The Chairman of the Board is appointed by the President of the Revolutionary Government of Zanzibar, whereas other members of the Board are appointed by the Minister for Finance and Economic Affairs.
In order to conduct business in accordance with generally accepted practices the Directors do the followings:-
- They regularly attend to all scheduled Board Meeting;
- The Position of Chairman and Chief Executive Officer are held by different people;
- They make all strategic and policy decisions, the approval of budgets and monitoring of Performance;
Investment Committee: This committee is reasonable for the definition and implementation of Investment policy and authorization of the placement of investment funds.
Audit Committee: This committee is responsible for all matters relating to policy implementations, internal controls, internal and External audit processes. more
COmpany regulations
DISABLED PERSONS
The Corporation does not discriminate disabled persons. Disabled persons are recruited for those vacancies that they are able to fill.
DIRECTORS INTERESTS
The Director do not hold any interest in the issued and paid up share capital of the Corporation.
EMPLOYEES WELFARE
The Corporation had a staff compliment of 84 employees as at 31st December, 2007.They include professionals in various fields related to the Corporation’s business.
POLITICAL AND CHARITABLE DONATIONS
Donations amounting to TZS.9, 156,200 were given to various institutions in order to assist their developments. They include schools, hospitals, NGO’s and the Association of Tanzania Insurers.
AUDITORS
TAC Associates were the statutory auditors of the Corporation for the year 2007 appointed at the 107 th Board Meeting of the Corporation held on 23 rd December, 2006.The auditors are eligible for re-appointment
BY ORDER OF THE BOARD
INDEPENDENT AUDITOR' S REPORT TO THE SHAREHOLDERS
We have audited the accompanying financial statements of Zanzibar Insurance Corporation, which comprise the balance sheet as at 31 st December, 2007, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and summary of significant accounting policies and other explanatory notes. We received all the information and explanations which we considered necessary for the audit purposes.
Directors Responsibility for the Financial Statements
The Directors are responsible for the preparation of and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors' Responsibility
Our responsibility is to express on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgments, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial statements in order to design audit opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
We report that:
• Unreconciled Differences Between Underwriting Register and Financial Statements
A difference of TZS. 319,453,729 was noted between premium recorded in some underwriting registers and related premium income reported in the financial statements as shown below:
|
TZS |
Premium per Registers |
5,694,725,413 |
Premium in the financial Statements |
5,375,271,684 |
Difference |
319,453,729 |
No reconciliation was carried out to determine the cause of the differences.Consequently; we were unable to ascertain the accuracy and completeness of the reported income to the extent of
TZS.319, 453,729
• Unreconciled Amount with Reinsurers
A difference of TZS.92, 157,801 was noted between the balance reported in the financial statements and the corresponding balances confirmed by reinsurance companies. No reconciliation was carried out to determine the cause of the difference.Furthermore,replies were not received from three reinsurance companies which owe the Corporation a total amount of TZS.62,315,503.Consequently, we were unable to ascertain the existence and accuracy of amount due reinsurers amounting to TZS.628,558,870 as at 31 st December,2007.
Opinion
In our opinion, exept for the effect on the financial statements of the matters referred to in the preceding paragraphs, the financial statements give a true and fair view of the financial Reporting Standards, and comply with Public Investment Act, 2002 and the Insurance Act, 1996.