GAZETTE NOTICE NO. 3131

in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 35 of the Public Audit Act, 2015. I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit. 29th March, 2018 THE KENYA GAZETTE Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Public Sector Accounting Standards (IPSAS) Accrual Basis and for such control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 47 of the Public Audit Act, 2015. Auditor-General’s Responsibility My responsibility is to express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 48 of the Public Audit Act, 2015 and submit the audit report in compliance with Article 229 (7) of the Constitution. The audit was conducted in accordance with International Standards of Supreme Audit Institutions. Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my qualified audit opinion. Basis for Qualified Opinion 1. Land Without Title Deeds As similarly reported in 2014/15, the statement of financial positon as at 30th June, 2016, reflects land and building with a net book value of KSh. 9,004,562,000.00 as disclosed in Note 8 (1). Included in the balance of KSh. 9,004,562,000.00 are seventeen (17) parcels of land without title deeds valued at KSh. 378,000,000.00 which were transferred to the Authority by the Government in 1995. Under the circumstances, it has not been possible to confirm ownership status of these seventeen (17) parcels of land and whether property, plant and equipment balance of KSh. 15,631,210,000.00 as at 30 June 2016 is fairly stated. 2. Cash and Bank The cash and bank balance of KSh. 10,052,218,000.00 reflected in the statement of financial position as at 30 June 2016 and disclosed in Note 13 to the financial statements includes cash at hand, cash at bank, fixed deposits and Government Treasury Bills of Kshs.467,000.00, Kshs.275,770,000.00, Kshs.5,008,878,000.70 and Kshs.4,767,104,000.00 respectively. The cash and bank balance of Kshs.10,052,218,000.00 is understated by Kshs.5,593,645.23 as shown below: Books of Accounts (KSh.) Financial Statements (KSh.) Cash and Bank Balances 10,052,218,000.00 Cash-at -Hand 505,073.20 Cash at Bank 281,324,477.33 Fixed Deposits 5,008,878,319.70 Treasury Bills 4,767,103,775.00 10,057,811,645.23 Understated Amounts 5,593,645.23 Consequently, the cash and bank balances of KSh.10,052,218,000.00 reflected in the financial statements cannot be ascertained. 3. Interest Income The interest income balance of KSh. 834,982,000.00 reflected in the statement of financial performance for the year ended 30th June, 2016 differs with the ledger balance of KSh. 824,353,467.10 by KSh. 10,628,532.90. Further, the interest income balance of KSh. 834,982,000.00 excludes interest earned from fixed deposits at National Bank of Kenya Limited whose cash balance at the end of the year on 30 June 2016 was KSh. 61,541,000.50. The difference of KSh.10,628,532 between the interest income ledger balance and the financial statement balance and the exclusion of interest earned on fixed deposit at National Bank of Kenya has not been explained. 4. Miscellaneous Income The statements of financial performance for the year ended 30 June 2016 reflects other income of KSh. 314,901,000 which includes miscellaneous income balance of KSh. 141,113,000.00 as disclosed in Note 4 to the financial statements which however, excludes income generated from sale of revenue stamp collected through the Kenya Revenue Authority main bank account amounting to KSh. 13,541,567.00. Consequently, the miscellaneous income reflected in financial statements is understated by a similar amount. 5. Other Incomes The other income balance of KSh. 314,901,000.00 reflected in the statement of financial performance and disclosed in Note 4 (b) to the financial statement includes rental income of KSh. 28,180,000.00 earned from various rental properties owned by the Authority. Included in the value of property is a property at Wilson Airport whose rent income of KSh. 6,941,523.20 was not included in the property rental income for the year. Therefore the other income balance of KSh 314,901,000.00 is understated by a similar amount. 6. Operating Expenses The operating expenses of KSh. 980,537,000.00 reflected in the statements of financial performance for the year ended 30th June, 2016 includes bank charges expenses of KSh. 101,364,000.00 as disclosed in Note 6 to the financial statements. The bank charges include commission of KSh. 85,694,550.00 charged by commercial banks for rendering revenue collection services as shown below. This is against the provisions of service-level agreements signed between the financial institutions and the Authority that prohibit the imposition of any charges, commission or any other costs by the agent bank for any services rendered to the Authority for the purpose of collection of revenue. Bank Date SLA Signed Commission Charge (KSh.) National Bank 4/8/2014 58,480,400.00 Cooperative Bank 13/10/2014 7,387,350.00 Kenya Commercial Bank (date not indicated) 19,826,800.00 Total 85,694,550.00 No explanation has been provided as to why commercial banks were levying the charges contrary to the signed service-level agreement. 12:43 PM THE KENYA GAZETTE 29th March, 2018 954 7. Maintenance Expenses Maintenance expenses of KSh. 430,052,000.00 reflected in the statement of financial performance for the year and disclosed in Note 7 to the financial statements includes KSh. 149,946,501.00 scanner maintenance expense inclusive of taxes paid to Avic International Limited. The Authority paid Avic International Limited the whole contract sum of KSh. 149,946,501.00 without deducting and retaining withholding tax and value added tax (VAT) of KSh. 18,743,107.00 and Kshs.23,991,178.00 respectively. No explanation has been provided why the Authority failed to withhold and retain taxes amounting to Kshs.42,734,285.00 as required by tax laws and regulations. Qualified Opinion In my opinion, except for the effect of the matters described in the Basis for Qualified Opinion paragraph, the financial statements present fairly, in all material respects, the financial position of Kenya Revenue Authority as at 30 June 2016, and of its financial performance and its cash flows for the year then ended, in accordance with International Public Sector Accounting Standards (Accrual Basis) and comply with the Kenya Revenue Authority Act, Cap 469 of the Laws of Kenya. Other Matter 1. Excise Goods Management System (EGMS) Review of various procurement contracts revealed that the Authority entered into a contract agreement with SICPA Security Solutions SA Prilly to print, supply and deliver security revenue stamps complete with track, trace and an integrated production accounting system over a period of five (5) years at a cost of KSh. 4,552,516,226.00 (Euro 42,471,464.00). However, the following issues have not been explained and thus remain outstanding as at 30th June, 2016. (a) The contract is silent on the ownership of the equipments that have already been delivered at a cost of KSh. 2,372,336,000.00 (Euros 22,130,000.00). As a result, the Authority has not capitalized the cost of the assets into their books. (b) The Authority in its financial statements ended 30 June 2016 has not disclose under trade creditors the outstanding debt of KSh. 770,000,000.00 (Euros 7 million) owed to SICPA for the supply of the equipments as at 30th June, 2016. (c) The Authority maintains an Excise fund account (No. 602030) with Central Bank of Kenya to which revenue from sale of stamps is deposited as per legal notice No.10 of 18 January, 2013. However, the Authority has not disclosed in the financial statements the Excise Fund account balance of KSh. 167,942,772.95 as at 30th June, 2016. (d) The financial statements reflect a balance of KSh. 899,787,000.00 of work in progress in Excise Goods Management System as at 30th June, 2016. Included in the balance is unsupported entry journal voucher No.064 of KSh. 242,880,986.10. The balance of KSh. 899,787,000.00 cannot therefore be ascertained. (e) The procurement of printing, supply and delivery of security revenue stamps complete with track and trace and integrated production accounting system from SICPA Security Solutions SA Prilly for KSh. 4,552,516,226.00 was single sourced without any justification. This is contrary to the Public Procurement and Disposal Act, 2015 and the Authority therefore may not have received value-for-money on the contract. 2. Capital/Development Grants Examination of KRA records established that the Authority received from the National Treasury KSh. 1,254,930,000.00 as development budget support against an approved budgetary request of KSh. 1,090,930,000.00 for the projects listed below. The excess receipts amounting to KSh.164,000,000.00 have not been supported by either a supplementary budget or request from the Authority and it is not clear therefore why KSh.164,000,000.00 was issued to the Authority and the projects it intended to finance. Further it is observed that the financial statement do not disclose the changes between the original and final budget contrary to IPSAS 24:29 that requires such a disclosure. KSh. Receipts from National Treasury 1,254,930,000.00 Projects Approved Initial Budget (KSh.) Revised Budget (KSh.) Real Estate 55,000,000.00 55,000,000.00 ERP Systems 100,000,000.00 100,000,000.00 Co-ordinated Boarder Control 374,270,000.00 374,270,000.00 Alternate Data Centre 160,000,000.00 160,000,000.00 KESRA Modernization 66,660,000.00 66,660,000.00 Itax Rollout and Taxpayer Support 125,000,000.00 125,000,000.00 Customer Relationship Management 130,000,000.00 130,000,000.00 Motor Vehicles 80,000,000.00 80,000,000.00 1,090,930,000.00 Receipts over and above the Budget 164,000,000.00 3. Financial Budget The financial budget was prepared on a cash basis of accounting while the financial statements are prepared on accrual basis of accounting. The Authority has not prepared a reconciling statement contrary to paragraph 47 of International Public Sector Accounting Standards 24. Further, as indicated in the table below, it was observed that the Authority reported over expenditures on various items during the year without giving explanations for the material variances. Components Budget Amount (KSh.) Actual Expenditure (KSh.) Variance % age Variances Transport and other Allowances 812,484,000.00 1,345,701,000.00 (533,217,000.00) 66 Training Expenses 68,058,000.00 253,014,000.00 (184,956,000.00) 272 Travelling and Accommodation 713,371,000.00 972,142,000.00 (258,771,000.00) 36 Rent and Rates 315,500,000.00 276,845,000.00 38,655, 000.00 36 Advertisements 145,167,000.00 314,705,000.00 (169,538,000.00) 117 Tax Payer Education 72,698,000.00 110,131,000.00 (37,433,000.00) 51 Office Equipment 30,000,000.00 82,039,000.00 (52,039,000.00) 173 Office Furniture 30,000,000.00 67,455,000.00 (37,455,000.00) 125 Building Repairs 1,372,000.00 225,733,000.00 (224,361,000.00) 16353 Computer Expenses 561,278,000.00 436,418,000.00 124,680,000.00 14 EDWARD R. O. OUKO, Auditor-General. 29th March, 2018 THE KENYA GAZETTE KENYA REVENUE AUTHORITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE, 2016 2015/2016 2014/2015 Note (KSh. ‘000) (KSh. ‘000) REVENUE Revenue from non- exchange transactions 23 136,611 136,611 Deferred grant income amortisation Revenue from exchange transactions Agency Income 3 15,358,009 15,058,009 Commissions Income 4 (a) 1,199,599 911,307 Interest Income 834,982 711,271 Sale of Number Plates - - Other Income 4 (b) 314,901 226,637 TOTAL REVENUE 17,844,102 17,043,835 EXPENDITURE Administrative Expenses 5 15,727,699 14,338,927 Operating Expenses 6 980,537 886,454 Maintenance Expenses 7 430,052 268,191 TOTAL EXPENDITURE 17,138,288 15,493,572 Other gains/(losses) (Loss) / Gain on sale of assets (36,270) 4,243 SURPLUS FOR THE YEAR 669,544 1,554,506 The notes set out hereto form an integral part of the Financial Statements. KENYA REVENUE AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30th JUNE, 2016 2015/2016 2014/2015 Note (KSh. ‘000) (KSh. ‘000) Assets Current Assets Cash and Bank Balances 13 10,052,218 8,701,434 Debtors and Receivables 10 506,549 472,568 10,558,767 9,174,002 Non-Current Assets Property, Plant and Equipment 8 15,631,210 12,607,320 Intangible Assets 9 7,850 59,753 Amount due from Treasury 11 2,131,332 2,123,899 Security Deposits 12 2,333,596 2,257,966 Total Assets 20,103,988 17,048,938 30,662,755 26,222,940 Liabilities Current Liabilities Creditors and Payables 14 2,729,301 2,975,481 Leave Pay and Gratutiy Provisions 15 1,121,430 1,080,434 Deferred Income Amortisation 23 82,085 121,271 3,932,816 4,177,186 Non Current Liabilities Contribution to Govt Pension Fund 16 25,616 26,435 Designated Fund 18 204,949 230,465 Deferred Grants Income 23 — 97,425 230,565 354,325 Total Liabilities 4,163,381 4,531,511 Net Assets 26,499,374 21,691,429 Capital grants by the Treasury 17 17,595,182 13,360,236 Accumulated Fund 4,804,598 4,135,055 Revaluation Reserve 4,099,593 4,196,138 26,499,373 21,691,429 Total net assets and liabilities 30,662,755 26,222,940 The financial statements set out herein were signed on behalf of the Board of Directors by; J. K. Njiraini, MBS Commissioner-General. Dr. Edward Sambili, CBS Chairman. 12:43 PM THE KENYA GAZETTE 29th March, 2018 956 The notes set out hereto form an integral part of the Financial Statements. KENYA REVENUE AUTHORITY STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30th JUNE, 2016 Capital Grants by Accumulated Revaluation Total Treasury Fund Reserve Fund Note (KSh. ‘000) (KSh. ‘000) (KSh. ‘000) (KSh. ‘000) 1st July, 2014 12,948,236 2,580,549 4,292,684 19,821,469 Contribution for the year 411,999 - - 411,999 Charge for the year - - (96,546) (96,546) Surplus for the year - 1,555,199 - 1,555,199 At 30th June, 2015 13,360,236 4,135,748 4,196,139 21,692,122 Prior year adjustment 23 - (693) - (693) 1 July 2015 13,360,235 4,135,054 4,196,139 21,691,428 Prior Period Adjustment 11 — Contribution for the year 17 4,234,947 - - 4,234,947 Charge for the year - - (96,545) (96,545) Surplus for the year - 669,544 - 669,544 At 30th June, 2016 17,595,182 4,804,598 4,099,594 26,499,374 The notes set out hereto form an integral part of the Financial Statements KENYA REVENUE AUTHORITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30th JUNE, 2016 2015/2016 2014/2015 Note (KSh. ‘000) (KSh. ‘000) Cash Flows From Operating Activities Surplus for the year 669,544 1,554,506 Non-cash movements Depreciation 8 1,072,230 830,284 Amortisation 9 63,679 50,284 Increase in Amortisation of Deferred Income 23 (136,611) (136,611) Loss/(Gain) on disposal of Assets 36,270 (4,243) Increase in Security Deposits 12 (75,630) (266,083) Increase in Debtors and receivables (41,415) (5,542) (Decrease) / Increase in Creditors and payables (206,004) 369,695 Net cash flows from operating activities 1,382,063 2,392,290 Cash Flows From Investing Activities Purchase of Property, Plant and Equipment 8 (4,229,434) (1,221,327) Purchase of Intangible Assets (11,776) 6,522 Proceeds from sale of Property, Plant and Equipment 500 - Net cash flows from investing activities (4,240,710) (1,214,805) Cash Flows From Financing Activities Contribution by the Treasury 17 4,234,947 411,999 Decrease in designated Funds 18 (25,516) (10,515) Net cash flows from financing activities 4,209,431 401,484 Net Increase in Cash and Cash Equivalents 1,350,784 1,578,969 Cash and cash equivalents at 1 July 8,701,434 7,122,465 Cash And Cash Equivalents At 30 June 13 10,052,218 8,701,434 The notes set out hereto form an integral part of the Financial Statements. 29th March, 2018 THE KENYA GAZETTE KENYA REVENUE AUTHORITY STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS FOR THE YEAR ENDED 30th JUNE, 2016 Final Actual Performance Budget Comparable Basis Difference 2015/2016 2015/2016 2015/2016 (KSh. ‘000) (KSh. ‘000) (KSh. ‘000) INCOME: Agency fees 15,358,009 15,358,009 - Road Maintenance levy 828,109 903,556 75,447 Sale of Tamper- Proof seals 8,039 13,085 5,047 Petroleum Development levy 27,900 39,334 11,434 NTSA Agency Commission 20,354 7,930 -12,423 Document Processing Fees 44,017 48,960 4,943 Interest income 654,667 834,982 180,315 Transit Toll 11,000 13,353 2,353 Rent receivable 16,984 28,180 11,195 Public Overtime 3,294 5,239 1,944 Institutional houses - rent 64,686 78,325 13,639 Aviation Revenue 82,220 82,439 219 Sugar Levy 34,000 30,865 -3,135 Air Passenger Service charge 150,000 131,403 -18,597 Miscellaneous Income 44,064 131,699 87,635 Deferred Income Amortisation - 136,611 136,611 Total Operational Income 17,347,342 17,843,969 496,627 STAFF COSTS Basic pay 8,671,674 7,403,467 1,268,208 Other Allowances 4,310,721 3,610,738 699,983 Total Staff Salaries and Allowances 12,982,395 11,014,204 1,968,191 Operational Expenses Staff Welfare Expenses 53,651 43,746 9,905 Medical Expenses 603,960 547,553 56,407 Training Expenses 366,558 253,014 113,545 Uniform and Laundry Expenses 191,268 956 190,312 Travel and Accomodation 975,682 971,833 3,849 Transfer Allowance 95,000 75,326 19,675 Utilities Expenses 365,177 357,642 7,535 Building Repairs and maintenance 179,062 225,733 -46,671 Motor Running Expenses 284,657 134,612 150,045 Motor boat running Expenses 18,219 8,512 9,707 Scanner Expenses 380,000 195,806 184,194 Rents and Rates 315,500 276,845 38,655 Computer Expenses 561,278 436,418 124,860 Security Expenses 403,552 384,315 19,237 Insurance Expenses 101,966 75,309 26,657 Advertisements and Public Relations Expenses 226,867 314,705 -87,838 Taxpayers Education 203,673 110,131 93,541 Consultancy 254,410 42,592 211,818 Secretarial Expenses 64,500 36,267 28,233 Directors Expenses 65,000 25,688 39,312 Bank Charges 146,703 101,364 45,339 Corp’ strategy and review conf' exp 161,413 85,751 75,663 Office Running Expenses 240,453 218,613 21,840 Printing and Stationery Expenses 34,064 34,801 -738 Consumable Stores Expenses 30,578 24,988 5,590 Materials and Supplies Expenses 3,590 2,058 1,532 Enforcement Expenses 60,005 - 60,005 Laboratory Expenses 14,300 3,597 10,703 Depreciation Expenses 1,135,908 -1,135,908 Total Operational Expenses 6,401,086 6,124,084 277,002 Total Recurrent Expenses 19,383,481 17,138,288 2,245,193 Surplus for the Period (2,036,139) 705,681 (1,748,566) Notes: 1. Travelling and Accomodation expenses include commitments amounting to KSh. 9.687 million in FY 2014/2015, also KSh. 40 million for training related travels was budgeted under training funds 2. The variance in Advertising and Publicity is attributable to the iTax. Rollout activities budgeted under the iTax project (KSh. 125 million). 3. Building and maintenance and Consumable stores expenses amounting to KSh. 84.3 million were commitments made from the FY 2014/2015 budget. 4. Printing and Stationery includes commitments of KSh. 1,197 million that relate to the FY of 2015/2016 12:43 PM THE KENYA GAZETTE 29th March, 2018 958 NOTES TO THE FINANCIAL STATEMENTS 1. Statement of compliance and basis of preparation The Authority’s financial statements have been prepared in accordance with and comply with International Public Sector Accounting Standards (IPSAS). The financial statements are presented in Kenya shillings, which is the functional and reporting currency of the Authority and all values are rounded to the nearest thousand (Ksh000). The accounting policies have been consistently applied to all the years presented. The financial statements have been prepared on the basis of historical cost, unless stated otherwise. The cash flow statement is prepared using the indirect method. The financial statements are prepared on accrual basis. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Revenue Recognition (i) Agency Income In accordance with the Kenya Revenue Authority Act CAP 469, income to the Authority is “such amounts not exceeding 2% as may be determined by the Minister each financial year” of the total estimated revenue to be collected by the Authority on behalf of the Exchequer. In addition, the Authority is entitled to a Bonus of 3% of the surplus revenue collected above the estimates and also earns income from other activities. Agency Income is recognised (ii) Revenue from exchange transactions Finance Revenue Finance revenue comprises interest receivable from fixed deposits and security deposits. Finance revenue is recognised as it accrues in profit or loss, using the effective yield method. Rental income Rental income is recognised on a straight line basis over the lease term. Commission revenue Commission income comprises agency fees charged on collections on behalf of regulatory bodies. Other operating income Other income is recognised when significant risks and rewards of ownership are transferred to the recipient and the amounts of revenue can be measured reliably. Interest income Interest income is derived from short term placements held in approved commercial banks. (b) Development funding and capital grants by the Treasury Grants by the Treasury in form of assets or funding for acquisition of major assets or development projects are recognized as a financing reserve when received. No repayment of the financing is expected by the Authority. (c) Property, Plant and Equipment All categories of property, plant and equipment are stated at cost or valuation less accumulated depreciation and annual impairment losses. Depreciation is calculated to write off the cost or valuation of each asset to its residual value where applicable, over the expected useful life of the asset in equal instalments. A full year’s depreciation is charged in the year of purchase but no charge is made in the year of disposal. The estimated useful life is as follows— Plant and Machinery 8 years Equipment/Furniture/Fittings 8 years Boats 8 years Motor Vehicles 5 years (with a 10% residual value) Computers 3 years Computer Software 3 Years Buildings 40 years Leasehold land Over the remaining lease period Gains or losses on property, plant and equipment are determined by reference to their carrying value and are taken into account in determining the surplus / (deficit) for the year. (d) Intangible Assets Intangible assets consist of various computer software systems purchased for use by the Authority. The Authority recognises Intangible Assets acquired separately at cost less accumulated amortisation. Amortisation is charged on a straight-line basis over their useful lives as estimated by management from time to time. (e) Cash and Cash equivalents For purposes of the cash flow statement, cash and cash equivalents comprise cash in hand and short-term deposits held with banks. (a) Translation of foreign currencies Transactions in foreign currencies during the year are converted into Kenya Shillings at rates ruling at the transaction dates. Assets and liabilities at the balance sheet date, which are expressed in foreign currencies, are translated into Kenya Shillings at the rate ruling on that date. The resulting foreign exchange gains and losses are recognized on a net basis, differences are dealt with in the income and expenditure statement in the financial year in which they arise. Employee benefits costs (i) Retirement benefit obligations The Authority operates as hybrid pension scheme with a defined contribution plan for the permanent and pensionable employees. Payments to the scheme are recognised as an expense when employees have rendered service entitling them to the contributions. The scheme is funded by contributions from both the entity and employees. The entity and all its employees also contribute to the National Social Security Fund, which is a defined contribution scheme. 29th March, 2018 THE KENYA GAZETTE (ii) Other entitlements Employees’ entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave at the reporting date. (b) Inventories All consumable stocks held for use in operations are expensed on purchase (c) Receivables Receivables are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Objective evidence of impairment of the receivables is when there is significant financial difficulty of the counter party or when there is a default or delinquency in payment according to agreed terms. When a receivable is considered uncollectible it is written off. Subsequent recoveries of amounts previously written off are credited in the Statement of Financial Performance. Changes in the carrying amount of the allowance account are recognized in the Statement of Financial Performance. (d) Payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognized initially at the transaction price and subsequently measured at amortized cost using the effective interest method. (e) Provisions Provisions for liabilities are recognised when there is a present obligation (legal or constructive) resulting from a past event, and it is probable that an outflow of economic resources will be required to settle the obligation and a reliable estimate can be made of the monetary value of the obligation. (f) Budget information The annual budget is prepared on Activity basis, that is, activities are identified and costs and expenditure associated to the same. (g) Nature and Purpose of Reserves The Authority creates and maintains reserves in terms of specific requirements. The Authority has created Capital Grants from the National Treasury reserves to represent the National Treasury’s input by directly funding capital development for the Authority. The Revaluation reserves represent revaluation on land and buildings by the Authority. (h) Related Parties The Authority regards a related party as a person or an entity with the ability to exert control individually or jointly, or to exercise significant influence over the Entity, or vice versa. (i) Critical Accounting Estimates and Judgements in applying the Authority’ accounting policies In the process of applying the entity’s accounting policies, management has made estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial period. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. These are dealt with below: Critical accounting judgments in applying the Authority’s policies Impairment losses At each reporting date, the entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash generating unit to which the asset belongs. Plant and equipment Property and equipment is depreciated over its useful life taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed at the reporting date and may vary depending on a number of factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Contingent liabilities The directors evaluate the status of any exposures on a regular basis to assess the probability of the entity incurring related liabilities. However, provisions are only made in the financial statements where, based on the directors’ evaluation, a present obligation has been established. REVENUE FROM NON EXCHANGE TRANSACTIONS 2015/2016 2014/2015 (KSh. ‘000) (KSh. 000) Amortisation of grants deferred Income 136,611 136,611 136,611 136,611 Deferred incomes are the inflows of economic benefits or services received/receivable from assets donated to the Authority from the World Bank. 12:43 PM THE KENYA GAZETTE 29th March, 2018 960 Revenue From Exchange Transactions a. Agency Income 2015/2016 2014/2015 (KSh. ‘000) (KSh. ‘000) Agency Income 15,358,009 15,058,009 15,358,009 15,058,009 The Agency Income and Bonus are provided in accordance with the provisions of the Kenya Revenue Authority Act, Cap. 469. 4. Revenue From Exchange Transactions a. Commissions Income 2015/2016 2014/2015 (KSh. ‘000) (KSh. ‘000 Road Maintainance Levy Commission 903,556 617,791 Aviation Revenue Commission 82,439 71,296 Air Passenger Service Charge Commission 131,403 132,384 Sugar Development Levy Commission 30,865 30,166 Insurance Deductions Commission 4,071 3,920 National Transport and Safety Authority Commission 7,930 19,408 PDL and IDF Income 39,334 36,343 1,199,599 911,307 Other Incomes 2015/2016 2014/2015 (KSh. ‘000) (KSh. ‘000) Sale of Tamperproof Seals 13,085 4,522 Public Overtime 5,239 2,363 Document Processing Fees 48,960 43,074 Staff Housing / Rental Income 78,325 73,791 Property Rental Income 28,180 16,039 Miscellaneous Income ** 141,113 86,848 314,901 226,637 ** Miscellaneous income consists of income from sale of tender documents, revenue stamps, staff identity cards, PSV Badges, training school activities, road transit toll collections and gains on foreign exchange. 5. ADMINISTRATIVE COSTS a. Staff and Employee Costs 2015/2016 2014/2015 (KSh. ‘000) (KSh. ‘000) Salaries and Allowances 11,048,533 10,246,316 Medical Expenses 547,553 529,348 Provision for Staff Leave (85,446) (90,739) Provision for Staff Contract Gratuity 126,442 166,846 11,637,082 10,851,771 Other Administrative Costs 2015/2016 2014/2015 (KSh ‘000) (KSh ’000) Travelling and Accomodation 971,833 720,116 Utilities 357,642 355,799 Staff Welfare 43,746 39,012 Printing and Stationery 34,801 70,351 Consultancy 42,592 56,040 Computer Expenses 436,418 314,151 Training 253,014 258,145 Office Running Expenses 218,613 223,756 Insurances 75,309 63,800 Board Expenses 25,688 34,236 Entertainment 85,751 106,307 Consumable Stores 24,988 17,012 Security Expenses 384,315 347,864 Depreciation Charge 1,072,230 830,284 Amortisation of Intangible Assets 63,679 50,284 4,090,617 3,487,156 Total Administrative Costs 15,727,699 14,338,927 29th March, 2018 THE KENYA GAZETTE b. Board Expenses 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Monthly Directors’ fees 10,258 13,671 Sitting Allowances and Honararia 13,227 17,629 Accomodation and Travel Expenses 2,203 2,936 25,688 34,236 6. Operating Expenses 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Rent and Rates 276,845 211,577 Taxpayer Education 110,131 85,915 Motor Running Expenses 134,612 166,881 Advertising and Public Relations 314,705 162,199 Secretarial Expenses 36,267 25,150 Uniforms and laundry 956 885 Materials and Supplies 2,059 83,889 Bank Charges 101,364 136,450 Containers and Sealing Expenses - 8,496 Laboratory Expenses 3,597 5,012 980,537 886,454 7. Maintenance Expenses 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Building Repair and Maintenance 225,733 109,423 Scanner Maintenance 195,806 149,223 Motor Boat Expenses 8,512 9,546 430,052 268,191 7 (a) Scanner expenses 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Annual Maintenance Contract 159,444 149,167 Routine Maintenance Expenses 36,362 56 195,806 149,223 8. Property, Plant and Equipment. (i) Land Office Building Plant and Motor Equipments Computers Motor WIP Total Machinery Vehicle and Furniture Boats (KSh ‘000) (KSh ‘000) (KSh ‘000) (KSh ‘000) (KSh ‘000) (KSh ‘000) (KSh ‘000) VALUATION 1st July, 2015 10,497,150 2,204,375 602,322 1,135,070 2,164,528 604,467 2,269,337 19,477,249 Additions - 1,241,099 280,304 149,494 126,699 - 2,431,839 4,229,435 Disposal (41,300) - (6,320) - - - - (47,620) Transfer of WIP - - - - - - - - 30th June, 2016 10,455,850 3,445,474 876,306 1,284,564 2,291,227 604,467 4,701,176 23,659,064 DEPRECIATION 1 July 2015 1,205,496 1,993,796 487,182 789,233 1,915,455 478,766 - 6,869,929 Charge for the Year 154,409 347,893 170,215 99,032 227,134 73,547 - 1,072,230 Depreciation on Revaluation 96,545 - - - - - - 96,545 Disposal (5,163) - (5,688) - - - - (10,851) 30th June, 2016 1,451,288 2,341,689 651,709 888,265 2,142,589 552,313 - 8,027,853 NET BOOK VALUES: 30th June, 2016 9,004,562 1,103,786 224,597 396,299 148,638 52,154 4,701,176 15,631,210 1st July, 2014 10,452,982 2,204,375 611,728 1,040,616 1,972,007 604,467 1,396,119 18,282,295 Additions 44,168 - 16,966 94,454 136,370.72 - 929,368.61 1,221,327 Disposal (26,373) - . - - (26,373) Transfer of WIP - - 56,151 - (56,150.60) - 30th June, 2015 10,497,150 2,204,375 602,322 1,135,070 2,164,528 604,467 2,269,337 19,477,249 DEPRECIATION 1st July, 2014 919,616 1,800,712 488,062 699,214 1,654,371 405,219 - 5,967,194 Charge for the Year 189,335 193,084 23,215 90,019 261,084 73,547 - 830,284 Depreciation on Revaluation 96,545 - - - - - - 96,545 Disposal - - (24,094) - - (24,094) 30th June, 2015 1,205,496 1,993,796 487,182 789,233 1,915,455 478,766 - 6,869,929 NET BOOK VALUES: 30th June, 2015 9,291,654 210,579 115,139 345,837 249,073 125,701 2,269,337 12,607,320 12:43 PM THE KENYA GAZETTE 29th March, 2018 962 (ii) Land and buildings The Authority received several leasehold properties (land and buildings) from the government at inception in 1995. The Authority was not required to pay for the property hence did not incur any cost on the same. To recognize the property in its books, the Authority did a professional valuation of the land and building in 1996 and the values were adopted in the Authority‘s statement of financial position. This was done by recognizing land and buildings assets in the statement of Financial Position. The Authority is yet to receive title documents for some 17 pieces of leasehold land received Government. These properties are at various stages of registration with the Commissioner of Lands. Another title deed is in the name of East African Common Services Authority (EACSA) and the process transfer of the title is ongoing. The Authority also bought one parcel of land in Taveta in 2010 for construction of a border station and is in the process of obtaining the title. (iii) Fully depreciated assets Included in the assets are fully depreciated assets comprising of Motor Vehicles whose original cost was KSh. 467,031,310 with a residual value of KSh. 46,703,131, Motor Boats whose cost is KSh. 16,091,088, Computers whose cost is KSh. 1,609,826,830, Office Equipment of KSh. 208,016,028, Laboratory Equipment KSh. 21,377,450, Plant and Machinery KSh. 659,703,884 and Furniture and Fittings of KSh. 260,822,049 whose book value is nil. The total notional depreciation charge for the assets is KSh. 757,965,667 (2015- KSh. 673,827,383). Most of these assets are in use by the Authority. (iv) Capital Work In Progress 2015/2016 2014/2015 (KSh ‘000) (KSh. ’000) Intergrated Tax Management System 1,409,297 1,075,616 Valuations Database system (Phase I) 24,365 24,365 Simba Transformation Project 81,559 41,183 Biometric Security System (Times Towers) 122,504 122,504 Exciseable Goods Management System (EGMS) 899,787 899,787 Electronic Cargo Tracking System (Phase I) 77,612 77,612 Customs Revenue Accounting Module 4,664 4,664 SAP ERP System for Support Services 254,673 - Renovation of JKIA Offices 8,386 8,386 Renovation of Border Stations 7,284 7,284 Datawarehouse and Business Intelligence 2,909 2,661 FOSS ERP System for Support Services 5,276 5,276 Diaster Recovery Management System 12,448 - Business Contunity Management System 35,140 - One Stop Border Posts 1,755,274 - 4,701,176 2,269,337 9. Intangible Assets Cost (KSh ‘000) (KSh ‘000) 1st July 333,938 333,938 Additions 11,776 - 30th June 345,713 333,938 Amortisation 1st July 274,184 223,900 for the year 63,679 50,284 30th June 337,863 274,184 Net Book Value 30th June 7,850 59,753 The intangible assets are made up of different computer software in use by the Authority. Included in the Intangible Assets are fully amortised assets whose original cost was KSh. 169,267,025, (2014- KSh. 169,267,025). 10. Debtors and Receivables 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Trade Debtors Other Agency debtors 214,478 218,953 Rent Receivable 23,084 3,712 Interest Receivable 42,692 34,877 280,254 257,543 Other Debtors Staff Debtors 81,245 118,621 Prepayments 18,844 10,217 Other Debtors 126,207 86,187 226,296 215,025 Debtors Total 506,549 472,568 Other agency debtors represent outstanding commission on collection of revenues on behalf of other organisations. Staff debtors mainly comprise of outstanding travel imprests, loans for acquisition of laptops and medical advances. 29th March, 2018 THE KENYA GAZETTE 11. Amount Due From Treasury 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) 1st July 2,123,899 2,123,899.00 Accrued in the year 15,365,441 15,058,009 Amount received in the year (15,358,009) (15,058,009) 30th June 2,131,332 2,123,899 The amount represents outstanding agency commission, bonuses earned and payments made on behalf of the Treasury. 12. Security Deposits 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Savings and Loan (K) Ltd 1,552,005 1,508,463 Housing Finance 603,138 571,612 National Bank of Kenya Ltd 158,452 157,891 Higher Educations Loans Board 20,000 20,000 2,333,596 2,257,966 The deposits with Savings and Loans and Housing Finance are placed as security against staff mortgage advances, while the National bank deposits are placements against staff car loans. Deposits with HELB are placements against college fees issued to staff for further studies. 13. Cash and Bank Balances 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Cash in Hand 467 269 Cash at Bank 275,770 534,168 Fixed Deposits 5,008,878 8,166,997 Government Treasury Bills 4,767,104 - 10,052,218 8,701,434 The fixed deposits are made up of one month deposits in the commercial banks shown below. The maturity period for the deposits is between July and August, 2016. Fixed Deposits 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) National Bank of Kenya 762,675 3,565,824 Co-operative Bank of Kenya 1,973,204 4,601,174 Kenya Commercial Bank 2,211,458 - KESRA - National Bank of Kenya 61,541 - 5,008,878 8,166,997 Treasury Bills are placements in Central Bank of Kenya with maturity period between July to September 2016. The placements are analysed as follows— Government Treasury Bills 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) 91 Day Treasury Bills 2,412,978 - 182 Day Treasury Bills 2,354,126 - 4,767,104 - 14. Creditors and other Payables 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Trade Creditors and Accounts Payable 1,870,158 2,172,020 Staff Creditors 714,453 717,658 Payroll Deduction Creditors 56,738 40,263 Taxes 87,952 45,540 2,729,301 2,975,481 Trade creditors and accounts payables represent the outstanding payments to suppliers and other parties, Payroll deductions include outstanding amounts for statutory deductions, loans Saccos and others. Staff creditors comprise of unpaid staff bonus, outstanding payments due to staff and funds for staff welfare associations. Included in Accounts Payable is a balance of KSh. 212.7 Million (analysed below) from sale of Excise Stamps for payment to the suppliers of the Stamps. 12:43 PM THE KENYA GAZETTE 29th March, 2018 964 Excise Stamps Fund Account 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Balance B/F 380,688 235,013 Total Receipts 1,083,844 841,537 Total Payments 1,251,817 695,862 Balance C/F 212,715 380,688 There was a total of KSh. 771 Million payable to the stamps manufacturer for stamps and software. 15. Leave Pay and Contract Gratuity Provisions 2015/2016 2014/2015 Leave Pay Provision 828,142 913,588 Contract Gratuity Provision 293,288 166,846 Total 1,121,430 1,080,434 Leave pay provision is in respect to leave days earned by staff members but were not taken as at 30.06.2016. Contract gratuity provision is in respect of gratuity accrued for staff on contract for the period to 30.06.2016. 16. Contribution to Government Pension Fund 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) 1 July 26,435 26,991 Payment to the Treasury in the year (819) (556) 30th June 25,616 26,435 This amount relates to contributions made to the Government pension during the nine-month secondment period from October 1995 to June 1996 for pensionable staff who were transferred from the Treasury to the Authority. The amount falls due for payment on retirement of an officer and is then transferred to the Treasury to facilitate processing of the pension. 17. Capital / Development Grants By The National Treasury and Donors a. Capital / Development Grants By The National Treasury 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) 1st July 13,360,236 12,948,236 Real Estate 55,000 - ERP system 100,000 - Cordinated Border Management 353,240 - KESRA 66,660 - New Data Centre 160,000 - Customer Relationship Management 130,000 - TaxPayer Base Expansion Consultancy 250,000 - Multi Agency Investigation 140,000 - One Stop Border Stations 1,755,274 Border Stations and KESRA Rehabilitation - 200,000 Funds for Integrated Tax Management System - 212,000 30th June 16,370,410 13,360,236 The amounts represent assets and funds provided by the Treasury. The Treasury separately funds the major reform and modernization programmes undertaken by the Authority in all departments for revenue enhancement and efficient service delivery. b. Capital / Development Grants by Donors 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Scanners (donated by China Government) 1,224,772 - 30th June 1,224,772 - The amounts represent assets and funds provided by Donors both directly or through the National Treasury towards reform and modernization programmes undertaken by the Authority in all departments for revenue enhancement and efficient service delivery. 18. Designated Funds (Insert Comparative) Legal Claim Fund (KSh ‘000) 1st July, 2015 230,465 Amount Spent (25,516) 30th June, 2016 204,949 The legal claim funds are received from the Treasury for settling legal awards against the Authority in revenue related court cases. 29th March, 2018 THE KENYA GAZETTE 19. Retirement Benefit Costs During the year ended 30th June 2015, KSh. 1,025.4 Million (2014 KSh. 1,071.8 Million) was paid as contributions to the staff pensions scheme. The scheme changed from a defined benefit plan to a Hybrid scheme with a defined benefit section and a defined contribution section with effect from 1 July, 2005. Under the defined benefit scheme, the employer contribution on actuarial advice was maintained at 13.2% per member while a rate of 14% was adopted for the defined contribution scheme. Employees contribute 7.5% of their salaries for both sections of the scheme. The value placed on the existing final assets per the last valuation of 30th June, 2015, was KSh. 15.215 Billion (2014, KSh. 13.662 Billion) while the present value of past service liabilities at that date was KSh. 13.808 Billion (2014 KSh. 12.326 Billion). 20. Capital Commitments 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) Approved and contracted 162,911 1,361,576 Approved and not contracted 208,902 3,040,918 371,814 4,402,494 21. Recurrent Commitments 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) 30th June 1,183,207 1,079,055 22. Employees The number of employees at the end of the year was; 2015/2016 2014/2015 30th June 4,680 4,658 DEFERRED GRANT INCOME RECONCILIATION These relate to grants from the World Bank under the Government of Kenya for projects to facilitate efficient and effective collection of taxes. (a) Deferred grant income reconciliation 2015/2016 2014/2015 (KSh ‘000) (KSh ‘000) At 1st July as restated 218,695 355,306 Received in the year - - Amortisation 136,611 136,611 At 30th June 82,085 218,695 (b) Deferred grant income amortisation Grant income to be amortised within one year 82,085 136,611 Grant income to be amortised after one year - 218,695 At the end of the period 82,085 355,306 RELATED PARTIES The Government of Kenya is the principal shareholder in Kenya Revenue Authority. During the year, the following transactions were carried out with related parties as analysed as follows— (a) Transaction (i) Government of Kenya 2015/2016 2014/2015 Capital Grants 4,234,947 412,000 Agency Income 15,358,009 15,058,009 19,592,956 15,470,009 (ii) Key management compensation 2015/2016 2014/2015 Salaries and other short - term employment benefits 69,600 78,414 69,600 78,414 (iii) Directors’ remuneration 2015/2016 2014/2015 Fees and other Emoluments (note 5) 25,688 34,236 25,688 34,236 (b) Balances Due (to)/from related parties 12:43 PM THE KENYA GAZETTE 29th March, 2018 966 2015/2016 2014/2015 Amount due from Treasury (note 11) 2,131,332 2,123,899 Contribution to Government pension fund (note 16) (25,616) (26,435) 2,105,716 2,097,464 23. Financial Risk And Capital Management The Authority’s activities expose it to a variety of financial risks including credit and liquidity risks and effects of changes in foreign currency. The Authority’s overall risk management programme focuses on unpredictability of changes in the business environment and seeks to minimise the potential adverse effect of such risks on its performance by setting acceptable levels of risk. The Authority’s financial risk management objectives and policies are detailed below: (i) Credit risk The Authority has exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. Credit risk arises from cash and cash equivalents, and deposits with banks, as well as agency and other receivables. The carrying amount of financial assets recorded in the financial statements representing the Authority’s maximum exposure to credit risk is made up as follows: Fully Performing Past Due Impaired (KSh ‘000) (KSh ‘000) (KSh ‘000) At 30th June, 2016 Receivables 506,549 - - Bank Balances 10,052,218 - - At 30th June, 2015 Receivables 472,568 - - Bank Balances 8,701,434 - - The credit risk associated with these receivables is minimal hence no allowance for uncollectible amounts has been recognised in the financial statements. (ii) Market risk The board has put in place an internal audit function to assist it in assessing the risk faced by the Authority on an ongoing basis, evaluate and test the design and effectiveness of its internal accounting and operational controls. Market risk is the risk arising from changes in market prices, such as interest rate, equity prices and foreign exchange rates which will affect the Authority’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Overall responsibility for managing market risk rests with the Audit Committee. The Authority’s Corporate Risk Department is responsible for the development of detailed risk management policies and for the day to day implementation of those policies. There has been no change to the Authority’s exposure to market risks or the manner in which it manages and measures the risk. (a) Foreign currency risk The Authority has transactional currency exposures. Such exposure arises from foreign denominated bank balances. The carrying amount of the Authority’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows: KSh Others Total (KShs ‘000) (KShs ‘000) (KShs ‘000) At 30th June, 2016 Financial assets (Bank balances) 144,078 - 144,078 Liabilities Payables - - - Net foreign currency liability 144,078 - 144,078 (b) Interest rate risk Interest rate risk is the risk that the Authority’s financial condition may be adversely affected as a result of changes in interest rate levels. The Authority’s interest rate risk arises from fixed and security deposits. This exposes the Authority to cash flow interest rate risk. Management of interest rate risk To manage the interest rate risk, management has endeavoured to bank with institutions that offer favourable interest rates. Sensitivity analysis The Authority analyses its interest rate exposure on a dynamic basis by conducting a sensitivity analysis. The sensitivity analysis for interest rate risk assumes that all other variables, in particular foreign exchange rates, remain constant. The analysis has been performed on the same basis as the prior year. Using the end of the year figures, the sensitivity analysis indicates the impact on the statement of financial performance if current floating interest rates increase/decrease by five percentage (5% as a decrease/increase of KSh. 43,277,000 (2015: KSh. 35,457,000). (iii) Price risk The Authority does not hold investments that would be subject to price risk; hence this risk not relevant. 24. Contingent Liabilities These include— (a) An amount of KSh. 2 million included in utility deposits representing a bank guarantee to Kenya Power and Lighting for Times Tower power supply. (b) An amount of KSh 1,297,759 representing a guarantee to Telkom Kenya Limited for supply of telephone facilities in the Times Tower building. (c) Pending legal cases and court awards against the Authority estimated at Kh. 4,454,051,492 at the financial year end. The Treasury is expected to meet the cost of settling the awards should they materialize. 25. Comparatives Where necessary, comparatives have been adjusted to conform to changes in presentation in the current year. 29th March, 2018 THE KENYA GAZETTE KENYA REVENUE AUTHORITY REVENUE COLLECTION BY DEPARTMENT 2015/2016 2014/2015 Note Actual Target Actual Target KSh million' Ksh 'million' KSh 'million' KSh ‘million’ EXCHEQUER REVENUE COLLECTION Customs Services Department 325,272 329,533 309,935 325,977 Domestic Taxes Department 808,702 832,105 705,718 738,762 National Transport and Safety Authority 2,859 3,751 1,747 3,010 Treasury Revenue a 10,754 - 3,425 - SUB-TOTAL 1,147,586 1,165,390 1,020,826 1,067,749 AGENCY TAXES COLLECTION Customs Services Department b 60,731 43,959 45,132 35,026 Domestic Taxes Department c 1,543 2,211 1,508 2,251 National Transport and Safety Authority d 1,052 1,060 2,199 863 SUB-TOTAL 63,326 47,230 48,840 38,140 GROSS TOTAL 1,210,912 1,212,620 1,069,666 1,105,890 Notes: (a) Treasury Undertakings Revenue is in respect of the VAT on the imports and local supplies for the Standards Gauge Railway (SGR) Project to be settled by The National Treasury (b) Customs Services Department – Road Maintenance Levy, Aviation Revenue, Petroleum Development Levy, Sugar Levy, Transit Toll among others. (c) Domestic Taxes Department – Sugar development levy, Land Rates, and Kenya Bureau of standard (KEBS) levy. (d) National Transport and Safety Authority – Sale of number plates, TLB application fees, Driving test fees,vehicle inspection fees among others. (e) The Exchequer figure includes the amount collected for the Railway Development Levy (RDL) Fund amounting to KSh. 17,279.369562 (2015- KSh. 18,940 million). REVENUE COLLECTION MOVEMENT SCHEDULE 2015/2016 2014/2015 CSD DTD RTD TOTAL CSD DTD RTD TOTAL KSh 'million' KSh'million' KSh 'million' Ksh 'million' KSh 'million' KSh 'million' KSh 'million' KSh 'million' EXCHEQUER Cash in Transit brought forward – 1st July - 19 5,836 898 6,715 - - - - Cash from commercial banks/adjustment - - Add: Collections for the year 325,272 808,702 2,859 1,136,833 309,932 705,718 3,946 1,019,596 Total amounts to be credited in CBK in the year 325,253 814,538 3,757 1,143,548 309,932 705,718 3,946 1,019,596 Less: Transfers to CBK 318,778 812,007 3,131 1,133,916 309,951 699,882 3,048 1,012,881 Transfers Banks/Principals - - - - Total transfers within the year 318,778 812,007 3,131 1,133,916 309,951 699,882 3,048 1,012,881 Cash in Transit 30th June 6,475 2,531 626 9,632 - 19 5,836 898 6,715 AGENCY Cash in Transit brought forward – 1st July - 382 - 77 - - 459 - - - - Cash from commercial banks/adjustment - Add: Collections for the year 60,731 1,543 1,052 63,326 45,133 1,508 - 46,641 Total amounts to be credited in CBK in the year 60,349 1,466 1,052 62,867 45,133 1,508 - 46,641 Less: Transfers to CBK 49,704 1,778 1,684 53,166 35,456 1,585 - 37,041 Transfers Banks/Principals 10,478 - - 10,478 10,059 10,059 Total transfers within the year 60,182 1,778 1,684 63,644 45,515 1,585 - 47,100 Cash in Transit 30th June 167 - 312 - 632 - 777 - 382 - 77 - - 459 TOTAL Cash in Transit brought forward – 1st July - 401 5,759 898 6,256 - - - - Cash from commercial banks/adjustment - - - - - - - - Add: Collections for the year 386,003 810,245 3,911 1,200,159 355,065 707,226 3,946 1,066,237 Total amounts to be credited in CBK in the year 385,602 816,004 4,809 1,206,415 355,065 707,226 3,946 1,066,237 Less: Transfers to CBK 368,482 813,785 4,815 1,187,082 345,407 701,467 3,048 1,049,922 Transfers Banks/Principals 10,478 - - 10,478 10,059 - - 10,059 Total transfers within the year 378,960 813,785 4,815 1,197,560 355,466 701,467 3,048 1,059,981 Cash in Transit 30th June 6,642 2,219 - 6 8,855 401 5,759 898 6,256