||||||
| Staff training | 3,909 | ||||||||
| WithholdingTax | 5,136 | ||||||||
| **Sub total ** | 75,490 | - | |||||||
| A4 Asset and investment purchases, (see table) |
|||||||||
| - | |||||||||
| - | |||||||||
| **Sub total ** | - | - | |||||||
| Total payments Net of receipts/(payments) A5 Transfers between funds A6 Cash funds last year end Cash funds this year end CCXX R1 accounts (SS) |
|||||||||
| - | |||||||||
| 35,237 | - | ||||||||
| - | - | ||||||||
| - | - | ||||||||
| 35,237 | - | ||||||||
| 23/10/2023 |
CCXX R2 accounts ISSI 2311012023
| Section B Statement of assets and liabilities at the end of the period | Section B Statement of assets and liabilities at the end of the period | Section B Statement of assets and liabilities at the end of the period | |
|---|---|---|---|
| Categories Signed by one or two trustees on behalf of all the trustees B1 Cash funds B2 Other monetary assets B4 Assets retained for the charity’s own use B5 Liabilities B3 Investment assets |
Signature Details Details 13 plot fo land for a botanic garden 2 motor vehicles 1 office facility Details Details Total cash funds (agree balances with receipts and payments account(s)) Details |
Unrestricted funds Restricted funds to nearest £ to nearest £ - - - - - - - - Agreement Error Agreement Error Unrestricted funds Restricted funds to nearest £ to nearest £ - - - - - - - - - - - - Fund to which asset belongs Cost (optional) - - - - - Fund to which asset belongs Cost (optional) - - - - - - - - - Fund to which liability relates Amount due (optional) - - - - - Print Name Robin Loveridge |
Endowment funds to nearest £ |
| - | |||
| - | |||
| - | |||
| - | |||
| OK | |||
| Endowment funds to nearest £ |
|||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| Current value (optional) |
|||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| Current value (optional) |
|||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| - | |||
| When due (optional) |
|||
| Date of approval |
|||
| Robin Loveridge | 23/10/2023 | ||
CCXX R3 accounts (SS)
23/10/2023
3
JSIBE FINANCIAL SER VICES C•rtln•d A¢¢•untant• & AudIt0 REFOREST AFRICA REPORT OF MEMBERS AND AUDITED FINANCIAL STATENIFNTS FOR THE YEAR ENDEf) 31ST DECEMBER 2022 SIBE FINANCIAL SERVICES P.0 BOX 62951 . Mob: . +255 787 230 463 + 255 767 230 463 E. Mail: . slbefs2001Ya Website: _ DAR ES SALAAM TANZANIA mail.com
REFOREST AFRICA FINANCIAL STATEMEIIT8 FOR THE YEAR ElED 318T DECEMBER 2022 CONTENTS PAGE Organization inforn)ation Members, report Statement of Members, Responsibilities Declaration of Head of Finance Auditors. Report 9-13 Statement of Financial Position 14 Statement nf Financial Activity and Other Cnmp Income Statement of Changes iu Equfty 16 Statement of Cash flow statement 17 Notes to the Financial statements 18-28 121
REFOREST AFRICA FINANCL4L STATEZ*lEfiTS FOR THE YEAR ENDED 3 DECEMBER 2022 ORGANIZATION INFORMATION PRINCIPAL PLACE OF BUSINESS.. Nlorogoro Region,Tanzania REGISTERED OFFICE Mangla. Kilombrro Distl"ILt P.n. Box 5. MoroRoro Region Tanzania. ORGANIZATION PRINCIPAL BANKERS: CRDB-SUA BRANCH MOROGORO ORGANIZATION AUDITORS STBE FINACIAL SERVICES Certified Accountants dnd Auditors P.O.BOX 62951 DAR-ES-SALAAM TANZANIA 131
REFOREST AFRICA FINANCIAL 8TATEMEPITS FOR THE YEAR ENDED 31$T DECEMBER 2022 REPORT OF MEMBERS The members presenl Ihis report and the audiied financial statements for the )"ear ended 31 ' December 2022 u.hich disclose the state of affairs of Reforest Africa. The audited financial statemcnTS are 8et out t)n page g to 1.3. INCORPORATION The Organization is registered as 2n Iniernaiional NGO under NC.() Act, 2002 on 19th December 2019. ryth registration fiumber l-NC,O/R/0826. PRIPICIPAL 0ECTIVEs OF THE ORGANIZATION AND THE PERFORMANCE FOR THE YEAR Tb.e Organizalion's main aciivily is (Oresi resloraiion and conservaiion to help both 14'ildlife and people. State of affats8 In the vpinivn of the members Jhe stale ol Ilie Organizalion affairs is satisfactorN- aiid there has been nd material change which would affect the riniincial staiemenis as prcsenicd. During the vear elided 31. Decetnber 2022 the Organization made no surplus or deficit as the Organizarfon spent the grants received in line with doiiors apprO.L.d budgiet. Hom'cver. for rhe activities to be pcrform(.d in the nexr accouniing period its related grajit reLeii'ed I Irealed defi'rrc'il Inc'ome cind prnperl¥' nf the nr%aniLation. 'heneVer derii'ed shall be applied soleli. iow'ards the promolioii of the objecis ol the C)rganization and no por(inn ihereof &ihall be paid or othenvise hO.%OeVer bi. 'a). of profil to the members ol the Organi7.ation save for such expe.nses incurred for the Organization. MEMBER8 The 1i2me$ nf the members at the date o( this report and Df those 'hO held orrice durinx the year arv as rollo.: Po$auo NAtlonallty Year •dml•lon Andre" R. Marshall ChaIrsn 4) Llniivd dom 2019 Deo D Shirima becretgn" 43 Tanzania Unitvd IKin&dom 2019 Robln lth'end Tri'asurer 36 Ani e Ahrends MeEnr 44 2019 Hamidu ATniseki lember 37 Tun7Ania 201¢1 Ilennan M L'atuu Nlember 37 2019 141
REFOREST AFRICA FifiANCIAL sfATEMETITS FOR THE YEAR ENDED 31tr7 DECEMBER 2022 ORGANIZATION GOVERNANCE The Members are commitred to the principles of good Organi7ation governance qnd reLo(ynize the need to condiiri the l)IisjIiVSS 111 a(.1.()rdlII'r th lili griitri-i411 accepted best practice. In so doing. the Members iherefore confirm ihal.. Nlembers mei regularli. throughout the N'ear.. Thcs- retain tiill and ctycctii'c control ok-cr rhc Urganizaiion and nioIiitvr execurii'e managcment.. lembers acceplb alid exercises respL)n8ibiliti, for 21r.IteEic qnd palics. dccisions. the approN'al of budgets and thc monitoring ol perfui-iiiaiiic: aiid TheN, bring skills and experience from their own spheres of business to romplement the prolessional experience and skills of the management team. IUSK MANAGEMENT AND INTERNAL CONTROI The members accept final re.%ponsibilitt. for the risk management and internal control gN'Stems of the Organization. It is the task of mernbcrs to ensiirc that adequate internal finanl'ial and operationdl control si'stcms .'Irc dc'velnp(.d lind maintained on an ongoing basis in order io provide reasonable asburance regarding: The cffcctivcness and cfficicncy of opcrations., The SafeIrdIn)f the Organi7Aiion's assets; Compliance with applicable La,3 and regulations. The reliabilitN' of accounling records; Busint'b¥ SUStainabiliti' under normal as well as adverse conditions., and Responsible behavkors toivards all srakeholders. Tne erricienci, of an! internal control s5'Stem is dependent on Ilie sirici nbscrvance of prescribéd measurcs. There. is al.aN"S a risk of non-conipliancr with such measures b!, staff. Whilst no sysrem ()f internal control can pr()K'idc' absolute assurance against misstatemtnt vr losses. the organizatlun, ss'stvm is designed lo provide ilie members w'ith reasonable assurance Iliat the procedures in place are operating effectivelv. The members assessed the inrernal control SVSTems througliout the financ'iiil year ended 31st December 2022 and are of opinion that they met acceptecl criteria. PROPERTY, PLANT AND EQUIPMENT Information rclating to movement in Property Plant and Equipment 18 sh'n in Note 4 to the financial sratements. In the opinion of the Members the marker values ol the Organization s properties are noi Icss than tlie i'aliic shoivn in these financial statements. EMPLOYEES WELFARE-Managementlemployees relatlonship Tlit reldiioiiship betii'¢en ¢inploi-ec% ancl the InaiiagcmcnT 18 cordial. There IFere no unresolved complaints recpived hs, the manageTnpnt frnm the employees during the K'ear.
REFORE8T AFRICA FINANCIAL 8TATEMENT8 FOR THE YEAR ENDED 318T DECEMBER 2022 DISASLED PERSOIqS Disabled persons are given first priorit5" in filling job vacancies appropriate to them. 9 RELATED PARTY TK4NSAcfioNS All related partN' rransacTions and balances are disr.losed in note 7 to the rinancial statements. 10 POLITICAL AfiD CHARITABLE DONATIONS The Organization did not make ani, political donations during Ihe year 2022. 12 CORPORATE SOCL4L RESPONsIèILlTIES The Organization participates actii'ely in communitN' activities and devel()pinent programs throughout the country. 13 FINAficiAL COMMITMENTS The mcmbers are of the opinion that all known liabilities and comrnitments have been taken into account. I'hese liabilitics arc relL'k'ant in assessing the Crganization's stale of affairs. 14 EVENTS AFTER REPORTING DATE As stated in Note 9 there are no evenis or Iransactions that Iidl'v LILLllI'I-vd since the reporting date which would have a material effect on the financial statements as prcscntcd. 15 FORMAT OF FINANCIAL STATEMENTS The ftnancial statements of REFOREST AFRICA have beeii prepared in accordance with Intcrnational Financial Rcporting Standards IIFRSI issued by thr I ntcrn8tional Accoiinting Standard Boa rd 11.4SBI. 16 4kUDITORS The auditors SIBE FINANCIAL SERVICES have expressed their '1111ngnesS to continue in olee and are eligible fnr re-appointment. A resolution proposing the reappointment (Jf SIBE FINANCL4L SERVICES as auditars of the Organization for 2023 will be put to the Annual General Meeting. Country Secretary 1410412023 161
REFOREST AFIUCA FINANCIAL STATEhlEfiTS FOR THE YEAR ENDED 31 DECEMBER 2022 STATEMENT OF MEMBERS RESPONSIBILITIES The NGC) Act. CAP 365 requires the members ro preparL fiiiaJiLial statcments for each financial period that gil'e a Inie and fair vie. of the st<il¢ of affairs 01- the Organization as aT the end of the fjnancicil pc'riod £ind (Trf its profit or loss. I I also reqiiires the member8 to ensure that the OrganizaTion keep8 prni)er accounting records ihat disclose. with reasonable accurac}'. rhe fiiiaiiLial position of the Organization. The members are also responsible for sal'eguarding the assets of Ihe Organizaiion. The members accept responsibjliry for the annual financial Statements. which hai'e been prepared using appropriate accoiinting policies siipp(Jrted bs. reasondble and prudent judgments and eslimates. in c'onlormit.I' with International Financial Reporting Standard8 and rhe reqiiirement8 nf Ihe NGO A[. OAP 36.i.The members are of the opinion that the finaijcial st<)reiiient8 give a truc and fair ]eW of thc state of the fiiiancial affairs of the Or&anizaiiiiii. The members funher Accept fesponsibilirv for the maintenance ()1 ac.counting records that may be relied upon in the preparation of financial stalemeiits, as well as adcquate si'srsms of iniernal financ'ial coiitrol. The exTernal ¥1uditors (ire re8pon8ible. for independenilN' review'ing ¢iiid I"vi)riri Iiig on rhe Organi£aiion's financial siaiements. The Financial siai pmviii q hdl'e l)eeii examined b! the external auditors and Iheir report is presented on pagcs g to 13. 04 2023 Country Secretary Date 171
REFOREST AFRICA FINANCIAL STATEMENT8 FOR THE YEAR ENDED 3 Isr DECEMBER 2022 DECLARATION OF THE HEAD OF FINANCEIACCOUNTING OF REFOREST AFRICA The JNational Board of Accountants and Auditors INBAAI ac.cording to the. power conferred under rhe Auditors and Accoiintant3 (Rcgisrratioiil Act. NcTr. of 1972, as amended bN Act No. 2 of 199). reqLiirL's finani-ial statcmcnrs t() be a'icompanied '1th 2 declaration issued the Head uf Finance/Accountiii rcsE)onsiblc lor thc PAcparation ol iinanciaL statcmcnts of The eniiii, cnneerned. It is the duty of Professioiial Ac.countanT t() assist Iviiibvi- /Ci(Trveriiiiig Body/Managenient to discharge the respDnsihilitN' nf prvparing financial statements of an entit! shoAn£ true and fair i'le, of the entit! position and performance in accordance ii'irh applicable International Accoknnting Standards and statutary financial reporting requirements. Fiill legal respoiisibilil! for tlie preparation or rLnaiiciaJ statemenTS rests 'Ith the Mcmbers/Governing Body as declarL.d under statemc'nl of mt'inl)c"rs' responsibilitt" on an earlier page. l FIONA GHUMPI being Finance and Administratl()n Manager of REFOREST AFRICA hereby acknou,ledge iny rt'%ponsibilin- af cnsuringi that financial stat¢'mLnts for the .yLar c'n(ILd 314t )0?2 hai'e been prepartd in conipliance ii'ith applicable ac-c'oiiiitirig December _ sl8iidards aiid statiitor)- requirements. thLlS cniilirm thc?t the financi<il srarement.8 give a true and fair Niew posirion af REFOREST AFRICA 8% ()n that dare and that the.y have been prepared based on properl) maintained financial reiords. Signed by.. Fiona Ghumpi Pnsition.. FIN.4,N.4NCE AND ADNII.NISTRATION NI.4NAGER NBAA ML'mbership No.: ACPA 711 Date: 1310412023 181
REFOREST AFIUCA PINANCIAL sfATEMENTS FOR THE YEAR ENDED 3 187 DECEMBER 2022 INDEPENDENT AUDITORS. REPORT Report on Audlt Financial Statements Opinion Wi" have auditcd the Organization's finaneial statements of REFOREST AFRIC.4 whiLh comprise the statement of financial position as at 31SI Decemher 2022, the %tdtenient ol financial aciivilv and nther comprehensii'e inerime, statement of changes in equitt. and statemeni of cash flows lor the }'ear tlieii ended. aiid a summar! of significant accounting policies and other expldnatory notes sel oui on pages 18 to ?8 of this report in accordance '1th Intern2¢ tional F3n¢lncial Reporting Standards and the requiremenis of the NGO Aci, CAP 36i. In OLir opinion the Organization fInaCIal qratements give true and fair iTiew of the state of Organfftzaiion s financial &1Tairs as at 3 i. December 20ti2 uiicl of its rinan(-ial activity and cash floil's for the vear then ended in accordance with Iniernatinnal Financial Reporting Siandards I IFRSs"l and tFie re4uireiiieJii& of the NGO Act, CAP 365. Ba818 for oplnlon ii'r liave cnnducted our audit in accordancc Th';th Internalional Standards on Audiiing IISASI and 8uch other audit pro('edures we c.onsidered iiec'e%%ari.' iii the circumstances. Our responsibiliti. is to express an indepeiident opiiiioii nIi the financial starements based un the audtt. The sfandards rcqijire rhcil comply ii'ith eihical requirements and plan and perform the audit 10 obtaiii rL'asonable assurance about whether the financial statements are free fr()m niatvridl mi%%tatemenr. An aijdit involves performing procedures to obtain audit evidence about the amounts and disclosiires in Ihe financial statements. I'he procedures selec-ted depend on the auditors, judgment. including the a8sessment of the risks of tnaterial misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of acLountiiig policies used and the reasonableness of accounting esiimates madc. by rtian.Igfmpnt, as ii'ell as ei'aluating the ol'erall presentation of the financial Independence {9
REFOREST AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 318T DECEMBER 2022 We are independent of the OrganizaTion in accordance il'ith the Ncltional Board of Acoounts and Auditors code of Ethics is consistent with International ethic standards Board for Accountants. code of Ethics for Profe.ssional Accountants IIESBA Code). together is-ith other ethical requirements that ai-r rcltsvanl to nlLY iiidit of the financial srarcmenrs in Tanzania. Illc hai'e fulfilled niir oihLr ethical responsibilities in accordance '1th these reqLiirements. We believe that the audit evidence we have obtained was sufficient and appropriate to provide a basis r)f our audit opinion. Concluslons Telatlng to going concern We have nothing to report in respect of the folloiving matters in relation to .hich ISAS require us to report io where". The members use of the going concern basis of accounting in the prL'pardtion of thL. financial statements is not upprnpriate or The metnbers have nol'disclosed in ihe finaiicial statements aiiy idenritied material Lthcertainties that mav cast significant doubt About the Organizaiion's ability 10 cnntinue to adopi the %oing concern basis ol. acc'oiinting for a geriod at lei?St tm'eli'e monihs froni the dclte i¥,hvn the rinancial statements are authorized for issue. Key Audlt Matter• Kei. audit matters are those matters that. in our professional judgement. 'ere of most bignificanLe in our audit Dr the finaiicial siatvmeiiis of the curretii prriod. Tliese m8tter8 were addressed ID the conrexl of nur audit of the finp4nciAI statcmLnts a5 a wholp and in forming oiir opinicjn thereon. and we do not provide a sep?r.?te opinion on these niatters. Ke audlt matter ID audlt New r¢venue a¢¢ounting standard The application of new revenue 'e assessed the Organization proi'e%g t() ideii | accounting standard involves certain the imparr of adoption of the new revenii I kev judgements relating to accounting standard. identifieation of distinct perfnrmance obligations. determinatlon of Our apprnaoli consistvd te%tingy {)f ihe dtr%ixii transaction price of the identified nperating efferrivencss of thc. intcniiil rniitr()I perfonnance obligations, the 8ubstantii¥e testing a8 follows.. l appropriateness of the basis used to measure revenue recognized oi'cr a Evaluated the design of inlerna] Cf)nirols rel,. pei iod.Additionall!'.new rekenue i{) irnplantatinn nf ne rei'enue accniii accounting standard coniains . standard. disclosure8 which involves cnllation of How our audlt addressed the ke audit mat 1101
REFOREST AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1ST DECEMBER 2022 l informatitsn in respect disawegaled Selected a sample of conrinuing and nrii. I revenue and periods oiler which the contracts. and tested the operaring effeLliK'trii¢%% c)I' remaining performance obligations iiill I be satisfIed subsequeni ro the balance intemal control. relating to identification of the I di8riTr]c t 5hLei dale. dtterminaiion ol trdiisaciion priL¥. Il'e L'ai"J"icd i)Iit Lonibiiialioi) of procediire> iiii-uli-ing n[illIn, Refer to note 3.1.5 of the financTal ,' and observation. reperformaiice and insperiinii nr %ratemenls on the revenue evidence in respeci of operation of these coiiirol. dctermination. Tested ihe relevant information ierlinolo svstcms, access and change management controls relaring to contracts and rclaied iiifr)rmaTSnll Lisrd I in recording and disclosing revenue in acrordance i-ith rhe neu. reveniie acrounting standarcl. Iprfnriii4? Jlc-P , Coocluglon Our proeedurcs did not identify, .2ny maleri.I1 exceptions. Other Informatlon I'11* iiiviiil)trrs are reg1)f)ii%ible for the other informatinn and repori Dr membcr8. Clur opinion on the financial statements does not cover the other infonnation and ll'e (lij I iiit exiii"t'%% di)v forTn ol assurance conclusion Ihcrcon. In eniiiiei'iinn Nith nur aiidit of rhc financial statcmenrs. our responsibilitt. is ro rcad Iliv ibtlivr iiifnrmaiii)n and iii di)ing so. considcr hcthLr thc nihc'r Inlorrnatinn Is rnaterially incnnsistcnt ii'ith ihc financial 8l<ements or our knO,ledge obtained in the audit or oihern'i5e appears to be materially misstated. If based or) Ihe H'ork have performcd on rhc other information thai li'e obiaincd prior to ihc date of this auditor s repnrt, 'e cnnclude iherc is maieridl misstaienieni of ihiq other inlnrmation. and we are required In reEM)rt that fact. Il'e have nothing to repori in this regard. Responsibilitles of management and those Charged with Governance for the fAnancial statements The Directors of Qrganization are responsible for the preparati()n presentation of rhese fin<incial sl<1temenis that gike a true and fair view of in accordance 'ith International Financial Reporting Standards and the reqLiiremeiits of the companies ACT. 2002, and for suc.h internal controls as menibers determine are necessary, to enable the preparation of financial statements that are free frnm ini1teri.Il mis%tarcricnt. ii-hcrhe.- due 10 fraud or crror. III pi-¢PclI'iiig tl)e fiiianc-ial statement the directors arp re8pon8iFile fnr Selecting and appli'ing appropriate accouniing policies and making accoLinting eslimates
REFOREST AFRICA FINANClaL STATEMENT8 FOR THE YEAR ENDED 318T DECEMBER 2022 that are reasonable in the Circumstances and assessing the Organization's abilitl, to continue as going concern,disclosing.as applicablc. thc mattLrs related to going concern and using the going concern basis of accounting unless the directors either inrend ro liquidate the orRanatIOn or to cease opcrafions or hai'c no rea"StIC altcrr.ar:i"e buT TD do so. Auditor's Respottslbilitle8 for the Audlt of the Flttancial StstemeDts Our objectives are'to obtain reasonable assurance about whether the Organization's financial statements as a whole are free from material lit'iher due tc) fraud or e.rrnr, dnd t() issue an 8ud3tnr's repi)rl thai includes our opinion. Reasonable assurance is a high level of assuraiice. but is not a guarantee that an audii Lx)nducted in accordance with ISAS will alwaN'S detect a material mlsstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aregate, they could rea8onably be expected to intliience the ecoiiomic risinii8 nf users taken on the bdsis of these fjnancial statements. A8 part nf an audit in accordan with'"TSAs. ll'e exercise professinnal .jiid%mt'nt and maintain professional skepticism Ilirouglioui the audil. Ive also.. Identify and a8sess the ri%Cq of material misstatement of The C)rx<)ni7ati()n financial statcmcnts. uyhether due to fraud or crr()r. design and pc'rf()I'lil audit procedures responsii'e to those risks, and obtain audit ei'idence that is sufficient and appropriare to proi'ide a basis for our opinion. The risk Df not detecting a material misslalement resulting from fraud 1% higher than for orie resulting from errDr. as fraud mav involve colliision, forger, intentional omissions. misrepresentations, or the override of inteL'nal contrDI. Obtain an understanding of interiial control rclL'vant to thL' audit in nrdcr to deg',gn Aiidit prncediires that are dppropriate in thL' circum8tdn('c's. biit ni)t ror the purpose of e.xpressiIig ali i)l)iiiii)n oli Il)e effei-tiweiiess lif Ilip i-gcj ni7Ation's inlL'rnal control. Evaluate the appropriateness of accounting policies used and the reasonablcness of accountkng estimates and related disclosures made by thc ireclorb. ConLludt' on the appropriateness of the members, use of the going ci)ncern basis of accounting and. based on the audit ei-idence obtained. w'hether a material uncertainrv exists related to events or conditions that mav cast Signtficant doubt on the Organization's abiliti. to continue as a g()ing ('i)ncern. Ir 'e conclude that a material uncertaints- exists, we are required to draw 1121
REFOREST AFRICA FINANCIAL STATEMENTS FOR THE YL4R ENDED 31JT DECEMBER 2022 attention in our auditor s report to the related disclosures in the financial statements or, if such disc.losures are inadequate, to modifv our npinii)n. Our conclusions are based on the audii ei'idvnce obtained up to the date. of our auditor's repon. However. future events or coiiditiot)s ma>. OrganizaTion to cease to continiic as a going concern. caiise th :VAliiate the overall presentation. srrucrure and content of the financial stdt¢lllLlltb. includiiix the disL losures. aiid i4-h¢tllL l- tlIL fiiiclllCl¥il 4t'irt' Iiic'iits represent the underlving transaciions and eN"ents in a manner that achieves fail. preseni<ltion. Obtain sufficient appropriate aLidit evidence regarding the finaneial irifo"mation of the entities or busintrss actii'ities ro express an opinii)n i)n rinancial statement. We are responsilile for the direction, supervision and performance of the Organization audil. We remain responsible lor our aLidit opinion. re communicate with members reg¥dinb. llong oiher malters. Ihe ylèiiii)ed 5L'OPe and timing of the audit and Éigliificant audiT findiiigs. iiic-ludinR any ¥ignifieant deficiencies in internal control that we idcnrilj. duriiig uui- audii. Report on Other Legal Requiréments 'rhis report, including the opinion. has been prepared for, and onlv for, the (Jrganizalion b mcmbcrs as a bodN in accordance '1th rhe NGO Act.2002 and for no other piirposes. .4(PA-PP-1441 Ail*fvrt Fi%ACJ4L 1%.E5 4•dO0¥ Date: I310412023 1131
REFORESY AFIUCA FINANCIAL STATEMENTS POR THE YEAR ENDED 31vr DECEMBER 2022 STATEMENT OF FINANCIAL POSITION AS AT 3 1ST DECEMBER 2022 2022 Tshs 2021 NOTES Tshs ASSETS Non.cvrrent Assets Property, Plant and Equipmenl 65.934.728 73.435.915 Total Non.cuffeTrfr Assets 65.934.728 73,435,915 Cuffenl AssEts Cash and Cosh Equivolents 226.781.842 112.179.385 Total Ctjrrenl Assets 226.781.842 112.179.385 TOTAL ASSETS 292,716.570 185,015,300 FINANCED BY.. Accvmuloled Residue/lDelictlT 65.934.728 73.435.914 Detcrre¢ Revenue Total Equlty and Uabllltles 226.781.842 112.179,385 292,716,570 185.615.300 Deo Shirima Name Slgnature Date Country Secretary 1.71412n2.3 1141
REFOREST AFRICA FINANCIAL STATEMENT8 FOR THE YEAR ENDED 318T DECEMBER 2022 Notes 18 to ?8 form an integral Part vf thebe fiiianl-ial slatvnipnls STATEMENT OF FINANCIAL ACTIVITY AND COMPRF.HENStVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2022 20?2 Tshs 2021 Tshs Receipts from Cjrants 229,415,i13 178,470,312 Operating Overheads Operatlng ReBlduellDeflelt) 1229,415,5131 1178,470,3121 NolL'¥ 18 10 28 form ali inlegral parl of IlivNv fi IlA I Irial slaiemf nt8 1151
REFOREST AFRICA FINKYCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST DECEMBER, Q02Q Accumulated Fund TOTAL Yshs. Tsh5. Bolance J5 34 l January. 2072. Adjustment made tor additioial assets Depreciation 73,435.9 14 73.435,914 17,501,187) 17,501.1871 SurplusllDeftcitI 8alance as at 31 De¢embef. 2022. 65.934.728 65,934,728 Notes 18 tv 28 furni integral pai-l of iliebe fiiiaiicial slalemeiits 1161
REFOREST AFIUCA FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022 STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31ST DECEMBER 2022 2022 Tshs 2021 Tshs Cash PIowi* from Operating A¢tTrvitle8 Cash reecii'cd from Grants Cash Payment•: 336,516,783 . Ib2,b42.1) Payments to Suppliers and"tmployees 1221.9 14,3261 1168,14,i,11 N1 Cii%hfliiw' fr()m ()pran .4('lii'ii ies Cash Flow from Investlng Activitles 114,602.457 94,497,6 fi..13(1.5 Net Cashflow frorn Investlng Actlvltle8 Ca¥h Flow from financiug.Activiti¢s C.?pital fuiid 6,339,8 .3.(18.%.4 Net Cashflow from Flnanclng Actlvltles 3.985,4 Net Change In Cash and Cash Equivalents Cash aod Cash Equivalents at the Beginnlng of the Year 114.602,457 104,822,8 112,179.,385 7,.1.56.,5 Caskn and Cash Equlval•nts At the End of the Year 226,781,842 112.179,3 1171
REFOREST AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 318T DECEMBER 2022 Nores 18 to 28 form an Integr uf ilirse fiiiaiiLiat btdt¢iii¢iitts NOTES TO THE FifiANCL4L STATEMENTS GENERAL INFORMATION The Organization is registered in Tan7Ania under NGO'.q Act No 24 of 2002 and is doiniciled in Tanzania. BASIS OF PREPARATION 2. 1 Statement of compllance The Financial 8t8tpments have been prepared in accnrdance '1th International Financial Reporting Standards IIFRSI. Where an Inlern¢ltional Financial Reporting Stanaard does not address a particular issue. the appropriate International Financial Rcpnrting Standard / International A('coiiniing Siandard IIASI has been applied. Thr preparattnn of Financial stateme.nts In c'nnformity with gener21 accepted accounting praetices requires the use of estimates and assumptinns that affects thi. reportc'd amount8 of (issets and li<ibilitiL's at the date. thi. Financ'ial Statements and the reported amounts of rei'eniie and p.xi)piibv% dui'iiig the repoiting period. Although these estimates are based on managemcnt's best knuwledge nf current events and actions, actual resiilts ultimately m<ll- differ from those estimates. Ba8ls of measurement The r?ci'uunLiiig priiii'iples reeogniztd as appropriale for the measiirement and reporting r)f the Stxtpment of financial performance. statement of financial posiLion and td¥h tluws oil iFie ail rua] bdSl¥ usiIig Ilisiui-ii'dl c'L)s1 (Il"¢ l(trll()wed in the preparation of the Financial Statements. Functlonal and Presentatlon eurreney Thest Financial Statements are prt'pdred in Tanzanian Shillings. Use of Estimates and Judgments (18)
REFOREST AFRICA FINANCIAL vfATEMEflT8 FOR THE YEAR ENDED 31sr DECEhfBER 2022 The preparation of Financial Statements requires manaoemeiit to make judgmvnts. estimates and assumptions that affcci the appliiaiion of asbcts, lidbililivs. iIILuiiir dl)cl expenses. tlcEual results mav differ from these esliLnal¥s. Tlie tslLIILalvb aiid iiiidci-INing 8ssiJmptions are rciieii'ed on a going conccrn basis. Ri'i'isions to 8('(-Ollllting estimèiies are recognized in the pcrind in &4'liich ilic" -qTimJte L revised and in any future periodi dtf¢Lied. Ti i r iri 1144r. iiiform8Alion about significant arca.% of eslimation iinccrtainLN and L-ritii'al jiiclgnieiits in alip1ing accoiinring policics that havc thc most significant effect on the amounts recognized in the Financial Statem¢iits are: al T¢111()[l bl Provisions cl c.nnl ii)gent Liahilities dl Property, Plani and Equipment el FinFncial Aqsets l Liabilities 2.5 Adoptlon4bf nww Standard8 and InterpretatloDI 2.5. 1 standard and interpretatlopts effectlve in the current year In the current N"car. the company has adopt¢d the folli?WLI)g sl<)Jidai-d% lI]d inlvrprvratioii% tliilt are effective for ihe current financial vear and that dre relevant io itg operations: Siiii'tr M¢ll I'l1 2020, Ihe IASB has i84ued Ilie following". Amendment to IFRS 16. 'l£ases Icll'ch 202 1} Amendments 10 Ip RS 9. tAS 39. IFRS I. IFRS 4 and IFRS 16 - Interesl rale benLhmark IIBORI reform COVID-19 Rent related Ly)nccs¥io11s (Mav 2020 and Amendments to IFRS 17 and IFRS 4 '1nsur8nce contracts. Narrow scope amendments to IFRS 3. Business combtnations , IAS 16, Property, plant ind equipment.. and IAS 37 'Proiisions. contingent liabilities and contingent assets Ai)nual Iiiii)i i bvririeiils 2018-2020 Amendments to l.4S l. T*esent2tion of financial statements.. IFRS Practice statement 2 and IAS 11. 'AccoiAnLing prJilClC.s. ch.In£es in clrcountinq estimatcs and errors. 1191
REFOREST AFRICA FINANCIAL STATEMENTS POR THE YEAR ENDED 3 DECEMBER 2022 There are no other IFRSS or IFRIC interpretations that are not ver effec'tive that ll'ould be expected to have a material impact on rhe organization. 2.6 Going Concern Tlie Organization's maiiagemeiii Ilas made an assessmeni al the abilitk. nl ihe biisiness to ctsniinue as going concem and is ol opinion Ihai ihe orxaiiuaiinn is well placed to continue in business for th,. forcseeable future as a result the financ'i statements are prepared on a going conccm basis. 3 SIGNIFICANT ACCOUNTifiG POLICIES Forelgn Currency Translation al Foreign currency translation The transacrion in foreign currencies is translated at the foreiRn exehLgng rale ruling al Ihe dale of the Iran8aclion. Monetar! assel% and liabililit% dcnoininated in foretgn currcncies at the financial position date Bre 4ranslated ro 'ranZ£I(1n Shillingb at the foreign exc'hunge rate ruling at th&t dare. bl FlnancAal Statement• of forelgo operatlon$ The a8sets and liabiliiies of forei2n opei'cili()ns includin2 q()ndwill and fair "allie adjiisimenrt arising on acquisilinn are Iran%la.' pd in Taii££llll.211 Shilling8 ai fnreign exchai)gc rate8 niling Ilt ihe finanei,il pn*iiioii dillL. The inrnme and e.%pen.%e8 of foreign operalions are Iranslated lo TanzgLnian Shillings at average rares. Translation differpnccs on non monprary finiqfl('i.?I a%.sei.% %uch a8 equ itie.s classified as available frjr sale arc included in rhe fciir value rcscn'c iii cquiti". 3.1. I Presentatlon of Financlal Statements 'I'liese l. Inancjal staiemenls are presented in accordance wilh the Eniernaiional Accnunting %tandards IAS as Inllnii's: 3.1.1.2 .StAt&nipnt nl" financial Position as at the end of the penod Statemeni ol Comprehensiire Inrf)me fi)r I liv I pvJ'i(iil .8tatement ol Lhanges in bquiti. for the period ,3. 1. 1.4 Cash Flvw. Siaieineiii r()r ilie peri()d ,1. 1 .1 .5 Accniinring Policie8 and Notes to the Financial Statements. 3. 1.2 Pjnanclal Instrumeuts ai Financial instruments include Bank Accounts, Certificate of Depnsits. Acc-ouiils Receivablcs and Ai L-QU51iS Pai'Ablr.s. Ail financial instrumcnts are recngn i7pd in the financial pisition at their fair value. (201
REFOREST AFRICA FINANCIAL STATEMENT8 FOR THE YEAR ENDED 31 DECEMBER 2022 bl Non derii? atiipe financial instrumenTS COTnprise of Ini'estmvnts in Equity aiid Dvbi s1-lL[lI1, Ir(Iclr anil ni htr rp(-f ival)It%, iiirlijiljiip %piTri( e rniii-e%.%inii receii'ables. cash and Cash cquii'alenis-. loan and borro1.]ngs. Ira(le aiid r>ilitri" i)AN'AI)ltr%. Nni) dr.riVdtik'p finaTrc"IAI in.stiiJmi"nts .'4rv ri'rc>gnitA.d initJLIIIv. at fair i'alue plus for insiruments ai fair i'aLue throubh sLaiement ijr riiia i)i"Idl yei-forii)aiice anK. dir¢ct atlribuiable IraiisactiDn costs. cl FiJi£lllCidL_,Is¥vL Fnr the purpose ol subsequent mcasurcment. linancial asscis othci- thaIi th(Trse debignated and elTeclive as hedgsng instrnments are classified into tlie folluwixig i-aivgi)rivs uyoyi iiiilial rerogiiilivjj. Loans and receii"ables'. Financial assets at fairy valiie through siatement of flnancial perforniancc.. yeld io maturitv ini'estments . and .4I'ailablc for sale financiaj assets. dl Financlal Liabilities Thp finaiieial liabililjes inrknde borrong$. trade and oiher pavables, and derii'ative financial.. insrrtiments. Financial liabilirie are mvasured siibscqucntlN' at amortiscd cosi using thc cffcctivc inici-est nicthod, L.xcLpt fnr linaiiri81 liabilitie8 hclrl fnr tradinq or dcsiqnatcd 2t fair i'alue Ilrough IAleiiieiil Dr riiiAiirial perfonnance. that arc carricd 8ubsequenilN al l.air v8liiv willi g8ins nr InA%ts recngiii7Rd in statemcnt of fiiianc i.Il pcrfnrman(-c. el ()ff%vrriiig Fii)ancidl In8trnment8 Financial .4ssets and LiabiliTip% dre off svl cin(I the nvl Aynriiint I'pp()rlvil in the statement of financial posiiion ll'hen there is a legalli- enfnTC£'nic'iil rib'lit to orrset thtr rec'()gni?.pd dniounty and TheTr' is an intentiun rn settle on u nL.t basis, or realize ihe assets and settle the liabiliiy siinultaneously. 3. 1.3 Property, Plant and Equlpment 11 Re¢ognAtlon and measurement Itein5 of Propen!. Plant and Equipiiient are measured at historii'al rii8t less accuniulated deprcciation and accumulafed irnpairment loss. Cost in¢liides expenditure that is directlv altributable to the acqiii%irion r)f the a8SVt. The cost of sclf-consiiucted asseis uicludes ihe L'VSt uf lildli't'ials aiicl Iliivi't labour. ani. other costs directlv atlributable to bringing the asgets ro a working conditinn lor their intended usc, and the cnsts nf dismaniliiig and removing are allocated. Co%t also mav include transfer8 frnm eqiiirv nf <2ny gain or loss on qiialifs ing cagh flow hedges of foreign currency pui-chases nl. Propert., Plant and Equipment. All (Triller rvpair% r1d InAinlpnani"e alp rhargtrd tn the statement nf C.nniprphf nsiNe iii('vJiJe (liiriiig Ilie finaJJ(-ial period in which theN' arp incurred. Reclassificatlon to Investment Property 1211
REFOREST AFRICA
FITIANCIAL STATEMENTS FOR THE YEAR ENDED 31gf DECEMBER 2022
Pr()pertN' that is being constructed for future uses as InKtbtmenT Prui)errv
1% decnunied Inr as prnpenN. plani and cquipnieni uniil consiructioii or
dekelopmenl 18 complete. 8t u'hLI-h rime it 18 re-measured to Ir i'alue
and rcclassilied as investTnent propert!. .InN gn or losb .1117 on re-
merlqurfment L5 rerognized in staTrmeni ot" I'rofit or LnV.:-
nd C)ther
Ciiiipieliriisive inconit
When the use of properti" changes fTom owner occupied to inve%iiiiriil
prnperry. the propem, is measured to fair valuc and recl8SSlticd as
iftvcsiment propertN'.
i)
Subsequent Costs
The c(Jsr nl. replacing part of an item of propem,. plalli and equipmeiit is
recognizvd in the caw'ing amount of the item if it is probuble ih
REFoREr AFRICA FINANCIAL STATEl•IENT8 FOR THE YEAR ENDED 318T DECEMBER 2022 3.1.5 Revenue recognition -1. l.(1 Tlie Organization depend much on grants received from various donors as a source of revenue. Ciranr.s are rerognized orj cash basis and :heretore ihere are arcnial% (or grants not reccivcd. Grant balances at year ends arc carried (orward to thc Llcxt financial year. 3. 1.7 Aecounts Reeeivable8 and I18Th# Accouiiis receii'ablcs are carried at origina] amoriiscd amount Icss an esTI iiiate made far doiibtftjl debt8 ba8ed on a review. of all outstanding amounts at rhe ye'ir-end. Provision for bad and doubtful debts is made in respect of sperifir debts. ,hICh hcive been oiiistanding for rec.overy for one se31 and Are Considered doubiful of recover). 3. 1.8 Cash and Ca¥h Equlvalent# For the purpose of rhe cash flow statemcnt. cash and cash equivalciits comprise of cash in hand, deposits held w'ith banks and investments in money morket in9rrumpnis. 3. 1.9 Fln#nclal A88et• and Liabilities The eiitify I'lassifies ir% financial asyets in the following caregori¢s.' at fair vaiue Ihrough statemeiit ol Profit aiid kns and comprehensive Incomc. loans and rereival)Sps. and available fnr%ale. The classification depends on th¢ purpose for ii'hiL"h the fin-In2i.Il ?ssers H'ere acquired. Direct()rs deierinine¥ the rlassificaTion of its financial a%sers at initial rec'o¥nition and re-evaluare¥ thi.4 dv%ignariiiii at every repnrting date. 3.1.10 Aceounts Payables and Other• Accounts Pavables are recoised iniLialli' ai fair i'alue and subsequently m<'cisurpd clt amortised t'cibt ubing the effeciii'e interest meiliod. 3.1. 10 Income t Income cxpense is the aggregate of ihe charge io profit or loss in respect of curreni incomc and deferred income t&x. Current income is tho, Jmount of incoiiie tax paicqble nn tile i&xable profit lor the perii)d determined in accordciiice i¥ith the Tanzanian Ini'onie T&Y Act. 2004. Ivlcrred income tax is provided in full, using the lidbilirj meThod. for all temporary. differences arising betiveen the tax bases of iaSsels and liabilities and their c8m.ing values for iinaiicial Irporting PUTposes. Hom'ei'er. if the defcrred inr()Ine arisvs from the initial rec(Jgnitiun of an asset or liabilitv in a transaction other than a business combination that at the time of tlie Iransaciion affects neithcr accounting nor taxable profit nor loss. ir is not accounted for. Deferred income t&x is dctern]ined usiiig tax raies and laws thai have been enac'ted 01 substantii'ely enacted at the statement of financ'ial position d.Ife and are expected ro appli. when the related deferred income tax asset is reaiised or the deferred income t&¥ liabilitv is settled. Deferred inconie 1231
REFOREST AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 I&T DECEMBER 2022 tax a8sers 'Irv recognised onlv to the extent that it is probable that future iaxable prolits wdl be available againsi i%,hich iemporarN- diffprences can be utilised. 3.1.11 Prov18ions Pro%'i5ions arc rceogni8ed M-hen the Business has a present legal or constructive obligation as a resuli ol past rt'enis, il IS I)robable ihal an oui noth. of resourceg embod)ping economie benefits bc required to sertlc rhe obligation. and a reliable csiimaic of thc amoiiiit of the obligation can bc madc. 3.1.12 Intattglble assets Intangible asset8 Mcqiiired geparateli, are (measured on initial recognition at cost. Following initial recogniiion. intangible assets are carried at Lost less ani- aceiiniiil jiied aniortization ' Ind Liccuinulaied imP<iirmeni 1088es. Iniemall! generated iiildnk?ible assets. excluding capitalizcd developmeiit costs. are not capitaiized and expeiidiluj'e is refle('Ivd in prrfit ¢ind loss in the period in which the expenditure is incurred. The u%eful liires ol. iniangible assets arp assessed as either finiie or Indefinite. Inrangsl)le absets wwith finite u%efiil life economiL life 5nd assessecl lor impairinent w'heneirer ilier is <111 iiidicaiion that tlil iiitangibltr assct ma). be iinpaired. The amortizatioii pi'i'iod and the amoriizarion inethod fib-, kin inr,'IngibSe asset 'Ith a fsnite useful life rei'i¥M'ed ut least at the end of each reportiryg period. Changes in the expected useful life or the expe("ted pattem of consumprion of future economic benefits embodied in the asseis arc considered to modifN' the amorti7.afion period or method. as appropriate. and ure treat¥d change8 in aLLouniing esum<ltes. TIIV riiniirii4dii(Trn expt'nse ()n intangihl(" wilh fiiiire likv.8 is 1i.1-114niJ.i'c1 iii the incorne statemenl as the expense category that is consistent with ihe funriion of the intan<Fible abset4. 1)ut is te8red for impairment annualli.. either individuall5t or at ihe CEish-geiierating unit level. The 8sse8smeni of indefiiiiie life rontinues to be 5llPI)()rtable, if not, the change in useful life from indcfinitc to finitL is madc on a prospective basis. As at 31¥1 December 2022, the Organization did not have any indefinite intangible assets. 3. 1.13 Employee beneflts Short-tem emplovment benefits such as salaries. social securitv contributions, and leave fare assistance are reeognized in profit or loss M,hen thev fall due. Po8t-retirement benefits The business does iiot have arrangement for post-relirement benefils. Other long tenn benefits Other long-tcnn benefjis are recognized when an obligaiion arises. The Organization had no othei long-tertn benefit CC)Ti .mitments during tFLe J'eLIr. 1241
REFOREsf AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 3 1ST DECEMBER 2022 NOTE 4 BOTANICAL GARDEN MOTOR VEHICLE OFFICE COMPUTERS FURNITURe AND IOTAL EQUIPMENT FlnlNGS Tshs Tshs Ishs Tshs Ishs Tgh$ COST al l ?nuory. 2022. 43.88?. IJ) 55.348 5Tr) 1.76i,r 4.339 8CQ 2.816,127 110.158.427 Add11ions Dis 0501 As al 31 D•c•mb•r. 2022. 43.889.0fy) 55.348.500 1.765.0 4.339.8(X) 2.816.127 110.158,427 DEPRECIATION As ol l Jonuory, 2072. 32.810 672 582.588 2.377.425 951828 36.722,512 Additions Disposa. Choige tor Ihe yeor 3.634.457 147.802 1.485,891 233.037 7 $01 187 As nl 31 D?r•rnf)•f 2(22. . 38.445.129 730.389 3.803.314 1,184,86S 44,223.699 NET BOOK VALUE Ai ul 31 O•c•mb•r. 2022. 3.889.fAKJ 16.903.371 1.034.611 2.470.484 1.631,262 4S.934.728 As at 31 December 2021. 43.889.LYM) 22,537,828 1.182.412 3.962.375 1,864.299 73.435,915 2022 2021 NOTE5 5 RECEIPTS Grants 229,415,513 163,945,035 Other Income IPrivate tlonationl 200.000 4,200.(J 1251
REFOREST AFRICA FINANCIAL 8TATEMENT8 FOR THE YEAR ENDED 318r DECEMBER 2022 229.61S.513 168,145,035 NOTE 6 OPERATING OVERHEAOS Accounting and Audit Fees Salartes and Benefrts I,(x)o,( 1.000,000 Salaries 8nd WJ8es 81,301,034 36.383,857 WCF PAYE 598,477 333,857 NSSF 14,487, 155 6,970,841 96.486,666 43,688,555 Repair and Maintenance Office renovation and construction 1.0S0,WO Vehicle Repalr and Malntenance 10,634,152 1.520,000 11,684,152 I,520,Cl Other Operatin8 Expenses Rent Expenses 2,700,000 2,700,nOO Telèphonè ènd Internet 980.OC4) 240,000 Seeds and pesticides 9,345,000 5,505,500 83nk Charges 1.154,320 550,912 Elèctrictty and Water Charges 240,OCM) 300,000 Environmental ConseThètion Costs 1,200.000 Fuel Expenses 4,350,OCM) 550,000 Workshops experbses-Agrysis prosect Insurance Expenses 22,921.000 1,036,350 Office Equipment 5,421,10 6,339,800 Field cost MaEombera Forest Oay activities 38,604,394 2.268,750 {261
REFOREST AFRICA FINANCIAL 8TATEMENTS FOR THE YEAR ENDED 31vr DECEMBER 2022 individual risks "1th1n the Organization and to report the same to the nianagcment Th.ho report 10 the Board. The Organization's risk management policies are established to identthT and analv2L.d thL' risks facL'd bi. the Organizarion. to set appropriale risk limits and cnntrnls, and io moniir)r risks and adhere.nce to limils. Risk. manage.meiil p()licies and si'siems are reitieii'ed regularly to refieLt changes in iiiai.ket conditions, pr()ductb and services offered. Credlt rlsk The Organizatinn rake% on exposure to credit risk. which is th¢ ri3h that eoiinterparty will cause a financial loss tq. the financial institution b}- failing to discharge an obligation. cre.dit risk is the most important risk for the Organization's biisines$:' management therefore carefulli. manages its eNpogiire to credit risk. Lredit expnsui'es <lrise principallN' in shnri-ierm cash surplii8es onl}I with banks vf high Credit standin Accordingly, the Organization has no sigtsificant concentration of credit risk ihat not been adr.quateli' proi'ided for. Forelgn exchange rlsk The Qrganization takes on exposure to the effects of fluctuations in the prei'ailing foreign rurrenc!. e.xchange rates on its financial position and cash LIquAdity r18k Liquiditi. risk is the risk that the Organi7ation is unable to meel its pavment i)bligciiiolls ¢454lJ(-IAted -It17 its financi<il liabilities when theTr' fall du(, and ri) replate funds when the3. are M'ithdrawn. Management monitors the maturity 4ap of thc Or%anization s assets againsi maturing liabilities. The Organization's financial liabilities and net settled derivative linancia] liabilities into relevant maturiti. groiipings based on the remaining period at the statement of financial posifi()r) to the contractual maturity date. 9 EVENTS AFTER THE REpoRfiNG DATE There ii'ere IILI sidiificL-Il pi'pnfs cifter ihp statement or rinancial posiiion date. 1281
REFOREST AFRICA FINANCIAL STATEl¥fENTS FOR THE YEAR ENDED 31#r DECEMBER 2022 Meetings -Franklinia/udzungwa forumlLand conflitt resolution 30,419,538 Tran5POrt and Travelling expenses 8.945.890 I,844,QQg Depreciat¢on Village support -MagomberJ/kanyenja Botanical garden-lnstallation works 7.501, 187 5.300.000 11.582.600 10,325,279 27.892,000 Consultancy General Office Expenses Staff Training 1,51Q,715 11,880,017 7 858 428 Withholding TaxlTaxes 15.609,328 5,130.444 Medicil expenses 300,000 120,244,695 132,261,7S7 Total operatSnB expense5 Z29,415,513 178,470,312 RELATED PARTY TRANSACTIOEIS Ke!. management personnel are described as those persons hal'ing auihnril!" and responsibilit}. fur planning. directing and controlling the actiiryties of the Organization dirvi'tli. r)r iiidire(-rlv. incliiding ani- director of the (Irganization. -l.hpre were nn rpl2rpd part5. transactions during the period under reviN4". FINAJ'CIAL RISK MANAGEMENT The Organization's aelivitlcs fYr)nse it to A varietv of financial risks including crediL risk. liquidit). risk. foreign currency risk and operational risks. The Organi7ation's OK"erall risk management programme fncuses on the unpredictabililN' of financial markets and seeks ro minimize potent2al adverse elfcL'Is UIL Ilic OrgdAIIZ(iÉiuii 's fin<uiciaJ perlori)iance. Management is arcount<ible ro the members for ensuring effective risk management activities and adherence to the risk appetite limits set b) the members. Primary responsibility for Knanagement of these risks lies 11th the individual departments ur busincss iinits in ,hICh thcN ari%e. It is the re.8ponsibiliti.- of thc respective department to ensure appropriate assessment and management of the (271