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National AIDS Council audited 2010 financial statements
National Aids Council

October 31, 2011

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- Acrobat PDF version (2.25MB) - Chairman's Statement
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- Acrobat PDF version (3.93MB) - Full Financial Report
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Introduction

I take great pleasure in reporting on the audited financial statements of National AIDS Council for the year ended 31st December 2010. The Council helped the country to cover ground in scaling up access to HIV & aids services in Zimbabwe.

Operating Environment

The operating environment was characterized by both economic and political stability. The economy registered growth of 8% compared to 5% in 2009, a development that resulted in increased AIDS Levy collections. Inflation for the year was 2.7%. the marginal increase in prices of goods and services kept plans realistic and made implementation of activities more predictable.

The world economic recession experienced in 2009 resulted in the reduction of funding of national multi-sectoral response to HIV by funding partners. In the process some implementing partners folded their operations leaving gaps that were not covered.

Regulatory Framework

The Council was established by Act of Parliament Chapter 15:14. It also administers the National Trust Fund (NATF). THE Fund is commonly referred to as AIDS levy and is 3% of pay as you earn (PAYE) and 3% of income tax levied on companies. The levy is collected on behalf of the Council by Zimbabwe Revenue Authority (ZIMRA) and remitted to NAC on a monthly basis.

The 2010 financial statements have been prepared in compliance with the provisions of the Public Finance Management Act (Chapter 22.19), the National AIDS Council Act (Chapter 15:14) and international Financial Reporting Standards (IFRS).

Resources in the NATF are utilized according to percentages that were set by NAC Board for each thematic area, which are as follows:

  • Prevention 10%
  • Care and treatment 50%
  • Enabling Environment 5%
  • M &E, Programme Management and Coordination 6%
  • Programme logistics support 29%
  • Grants from donors are used in line with the specific grant agreements

The Council procurements are guided by the State Procurement Board Act. The turn-around time for procuring high value items, particularly medicines and medical equipment averages three months and the funds earmarked for these procurements are invested in the money market to allow the due procurement process to be conclude/ finished.

Financial Performance

The total income that accrued during the period under review was $39.9 million compared to $21.3 million in the previous year. Of the $39.9 million $20.5 million came from the AIDS levy compared to $5.7 million in the previous year. The 259% increase in the collections was mainly through the increased capacity utilisation by industry and commerce. I want to applaud the law abiding citizens and corporate who paid their individual and corporate taxes on time for this remarkable achievement.

The donor community brought in $10.7 million to $15.6 million in 2009. Global Fund fight AIDS, TB and Malaria contributed $17.4 million compared to $14.3 million of this amount in the previous year. I wish to register my appreciation to the donors who brought into the country resources to help us respond accordingly to the pandemic.

Total expenditure stood at $42.8 million compared to $11.3 million in 2009. I am however pleased to note that 79% ($33.9 million) of this expenditure was on activities HIV &AIDS response initiatives. The two major components of the response namely prevention and care and treatment accounted for $9.4 million and $22.1 million respectively of the $39.3 million.

Response to HIV & AIDS

The country has 1.2 million people living with HIV with a prevalence rate of 13.6% compared to 14.3% in 2009. New infection dropped significantly to 0.85% during the period from about 1% to the previous year. 347 172 people against the total of 593 168 people who are in urgent need of treatment were on treatment. The number of people who need ARVs treatment increased because of change of treatment guidelines by World Health Organisation (WHO) during the course of the year. The new guidelines require patients with CD4 count level of 350 to be initiated on treatment as compared to CD4 count of 200 previously used. The 347 172 patients who were on treatment were funded as follows Global Fund 35%, US Government 18%, Expanded Support Programme led by the department of International Development (DFID) United Kingdom 22%, AIDS Levy 24% and others including private sector 1%. It is sad to note that 76% of our patients on treatment were funded by donors.

Visit the National Aids Council fact sheet

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