Introduction:
On the 25th August 2009 the Director of Finance reported to the DG on the issue of budget shortage due to a figure of factors. The Director of Finance mentioned among other things is the non handiness of budgeted financess to be provided by external giver on one manus and unpaid regulative fees from public owned public-service corporations on the other manus, viz. ELECTOGAZ, ONATRACOM and ORINFOR.
The Director General appointed a squad made up of the Director of Finance, the Director of Economic Affairs, the Internal Auditor and the Director of Human Resource and Administration to discourse on the issues and to come up with schemes to acquire out of the state of affairs and put up schemes to roll up parts.
Deliberations.
The ad hoc commission held three meetings ; on the 26th August, 31st August and 9th September 2009 to discourse the issue. After analysis, it was realised that the chief job lies on the undermentioned factors:
Public owned establishments are non paying their parts as per commissariats of the jurisprudence, these include ELECTROGAZ, ORINFOR and ONATACOM.
Other operators are sing troubles to pay their outstanding bills, particularly wide Castors.
It has been reported to the commission that Bralirwa has shown some opposition to pay its VISAT fee contending the manner in which the new duty set up by the Board of RURA has been communicated to it.
In consideration of the above, the ad hoc squad decided to revisit the budget by reexamining the existent hard currency flow outlook in comparing with the budgeted outgos for the staying months of the twelvemonth from September to December 2009 as follow:
In line with the authorization set by the Director General agreed to place the factors underlying that budget shortage through comparing of budgeted sum with the position of gross collected.
Gross aggregation analysis.
Under this chapter, the squad considered the position of payments received in comparing with the budgeted grosss as per the undermentioned tabular arraies 1 and 2.
Income advancement study
The state of affairs of payments received as per budgeted is summarized in the afterlife tabular array.
Table 1: Income advancement study as at 31st grand 2009 as registered in accounting subdivision.
Expected Income
Received
Difference
fluctuation in %
Internally generated grosss
2,897,980,573
2,137,099,408
-760,881,165
73.74 %
Operator ‘s parts ( 1 % )
1,564,864,614
810,293,129
754,571,485
51.78 %
A
A
A
A
A
MTN Rwandacell
629,546,004
649,546,668
-20,000,664
103.18 %
A
A
A
A
A
Rwandatel
200,000,000
93,357,868
106,642,132
46.68 %
A
A
A
A
A
ISPA
1,200,000
0
0
0.00 %
A
A
A
A
A
STAR MEDIA
781,796
1,437,505
-655,709
183.87 %
A
A
A
A
A
TELE 10
2,832,704
6,550,821
-3,718,117
231.26 %
A
A
A
A
A
ALTECH
104,293
104,293
0
100.00 %
A
A
A
A
A
NEW ARTEL
20,522,639
7,179,990
13,342,649
34.99 %
A
A
A
A
A
ELECTROGAZ
326,830,639
0
326,830,639
0.00 %
A
A
A
A
A
ELGZ outstandings
228,904,951
29,930,716
198,974,235
13.08 %
A
A
A
A
A
ONATRACOM
54,141,588
0
54,141,588
0.00 %
A
A
A
A
A
Other Conveyance operators
100,000,000
22,185,268
77,814,732
22.19 %
A
A
A
A
A
Other regulative fees
950,000,000
937,220,047
12,779,953
98.65 %
A
A
A
A
A
Frequencies allotments
750,000,000
612,456,160
137,543,840
81.66 %
A
A
A
A
A
Enumeration fees
150,000,000
110,935,530
39,064,470
73.96 %
A
A
A
A
A
Conveyance licenses
50,000,000
213,828,357
-163,828,357
427.66 %
A
A
A
A
A
Other Income
0
6,470,273
-6,470,273
A
A
A
A
A
A
Balance history at 31december,2008
383,115,959
383,115,959
A
A
External Fundss
1,102,950,000
25,180,320
1,077,769,680
2.28 %
A
A
A
A
A
eRwanda
456,000,000
0
456,000,000
0.00 %
A
A
A
A
A
RCIP
456,000,000
0
456,000,000
0.00 %
A
A
A
A
A
UERP
85,500,000
0
85,500,000
0.00 %
A
A
A
A
A
ICF
105,450,000
25,180,320
80,269,680
23.88 %
A
A
A
A
A
Entire Gross
4,000,930,573
2,162,279,728
1,838,650,845
54.04 %
The tabular array above illustrates that:
The tabular array above have tree constituents
1 % part of turnover:
Other regulative fees
Extenal financess
The above tabular array shows 51.78 % public presentation in rectification of 1 % regulative fees.
The many factors identified for that low % is due to:
Overestimate of regulative fees of Rwandatel,
None payment from ELECTROGAZ,
Refering other regulative fees the tabular array shows the good public presentation of 98.65 % . Under this point, it was noted that the sum from conveyance license was atom that 4 times than expected. This stems from the underestimate of the Numberss of conveyance operators at the beginning of the twelvemonth. However it was observed that under the some point, there was issues related to the frequence fees due to some disputed bills and none payment of wide Castors
External Fundss: The external fund represent 27.5 % of the entire RURA budget, but the tabular array shows the really low public presentation of 2.28 % as at 31st August. However there is indicant that this public presentation might better significantly during the staying period September to December.
From the above different public presentation rate, it is observed that the mean public presentation rate was fund to be 54.04 % .
Sing the above difference between the expected based on formal committednesss from the concerned operators and received sum, the squad found it necessary to measure the exact sum that RURA can anticipate to have and the budgeted outgos for the staying period ( Sept. to Dec. 2009 )
Expected grosss
With regard to expected grosss, the following table 3 was prepared based on estimations provided by the board of directors of economic ordinance.
Table 2: expected grosss for the period of September – December 2009
Conveyance
6,746,800
ICT
78,867,619
ELECTROGAZ
265830089[ 1 ]
Sub Total
351444508
External fund
349,364,940 RWF
Entire
700,809,448 RWF
Beginning: Directorate of Economic Regulation and HRA
The above tabular arraies show that the projected receivable sum of regulative fees for the period from September to December 2009 is Rwf. 700,809,448 RWF out of Rwf. 1,838,650,845 or 38 % .
By comparing, The above figures with the budget outgo, for the balance twelvemonth we determine the funding spread on the undermentioned subdivision.
Outgo analysis
Table 3: Situation of outgos as planned, executed and proposal for the period September to
December 2009.
Items
Budgeted
Executed
Remainss
Proposed
Observation
A
A
A
A
A
A
Employees charges
2,649,058,721
1,240,239,096
1,408,819,625
909,732,265
The sum was over estimated,
A
A
A
A
A
A
Fuel
5,000,000
0
5,000,000
0
We propose to take this point ; there is no demand of fuel in RURA.
Office letter papers & A ; Consumables
30,000,000
17,961,397
12,038,603
12,038,600
A
Cleaning, care & A ; fix
20,000,000
14,624,852
5,375,148
12,261,603
We propose to increase the sum as the figure of cleaners has besides increased
Beverages, tea and java
17,500,000
1,946,616
15,553,384
600,000
This was provided to Directors merely while it was budgeted for all staff
A
A
A
A
A
Proposed sum is adequate
ICT consumables
14,327,500
1,921,700
12,405,800
A
A
Subscription to intelligence paper
1,000,000
1,009,185
-9,185
10,000
We propose to increase in order to cover sum exceeded.
Care of equipments
7,500,000
1,310,300
6,189,700
6,189,700
A
Local perdiems & A ; accomodation
58,046,000
7,238,496
50,807,504
8,000,000
This sum was over estimated by some Directors, the full budgeted could non be used.
Car hire
70,891,400
21,810,444
49,080,956
9,993,468
The sum was besides over estimated, the chief cause is the reappraisal of the rates of adjustment.
International Travelling DG
3,500,000
2,975,980
524,020
2,096,080
We proposed to increase as budgeted sum is about finished.
International Travelling HRA
15,000,000
13,367,401
1,632,599
1,632,599
A
Communication costs
35,500,000
17,253,776
18,246,224
4,208,000
This sum should be reduced based on sum executed.
Acquisition of books.
10,000,000
84,932
9,915,068
9,915,068
A
Water & A ; Electricity ingestion
25,000,000
6,428,837
18,571,163
8,000,000
Harmonizing to monthly ingestion, entire sum remained will non be consumed.
Security charges
7,500,000
2,580,200
4,919,800
7,000,000
There is stamp in procedure.
Marketing & A ; Publicity
28,000,000
13,938,148
14,061,852
7,000,000
This sum will be plenty for remained period based on budget executing informations.
Consultancy
89,707,992
15,485,720
74,222,272
74,222,272
A
Training costs
A
A
A
A
A
Training supported by RURA budget
558,266,050
275,039,556
283,226,494
60,000,000
Taking into consideration hard currency jobs, developing cost should be slowed down
Training supported by RCIP
A
A
185,250,000
185,250,000
allow those pending ( in procedure ) merely for the remainder of the twelvemonth.
Training supported by ICF
A
A
139,869,940
139,869,940
For the instance of givers, they accepted to return merely the balance mentioned.
Training supported by UERP
A
A
24,245,000
24,245,000
A
International perdiems HRA
15,000,000
14,189,012
810,988
2,371,320
We propose to diminish the sum for a remained month as budgeted is about finished.
International perdiems DG
15,000,000
14,586,196
413,804
1,413,805
This point was extremely consumed and we would suggest to be cut down for the remained months.
Office rent ( Kimihurura )
80,720,000
42,441,697
38,278,303
45,000,000
This sum will be plenty for remained months.
Other eventualities & A ; exigencies
10,000,000
9,970,970
29,030
29,030
We hope non to hold other eventualities and outgrowths for remained period.
Membership fees to international orgs
31,500,000
8,367,512
23,132,488
9,500,000
This sum was over estimated and should be reduced based on old executing.
Audit & A ; consultative costs
8,500,000
727,950
7,772,050
3,886,025
Merely half of it will be plenty based on budget executing.
Sports apparels
A
A
A
15,000,000
This sum is expected to be paid for athleticss apparels.
Translation cost
7,500,000
3,379,354
4,120,646
4,120,646
A
Survey
40,000,000
15,925,292
24,074,708
24,074,708
A
Meeting and hiring conf.room
28,550,000
4,475,292
24,074,708
12,000,000
This sum has been overestimated and merely half of it will be adequate
Seating allowances
6,500,000
2,171,600
4,328,400
2,080,000
A
Refreshments DG ‘s office
3,600,000
291,300
3,308,700
3,308,700
A
Announcements & A ; Emission
40,580,000
10,585,960
29,994,040
8,000,000
This sum was over estimated by Directorates and can be reduced.
Workshops, seminars and conference
75,182,910
66,604,070
8,578,840
8,578,840
A
Entire debt to be paid to UAF
A
A
A
243,417,429
This sum is to be paid by RURA to UAF.
Entire
4,008,430,573
1,848,932,841
2,508,862,672
1,865,045,098
A
Beginning: DF board of directors, budget subdivision.
5. Determination of Financing Gap
The above budgeted outgos of Rwf. 1,865,045,098 and the expected grosss of RWF 251,557,248 for the staying months show a shortage of Rwf. 1,613,487,850. If we assume that pledges from givers will be honored, we can cut down the shortage to a sum of 1,613,487,850 subtractions 349,364,940 or RWF 1,264,122,910. This is the funding spread to be bridged by RURA for it to be able to accomplish its aims of the twelvemonth 2009.
In add-on to this, it is sensible to state that a proviso of security border of three months for the 1st one-fourth 2010 in which RURA will be waiting for the first operators ‘ expense of their regulative parts demands to be taken into consideration if we are to avoid any insolvency job.
decision and recommendations.
Based on the above appraisal of the RURA fiscal state of affairs, the squad suggested the undermentioned steps to be taken in order to procure the budget:
5.1 On short term footing… … … …
5.2. On long term basisaˆ¦aˆ¦ .
Annexs:
Annex 1aˆ¦
Annex 2aˆ¦
Team members.
RUTAYISIRE S. Innocent, Director of Finance, Chairman
MVUYIKONGO J. Claude, Director of Economic Regulation, member
Kayira Sadock, Ag Director of HRA, member
Marthe UWAMARIYA, Internal Auditor, member.
