785. As an incentive to corporations and public sector institutions to comply with international accounting standards, the NBAA instituted the Best Presented Financial Reports Award. Under the scheme, corporations are encouraged to present their financial reports voluntarily to the NBAA for scrutiny by experts against the IFRS and IPAS. The entities found to comply most with the required standards are recognised and awarded the Certificate. 786. The CSAR indicates that Tanzania has laws and regulations in place to guide the activities banking and financial sector institutions (especially banks). These regulations promote good business ethics and are not necessarily under the CSAR category of internal and external codes. They can be seen, instead, as an umbrella under which these internal and external codes of ethics and standards, as well as those arising at the public/private sector interface, can be developed. These laws and regulations are also aimed at promoting transparency and accountability by corporations in the sector. 787. The regulations include: a) The Publication of Financial Statements Regulations (2000), designed to inform the general public about conditions and performance of banks and financial institutions. It provides for quarterly publication of balance sheets, income statements, and cash flow statements, as well as audited financial statements that were once required annually; b) The Independent Auditors Regulations (2000) that guide banks and financial institutions over the appointment of independent auditors recognised and registered by the National Board of Accountants and Auditors, and by the Bank of Tanzania; c) Internal Controls and Internal Audit Regulations (2005) that provide internal controls and internal audit functions for banking institutions, prescribing roles for various stakeholders in the internal control and audit functions; d) The 2001 Management of Risk Assets Regulations that provide prudential guidance on the management of risk assets and the basis for loss provisioning on loans and other risk assets; and, e) The 2001 Capital Adequacy Regulations that prescribe adequacy requirements for various forms of banking institutions in Tanzania. 788. The CSAR concludes that the banking system in Tanzania operates in line with international best practice and good business ethics. However, institutional support for the promotion and adoption of good corporate governance ethics, codes and best practices is generally weak, at best, and rather tenuous. In other countries, this form of institutional support comes from organisations like the Institute of Directors, the Centre/Institute for Corporate Governance. Although an Institute of Corporate Governance was, in fact, registered by BRELA, the CSAR observes that it is not functioning. 789. The CSAR further notes that information on the internal codes of ethics of companies is not readily available and only one company, Twiga Cement, gave some documented indication of the adoption of a Code of Ethics for its employees in its Annual Report for 2010. The CSAR therefore recommends that other companies be encouraged to do the same. 790. With regard to external codes of ethics, the CSAR observes that the NBAA not only issued a Code of Ethics for its members, these professionals are also expected to observe the code of ethics developed by the International Federation of Accountants to which the NBAA belongs. NBAA members are liable to disciplinary action for breach of these codes. The CSAR discloses that although Tanzania adopted these codes, the NBAA - the regulatory professional body - is overstretched and is unable to effectively undertake its responsibility of on-site and off-site inspection to ensure compliance with applicable codes. 791. The Engineering Registration Board (ERB) also has ethics, as well as codes and standards of practice for its members, and monitors how members practise engineering and construction works. However, these are applicable to Mainland Tanzania only. There is no equivalent professional association for engineers in Zanzibar where supervision and monitoring of engineering and construction works is undertaken by the relevant ministry. 792. The CSAR further observes that despite the fact that the codes of ethics were designed to enforce standards in engineering and construction, the number of buildings that collapse in Dar es Salaam show that these codes are not adhered to. This therefore confirms that there are gaps in the enforcement of codes and standards. 161