REPORT of the Auditor-General for the FINANCIAL YEAR ENDED DECEMBER 31, 2016 ON APPROPRIATION ACCOUNTS, FINANCE AND REVENUE STATEMENTS AND FUND ACCOUNTS _________________________________________ Presented to Parliament of Zimbabwe 2017 _________________________________________ Page Intentionally Left Blank Office of the Auditor-General of Zimbabwe 48. George Silundika Avenue Cnr. S. V. Muzenda Street, Harare, Zimbabwe The Hon. Mr. P. Chinamasa Minister of Finance and Economic Development New Government Complex Samora Machel Avenue Harare Dear Sir I hereby submit my Report on the audit of Appropriation Accounts, Finance and Revenue Statements and Fund Accounts of Zimbabwe in terms of Section 309 (2) of the Constitution of Zimbabwe read together with Section 10 (1) of the Audit Office Act [Chapter 22:18], for the year ended December 31, 2016. Yours faithfully M. CHIRI, AUDITOR-GENERAL. HARARE June 14, 2017. Page Intentionally Left Blank OAG VISION To be the Centre of Excellence in the provision of Auditing Services. OAG M ISSION To examine, audit and report to Parliament on the management of public resources of Zimbabwe through committed and motivated staff with the aim of improving accountability and good corporate governance. OAG VALUES Page Intentionally Left Blank LIST OF ACRONYMS AfDB African Development Bank AFROSAI-E African Organisation of Supreme Audit Institutions for English Speaking Countries AMTOs Assisted Medical Treatment Orders APM Accounting Procedures Manual BAZ Broadcasting Authority of Zimbabwe BBR Beitbridge - Bulawayo Railway BEAM Basic Education Assistance Module BOI Board of Inquiry CAAZ Civil Aviation Authority of Zimbabwe CBZ Commercial Bank of Zimbabwe CCTV Closed-Circuit Television CMED Central Mechanical Equipment Department CSC Cold Storage Company CVR Central Vehicle Registry DDF District Development Fund DIMAF Distressed Industries and Marginalized Firms DIPA Departmental Integrated Performance Agreement DMFAS Debt Management and Financial Analysis System DMO Debt Management Office EU European Union GAAP Generally Accepted Accounting Principles GMB Grain Marketing Board IAS International Accounting Standards IDBZ Infrastructure Development Bank of Zimbabwe IDC Industrial Development Corporation IMF International Monetary Fund IMPI Information and Media Panel of Inquiry KRAs Key Result Areas LDC Livestock Development Committee MIPA Ministerial Integrated Performance Agreement MMCZ Minerals Marketing Corporation of Zimbabwe MOU Memorandum of Understanding NOCZIM National Oil Company of Zimbabwe NOIC National Oil Infrastructure Company NRZ National Railways of Zimbabwe NSSA National Social Security Authority OAG Office of the Auditor-General PAAB Public Accountants and Auditors Board PAC Public Accounts Committee PDMO Public Debt Management Office PFMA Public Finance Management Act PFMS Public Finance Management System PMD Provincial Medical Director PMG Paymaster General Account POSB People’s Own Savings Bank PSC Public Service Commission PSIP Public Sector Investment Programme PTA Preferential Trade Area PVA Public Viewing Areas RBM Results Based Management RBZ Reserve Bank of Zimbabwe SAP Systems Application Programme SDGs Sustainable Development Goals SEDCO Small Enterprises Development Corporation SI Statutory Instrument SME Small and Medium Enterprises SMEDCO Small and Medium Enterprises Development Corporation SPB State Procurement Board SSB Salary Service Bureau T&S Travelling and Subsistence UNDP United Nations Development Programme UNICEF United Nations Children Education Fund UNWTO United Nations World Tourism Organisation VAT Value Added Tax VTC Vocational Training Centre VED Vehicle Examination Department VES Visitor Exit Survey VID Vehicle Inspection Department YEF Youth Empowerment Facility ZEC Zimbabwe Electoral Commission ZERA Zimbabwe Energy Regulatory Authority ZESA Zimbabwe Electricity Supply Authority ZETREF Zimbabwe Economic and Trade Revival Fund ZimASSET Zimbabwe Agenda for Sustainable Socio-Economic Transformation ZIMRA Zimbabwe Revenue Authority ZINARA Zimbabwe National Roads Administration ZINWA Zimbabwe National Water Authority ZMDC Zimbabwe Mining Development Corporation ZRP Zimbabwe Republic Police ZTA Zimbabwe Tourism Authority Page Intentionally Left Blank