reports/MWTS Report of Auditor General 2021/MWTS Report of Auditor General 2021.chunks.json

[{"content": "ENDED 30 TH JUNE 2021 \nTABLE OF CONTENTS \nLIST OF ACRONYMS", "metadata": {"headings": [{"headings_0": {"content": "REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT (MoWT) FOR THE FINANCIAL YEAR", "page": 0}}, {"headings_1": {"content": "THE REPUBLIC OF UGANDA", "page": 0}}], "page": 0, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 0}}, {"content": "I have audited the accompanying financial statements of the Ministry of Works and Transport (MoWT) which comprise the Statement of Financial Position as at 30 th June 2021, the Statement of Financial Performance, Statement of Changes in Equity and Statement of Cash Flows together with other accompanying statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.", "metadata": {"headings": [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}, {"headings_1": {"content": "REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2021", "page": 3}}], "page": 3, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 3}}, {"content": "In my opinion, the financial statements of the Ministry of Works and Transport (MoWT) for the financial year ended 30 th June 2021 are prepared, in all material respects, in accordance with Section 51 of the Public Finance Management Act, 2015 and the Financial Reporting Guide, 2018. \nBasis for Opinion", "metadata": {"headings": [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}, {"headings_1": {"content": "REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2021", "page": 3}}], "page": 3, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 4}}, {"content": "I conducted my audit in accordance with International Standards of Supreme Audit Institutions (ISSAIs). My responsibilities under those standards are further described in the Auditor\u2019s Responsibilities for the Audit of the Financial Statements Section of my report. I am independent of Ministry of Works and Transport in accordance with the Constitution of the Republic of Uganda 1995 (as amended), the National Audit Act, 2008, the International Organization of Supreme Audit Institutions (INTOSAI) Code of Ethics, the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B) (IESBA Code), and other independence requirements applicable to performing audits of Financial Statements in Uganda. I have fulfilled my other ethical responsibilities in accordance with the IESBA Code, and in accordance with other ethical requirements applicable to performing audits in Uganda. \nI believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. \nKey Audit Matters", "metadata": {"headings": [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}, {"headings_1": {"content": "REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2021", "page": 3}}], "page": 3, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 6}}, {"content": "Key Audit atters are those matters that, in my professional judgment, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have determined the matters described below to be key audit matters communicated in my report. \n1.0", "metadata": {"headings": [{"headings_0": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}, {"headings_1": {"content": "REPORT OF THE AUDITOR GENERAL ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE MINISTRY OF WORKS AND TRANSPORT FOR THE FINANCIAL YEAR ENDED 30TH JUNE, 2021", "page": 3}}], "page": 3, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 9}}, {"content": "On the 24 th of April 2020, Parliament approved the annual budget for MDAs and LGs that contained the specific resource envelope allocated to each vote to implement agreed on outputs. Subsequently, the PS/ST issued a Budget Execution Circular that communicated the budget strategy, policy, and administrative issues to guide the budget implementation for the financial year 2020/2021.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of the Approved Budget", "page": 3}}, {"headings_1": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}], "page": 3, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 11}}, {"content": "During my overall risk assessment exercise, I noted that MDAs and LGs are still experiencing challenges in implementing the budgets approved by parliament and policy guidance\u2019s issued by PS/ST, which has continued to affect the performance and credibility of the budget negatively. These challenges include; lack of strategic plans that are aligned to the National Development Plans, underperformance of revenue, implementation of off-budget activities, under absorption of funds, insufficient quantification of outputs, partial and non-implementation of outputs, diversion of funds and challenges in budget monitoring and reporting of performance.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of the Approved Budget", "page": 3}}, {"headings_1": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}], "page": 4, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 12}}, {"content": "I am aware that the Covid-19 Pandemic continues to significantly affect the implementation of several activities. Consequently, a number of activities were not implemented due to budget cuts and lockdown measures instituted to control the spread of the pandemic. It is against this background that the implementation of the budget was again considered a key audit area during the office-wide planning for the current audit year. \nThe Ministry of Works and Transport (MoWT) was established in May 2006 when Government re-organized Ministries, and is mandated to:", "metadata": {"headings": [{"headings_0": {"content": "Implementation of the Approved Budget", "page": 3}}, {"headings_1": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}], "page": 4, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 13}}, {"content": "- Plan, develop and maintain an economic efficient and effective transport infrastructure;\n- Plan, develop and maintain economic, efficient and effective transport services by road, rail, water and air;\n- Manage public works including government structures, and;\n- Promote good standards in the construction industry.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of the Approved Budget", "page": 3}}, {"headings_1": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}], "page": 4, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 15}}, {"content": "To achieve this mandate, MoWT planned to implement both recurrent and capital development activities. A review of the entity\u2019s ministerial policy statement and budget revealed that the entity had a revised approved budget of UGX 1,818.717 bn, out of which UGX 1,280.322 bn was warranted. Table 1 below shows a summary of the key outputs of the MoWT for the financial year 2020/21.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of the Approved Budget", "page": 3}}, {"headings_1": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}], "page": 4, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 16}}, {"content": "MoWT planned to accomplish its budgetary objectives by implementing sixty three (63) outputs with a total approved budget of UGX.1,818.717bn. I sampled three (3) Programmes; 0404 District, Urban and Community Access Roads; 0403 Construction Standards and Quality Assurance and Programme: 0402 Transport Services and Infrastructure with thirty seven (37) outputs with a total of one hundred sixty eight (168) activities and a budget of UGX 1,315.281bn representing 72.3% of the total approved budget for review. \nFrom the procedures undertaken, I noted the following: \ned activi \n543.  \n4 10.8 42.17 7 7 0 0 100 \n22 \nuts 1 \n236.  \neme 30 81.1 18.35 157 47 72 38 45.86 39 \nuts 2 \n3 8.1 0.0 0.0 4 0 0 4 100 \nnted 3", "metadata": {"headings": [{"headings_0": {"content": "Implementation of the Approved Budget", "page": 3}}, {"headings_1": {"content": "THE RT. HON. SPEAKER OF PARLIAMENT Opinion", "page": 3}}], "page": 5, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 17}}, {"content": "Non-implementation of planned activities implies that the expected services to the beneficiary communities were not attained. For example, the MoWT did not implement the following planned activities despite having received the required funds;", "metadata": {"headings": [{"headings_0": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}, {"headings_1": {"content": "eme", "page": 8}}], "page": 8, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 27}}, {"content": "1. Bridge inventory Data for BMS not collected.\n2. Bridge management System (BMS) Software not procured\n3. Upgrading to Bitumen Standard Sebbowa road (1.0km) in Makindye Ssabagabo Municipal Council was not implemented.", "metadata": {"headings": [{"headings_0": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}, {"headings_1": {"content": "eme", "page": 8}}], "page": 8, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 28}}, {"content": "4. Study for the determination of design load factors and traffic capacity assessment on selected DUCAR roads in Adjumani and Moyo under DINU not undertaken.", "metadata": {"headings": [{"headings_0": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}, {"headings_1": {"content": "eme", "page": 8}}], "page": 8, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 29}}, {"content": "The Accounting Officer explained that implementation of majority of the above activities was affected by the covid-19 pandemic and the nationwide lockdown during quarter two and three of the financial year. In addition, budget cuts by MOFPED affected the planned implementation of activities.", "metadata": {"headings": [{"headings_0": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}, {"headings_1": {"content": "eme", "page": 8}}], "page": 8, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 30}}, {"content": "1 Fully implemented output -All the activities within the outputs are fully implemented  \n2 Partially implemented Output-Activities within the output are either; Fully implemented, partially implemented or not implemented 3 Outputs not implemented-All the activities within the output not implemented at all  \n9", "metadata": {"headings": [{"headings_0": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}, {"headings_1": {"content": "eme", "page": 8}}], "page": 8, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 31}}, {"content": "for of (submitted in submission submission time/ delayed) 1 Quarter One 15/10/2020 16/01/2021 Delayed  \n2 Quarter Two 15/01/2021 17/02/2021 Delayed  \n3 Quarter Three 15/04/2021 25/05/2021 Delayed  \n4 Quarter Four 15/07/2021 03/08/2021 Delayed", "metadata": {"headings": [{"headings_0": {"content": "No Details Deadline Actual date Comment", "page": 10}}, {"headings_1": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}], "page": 10, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 32}}, {"content": "Failure to submit performance reports in time and failure to prepare monitoring reports contravenes the Treasury Instructions and affect timely tracking and evaluation of performance.", "metadata": {"headings": [{"headings_0": {"content": "No Details Deadline Actual date Comment", "page": 10}}, {"headings_1": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}], "page": 10, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 33}}, {"content": "The Accounting Officer explained that the delays were as a result of the nationwide lockdown due to the COVID-19 outbreak that affected timely validation of data and reporting.", "metadata": {"headings": [{"headings_0": {"content": "No Details Deadline Actual date Comment", "page": 10}}, {"headings_1": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}], "page": 10, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 34}}, {"content": "4.1.8 Accuracy of Performance reports submitted  \nI advised the From my review of the annual performance reports and physical Accounting Officer to inspections/verification of outputs reported coupled with interviews, I report  \naccurate noted inconsistencies in the reported performance, as shown in the performance.  \nTable below: \nOutput: 40402  \n271No. road camps Only 147. road camps surveyed Monitoring and surveyed  \ncapacity building", "metadata": {"headings": [{"headings_0": {"content": "No Details Deadline Actual date Comment", "page": 10}}, {"headings_1": {"content": "3 779 60.5 Total 100 168 54 72 42 7 .61 2", "page": 8}}], "page": 10, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 35}}, {"content": "contrary to the reported 271 road camps that were reported by support for management  \ndistrict road  \n30No. road reserves Only 24 road reserves out of the works surveyed planned 40 surveyed. This is contrary to what was reported in the performance report by management.  \nRoads Database of  \nOnly Roads Database of 5 Districts 90No. Districts  \nwere updated  \nupdated  \n4No. MoWT trained None of the 20 planned MoWT in HDM4  \nstaff were trained in HDM4 And \nOutput: 40304  \n145km of District \nCivil Cad 3D", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 10, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 37}}, {"content": "Only 20km of District Roads were Monitoring and Roads gravelled in gravelled in Kapelebyong, Capacity Building Kapelebyong,  \nKaberemaido, Serere, Butaleja, Support Kaberemaido, Tororo, Katakwi, Nebbi, Apac, Serere,Butaleja, Oyam, Arua, Napak, Moroto, Tororo, Katakwi, Masaka, Mubende, Kiboga, Nebbi, Apac,Oyam, Butambala, Nakaseke, Arua, Napak,  \nNakasongola using Force Account; Moroto,  \nMasaka,Mubende,  \nKiboga, Butambala,  \nNakaseke,Nakasong  \nola using Force  \nAccount;", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 10, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 40}}, {"content": "100 Km of  \n50 Km of community access roads community access in Arua, roads in Arua,  \nKyegegwa,Kakumiro,Kasese,Ntoro Kyegegwa,Kakumiro ko, Rubanda, Kayunga, Kasese,Ntoroko,Ru Mukono,Buikwe, Luwero, Wakiso, banda, Kayunga, Soroti, Mayuge, Kamuli, Kaliro, Mukono,Buikwe,  \nBuyende,Namutumba,Amuria,Alep Luwero, Wakiso,  \ntong, Kwen,Budaka, Tororo were Soroti, Mayuge, rehabilitated;  \nKamuli, Kaliro,  \nBuyende,Namutumb  \na,Amuria,Aleptong,  \nKwen,Budaka,  \nTororo rehabilitated  \nOutput: 40301 Construction  \nConstruction Standard issues were Policies, laws, Standard issues disseminated to 35 districts guidelines, plans disseminated to 135 contrary to the reported 135  \nand strategies districts  \nOutput: 40303 1,100  \nNo. 280 construction materials tests Monitoring Construction reports produced;  \nCompliance of Materials testing  \nConstruction reports produced  \nStandards and 06 No. projects Only 4 Projects were Assessed for undertaking  \nAssessed for Gender  \nResearch and Equity  \nCompliance \nGender and Equity Compliance \nOutput: 40304 40No. Monitoring and Technically", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 11, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 41}}, {"content": "MDAs Only 10 technical support services were rendered to MDAs and Capacity Building Supported and Reports prepared.  \nSupport where necessary  \nreport prepared  \n6No.  \nbuildings Only 1 building was assessed for assessed for structural integrity  \nstructural integrity  \nOutput: 40306 5No. investigations Only 1 investigation on Makerere Construction on  \nbuilding University fire was conducted and related accidents construction and report prepared.  \ninvestigated  \nfire-related  \naccidents conducted  \nand  \nreports  \nprepared", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 11, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 44}}, {"content": "Inaccurate reporting of performance misleads the users of this financial information and casts doubt on the reliability and authenticity of the information (both Financial and Non-financial) presented by the entity.", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 11, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 45}}, {"content": "The Accounting Officer explained that the inconsistencies in reporting were as a result of the delay by MOFPED to undertake timely adjustments on the Integrated Financial Management System (IFMS) in the quarter summary analysis report (BIG Report) to enable the entity use adjusted expenditure figures as at 30 th July before production of the vote budget performance report. In addition, the Accounting Officer explained that adjustments are delayed by two months after end of the financial year (August-September) yet the 4 th quarter cumulative annual report is produced not later than 30 th July of every financial year. \nEmphasis of Matter", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 11, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 46}}, {"content": "Without modifying my opinion, I would like to draw the readers\u2019 attention to the following matter(s) which have been disclosed in the financial statements of the Ministry:", "metadata": {"headings": [{"headings_0": {"content": "Verified Achieved Target by the Audit team", "page": 10}}, {"headings_1": {"content": "Output Reported Target in the Q4 report", "page": 10}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 48}}, {"content": "Review of Receivables in the Statement of Financial Position and Note 19 revealed that the Ministry had receivables worth UGX.1,570,776,843 out of which those worth UGX.623,855,947 were outstanding at the end of the previous year. \nThe likelihood of eventual clearance of the receivables that have been outstanding for over a year therefore seemed remote.", "metadata": {"headings": [{"headings_0": {"content": "2.0 Long outstanding advances", "page": 12}}, {"headings_1": {"content": "Verified Achieved Target by the Audit team", "page": 10}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 49}}, {"content": "The Accounting Officer explained that the figure included the loss which was incurred in 2008, where the MoFPED staff that were attached as IT support, created a fictitious company on IFMS. \nI advised the Accounting Officer to follow up on the clearance of the advances as soon as possible.", "metadata": {"headings": [{"headings_0": {"content": "2.0 Long outstanding advances", "page": 12}}, {"headings_1": {"content": "Verified Achieved Target by the Audit team", "page": 10}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 51}}, {"content": "In addition to the matters raised above, I consider it necessary to communicate the following matters other than those presented or disclosed in the financial statements: \n3.0", "metadata": {"headings": [{"headings_0": {"content": "Other Matter", "page": 12}}, {"headings_1": {"content": "2.0 Long outstanding advances", "page": 12}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 53}}, {"content": "The inspection of the Ministry\u2019s Regional Mechanical Workshops during August and September 2021 revealed that twenty one (21) units of district road equipment had been lying in the workshops\u2019 yards for more than a year without repair. The equipment included: thirteen (13) motor graders of different models; four (4) bulldozers; One (1) pickup; two (2) dump trucks, and one (1) wheel loader. \nIn addition, requests for 136 tyres for running district road equipment were not honoured during the year.", "metadata": {"headings": [{"headings_0": {"content": "Failure to maintain district road equipment", "page": 12}}, {"headings_1": {"content": "Other Matter", "page": 12}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 55}}, {"content": "This means that the districts that own the concerned equipment could not maintain their roads and deliver such critical service to the country as planned. In addition, the cost of repair is escalating because other parts also become faulty when the equipment is grounded for a long time.", "metadata": {"headings": [{"headings_0": {"content": "Failure to maintain district road equipment", "page": 12}}, {"headings_1": {"content": "Other Matter", "page": 12}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 57}}, {"content": "The Accounting Officer explained that the amount budgeted and received to maintain road equipment represents 30% of the total funds (UGX44.6bn) required for equipment maintenance. Hence, during the FY 2020/21, the Ministry prioritized mainly the servicing of the newly acquired equipment from Japan leaving out the older equipment (from China) that requires major repairs but have no budget. Maintenance of district equipment is one of the critically underfunded activities in the Ministry.", "metadata": {"headings": [{"headings_0": {"content": "Failure to maintain district road equipment", "page": 12}}, {"headings_1": {"content": "Other Matter", "page": 12}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 58}}, {"content": "The Accounting Officer also said that it is true that a number of road equipment in the districts lack tyres. This is mainly due to an inadequate maintenance budget for the equipment.", "metadata": {"headings": [{"headings_0": {"content": "Failure to maintain district road equipment", "page": 12}}, {"headings_1": {"content": "Other Matter", "page": 12}}], "page": 12, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 59}}, {"content": "I advised the Accounting Officer to liaise with the responsible authorities to obtain the necessary funding for the full maintenance of the equipment so that the equipment operates and serves the Districts. \n4.0", "metadata": {"headings": [{"headings_0": {"content": "Failure to maintain district road equipment", "page": 12}}, {"headings_1": {"content": "Other Matter", "page": 12}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 60}}, {"content": "Audit inspection and review of the East African Civil Aviation Academy (EACAA) in Soroti; and review of the Academy\u2019s assets register and aircraft annual serviceability status report of 06/09/2021 revealed that 3 out of the 9 aircrafts were grounded due to non- repair and maintenance. The aircrafts were (registration numbers): 5X-RWE grounded due to a defective fuel injector pump; 5X-UAN grounded for mandatory structural modification and 5X -YKM grounded for a propeller overhaul.", "metadata": {"headings": [{"headings_0": {"content": "Grounded aircrafts used for training", "page": 13}}, {"headings_1": {"content": "Failure to maintain district road equipment", "page": 12}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 62}}, {"content": "It was further noted that their certificates of airworthiness (C and A) for had expired. This made it difficult for the Academy to offer practical training.", "metadata": {"headings": [{"headings_0": {"content": "Grounded aircrafts used for training", "page": 13}}, {"headings_1": {"content": "Failure to maintain district road equipment", "page": 12}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 63}}, {"content": "Management explained that this was due to reasons beyond their control such as delay by the foreign contractor to commence repairs of 5X-UAN 310 due to the closure of the boarders immediately after the signing of the contract. Management further stressed that the academy had challenges in the procurement of spares for the aircraft due to global delays due to the effects of COVID-19.", "metadata": {"headings": [{"headings_0": {"content": "Grounded aircrafts used for training", "page": 13}}, {"headings_1": {"content": "Failure to maintain district road equipment", "page": 12}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 64}}, {"content": "I advised the Accounting Officer to follow up with the contractor to ensure that the aircrafts are repaired as soon as the situation normalizes.", "metadata": {"headings": [{"headings_0": {"content": "Grounded aircrafts used for training", "page": 13}}, {"headings_1": {"content": "Failure to maintain district road equipment", "page": 12}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 65}}, {"content": "The Accounting Officer of MoWT is responsible for the other information. The other information comprises the statement of responsibilities of the Accounting Officer and the commentaries by the Head of Accounts and the Accounting Officer, and other supplementary information. The other information does not include the financial statements and my auditors\u2019 report thereon. My opinion on the financial statements does not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.", "metadata": {"headings": [{"headings_0": {"content": "Other Information", "page": 13}}, {"headings_1": {"content": "Grounded aircrafts used for training", "page": 13}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 66}}, {"content": "In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially consistent with the financial statements or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude that there is a material misstatement of this other information; I am required to report that fact. \nI have nothing to report in this regard.", "metadata": {"headings": [{"headings_0": {"content": "Other Information", "page": 13}}, {"headings_1": {"content": "Grounded aircrafts used for training", "page": 13}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 67}}, {"content": "Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 45 of the Public Finance Management Act, 2015, the Accounting Officer is accountable to Parliament for the funds and resources of the Ministry.", "metadata": {"headings": [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}, {"headings_1": {"content": "Other Information", "page": 13}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 69}}, {"content": "The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Public Finance Management Act, 2015 and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.  \n14", "metadata": {"headings": [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}, {"headings_1": {"content": "Other Information", "page": 13}}], "page": 13, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 70}}, {"content": "In preparing the financial statements, the Accounting Officer is responsible for assessing the Ministry\u2019s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Accounting Officer has a realistic alternative to the contrary. \nThe Accounting Officer is responsible for overseeing the Ministry\u2019s financial reporting process.", "metadata": {"headings": [{"headings_0": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}, {"headings_1": {"content": "Other Information", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 71}}, {"content": "My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor\u2019s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will always detect a material misstatement, when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users, taken on the basis of these financial statements.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 73}}, {"content": "As part of an audit in accordance with ISSAIs, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:-", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 74}}, {"content": "- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 75}}, {"content": "- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Ministry\u2019s internal control.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 76}}, {"content": "- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 77}}, {"content": "- Conclude on the appropriateness of management\u2019s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Ministry\u2019s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor\u2019s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor\u2019s report. However, future events or conditions may cause the Ministry to cease to continue as a going concern.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 78}}, {"content": "- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 79}}, {"content": "I communicate with the Accounting Officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 14, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 80}}, {"content": "I also provide the Accounting Officer with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 15, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 81}}, {"content": "From the matters communicated with the Accounting Officer, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor\u2019s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. \nOther Reporting Responsibilities", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 15, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 82}}, {"content": "In accordance with Section 19 (1) of the National Audit Act, 2008, I report to you, based on my work described on the audit of Financial Statements, that; except for the matters raised in compliance with legislation section below, and whose effect has been considered in forming my opinion on financial statements, the activities, financial transactions and information reflected in the financial statements that have come to my notice during the audit, are in all material respects, in compliance with the authorities which govern them.", "metadata": {"headings": [{"headings_0": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}, {"headings_1": {"content": "Management Responsibilities for the Financial Statements", "page": 13}}], "page": 15, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 84}}, {"content": "In accordance with Section 13 of the NAA 2008, I have a responsibility to report material findings on the compliance of the Authority with specific matters in key legislations. I performed procedures primarily to identify findings but not to gather evidence to express assurance. \nThe material findings in respect of the compliance criteria for the applicable subject matters are as follows; \n5.0", "metadata": {"headings": [{"headings_0": {"content": "Report on the Audit of Compliance with Legislation", "page": 15}}, {"headings_1": {"content": "Auditor\u2019s Responsibilities for the Audit of the Financial Statements", "page": 14}}], "page": 15, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 85}}, {"content": "Paragraph 11 of the land acquisition procedure of Appendix 1 in the Guidelines for Compensation Assessment under Land Acquisition (GCALA) of June 2017 states that the period from final report approval to payment of compensation awards shall not exceed 6 months.", "metadata": {"headings": [{"headings_0": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}, {"headings_1": {"content": "Report on the Audit of Compliance with Legislation", "page": 15}}], "page": 15, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 88}}, {"content": "The valuation report for 2,378 PAPs with a total compensation sum of UGX 29.2 billion was approved by the Chief Government Valuer in October 2018. The review of documents indicated that a total of 1,253 PAPs with a total compensation value of UGX.19.5 billion had been paid by 30 th June 2021. As a result a total of 1,125 PAPs with a total compensation value of UGX.9.7 billion have remained unpaid for about three years. \nDelayed compensation of PAPs delays implementation of the project leading to escalation of the project cost.", "metadata": {"headings": [{"headings_0": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}, {"headings_1": {"content": "Report on the Audit of Compliance with Legislation", "page": 15}}], "page": 15, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 89}}, {"content": "The Accounting Officer explained that the Ministry budgeted for the remaining funds UGX 9.7Bn in the FY 2021/22 that was approved by the Ministry of Finance, Planning and Economic Development. The Ministry has compensated 1,704 PAPs out of 2,378 PAPS as at 30 th October 2021. The remaining 674 PAPS will be compensated this FY 2021/22.", "metadata": {"headings": [{"headings_0": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}, {"headings_1": {"content": "Report on the Audit of Compliance with Legislation", "page": 15}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 91}}, {"content": "I advised the Accounting Officer to ensure that the budgeted funds are realised so that compensation is completed and works start in the FY 2021/2022. \n6.0", "metadata": {"headings": [{"headings_0": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}, {"headings_1": {"content": "Report on the Audit of Compliance with Legislation", "page": 15}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 92}}, {"content": "Section 15(1) of the PFMA, 2015 provides that \u201cafter approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash-flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament\u201d.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of unplanned procurements", "page": 16}}, {"headings_1": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 94}}, {"content": "In addition, section 21(1) provides that \u201can Accounting Officer shall, based on the annual cash-flow plan issued by the Secretary to the Treasury under section 15, plan and manage the activities as indicated in the policy statement of the vote\u201d. \nA review of procurement records revealed that procurements worth UGX 1,772,908,757 which were not planned were implemented by the Ministry.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of unplanned procurements", "page": 16}}, {"headings_1": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 95}}, {"content": "Implementation of unplanned procurements is not only contrary to the PPDA Act, but it negatively affects the implementation of planned procurements and defeats the purpose for procurement planning. \nAlthough the Accounting Officer explained that the the procurements were planned, I was not availed evidence to support the assertion.", "metadata": {"headings": [{"headings_0": {"content": "Implementation of unplanned procurements", "page": 16}}, {"headings_1": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 97}}, {"content": "I advised the Accounting Officer to always implement the budget basing on the procurement plans and work plan as approved by Parliament. \n7.0", "metadata": {"headings": [{"headings_0": {"content": "Implementation of unplanned procurements", "page": 16}}, {"headings_1": {"content": "Delayed compensation of PAPs for the development of the New Kampala Port in Bukasa", "page": 15}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 99}}, {"content": "The review of procurement reference number MoWT/WRKS/2018/19/00191 indicated that the Ministry entered into a contract with M/s Probase Manufacturing SDN BHD and Abubaker Technical Services and General Supplies Limited JV on 16 th May, 2019 for piloting the use of probase technology for construction of roads in Uganda. The contract was for designing and building Kayunga - Nabuganyi and Nansana \u2013 Kireka - Bbira roads at a total cost of UGX.45,349,361,632. The contract provided that the works were to be completed by 01/07/2020.", "metadata": {"headings": [{"headings_0": {"content": "Delayed completion of road construction project", "page": 16}}, {"headings_1": {"content": "Implementation of unplanned procurements", "page": 16}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 101}}, {"content": "However, the examination of records indicated that contract spilled over into the year under review and t payments amounting to UGX.10,907,877,818 were made during the year. \nThe intended objective of piloting the technology in Uganda was not achieved. \nThe Accounting Officer explained that the contract implementation spilled over to the year under review due to the following reasons;", "metadata": {"headings": [{"headings_0": {"content": "Delayed completion of road construction project", "page": 16}}, {"headings_1": {"content": "Implementation of unplanned procurements", "page": 16}}], "page": 16, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 102}}, {"content": "1. The contractor encountered unforeseen adverse physical conditions along the swamp section on the Kayunga \u2013 Nabuganyi road (20.2km) such as soft ground high water table measuring up to a length of 4.65km which necessitated special treatment such as the use of rockfill, geosynthetics, and embankment construction to avert possible premature defects and failure of the road. The extra works required extra time for both construction and also allow for consolidation of the new fill sections to warrant stability. \n2. The employer required additional works.", "metadata": {"headings": [{"headings_0": {"content": "Delayed completion of road construction project", "page": 16}}, {"headings_1": {"content": "Implementation of unplanned procurements", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 105}}, {"content": "3. The outbreak of the COVID-19 pandemic across the world led to difficulty in site operations, worker movements and general mobility of supplies. For instance, the factories manufacturing inputs for the technology (Probase TX-85 soil stabilizers and Probase PB-65 sealants) in Malaysia were closed to curb the spread of the virus for some time and on reopening the factories, shipping schedules became a challenge. \nA lot of time lost is attributed to that.", "metadata": {"headings": [{"headings_0": {"content": "Delayed completion of road construction project", "page": 16}}, {"headings_1": {"content": "Implementation of unplanned procurements", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "list", "index": 107}}, {"content": "I advised the Accounting Officer to closely supervise the contract to ensure that the project is completed by the extended timeline. \n8.0", "metadata": {"headings": [{"headings_0": {"content": "Delayed completion of road construction project", "page": 16}}, {"headings_1": {"content": "Implementation of unplanned procurements", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 109}}, {"content": "Section 15(1) of the PFMA, 2015 provides that \u201cafter approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cash-flow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament\u201d.", "metadata": {"headings": [{"headings_0": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}, {"headings_1": {"content": "Delayed completion of road construction project", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 111}}, {"content": "In addition, section 21(1) provides that \u201can Accounting Officer shall, based on the annual cash-flow plan issued by the Secretary to the Treasury under section 15, plan and manage the activities as indicated in the policy statement of the vote\u201d.", "metadata": {"headings": [{"headings_0": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}, {"headings_1": {"content": "Delayed completion of road construction project", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 112}}, {"content": "A review of the procurement plan and the procurement reports to PPDA indicated that procurements worth UGX.7,465,000,000 which were planned were not implemented.", "metadata": {"headings": [{"headings_0": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}, {"headings_1": {"content": "Delayed completion of road construction project", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 113}}, {"content": "The Ministry did not manage the procurement activities as indicated in the policy statement and hence not all planned services were delivered. \nThe Accounting Officer explained that some procurements were not implemented due to budget cuts and thus lack of funds.", "metadata": {"headings": [{"headings_0": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}, {"headings_1": {"content": "Delayed completion of road construction project", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 114}}, {"content": "I advised the Accounting Officer to always liaise with the responsible authorities to ensure that the Ministry\u2019s approved budget is fully availed. \n9.0", "metadata": {"headings": [{"headings_0": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}, {"headings_1": {"content": "Delayed completion of road construction project", "page": 16}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 116}}, {"content": "Objective 1 of the project strategic plan for 2016-2020 was to acquire 5200 acres of land free of encumbrances at an estimated cost of UGX 534,600,000,000 for the Right of Way (ROW) for the construction of Kampala \u2013 Malaba SGR route by October 2016.", "metadata": {"headings": [{"headings_0": {"content": "Delayed acquisition of land for the Right of Way (RoW) for the SGR project", "page": 17}}, {"headings_1": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}], "page": 17, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 118}}, {"content": "However, the review of documents indicated that only 1,295.98 (24.9%) acres of land had been acquired at a cost of UGX.95,361,767,388 (18%) as of September 2021. \nIt was further noted that the project had not acquired titles for the pieces of land already paid for.", "metadata": {"headings": [{"headings_0": {"content": "Delayed acquisition of land for the Right of Way (RoW) for the SGR project", "page": 17}}, {"headings_1": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}], "page": 18, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 119}}, {"content": "Delayed acquisition of the Right of Way is likely to delay project implementation. As a result, the intended objectives of the project may not be achieved.", "metadata": {"headings": [{"headings_0": {"content": "Delayed acquisition of land for the Right of Way (RoW) for the SGR project", "page": 17}}, {"headings_1": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}], "page": 18, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 121}}, {"content": "The Accounting Officer explained that currently, land acquisition is one of the core activities of the project. Valuation reports for the section between Tororo-Mayuge and Kakubansiri village in Buikwe district and Fish Ponds worth UGX 139.35bn were approved by the CGV starting from 2016. The amount paid to Project Affected Persons (PAPs) as compensation for land and property is directly dependent on the approved budgets and subsequent releases to the project. The releases however have been going down in comparison to the annual budgets. For example: in 2016/2017, UGX46.8bn was released out a budget of UGX113.5bn; in 2017/2018, UGX25.5bn was released out of a budget of UGX72.5bn; in 2018/2019, UGX25bn was released out of a budget of UGX39.2bn and in 2019/2020, UGX16.8bn was released out of a budget of UGX20bn. It is only in 2020/2021 where the budget was UGX19bn and all of it was released.  \nThe Accounting Officer further explained that due to the passing of time from 2016 when assessment and valuation of PAPs in the section between Jinja-Kampala was done, reassessment and revaluation is on-going as advised by the CGV on this section where the compensation estimate was UGX 432.47bn in 2016.", "metadata": {"headings": [{"headings_0": {"content": "Delayed acquisition of land for the Right of Way (RoW) for the SGR project", "page": 17}}, {"headings_1": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}], "page": 18, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 122}}, {"content": "I advised the Accounting Officer to obtain and transfer land titles to Government for the land paid for and expedite the acquisition of all the land needed for the project. \nJohn F.S. Muwanga \n24 th December, 2021", "metadata": {"headings": [{"headings_0": {"content": "Delayed acquisition of land for the Right of Way (RoW) for the SGR project", "page": 17}}, {"headings_1": {"content": "Planned procurements not implemented \u2013 UGX 7,465,000,000", "page": 17}}], "page": 18, "document_name": "MWTS Report of Auditor General 2021", "type": "paragraph", "index": 123}}, {"content": "|    | Acronym   | Meaning                                                       |\n|---:|:----------|:--------------------------------------------------------------|\n|  0 | BEC       | Budget Execution Circular                                     |\n|  1 | Bn        | Billion                                                       |\n|  2 | CGV       | Chief Government Valuer                                       |\n|  3 | EACAA     | East African Civil Aviation Academy                           |\n|  4 | GCALA     | Guidelines for Compensation Assessment under Land Acquisition |\n|  5 | GoU       | Government of Uganda                                          |\n|  6 | HR        | Human Resource                                                |\n|  7 | ICT       | Information & Communication Technology                        |\n|  8 | INTOSAI   | International Organization of Supreme Audit Institutions      |\n|  9 | ISSAIs    | International Standards of Supreme Audit Institutions         |\n| 10 | KCCA      | Kampala Capital City Authority                                |\n| 11 | MDAs      | Ministries, Departments and Agencies                          |\n| 12 | MoFPED    | Ministry of Finance, Planning and Economic Development        |\n| 13 | MoWT      | Ministry of Works and Transport                               |\n| 14 | NAA       | National Audit Act                                            |\n| 15 | NTR       | Non-Tax Revenue                                               |\n| 16 | OAG       | Office of the Auditor General                                 |\n| 17 | PAPs      | Project Affected persons                                      |\n| 18 | PBS       | Program Budgeting System                                      |\n| 19 | PDU       | Procurement & Disposal Unit                                   |\n| 20 | PFMA      | Public Finance Management Act                                 |\n| 21 | PPDA      | Public Procurement & Disposal of Public Assets                |\n| 22 | PS/ST     | Permanent Secretary / Secretary to the Treasury               |\n| 23 | ROW       | Right of way                                                  |\n| 24 | SGR       | Standard Gauge Railway                                        |\n| 25 | TI        | Treasury Instructions                                         |\n| 26 | UCF       | Uganda Consolidated Fund                                      |\n| 27 | UGX       | Uganda Shilling                                               |", "metadata": {"page": 3, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    |   No | Details                                                                         | Budget (UGX) \u201c000\u201d   |   Cumulative percentage share of the total approved budget |\n|---:|-----:|:--------------------------------------------------------------------------------|:---------------------|-----------------------------------------------------------:|\n|  0 |    1 | 040107 Safety of Navigation Programs Coordinated and Monitored                  | 25,633,264           |                                                        1.4 |\n|  1 |    2 | 040176 Purchase of Office and ICT Equipment Including Software                  | 19,450,000           |                                                        2.5 |\n|  2 |    3 | 040252 Rehabilitation of Upcountry Aerodromes by UCAA and Wages for UNACL Staff | 175,383,950          |                                                       12.1 |\n|  3 |    4 | 040254 Development of Standard Gauge Railway (SGR) Infrastructure               | 19,000,000           |                                                       13.2 |\n|  4 |    5 | 040273 Roads, Streets and Highways                                              | 200,450,000          |                                                       24.2 |\n|  5 |    6 | 040275 Purchase of Motor Vehicles and Other Transport Equipment                 | 539,719,100          |                                                       53.9 |\n|  6 |    7 | 040280 Construction / Rehabilitation of Inland Water Transport Infrastructure   | 92,036,439           |                                                       58.9 |\n|  7 |    8 | 040281 Construction / Rehabilitation of Railway Infrastructure                  | 89,811,712           |                                                       63.9 |", "metadata": {"page": 5, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | 9    | 040283 Border Post Rehabilitation / Construction                      | 298,883,115   |   80.3 |\n|---:|:-----|:----------------------------------------------------------------------|:--------------|-------:|\n|  0 | 10.0 | 040304 Monitoring and Capacity Building Support                       | 10,598,160    |   80.9 |\n|  1 | 11.0 | 040402 Monitoring and Capacity Building                               | 13,288,450    |   81.6 |\n|  2 | 12.0 | 040473 Roads, Streets and Highways                                    | 116,432,487   |   88   |\n|  3 | 13.0 | 040474 Major Bridges                                                  | 23,461,350    |   89.3 |\n|  4 | 14.0 | 040481 Urban Roads Construction and Rehabilitation (Bitumen Standard) | 11,967,419    |   90   |\n|  5 | 15.0 | 040505 Operation and Maintenance of MV Kalangala Ship                 | 35,488,000    |   91.9 |\n|  6 | 16.0 | 040551 Transfers to Regional Mechanical Workshops                     | 16,588,600    |   92.8 |\n|  7 | 17.0 | 044919 Human Resource Management Services                             | 24,080,823    |   94.1 |\n|  8 |      | Total                                                                 | 1,712,272,869 |   94.1 |", "metadata": {"page": 6, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | No    | Observation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Recommendations                                                                                                                               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 0 | 4.1.1 | Existence of a Strategic plan that is aligned to NDP-III Paragraph 5 of the budget execution circular for the financial year 2020/2021 cites poor alignment of Government Budgets with the National Development Plans. The PS/ST urges Accounting Officers to ensure that all activities for Financial Year 2020/2021 are aligned with NDP III and implemented accordingly. Regulation 26 (1) of the National Planning Authority (development of Plans) regulations require entities to submit to NPA their five-year development plans for certification before approval. being the first year of implementation of the NDP-III, the entity was expected to prepare a strategic plan aligned to NDP III and ensure that the plan is approved. The strategic plan would then form the basis of the preparation of the entity\u2019s annual plans. document review and interviews, I noted that the entity had prepared a strategic plan. However, this had not been approved by NPA by the end of the year under review. is a risk that activities implemented during the FY 2020/21 were not aligned to NDP III, which negatively affects the achievement of NDP III objectives. Accounting Officer pledged to work closely with NPA in-order for This Through There The | I advised the Accounting Officer to follow up with NPA for the approval of the Strategic plan to ensure achievement of the NDP III objectives |", "metadata": {"page": 6, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | No         | Observation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Recommendations                                                                                                                                                                                                      |\n|---:|:-----------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n|  0 | Unnamed: 0 | the strategic plan to be approved.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Unnamed: 2                                                                                                                                                                                                           |\n|  1 | 4.1.2      | I reviewed the NTR estimates, revenue sources and rates charged at vote level for the financial year 2020/2021 and noted that MoWT did not budget to collect NTR during the year under review. the review of financial statements indicated that NTR amounting to UGX. 6,995,230,920 was collected during the year under review. for NTR collections at the vote level results in an aggregate revenue under budgeting at the Treasury level, which negatively affects planning at a Government-wide level. Accounting Officer explained that the NTR figures were not captured because PBS was not formatted to capture NTR estimates. of GoU receipts The Ministry budgeted to receive UGX.1,818.717Bn (including donor funding) out of which UGX.1,4905.60Bn (UGX1,280.322bn GOU warrants and UGX 210.77bn donor funding) was warranted/availed resulting in a shortfall of UGX.327.625bn, which is 18% of the revised budget. Revenue shortfalls affect the implementation of planned activities. Revenue Performance Performance of NTR However, Non-budgeting The Performance | I advised the Accounting Officer to always ensure that NTR is budgeted for. collection                                                                                                                               |\n|  2 | 4.1.3      | Out of the total warrants of UGX.1,280.322Bn received during the financial year, UGX.1,067.967Bn was spent by the entity resulting in an unspent balance of UGX. 212.355Bn representing absorption level of 83.4%. The unspent funds were swept back to the consolidated fund as required by the PFMA. The funds were meant for activities that were not fully implemented by the end of the financial year. Absorption of funds further noted that the entity did not seek a revision of its budget and work plan as provided for by section 17 (3) of the PFMA2015. I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | I advised the Accounting Officer to ensure that all funds availed are absorbed. Where reallocations are found necessary, I the Accounting Officer to seek for revision of the entity\u2019s budget and work plan. advised |", "metadata": {"page": 7, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | No    | Observation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Recommendations                                                                                                                                                                                   |\n|---:|:------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n|  0 | 4.1.4 | Quantification of outputs/activities Section 13 (15, b) of the PFMA 2015 states that a policy statement submitted by a vote shall contain the annual and three months\u2019 work plans, outputs, targets and performance indicators of the work plans. Regulation 11 (3) of PFMR 2016 requires that a vote prepares a work plan that indicates the outputs of the vote for the financial year; the indicators to be used to gauge the performance of the outputs and funds allocated to each activity. assess the performance of an output, all activities supporting the output must be quantified. reviewed the extent of quantification of outputs and activities for a sample of thirty seven (37) outputs with a total of one hundred sixty I To | I commended the Accounting Officer for ensuring that all activities and out- puts are fully quantified at planning to facilitate performance measurement. level I advised the Accounting However, |", "metadata": {"page": 7, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | 0                                                                                                                                                                             | 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2                                                                                                                               |\n|---:|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------|\n|  0 | Unnamed: 0                                                                                                                                                                    | eight (168) activities and expenditure of UGX. 779.62Bn and noted they were fully quantified. That is, all the one hundred sixty eight (168) activities (100%) within these outputs were clearly quantified to enable the assessment of performance. The Table refers. Summary of Performance by Outputs Activity details-Analysis Catego ry of output s No. of outp uts samp led % of total outp uts samp led % prop ortio n to total expe nditu re Tota l no of acti vitie s in the outp uts No. of Full y Qua ntifi ed acti vitie s 168 Exp end itur e UG X Bn 779. 62 No of activi ties not fully quan tified % of quanti ficatio n of activiti es per catego ry of output 37 33.6 73 168 0 100 noted that MOWT did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year. Fully quantif ied outputs I | Officer to ensure that there are unit cost estimates at activity level to provide a link between inputs, processes and outputs. |\n|  1 | Summary of Performance by Outputs                                                                                                                                             | nan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | nan                                                                                                                             |\n|  2 | Catego ry of output s                                                                                                                                                         | nan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | nan                                                                                                                             |\n|  3 | Fully quantif ied outputs                                                                                                                                                     | nan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | nan                                                                                                                             |\n|  4 | noted that MOWT did not have unit cost estimates at activity level to provide a link between inputs, processes, outputs and intermediate outcomes realized during the year. I | nan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | nan                                                                                                                             |", "metadata": {"page": 8, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | 0     | 1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2                                                                                                                                                                 |\n|---:|:------|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------------------------------------------------------------------------------------------------------------------------------------------------------|\n|  0 | 4.1.5 | I assessed the implementation of thirty seven (37) outputs that were fully quantified with a total of one hundred and sixty eight (168) activities worth UGX.779.621Bn and noted that; Four (4) outputs with seven (7) activities and expenditure worth UGX 543.224Bn were fully implemented. That is all the seven (7) activities within these outputs were fully implemented. \uf0b7 Thirty (30) outputs with one hundred and fifty seven (157) activities worth UGX.236.397Bn were partially implemented. Out of the one hundred and fifty seven (157) activities, the entity fully implemented forty seven (47) activities, and seventy two (72) activities were partially implemented while thirty eight (38) activities remained unimplemented. \uf0b7 Three (3) outputs with four (4) activities worth UGX.0.0Bn were not implemented. That is none of the four (4) activities was implemented at all because budgeted funding was not availed. The Table below refers: % prop ortio n to total expe nditu Tot al no of acti viti No of Full y imp lem No. Of parti ally impl eme No of activiti es that were not imple mente Exte nt of impl eme ntati on of activi % of imp lem ent atio Exp end itur e UG of N o o p Cate gory of outp ut Summary of Performance by Output Activity details-Analysis Implementation of quantified outputs \uf0b7 ut ut | I advised the Accounting Officer to ensure that outputs are implemented as planned and where funds are not availed, to seek for revision of the entity work plan. |\n|  1 | nan   | nan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | nan                                                                                                                                                               |\n|  2 | nan   | nan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | nan                                                                                                                                                               |", "metadata": {"page": 8, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}, {"content": "|    | 4.1.6   | Achievement of intended services from implemented outputs- I undertook an assessment to establish whether there has been service delivery from a sample of outputs that were implemented and noted the following: Output Activities/Details Audit comments details 40252 Rehabilitation of Upcountry Aerodromes (CAA) 100% civil works for Expansion of Apron 1 for Entebbe airport completed at a cost of UGX 149,683,950,000 10% of civil works at New Passenger Terminal Complex for Entebbe airport completed; Output: 40304 Monitoring and Capacity Building Support Technical support services rendered to MDAs and 40 reports prepared. 8 buildings assessed for structural integrity 98% civil works for Expansion of Apron 1 for Entebbe airport were completed contrary to reported 100% 0% of civil works at New Passenger Terminal Complex for Entebbe airport Done. This was attributed to delayed movement of cargo from where the passenger terminal was supposed to another area. This has limited service delivery provision to the public. 6 out of the 40 planned MDAs were provided technical support services and reports prepared. to be constructed 1 out of the 8 investigations construction accidents conducted and prepared. planned building fire-related report and on failure to achieve the intended services from the implemented outputs negates the purpose of budgeting and implementing these activities. Accounting Officer explained that the Covid-19 lockdown restrictions affected progress of works coupled with budget cuts which led to partial or non-implementation of planned outputs. The The   | Unnamed: 2   | Unnamed: 3   | Unnamed: 4   | I advised the Accounting Officer to address the gaps noted in the implementation of these outputs to enable the communities fully benefit the projects/programms implemented Government. from by   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                                                            |\n|  6 | 4.1.7   | Submission of Quarterly Performance Reports Paragraph 8.12 (4,5,6) of the Treasury Instruction 2017, require the Accounting Officer to prepare reports for each quarter of the Financial Year in respect of the vote for which he/she is responsible. These reports shall contain financial and non-financial information on the performance of the vote and shall be submitted to Treasury not later than 15 days after the end of each quarter. noted that the entity submitted performance reports for Q1, Q2, Q3 and Q4 after the deadline given for submission of the reports. The Table below shows the delays per quarter on submission of budget performance reports; I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |              |              |              | I advised the Accounting Officer to ensure that performance reports are prepared and submitted in time.                                                                                            |", "metadata": {"page": 10, "document_name": "MWTS Report of Auditor General 2021", "headings": [], "type": "table"}}]