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TANZANIA CIVIL AVIATION AUTHORITY
ANNUAL REPORT FOR THE YEAR ENDED 30TH JUNE, 2011
Aviation Safety and Efficiency. Our Commitment. In Partnership
1TCAA Annual Report June 2011
Table of ConTenTslIsT of fIGURes 2lIsT of abbReVIaTIons 3 - 4oPeRaTIonal PeRfoRManCe 7
1.0 safeTY anD seCURITY ReGUlaTIon 71.1 Personnel Licensing Section 71.1.1 Examination 81.1.2 LicencesandCertificatesissued 91.1.3 Renewals 91.1.4 Endorsements 101.1.5 SaleofDocuments 10-111.1.6 Accidents and Incidents 111.1.7 AviationSecurity 12
2.0 eConoMIC ReGUlaTIon 152.1 AirTransportRegulation 152.2 Licensingofairandgroundhandlingservices 152.2.1Statusoflicensingofairservicesoperators 152.2.2Statusoflicensingofgroundhandlingservicesoperators 172.3 Bilateral Air Services Agreements (BASAs) 182.4 Coordination of facilitation of Air Transport 182.5. Statistical Reports 182.6. TrafficPerformance 18
3.0 aIR naVIGaTIon seRVICes 213.1 Air Navigation Services 213.1.2 AirTrafficIncidents 213.1.3 ProficiencyandadequacyofStaff 213.1.4 AvailabilityofNewCNSfacilities 213.1.5 Operationoffacilitiesatoptimumlevel 213.1.6 AirTrafficServices 223.1.7 AeronauticalInformationServices 233.1.8 TheCivilAviationTrainingCentre 24
4.0 CoRPoRaTe seRVICes 244.1 HumanResources 244.1.1 Procurement. 254.1.2 AviationHouse 25
5.0 RePoRTs anD fInanCIal sTaTeMenTsfoR THe YeaR enDeD 30 JUne 20115.1 CorporateInformation 295.2 ReportoftheDirectors 30-315.3 Statement of Directors’ Responsibilities 325.4 IndependentAuditor’sReport 33-345.4 StatementofComprehensiveIncome 355.7 Statement of Financial Position 365.8 StatementofChangesinEquity 375.9 StatementofCashFlows 385.10 NotestotheFinancialStatements 39-60
2 TCAA Annual Report June 2011
lIsT of fIGURes
Figure1: FlightOperationsInspectionsandSurveillance 7
Figure2: AirworthinessInspectionandsurveillance 8
Figure3: TechnicalExaminations 9
Figure4: LicenceandCertificate 10
Figure5: Licence/Certificate/Rating 11
Figure6: Endorsement 11
Figure7: Saleofdocument 12
Figure8: AccidentsandIncidents 13
Figure9: Oversighttask 14
Figure10:Certificate/Renewals 15
Figure11:Statusoflicensingofairservicesoperator 17
Figure12:Statusoflicensingofgroundhandlingservicesoperators 18
Figure13:AircraftMovementsin2009/10and2010/2011 21
Figure14:PassengerTrafficin2009/10and2010/2011 22
Figure15:CargoTraffic(Tons)in2009/10and2010/2011 22
Figure16:AirTrafficMovementsatAirports 26
Figure17:TotalNumberofAirTrafficMovementsbyMonths 26
3TCAA Annual Report June 2011
lIsT of abbReVIaTIons
ACC Area Control CentreAFCAC African Civil Aviation CommissionAFI Africa-IndianOceanRegionAIP AeronauticalInformationPublicationAMEs AircraftMaintenanceEngineersAMOs AircraftMaintenanceOrganizationsANS Air Navigation ServicesAOC AirOperatorsCertificateATCL AirTanzaniaCompanyLtdATCOs AirTrafficControlOfficersATM AirTrafficManagementATSDS AirTrafficServicesDirectSpeechAVSEC AviationSecurityAWOS AutomatedWeatherObservationSystemBASA Bilateral Air Service AgreementCASSOA CivilAviationSafetyandSecurityOversightAgencyCATC Civil Aviation Training CentreCCC ConsumerConsultativeCouncilCCs ComplianceChecklistsCMCC CivilMilitaryCoordinationMeetingCNS Communications,NavigationandSurveillanceCVOR ConventionalVeryHighFrequencyOmni-DirectionalRadioRangeDME DistanceMeasuringEquipmentDVOR DopplerVeryHighFrequencyOmni-directionalRadioRangeEAC EastAfricanCommunityEIB EuropeanInvestmentBank.ENAC FrenchInstituteofCivilAviationTrainingERB Engineers Registration BoardFAA Federal Aviation AdministrationFPL FlightPlanFIR FlightInformationRegionGDP GrossDomesticProductGHRs GroundHandlingRegulationsGPS GlobalPositioningSystemHF HighFrequencyIASA InternationalAviationSafetyAssessments/AuditIATA International Air Transport Association
4 TCAA Annual Report June 2011
ICAO International Civil Aviation OrganisationICT InformationCommunicationTechnologyIET InstituteofEngineersofTanzaniaISO International Standard OrganisationJNIA JuliusNyerereInternationalAirportKIA Kilimanjaro International AirportKRA KeyResultsAreaNAFISAT North-EasternAfricaandIndianOceanRegionVSATNetworkNACTE NationalCouncilforTechnicalEducationNC National Coordinator (for ICAO USOAP)NDB Non-DirectionalRadioBeaconNOF InternationalNOTAMOfficeNOTAM NotificationtoairmanOJT On-the-JobTrainingOPRAS OpenPerformanceReviewandAppraisalSystemPPRA PublicProcurementRegulatoryAuthorityRCC RescueCoordinationCentreRSC RescueSub-CoordinationCentreRVSM ReducedVerticalSeparationMinimumSAR SearchandRescueSIDS StandardInstrumentsDepartureRoutesSSI StationStandingInstructionsSMS SafetyManagementSystemSWOT Strengths,Weaknesses,OpportunitiesandThreatsTAISOA TanzaniaAeronauticalInformationOfficersAssociationTANEEA TanzaniaAirNavigationandElectronicsEngineersAssociationTANRs TanzaniaAirNavigationRegulationsTATCA TanzaniaAirTrafficControllersAssociationTCARs TanzaniaCivilAviationRegulationsUFIR UnifiedUpperFlightInformationRegionUACC Upper Area Control CentreUSAP UniversalSecurityAuditProgrammeUSOAP UniversalSafetyOversightAuditProgrammeVSAT VerySmallApertureTerminalVCCS VoiceCommunicationandControlSystemVHF VeryHighFrequencyVOR VeryHighFrequencyOmni-directionalRadioRangeWAN WideAreaNetworkYD YamoussoukroDecision
5TCAA Annual Report June 2011
CHaIRMan’s sTaTeMenT
I am delighted once again to present theAuthority’sAnnualReportandAuditedAccountsfortheyearended30June,
2011.This istheeighthreportsincetheAuthoritywasestablishedinNovember2003.Thisgivesmeanother
opportunity to highlight to our stakeholders thesteadyprogressmadebytheAuthorityduringthepastyearandhowithasdischargeditsdutiesand
responsibilities as per its mandate.
During the period, the Authority continued to implement its second Five YearStrategicPlan,aswellastheassociatedBusinessPlanandBudget.Emphasishasbeenin
consolidatingtheachievementsmadeunderthefirstFiveYearPlan,withaviewtosteeringtheAuthority intoamoreeffectiveandefficientorganizationbybench-marking itsservicesagainstbest practices.
Withregardtosafety,inoverallterms,theindustrywasrelativelysafeduringtheperiodalthoughtherewere twelve incidents/accidents reported as compared to thirteen incidents/accidents in2009/10,whichisadecreaseofabout8%.TheAuthoritycontinuedtoimplementitsStateSafetyProgram(SSP),aswellasSafetyManagementSystem(SMS),inordertoimproveaviationsafetyin thecountry.However,effective implementationofSSPandSMSwasadverselyaffectedbydelayinissuanceofguidancematerialsbyICAO.
With regard to economic regulatory framework, theAuthority embarked on the revision ofAirServiceLicensingandGroundhandlingRegulations.TheReviewswerenecessitatedbychallengesfacedintheimplementationoftheseregulations.Furthermore,theobjectiveofthereviewwastoensurethateconomicregulatoryactivitiesactasacatalystratherthananimpedimenttoaviationdevelopmentinthecountry.
Financially,theAuthorityagainrecordedamodestsurplus,whichwasusedtoaugmentitsSpecialAccount,staffdevelopmentandcapitalexpenditure.However,themajorchallengesfacingtheAuthorityaretohaveadequatefinancialresourcestofunditsnowexpandedmandate,contributiontothenationalbudgetandhavinginplaceadequateandmodernairnavigationinfrastructure.
On behalf of the Board of Directors, I wish to thank all our stakeholders for their continuedcooperationandcommendtheManagementandStaffforworkingtogetherasateam.ThishasenabledtheAuthoritytoachievethepositiveresultsashighlightedintheReport.
Mwatumu J. MalaleChairmanoftheBoardofDirectors
6 TCAA Annual Report June 2011
DIReCToR GeneRal’s sTaTeMenT
During the year ended 30 June 2011, theAuthority continued to provide safety, security andeconomicoversightoftheaviationindustry,aswellas,theprovisionofairnavigationservices.TheAuthorityactivitiesduringtheyearwereinlinewiththe2009/10-2013/14StrategicPlan,whoseprimaryfocusistoensuresafe,secure,regularandsustainablecivilaviationindustry.
Withregardtosafety,theAuthorityinspected36operatorsandissuedAirOperatorsCertificate(AOC),outof38operatorsexpected.Further,120aircraft,outof186expectedwereinspectedforrenewalofcertificateofairworthiness.Also,11aircraftoperatorstrainingfacilities, includingsyntheticflighttrainers,wereinspected.
Economic oversight function continuedwith the review of theTanzaniaCivilAviation (GroundHandling Services) Regulations, 2007. The Authority also started the process to review theTanzaniaCivilAviation(LicensingofAirServices)Regulations,2006.
Passengertrafficincreasedfrom2,865,103passengersin2009/10to3,255,364passengersin2010/11,recordingagrowthof13.6%.Aircraftmovementsincreasedfrom170,777movementsto176,420movementsinthesameperiod,recordingagrowthof3.3%.Cargotrafficontheotherhand,grewfrom24,940.7tonsto36,673.9tonsin2009/10and2010/11respectively.
Withrespecttoairnavigationservices,airtrafficcontrolservicescontinuedtobeprovidedattheTCAA13StationsasperBusinessPlan.Also,AeronauticalSearchandRescueoperations inDaresSalaamFlightInformationRegion(FIR)continuedtobecoordinatedbytheAuthority.InviewofthisRescueCoordinationCentreatJNIAwasconstantlyinthestateofpreparednessforimmediateaction,intermsoffacilitiesanddata,aswellastrainedpersonnel.
Finally,IwouldliketotakethisopportunitytoexpressmysincereappreciationtotheAuhority’sstakeholdersfortheircooperation,whichhasenabledthecivilaviationindustry’sperformancetogenerallyimproveduringtheperiod,comparedtothepreviousyear.
fadhili J. ManongiDirector General
7TCAA Annual Report June 2011
annUal RePoRT JUlY 2010 To JUne 2011
oPeRaTIonal PeRfoRManCe
During the period 2010/11, the performance of the Authority, measured against set targets wassatisfactory.Allkeyresultsareasoftheorganisationregisteredreasonableachievement.
1.0 safeTY anD seCURITY ReGUlaTIon
Various activities thatwere planned during the period for implementation and enforcement of theTanzaniaCivilAviationRegulations(TCARs)2006toensureacompliantindustrywerecarriedout.Thefollowingfiguresindicateperformanceinthespecificareas:
1.1 Personnel Licensing Section
FlightOperationsinspectionsandsurveillanceDuringtheyearthefollowingFlightoperationsandsurveillancewereconductedasperBusinessPlan.
Figure 1: Flight Operations Inspections and Surveillance
source: TCaa
8 TCAA Annual Report June 2011
Figure 2: Airworthiness Inspection and surveillance
source: TCaa
1.1.1 Examination
Atotalof428examinationswerebookedin2010/11comparedto562in2009/10recordinga13%decrease. This includedwrittenexaminations togetherwithvariousflying tests forgrant, renewal,conversion,extensionandvalidationoflicencesandcertificates.
Figure 3: Technical Examinations
source: TCaa
9TCAA Annual Report June 2011
1.1.2 LicencesandCertificatesissued
Atotalof318licencesincludingcertificateswereissuedduring2010/11comparedto243in2009/10resultingina13%increaseasshowninthetablebelow.
Figure 4: Licence and Certificate
source: TCaa
1.1.3 Renewals
Atotalof696licencesincludingcertificatesandratingswererenewedduringtheperiodof2010/11comparedto570in2009/10thisis9%increase.
10 TCAA Annual Report June 2011
Figure 5: Licence/Certificate/Rating
source: TCaa
1.1.4 Endorsements
A total of 318 endorsementsweremade on various licences and certificates compared to 232 in2009/10resultingina15%increase.
Figure 6: Endorsement
source: TCaa
11TCAA Annual Report June 2011
1.1.5 SaleofDocuments
Atotalof184variousdocumentsweresoldduringtheperiodof2010/11comparedto176in2009/10resultingina3%increase.
Figure 7: Sale of document
source: TCaa
1.1.6 Accidents and Incidents
Twelve accidents were reported during the period as compared to thirteen accidents reported in2009/10which is a decrease of about 10%.Sensitization is going on for implementation of safetymanagementsystemacrossallsafetyrelateddisciplinesintheaviationindustry.
2010/11 2009/10Incidents 9 0accidents 3 13Total 12 13
12 TCAA Annual Report June 2011
Figure 8: Accidents and Incidents
source: TCaa
1.1.7 AviationSecurity
TheAviationSecuritySectionestablishedabaselineof0(zero)actsofunlawfulinterferencefortheCountryforYear2009/10.
TheCivilAviation (Security)Regulations, 2007was reviewed.TheNationalCivilAviationSecurityProgramme (NCASP) andNational CivilAviation SecurityQuality Control Programme (NCASQP)werereviewedandamended.TheNationalCivilAviationSecurityTrainingProgramme(NCASTP)andCertificationofScreenerManualwerecombinedtoformtheNCASTPandtheoversightchecklistsforairport,aircraftaudit,inspectionandtestweredeveloped.Furthermore,3Airportsecurityprogrammes,5Airlinesecurityprogrammesand1CateringAgentSecurityProgrammewerereviewedandapproved.
Attotalof73securityoversightswereconductedin2010/11comparedto61conductedin2009/10asindicatedinthetable.Thiswasanincreaseof16%.Theoversightsinvolvedtheaudits,followupinspections and tests tasksof airports, aircraft, cateringandhandling agents’ security operations.Theoversightsassistedoperators to identify the security lapsesandmade immediate correctionsand those taking long timeandhugefinances,operators haveputupactionplans to remedy thedeficiencies.
02468
101214
Num
bers
2009/2010 2011/2010
Years
Accidents and Incidents
Incidents
Accidents
Total
13TCAA Annual Report June 2011
aviationsecurityoversight
Figure 9: Oversight task
source: TCaa
Five airport committeemeetings and 3 interactivemeetingswith stakeholderswere conducted toencourage the industry to accept compliance responsibility. During the period, the National CivilAviationSecurityCommitteeheldfourmeetingsalso.Themeetingsgreatlycontributedinresolvingsecurityconcernsbyoperators.
In 2010/11, a total of 150 screener certificateswere issued/ renewed compared to 120 issued in2009/10,asshownintheTable.Thiswasanincreaseof20%.
Certificates Issued/ Renewals
s. no Certificate/Renewals 2010/11 2009/101 Screeners 150 120
source: TCaa
15TCAA Annual Report June 2011
2.0 eConoMIC ReGUlaTIon
2.1 AirTransportRegulation
During the financial year 2010/11, the Authority initiated a process to review the Tanzania CivilAviation(GroundHandlingServices)Regulations,2007.ThereviewwasnecessitatedbydifficultiesexperiencedduringtheimplementationoftheRegulationswhichwerepromulgatedintheyear2007.Thereviewisexpectedtobecompletedduringtheyear2011/12.
Furthermore,reviewoftheCivilAviationActwascompletedandthedraftlegislationwasforwardedtotheMinistryforfurtheraction.TheAuthorityalsostartedtheprocesstoreviewtheTanzaniaCivilAviation(LicensingofAirServices)Regulations,2006.
2.2 Licensingofairandgroundhandlingservices
Duringtheyearunderreview,theBoardheldtwoLicensingBoardMeetings(oneinOctober2010andtheotheroneinJune2011)andconsidered37(thirtyseven)and8(eight)applicationsforairandgroundhandlingservicesrespectively,asdetailedbelow:
2.2.1 Statusoflicensingofairservicesoperatorsin2010/11vs.2009/10
october/november May/June Total
approved Disapproved approved Disapproved approved Disapproved
2009/10 New applicants 2 0 10 0 12 0
Applicants for renewal/variation
17 0 26 0 43 0
Total 19 0 36 0 55 0
2010/11 New applicants 3 0 4 3 7 3
Applicants for renewal/variation
11 0 16 0 27 0
Total 14 0 20 3 34 3
source: TCaa
16 TCAA Annual Report June 2011
Figure 11: Status of licensing of air services operator
source: TCaa
17TCAA Annual Report June 2011
2.2.2 Statusoflicensingofgroundhandlingservicesoperatorsin2010/11vs.2009/10
october/november May/June Total
approved Disapproved approved Disapproved approved Disapproved
2009/10 New applicants
3 1 7 1 10 2
Applicants forrenewal/variation
0 0 0 1 0 1
Total 3 1 7 2 10 3
2010/ 11 New applicants
4 0 3 0 7 0
Applicants forrenewal/variation
1 0 0 0 1 0
Total 5 0 3 0 8 0
source: TCaa
Figure 12: Status of licensing of ground handling services operators
source: TCaa
18 TCAA Annual Report June 2011
2.3 BilateralAirServicesAgreements(BASAs)
s/no. Year Country Date1. New BASAs negotiated 2009/10 •Turkey
•Jordan•Bahrain
October2009February2010November2009
2010/11 Nil
2. BASA reviewed 2009/10 •Kenya•Mozambique•DRC
July2009July2009February2010
2010/11 Kenya February2011
3. BASA signed 2009/10 •Mozambique•Turkey
August2009February2010
2010/11 Jordan February2011
source: TCaa
2.4 Coordination of facilitation of Air Transport
During the period under review, two NationalAir Transport Facilitation (National FAL) CommitteemeetingsandtwoEastAfricanconsultations(EastAfricanFAL)meetingsonairtransportwereheld.
The29thand30thNationalFALmeetingswereheld inMwanzaandZanzibar inNovember2010andMay2011respectively.TheEastAfricanFALmeetings(29thand30th)wereheldinBujumbura,BurundiandMombasa,KenyainDecember2010andMay2011respectively.
2.5. Statistical Reports
TheStatisticalReportfor2010wasout inOctober,2011,whilefour(4)quarterlyStatisticalreportswereissuedinNovember2010,February2011,May2011andAugust2011.
2.6. TrafficPerformance
Atotalof32,649 internationalaircraftmovementswerehandled in thecountry in theyear2010/11recordingagrowthby35.6%.Thecountryhandled24,085movementsin2009/10.Thecorrespondingnumberofpassengershandledincreasedby15.6%,fromatotalof1,289,191passengersin2009/10to1,490,130passengersin2010/11.TheincreasesinbothaircraftmovementsandpassengersarearesultofintroductionofservicesbyTurkishAirlines,ComAirLtd,resumptionofservicesbyOmanAir,expansionofservicesbyFiveForty(540)Aviation(K)LtdandincreaseoffrequenciesbyKenyaAirways,QatarAirwaysandEthiopianAirways.
Internationalcargohandledincreasedby51%,from22,216tonsin2009/10to33,548tonsin2010/11.
19TCAA Annual Report June 2011
Thiswasdue to increaseof frequenciesbyKenyaAirways,QatarAirways,EthiopianAirlinesandcommencementofservicesbyTurkishAirlines.
Domesticaircraftmovementsontheotherhanddecreasedby2%,from146,692movementsin2009/10to143,771movementsin2010/11.ThiswasaresultofsuspensionofservicesbyATCL.However,thecorrespondingdomesticpassengersrecordeda12%increasefrom1,575,912passengersin2009/10to1,765,234passengersin2010/11whichwasduetoincreasedtouristarrivalsconnectingtodomesticdestinations.
Domesticcargoincreasedfrom2,726tonsin2009/10to3,126tonsin2010/11,equivalentto14.6%increase.ThisisaresultofincreaseintourismandexpansionofservicesbyFly540andPrecisionAirServicesLtdwhichincreasedflightstoArushaandKilimanjaroto3timesdailyfromtheprevious2flights.
Theshareofdomestic trafficwentdown to54% from theprevious55%,since international trafficregisteredahigherpercentagegrowthof15%comparedto12%growthindomestictraffic,between2009/10and2010/11.
Overall trafficperformanceof the industry recordedagrowthof3.3% inaircraftmovements, from170,777in2009/10to176,420in2010/11.
Figure 13: Aircraft Movements in 2009/10 and 2010/2011
source: TCaa
Overall passenger traffic increased from2,865,103 tons in 2009/10 to3,255,364 tons in 2010/11,equivalentto13.6%increase.
20 TCAA Annual Report June 2011
Figure 14: Passenger Traffic in 2009/10 and 2010/2011
source: TCaa
Overallcargorecordeda47%increase,from24,940.7tonsin2009/10to36,673.9tonsin2010/11.
Figure 15: Cargo Traffic (Tons) in 2009/10 and 2010/2011
source: TCaa
21TCAA Annual Report June 2011
3.0 aIR naVIGaTIon seRVICes
Duringthisperiod, theperformanceof theDivision,measuredagainstset targetswassatisfactory.Specifically,thefollowingwastheperformancelevelsinthevariouskeyresultsareas:
3.1 Air Navigation Services
Duringthisperiod,theAuthorityprovidedairtrafficservicesintheDaresSalaamFlightInformationRegion(FIR),includingtheairspaceabove24,500feetovertheterritoriesofBurundiandRwanda,satisfactorily.Operationandmaintenanceofcommunication,navigationandsurveillancefacilitiesinthecountrywerecarriedoutsatisfactorilyalsoandinaccordancewiththeAfrica-IndianOcean(AFI)AirNavigationalPlan.Theservicetargetsreachedinthespecificareasareasfollows:
3.1.2 AirTrafficIncidents
During the year, 4 incidents (all ‘AIRPROX’)were reported out of 75,393movements at the areacontrolcentre(ACC),givingarateof0.53incidentsper10,000aircraftmovements.Thisisadeclineby6%ofthesettarget(0.50)andanimprovementby13.1%bylastyearrate(0.61%).
3.1.3 ProficiencyandadequacyofStaff
Theproficiencyoftheairtrafficcontrollersearmarkedforcheckingwasundertakenasplanned.Further,during the period,more than95%of the training of air traffic controllers, aeronautical informationofficersandairnavigationengineerswascompleted.Fourairnavigationengineerswere recruited().Therecruitmentof8AIOswillbedoneinnextfinancialyear.Additionally13ATMOtraineeswhosuccessfullypassedinstructionalaerodromecontrolcourseandonjobtraining(OJT)wereemployedasATMO-Aerodrome
3.1.4 AvailabilityofNewCNSfacilities
Duringthisperiod,newNDBswereinstalledinDodoma,PembaandArusha.VHFMAIN/STANDBYandTransceiversequipmentwereinstalledatArusha,Dodoma,IringaandMbeya.Inaddition,newVoicerecordingsystemswereinstalledatMwanza,ArushaandZanzibar.
3.1.5 Operationoffacilitiesatoptimumlevel
Allthefacilitiesweremaintainedonaregularbasisasprogrammed.Sparesavailabilityimprovedandanaverageequipmentserviceabilityof98%wasattained.Thedetailedserviceabilityofthedifferentfacilitieswasasfollows:
• BothNavigationAidsandSurveillanceequipmentoperatedatserviceabilitylevelof99%.
22 TCAA Annual Report June 2011
• ServiceabilityoftheVHFAreaCoveraveragedat99%duringtheyearwhiletheserviceabilityoftheVHFstationradioswas100%
• ServiceabilityoftheATSDSlinkwas99%
• WithregardtotheAeronauticalFixedTelecommunicationNetwork,serviceabilityoftheequipmentfortheyearwas98%fortheinternationalcircuitsand77%forthedomesticcircuits.
3.1.6 AirTrafficServices
AirTrafficControlservicescontinuedtobeprovidedon24hoursbasisattheAreaControlCentre,JuliusNyerereandZanzibarInternationalAirports.AtMwanzaAirportserviceswereprovidedfor17hourscommencingfrom06:00amandoccasionallyextendedtocaterfornon-scheduledflights.Attheremaining11airports,serviceswereprovidedduringdaytime.
TwentyfourhoursterminalradarcontrolservicescontinuedtobeprovidedatDaresSalaamandarearadarservicewasavailableforen-routeairtrafficwithintheEasternsector.
Duringthisperiod,thenumberofaircraftmovementshandledbytheDaresSalaamAreaControlCentreincreasedby13.6%,from65,151to75,393.
At the thirteen airports in Tanzania where the Authority provides air traffic control services, thetotal aircraftmovements increasedby25.1%, comparedwith theprevious year, i.e. from116,782movementsin2009/10to155,992movementsin2010/11.
Figure 16: Air Traffic Movements at Airports
source: TCaa
23TCAA Annual Report June 2011
Figure 17: Total Number of Air Traffic Movements by Months
source: TCaa
Figure 18: Total Number of Air Traffic Movements by Months
source: TCaa
3.1.7 AeronauticalInformationServices
Twenty-fourhourservicecontinuedtobeprovidedatJNIAandZanzibarwhile12hourservicewasprovidedatArusha,Dodoma,and13hrsatTerminalOne(atJNIA).Similarly,14hourservicewasprovidedatMwanzaAirports.
Duringtheyear,theInternationalNOTAMOffice(NOF)handled69,117foreignNOTAMscompared
Domestic and International Air Traffic Movement
0
500
1000
1500
2000
2500
3000
3500
4000
4500
July
August
Septem
ber
Octobe
r
Novem
ber
Decem
ber
Jan
Feb MarApri
lMay
June
Months
Num
ber o
f Mov
emen
t
24 TCAA Annual Report June 2011
to57467inthepreviousyearandissued808NOTAMsrelevanttoTanzaniacomparedto784in2009/10.Additionally, 7,424Aeronautical Pre-Flight Information Bulletins (PIB) were provided toairlines operating at JNIA compared to 6088 in 2009/10. Other targets achieved with regard toprovisionofAISareasdetailedhereunder:
• Provisionofaeronauticalinformationonatimelybasis
Fouramendments to theAIPwere issuedthisyear.AerodromeIndexChartandATSRouteStructureinFIRchartwereupdatedandreissued,followingchangesinadditionalairstripsandroutesrespectively.
• AeronauticalFixedServices
Thenumberofmessageshandledwas2,546,996(International1,000,812Domestic1,546,184)compared to 2,021,193 (International 860,638Domestic 1,160,555)messages handled theprevious year. Most of the international messages are transit traffic between Nairobi andJohannesburgCentres.
3.1.8 TheCivilAviationTrainingCentre
• The Civil Aviation Training Centre continued offering aviation related training courses totheAuthority and the industry fromwithin and also from neighbouring/regional countries ofBotswana,Namibia,Uganda,Rwanda,andBurundi.
• During theyear, theCentreconducteda totalof20courses involving283participants,173malesand110femaleswhocomprise196localstudentsand87internationalstudents.Thetotal revenue generated from courses was 37,790,000 Tanzanian shillings and 82,542 USDollars.
• Duringtheperiod,theCentre’scapacitywasupliftedbyrecruitingtwo(2)Instructorsandtrainingten(10)instructorsinvariousprofessionalsandacademiccourses.Two(2)Instructorswereretiredduringtheperiodandtheirpositionshavebeencovered.
• FullaccreditationfromNACTEhasbeenpursuedduringtheperiod.TheCurriculumdevelopmentexercisewhichinvolvedlabourmarketdemandsurveywascompleted.Thenextstagewhichinvolvepre-curriculumwriteupisinprogress.
• Six(6)InstructorswereregisteredbyNACTEaftermeetingthebasicrequirements.
• IntheeffortsofattainingcertificationfromTCAA,CATChasengagedinpreparationofTrainingandProceduresManual.Thedocumentisreadyandthenextstagewhichinvolvesevaluation,demonstration and inspection is in progress.
4.0 CoRPoRaTe seRVICes
4.1 HumanResources
Asof30June2011,theAuthorityhadatotalnumberof387outofwhom264weremalesand123werefemales.TheAuthoritycontinuedtorecruitnewemployeestofillvacantpositionswhicharoseduetoresignation,retirementandretrenchment.Duringtheperiodunderreviewatotaloften(10)newstaffwererecruited.
Duringthisperiod,theAuthoritycontinuedtoimplementthethreeyeartrainingprogramme(2009/2010–2010/2012).Fortheyearunderreview,atotalof138staffweretrained,63staffshorttermcoursesand66staffoncorporatecourses.66staffattendedinductioncourse.
25TCAA Annual Report June 2011
DuetolabourmobilityatotalnumberofonestaffsterminatedhiscontractswiththeAuthorityandjoinedotherinstitution.
Atotalnumberofsix(6)staffretiredduringtheperiodunderreviewafterattainingthecompulsoryretirement age.
4.1.1 Procurement
Duringtheperiodunderreview,theAuthoritycontinuedtoimplementthePublicProcurementActandPPRArequirementandpreparedanAnnualprocurementPlanasoneoftherequirementsoftheProcurementAct.andPPRA.
ThefollowingmajorProcurementsofgoodsandservicesweredoneduringthisperiod:
(i) SupplytwodoublecabinsforKigomaandMtwarastationsforoperations.
(ii) ProcurementofMultichannelRecordersforArusha,MwanzaandZanzibar.
(iii) ProcurementofstaffuniformsfortheAuthority’sstaff
(iv) ProcurementofofficemachinesandInformationTechnologyEquipment
(ComputersandAccessories.)
(v) ProcurementofAirnavigationequipments.
(vi) ConstructionofofficepartitioningforCentralworkshopatChang’ombeCentralstores.
4.1.2 AviationHouse
TheAuthoritycontinued implementationof theConstructionofAviationHouse. TheconstructionworkswerecompletedinFebruary2011andrelocationoftheHeadOfficeofficestothenewbuildingwasdonewitheffectfrom6March2011.
THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE
REPORT OF THE CONTROLLER AND AUDITOR GENERAL
ON THE FINANCIAL STATEMENTS OF THE
TANZANIA CIVIL AVIATION AUTHORITY
FOR THE YEAR ENDED 30TH JUNE, 2011
The Controller and Auditor General
National Audit O�ce,
Samora Avenue/Ohio Street,
P. O. Box 9080
Dar es Salaam
Telegram: “Ukaguzi”
Telephone: 255 22 2115157/8
Fax: 255 22 2117527
E-mail: [email protected]
March, 2012
THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE
REPORT OF THE CONTROLLER AND AUDITOR GENERAL
ON THE FINANCIAL STATEMENTS OF THE
TANZANIA CIVIL AVIATION AUTHORITY
FOR THE YEAR ENDED 30TH JUNE, 2011
The Controller and Auditor General
National Audit O�ce,
Samora Avenue/Ohio Street,
P. O. Box 9080
Dar es Salaam
Telegram: “Ukaguzi”
Telephone: 255 22 2115157/8
Fax: 255 22 2117527
E-mail: [email protected]
March, 2012
28 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY Office of the Controller and auditor General, National Audit Office, The United Republic of Tanzania (established under article 143 of the Constitution of the URT)
Thestatutorydutiesandreponsibilitiesof theControllerandAuditor General are givenunder Article 143 fo theConstitution of theURTof 1977 (revised2005)andfurtherelaboratedunderSect.10(1)ofthePublicAuditActNo.11of2008.
Vision Tobeacentrefoexcellenceinpublicsectorauditing
Mission Toprovideefficientauditservicesinordertoenhanceaccountabilityandvalue
formoneyinthecollectionanduseofpublicresources.
In providing quality services, nao is guided by the following Core Values: ✓ objectivity :Weareanimpartialorganization,offeringservicestoourclients
inanobjective,andunbiasedmanner; ✓ excellence : We are professionals providing high quality audit services
basedonbestpractices; ✓ Integrity:Weobserveandmaintainhighstandardsofethicalbehaviorand
theruleoflaw; ✓ People focus:We focus on stakeholders’ needs by building a culture of
goodcustomercareandhavingcompetentandmotivatedworkforce; ✓ Innovation: We are a creative organization that constantly promotes a
cultureofdevelopingandacceptingnewideasfrominsideandoutsidetheorganization;and
✓ best resource utilization:We are an organization that values and usespublicresourcesentrustedtoitinefficient,economicandeffectivemanner.
We do this by:- • Contributingtobetterstewardshipofpublicfundsbyensuringthatourclients
areaccountablefortheresourcesentrustedtothem; • Helpingtoimprovethequalityofpublicservicesbysupportinginnovationon
theuseofpublicresources; • Providingtechnicaladvicetoourclientsonoperationalgapsintheiroperating
systems; • Systematicallyinvolveourclientsintheauditprocessandauditcycles;and • Providingauditstaffwithadequateworkingtoolsandfacilitiesthatpromote
independence.
© This report is intended to be used by Tanzania Civil Aviation Authority. However, upon receipt and adoption of this report by the TCAA Board of Directors, the report becomes a matter of public record and its distribution may not be limited.
29TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
CORPORATEINFORMATION
DIRECTORS Mrs.MwatumuJ.Malale Chairman Mr.MbwanaJ.Mbwana ViceChairman Mrs.MargaretT.Munyagi DirectorGeneral(Retiredon14October2010) Mr.FadhiliManongi DirectorGeneral(Appointedon14October2010) Hon.ThuwaybahKissasi Director(Non-Executive) Prof.ArnoldTemu Director(Non-Executive)
AUTHORITYSECRETARY Tanzania Civil Aviation Legal Department AviationHouse Nyerere/KitundaRoad Junction P.O.Box2819 Dar-es-Salaam Tanzania
REGISTEREDOFFICE AviationHouse Nyerere/KitundaRoadJunction P.O.Box2819 Dar-es-Salaam Tanzania
BANKERS NationalBankofCommerceLimited CorporateBranch Dar-es-Salaam Tanzania
NMBBankPlc BankHouseBranch Dar-es-Salaam Tanzania
CRDBBankPlc AzikiweBranch Dar-es-Salaam Tanzania
30 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
RePoRT of THe DIReCToRsfoR THe YeaR enDeD 30 JUne 2011
The directors are pleased to present their report and the audited financial statements for the year ended30June2011.
esTablIsHMenT anD aCTIVITIes
The Tanzania Civil Aviation Authority also referred to as “TCAA” or “the Authority” was established on 1November2003asacorporatebody,pursuanttotheTanzaniaCivilAviationAuthorityAct2003(ActNo.10of2003)whichasbeenconsolidatedwiththeCivilAviationAct1977(ActNo.13of1977)andnowtitledastheCivil Aviation Act (CAP 80) of 2006.
ThisActmandatestheAuthoritytoregulatetheactivitiesofpersonsandinstitutionscarryingoutairservices,aeronauticalairportservicesandairnavigationservicesaswellascontinuewith theprovisionofnavigationservices.
ResUlT foR THe YeaR
Theresultsfortheyeararesetoutonpage8ofthesefinancialstatements.
DIReCToRs
ThedirectorsoftheAuthorityatthedateofthisreportandthosewhohaveservedduringtheyeararesetouton page 2.
DIReCToR’s InTeResT
TheauthorityiswhollyownedbytheGovernmentoftheUnitedRepublicofTanzania.DirectorsdonothaveanyinterestintheAuthority.
RelaTeD PaRTY TRansaCTIons
Detailsoftransactionswithrelatedpartiesaredisclosedinnote24ofthefinancialstatements.Alltransactionswithrelatedpartieswereundertakenonarm’slengthbasis.
eMPloYees WelfaRe
Therelationshipbetweenmanagementandemployeescontinuedtobegood.Attheyearend,therewerenounresolvedcomplaintsreceivedfromemployees.
TheAuthorityhadatotalof386employeesasat30June2011(2010:totalof393employees)outofwhich263or 68 percent were male and 123 or 32 percent were female.
employment Policy
TanzaniaCivilAviationAuthority iscommitted toemploymentpolicieswhich followbestpractices,basedonequalopportunity forall employees irrespectiveof sex, race, religious,disability, ageormarital status.TheAuthority recognizes theneed for ensuring fair employmentpractices in recruitment and selection, and theretention,trainingandcareerdevelopmentofstaff.AsameasuretowardimprovingEmployer/Employeegoodrelationship,duringtheyear2011managementconvenedonemeetingwithallstaff.
Management/employees Relationship
Therelationshipbetweenmanagementandstaffiscordial.Employeesareinvolvedinmajorchangesaffectingthemthroughsuchmeasuresasmonthlydepartmentalmeetings,internalcommunicationandworkerscouncilmeetings. There are well established procedures, including regular meeting with trade union (TUGHE), toensurethattheviewsofemployeesaretakenintoaccountinreachingdecisions.
31TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
RePoRT of THe DIReCToRs (ConTInUeD)
eMPloYees WelfaRe (Continued)
Training
TheAuthorityregardstrainingasinvestmentinhumanresources.TheAuthority,therefore,setsasidesufficientresourcesinitsannualbudgetandplanstomeetingtrainingobjectives.Allemployeesaretrainedwiththeaimofequipping themwithknowledge,skills,attitudeandabilitiesnecessary toachieveTanzaniaCivilAviationAuthoritystrategicgoals.TrainingisnormallycarriedoutwithfocusoncorebusinessoftheAuthorityacademicandprofessional improvementand technicalprograms.Training isconducted inaccordancewithanannualtrainingprogramdrawnfromtrainingneedsassessment,which takes intoaccount identifiedskillsgapsandexposuretonewandeverchangingworkingandbusinessenvironment.ThisguaranteesavailabilityofhighcaliberemployeescapableofmeetingtheAuthority’svisionandmission.
Medical assistance
TheAuthoritymeetsmedicalexpensesofitsemployeesandtheirimmediatedependantsthroughcontributingtoNationalHealthInsuranceFund(NHIF).
HIV/aIDs Policy
TheAuthorityHIV/AIDSpolicyfocusesoncreatingawarenessonHIV/AIDSamongstaffmembersbyprovidingthemwithupdateinformationonHIV/AIDSwithemphasisonthepreventivestrategiesandeducationagainstthe pandemic. The policy also focuses on encouraging employees to undertake voluntary counseling andtesting (VCT).
financial support
Loans,salaryadvancesandotherfinancialassistanceareavailabletoallconfirmedemployeesinaccordancewithapprovedstaffpoliciesandpractices.
solVenCY
ThestateofaffairsoftheAuthorityasat30June2011issetoutonpage9ofthesefinancialstatements.ThedirectorsconsidertheAuthoritytobesolvent.
aUDIToRs
Deloitte&Touchewerethe independentauditorsof theAuthority for thefinancialyearended30June2011followingtheirre-appointmentbytheControllerandAuditorGeneral.
bY oRDeR of THe boaRD
______________________________Mr.MbwanaJ.MbwanaVice Chairman
______________________ 2012
32 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
sTaTeMenT of DIReCToRs’ ResPonsIbIlITIes
TheTanzaniaCivilAviationAuthorityActNo.13of1997asamendedin2006requirethedirectorstopreparefinancial statements foreachfinancial yearwhichgivea trueand fair viewof thestateofaffairsof theAuthorityasattheendofthefinancialyear,andoftheresultsfotheAuthorityforthatyear.ItalsorequiresthedirectorstoensurethattheAuthoritykeepsproperaccountingrecordswhichdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheAuthority.TheyarealsoresponsibleforsafeguardingtheassetsoftheAuthority.
The directors are responsible for the preparation and fair presentation of these financial statements inaccordancewith International FinancialReportingStandards and themanner required by theTanzaniaCivilAviationAuthorityAct.No.13of1997asamendedin2006,andforsuchinternalcontrolsasdirectorsdetermine are necessary to enable the preparation of financial statements that are free frommaterialmisstatement,whetherduetofraudorerror.
Thedirectorsaccept responsibility for theannualfinancialstatements,whichhavebeenpreparedusingappropriate accounting policies supported by reasonable and prudent, judgements and estimates, inconformitywithInternationalFinancialReportingStandardsandTanzaniaCivilAviationAuthorityActNo.13of1997asamendedin2006.ThedirectorsareoftheopinionthatthefinancialstatementsgiveatrueandfairviewofthestateofthefinancialaffairsoftheAuthorityandofitsoperatingresults.Thedirectorsfurtheracceptresponsibilityforthemaintenanceofaccountingrecordswhichmayberelieduponinthepreparationoffinancialstatements,aswellasadequatesystemsofinternalfinancialcontrol.
Nothinghascome to theattentionof thedirectors to indicate that theAuthoritywill not remainagoingconcernatleastforthenexttwelvemonths.
______________________________ _______________________Mr.MbwanaJ.Mbwana Prof.ArnoldTemuVice Chairman Director
____________________ 2012 _____________________ 2012
33TCAA Annual Report June 2011
To: The Chairman, board of Directors, Tanzania Civil aviation authority, P.o. box 2819, Dar es salaam,
RePoRT of THe ConTRolleR anD aUDIToR GeneRal on THe fInanCIal sTaTeMenT of THe TanZanIa CIVIl aVIaTIon aUTHoRITY foR THe YeaR enDeD 30TH JUne 2011
IntroductionIhaveauditedtheaccompanyingfinancialstatementsof theTanzaniaCivilAviationAuthority, which comparises the statement of financial position as at 30th June,2011,and thestatementofcomprehensive income,statementofchanges inequityandstatementofcashflowsfor theyear thenended,andthenotes to thefinancialstatements which includes a summary of significant accounting policies and otherexplanatorynotessetoutonpages8to33ofthisreport.
Directors’ Responsibility for the financial statementsTheBoardofDirectorsoftheTanzaniaCivilAviationAuthority isresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewiththeInternational Financial Reporting Standards. This responsibility includes designing,implementing andmaintaining internal controls relevant to the preparation and fairpresentationoffinancialstatementsthatarefreefrommaterialmisstatements,whetherdue to fraud or error, selecting and applying appropriate accounting policies andmakingaccountingestimatesthatarereasonableinthecircumstances.
Responsibilities of the Controller and auditor GeneralMy responsibility as auditor is to express an independent opinion on the financialstatements based on the audit. The audit was conducted in accordance with theInternational Standards onAuditing (ISA), the International Standards of SupremeAuditInstitutions(ISSAI),andsuchotherauditproceduresIconsiderednecessaryinthecircumstances.Thesestandards require that Icomplywithethical requirementsandplan andperform the audit to obtain reasonable assuranceaboutwhether thefinancialstatementsarefreefrommaterialmisstatements.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementsof the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal controls relevant to the Authority’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditprocedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of theAuthority’s internal controls. Anauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthe reasonablenessof theaccountingestimatesmadebymanagement, aswell asevaluatingtheoverallpresentationofthefinancialstatements.
Inaddition,Section10(2)of thePAAof2008requiresme tosatisfymyself that theaccountshavebeenprepared inaccordancewithappropriateaccountingstandardsand that, reasonable precautions have been taken to safeguard the collection ofrevenue,receipt,custody,disposal,issueandproperuseofpublicproperty,andthatthe law,directionsand instructionsapplicabletheretohavebeendulyobservedandexpendituresofpublicmonieshavebeenproperlyauthorized.
34 TCAA Annual Report June 2011
Furthermore, Section 44(2) of the Public Procurement Act No. 21 of 2004 andRegulation 31 of the Public Procurement (Goods,Works, Non-Consultant ServicesandDisposalofPublicAssetsbyTender)Regulations2005requiresmetostateinmyannualauditreportwhetherornottheauditeehascompiledwiththeprovisionsoftheLawanditsRegulations.
IbelievethatthatauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.
Unqualified OpinionIn my opinion, the financial statements present fairly, in all material respects, thefinancialpositionoftheTanzaniaCivilAviationAuthorityasof30thJune,2011anditsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewiththeInternational Financial Reporting Standards.
Report on other legal and Regulatory Requirements
Compliance with Public Procurement actInviewofmyresponsibilityontheprocurementlegislation,andtakingintoconsiderationtheprocurement transactionsandprocesses Ihave reviewedaspartof thisaudit, IstatethatTanzaniaCivilAviationAuthorityprocurementhasgenerallycompliedwiththerequirementsofthePublicProcurementAct,2004anditsrelatedRegulationsof2005.
LudovickS.L.UtouhConTRolleR anD aUDIToR GeneRal
OfficeoftheControllerandAuditorGeneral,NationalAuditOffice,DaresSalaam,Tanzania
20thMarch,2012
35TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITYSTATEMENTOFCOMPREHENSIVEINCOMEFOR THE YEAR ENDED 30 JUNE 2011
note 2011 2010 TZs ‘000 TZs ‘000
Revenue 4 22,497,084 18,486,873
OtherIncome 52,656 82,328
Operatingandadministrativeexpenses 5 (11,790,219) (10,730,167)
Staff costs 7 (9,129,727) (6,846,744)
Interestincome 199,102 508,864
Interestexpense 8 (221,132) -
surplus for the year 9 1,607,764 1,501,154
other comprehensive income
Gainonavailableforsaleinvestments 13 1,188 1,486
Totalcomprehensiveincome 1,608,952 1,502,640
36 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
STATEMENTOFFINANCIALPOSITIONAS AT 30 JUNE 2011
note 2011 2010 TZs ‘000 TZs ‘000
asseTsnon current assets 11 25,484,620 23,468,754Propertyandequipment 12 133,483 422,630Intangible assets 25,618,103 23,891,384
Current assetsAvailableforsaleinvestment 13 14,261 13,073Inventory 14 1,238,705 403,468Tradeandotherreceivables 15 3,608,893 2,932,193Termdeposits 16 4,394,608 7,287,926Cashandbankbalances 3,488,434 4,071,599
12,744,901 14,708,259
Total assets 38,363,004 38,599,643
eQUITY anD lIabIlITIesCapital and ReservesCapitalfund 18 6,694,229 6,694,229Investmentrevaluationreserves 11,030 9,842Accumulatedsurplus 19 20,271,155 18,663,391
Total equity 26,976,414 25,367,462
lIabIlITIesnon-current liabilitiesBorrowings 20 7,528,491 7,967,735Gratuitypayable 21(iii) 913,215 795,695
8,441,706 8,763,430
Current liabilitiesBorrowings 20 1,037,393 2,128,897Fundsheldforspecialproject 22 330,114 330,114Tradeandotherpayables 23 1,577,377 2,009,740
Total liabilities 2,944,884 4,468,751
Total equity and liabilities 38,363,004 38,599,643
Thefinancialstatementsonpages8to33wereapprovedbytheboardofdirectorson..................2012andweresignedonitsbehalfby:
Mr.MbwanaJ.Mbwana Prof.ArnoldTemuVice Chairman Director
37TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITYSTATEMENTOFCHANGESINEQUITYFOR THE YEAR ENDED 30 JUNE 2010
Investment Capital revaluation accumulated fund reserve surplus Total equity TZs ‘000 TZs ‘000 TZs ‘000 TZs ‘000
at 1 July 2009 6,694,229 8,356 17,162,237 23,864,822
Surplusfortheyear - - 1,501,154 1,501,154
other comprehensive income:
Gainonavailableforsaleinvestment(Note12) - 1,486 - 1,486
at 30 June 2010 6,694,229 9,842 18,663,391 25,367,462
at 1 July 2010 6,694,229 9,842 18,663,391 25,367,462
Surplusfortheyear - - 1,607,764 1,607,764
other comprehensive income:
Gainonavailableforsaleinvestment(Note12) - 1,188 - 1,188
at 30 June 2011 6,694,229 11,030 20,271,155 26,976,414
38 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
STATEMENTOFCASHFLOWSFOR THE YEAR ENDED 30 JUNE 2011
note 2011 2010 TZs ‘000 TZs ‘000
oPeRaTInG aCTIVITIessurplus for the year 1,607,764 1,501,154Adjustmentsfor:Depreciationandamortization 2,252,666 1,618,813
Operatingsurplusbeforeworkingcapitalchanges 3,860,430 3,119,967
Working capital changes(Increase)/decreaseinventories (835,237) 72,544Increaseintradeandotherreceivables (676,700) (100,713)Increaseingratuitypayable 117,520 171,128(Decrease)/increaseintradeandotherpayables (432,364) 877,095
net cash from operating activities 2,033,649 4,140,021
INVESTING ACTIVITIESAcquisitionofproperty,plantandequipment (3,979,385) (10,151,880)Acquisitioninintangibleassets - (164,166)Movementintermdeposits 221,131 (1,493,133)
net cash used in investing activities (3,758,254) (11,809,179)
FINANCING ACTIVITIES
Netborrowings(repaid)/received (1,530,747) 2,365,723
Netcashgeneratedfromfinancingactivities (1,530,747) 2,365,723
(Decrease)/increaseincashandcashequivalent (3,255,352) (5,303,435)
Cashandcashequivalentsatthebeginningoftheyear 9,504,326 14,807,761
Cashandcashequivalentsattheendoftheyear 17 6,248,974 9,504,326
39TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTSFOR THE YEAR ENDED 30 JUNE 2011
1. SIGNIFICANT ACCOUNTING POLICIES
statement of compliance
ThefinancialstatementshavebeenpreparedinaccordancewiththeInternationalfinancialReportingStandards.Theprincipalaccountingpoliciesadoptedinthepreparationofthesefinancialstatementsarestatedbelow:
(i) Newstandardsandamendmentstopublishedstandardseffectivefortheyearended30June2011.
new and revised standards affecting presentation and disclosure only
Effectiveforannualperiods beginning on or after Amendments and revised standards
VariousimprovementsresultingfromApril2009Annual 1January2010 improvements to IFRSs
IAS32,FinancialInstruments:Presentation- 1February2010 amendmentsrelatingtoclassificationofrightsissues
ImprovementstoIFRSs(2010) 1July2010
New Interpretation
IFRIC19,ExtinguishingFinancialLiabilitieswithEquity 1July2010 Instruments
(ii) Relevant newand amended standards in issue but not yet effective in the year ended 30June2011
Effectiveforannualperiods beginning on or after
New and Amendments to standards
IFRS7,FinancialInstruments:Disclosures- 1July2011 amendmentsenhancingdisclosuresabouttransfersof financialassets
IFRS9,FinancialInstruments-Classificationand 1January2013 Measuremets(2010)
IAS24,RelatedPartyDisclosures-reviseddefinitionof 1January2011 related parties
VariousimprovementsresultingfromMay2010Annuay 1January2011 Improvements to IFRSs
IAS1,PresentationofFinancialStatements- 1July2012 Presentationofitemsofothercomprehensiveincome
IAS19,EmployeeBenefits(2011) 1January2013
IFRS12,DisclosureofInterestsinOtherEntities 1January2013
IFRS13,FairValueMeasurement 1January2013
40 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
1. sIGnIfICanT aCCoUnTInG PolICIes (Continued)
(iii) Impactofnewandamendedstandardsandinterpretationsonthefinancialstatementsfortheyearended30June2011
amendments to IfRs 7 financial Instruments: Disclosures
These make amendments to IFRS 7 Financial Instruments: Disclosures resulting from the IASB’scomprehensivereviewofoffbalancesheetactivities.
Theamendmentsintroduceadditionaldisclosures,designedtoallowusersoffinancialstatementstoimprovetheirunderstandingoftransfertransactionsoffinancialassets(forexample,securitisations),includingunderstandingthepossibleeffectsofanyrisksthatmayremainwiththeentitythattransferredtheassets.Theamendmentsalsorequireadditionaldisclosuresifadisproportionateamountoftransfertransactionsareundertakenaroundtheendofareportingperiod.
Various improvements resulting from april 2009 annual improvements to IfRss
A number of the amendments in this tranche are largely technical, clarifying particular terms, oreleminatingunintendedconsequences.Otherchangesaremoresubstantial,suchasthecurrent/non-currentclassificationofconvertibleinstruments,theclassificationexpendituresonunrecognisedassetsinthestatementofcashflowsandtheclassificationofleasesoflandandbuildings.
Ias 32, financial Instruments: Presentation
Amendmentsrelatingtoclassificationofrightsissues
(iv)Earlyadoptionofstandards
TheAuthoritydidnotearly-adoptanyneworamendedstandardsduringtheyear
basis of accounting
Thefinancialstatementshavebenpreparedonthehistoricalcostbasis,exceptfortherevaluationofequityshareswhichcarriedatfairvalue.
Revenue Recognition
RevenueisrecognisedtotheextentthatitisprobablethateconomicbenefitswillflowtotheAuthorityand the revenue can be reliablymeasured. Revenue on provision of services is recognised whenserviceshavebeenprovidedtotheoperator.
accounting for grants
Agrantisrecognisedasincomeonacashbasisi.e.whenreceived.Grantsreceivedfromdonorsinrespect of capital expenditureare crediteddirectly toanappropriate capital grantsaccount.Grantsreceived inrespectofrevenueexpenditurearecreditedto incomeandexpenditurestatement inthesameperiodinwhichtherelatedrevenueexpenditureischarged.
Interest Income
Interestincomeisaccruedonatimebasis,byreferencetotheprincipaloutstandingandattheeffectiveinterestrateapplicable,whichistheratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialassettothatasset’snetcarryingamount.
41TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
1. sIGnIfICanT aCCoUnTInG PolICIes (Continued)
foreign currency translation
(i)Functionalandpresentationcurrency
Items included in the financial statementsof theAuthorityaremeasuredusing the currencyof theprimaryeconomicenvironment inwhich theAuthorityoperates(“functionalcurrency”).ThefinancialstatementsarepresentedinTanzanianShillings,whichistheAuthority’sfunctionalandpresentationcurrency.
(ii)Transactionsandbalances:
Foreign currency transactions are translated into Tanzanian shillings using the exchange ratesprevailingatthedatesoftransactions.Attheendofeachreportingperiod,monetaryitemsdenominatedinforeigncurrenciesaretranslatedtoTanzanianShillingsattherateprevailingatthatdate.Exchangedifferencesarerecognizedinprofitorlossintheperiodinwhichtheyarise.
borrowing costs
Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassets.whichareassetsthatnecessarilytakeasubstantialperiodoftimetogetreadyfortheirintendeduseorsale,areaddedtothecostofthoseassets,untilsuchtimeastheassetsaresubstantiallyreadyfortheirintendeduseorsale.
Investment income earned on the temporary investment of specific borrowings pending theirexpenditureonqualifyingassetsisdeductedfromtheborrowingcostseligibleforcapitatisation.
Allotherborrowingcostsarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.
Property and equipment
Propertyandequipmentarestatedatcost,lessaccumulateddepreciationandaccumulatedimpairmentlosses.
Depreciationiscalculatedtowriteoffthecostoffixedassetsonastraight-linebasisovertheusefullifeoftheassets.Theannualdepreciationrates,whichhavebeenconsistentlyapplied,areasfollows:
Buildings 4% MotorVehicles 20% TelecommunicationsEquipment 7% FurnitureandFittings 10% Computershardware 20%
Intangible assets: Computer software
Intangible assets acquired are carried at cost less accumulated amortization and accumulatedimpairment losses. Internally generated intangible assets, excluding capitalised development costsarenotcapitalisedandexpenditureischargedtoprofitorlossintheyearinwhichtheexpenditureisincurred.
Intangibleassetsareamortisedovertheusefuleconomiclifeandassessedforimpairmentwheneverthereisanindicationthattheintangibleassetmaybeimpaired.
42 TCAA Annual Report June 2011
TANZANIACIVIL AVIATION AUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
1. sIGnIfICanT aCCoUnTInG PolICIes (Continued)
amortization of Intangible assets
Amortizationiscalculatedonastraight-linebasistowriteoffthecostofintangibleassetsovertheirestimatedusefullives,Theannualratesofamortizationwhichhavebeenconsistentlyappliedare:
MISProject 25%
Impairment of assets
At theendofeachreportingperiod, theAuthority reviewsthecarryingamountsof itsassets todeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists.theasset’srecoverableamountisestimatedandanimpairmentlossisrecognizedintheprofitorlosswheneverthecarryingamountoftheassetexceedsitsrecoverableamount.
Inventories
Inventoriesarestatedat the lowerofcostandnet realizablevalue.Cost isdeterminedusing theFirst-in-Firstout(FIFO)method.Netrealizablevalueistheamountthattheitemcanrealizeinthemarketlesscostof bringing to the saleable condition.Specific provision ismade for obsolete, slowmovinganddamagedInventory.
financial instruments
Financial assets are classified into the following specified categories: ‘available-for-sale” (“AFS”) financialassets,heldtomaturity(“HTM”)and“loansandreceivables”.Theclassificationdependsonthenatureandpurposeofthefinancia!assetsandisdeterminedatthetimeofinitialrecognition.Atthereportingdates,theAuthorityhadloansandreceivablesonly.
(a)Effectiveinterestmethod
Theeffectiveinterestmethodisamethodofcalcufatingtheamortisedcostofafinancialassetandofallocatinginterestincomeovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashreceipts(includingall feesonpaintspaidorreceivedthatformanintegralpartoftheeffectiveinterestrate, transactioncostsandotherpremiumsordiscounts) throughtheexpected lifeof thefinancialasset,or,whereapproprtare.iashorterperiod,Incomeisrecognisedonaneffectiveinterestbasisfordebtinstruments.
(b)Loansandreceivables
Tradereceivables,loans,andotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinanactivemarketareclassifiedasloansandreceivables.Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairment.Interestincomeisrecognisedbyapplyingtheeffectiveinterestrateexceptforshort-termreceivableswhentherecognitionofinterestwouldbeimmaterial.
(c)Impairmentoffinancialassets
Financial assets areassessed for indicators of impairment at theendof each reportingperiod.Financialassetsareimpairedwherethereisobjectiveevidencethat,asaresultofoneormoreeventsthatoccurredaftertheinitialrecognitionofthefinancialasset,theestimatedfuturecashflowsoftheinvestmenthavebeenimpacted.
Objective evidence of impairmentcouldinclude: l significantfinancialdifficultyoftheissuerorcounterparty;or l defaultordelinquencyininterestorprincipalpayments;or l itbecomingprobablethattheborrowerwillenterbankruptcyorfinancialre-organization.
Forfinancialassetscarriedatamortizedcost, theamountof the impairment isthedifferencebetweentheasset’scarryingamountand thepresentvalueofestimated futurecashflows,discountedat thefinancialasset’s original effective interest rate.
43TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
1. sIGnIfICanT aCCoUnTInG PolICIes (Continued)
financial instruments (continued)
Thecarryingamountofthefinancialassetisreducedbytheimpairmentlossdirectlyforallfinancialassetswiththeexceptionoftradereceivables,wherethecarryingamountisreducedthroughtheuseofanallowanceaccount.
Whenatradereceivableisconsidereduncollectable, it iswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainsttheallowanceaccount.Changesinthecarryingamountoftheallowanceaccountarerecognizedinprofitorloss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease canbe related objectively to an event occurring after the impairment was recognized, the previouslyrecognizedimpairmentlossisreversedthroughprofitorlosstotheextentthatthecarryingamountoftheinvestmentatthedatetheimpairmentisreverseddoesnotexceedwhattheamortizedcostwouldhavebeenhadtheimpairmentnotbeenrecognized.
(d)Derecognitionoffinancialassets
TheAuthorityderecognizesafinancialassetonlywhenthecontractualrightstothecashflowsfromtheassetexpire;orittransfersthefinancialassetandsubstantiallyalltherisksandrewardsofownershipoftheassettoanotherentity.IftheAuthorityneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipandcontinuestocontrolthetransferredasset,itrecognizesitsretainedinterestintheassetandanassociatedliabilityforamountsitmayhavetopay.IftheAuthorityretainssubstantiallyall the risks and rewards of ownership of a transferred financial asset, theAuthority continues torecognizethefinancialassetandalsorecognizesacollateralizedborrowingfortheproceedsreceived.
available for sale Investments
Available-forsale Investmentsare those intended tobeheld foran Indefiniteperiodof time,whichmaybesoldinresponsetoneedsforliquidityorchangesininterestrates,exchanqerates,orequityprices.TheAuthority classifies equity investments, other than those acquired for trading purposesasavailable-for-sale.An investment inquotedsharesofTwigaCementCompanyLimitedhasbeenclassifiedasavailableforsalefinancialassets.
Cash and Cash equivalents
Cashandcashequivalentsinthestatementoffinancialpositioncomprisecashatbankandinhandandshorttermdepositswithmaturityofthreemonthsorless.ForpurposeofcashfIowstatement,cashandcashequivalentsconsistsofcashandcashequivalentasdefinedabove,netofoutstandingbankoverdrafts.
Provisions
ProvisionsarerecognisedwhentheAuthorityhasapresentobligation(legalorconstructive)asaresultofapasteventinwhichitisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.Wherediscountingisused,theincreaseinprovisionduetopassageoftimeisrecognisedasaborrowingcost.
44 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
1. sIGnIfICanT aCCoUnTInG PolICIes (Continued)
Pensions and other post-employment benefits
TheAuthoritycontributestoadefinedcontributionsplanandadefinedbenefitplan.
(i) Pension obligations
Underthedefinedcontributionplan,theAuthority’semployeesaremembersofstateownedpensionschemes,thePublicServicePensionFund(PSPF)andNationalSocialSecurityFund(NSSF).TheAuthoritycontributestotheschemes15%and10%ofgrosssalaryforeachemployee,andemployeecontributes5%and10%respectively.TheAuthority’scontributionstothefundarechargedtotheprofitorlossinmeperiodinwhichtheyrelate.
(ii) Shorttermbenefits
Thecostofallshorttermemployeebenefitssuchassalaries,employee’sentitlementstoleavepay,medicalaids,longserviceaward,andothercontributionsetcarerecognisedduringtheperiodinwhichtheemployeerendersrelatedservices.
(iii) Terminalbenefits
TerminationbenefitsarepayablewhenemploymentisterminatedbytheAuthoritybeforethenormalretirement date or whenever an employee accepts voluntary redundancy in exchange for thesebenefits.TheAuthority recognises terminationbenefitswhen it isdemonstrablycommitted toeitherterminatingtheemploymentofcurrentemployeesaccordingtoadetailedformalplanwithoutpossibilityofwithdrawal,orprovidingterminationbenefitsasaresultofanoffermadetoencouragevoluntaryredundancy. Benefits falling due more than twelve months after reporting date are discounted topresentvalue.
(iv)Gratuitybenefits
TheAuthorityprovidesgratuitybenefitstoitscontractemployee’spayableonexpiryofthecontract.TheAuthoritycontributes25%ofthebasicsalarytowardsthatfund.Gratuityischangedtoprofitorlossduringtheperiodinwhichtheemployeerendersrelatedservices.
Value added Tax (VaT)
TheAuthoritybeinggovernmentdepartmentisnotregisteredforValueAddedTax(VAT).NoVATischargedforall invoicesraisedbytheAuthority.VAT incurredonapurchaseofassetsandservicesisnot recoverableandare therefore recognisedaspartof thecostofassetpurchasedorexpenseincurred.
Trade and other payables
Tradeandotherpayablesarestatedattheirnorninalvalue.Tradepayablesarenon-interestbearingandarenormallysettledbetween15to30dayswhenthecompanycollectspremiumsfromcustomers.
45TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
2. CRITICal aCCoUnTInG JUDGeMenTs anD KeY soURCes of esTIMaTIon UnCeRTaInITIes
ThepreparationoffinancialstatementsinconformitywithInternationalFinancialReportingStandardsrequirestheuseofcertaincriticalaccountingestimates.Italsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingtheauthority’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatementsaredisclosedbelow.
(i) Impairment provision
Management carries out a regular review of the status of trade receivables, inventories and otherfinancial assets to determine whether there is any indication that these assets have suffered anyimpairmentloss.Ifanysuchindicationexists,therecoverableamountoftheassetisestimatedinordertodetermine theextentof impairment loss,which is thendealtwith inprofitor loss. Indeterminingwhetheranimpairmentlossshouldberecognizedintheprofitorloss,managementcheckswhetherthere is objective evidence that the assets are impaired and that the fair values have declined.Managementestimatesof the requiredprovisionsarebasedoncriticalevaluationof theeconomiccircumstancesinvolved,historicalexperienceandotherfactorsthatareconsideredtoberelevant.
(ii) Property and equipment, and intangible assets
Managementreviewstheusefullivesandresidualvaluesoftheitemsofproperty,andequipmentandintangibleassetsonaregularbasis.Duringthefinancialyear,thedirectorsdeterminednosignificantchangesintheusefullivesandresidualvalues.
3. fInanCIal RIsK. ManaGeMenT
Theauthority’sactivitiesexposeittoavarietyoffinancialrlsks,includingcreditrisk,foreigncurrencyexchangeratesand interest rates.TheAuthority’soverall riskmanagementprogrammefocusesontheunpredtctabllltyoffinancialmarketsandseekstominimisepotentialadverseeffectsonitsfinancialperformancewithintheoptionsavailableinTanzania.RiskmanagementiscarriedoutbytheaccountingunitundertheresponsibilityoftheBoardofDirectors.
Themostimportanttypesofriskare:
l Creditrisk: l Liquidityrisk; l Marketrisk(interestrateriskandexchangeraterisk).
Credit risk management
Credit risk ismanagedonanentity-widebasis.Credit riskarises fromcashandcashequivalents,depositswithbanks,aswellastradeandotherreceivables.TheAuthorityassessesthecreditqualityofeachcustomer,takingintoaccountitsfinancialposition,pastexperienceandotherfactors.
TheAuthority doesnot haveany significant credit risk exposure to any single counterparty or anygroupofcounterpartleshavingsimilarcharacteristics.TheAuthoritydefinescounterpartiesashavingsimilarCharacteristicsiftheyarerelatedentities.Thecreditriskonliquidfundsandderivativefinancialinstrumentsislimitedbecausethecounterpartiesarebanks.
46 TCAA Annual Report June 2011
TANZANIACIVilAVIATIONAUTHORITY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
3. fInanCIal RIsK ManaGeMenT (ConTInUeD)
Credit risk management (Continued)
TheamountthatbestrepresentstheAuthority’smaximumexposuretocreditriskat30Junewithouttakingaccountofthevalueofanycollateralobtainedwas:
2011 2010 TZs ‘000 TZs ‘000
Tradeandotherreceivables 3,624,476 2,932,193Term deposits 4,394,608 7,287,926Cashatbankandinhand 3,488,434 4,071,599
11,507,518 14,291,718
Thecustomersunderthefullyperformingcategoryarepayingtheirdebtsastheycontinuetrading.Thedefaultrateislow.
Thedebtthatisoverdueisnotimpairedandcontinuestobepaid.Thefinancedepartmentisactivelyfollowingthisdebt.
Thedebtthatisimpairedhasbeenfullyprovidedfor.However,managementisactivelyfollowinguprecoveryoftheimpaireddebtThemovementintheprovisionforbadanddoubtfuldebtsisassetoutbelow:
2011 2010 TZs ‘000 TZs ‘000
Atthebeginningoftheyear 1,053,010 964,538Provisionfortheyear 144,828 88,472
Attheendoftheyear 1,197,838 1,053,010
Indeterminingtherecoverabilityofatradereceivable,theauthorityconsidersanychangeinthecreditqualityofthetradereceivablefromthedatecreditwasinitiallygranteduptothereportingdate.Thedirectorsbelievethatthereisnofurtherprovisionrequiredinexcessoftheallowancefordoubtfuldebtsalreadyrecognised.
Fair value of financial assets and liabilities
TheAuthorityonlyhastheavailableforsaleinvestmentearnedatfairvalue.Thesearegroupedintolevel1asperclassificationbelow:
i) Level 1 fair valuemeasurements are those derived fromquoted prices (unadjusted) in activemarketsforidenticalassetsorliabilities;
ii) Level2fairvaluemeasurementsarethosederivedfrominputsotherthanquotedpricesincludedwithinlevel1thatareobservablefortheassetorliability,eitherdirectly(i.e.asaprice)orindirectly(i.e,derivedfromprices);and
iii) Level3fairvaluemeasurementsarethosederivedfromvaluationtechniquesthatincludeinputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs).
liquidity risk management
This is monitored on a daily basis by the finance manager by monitoring of cash forecasts inconsiderationofmaturingliabilitiesandassets.
47TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
3. fInanCIal RIsK ManaGeMenT (ConTInUeD)
liquidity risk management (Continued)
Maturityanalysisforfinancialliabilitiesshowingtheremainingcontractualmaturities:
1 - 5 5 - 12At30June2011 <1 month months months > 1 year Total TZs’000 TZs’000 TZs’000 TZs’000 TZs’000
Tradeandotherpayables 934,295 1,556,298 - - 2,490,593Borrowings - 1,037,393 - 7,528,491 8,565,884
Total 934,295 2,593,691 - 7,528,491 11,056,477
At30June2010
Tradeandotherpayables 2,009,740 795,695 - - 2,805,435Borrowings - 2,128,847 - 7,967,735 10,096,582
Total 2,009,740 2,924,542 - 7,967,735 12,902,017
Maturityanalysisforfinancialassetsshowingtheremainingcontractualmaturities:
1 - 5 5 - 12 >1At30June2011 <1 month months months > 1 year Total TZs’000 TZs’000 TZs’000 TZs’000 TZs’000
Availableforsaleinvestments - - - 14,261 14,261Tradereceivables 980,103 2,454,073 - - 3,434,176Termdeposits - 2,760,540 1,259,787 374,281 4,394,608Cashandbankbalances 3,488,434 - - - 3,488,434
Total 4,468,537 5,214,613 1,259,787 388,542 11,331,479
At30June2010
Availableforsaleinvestments - - - 13,073 13,073Tradereceivables 599,678 2,332,515 - - 2,932,193Termdeposits - 5,432,727 1,500,694 354,505 7,287,926Cashandbankbalances 4,071,599 - - - 4,071,599
Total 4,671,277 7,765,242 1,500,694 367,578 14,304,791
Market risk management
Theauthority’sactivitiesexposeIttothefinancialriskofchangesinforeigncurrencyexchangeratesand interest rates.
foreign currency risk management
TheAuthority’s costs and expenses are principally incurred in Tanzanian Shillings (TZS) and USDollars(US$).TheAuthoritydoesnotenterintoformalhedgingtransactionstomanageitsexposuretoforeignexchangeratefluctuations.VolatilityintheexchangerateofUS$againstTZSwouldmaketheAuthority’scostsandresultslesspredictablethanwhenexchangeratesaremorestable.
48 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
3. fInanCIal RIsK ManaGeMenT (ConTInUeD)
Market risk management (Continued)
ThecarryinqamountsoftheAuthority’srnaterialforeigncurrencydenominatedmonetaryassetsandliabilitiesthatwillhaveanimpactonprofitorlosswhenexchangerateschangeasat30June2011areasfollows:
UsD eUR Total TZs’000 TZs’000 TZs’000
Tradereceivables 3,020,776 - 3,020,776
Cashandcashequivalents 4.440.499 374,281 4,814,780
Tradepayables (1,193,583) - (1,193,583)
Openposition 6,267,692 374,281 6,641,973
ThecarryingamountsofttleAuthority’smaterialforeigncurrencydenominatedmonetaryassetsandliabilitiesthathaveanimpactonprofitorlosswhenexchangerateschange,asat30June2010wereasfollows:
UsD eUR Total TZs’000 TZs’000 TZs’000
Tradereceivables 2,145,720 - 2,145,720
Cashandcashequivalents 8,404,823 354,505 8,759,328
Tradepayables (1,359,735) - (1,359,735)
Openposition 9,190,808 354,505 8,545,313
Foreigncurrencysensitivityanalysis
At30June2011,iftheTZShadweakened/strengthenedby5%againsttheUS$andEurowithallothervariablesheldconstant,theimpactonsurplusfortheyearwouldhavebeenTZS332,099,650(2010:TZS477,265,850)higher/lower.
Interest rate risk management
Theauthorityisexposedtointerestrateriskasitborrowsfundsatbothfixedandfloatinginterestrates.Theriskismanagedbyaclosemanagementmonitoringcontrol,TheAuthority’sexposurestointerestratesonfinancialassetsandfinancialliabililiesaredetailedintheliquidityriskmanagementsection.
49TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
3. fInanCIal RIsK ManaGeMenT (ConTInUeD)
Market risk management (Continued)
Interestratesensitivityanalysis:
At30June2011,Iftheinterestratehadincreased/loweredby5%withallothervariablesheldconstant,the impactonsurplusfor theyearwouldhavebeenTZS428,294,216(2010:TZS504,831,613)higher/lower.
financial Instrument categorization
30 June 2011 financial liabilities carried at Non financial loans and amortized liabilities or receivables costs assets equity Total TZs’000 TZs’000 TZs’000 TZs’000 TZs’000
asseTs non Current assets Property,plantandequipment - - 25,484,619 - 25,484,619Intangibleasset - - 133,482 - 133,482
Current assets Availableforsaleinvestment 14,262 14,262Inventories - - 1,238,705 - 1,238,705Tradeandotherreceivables 3,434,176 - 607,317 - 4,041,493Termdeposits 4,394,608 - - - 4,394,608Bankandcashbalances 3,488,434 - - - 3,488,434 11,331,480 - 27,464,123 - 38,795,603
eQUITY anD lIabIlITIesCapital and Reserves Capitalfund - - - 6,694,229 6,694,229Investmentrevaluationreserves - - - 11,030 11,030Accumulatedsurplus - - - 20,703,753 20,703,753
non current liabilitiesBorrowings - 7,528,491 - - 7,528,491
Current liabilities Fundsheldforspecialprojects - - 330,114 - 330,114Tradeandotherpayables - 2,490,593 - - 2,490,593Borrowings - 1,037,393 - - 1,037,393
- 11,056,477 330,114 27,409,012 38,795,603
50 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
3. fInanCIal RIsK ManaGeMenT (ConTInUeD)
financial instrument categorization (continued)
30 June 2011 financial liabilities carried at Non financial loans and amortized liabilities or receivables costs assets equity Total TZs’000 TZs’000 TZs’000 TZs’000 TZs’000
asseTs non Current assets Property,plantandequipment - - 23,468,754 - 23,468,754Intangibleasset - - 422,630 - 422,630
Current assets Availableforsaleinvestment 13,073 - - - 13,073Inventories - - 403,468 - 403,468Tradeandotherreceivables 2,932,193 - 432,548 - 3,364,741Termdeposits 7,287,926 - - - 7,287,926Bankandcashbalances 4,071,599 - - - 4,071,599 14,304,791 - 27,727,400 - 39,032,191
eQUITY anD lIabIlITIesCapital and Reserves Capitalfund - - - 6,694,229 6,694,229Investmentrevaluationreserves - - - 9,842 9,842Accumulatedsurplus - - - 19,095,989 19,095,989
non current liabilitiesBorrowings - 7,967,735 - - 7,967,735
Current liabilities Fundsheldforspecialprojects - - 330,114 - 330,114Tradeandotherpayables - 2,805,435 - - 2,805,435Borrowings - 2,128,847 - - 2,128,847
- 12,902,017 330,114 25,800,060 39,032,191
51TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
2011 2010 TZs ‘000 TZs ‘000
4. ReVenUe
AirNavigationServices 12,279,032 10,005,178 SafetyFee 7,710,351 6,495,994 LandingandParklngServices 2,400,453 1,821,678 AirServiceLicensing 1,232,147 1,005,764 AirworthinessCertification 380,269 298,154 FlightOperationFees 143,997 198,665 Students’Fees 173,912 147,796 PersonnelLicensing 146,611 131,727 AdministrationFees 115,388 75,423 AirportServiceCertification 48,662 48,505 FlightSafetyDocuments 2,495 4,551 AlPLogBookSales 13,757 4,344
TOTAL 24.647,074 20,237,779 Less:SharerevenueduetoTanzaniaMeteorologicalAgency (TMA)17.5%Airnavigationfees (2,149,990) -’1,750.906.
NetRevenuefromoperatingactivities 22,497,084 18,486,873
*Revenue sharing Ratio Landing and Parking services amount is net amount receivable from TanzaniaAirportAuthority
(TAA).AirNavigationandLandingchargessharingratiois82.5%,0%,17.5%and30%,60%,10%forTCAA,TAA,andTMA respectively.TCAAcollectsanddistributes theAirNavigationServicesrevenueinthegivenratios.
52 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
2011 2010 TZs ‘000 TZs ‘000 5. oPeRaTInG anD aDMInIsTRaTIVe CosTs Depreciationandamortization 2,252,667 1,618,812 Seminarsandconferences-Localandabroad 1,048,631 821,767 Otheradministrativecosts(Note6) 989.412 805,878 Repairandmaintenancecosts 843,048 1,866,473 Cleaning,officesundries,waterandelectricity 806,425 810,894 Trainingcosts-Localandabroad 795,740 1,077,173 Inspection,safetyoversightandaccidentinvestigation 736,579 573,978 SADCandCASSOAcosts 710,620 832,486 Motorvehiclefuels,insuranceandparkingfees 558,110 452,711 Telephoneandleasedcircuitcharges 501,222 647,134 Printing,stationery,advertisementandpublicity 452,959 396,734 Regionalandtendermeetings 356,105 197,001 Officerent 238,940 187,266 Transfer&ReliefDuties 215,163 112,335 Computersupplies 198,992 184.866 Consumerconsultativecouncilcosts 172,526 165,767 Securitycharges 153,322 163,496 lATACommissions 144,092 127,504 Allowancesfordoubtfuldebts 144,828 90,957 Postage,faxandemail 117,242 155,080 ISO9000certification 111,278 116,617 Bankcharges 94,486 88,761 ICAD&familyday 83,059 121,102 Publicityandpromotionalcosts 59,006 114,794 Consultancyfees 24,515 68,547 Airportcharges - - Foreignexchangegain (18,748) (1,067,966) 11,790,219 10,730,167
6. oTHeR aDMInIsTRaTIVe CosTs
WorkersCouncil 137,555 72,057 BoardofDirectors 121,855 84,740 Strategic,Business&BudgetPreparation 108,460 87,616 AuditFees 93,535 83,896 TugheExpenses 84,379 83,360 CATCOtherRunningExpenses 70,705 46,872 CATCTeachingAllowance 57,240 61,164 MedicalExpenses 53,477 24,043 PublicationsNewspapers&Periodicals 52,956 39,757 Computersoftwaremaintenance 49,368 20,780 ICAO&OtherMembershipContribution 38,141 94,092 MCTExpenses 32,307 27,664 GovernmentHospitality 23,977 15,715 CATCStudentAllowances 21,445 12,453 Auditteamexpenses 19,077 18,100 Donation&SocialResponsibility 13,361 15,524 BenchMarking&CashinTransit 11,574 13,436 Search&Rescue - 4,609 989,412 805,878
53TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
2011 2010 TZs ‘000 TZs ‘000
7. sTaff CosTs Salaries 6,061,914 4,394,392 Otherstaffcosts(note10) 860,570 729,947 Gratuityexpense 523,380 391,356 PublicServicePensionFundcontributions 500,694 365,607 Leavepassage 388,732 359,073 Overtime 309,044 290,612 NationalSocialSecurityFundcontributions 228,549 149,020 Healthinsurancecontribution 173,941 138,634 Staffretirement 82,903 28,103 Total 9,129,727 6,846,744
8. InTeResT eXPense Interestonborrowings 221,132 -
TheAuthoritycapitalizedinterestfromborrowingsamountingtoTZS204.402million(2010:TZS433million)inaccordancetoIAS23-Borrowingcosts(Revised).Thestandardpermitsentitiestocapitalizeborrowingcostsonqualifyingassetsuntilthoseassetsarecommissioned.InterestexpenseincurredaftercommissioningofAviationHousehasbeenchargedtoprofitofloss.
2011 2010 TZs ‘000 TZs ‘000
9. sURPlUs foR THe YeaR Surplusofincomeoverexpenditureisstatedundercharging: Depreciationandamortization 2,254,976 1,618,813 Auditcommitteeexpenses 25,370 18,100 Boardofdirectors’meetingsexpenses 121,855 84,740 ConsumerConsultativeCouncilsupport 160,229 165,767
10. oTHeR sTaff CosTs Mealallowance 203,386 116,928 Shiftallowance 118,023 100,841 Inspectorsallowance 113,000 216,000 Staffuniform 74,108 660 Staffrecruitment 70,893 91,343 Furnitureallowance 64,500 10,500 Actingallowance 48,635 27,895 Transportallowance 46,803 44,842 CasualLabour&wages 38,335 33,233 Houseallowance 38,095 54,569 Deathandcondolences 25,644 16,03 Outfitallowance 9,900 15,600 Cashintransitallowance 9,249 - Marriageallowance - 1,500
Total 860,571 729,947
54 TCAA Annual Report June 2011
TANZA
NIACIVILAVIATIONAUTH
ORlT
Y
NOTE
STOTHEFINANCIALSTATE
ME
NTS
(CO
NTI
NU
ED
)
11.
PRo
PeR
TY a
nD
eQ
UIP
Men
T
furn
iture
O
ffice
M
otor
Te
leco
m&
an
d
Offi
ce
Wor
k in
bu
ildin
g ve
hicl
es
Nav
aid
fittin
gs
Com
pute
r Eq
uipm
ent
prog
ress
To
tal
TZs
‘000
TZ
s ‘0
00
TZs
‘000
TZ
s ‘0
00
TZs
‘000
TZ
s ‘0
00
TZs
‘000
TZ
s ‘0
00
Cos
t
At1July2009
1,489,271
1,270,036
9,614,105
892,362
1,406,729
1,049,961
6,020,454
21,742,918
Additions
129,025
147,260
3,581,588
69,755
159,422
105,659
5,959,171
10,151,880
At30June2010
1,618,296
1,417,296
13,195,693
962,117
1,566,151
1,155,620
11,979,625
31,894,798
At1July2010
1,618,296
1,417,296
13,195,693
962,117
1,566,151
1,155,620
11,979,625
31,894,798
Additions
2,092,597
175,995
1,349,579
72,266
215,583
73,365
-3,979,385
Transfers
9,656,437
-437,584
277,220
-1,608,384
(11,979,625)
-
At30June2011
13,367,330
1,593,291
14,982,856
1,311,603
1,781,734
2,837,369
-35,874,183
D
epre
ciat
ion:
At1July2009
438,238
808,324
3,809,116
387,321
962,130
604,559
-7,009,688
Chargefortheyear
63,132
184,759
733,166
92,007
192,343
150,949
-1,416,356
At30June2010
501,370
993,083
4,542,282
479,328
1,154,473
755,508
-8,426,044
At1July2010
501,370
993,083
4,542,282
479,328
1,154,473
755,508
8,426,044
Chargefortheyear
217,362
298,125
1,001,991
108,078
163,416
174,547
-1,963,519
At30June2.011
718,732
1,291,208
5,544,273
587,406
1,317,889
930,055
-10,389,563
NBV30June2010
1,116,926
424,213
8,653,411
482,789
411,678
400,112
11,979,625
23,468,754
NBV30June201112,648,598
302,083
9,438,583
724,197
463,845
1,907,314
-25,484,620
55TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
2011 2010 TZs ‘000 TZs ‘000 12. InTanGIble asseTs
software Costs
CosT
At1July 1,143,879 979,713
Additions - 164,166
At30June 1,143,879 1,143,879
aMoRTIZaTIon
At1July (721,249) (518,792)
Chargefortheyear (289,147) (202,457)
At30June (1,010,396) (721,249)
neT booK ValUe
At30June 133,483 422,630
13. aVaIlable foR sale InVesTMenT
At1July 13,073 11,587 Effectsofchangesinfairvalue 1,188 1,486
14,261 13,073
Availableforsaleinvestmentsrepresent7,428equitysharesofTwigaPortlandCementCompanyLtdpurchasedduringtheInitialPublicOfferingatacostofTZS435pershare.
Duringtheyear, theAuthorityearneddividends incomefromthesharesamountingtoTZS945,258(2010;TZS965,640).
2011 2010 TZs ‘000 TZs ‘000 14. InVenToRY
Maintenanceandtechnicalsupplies 1,032,598 213,078 Stationery 206,108 140,514 Consumablesupplies - 49,876
1,238,706 403,468
56 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
2011 2010 TZs ‘000 TZs ‘000 15. TRaDe anD oTHeR ReCeIVables Tradereceivables 3,361,320 2,817,919 Staffreceivables 99,810 104,466 Duefromrelatedparties(Note24) 1,141,096 1,016,052 Otherreceivables 204,505 46,766 4,806,731 3,985,203 Allowancefordoubtfuldebts (1,197,838) (1,053,010)
3,608,893 2,932,193
16. TeRM DePosITs Bankdepositsmaturingwithin3months(Note17) 2,760,540 5,432,727 Restrictedfund* 374,281 354,505 Bankdepositsmaturingafter3months 1,259,787 1,500,694
4,394,608 7,287,926
*RestrictedfundsrelatedtofundsreceivedfromICAO(Note20),whicharenotsubjecttouseuntiltheproject starts.
Termbankdepositsrepresenttheamountsinvestedinfixeddepositswithcommercialbanksforfixedtermswithanaverageinterestrateof3.7%.(2010;4%).
17. CasH anD CasH eQUIValenTs
Forthepurposeofthecashflowstatement,cashandcashequivalentscomprisethefollowing:
2011 2010 TZs ‘000 TZs ‘000
TermDeposits-maturingwithin3months(Note16) 2,760,540 5,432,727 Cashandbankbalances 3,488,434 4,071,599
6,248,974 9,504,326
57TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
18. CaPITal fUnD
BytheprovisionscontainedintheCivilAviationAct(Act10,)2003,allmovableandimmovablepropertieswhich immediatelybeforethecommencementof theActwerevested in theformerTC,establishedunderExecutiveAgenciesAct.No.3of1997,vestedintheTanzaniaCivilAviationAuthoritysubjecttoallinterests,liabilities,charges,obligationsandtrustsaffectIngthosepropertsConsequently.thecapitalfund representspartof thenetassetsand liabilities then identifiedand takenoverby theAuthorityafter transferring residential buildings toTanzaniaBuildingAgency in July 2003 and adjustment ofoverstated trade receivables.
19. aCCUMUlaTeD sURPlUs
TheCivilAviationActNo10of2003,whichhasbeenconsolidatedwiththeCivilAviationActof1977andnowcitedastheCivilAviationActCap80of2006.TheActrequirestheAuthoritytodepositsurplusincometoaspecialaccountandusethosefundsforspecificindustrydeveloprnetpurposesandthatsection48(1)requirestheAuthoritytoestablishandcontributetowardsatrainingfund.Asat30June2011;theAccumulatedSurplushadatotalbalanceofTZS20,271,155,000(2010:TZS18,663,391,000}.Thisaccumutatedsurplusisrepresentedbyfixeddeposits,TrainingPilotsandAircraftMaintenanceEngineersandcapitalinvestmentsoftheAuthority.
20. boRRoWInGs
Theborrowingsareanalysedasfollows:
2011 2010 TZs ‘000 TZs ‘000
non Current Portion LongtermloanfromTreasury 925,044 1,958,193 LongtermloanfromCommercialBankofAfrica 6,603,447 6,009,542
7,528,491 7,967,735
Current Portion LongtermloanfromCommercialBankofAfrica 427,393 1,518,847 LongtermloanfromTreasury 610,000 610,000
1,037,393 2,128,847
Total borrowings 8,565,884 10,096,582
Detailsoftheborrowingsareasfollows:
(i) long term loan from Treasury
TheGovernmentofUnitedRepublicofTanzaniaobtaineda loanofEuro4,650,000fromEuropeanInvestmentBank towards improvement of theAirTrafficEquipment at the J.Nyerere InternationalAirport.SubsequentlytheGovernmententeredintoalendingagreementwiththethenTanzaniaCivilAviationAuthority.Theamount lentwasfreeof interest.Oneofthetermsandconditionsof lendingagreementwastheconversionofthefacilityinTanzanianShillingsusingBankofTanzaniaexchangerateapplicableinthedateofreceivingtheloan.TheconvertedloanamountedtoTZS4,391,580,903.
TheAuthorityhasbeenrepayingtheloaneveryyearwiththeloanexpectedtobefullyrepaidbyJuly2013.Asof30June2011TZS1,037,393,000,becamecurrentandnasbeendisclosedaspart ofcurrentliabilityinthestatementoffinancialposition.
(ii) long term from Commercial bank of africa
TheAuthorityhasaborrowingfacilityfromCommercialBankofAfricaforTZS6.25billionrepayableinfiveyears towards theconstructionofTCAAHeadquartersat the interestof7%perannum.Thedrawdownasat30June2011wasUS$5,400,000,whichisequivalenttoTZS7,523,874,000.
58 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
20. boRRoWInGs (Continued)
(iii) short term loan from Commercial bank of africa
TheAuthorityinJuly2010,borrowedShortTermLoanfromCommercialBankofAfrica
USD1,000,000whichwasequivalenttoTZ.S1,509,000,000topaymaturingAviationHouseobligationsfromMainContractorandSubcontractors.TheShortTermFacilitywasrepaidbyNovember2010asagreed.
21. eMPloYee benefITs
(i) Retirement Benefits
TheAuthoritycontributestoapensionschemadministeredbythePublicServicePensionFund(PSPF)and a scheme administered by the National Social Security Fund (NSSF) depending on terms ofemployment.
Inaddition,theAuthorityhasanendowmentschemeadministeredbyavoluntaryagreementbetweenmanagementandTUGHEasprovidedforinthestaffbenefitpackagetoprovideretirementbenefitstoemployeesreachingretirementage.Theretiredemployeeispaidinmaterialormonetaryequivalenttothematerialbasedonthelengthofservice
Thecostof theendowmentschemeand the retirementagebenefitsare fullymetby theAuthority.Contributionstothesefundsarerecognisedasanexpenseintheperiodtheemployeesrendertherelated services.
(ii) Termination Benefits
Termination benefits are payable whenever an employee’s employment is terminated before thenormalretirementdateorwheneveranemployeeacceptsvoluntaryredundancyinexchangeofthesebenefits. .
TheAuthority recognises termination benefits when it is constructively obliged to either terminatethe employment or the current employees according to detailed formal plan without possibility ofwithdrawalortoprovideterminationbenefitsasaresultofanoffertoencouragevoluntaryredundancy.TheexpenserecognisedbytheAuthorityduringtheyearwasasfollows:
2011 2010 TZs ‘000 TZs ‘000
EndowmentScheme(Staffretirementbenefits) 82,903 28,103 PublicServicePensionFund 500,694 365,607 NationalSocialSecurityFund 228,549 149,020 Gratuityforcontractstaff 523,380 391,356
Total 1,335,526 934,086
59TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
21. eMPloYee benefITs (Continued)
(iii) Provision for Gratuity. contract staff
Under the contract of employment theAuthority contributes to Public Service Pension Fund andNationalSocialSecurityFundforfutureretirementbenefitforitsemployees.However,theAuthoritychargesgratUityexpenseinprofitorlossandmaintainsgratuitypayableaccountforfuturepaymenttocontractstaff.Gratuityrelatestolongserviceawardtoemployeesandiscomputedat25%oftheemployees’basicsalary.Themovementintheprovisionforgratuitywasasfollows:
2011 2010 TZs ‘000 TZs ‘000 At1July 795,695 624,567 Chargefortheyear 523,380 391,356 Releasedduringtheyear (405,860) (220,228) Balanceat30June 913,215 795,695
22. fUnDs HelD foR sPeCIal PRoJeCT
TheAuthority receivedEuro188,852,whichwasequivalent toTZS330.113,978on30September2006fromInternationalCivilAviationOrganization(ICAO)inrespectofintegrationandharmonisationoftheEastAfricanSafetyOversightProject.Asattheendofthereportingperiod,theprojecthasnotcommencedandthefundsareheldinaseparatefixeddepositaccountuntilthetimeofimplementationoftheproject.
23. TRaDe anD oTHeR PaYables
2011 2010 TZs ‘000 TZs ‘000 Tradepayables 1,554,026 1,958,811 Otherpayables 23,351 50,929
1,577,377 2,009,740
24. RelaTeD PaRTY TRansaCTIons anD balanCes
TanzaniaCivilAviationAuthority isabodycorporateestablishedon1November2003LinderCivilAviationAct No. 10 of 2003. TheAuthority is 100% owned byGovernment of United Republic ofTanzaniathroughtheTreasuryRegistrar.
DuringtheyeartheAuthoritydidnothavesignificanttransactionswithrelatedparties:
Duefromrelatedparty 2011 2010 TZs ‘000 TZs ‘000 TanzaniaAirportAuthority 585,414 490,035 AirTanzaniaCompanyLimited 502,703 71,734 MinistryofInfrastructureandDevelopment* 52,446 448,446 GovernmentFlightAgency 533 5,837
1,141,096 1,016,052
*TheamountduefromMinistryofInfrastructureDevelopmentrelatetoexpensespaidbytheAuthorityontheirbehalfandhasbeenfullyprovidedfor.DuringtheyeartheAuthoritywasadvisedtotransferTZS396millionfromMinistryofTransporttoAirTanzaniaCompanyLimited.
60 TCAA Annual Report June 2011
TANZANIACIVILAVIATIONAUTHORlTY
NOTESTOTHEFINANCIALSTATEMENTS(CONTINUED)
24. RelaTeD PaRTY TRansaCTIons anD balanCes (Continued)
Key management personnel
Key management personnel are those persons having authority and responsibility for planning,directingandcontrollingtheactivitiesoftheAuthority,directlyorindirectly.KeymanagementpersonnelhavebeendefinedastheexecutivedirectorsoftheAuthority,andmembersoftheAuthority’sseniormanagement.
Compensation relating to key management personnel
Theremunerationofdirectorsandothermembersofkeymanagementduringtheyearwerefollows:
2011 2010 TZs ‘000 TZs ‘000
Shorttermbenefits 590,470 571,574
25. CaPITal CoMMITMenTs
Asat30June2011theAuthorityhadatotalcapitalcommitmentsamountingtoTZS2,450,450,000forconstructionoftheAuthority’sHeadOfficebuildinginDaresSalaam,installationofVOR/DMEinMwanza,AirNavigationEquipmentandatJuliusNyerereInternationalAirport-DaresSalaam.
2011 2010 TZs ‘000 TZs ‘000
Approvedbutnotcontractedfor 950,450 1,576,307 Approvedandcontractedfor 1,500,000 4,500,000
Total 2,450,450 6,076,307
26. ConTInGenT lIabIlITIes
TheAuthorityhasapendingcourtcasewherebyformeremployeesaresuingtheAuthorityforunfairdismissal.TheemployeesaredemandingacompensationofTZS40million.Theoutcomeofthecasesdependsoncourtruling.Directorshaveassessedthatnolikelyliabilityisexpectedtooccurandhavemadenoprovisioninthefinancialstatements.
27. UlTIMaTe oWneR of THe aUTHoRITY
TheTanzania CivilAviationAuthority is a body corporate established under TheCivilAviationAct No.10of2003,nowCivilAviationAct,(Cap80)of2006.
TheGovernmentoftheUnitedRepublicofTanzaniaistheultimateowneroftheAuthority.
28. RePoRTInG CURRenCY
ThesefinancialstatementsarepresentedinTanzaniaShillings(TZS‘000).
Director GeneralAviation House, 2nd Floor, Nyerere / Kitunda Road Junction,
P. O. Box 2819, Dar es Salaam, TanzaniaTel: (255) 22 2198100, Fax: (255) 22 2844300 / 2844304,
Email: [email protected], Website: www.tcaa.go.tz
Designed and Printed by:
CI GROUP LTD.