Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697708196717.pdf (Zimbabwe)
The below events were indicative of economic fundamentals that would require a reassessment of the functional currency as required by International Accounting Standard (IAS) 21- “The Effects of Changes in Foreign Exchange Rates”: The Hospital transacted using a combination of United States Dollars (USD), bond notes and bond coins.
Acute shortage of USD cash and other foreign currencies in the country, resulted in an increase in the use of different modes of payment for goods and services, such as settlement 148 through the Real Time Gross Settlement (RTGS) system and mobile money platforms.

During the year there was a significant divergence in market perception of the relative values between the bond note, bond coin, mobile money platforms, RTGS FCA in comparison to the USD.
Although RTGS was not legally recognised as currency up until February 22, 2019, the substance of the economic phenomenon, from an accounting perspective, suggested that it was currency.

In October 2018, banks were instructed by the Reserve Group of Zimbabwe (“RBZ”) to separate and create distinct bank accounts for depositors, namely, RTGS FCA and Nostro FCA accounts.

This resulted in a separation of transactions on the local RTGS payment platform from those relating to foreign currency (e.g.
United States Dollar, British Pound, and South African Rand).

Prior to this date, RTGS FCA and Nostro FCA transactions and balances were co-mingled.

As a result of this separation, there was an increased proliferation of multi-tier pricing practices by suppliers of goods and services, indicating a significant difference in purchasing power between the RTGS FCA and Nostro FCA balances, against a legislative framework mandating parity.
Because the hospital transacted using a combination of United States Dollars (USD), bond notes and coins, Real Time Gross Settlement (RTGS) system and mobile money platforms during the period from October 1, 2018 to February 22, 2019, the decision to change the functional currency only on February 22, 2019 in accordance with SI 33/19 resulted in misstatement to the financial performance and cash flows of the hospital, as transactions denominated in USD were not appropriately translated during that period.
Although the directors acknowledge, that there was a functional currency change and that the rates of exchange rate between the USD and local currency was not 1:1, they have maintained their functional currency as ZWL and have presented the financial statements in ZWL using an exchange rate of 1:1, in compliance with SI 33/19 for periods January and February 2019.
This constitutes a departure from the requirements of IAS 21, and therefore the financial statements have not been prepared in conformity with IFRSs.

iii.

Revaluation of Property, Plant and Equipment.

The provisions of International Accounting Standards (IAS) 16- “Property, Plant and Equipment” confirms that revaluation of assets should be carried out regularly so that the carrying amount of an asset does not differ materially from its fair value at the date of financial statements.
Contrary to the above, the hospital fails to comply with the above requirement of the International Accounting Standards (IAS)16- “Property, Plant and Equipment”.

There was no evidence that the hospital performed a revaluation assessment exercise either by engaging an independent valuer expert or management professional judgement to present assets at their values at the prevailing environment.

As a result, I could not substantiate the extent of understatement in the financial statements.
Below are other material issues noted during the audit; 1.

GOVERNANCE ISSUES 1.1 Alignment of accounting processes to new developments Finding The Hospital’s accounting processes were not aligned to the new developments of the accounting framework.

As a result, there were key accounting processes that were not done in line with the new developments.
For instance, the Hospital did not perform a revaluation exercise to establish the fair values property, plant and equipment in line with its accounting policy.
In addition, the allowance for non-recovery of debts was not calculated in line with the provisions of IFRS 9- “Financial Instruments.” These two key accounting requirements were therefore not adhered to the requirements of 149 International Accounting Standards 16 Property, Plant and Equipment- revaluation of assets, IFRS 9 Financial Instruments –allowance for credit losses.

Risk / Implication Misstatement of financial statements.
Recommendation The Hospital should consider putting in place a new accounting developments tracking system that facilitates adjustment of records in line with the new standards.

Management response Impairment and valuation of Assets requires hiring a Real Estate Valuer.

This comes with a huge cost which the Hospital cannot afford as it is operating on a limited budget.

The Hospital management shall come up with an internal system on how assets can be impaired.
The valuation of provision for bad debts was noted and resolved according to IFRS9 (Financial Instruments) in valuing provision of bad debts.

1.2 Doctors accommodation Finding The Hospital had no adequate accommodation for Doctors.

The Hospital had three (3) blocks which are reserved for Junior Resident Medical Officers (JRMO).

There is now an increase in the number of doctors due to the enrolments from Universities.

Previously it was just one (1) University which used to train doctors.
Risk / Implication Service delivery may be compromised as limited accommodation results in prolonged transit times for doctors which might increase the number of fatalities, complications.

Recommendation The Hospital should continue engaging the Ministry of Health for adequate funding for the construction of Doctors’ accommodation.

Management response Noted.


The Hospital will partner with Public works to develop three blocks of flats within in the hospital this will alleviate the challenges of Doctors’ land the vacant accommodation.

1.3 Brain drain Finding The Hospital experienced high level staff turnover of specialized senior health officials.

The attrition rate was; nurses 148, doctors 11, Pharmacists 3, Medical Laboratory scientist 5, Radiographers 2.
Inspection of records reveals that staff were leaving due to uncompetitive remuneration and working conditions.

150 Risk / Implication Service delivery may be compromised.

Recommendation The Hospital should continue engaging the Government to improve the conditions of service.

Management response The Government has since unfrozen all critical posts and has allocated funds towards the staff welfare of nurses and doctors as a way of curtailing the brain drain.
Government should re-introduce retention allowance that has been in existence from 2008 to 31 December 2020 and also honour up payment of performance awards based on submitted individual ratings on yearly basis.

2.

PROCUREMENT OF GOODS AND SERVICES 2.1 Procurement procedures Finding The Hospital’s procurement management unit was not advising finance on the tax status of suppliers in order to facilitate the deduction of withholding tax.
As a result, payments to suppliers without valid tax clearance certificates were being made in full as withholding tax was not being deducted.

This was in contravention of Section 80 of the Income Tax Act [Chapter 23:06].

Risk / Implication Financial loss due to penalties for non-compliance.

Recommendation The Hospital’s PMU should consider updating its procedures to incorporate tax status when submitting documents for payments.

Management response Observation noted.


The Procurement Management Unit has been mandated with ensuring that all the prospective suppliers furnish them with valid Tax clearance certificates before they engage them for any business.

The Tax clearance certificates should also be attached to procurement documents submitted for payments.

3.
3.

SERVICE DELIVERY ISSUES 3.1 Medical Equipment Finding Inspection of the equipment status revealed that the Hospital had a shortage of Special Care Baby Unit (SCBU) incubators, autoclave machines among other medical equipment.

The hospital was operating with 55% of its medical equipment requirements.

The gap was attributed to unavailability of foreign currency to procure the required equipment.

151 Risk / Implication Service delivery may be compromised.
Recommendation The Hospital should continue the engagement for adequate foreign currency funding.

Management response The Hospital is being limited by funding but have managed to procure medical equipment such as monitors, 3 ventilators ICU Hospital beds.

The hospital has engaged some cooperating partners to assist with equipping the hospital.
152 PUBLIC ENTITIES UNDER THE CATEGORY OF UNIVERSITIES AND TERTIARY INSTITUTIONS 153 GWANDA STATE UNIVERSITY 2019 Background Information Gwanda State University was established in May 2016 through an Act of Parliament, the Gwanda State University Act [Chapter 25:30].

The University existed before this date as a College of the National University of Science and Technology [NUST].
I have audited the financial statements of Gwanda State University for the year ended December 31, 2019 and I issued a disclaimer of opinion.

Disclaimer of Opinion I do not express an opinion on the financial statements of Gwanda State University.

Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of my report, I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
Basis for Disclaimer of Opinion i. Non-compliance with International Accounting Standard 21 – “The Effects of Changes in Foreign Exchange Rates” on the comparative financial information.

The University did not comply with IAS 21 in the prior financial year as it elected to comply with Statutory Instrument 33 of 2019 only from 22 February 2019.
Had the University applied the requirements of IAS 21 from October 2018, many of the elements of the prior year inflation adjusted financial statements, which are presented as comparatives and the opening retained loss for the current year would have materially been impacted.

The departure from the IAS 21 requirements was therefore considered to be material and pervasive.

The financial effects on the financial statements of this departure have not been determined.
My opinion on the current inflation adjusted financial statements is modified because of the possible effects of this matter on the comparability with the current year’s inflation adjusted financial statements with that of the prior year.

ii.
ii.

Valuation of biological assets Included in non-current assets on the statement of financial position is an amount of ZW$79 942, relating to biological assets, for which management could not provide me with the valuation reports or market values from an independent valuer as at December 31, 2019.

Therefore, I was unable to obtain sufficient appropriate audit evidence over this amount.

i.
i.

Existence and accuracy of payables Included in current liabilities on the statement of financial position is a balance of ZW$602 171 being NUST funding.

There is no formal agreement between the University and NUST to verify the existence, nature and terms of this arrangement.

I therefore could not obtain sufficient and appropriate evidence over the existence and accuracy of the NUST funding balance.

ii.
ii.

Completeness and accuracy of revenue Included in the statement of profit or loss and other comprehensive income is fees income amounting to ZW$ 400 434 and other income amounting to ZW$257 087.

I could not 154 obtain sufficient and appropriate evidence over the completeness and accuracy of fees income as management was not able to avail enrolment forms and detailed student registers.
I could not verify accuracy of other income as management could not provide a portion of the supporting documents required.

As a result, I was unable to determine if there are any adjustments necessary.

iii.

Occurrence and accuracy of expenditure is ZW$1 883 911 relating Included in total expenditure in the statement of profit or loss and other comprehensive to academic and administration expenses.

income, Management could not provide me with adequate supporting invoices pertaining to this expenditure.
As a result, I was unable to obtain sufficient, appropriate audit evidence to determine whether any adjustment to this amount was necessary.

Below are other material issues noted during the audit; 1.

GOVERNANCE ISSUES 1.1 Supporting documentation Finding The University’s expenditure and revenue reported in the financial statements was not adequately supported.
Supplier’s invoices, supplier statements, payment vouchers, student invoices and NUST funding agreement were not availed to support the expenditure of ZWL1.8 million, Liabilities of ZWL602 171 and income of ZWL657 521.

Risk / Implication Material misstatement in the financial statements.

Fraud and error due to misappropriation of resources.

Recommendation The University should ensure that all entries entered into the accounting system are supported by documentation.
Management response Noted, high staff turnover affected institutional memory and continuity.

Currently all payment vouchers have adequate supporting documents and are filed accordingly.

155 HARARE INSTITUTE OF TECHNOLOGY 2020 Background Information Harare Institute of Technology (HIT) was established in terms of the Harare Institute of Technology Act [Chapter 25:26] in December 2005.
The objectives of Harare Institute of Technology are the advancement of knowledge and technology through the preservation, dissemination and enhancement of academic and practical knowledge as well as skills relevant to the development of the people of Zimbabwe.

I have audited the financial statements of Harare Institute of Technology for the year ended December 31, 2020 and I issued an Adverse Opinion.
Adverse Opinion In my opinion, because of the significance of the matters discussed in the Basis for Adverse Opinion section of my report, the financial statements do not present fairly, the statement of financial position of the Harare Institute of Technology as at December 31, 2020, and its financial performance and its cash flows for the year then ended in accordance with international Financial Reporting Standards (IFRSs).
Basis for Adverse Opinion i. Valuation of property and equipment Harare Institute of Technology maintained its policy of valuing property, plant and equipment using the revaluation model and then restating balances into the current purchasing power at the end of the reporting period.

This is in line with IAS 16 –Property, Plant and Equipment and IAS 29 - Financial Reporting in Hyperinflationary Economies.

The last director’s valuation was done as at December 31, 2019.
I was unable to independently verify the valuation methodology and valuation assumptions used by the directors in 2019.

In the absence of a professional valuation exercise, I am unable to independently verify if the carrying amounts of property, plant and equipment are fairly stated.

ii.
ii.

Comparative financial information Impact of incorrect date of application of International Accounting Standard (IAS 21) – “The Effects of Changes in Foreign Exchange Rates” and IAS 29 “Financial Reporting in Hyperinflationary Economies” on comparative financial information.
Government of Zimbabwe promulgated Statutory instrument (“SI”) 33 on 22 February 2019, giving legal effect to the reintroduction of the Zimbabwe dollar “ZWL” as legal tender and prescribed that for accounting and other purposes, certain assets and liabilities on the effective date would be deemed to be Zimbabwe dollars at a rate which was at par with the United States Dollar (“USD”).

The requirements of SI 33 are contrary to the provisions of IAS 21.
In October 2018, banks were instructed by the Reserve Bank of Zimbabwe to separate and create distinct banks accounts for deposits names, RTGS (Real Time Gross Settlement) FCA and Nostro FCA accounts.

This resulted in separation of transactions on the local RTGS payment platform from those relating to foreign payments.
This separation resulted in an increased proliferation of multi-tier pricing practices by suppliers of goods and services, indicating a significant difference in purchasing power between the RTGS FCA and Nostro FCA balances, against a legal framework mandating parity.

These events were indicative of economic fundamentals that would require a reassessment of the functional currency as required by IAS 21.
156 The decision by directors of the Harare Institute of Technology to change the functional currency only on 22 February 2019 in accordance with SI 33/19 resulted in misstatement of the financial performance and cash flows of the Harare Institute of Technology, as transactions denominated in USD were not properly translated during that period.
Had the Harare Institute of Technology applied the requirements of IAS 21, many of the elements of the inflation adjusted financial statements of the comparative period would have been materially impacted.

The financial effects on the inflation adjusted financial statements of this departure were not quantified.

An adverse opinion was issued on the inflation adjusted financial statements for the year ended December 31, 2019.
Furthermore, my opinion on the current period’s inflation adjusted financial results is modified because of the possible effects of the matter on the comparability of the current year’s financial results with that of the prior year.

Below are other material issues noted during the audit; 1.

GOVERNANCE ISSUES 1.1.

Tax on allowances Finding The Institute did not comply with the Income Tax Act on payment of Covid-19 allowances.
They processed allowances totalling ZWL11 148 270 outside the payroll system hence PAYE was not calculated.

Risk / Implication Financial loss due to penalties for understating employees’ taxable income and tax obligations.

Recommendation The Institute should have a tax compliance review that ensure compliance with tax laws and regulations.

Management response Noted.

Management will voluntarily disclose to ZIMRA and remit the PAYE arising from those allowances.

1.2.
1.2.

Internal audit vacant posts Finding The Institute had not been filling in Internal Audit vacant posts, as a result, Internal audit reports were not prepared consistently throughout the year due to shortages of staff in the department.
The reports were prepared only up to mid-June 2020, thereby limiting the Institute from getting adequate internal control assessment in line with the provisions of Public Finance Management Act [Chapter 22:19] and the Public Entities Corporate Governance Act [Chapter 10:31].

Risk / Implication Exposure of the Institute to governance risk and reputational risk.

Fraud and illegal acts may go undetected.


157 Recommendation The Institute should consider strengthening the Internal Audit Department through recruitment of more staff.

The Institute should put plans and strategies to comply with the Act.

Management response Staffing of the Internal Audit Unit has been affected by the recruitment freeze by government as several requests from the University to recruit various staff members have not been approved.

Resignations have also compounded the issue.


However, Management takes note of the observation and will capacitate the Unit.

2.

PROGRESS TOWARDS ADDRESSING PRIOR YEAR AUDIT FINDINGS AND IMPLEMENTATION OF RECOMMENDATIONS The Institute made progress in addressing audit findings and recommendations raised in my previous audit report.

I raised two (2) audit findings and one (1) was addressed and one (1) was partially addressed as indicated below; 2.1.
Related party transactions The recommendation was implemented.

The Memorandum of Understanding (MOU) has been amended to gross revenue of 75% to Matsimba and 25% to HIT rather than profit sharing which was raising complications in the determination of relevant expenses of the parties.

2.2.

ZUPCO revenue The recommendation has been partially implemented.
The meeting with ZUPCO is still pending, however reconciliations can be done at the end of year with the ZUPCO audited accounts against what was remitted.
158 MARONDERA UNIVERSITY OF AGRICULTURAL SCIENCES AND TECHNOLOGY 2019 Background Information Marondera University of Agricultural Sciences and Technology was established in terms of the Marondera University of Agricultural Sciences and Technology Act [Chapter 25:29] with a vision to be the leading global University of excellence in the provision of technology driven sustainable green agricultural solutions.
I have audited the financial statements of Marondera University of Agricultural Sciences and Technology for the year ended December 31, 2019 and I issued an Adverse opinion.
Adverse Opinion In my opinion, because of the significance of the matter described in the Basis for Adverse Opinion paragraph, the financial statements do not present fairly, the financial position of Marondera University of Agricultural Sciences and Technology as at December 31, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).
Basis for Adverse opinion Non-compliance with International Accounting Standard (IAS) 21- “Effects of Changes in Foreign Exchange Rates” On October 1, 2018, the Reserve Bank of Zimbabwe issued a monetary policy statement that directed a separation of Foreign Currency Bank Accounts ("FCAs") into two categories, Nostro FCA and RTGS FCA.

The Nostro FCAs were to hold individual foreign currencies permissible in Zimbabwe's multicurrency economy at the time.
Mobile money, bond notes and coins would be treated in the same way as RTGS FCA.

During the year ended December 31, 2019, the University transacted using a combination of Nostro FCA and RTGS FCA, mobile money and bond notes and coins.
In terms of International Accounting Standard (IAS) 21- “Effects of Changes in Foreign Exchange Rates” these payment methods would have been considered to be separate currencies to be translated for financial reporting purposes to the functional and presentation currency of the University at an appropriate exchange rate.
However, in order to comply with the monetary policy statement, the financial statements reflect these transactions and balances at parity during the period October 1, 2018 to February 22, 2019, before an interbank rate between the RTGS dollar and the US Dollar was established by the Reserve Bank of Zimbabwe.

Had the financial statements been prepared in accordance with the requirements of IAS 21, many elements in the financial statements would have been materially affected.
It was not practicable to quantify the financial effects of this non-compliance with IAS 21 on the University's financial statements.

Below are other material issues noted during the audit; 1.

GOVERNANCE ISSUES 1.1.

Pastel accounting software utilisation Finding The University invested in Pastel accounting software during the financial year ended December 31, 2018.

However, the software had not been brought into use.

159 Risk / Implication Value for money may not be realised.
Financial loss due to payment for services that are not subsequently utilised.

Recommendation Management should make efforts to put to use the Pastel accounting system.

Management response Observation Noted.

The Pastel accounting software will be utilised.

1.2.

Financial position of the University Finding The financial statements of the University showed that, the current liabilities exceeded current assets by an amount of ZWL$5,243,091.
This net current liability position may affect the University’s ability to continue as a going concern and it may fail to meet its immediate obligations as and when they fall due.

Risk / Implication The University may fail to meet its obligations when they fall due.

Recommendation Management should come up with strategies to generate additional income.

Management response Observation Noted.

The current net liability position was mainly due to farm input loans obtained from Seedco, GMB and CBZ.
The loans will be repaid using farm produce.

The University will comply by spending on available funds.

1.3.

Supporting documentation Finding The University’s internal controls over recording of transactions and record keeping were weak.

There were some expenditures and revenue items that had no adequate supporting documents.

For instance, fuel purchase, transport costs, council allowances, external examiner expenses, purchase of metal signboard and direction signs.
I also noted that some revenue transactions such as sale of farm produce, poultry sales and tuck-shop sales also had no supporting documentation.

Risk / Implication Errors and irregularities may go undetected.

Recommendation The University should consider strengthening its internal control systems over revenue and expenditure.

160 Management response Observation Noted.


However, as we continue to search for the missing vouchers identified, we believe that some of such documents which could not be retrieved during the audit time might have been misplaced when we were relocating the main Bursary office from Dozmery to CSC.

In future the University will ensure that all supporting documents are filed intact and are availed in full at any given time of need.

2.
2.

PROGRESS TOWARDS ADDRESSING PRIOR YEAR AUDIT FINDINGS AND IMPLEMENTATION OF RECOMMENDATIONS The University had not made progress in addressing audit findings and recommendations raised in my 2020 report.

I raised one (1) audit finding, and it was not addressed as indicated below; 2.1 Scholarships The recommendation has not been implemented.

The scholarships had not been approved by the Ministry of Higher and Tertiary Education.
161 NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY (NUST) 2020 Background information National University of Science and Technology is a higher education institution governed by the National University of Science and Technology Act [Chapter 25:13].

I have audited the financial statements of National University of Sciences and Technology for the year ended December 31, 2020 and I issued a Disclaimer of Opinion with a material uncertainty on going concern.
Disclaimer of Opinion Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of my report, I was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.

Basis for Disclaimer of Opinion i.


Contingent liabilities arising from claims on construction contracts The University was still in the process of engaging with the contractors to submit final claims for construction work done up to December 2013 on the University’s Library and Service Centre.

At the time of concluding the audit, management were yet to receive responses from some of the contractors.
In addition, while some contractors responded during the year and subsequent to the reporting date, there are indications that the University may be held liable for breaching the terms and conditions of the construction agreements which subsisted, and as such it is likely that some of the contractors may claim compensation for loss of profit, wear and tear of their machines, the cost of movement from site as well as the value of unsettled certificates of construction work up to the point of decommissioning.
The University was not able to quantify this value at the time of concluding the audit but the effects are likely to be material and significant on the financial statements.

ii.

Valuation and recognition of construction materials As part of the decommissioning process on construction projects, the University received materials from one of the contractors during the year.

However, these materials were not valued and recognised in the financial statements in accordance with IFRS.
As a result, the value of inventory items disclosed in the financial statements may be materially understated.

I was not able to quantify the value of this understatement on the financial statements through alternative audit procedures.

iii.
iii.

Valuation and existence of inventories for the Innovation and Business Development The year-end inventory count for the Innovation and Business Development (“IBD”) was attended by the University’s Internal Auditor and I placed reliance on same as part of my audit work in accordance with ISA 610: Using the Work of Internal Auditors.

However, necessary arrangements were not made for the Internal Auditor to attend the inventory count for items which were at the IBD as well as the Library locations.
Accordingly, I was not able to verify the existence of the inventories amounting to $5 150 028 through alternative audit procedures.

I was also not able to verify the unit values of inventories under the IBD amounting to $5 383 007 as at the reporting date.

iv.
iv.

Revenue and accounts receivables for the Innovation Business Development (IBD) I was not able to verify the completeness, occurrence and accuracy of the revenue amounting to 162 $208 842 877 (historical: $133 271 172) as disclosed in the current year financial statements due to significant control weaknesses.

There were significant control weaknesses in the management of accounts receivable during the year under audit.
I was unable to confirm the balance due from customers as at year end through circularisations.

Accordingly, I could not verify the valuation and existence of the accounts receivables balance amounting to $41 459 554 as at the reporting date.

In addition, I could not satisfy myself on the valuation and existence of these accounts receivables through alternative audit procedures.
v. Revenue recognition for short courses and consultancy work In terms of IFRS 15 revenue for short courses and consultancy work should be recognised on a five step model as and when the services are provided in order to match the transaction price to the performance obligations.

However, this was not the case as the revenue was being recognised on a cash basis despite the fact that the University adopted IFRS as its financial reporting framework several years ago.
Accordingly, I could not satisfy myself on the occurrence, completeness and accuracy of short courses revenue and consultancy fee income amounting to $4 560 592 owing to the use of a manual accounting systems.

vi.

Accrual of student fee income The University commenced its first semester for the 2020/2021 (“First Semester”) academic year in November 2020 and students eventually concluded their exams for the said semester around June 2021.
Further, due to Covid-19 related compassionate grounds the registration portal remained open and as such students continued to register for this semester well beyond June 2021.

In addition, in February 2021 the University had an upward review of the student fees for the First Semester and as such all students were requested to make top up payments.
However, the University only accrued fees in respect of students who subsequently registered between January 1, 2021 and March 2021 while registrations beyond March 2021 were never taken into consideration.
Furthermore, in arriving at the amounts that were accrued the University did not consider top up fees as part of the transaction price as required under IFR 15- “Revenue from contracts with customers.” Moreover, the fees accrued were not apportioned on a time basis from November 2020 to June 2021 but only took into account the full fee applicable on or before December 31, 2020.
This manner in which the student fee revenue was accrued and recognised in the current year financial statements is not in accordance with IFRS 15 which requires that revenue be recognised on a semester basis (time basis) taking into account the transaction price and the related performance obligations.
Accordingly, I was unable to verify the completeness, accuracy and occurrence of accrued fees amounting to $17 681 200 as reported under revenue and accounts receivables for the year ended December 31, 2020. vii.

Valuation of properties The University revalued its properties at the reporting date using United States Dollar (“US$”) denominated inputs and converted the US$ values to the Zimbabwe Dollars (“$”) at the closing auction rate.
I believe that applying an auction conversion exchange rate to a US$ valuation to calculate property values in Zimbabwe Dollars may not be an accurate reflection of market dynamics, as risks associated with currency trading do not always reflect the risks associated with property trading.

Consequently, property values amounting to $4 180 302 761 may be materially misstated, and I was unable to determine what adjustments may be necessary to correctly account for the property values as at year end.
163 viii.

Valuation of books During the year, the University received 1 196 books from various donors.

Management performed their own internal valuation exercise and determined that the value of these donated books was $53 550 251.

I was not provided with the detailed computation schedule for me to verify the assumptions, basis, methods and inputs which were applied in arriving at this valuation.
In addition to the above, at least three years ago the University adopted a policy of valuing its books and collections on an annual basis at each reporting date in order to ascertain both the existence and valuation of these books.

However, management only valued books that were donated in the current year and the rest of the books and collections were not revalued.
This constitute a material change in accounting policy which should have resulted in the restatement of the opening balances for the earliest prior period presented as required by IAS 8.

However, the financial statements were not restated and the effect of the error is that property, plant and equipment as well as equity may be overstated.

I was unable to quantify the impact of the misstatement through alternative audit procedures.
Furthermore, in the absence of a valuation exercise in the current year I was unable to satisfy myself on the valuation and existence of the books.

Accordingly, the carrying value of books amounting to $173 206 608 may be materiality misstated.

ix.

Expected credit loss allowance (“ECL”) The University applied the simplified approach and used a provision matrix in determining the expected credit loss (“ECL”) allowances at year end in line with IFRS 9: Financial Instruments (IFRS 9).
However, the University did not use relevant, reasonable and supportable forward looking information in establishing loss rates in accordance with IFRS 9.

In addition, the University did not appropriately age its accounts receivables and as a result, I could not rely on the different loss rates used for accounts receivables in different cycles or buckets of default based on historical payments profiles.
Management did not make use of probability weighted expected credit losses on the different scenarios and it also did not appropriately segment the accounts receivables according to the differing credit risk profiles.

Furthermore, the University did not define defaults consistently with the definition used for internal credit risk management purposes, and it also did not appropriately define curing rules for the staging of the accounts receivables.
Accordingly, the value of expected credit losses amounting to $18 469 076 may be materially misstated.

However, it was impracticable for me to quantify the financial effects of this non- compliance with IFRS 9 on the financial statements.

Report on going concern Material uncertainty related to going concern I draw your attention to the fact that the University’s current liabilities exceeded its current assets by $80 430 440 (2019: $230 189 690) as at December 31, 2020.
These factors indicate that a material uncertainty exists that may cast doubt on the University’s ability to continue operating as a going concern.

Below are other material issues noted during the audit; 164 1.

GOVERNANCE ISSUES 1.1.

Innovation Business Development (IDB) unit Finding There was no formal structure for managing the IBD unit.
The unit was manned by lecturers and students on a rotational basis leading to a leadership gap as no particular individual had full responsibility of the operational and financial affairs of IBD.

In addition, contracts of employment were renewable on a monthly basis and did not provide comprehensive details about employees’ specific job descriptions.
As a result, there were no adequate hand over and take over procedures, and credit limits for customers, hence long outstanding debtors’ balances amounting to ZW$ 59 809 031.

The filing of information system at the University was also not water tight.

This resulted in the University failing to provide supporting documents for some of its inventory items.
Risk / Implication Lack of Project continuity and accountability which may result in errors and/or irregularities not being detected and corrected timeously.

Service delivery may be compromised.

Recommendation Management should set up a formal structure to manage the IBD project.

Comprehensive employee contracts should be drafted.

Management response Recommendation noted and will be implemented.
In particular management note that no proper Finance structure was set up to manage IBD operations, so a lot of things went undone.

A structure of permanent personnel under the supervision of the Bursar is being implemented to ensure proper controls are in place; and Comprehensive and permanent contracts will be drafted for employees of the IBD.

Filing of documents of the IBD business during year 2020 was not done properly.
No proper administration systems were set up at IBD as the operation was on an urgent basis during lockdown.

Transaction processing itself was done manually with no entries being made into Navision.

This made it difficult to perform proper costing for stocks that were based on source documents.

However, automation of processing is currently underway and orderly filing of documents is now in place.

Management believe that this will go a long way in addressing matters noted above.

1.2.
1.2.

Alignment accounting processes to new developments Finding The University’s accounting processes were not aligned to the new developments of the accounting framework.

As a result, there were key accounting processes that were not done in line with the new developments.

For instance, the allowance for credit losses was not calculated in line with the provisions of IFRS 9 (Financial Instruments).
Also, the University did not revalue 165 and recognise library books and construction material (work in progress) in the financial statements in accordance with provisions of IAS 16 (Property, Plant and Equipment).

In addition, management was unable to provide the basis and assumptions used for valuation of new book donations amounting to ZWL$55 000 000 in line with IAS 20 (Government grants/ donations).
Upon inquiry, in respect of compliance with IFRS 9 (Financial Instruments), management highlighted that the accounting system limitations were also contributing to noncompliance.

I also noted that revenue for services rendered were not accounted for in accordance with IFRS 15 (Revenue from contracts with customers) as management did not fully accrue revenue arising from students that registered for the first semester 2020/2021 that ran from November 2020 to August 2021.
Risk / Implication Misstatement of financial statements.

Recommendation The University should consider putting in place a tracking system that facilitates adjustment of records in line with new accounting developments.

Management should consider upgrading the Navision accounting module so as to process the required IFRS 9 information.

Management response i.

Accounts receivables-IFRS 9 The relevant IFRS requires debtor’s information to be presented and formatted in a specific way.
However, our Navision accounting package has serious limitations in that regard.

A consultant has been engaged to work with our ICTS team in implementing all the relevant modules that will enable us to generate all the required information in the suitable format.

A team member has been assigned to follow up on trade receivables.

The dedicated IBD debtors control account is being created to facilitate follow up of these debtors ii.
Revaluation of Property, Plant and Equipment- IAS 16 Going forward a scripted policy on revaluation will be done stating the basis and methods of revaluation to be adopted and this will be shared with the auditors in a timeous manner.

iii.

Construction materials Construction stopped during the year 2006 and the contractor was still responsible for the site and materials since there had been no termination of the contract.
Further, it has been difficult to value the materials and attempts to get quotation on most of the materials failed.

Some of the materials are just components or parts of either duct systems and difficult to value individually.

The Contractor was being reengaged to complete the works and the usable material will be used.

For the future, where materials are on site, valuation will be done before handover.

Arrangements are being made to create secure spaces for material storage on site.
Please note that the prefabricated structures materials were moved from the Ceremonial Hall to Campus Services for security reasons at the instruction of National Security Services.

166 Efforts will be made to put them in one location, but space challenges are a reality.

iv.

Revenue- IFRS 15 When accounts were being done manually debtors’ information was always incomplete.

As computerization of these records has intensified, reliable debtors’ information is now available.
This has enhanced our debt collection function.

Debt management has been improved, and all new credit customers are now approved in writing.

The challenges that were generally faced country-wide made it difficult to impose the usual procedures that are normally followed with regard to student registrations and that affected the semester dates.
The Bursar’s department will work with Admissions and the ICTS department to ensure that we collectively agree on registration deadlines and put a penalty for late registration to encourage students to stick to set dates.

In addition, revenue will be recognized in accordance with IFRS 15 going forward.

2.

REVENUE COLLECTION, MANAGEMENT AND DEBT RECOVERY 2.1.
Management of revenue Finding There were no proper internal controls in place for management of revenue from the Innovation and Business Development (“IBD”) Unit.

As a result, no reconciliations between the general ledger and the detailed revenue reports were performed during the year.

Delivery notes were not being signed when goods were being collected by customers.
Cash sales were not clearly recorded and separated from credit sales which resulted in difficulty in reconciling total cash and credit sales to the general ledger.

Furthermore, there was an unresolved audit difference amounting to ZWL$33 million as at year end.

All receipts were recognised as revenue in the general ledger including collections from credit customers.

Customer control accounts were not being maintained in the general ledger.

Risk / Implication Fraud and errors may go undetected.
Recommendation Management should consider putting in place an effective revenue management system.

Management response At inception of the sanitizer and PPE project in April 2020, priority was on meeting the urgent orders mainly from Natpharm.

All transactions were done manually ranging from purchase orders, Goods Received Notes, Dispatch Notes to customers, Invoices and customer’s statements.
The intention was to then capture this information into the Navision system at a later date when the situation had normalized.

Unfortunately, lockdown extended throughout the year 2020, leaving very little time to finalize capturing into Navision.

This impacted negatively on the finalization of the 2020 financial statements and hence the audit.

Progress has however been realized in this area and all transactions of IBD are now through the Navision accounting system.
Further, sequentially numbered invoices and delivery notes are now in place.

However, these are still being generated and processed manually and an automated system is in the pipeline.

IBD accounts are being set up in 167 Navision and capturing of information is ongoing.

3.

PROCUREMENT OF GOODS AND SERVICES 3.1.

Procurement of goods Finding The University procured an Electric Boiler for ZWL31 188 without following adequate procurement procedures.
The University did not solicit 3 competitive quotes from reputable suppliers as prescribed by section 34 of the Public Procurement and Disposal of Public Assets Act [Chapter 22:23].

There was also no evidence to support that management took into consideration all the requirements of the Act in relation to direct sourcing.

Risk / Implication Procurement fraud may go undetected.
Recommendation Management should follow procurement regulations as prescribed by the Public Procurement and Disposal of Public Asset Act [Chapter 22:23].

Management response At the time, the Procurement Management Unit could only source one quotation despite requesting for three.

A memo requesting payment to be done immediately to help arrest inflationary implications was approved by the Bursar.
Going forward, procurement regulations will be implemented and any exceptions will be done after relevant approval.

4.

MANAGEMENT OF ASSETS 4.1.

Security of cash at bank Finding Internal controls over cash at bank were weak in that former employees (bursar, registrar and deputy bursar finance and administration), a possible complete panel remained as signatories for an average of nine (9) months to a year.
As a result, the University had payments which had gone through the bank but had not been recorded as they had insufficient bank details.

The controls were therefore not adequate to ensure reasonable protection of assets.

This was in contravention with provisions of Section 42 (1) (a) of the Public Finance Management Act [Chapter 22:19].

Risk / Implication Financial loss due to fraud.

Recommendation Management should consider reviewing of the University`s internal controls over cash resources.
Management response The delay in this process was occasioned by the late appointment of the Bursar and 168 Deputy Bursar-Finance and Administration.

In future this exercise will be done instantly.

5.

PROGRESS TOWARDS ADDRESSING PRIOR YEAR AUDIT FINDINGS AND IMPLEMENTATION OF RECOMMENDATIONS The University made progress in addressing audit findings and recommendations raised in my 2020 report.
I raised four (4) audit findings and one (1) had been addressed, one (1) had been partially addressed and two (2) were not addressed as indicated below; 5.1.

Contact leave The recommendation was partially implemented.

The University only paid out contract leave in exceptional cases and approved by council for example former Bursar and former Registrar.
While the 2016 resolution was a once off arrangement, this has set a precedence as the former Bursar and Registrar who left the University in 2020 were also paid contact as an employee benefit.

Management to closely consider same together with Council.

5.2.

Demolition of prefabricated structures The recommendation has not been implemented.

The Director of PPWE was not appointed hence the project has not yet resumed.

5.3.
5.3.

Non-compliance with International Financial Reporting Standard (IFRS) 9 “Financial Instruments” Recommendation has not been implemented.

The relevant IFRS requires debtor’s information to be presented and formatted in a specific way and the University’s Navision accounting package has serious limitations in that regard.
The University had engaged consultant to work with University’s ICTS team in implementing all the relevant modules that will enables generation of all the required information in the suitable format.

5.4.

Tax obligations Recommendation has been implemented.

The University’s PAYE returns for the special and outsourced runs were regularised and there was progress in settling the outstanding balance.
169 ANNEXURE “A”: STATE OWNED ENTERPRISES AND PARASTATALS AUDIT OPINIONS PER ENTITY Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report AUTHORITIES AND AGENCIES 1.
Agricultural and 2019 Rural Development Authority (ARDA) Adverse due to non -compliance with IAS 21, 2014 Qualified due to impairment of investments - - - - - - 2015 2016 2017 2018 - Qualified due to impairment of investments Qualified due to impairment of investments Qualified due to impairment of investments Adverse due to non -compliance with IAS 21, - 170 2.
National 2019 Biotechnology Authority 2020 Adverse due to non-compliance with IAS 21 Qualified Due to non - compliance with IAS 21 on 2018 Adverse due to 2017 Unqualified 2016 Unqualified non- compliance with IAS 21 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report opening balances 2020 AG report 2019 AG report 2018 AG report 2017 AG report 3.
Zimbabwe Energy 2021 Qualified 2020 Qualified 2019 Adverse due to 2016 Unqualified - - Regulatory Authority (ZERA) 4.

Zimbabwe National Road Administration (ZINARA) 2019 2020 5.
Zimbabwe National 2019 Statistics Agency Due to non - compliance with IAS 21 on opening balances Adverse due to non - compliance with IAS 21 on Qualified due to non - compliance with IAS 21 on Adverse due to non -compliance with IAS 21 Due to non - compliance with IAS 21 on opening balances non - compliance with IAS 21 2017 Unqualified 2018 Adverse due to non - compliance with IAS 21 - - 2018 Adverse 2017 Qualified due to 2016 Qualified due to non - compliance with IAS 21 on inappropriate revenue and receivables recognition due to inappropriat e revenue and receivables recognition - - 2018 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 Unqualified with an 2017 Unqualified 2016 Unqualified 2018 6.
Zimbabwe National Water Authority (ZINWA) 2021 Unqualified 2020 Unqualified 2019 171 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report Emphasis of matter Adverse due to non - compliance with IAS 21 2019 Adverse due to 2018 Adverse due to 2017 Unqualified non - compliance with IAS 21 non - compliance with IAS 21 2017 2018 Unqualified Adverse due to non - compliance with IAS 21 2016 Unqualified with an emphasis of matter paragraph - - - - 2017 Unqualified 2016 Unqualified 2018 Adverse due to non-compliance with IAS 21 7.
Zimbabwe Revenue 2021 Unqualified 2020 Authority (ZIMRA) 8.

Zimbabwe Tourism Authority (ZTA) 2020 Adverse due to non -compliance with IAS 21 2019 Adverse due to non -compliance with IAS 21 on opening balances & Non- compliance with IAS 36 Impairment of assets Adverse due to non -compliance with IAS 21 Boards 9.
Pig Industry Board 2020 Qualified due to non – compliance with IAS 21 on opening balances 2019 Adverse due to non-compliance with IAS 21 172 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report COMMISSIONS 10.

Insurance and Pensions Commission 2021 Qualified due to non- compliance with IAS 21 on opening balances 2020 Adverse due to non -compliance with IAS 21 11.
National Competitiveness Commission 2020 Qualified due to non-compliance with IAS 21 on opening balances 2018 2019 Adverse due to non -compliance with IAS 21 Adverse due to non -compliance with IAS 21 12.

Securities and Exchange Commission of Zimbabwe 13.

Sports and Recreation Commission 14.
Zimbabwe Anti- Corruption Commission 2021 Qualified due to non-compliance with IAS 21 2020 Qualified due to non-compliance with IAS 21 2020 2018 Adverse due to non -compliance with IAS 21 2019 Adverse due to non -compliance with IAS 21 Adverse due  to non - compliance with IAS 21  inadequate supporting documentation 2012 - 2017 - Disclaimer due to various limitation of scope (Incomplete records) 173 2019 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 2018 - - - Adverse due to non - compliance with IAS 21 - - - - 2019 Adverse due to 2018 Adverse due to 2017 Unqualified non - compliance with IAS 21 2018 Adverse due to non - compliance with IAS 21 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 - - - - with an emphasis of matter - Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report  non – 2020 AG report 2019 AG report 2018 AG report 2017 AG report 15.
Zimbabwe Electoral Commission (ZEC) 2019 2020 16.
Zimbabwe Media Commission 2019 2020 recognition of PPE Adverse due to non -compliance with IAS 21 Qualified due to non -compliance with IAS 21 on opening balances Adverse due to non -compliance with IAS 21 Qualified due to non-compliance with IAS 21 on opening balances - - 2016 Unqualified - - - - 2017 Unqualified 2018 Adverse due to non - compliance with IAS 21 - - 2018 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 174 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report COMPANIES AND CORPORATIONS 17.
Allied Timbers 2020 (Private) Limited Adverse due to  non - compliance with IAS 21  absence of 2019 Adverse due to non -compliance with IAS 21 2018 Adverse due to 2017 Qualified with 2016 Qualified non - compliance with IAS 21 an Emphasis of matter with an Emphasis of matter 18.

Chemplex Corporation Limited 19.


Deven Engineering (Private ) Limited 2021 audited results of foreign subsidiary Adverse due to non -compliance with IAS 21 and IAS 29 2021 Unqualified with a going concern material uncertainty 20.
Genesis Energy (Private) Limited 2020 Qualified due to non-compliance with IAS21 on opening balances 2020 2019 2020 2019 Adverse due to non -compliance with IAS 21 and IAS 29 Adverse due to non -compliance with IAS 21 Adverse due to non -compliance with IAS 21 on opening balances Adverse due to non -compliance with IAS 21 2018 & 2019 - Adverse due to non - compliance with IAS 21 - 2017 Unqualified - 2018 Adverse due to - - - non - compliance with IAS 21 with an emphasis of matter 2018 Adverse due to non – compliance with IAS 21 2017 Unqualified - - 21.
Hotspec Enterprises (Private) Limited 2020 Adverse due to non -compliance 2019 Adverse due to non -compliance 2016 Unqualified - - - - 175 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report with IAS 21on opening balances with IAS 21, 29 and IFRS 16 2018 2019 AG report 2017 Unqualified 2018 AG report 2017 AG report - - 2016 Adverse due to non - compliance with IAS 21 Unqualified - - Adverse due to non -compliance with IAS 21 Qualified due to non -compliance with IAS 21 Qualified due to non -compliance with IAS 21 22.
Mining Promotion 2019 Corporation (MPC) 2020 2021 2019 23.

Mosi- Oa Tunya Development Company Adverse due to non -compliance with IAS 21 2016 to 2017 Qualified due to completeness of expenditure 2012 to 2015 2018 Adverse due to non –compliance with IAS 21 176 2017 Unqualified 2018 Adverse due to non - compliance with IAS 21 Qualified due to completeness of expenditure - - - - Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 24.
National Handling Services 2021 AG report 2019 Adverse due to non -compliance with IAS 21 2020 AG report 2018 Adverse due to non –compliance with IAS 21 25.

National Oil Infrastructure Company of Zimbabwe 26.

National Pharmaceutical Company 27.

Petrotrade (Private) Limited 28.
Petrozim line (Private) Limited 2020 Qualified due to non -compliance with IAS 21 on opening balances 2021 Qualified due to non-compliance with IAS 21 on opening balancesq 2020 Qualified due to non-compliance with IAS 21 on opening balances 2020 Qualified due to non-compliance with IAS 21 on opening balances 2019 Adverse due to non –compliance with IAS 21 2019 & 2020 2019 Adverse due to non –compliance with IAS 21 Adverse due to non –compliance with IAS 21 on opening balances Adverse due to non –compliance with IAS 21 2019 Adverse due to non –compliance with IAS 21 177 Unqualified Unqualified 2019 AG report 2015 & 2016 & 2017 2018 Adverse due to non – compliance with IAS 21 Unqualified 2018 Adverse due to non – compliance with IAS 21 2018 Adverse due to non – compliance with IAS 21 2018 Adverse due to non – compliance with IAS 21 2018 AG report 2014 Unqualified with an Emphasis of matter 2017 AG report - - 2017 Unqualified 2016 Unqualified 2017 Unqualified 2016 Unqualified 2017 Unqualified 2016 Unqualified 2017 Unqualified - - Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 29.
Road Motor Services (RMS) 2021 AG report 2018 Adverse due to non-compliance with IAS 21, Material Uncertainty on going concern 2019 Adverse due to non-compliance with IAS 21& material Uncertainty on going concern 30.
Sabi Gold (Private) 2017 Limited Unqualified with material uncertainty on going concern 2018 2020 AG report - - 2019 AG report - - 2018 AG report 2014 Qualified with emphasis of matter Non - compliance with IAS 36 Qualified with emphasis of matter Non - compliance with IAS 36 Qualified due to long term loans with emphasis of matter 2015 2016 - - - - - - 2017 Qualified due to long term loans with emphasis of matter 178 2017 AG report - - 2015 2016 Unqualified with an emphasis of matter on going concern Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report 2019 2020 2021 2020 31.
Silo Foods Industries (Private) Limited 32.

Sunway City 2021 (Private) Limited Adverse due to non-compliance with IAS 21 Adverse due to non-compliance with IAS 21 Adverse due to non-compliance with IAS 21 Qualified due to non-compliance with IAS 21 Adverse due to non – compliance with IAS 21 Adverse due to non – compliance with IAS 21, IAS 29 and IFRS 13 33.
TelOne ( Private) Limited 2021 Unqualified with material uncertainty Qualified with emphasis of matter - - - - - - - - 2019 Adverse due to non – compliance with IAS 21 2018 Adverse due to non – compliance with IAS 21 2017 Unqualified 2019 Adverse with 2017 material uncertainty Unqualified with a material of uncertainty to - - 2020 Adverse due to non –compliance with IAS 21, IAS 29 and with an emphasis of matter 2020 Qualified due to non-compliance with IAS 21 on opening balances 179 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report relating to going concern 34.
Transmedia Corporation 2021 Adverse due to non -compliance with IAS 21, IAS 28 and 29 2019 & 2020 relating to going concern 2018 2018 Adverse due to non – compliance with IAS 21 2016 & going concern paragraph Adverse due to non – compliance with IAS 21 Unqualified 2017 Unqualified and with material uncertainty relating to going concern Adverse due to non –compliance with IAS 21 and IAS 28 Adverse due to non –compliance with IAS 21, 28 and 29 2015 Unqualified COUNCILS 35.
Agricultural 2019 Research Council 36.

Medical and Dental 2020 Practitioners Council Adverse due to non -compliance with IAS 21 Adverse due to non -compliance with IAS 21 2018 2019 Adverse due to non -compliance with IAS 21 Adverse due to non -compliance with IAS 21 37.
Medical 2019 Rehabilitation Practitioners Council of Zimbabwe (MRPCZ) 2020 Adverse due to non -compliance with IAS 21 Qualified due to non- compliance with IAS 21 on - - 2017 Unqualified - - 2016 Unqualified 2018 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21and 29 Unqualified Unqualified Unqualified Adverse due to non - 2015 2016 2017 2018 - - - - 180 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report opening balances 2020 AG report 2019 AG report 2018 AG report 2017 AG report compliance with IAS 21 2018 Adverse due to 2017 Unqualified 2016 Unqualified 38.
National AIDS Council of Zimbabwe 2020 Qualified due to non -compliance with IAS 21 2019 Adverse due to non -compliance with IAS 21 39.

National Arts Council of Zimbabwe 40.


Pharmacists Council of Zimbabwe 2020 Qualified due to non - compliance with IAS 21 on opening balances Adverse due to non -compliance with IAS 21 2020 non - compliance with IAS 21 - 2019 Adverse due to non -compliance with IAS 21 - 2019 Adverse due to non -compliance with IAS 21 2018 Adverse due to non - compliance with IAS 21 2017 Unqualified 2016 Unqualified 2018 Adverse due to non - compliance with IAS 21 2017 Unqualified 2016 Unqualified 41.
Research Council of 2021 Unqualified 2019 Zimbabwe & 2020 2019 42.
Zimbabwe Council for Higher Education (ZIMCHE) 2020 Qualified due to non-compliance with IAS 21 on opening balances Adverse due to non -compliance with IAS 21 Qualified due to non- compliance with IAS 21 on opening balances Adverse due to non -compliance with IAS 21 181 2018 Adverse due to - - 2016 Unqualified non - compliance with IAS 21 2018 Adverse due to - - non - compliance with IAS 21 & 2017 2016 & 2017 Unqualified Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 Qualified 43.
Zimbabwe National Family Planning Council 44.

Zimbabwe Youth 2018 Council 2019 opinion due to non-compliance with IAS 21 Adverse due to non -compliance with IAS 21 Adverse due to non -compliance with IAS 21 FINANCIAL INSTITUTIONS 45.

AFC(Former Agricultural Bank of Zimbabwe (Agribank) 2021 Qualified due to  Impact of suspense account 46.
Empower Bank 2021 Limited  Legacy debt with emphasis matter on capitalisation Adverse due to non -compliance with IAS 21 and 29, 2020 2020 AG report 2019 Adverse due to non -compliance with IAS 21 - - 2016 2019 AG report 2018 Adverse due to 2018 AG report 2017 Unqualified 2017 AG report 2016 Unqualified non - compliance with IAS 21 Unqualified 2012 2013 2014 2015 Unqualified Unqualified Unqualified Unqualified - - 2017 Unqualified 2020 Qualified due to 2019 Adverse due to 2018 Adverse due to 2017 Unqualified non - compliance with IAS 21 non - compliance with IAS 21 2019 Adverse due to 2018 Adverse due to - - non - compliance with IAS 21 non - compliance with IAS 21 non -compliance with IAS 21 and valuation of investment properties Adverse due to non -compliance with IAS 21 and 29, Valuation of assets and liabilities 182 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 47.
Infrastructure Development Bank of Zimbabwe 48.

People’s Own Savings Bank (POSB) FUNDS 49.
Lake Kariba Fisheries Research Institute 2021 AG report 2021 Qualified due to 2020 AG report 2020 Qualified due to non -compliance with IAS 21  Valuation of investment property  Valuation of deferred revenue 2019 AG report 2019 Qualified due to non- compliance with IAS 21 and IAS 29 2018 AG report 2018 Unqualified with Emphasis of Matter 2017 AG report 2017 Unqualified with Emphasis of Matter 2021 Unqualified 2020 Qualified due to 2019 Adverse due to 2018 Adverse due to 2017 Unqualified non -compliance with IAS 21 on opening balances non - compliance with IAS 21 non - compliance with IAS 21 - - 2018 2020 Qualified due to non-compliance with IAS 21 on opening balances 2019 Adverse due to non- compliance with IAS 21 Adverse due to non- compliance with IAS 21 - - - - 50.
Lotteries and Gaming Fund 2020 Adverse due to non -compliance with IAS 21 and 16 2019 Adverse due to non -compliance with IAS 21 2018 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 51.

Rhodes Matopos Estate Fund 2020 Qualified due to non -compliance with IAS 21 on - - 2019 Adverse due to - - - - non - compliance with IAS 21 183 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 52.

Rhodes Nyanga Estate Fund 53.
Rural Electrification Fund (Former REA) 2021 AG report opening balances 2020 Qualified due to non- compliance with IAS 21 on opening balances Adverse due to non -compliance with IAS 21 2020 2020 AG report 2019 AG report 2018 AG report 2017 AG report - - 2019 Adverse due to - - - - non - compliance with IAS 21 2019 Adverse due to non -compliance with IAS 21, 29 and IFRS 16 2017 Qualified 2016 Qualified 2014 Qualified 2018 Adverse due to non - compliance with IAS 21 2015 Qualified 54.
State Lotteries Fund 2019 Adverse due to non -compliance with IAS 21 2018 Adverse due to non-compliance with IAS 21 2017 Unqualified 55.

Zimbabwe Manpower Development Fund (ZIMDEF) HOSPITALS 56.
Chitungwiza Central 2019 Hospital 2020 Qualified - - - - - - - - opinion due to non-compliance with IAS 21 Adverse due to non-compliance with IAS 21 - - 2018 Adverse due to 2015 non- compliance with IAS 21 Qualified due to non - compliance with IAS 16 and unsupported expenditure 2014 Qualified due to non – compliance with IAS 16 184 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report 2016 2017 Adverse due to non – compliance with IAS 16 Valuation and existence of accounts receivables Adverse due to non – compliance with IAS 16 Valuation and existence of accounts receivables 57.
Ingutsheni Hospital 2018 2019 Adverse due to non-compliance with IAS 21 Adverse due to non-compliance with IAS 21 - - - - - - 2015 Qualified due to with an emphasis of matter on going concern 2016 185 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report 58.
Mpilo Central Hospital 2020 Adverse due to  non – compliance with IAS 21  completeness of donations  Completeness &valuation of trade payables  completeness & valuation of PPE  Non- compliance with IFRS 9, 29  Valuation& occurrence of inventory Qualified due to 2017 Unqualified with an emphasis of matter on going concern 2015 Qualified with an Emphasis of matter 2019 Adverse due to non -compliance with IAS 21 and IAS 16 2017 & 2018 Qualified 2016 Qualified Adverse due to non - compliance with IAS 21 186 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report 59.
Parirenyatwa Group 2019 of Hospitals 2020 60.
Sally Mugabe 2019 Central Hospital Adverse due to non – compliance with IAS 21 Qualified due to non-compliance with IAS 21 Adverse due to non – compliance with IAS 21,29 Misstatement of inventory - - 2018 Adverse due to non – compliance with IAS 21 2017 Unqualified 2016 Unqualified - - 2017 2018 Qualified due to  Completenes s of accounts payable and receivables  Adverse due to non – compliance with IAS 21 2016 Adverse due to 2015 Adverse Complet  eness accuracy and cut off of revenue and accounts receivables and payables due to valuation of PPE Completene ss, cut off, occurrence of accounts receivables Completene ss of accounts payables 61.
United Bulawayo Hospitals (UBH) 2019 Adverse due to non – compliance with IFRS 9,IAS 21, & 16 - - 2018 Adverse due 2017 Qualified due to 2016 Qualified to non – compliance with IAS 21 completeness of grants and donations due to completene ss of trade payables 187 Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report TERTIARY INSTITUTIONS 62.
Gwanda State University 2019 Disclaimer due 2018 Adverse due to non -compliance with IAS 21 2017 Qualified due to valuation of land and buildings - - - - to Non - compliance with IAS 21 Existence and accuracy of receivables Completeness and accuracy of revenue Occurrence and accuracy of expenditure Adverse due to non – compliance with IAS 21 Valuation of PPE Adverse due to non – compliance with IAS 21 63.

Harare Institute of Technology 2020 64.


Marondera University of Agricultural Sciences and Technology 65.
National University of Science and Technology 2019 Unqualified 2020 Disclaimer due to various issues 188 2019 Adverse due to non -compliance with IAS 21 2017 & 2018 Adverse due to non -compliance with IAS 21 2019 Disclaimer due to 2018 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 - - - - - - - - 2018 Disclaimer due to various 2016 2017 Unqualified Unqualified Public Entity FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued FY Opinion Issued 2021 AG report 2020 AG report 2019 AG report 2018 AG report 2017 AG report  Liability from construction  Valuation of construction material  Valuation and existence of invention  Completeness , accuracy and occurrence of revenue  Valuation of properties and books  Non- compliance with IFRS 9 66.
University of Zimbabwe 2020 Qualified due to non – compliance with IAS 21 2019 Adverse due to non -compliance with IAS 21 2018 Adverse due to 2017 Unqualified 2016 Unqualified non - compliance with IAS 21 with an Emphasis of matter 189 ANNEXURE “B”: AUDITS IN PROGRESS AND BEING FINALISED PUBLIC ENTITY 1.

AFC Leasing Company 2.

Agricultural Marketing Authority (AMA) 3.

Agricultural Marketing Authority Fund 4.

Agricultural and Rural Development Authority (ARDA) 5.

Air Zimbabwe 6.
Air Zimbabwe 6.

Allied Health Practitioners Council 7.

Allied Timbers (Private) Limited 8.

Bindura University of Science and Technology 9.

Broadcasting Authority of Zimbabwe (BAZ) 10.

Chinhoyi University of Technology 11.

CMED (Private) Limited 12.

CMED fuels 13.

Cold Storage Company (CSC) 14.

Competition and Tariff Commission 15.

Consumer Council of Zimbabwe 16.

Courier Connect (Private) Limited 17.

Deposit Protection Corporation 18.

Easy Go and Car Hire (Private) Limited 19.


Environmental Health Practioners Council 20.

Forestry Commission 21.

Genesis Energy (Private) Limited 22.

Grain Marketing Board 23.

Great Zimbabwe University (GZU) 24.

Gwanda State University 25.

Harare Institute of Technology (HIT) 190 YEAR 2021 2021 2021 2020 2019 2019 &2020 2021 2021 2019 & 2020 2021 2020 2020 2013-2017 2021 2021 2017-2021 2021 2020 2019 & 2020 2019 & 2020 2021 2019/2020 2020/2021 2021 2020 2021 PUBLIC ENTITY YEAR 26.
Health Professions Authority (HPA) 27.

Health Services Board 28.

Hotspec (Private) limited 29.

Hwange Electricity Supply Company 30.

Industrial Development Corporation of Zimbabwe (IDCZ) 31.

Investor Protection Fund 32.

Kariba Hydro Power Company 33.

Lake Kariba Fisheries Research Institute 34.

Lupane State University 35.

Manicaland State University of Applied Sciences 2021 2021 2021 2021 2021 2021 2021 2021 2021 2020 36.

Marondera University of Agricultural Sciences and Technology 2020 & 2021 37.
Medical and Dental Practitioners Council of Zimbabwe 38.

Medicines Control Authority of Zimbabwe (MCAZ) 2021 2021 39.

Medical Laboratory and Clinical Scientists Council of Zimbabwe 2019 & 2020 40.

Midlands State University 41.

Minerals Marketing Corporation of Zimbabwe 42.

Mellofieldde Chemicals (Private) Limited 43.

Mosi Oa Tunya Development Company 44.

National AIDS Council (NAC) 45.

National Biotechnology Authority 46.

National Building Society (NBS) 47.

National Competitiveness Commission 48.


National Social Security Authority 49.

National Oil Infrastructure Company (NOIC) 50.

National University of Science & Technology (NUST) 51.

Net*One Cellular (Private) Limited 52.

New Ziana 53.

Nurses Council of Zimbabwe 54.

Parirenyatwa Group of Hospitals 191 2021 2021 2021 2020 2021 2021 2021 2021 2020 2021 2021 2021 2019&2020 2019 2021 PUBLIC ENTITY YEAR 55.

Petrotrade (Private) Limited 56.

Pharmacists Council of Zimbabwe 57.


Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) 58.

Powertel Communications (Private) Limited 59.

Printflow (Private) Limited 2021 2021 2021 2021 2021 60.

Procurement Regulatory Authority of Zimbabwe (PRAZ) 2020 & 2021 61.

Radiation Protection Authority of Zimbabwe 62.

Rhodes Matopos Estate Fund 63.

Rhodes Nyanga Estate Fund 64.

RMS (Private) Limited 65.

Rural Electrification Fund (formerly REA) 66.


Sally Mugabe Central Hospital (Harare Central Hospital) 67.

Scientific Industrial Research and Development (SIRDC) 68.

Silo Food Industries (Private) Limited 2021 2021 2021 2020 2021 2020 2021 2021 69.

Small and Medium Enterprises Corporation(SMEDCO) 2020&2021 70.

Tobacco Industry and Marketing Board (TIMB) 71.

Tobacco Research Board 72.

Traffic Safety Council 73.

UDCORP 74.

United Bulawayo Hospitals 75.

Universal Service Fund 76.


University of Zimbabwe 77.

Willowvale Mazda Motor Industries 78.

Zimbabwe Academic Research Network (ZARNet) 79.

Zimbabwe Anti-Corruption Commission 80.

Zimbabwe Broadcasting Corporation 81.

Zimbabwe Consolidated Diamond Company (Private) Limited (ZCDC) 82.

Zimbabwe Council for Higher Education 2021 2021 2021 2020 2020 2021 2021 2021 2018 & 2019 2019 & 2020 2018 & 2019 2021 2021 192 PUBLIC ENTITY YEAR 83.

Zimbabwe National Family Planning Council (ZNFPC) 84.
Zimref Gold (Private) Limited 85.

ZESA Enterprises (Private) Limited (ZENT) 86.

Zimbabwe Electricity Transmission and Distribution Company (ZETDC) 87.

Zimbabwe Investment and Development Agency (ZIDA) 88.

ZESA Holdings (Private) Limited 89.

Zimbabwe Media Commission 90.

Zimbabwe Mining Development Corporation (ZMDC) 2021 2021 2021 2021 2021 2021 2021 2021 91.

Zimbabwe National Statistics Agency (ZIMSTATS) 2020 & 2021 92.

Zimbabwe Open University (ZOU) 93.


Zimbabwe Parks and Wildlife Management Authority 94.

Zimbabwe Posts Properties (Private) Limited 95.

Zimbabwe Posts (Private) Limited 96.

Zimbabwe Power Company (ZPC) 97.

Zimbabwe Schools Examinations Council 98.

Zimbabwe Tourism Authority 99.

Zimbabwe United Passengers Company Limited (ZUPCO) 100.

Zimbabwe Women’s Microfinance Bank limited 2021 2021 2017-2021 2017-2021 2021 2019 2021 2020 2021 193 ANNEXURE “C”: AUDITS AT SIGNING STAGE PUBLIC ENTITY YEAR 1.
Chemplex Corporation 2021 2.

Ingutsheni Central Hospital 3.

Marondera University of Agricultural Sciences and Technology 4.

Mpilo Central Hospital 5.

Mosi Oa Tunya 6.

National Arts Council of Zimbabwe 7.

National Pharmaceutical Company 2019 2019 2020 2019 2020 2021 8.

Parirenyatwa Group of Hospital 2019 and 2020 9.

Petrotrade 10.

Pig Industry Board 11.

Research Council of Zimbabwe 12.

Sunway City (Private) Limited 13.

Transmedia Corporation (Private) Limited 14.


Zimbabwe Anti-Corruption Commission 15.

Zimbabwe National Statistics Agency 16.

Zimbabwe National Water Authority 2020 2020 2021 2021 2021 2018 2019 2021 17.

Zimbabwe Youth Council 2018 and 2019 194 ANNEXURE “D”: ACCOUNTS NOT SUBMITTED FOR AUDIT PUBLIC ENTITY YEAR 1.

Agriculture Research Council 2.

Agricultural Rural Development Authority (ARDA) 3.

Airports Company of Zimbabwe 4.

Air Zimbabwe (Private) Limited 5.

Allied Health Practitioners Council 6.


Applebridge (Private) Limited 7.

Broadcasting Authority of Zimbabwe (BAZ) 8.

Chitungwiza Central Hospital 9.

Civil Aviation Authority of Zimbabwe (CAAZ) 10.

CMED (Private ) Limited 11.

CMED fuels 12.

Cold Storage Company (CSC) 13.

Easy Go and Car Hire (Private) Limited 14.

Environmental Health Practitioners Council 15.

Environmental Management Agency (EMA) 16.

Forestry Commission 17.

Gwanda State University 18.

Infralink (Private) Limited 19.


Ingutsheni Central Hospital 20.

Lotteries and Gaming Fund 21.

Manicaland State University of Applied Sciences 22.

Medical Rehabilitation Practitioners Council of Zimbabwe 23.

Mosi- Oa Tunya Development Company 24.

Mpilo Central Hospital 25.

National Arts Council of Zimbabwe 26.

National Gallery 27.


National Handicrafts Centre 195 2021 2021 2021 2020 & 2021 2021 2015-2021 2021 2020 & 2021 2020 & 2021 2021 2021 2018-2021 2021 2021 2020 & 2021 2021 2021 2021 2020 & 2021 2021 2021 2021 2021 2021 2021 2020 & 2021 2009-2021 PUBLIC ENTITY 28.

National Handling Services (NHS) 29.

National Libraries and Documentation Centre 30.

National Museums and Monuments of Zimbabwe (NMMZ) 31.

National Railways of Zimbabwe (NRZ) 32.

National Social Security Authority (NSSA) 33.

New Ziana 34.
New Ziana 34.

Nurses Council of Zimbabwe 35.

Petrozim line (Private) Limited 36.

Pig Industry Board 37.

Road Motor Services (RMS) 38.

Sally Mugabe Central Hospital (Harare Central Hospital) 39.

School of Hospitality and Tourism 40.

Sports and Recreational Commission 41.

State Lotteries Fund 42.

UDCORP 43.

United Bulawayo Hospital (UBH) 44.

ZARNET (Private) Limited 45.

Zimbabwe Anti-Corruption Commission (ZACC) 46.

Zimbabwe Broadcasting Corporation (ZBC) 47.


Zimbabwe Electoral Commission (ZEC) 48.

Zimbabwe Manpower Development Fund (ZIMDEF) 49.

Zimbabwe National Road Administration (ZINARA) 50.

Zimbabwe Schools Examinations Council (ZIMSEC) 51.

Zimbabwe School of Mines 52.

Zimbabwe United Passengers Company Limited (ZUPCO) 53.
Zimbabwe Youth Council YEAR 2020 & 2021 2009-2021 2019-2021 2021 2021 2021 2020 & 2021 2021 2021 2021 2021 2020 & 2021 2021 2020 & 2021 2021 2021 2020 & 2021 2021 2020 & 2021 2021 2021 2021 2020 & 2021 2020 & 2021 2021 2020 & 2021 196