Co-operative Audit and Supervision (Amendment) Act, 2005 (No. 9 of 2005)

Section 5(1). Amend- 3. Section 4 of the Principal Act is amended by deleting the whole mentof section and substituting for it with the following section-

Section 4 Func- 4.-(1) Subject to this section, the functions of tions of the Corporation shall be- the Corpora- (a) to provide audit services to pre-cooperative tion groups, cooperative societies, private or public companies and other organizations; . (b) to provide supervision services to pre-cooperative groups and cooperative societies; (c) to fonnulate audit and accounting policies for adoption by the societies; (d) to carry out research and consultancy services; (e) to monitorother audit finns which shall conduct auditing services to pre-cooperative groups and cooperative societies; and No.9 Cooperative Audit and Supervision (Amendment) 2005 5 (t) to do anything which may facilitate' the proper services of the functions of the Corporation. (2) The Corporation shallbe responsible for auditing and shall perform such audit in conformity with the best practices of the accounts professional standards. (3) Except where it is otherwise provided in any other law, the Corporation, shallwithin twelve months of the end of the financial year concerned, audit accounts of any cooperative society. (4) The Corporation may provide its services, to cooperatives societies or any other person upon suchterms and conditions as may be agreed between the Corporation and suchcooperative societies or any suchotherJ'C'rson. (5) The Corporation may if required by a written direction of the Minister or Registrar so to do, provide its services uponsuchterms andconditions as maybe specified in such direction to a cooperative society. (6) The Corporation may, from time to time, appoint on such terms and conditions as it may think fit such other officers as it mayconsider necessary for the performance of its functions and may enter into such arrangements with persons or firms for supply of services or facilities to the Corporation as it mayconsider desirable. (7) The Corporation shall have power to do any other thing, which is necessary or expedient for its proper carrying out of its functions underthis Act. (8) Subject to special direction by the Minister in the exercise of its functions under subsection (4) above, the Corporation shallnotbe subject to the direction or control of any otherperson or authority. (9) The Corporation in exercising its functions, shall AetNo. make sure that the registered cooperative societies adhere to 20 of 2003 the best practice and code of conduct provided in the Schedule of the Cooperatives Societies Act;". 6 No.9 Cooperative Audit and Supervision (Amendment) 2005 " Amend- 4. Section 5 of the Principal Act is amended by deleting subsections mentof (3) and (4). Section S'" Addition 5. The Principal Act is amended by adding the following new of section section immediately below section 5- SA "Direc- SA. (I) TheCorporation may, from time to timewiththe torates, approval of the Board, appoint on suchtenns and conditions Depart- ment as it maythink fit such number of directors for the purpose and of serving directorates under the supervision of the Director appoin- General. tments of (2) The Corporation may, withthe approval of the Board Directors from time to time establish departments, divisions or sections for the purposes of enhancing the performance of the day to day activities of the Corporation. (3)The Board shall appoint a Director General whoshall be responsible for the day to day administration of the Corporation and Secretary to the Board. (4)TheBoardshall when appointing the Director General or directors use a search committee or any other procedure as may be prescribed from time to time." Amend- 6. Section 6 of the Principal Act is hereby amended- mentof

Section 6 (a) in subsection (1)by deleting that subsection andsubstituting for it the following subsection- "(1) The Director General shall,once a year, audit or cause to be audited by some person authorized by himor by general meeting or specified orderin writing the accounts of every registered primary society, federation and other middle cooperative societies as may be established by members;" No.9 Cooperative Audit and SUPervision (Amendment) 2005 7 (b) in subsection (4) by deleting the word "five" and substituting for it the word "fifty", 7. Section 7 ofthe Principal Act is hereby amended by deleting the Amend- word "of', appearing immediately afterthe words "The Registrar may" mentof section 7 in the first line and substituting for it the word "at". 8. Section 8(3) of the Principal Act is hereby amended by deleting Amend- the word "twenty" appearing immediately after the word "exceeding" mentof

Section 8 in the eighth line and substituting for it the words "two hundred". Amend- 9. Section 10 ofthe Principal Act is hereby amended- mentof Section (a) in subsection (1) by deleting the word "of' which appears 10 betweenthe words "officers"and "former' and substituting for it the word "or"; (b) in subsection (2) by deleting the word '10" which appears between the words "certificate" and "the Registrar" and substituting for it the words "by", 10. Section 11 of the Principal Act is hereby amended by deleting Amend- mentof the word "thirty" which appears between the words "exceeding" and section "thousand" and substituting for it the words "three hundred". 11 11. Section 12 of the Principal Act is herebyamended- Amend- mentof (a) in paragraph (a) by deleting words "such sums which may section derive" and substituting for them the words "fees derived"; 12 (b) in paragraph (b) by deleting the word "fees" and substituting for it the word "rent", 12. Section 15 of the Principal Act is herebyamended:- Amend- mentof (a) by deleting the whole of subsection (2) and substituting for section 15 it with the following- "(2) The financial year of the Corporation shall end on 3()1h June"; No.9 Cooperative Audit and Supervision (Amendment) 2005 8 (b) in paragraph (b) of subsection (8) by deleting the phrase "two hundred thousand" appearing between the words "exceeding" and "shillings" and substituting for it the phrase "two million"; Amend- 13. Section 16of the Principal Act is hereby amended- mentof section (a) in paragraph (a) by deleting the words "Secretariat andthe" 16 which appear before the word "Corporation"; (b) in subsection (2) by deleting the words ''Tanzania Audit Corporation" and substituting for them the words "external auditors appointed by the Board"; (c) in subsection (3) by deleting the words "endorsed with the certificate that it has been adopted" and substituting for them the words "signed by the Chairperson and one Director"; (d) in subsection (4) by deleting the words ''Tanzania Audit Corporation" and substituting for themthe words "external auditors". Amend- mentof 14. Section 17 of the Principal Act is hereby amended in section subsection (1) by deleting the words ''Tanzania Audit Corporation" and 17 substituting for themthe words "external auditors". Amend- 15. Section 21 of the Principal Act is hereby amended by deleting mentof section the whole section and substituting for it the following- 21 "Liabili- 21. Without prejudice to the provisions of Section 284A ties of of the Penal Code or of the Specified Officers (Recovery of members of the Debts) Act, 1970 or of the Parastatal Employees (Recovery Board of Debts) Act, 1974, no act done or omitted to be done by Cap. 16, any person who is a member of the Board or employee of AetNo. the Corporation or its agent shall, if done or omitted bona 30 of fide in the execution or purported execution of his duties as 1974 the member of the Board or employee of the Corporation or its agent, subject that person to any action, liability or demand otany kind". No.9 Cooperative Audit and Supervision (Amendment) 2005 9 16. The First Schedule to the Principal Act is amended- Amend- mentof theFirst (a) In paragraph 1 by deleting it and substituting for it the Schedule following new paragraph- "1. The Board shallconsistof- (a) the Chainnan who shall be appointed by the President; (b) one member representing the Controller and Auditor General; (c) the Registrar of Cooperative Societies; (d) the Secretary General of the Federation; (e) the Principal of the Moshi University College of Cooperative and Business Studies; (f) the Commissioner of Budget; (g) one member representing workers; and (a) two other members from secondary societies or any other cooperative society appointed by the Minister after consultation with the Federation of whom at leastone shallbe a woman." (b) in paragraph 8(2)by inserting theword"in" between the words "or" and ''his''; (c) in paragraph 14 by deleting the word "of" appearing in the second line immediately after the word "Director" and substituting for it the word "or". (d) in paragraph 15 by adding the following paragraph immediate- ly belowparagraph 15:- "16, The Board may establish committees' or sub-committees to assist it in exercising its functions."