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+{"paragraphs": [{"content": "THE REPUBLIC OF UGANDA", "metadata": {"headings": [], "page": 1, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "THE GOVERNMENT OF UGANDA PUBLIC FINANCIAL MANAGEMENT SYSTEM", "metadata": {"headings": [{"headings_0": {"content": "THE GOVERNMENT OF UGANDA PUBLIC FINANCIAL MANAGEMENT SYSTEM", "page": 1, "level": 8}}], "page": 1, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "THEMATIC REPORT", "metadata": {"headings": [{"headings_0": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}, {"headings_1": {"content": "THE GOVERNMENT OF UGANDA PUBLIC FINANCIAL MANAGEMENT SYSTEM", "page": 1, "level": 8}}], "page": 1, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "TABLE OF CONTENTS", "metadata": {"headings": [{"headings_0": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}, {"headings_1": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}], "page": 2, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i \nii \nTable 3: Showing PFM indicator performance assessment levels across the whole budget cycle during the FY 2022/2023 ...................................................................................... 19 \niii \niv", "metadata": {"headings": [{"headings_0": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}, {"headings_1": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}, [{"headings_0": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}, {"headings_1": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}], [{"headings_0": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}, {"headings_1": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}], [{"headings_0": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}, {"headings_1": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}], [{"headings_0": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}, {"headings_1": {"content": "THEMATIC REPORT", "page": 1, "level": 2}}]], "page": 2, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "metadata": {"headings": [{"headings_0": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, {"headings_1": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}], "page": 6, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Detailed descriptions and explanations of terms and abbreviations relevant to this report are listed below. These descriptions and explanations serve to clarify my report and are not intended to be authoritative.", "metadata": {"headings": [{"headings_0": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, {"headings_1": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}], "page": 6, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**AG**", "Auditor General"], ["**BFPs**", "Budget Framework Paper"], ["**BMAU**", "Budget Monitoring and Accountability Unit"], ["**Bn**", "Billion"], ["**CoC**", "Certificate of Compliance"], ["**FY**", "Financial Year"], ["**GOU**", "Government of Uganda"], ["**HCM**", "Human Capital Management"], ["**IFMS**", "Integrated Financial Management System"], ["**INCOSAI**", "International Congress of Supreme Audit Institutions"], ["**INTOSAI**", "International Organisation of Supreme Audit Institutions"], ["**ISSAIs**", "International Standards of Supreme Audit Institutions"], ["**ITISP**", "Integrated Transport Infrastructure and Services Programme"], ["**LG**", "Local Government"], ["**M&E**", "Monitoring and Evaluation"], ["**MALGs**", "Ministries, Agencies and Local Governments"], ["**MDAs**", "Ministries Departments and Agencies"], ["**MOFPED**", "Ministry of Finance Planning and Economic Development"], ["**MOPS**", "Ministry of Public Service"], ["**MoWT**", "Ministry of Works and Transport"], ["**MPS**", "Ministerial Policy Statement"], ["**MTEF**", "Medium- Term Expenditure Framework"], ["**NDP III**", "National Development Plan III"], ["**NPA**", "National planning Authority"], ["**OAG**", "Office of the Auditor General"], ["**PBB**", "Programme Based Budgeting"], ["**PBS**", "Programme Budgeting System"], ["**PEFA**", "Public Expenditure and Financial Accountability"], ["**PFMA**", "Public Finance Management Act"], ["**PFMRF**", "Public Financial Management Reporting Framework"], ["**PIAP**", "Programme Implementation Action Plans"], ["**PWG**", "Programme Working Group"], ["**SAI**", "Supreme Audit Institutions"], ["**SDGs**", "Sustainable Development Goals"], ["**Tn**", "Trillion"], ["**UBOS**", "Uganda Bureau of Statistics"]], "metadata": {"headings": [{"headings_0": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, {"headings_1": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}], "page": 6, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Acronym", "Meaning"], "type": "table"}}, {"content": "v", "metadata": {"headings": [{"headings_0": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, {"headings_1": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}], "page": 6, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**UGX**", "Uganda Shillings"], ["**URA**", "Uganda Revenue Authority"]], "metadata": {"headings": [{"headings_0": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, {"headings_1": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}], "page": 7, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Acronym", "Meaning"], "type": "table"}}, {"content": "vi", "metadata": {"headings": [{"headings_0": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, {"headings_1": {"content": "TABLE OF CONTENTS", "page": 2, "level": 3}}], "page": 7, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "EXECUTIVE SUMMARY", "metadata": {"headings": [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}], "page": 8, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "A sound Public Financial Management (PFM) is critical for service delivery to the citizenry as it enables the country to mobilize revenue, allocate public funds, undertake public spending, account for funds and audit results based on a set of rules, laws, systems and processes used by sovereign nations. \nIn Uganda the Public Finance Management Act (PFMA), 2015 provides for the legal and regulatory framework for the management of: Macroeconomic and Fiscal Policies; Budget Preparation and Approval; Contingencies Fund; Cash and Asset Management ; Public Debt, Grants and Guarantees Management and Petroleum Revenue Management. Accordingly, a number of Public Financial Management (PFM) reforms have been undertaken and others currently ongoing throughout Government aimed at strengthening the financial management function in Government. \nOver the years, I have been making important observations at individual entity level during thematic audit of budget performance on annual basis. Some of the observations included; failure to budget for activities, diversions/mischarges, underperformance of revenues, implementation of off-budget activities, non-quantified outputs, under absorption, partial and non-implementation of activities, and low levels of service delivery among others. \nTherefore, since the PFM processes build on each other and are interrelated involving several Governmententities, I undertook a PFM audit on six (06) selected Government entities namely: Ministry of Finance, Planning and Economic Development(MoFPED), Uganda Revenue Authority(URA), Parliament, Ministry of Works and Transport(MoWT), Ministry of Water and Environment (MoWE) and Ministry of Health (MoH); to identify any systemic performance problems and their underlying root causes to facilitate making evidence based recommendations for corrective action. \nThe overall objective of the PFM audit was \u201c To Assess the Effectiveness of the Implementation of Public Financial Management System along the whole Budget cyclefor the financial year 2022/2023.\u201d \nThe assessment was undertaken on the following five (05) key PFM Processes: i.  \nMacro-Economic Policy, Fiscal Policy and Strategic Budgeting;  \nii. Budget preparation;  \niii. Budget approval;  \niv.  \nFinancial Management & Service Delivery;  \nv. Accounting, Reporting & Oversight.", "metadata": {"headings": [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}, [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}], [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}], [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}], [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}], [{"headings_0": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, {"headings_1": {"content": "TABLE OF ACRONYMS/ABBREVIATIONS", "page": 6, "level": 3}}]], "page": 8, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "KEY AUDIT FINDINGS", "metadata": {"headings": [{"headings_0": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}, {"headings_1": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}], "page": 8, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "On the basis of the methodology and assessment criteria used, the average overall PFM Government performance was 3.0 (fairly satisfactory performance) against a target of 4.0. The overall Government performance of the PFM key processes is presented below; \n1", "metadata": {"headings": [{"headings_0": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}, {"headings_1": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}, [{"headings_0": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}, {"headings_1": {"content": "EXECUTIVE SUMMARY", "page": 8, "level": 3}}]], "page": 8, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Government performance along each PFM process for the FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], "page": 9, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023 The factors explaining the average overall Government PFM system performance of 3.0 are as follows; I noted the following achievements/ good practices by the selected six (06) entities in the implementation of the PFM system along the whole budget cycle; i) MoFPED prepared the National Budget Framework Paper (NBFP) for FY 2022/23 \u2013 FY 2026/27 by 31 st December 2021 in compliance with the deadline set in the PFMA. ii) The Medium-term forecasts were done for the main fiscal indicators, e.g., revenue by type, expenditure, fiscal deficit (budget balance), and underlying assumptions. These forecasts formed part of the budget documentation submitted to Parliament. iii) Alignment of budget spending priorities to the strategic plan, NDP III and other key policies and policy priorities. iv) Compliance with the budget preparation procedures in terms of legal requirements, budget calendar and budget classification among others. v) Extensive consultations during the budget preparation process with the key stakeholders such as the Civil society, Private Sector, Development Partners (Private sector foundation Uganda-PSFU), Project Preparation Committee, media, Programme Working Groups among others. vi) Domestication of SDGs as per the consolidated National planning development framework and the responsibilities/ targets allocated to various contributors of the NDPIII programmes in their respective strategic plans, PIAPs and work plans for implementation. 2 vii) MoFPED submitted a comprehensive and complete budget proposal to parliament by 31 st March, 2022 for the FY 2022/23 as required by the PFMA for approval. The budget was submitted to parliament, debated and approved on 20 th May 2022. viii) Parliament has technical staff attached to the Sectoral committees of Parliament, who support the committees to ably scrutinize debate and amend the budget. The staff comprise of research assistants who are qualified Accountants, lawyers, Statisticians, Economists, Social scientists, financial analysts among others. ix) Parliamentary meetings and debates are open to the public. In addition, the debates on the budget are open to the mass media and are broadcast on various Televisions and Radios as well as published in the print media (newspapers and other publications). x) There are systems in place to monitor procurement processes and outcomes. The procurement processes are monitored by respective entity Accounting Officers, Public Procurement and Disposal Authority (PPDA), MoFPED, PPDA Tribunal, but the key Authority in charge of implementation of the procurement laws is the PPDA. The PPDA regularly monitors,", "metadata": {"headings": [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}, [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}]], "page": 9, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2015. Government is transitioning from modified accrual basis of accounting to reporting on the full accrual basis of accounting based on large aspects of the International Public Sector Accounting Standards (IPSASs).", "metadata": {"headings": [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], "page": 10, "document_name": "Public Financial Management System Thematic Report 2023", "type": "list"}}, {"content": "xiii) Programme Based Budgeting system was upgraded and interfaced with the expenditure management system (IFMS). The upgrade also provided for opening up for Non tax revenue (NTR) budgeting and going forward this will facilitate reporting on NTR budgets in the financial statements. \nxiv) Government of Uganda has made efforts in ensuring that systems are in place to facilitate monitoring of service delivery. \nxv) Parliamentary accountability committees review, comment and debate findings of the audit reports as evidenced by the Hansards and Committee reports laid and discussed in the plenary sessions of Parliament. \nDespite the notable good practices, the PFM system audit identified areas of improvement that need to be addressed as indicated below; \n3", "metadata": {"headings": [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}, [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}], [{"headings_0": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, {"headings_1": {"content": "KEY AUDIT FINDINGS", "page": 8, "level": 3}}]], "page": 10, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "metadata": {"headings": [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], "page": 11, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i)  \nWhereas the Debt to GDP decreased by 0.7% from 53.4% to 52.7% in the FYs 2021/22 and FY 2022/23 respectively, it still lies above the International Monetary Fund (IMF) recommended 50% point of safety for public debt . In order to maintain the Debt to GDP Ratio within sustainable limits, Government of Uganda developed a medium Term Debt Management Strategy (2022/2023-2025/2026). \nii) There was no evidence that the macro-fiscal (budget) sensitivity analysis results developed by MoFPED were discussed by the parliamentary budget committee during the budget process of discussing the budget framework paper. \niii)  \nURA has not established a formal process or standards to guide in the preparation of the tax revenue forecast. \niv) Whereas MoFPED developed macro-fiscal (budget) sensitivity analysis providing different alternative scenarios accounting for shocks and other buffer cases, there was no evidence that these results were discussed by the parliamentary budget committee during the budget process. \nv) The Macroeconomic assumptions included in the budget only cover a select few indicators of GDP and inflation. There was no evidence to show that indicators such as; interest rates to explain the performance of the economy through monetary policy measures in place, exchange rates and employment rates are considered. \nvi)  \nMoFPED prepared Medium-term forecasts for the main fiscal indicators and underlying macroeconomic assumptions which formed part of the budget documentation sent to Parliament however, the information presented in the budget documents did not provide any explanation for the deviations between prior year forecasts and actual fiscal out-turns to enhance further informed decision making during the budget process. \nvii) Inconsistencies in the funding requirements for the year under review to implement activities to deliver on strategic plan objectives. The analysis indicated significant variances between the entities\u2019 annual work plans and the strategic plans estimate of 44.67%. \nviii) Consistent underfunding of the contingency fund for the prior years and period under review. Analysis indicated that over the years, the initial appropriation to the Contingency Fund remained constant at UGX.62.07 Bn, below the required 0.5% of the appropriated annual budget of Government of the previous financial year. \nix) Supplementary funding source of UGX.1.4Tn, which accounted for 2.99% of the maximum allowable 3% by law wasn't clearly outlined before approval by parliament leading to unbalanced Government budget whereby approved expenditure was higher than the approved revenue estimates. \n4", "metadata": {"headings": [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}, [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, {"headings_1": {"content": "Government performance along each PFM process for the FY 2022/2023", "page": 9, "level": 2}}]], "page": 11, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "b) Budget Preparation Process", "metadata": {"headings": [{"headings_0": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}], "page": 12, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "x)  \nPartial alignment of the BFP intermediate outcomes and targets to those in the NDPIII. Overall, there was a moderately satisfactory (68%) alignment of the budget framework paper to the NDP III. \nxi)  \nFailure to appropriately quantify the cost of SDG interventions in the National Budget as entities\u2019 activities are not actively aligned with the SDGs but are unintentionally aligned as they were silent on the specific targets and indicators outlined in the SDG Framework. \nxii)  \nUnder Budgeting of previous year\u2019s arrears with analysis of the budget allocations for the selected entities indicating a funding shortfall of 88.6% of domestic arrears.", "metadata": {"headings": [{"headings_0": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}, [{"headings_0": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}], [{"headings_0": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 11, "level": 3}}]], "page": 12, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "c) Budget Approval Process", "metadata": {"headings": [{"headings_0": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}], "page": 12, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "xiii)  \nSome parliamentary recommendations during in-year budget reviews were not adhered to by MoFPED as some activities/projects which were rejected by Parliament were funded by MoFPED without justification and authorization. \nxiv)  \nProgram based approach to Planning and Budgeting has not been fully embraced by Parliament. Review of the Parliamentary Hansard of 5th January 2023 indicated that members of parliament had not yet properly internalized/ understood the Programme based approach to budgeting.", "metadata": {"headings": [{"headings_0": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}, [{"headings_0": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation Process", "page": 12, "level": 3}}]], "page": 12, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "d) Financial Management and Service Delivery Process", "metadata": {"headings": [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], "page": 12, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "xv) There are still non performing procurement indicators that have undermined the performance of the procurement system and these include the proportion of contracts in which payment was made on time to the providers at 48% against a target of 70%, proportion of contracts by value completed within time at 52% against a target of 60%, and proportion of contracts by value subjected to open competition at 58% against the target of 80%. xvi) Noted delays in URA\u2019s procurement system specifically at the bidding stage due to poor planning, delays in the certification of providers' invoices and failure to obtain performance securities from providers in five procurements worth UGX 1.87 Bn, and failure to appoint contract managers for three procurements worth UGX.752.7 million. xvii) HCMS implementation wasn\u2019t comprehensive as it was scoped to cover only 248 votes, in a three-phase manner, despite having 359 votes (as of January 2023). The integration between HCM and Integrated Financial Management System (IFMS) is incomplete. xviii) Gaps in recruitment of temporary staff due to lack of approved policies to guide their recruitment and use. 5 xix) Lack of approved IT structures to steer and oversee ICT implementation. Absence of ICT governance structures hampers formulation of appropriate ICT policies, strategies and real time upgrade of ICT interventions. xx) Failure to meet the NTR targets by respective MDAs due to unrealistic forecasting assumptions. Out of UGX.1.796Tn planned NTR, UGX.1.472Tn was collected, resulting in a shortfall of UGX.0.324Tn representing 18.04% of the approved NTR budget. xxi) URAs\u2019 tax payer data base not regularly updated. Potential taxpayers in the Informal Sector and Agriculture sectors were left out. xxii) Unrealized project support to a tune of UGX.3.101Tn. From the total unrealized funds, UGX.1.064.Tn representing 50.89% was on grants and UGX2.038 Bn representing 44.05% was on the loan component. The poor performance by the project support is attributed to slow progress of the implemented projects. xxiii) The parliament of Uganda appropriated UGX.5,157.331 Bn to the selected entities out of which UGX.4,579.963 Bn was warranted resulting into 88.8% performance of the appropriated revenue. The utilization of warrants by the selected entities was 99.51%. xxiv) With the exception of URA, the internal audit function of selected entities did not automate the internal audit processes to ensure efficiency and transparency in the conduct of internal audit activities. It was also noted that internal audit reports do not include results on assurance of the", "metadata": {"headings": [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}, [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}, {"headings_1": {"content": "c) Budget Approval Process", "page": 12, "level": 3}}]], "page": 12, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Audit Recommendations", "metadata": {"headings": [{"headings_0": {"content": "Audit Recommendations", "page": 13, "level": 3}}, {"headings_1": {"content": "d) Financial Management and Service Delivery Process", "page": 12, "level": 3}}], "page": 13, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "metadata": {"headings": [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], "page": 13, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i) The Accounting Officer of URA should develop and implement tax revenue forecasting policy/guidelines in consultation with MoFPED. \nI advised the PSST to; \n6 \nii) Put in place measures to effectively implement the medium term Debt management Strategy (2022/2023-2025/2026) to ensure that level of public debt remains sustainable both in the medium and long term. \niii) Consider prioritizing discussing the results of the Budget sensitivity analysis with all the relevant stakeholders specifically parliament so as to ensure that the parliamentary budget committee is adequately sensitized on the relevance of the fiscal risk statement to facilitate an evidence based budget approval process. \niv) Consider discussing the results of the Budget sensitivity analysis with relevant stakeholders to ensure that the parliamentary budget committee is sensitized on the relevance of the fiscal risk statement during budget approval process. \nv) Consider including exchange rates, interest rates and level of employment as assumptions in the forecasting model. \nvi) Ensure that a statement for deviations between Medium Term forecasts and actual performance is included in the BFP at the time of preparing the budget. \nvii) Liaise with NPA and respective Accounting Officers to evaluate the possibility of regular review of the strategic planning documents (strategic plan, PIAP) to ensure that their MTEF ceilings are aligned with BFP projections in the medium term. \nviii) Put in place measures that will adequately meet funding requirements of the Contingency Fund as required by Law. \nix) Expedite the review of the approval process of the supplementary budgets to ensure there is a corresponding source of funding for any approved supplementary funding to avoid budget distortion.", "metadata": {"headings": [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}, [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}], [{"headings_0": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, {"headings_1": {"content": "Audit Recommendations", "page": 13, "level": 3}}]], "page": 13, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "b) Budget Preparation", "metadata": {"headings": [{"headings_0": {"content": "b) Budget Preparation", "page": 14, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}], "page": 14, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "x) NPA should conduct evidence-based cost study to inform Government of the funding requirement needed over the NDP period to implement the entities\u2019 strategic interventions and facilitate achievement of the programme outcomes. The cost study by NPA should form the basis for the MTEF ceilings by MOFPED during preparation of key policy Government. \nxi) I advised NPA and MOFPED to ensure that where revenue forecasts may not be sufficient to fund implementation of some strategic programme interventions in line with the cost study estimates due to limited resource envelop, a commitment should be made before plan implementation on unfunded priorities in the medium term to prevent actions such as budget repurposing/ reprioritization that may affect budget credibility/ lead to budget distortions.", "metadata": {"headings": [{"headings_0": {"content": "b) Budget Preparation", "page": 14, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}, [{"headings_0": {"content": "b) Budget Preparation", "page": 14, "level": 3}}, {"headings_1": {"content": "a) Macroeconomic policy, Fiscal policy and Strategic budgeting", "page": 13, "level": 3}}]], "page": 14, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "c) Budget Approval", "metadata": {"headings": [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}], "page": 14, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "xii) I advise the SDG secretariat under the OPM to review the National SDG Implementation Road Map (2020/21 \u2013 2024/25) and provide specific guidance to \n7 \nMALGs on planning and budgeting, Monitoring and Evaluation of the SDG Interventions. \nxiii) The PSST should ensure that the Accounting Officers regularly update the domestic arrears IFMS module with verified figures to inform national planning and budgeting for arrears. \nxiv) The PSST should ensure that the recommendations of the budget committee and other committees of Parliament are complied with. \nxv) The PSST should engage Parliament to ensure that the necessary amendments to the PFMA and the PFM Regulations are made to support the implementation of the programmatic approach to planning and budgeting. \nxvi) Capacity building including more sensitization and/or trainings should be undertaken with members of Parliament in order to equip them with skills for scrutinizing program based budgets as well as secure their full support and appreciation of the reform.", "metadata": {"headings": [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}, [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}], [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}], [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}], [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}], [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}], [{"headings_0": {"content": "c) Budget Approval", "page": 14, "level": 3}}, {"headings_1": {"content": "b) Budget Preparation", "page": 14, "level": 3}}]], "page": 14, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "d) Financial Management and Service Delivery", "metadata": {"headings": [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], "page": 15, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "xvii)  \nThe PSST was advised to fast track the full rollout of the e-GP procurement automation and review of procurement laws to address the inefficiencies in the procurement process. \nxviii) The PSST was advised to fast track the rollout of the HCM system covering all categories of staff. Consideration should be made to provide for a two way communication between IFMS and HCM system. \nxix) Accounting Officer of URA was advised to enhance Human resource policies to provide for recruitment, management and exit of contract staff. \nxx)  \nThe Accounting Officers of MoWT, MoWE and MoH were advised to develop and implement the IT policies in order to strengthen the IT governance structures. \nxxi)  \nThe PSST was advised to make NTR revenue forecasting more consultative so as to arrive at realistic estimates to facilitate revenue mobilization and collection. \nxxii) The respective Accounting Officers were advised put measures in place to ensure that project management is effective to avoid any delays in project implementation so as to progressively realize project support. \nxxiii) The Accounting Officer of URA was advised to initiate measures to regularly update the taxpayer database to enhance its completeness and reliability. \n8 \nxxiv) The PSST was advised to regularly review strategies to increase domestic revenue collections to sustainably fund the ever increasing needs of Government and review the legal framework on supplementary expenditure to minimize budget distortions. \nxxv) I advised the PSST to build capacity of staff in the Office of the Internal Auditor General should to provide assurance services on the efficiency, economy and effectiveness of the administration of the programmes and operations of Government entities. \nxxvi) The PSST was advised to ensure automation of the internal audit processes in line with the Government digital transformation strategy of ensuring automation of Government processes to facilitate efficiency, transparency and accountability. \nxxvii) The Accounting Officers should engage the SDG secretariat under OPM to clearly domesticate and define SDG indicators/ targets on the allocated Goals under NDP III programme to facilitate routine data collection, analysis and reporting on progress of the SDG targets by MDAs through the SDG secretariat.", "metadata": {"headings": [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}, [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}], [{"headings_0": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, {"headings_1": {"content": "c) Budget Approval", "page": 14, "level": 3}}]], "page": 15, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "OVERALL AUDIT CONCLUSION", "metadata": {"headings": [{"headings_0": {"content": "OVERALL AUDIT CONCLUSION", "page": 16, "level": 3}}, {"headings_1": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}], "page": 16, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The overall average Government PFM system performance based on the selected entities during the financial year 2022/23 was 3.0 out of the desired performance target grade of 4.0 which is fairly satisfactory performance. This implies that the Government needs to review the PFM reforms and address the areas of improvement identified to realize the intended objectives as outlined in the national PFM reform strategy and the National Development Plan. \nJohn F.S. Muwanga", "metadata": {"headings": [{"headings_0": {"content": "OVERALL AUDIT CONCLUSION", "page": 16, "level": 3}}, {"headings_1": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}, [{"headings_0": {"content": "OVERALL AUDIT CONCLUSION", "page": 16, "level": 3}}, {"headings_1": {"content": "d) Financial Management and Service Delivery", "page": 15, "level": 3}}]], "page": 16, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "AUDITOR GENERAL", "metadata": {"headings": [{"headings_0": {"content": "AUDITOR GENERAL", "page": 16, "level": 3}}, {"headings_1": {"content": "OVERALL AUDIT CONCLUSION", "page": 16, "level": 3}}], "page": 16, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "29 th December, 2023. \n9", "metadata": {"headings": [{"headings_0": {"content": "AUDITOR GENERAL", "page": 16, "level": 3}}, {"headings_1": {"content": "OVERALL AUDIT CONCLUSION", "page": 16, "level": 3}}, [{"headings_0": {"content": "AUDITOR GENERAL", "page": 16, "level": 3}}, {"headings_1": {"content": "OVERALL AUDIT CONCLUSION", "page": 16, "level": 3}}]], "page": 16, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "CHAPTER ONE 1.0 INTRODUCTION", "metadata": {"headings": [{"headings_0": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}, {"headings_1": {"content": "AUDITOR GENERAL", "page": 16, "level": 3}}], "page": 17, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "1.1", "metadata": {"headings": [{"headings_0": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}, {"headings_1": {"content": "AUDITOR GENERAL", "page": 16, "level": 3}}], "page": 17, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Background of the PFM Audit", "metadata": {"headings": [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}], "page": 17, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Public Financial Management (PFM) refers to the set of rules, laws, systems and processes used by sovereign nations, to mobilize revenue, allocate public funds, undertake public spending, account for funds and audit results. \u2018PFM systems\u2019 are a series of sub-systems with very different roles, purposes and objectives. A sound PFM is critical for service delivery. Therefore, an efficient and effective PFM system in Uganda is a necessary condition for achieving Uganda\u2019s vision 2040, Sustainable Development Agenda, 2030 National Development Plan III objectives, and strengthen disaster Preparedness 1 . \nIn Uganda the Public Finance Management Act (PFMA), 2015 (as amended) provides for the legal and regulatory framework for the management of: macroeconomic and fiscal Policies; budget preparation, approval; contingencies fund; cash and asset; public debt, grants and guarantees and petroleum revenue. Government has undertaken a number of Public Financial Management (PFM) reforms have been undertaken and others currently ongoing throughout Government aimed at strengthening the financial management function in Government entities.", "metadata": {"headings": [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}, [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}]], "page": 17, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "The primary objective of the PFM reforms is to improve the efficiency and effectiveness of public financial management, with the goal of enhancing the quantity and quality of public service delivery for the wellbeing of the citizens. Included in the reforms was the need by Government to review and update its legal and regulatory framework for financial management leading to the enactment of the PFMA, 2015 and consequently the issuance of the PFM Regulations in 2016. In addition, other PFM reforms have been in the areas of; Automation of the Financial Management systems (IFMS), Programmatic Approach to Planning and Budgeting, Institution of the Treasury single account, Decentralization of payroll and pension management, Macro-Economic Forecasting, Automation of government systems from manual to computer based, including e-government procurement, Tax Administration Reform (E-Tax), Aid and debt Management 2 among others.", "metadata": {"headings": [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}], "page": 17, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "As a member of the International Organization of Supreme Audit Institutions (INTOSAI) the Office of Auditor General (OAG) adopted the International Standards of Supreme Audit Institutions (ISSAIs) and practices issued by INTOSAI as a guide in the execution of his mandate. At the International Congress of Supreme Audit Institutions (INCOSAI) in Abu Dhabi in 2016, INTOSAI members committed to make a meaningful contribution to the Sustainable Development Goals (SDGs) through re- inventing the way PFM is audited and reported upon. Therefore, AFROSAI-E- a regional body for INTOSAI developed the Public Financial Management Reporting Framework/ tool to allow supreme Audit Institutions (SAIs) to report holistically on \n1 Public Financial Management Reporting Framework Guidelines  \n2 Uganda Public Financial Management Reform Strategy (July 2018 \u2013 June 2023) Pages 18-19 \n10 \nPFM risks 3 . Using this tool, SAIs can assess the efficiency and effectiveness of such PFM reforms. \n1.2", "metadata": {"headings": [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}, [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}], [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}], [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}], [{"headings_0": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, {"headings_1": {"content": "CHAPTER ONE 1.0 INTRODUCTION", "page": 17, "level": 3}}]], "page": 17, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Motivation for the PFM Audit", "metadata": {"headings": [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], "page": 18, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 22 of the National Audit Act, 2008 requires that I may carry out special audits, investigations or any other audit that I may consider necessary. In the OAG Strategic Plan 2020-2025, I planned to undertake PFM audits as a way of promoting effective management of public finances so as to ensure service delivery and well- functioning of public institutions.", "metadata": {"headings": [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], "page": 18, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Over the years, I have been making important observations at individual entity level during thematic audit of budget performance on annual basis. Some of the observations included; failure to budget for activities, diversions/mischarges, underperformance of revenues, implementation of off-budget activities, non- quantified outputs, under absorption, partial and non-implementation of activities, and low levels of service delivery among others. Therefore, since the PFM processes build on each other and interrelated involving several entities, there was need to identify and report holistically on the PFM risks to ensure proper functioning of the PFM system so that Government finances are sustainable and allow for budgets to reflect political priorities and efficient service delivery 4 . \nDuring the financial year ended 30 th June 2023, the Government of Uganda appropriated budget was UGX 52.548 Trillion (Tn) out of which UGX 49.226 Tn was released and UGX 45.665 Tn spent representing 86.86% of the approved budget. The PFM audit was therefore necessary to assess the credibility of the budget and fiscal outcomes to improve public financial management 5 \nThe PFM audit was therefore necessary to assess the credibility of the budget and fiscal outcomes to improve public financial management. \nIn compliance with the OAG legal mandate and the International Standards for Supreme Audit Institutions (ISSAIs), the Office prioritized undertaking impactful audits relevant to the stakeholders such as parliament, donors, civil society organizations as well as the general public so as to respond to any emerging areas 6 . One way of achieving this was to conduct a PFM audit to facilitate making meaningful contribution to the realization of the national development objectives. \nIt is against this background that I decided to undertake a PFM audit to assess the effectiveness of the PFM system by identifying any systemic performance problems and their underlying root causes to facilitate making evidence based recommendations for corrective action. \n3 Public Financial Management Reporting Framework Guidelines  \n4 Auditor General\u2019s Reports for the FYs (2020/21, 2021/22, and 2022/2023)  \n5 Consolidated Accounts of Government of Uganda Report for the FY 2022/2023 6 OAG Strategic Plan 2020-2025 \n11 \n1.3", "metadata": {"headings": [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}, [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}], [{"headings_0": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, {"headings_1": {"content": "Background of the PFM Audit", "page": 17, "level": 3}}]], "page": 18, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Overview of the Public Financial Management systems and processes in Uganda", "metadata": {"headings": [{"headings_0": {"content": "Overview of the Public Financial Management systems and processes in Uganda", "page": 19, "level": 8}}, {"headings_1": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}], "page": 19, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The PFMA, 2015 (as amended) lays down the foundational principles and procedures essential for maintaining a robust fiscal policy and effective macroeconomic management, outlines specific processes governing the preparation, approval, and administration of an annual budget, delineates the framework for operating the Contingencies Fund, as well as the mechanisms governing the management of cash, assets, and liabilities. It also addresses the establishment of reporting and accounting systems and the implementation of internal controls; all as outlined in the PFM core processes. \nThe PFM system involves five (05) key processes which include; Macroeconomic policy, fiscal policy & strategic budgeting, Budget preparation, Budget approval, Financial Management & Service Delivery, Accounting, Reporting & Oversight as illustrated in the figure 1 below; \nFigure 1: Showing the summary flow chart of the core PFM system", "metadata": {"headings": [{"headings_0": {"content": "Overview of the Public Financial Management systems and processes in Uganda", "page": 19, "level": 8}}, {"headings_1": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}, [{"headings_0": {"content": "Overview of the Public Financial Management systems and processes in Uganda", "page": 19, "level": 8}}, {"headings_1": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}], [{"headings_0": {"content": "Overview of the Public Financial Management systems and processes in Uganda", "page": 19, "level": 8}}, {"headings_1": {"content": "Motivation for the PFM Audit", "page": 18, "level": 3}}]], "page": 19, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "processes", "metadata": {"headings": [{"headings_0": {"content": "processes", "page": 19, "level": 5}}, {"headings_1": {"content": "Overview of the Public Financial Management systems and processes in Uganda", "page": 19, "level": 8}}], "page": 19, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The detailed activities, outputs, timelines and responsible parties for each PFM process are further explained in Appendix I. The activities and outputs from the PFM systems and processes are summarized below;", "metadata": {"headings": [{"headings_0": {"content": "processes", "page": 19, "level": 5}}, {"headings_1": {"content": "Overview of the Public Financial Management systems and processes in Uganda", "page": 19, "level": 8}}], "page": 19, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "metadata": {"headings": [{"headings_0": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}, {"headings_1": {"content": "processes", "page": 19, "level": 5}}], "page": 19, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "This is a key process that commences the PFM cycle and mainly involves;  \ni.  \nPreparation of a macroeconomic framework for the preceding financial year with detailed underlying assumptions. \nii.  \nThe Macro-economic forecast activities such as consultations with Bank of Uganda (BOU), Uganda Revenue Authority (URA), and National Planning Authority (NPA), Uganda Bureau of Statistics (UBOS) as well as data collection and analysis for the preparation of the Macro economic forecasts are undertaken. \n12", "metadata": {"headings": [{"headings_0": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}, {"headings_1": {"content": "processes", "page": 19, "level": 5}}, [{"headings_0": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}, {"headings_1": {"content": "processes", "page": 19, "level": 5}}], [{"headings_0": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}, {"headings_1": {"content": "processes", "page": 19, "level": 5}}]], "page": 19, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "1.3.2 Budget preparation", "metadata": {"headings": [{"headings_0": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}], "page": 20, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i.  \nCabinet Retreat is conducted on the Budget to discuss past performance and gain consensus on strategy & priorities for next fiscal year  \nii. Local Government (LG) regional workshops are carried to: disseminate and discuss priorities for next fiscal year; and, discuss policy issues that affect delivery of decentralized services  \niii. Programme Working Groups (PWGs) & East African Community (EAC) consultations are carried out on a continuous basis  \niv.  \nMinistries, Agencies and Local Governments (MALGs) prepare and submit BFPs to MoFPED by 15 th November after the 2 nd Budget Call circular of 15 th September.  \nv.  \nMoFPED reviews, consolidates and submits the National Budget Framework Paper (NBFP) to Parliament by 31 st December, after Cabinet clearance  \nvi. \nMALGs prepare & submit final budget estimates to MoFPED by 15 th March  \nvii.  \nMinistries prepare and submit Ministerial Policy Statements (MPSs) to Parliament by 15 th March  \nviii.  \nMoFPED reviews, consolidates and submits final budget estimates to Parliament by 1 st April, after clearance by Cabinet", "metadata": {"headings": [{"headings_0": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}, [{"headings_0": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.1 Macroeconomic policy, Fiscal Policy and Strategic Budgeting", "page": 19, "level": 3}}]], "page": 20, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "1.3.3 Budget approval", "metadata": {"headings": [{"headings_0": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}], "page": 20, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Parliamentary review and approval involves; i. \nThe NBFP by 1 st February, normally with recommendations that are addressed in the final budget estimates  \nii. \nMinisters and Heads of Votes present Policy Statements to Parliament by 15 th March. iii. The Minister of Finance, Planning and Economic Development lays the detailed budget estimates and appropriation bill in Parliament by 1 st April.  \niv. \nParliament then scrutinizes and approves the budget by 31 st May. v. \nBudget Speech is read by 15 th June  \nvi.  \nH.E. the President assents to the Appropriation Bill & other Bills, giving rise to the Appropriation Act that gives MoFPED and Ministries, Agencies and Local Governments (MALGs) clearance to implement the Budget", "metadata": {"headings": [{"headings_0": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}, [{"headings_0": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}], [{"headings_0": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}], [{"headings_0": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}], [{"headings_0": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.2 Budget preparation", "page": 20, "level": 3}}]], "page": 20, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "1.3.4 Financial Management & Service Delivery", "metadata": {"headings": [{"headings_0": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}], "page": 20, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The budget is implemented to deliver various public services, such as education, health, good roads security, salaries, pensions etc., that improve the lives of the citizens for poverty eradication.  \ni. Ministry of Finance, Planning and Economic Development (MoFPED) issues guidelines for budget implementation in the Budget Execution Circular (BEC) by 30 th June  \nii. Budget becomes effective by 1 st July  \niii.  \nRevenue is collected by URA & External financing disbursed  \niv. MoFPED releases funds quarterly, based on cash flow plan of government and actual resource inflows  \nv.  \nMALGs are required to implement the budget in line with approved work plans, procurement plans & recruitment plans  \nvi.  \nMALGs report quarterly on progress against targets  \nvii.  \nMoFPED prepares semi and annual budget reports to assess progress in attaining policy outcomes Budget Releases & Reports are published on the budget website \n13 \nto improve transparency and enable feedback. The approval of the annual budget by Parliament provides the legal authority for spending agencies to spend and for the MoFPED to make releases to spending agencies (votes)", "metadata": {"headings": [{"headings_0": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}, [{"headings_0": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}], [{"headings_0": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}, {"headings_1": {"content": "1.3.3 Budget approval", "page": 20, "level": 3}}]], "page": 20, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "1.3.5 Accounting, Reporting & Oversight", "metadata": {"headings": [{"headings_0": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The integrity and quality of budgetary forecasts, fiscal plans and budgetary implementation should be promoted through; \ni. Monitoring and supervision by politicians at all levels, Internal auditing within MALGs and Auditor General\u2019s reports are aligned with the budgetary cycle to enhance quality of performance accountability frameworks. \nii.  \nAs part of the oversight function, a number of performance reports are required to be produced which include financial statements, budget performance reports, Macroeconomic and Fiscal Performance reports and Budget monitoring reports by BMAU. The reports are either produced on a quarterly basis, bi-annual or annual basis as required. \n1.4", "metadata": {"headings": [{"headings_0": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}, [{"headings_0": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}], [{"headings_0": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}], [{"headings_0": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.4 Financial Management & Service Delivery", "page": 20, "level": 3}}]], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "metadata": {"headings": [{"headings_0": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Ministry of Finance, Planning and Economic Development (MoFPED) is the authorized body for public financial management (PFM) rules and regulations and centralizes most of the control functions over the key phases of the PFM cycle. MoFPED, as a core entity in public financial management, is empowered by the Public Finance Management Act (PFMA) 2015, which is rooted in the Constitution. For purposes of the PFM assessment, the legal framework for PFM in Uganda is provided by the following key laws and regulations, among other measures:", "metadata": {"headings": [{"headings_0": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}, {"headings_1": {"content": "1.3.5 Accounting, Reporting & Oversight", "page": 21, "level": 3}}], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "metadata": {"headings": [{"headings_0": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}, {"headings_1": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**1995 Constitution (as amended)**", "The GoU constitution is the supreme law in Uganda from which all the other laws are derived. Chapter 9 of the Constitution Covers Finance. The articles of Chapter 9 provide for, among others, imposition of taxation, creation of a consolidated fund, budget preparation and implementation, transparency and accountability in handling public funds and appointment of an Auditor General"], ["**Public Finance Management Act 2015 (as amended)**", "The Public Finance Management Act (PFMA) 2015 is derived from the Constitution and provides for the control and management of public funds and resources. It gives MoFPED powers to strengthen fiscal transparency and accountability. PFMA establishes\u2014 The principles and procedures for a sound fiscal policy and macroeconomic management; the processes for the preparation, approval and management of a transparent, credible and predictable annual budget; the mechanism for the operation of the Contingencies Fund; the mechanisms for cash, assets and liability management; the reporting and accounting systems, and internal controls etc."]], "metadata": {"headings": [{"headings_0": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}, {"headings_1": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Legal Framework", "Description"], "type": "table"}}, {"content": "14", "metadata": {"headings": [{"headings_0": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}, {"headings_1": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}], "page": 21, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**The Public Finance Management Regulations 2016**", "Regulations cover the following:  \u2022 Macroeconomic and fiscal policies  \u2022  \u2022  \u2022  \u2022  \u2022 Oversight of subsectors and public enterprises Budget preparation, approval and management Cash, asset, and liability management: Accounting and auditing  Petroleum revenue management:"], ["**Treasury Instruction, 2017**", "Treasury Instructions support the Public Finance Management Act 2015 and Financial Management Regulations 2016. The Instructions set out the general policies, procedures and rules to be followed by all votes in the efficient and effective management of public funds and resources. The Instructions cover the entire public financial management cycle."], ["**Public Procurement and Disposal of Public Assets Act 2003 and Amendment Act 2011**", "The Act establishes the Public Procurement and Disposal of Public Assets Authority; formulates policies and regulates practices in respect of public procurement and disposal activities and other connected matters"]], "metadata": {"headings": [{"headings_0": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}, {"headings_1": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}], "page": 22, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Legal Framework", "Description"], "type": "table"}}, {"content": "15", "metadata": {"headings": [{"headings_0": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}, {"headings_1": {"content": "Legal and Regulatory Arrangements for PFM in Uganda", "page": 21, "level": 3}}], "page": 22, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "CHAPTER TWO", "metadata": {"headings": [{"headings_0": {"content": "CHAPTER TWO", "page": 23, "level": 3}}, {"headings_1": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.0", "metadata": {"headings": [{"headings_0": {"content": "CHAPTER TWO", "page": 23, "level": 3}}, {"headings_1": {"content": "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda", "page": 21, "level": 1}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "AUDIT DESIGN AND METHODOLOGY", "metadata": {"headings": [{"headings_0": {"content": "AUDIT DESIGN AND METHODOLOGY", "page": 23, "level": 3}}, {"headings_1": {"content": "CHAPTER TWO", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The audit was conducted using the AFROSAI-E Public Financial Management Reporting Framework/ excel evidence-based assessment tool. This assessment methodology was discussed with the Accounting Officers and senior management teams in the selected Government institutions to have a clear understanding and agreement of the grading and reported results.", "metadata": {"headings": [{"headings_0": {"content": "AUDIT DESIGN AND METHODOLOGY", "page": 23, "level": 3}}, {"headings_1": {"content": "CHAPTER TWO", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.1 Audit Scope", "metadata": {"headings": [{"headings_0": {"content": "2.1 Audit Scope", "page": 23, "level": 3}}, {"headings_1": {"content": "AUDIT DESIGN AND METHODOLOGY", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The audit focused on the performance of the PFM system along the whole budget cycle (Macroeconomic Policy, Fiscal Policy and Strategic Budgeting; Budget preparation; Budget approval; Financial management and service delivery; and Accounting, Reporting and Oversight) by the three (03) core PFM institutions (URA, MoFPED, Parliamentary Commission (PC)) and three (03) selected spending line ministries (Ministry of Health (MoH), Ministry of Works and Transport (MoWT), Ministry of Water and Environment (MoWE)). The study covered one (1) financial year 2022/2023. However, prior years were referred to where necessary to obtain evidence on trend performance analysis.", "metadata": {"headings": [{"headings_0": {"content": "2.1 Audit Scope", "page": 23, "level": 3}}, {"headings_1": {"content": "AUDIT DESIGN AND METHODOLOGY", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.2 Audit Objective", "metadata": {"headings": [{"headings_0": {"content": "2.2 Audit Objective", "page": 23, "level": 3}}, {"headings_1": {"content": "2.1 Audit Scope", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The overall objective of the audit was to assess the effectiveness of the public financial management system along the whole budget cycle by the core PFM institutions and other selected spending Ministries, Departments and Agencies (MDA\u2019s) during the financial year 2022/2023.", "metadata": {"headings": [{"headings_0": {"content": "2.2 Audit Objective", "page": 23, "level": 3}}, {"headings_1": {"content": "2.1 Audit Scope", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.2.1 Specific Audit Objectives", "metadata": {"headings": [{"headings_0": {"content": "2.2.1 Specific Audit Objectives", "page": 23, "level": 3}}, {"headings_1": {"content": "2.2 Audit Objective", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The specific audit objectives were hinged on the five (05) key PFM core processes and included;", "metadata": {"headings": [{"headings_0": {"content": "2.2.1 Specific Audit Objectives", "page": 23, "level": 3}}, {"headings_1": {"content": "2.2 Audit Objective", "page": 23, "level": 3}}], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "i.  \nTo assess whether MOFPED and URA effectively undertake Macroeconomic Policy, Fiscal Policy and Strategic Budgeting.  \nii.  \nTo assess whether the entity budgets are prepared and organized in line with the budgeting guidelines, Programme strategies and NDP III.  \niii.  \nTo ascertain whether the approved institutional budgets are sufficient to deliver on their core activities/ services.  \niv. To assess whether financial management and service delivery activities are implemented in line with the established legislation, policies, guidelines and procedures.  \nv. To establish whether MDA\u2019s timely generates appropriate, comprehensive and transparent financial reports and these reports are acted upon as per the established PFM policies. \n16", "metadata": {"headings": [{"headings_0": {"content": "2.2.1 Specific Audit Objectives", "page": 23, "level": 3}}, {"headings_1": {"content": "2.2 Audit Objective", "page": 23, "level": 3}}, [{"headings_0": {"content": "2.2.1 Specific Audit Objectives", "page": 23, "level": 3}}, {"headings_1": {"content": "2.2 Audit Objective", "page": 23, "level": 3}}]], "page": 23, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.3 Audit Questions", "metadata": {"headings": [{"headings_0": {"content": "2.3 Audit Questions", "page": 24, "level": 3}}, {"headings_1": {"content": "2.2.1 Specific Audit Objectives", "page": 23, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "There were various audit/ assessment questions assigned to each individual entities as per the Public Financial Management Reporting Framework to facilitate data collection and analysis so as to address the specific audit objectives along the whole budget cycle. Ministry of Finance Planning and Economic Development (MOFPED) was assigned fifty-three (53) questions, Uganda Revenue Authority (URA) forty-six (46), the 3 MDA\u2019s (Ministry of Health, Ministry of Works and Transport; and Ministry of Water and Environment) were assigned forty-three (43) questions each and Parliamentary Commission (PC) ten (10) questions. The detailed assessment questions per the core PFM processes and sub-processes are detailed in Appendix", "metadata": {"headings": [{"headings_0": {"content": "2.3 Audit Questions", "page": 24, "level": 3}}, {"headings_1": {"content": "2.2.1 Specific Audit Objectives", "page": 23, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "II.", "metadata": {"headings": [{"headings_0": {"content": "II.", "page": 24, "level": 3}}, {"headings_1": {"content": "2.3 Audit Questions", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.4", "metadata": {"headings": [{"headings_0": {"content": "II.", "page": 24, "level": 3}}, {"headings_1": {"content": "2.3 Audit Questions", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Basis for selection of the PFM Entities", "metadata": {"headings": [{"headings_0": {"content": "Basis for selection of the PFM Entities", "page": 24, "level": 3}}, {"headings_1": {"content": "II.", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The entities selected for the PFM pilot audit had a total budget significance of UGX. 8,349.84 Bn constituting 15.89% of the approved national budget of UGX. 52,547.758 Bn for the FY 2022/2023. Therefore, the total budget significance of the selected individual entities to the approved national budget informed the basis for selection of the pilot PFM entities for the assessment as indicated below;", "metadata": {"headings": [{"headings_0": {"content": "Basis for selection of the PFM Entities", "page": 24, "level": 3}}, {"headings_1": {"content": "II.", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "metadata": {"headings": [{"headings_0": {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "page": 24, "level": 1}}, {"headings_1": {"content": "Basis for selection of the PFM Entities", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "entities", "metadata": {"headings": [{"headings_0": {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "page": 24, "level": 1}}, {"headings_1": {"content": "Basis for selection of the PFM Entities", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**URA**", "539.83", "1.027313"], ["**MoFPED**", "2,638.55", "5.021242"], ["**MoWT**", "957.35", "1.821867"], ["**MoWE**", "1,508.88", "2.871445"], ["**MoH**", "1,790.25", "3.406901"], ["**Parliament**", "914.98", "1.741235"], ["**TOTAL**", "8,349.84", "15.89"], ["**Total National Budget**", "52,547.76", "100"]], "metadata": {"headings": [{"headings_0": {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "page": 24, "level": 1}}, {"headings_1": {"content": "Basis for selection of the PFM Entities", "page": 24, "level": 3}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Selected PFM institutions", "Approved Budget UGX (Bn)", "% of the cumulative budget"], "type": "table"}}, {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "page": 24, "level": 1}}, {"headings_1": {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "page": 24, "level": 1}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "In addition, the above entities were also selected based on their role in ensuring an effective and efficient PFM system such as MOFPED, URA and Parliament which are regarded as core institutions. The three (03) MDA\u2019s were selected because they are key service delivery institutions and play a critical role in the implementation and realization of Sustainable Development Goal targets as per the National Indicator Framework (NIF). \n2.5", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "page": 24, "level": 1}}, {"headings_1": {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "page": 24, "level": 1}}, [{"headings_0": {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "page": 24, "level": 1}}, {"headings_1": {"content": "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "page": 24, "level": 1}}]], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Data Collection Methods (DCM)", "metadata": {"headings": [{"headings_0": {"content": "Data Collection Methods (DCM)", "page": 24, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "page": 24, "level": 1}}], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Data was collected from various sources through a combination of both quantitative and qualitative approaches. The Public Financial Management Reporting Framework (PFMRF) tool was deployed to the selected government entities during data collection. The tool was used together with other data collection methods which included the following; \n17", "metadata": {"headings": [{"headings_0": {"content": "Data Collection Methods (DCM)", "page": 24, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "page": 24, "level": 1}}, [{"headings_0": {"content": "Data Collection Methods (DCM)", "page": 24, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of National Budget Performance IFMIS data for FY 2022/2023", "page": 24, "level": 1}}]], "page": 24, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.5.1 Documents Review", "metadata": {"headings": [{"headings_0": {"content": "2.5.1 Documents Review", "page": 25, "level": 3}}, {"headings_1": {"content": "Data Collection Methods (DCM)", "page": 24, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I reviewed secondary data sources to summarize information in line with each assessment question. Some of the documents reviewed included the following; NDPIII, Annual and Quarterly GDP projections, Fiscal Risk Statement FY 2022/2023, Debt Sustainability Analysis Report December, 2022, Economic Growth outlook for FY 2022/2023 and the medium term, Macroeconomic forecasts for the annual budget, Domestic revenue forecasts FY 2022/2023, Domestic Revenue Performance reports FY 2022/2023, Memorandum of Economic and Financial policies, PEFA Assessment Report 2022, among others. The details of the documents reviewed and purpose are included in Appendix III.", "metadata": {"headings": [{"headings_0": {"content": "2.5.1 Documents Review", "page": 25, "level": 3}}, {"headings_1": {"content": "Data Collection Methods (DCM)", "page": 24, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.5.2 Interviews", "metadata": {"headings": [{"headings_0": {"content": "2.5.2 Interviews", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.1 Documents Review", "page": 25, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I conducted interviews with various key officials to corroborate information from documents reviewed. These included; Accounting Officers, Human Resource Officers, Economists and Statisticians, M&E officers/ professionals, Head of Accounts, Project Accountants, and Heads of various departments at various implementation levels to understand the underlying root causes for identified performance gaps. The details of the key interview persons and purpose for the interviews are detailed in", "metadata": {"headings": [{"headings_0": {"content": "2.5.2 Interviews", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.1 Documents Review", "page": 25, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Appendix IV.", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV.", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.2 Interviews", "page": 25, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.5.3 Physical inspections", "metadata": {"headings": [{"headings_0": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}, {"headings_1": {"content": "Appendix IV.", "page": 25, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I also carried out field inspections to establish the existence, functionality and the level of achievement of planned entity targets in line with the set annual performance targets and establish the reasons for none achievement of the desired targets. In addition, physical observations were conducted on undertaken procurement of certain goods to establish whether the quality, quantity and cost were commensurate with what was defined in the statement of requirements by the users and delivered within the agreed time as per the contractual commitments. \n2.6", "metadata": {"headings": [{"headings_0": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}, {"headings_1": {"content": "Appendix IV.", "page": 25, "level": 3}}, [{"headings_0": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}, {"headings_1": {"content": "Appendix IV.", "page": 25, "level": 3}}]], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Limitation of the PFM Assessment", "metadata": {"headings": [{"headings_0": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Ministry of Finance, Planning and Economic Development (MoFPED) is the entity responsible for Public Financial Management (PFM) rules and regulations and centralizes most of the control functions over the key phases of the PFM cycle. As a policy provider, it controls the operations of other related entities.", "metadata": {"headings": [{"headings_0": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "However, the scope of the audit did not include the assessment of the functioning of other related key entities that contribute to the implementation of the PFM core processes such as National Planning Authority (NPA), Office of the Prime Minister (SDG Secretariat and disaster preparedness), Uganda Bureau of Statistics (UBOS), Ministry of Education and Sports, Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) among others which are under the control of these selected PFM institutions yet it is possible that the PFM risks which are identified in the core PFM entities and line MDA\u2019s may be influenced by performance gaps or poor functioning of the system in other related entities. This limited identification of PFM system risks to the assessed entities rather than the system as a whole (holistically) to enable \n18 \nmaking of evidence based recommendation to address any bottlenecks to the PFM system performance.", "metadata": {"headings": [{"headings_0": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}, [{"headings_0": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}], [{"headings_0": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}, {"headings_1": {"content": "2.5.3 Physical inspections", "page": 25, "level": 3}}]], "page": 25, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "2.7 Data analysis", "metadata": {"headings": [{"headings_0": {"content": "2.7 Data analysis", "page": 26, "level": 3}}, {"headings_1": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The data was analyzed using both qualitative and quantitative approaches. Qualitative data (NDPIII and Strategic plan objectives, annual planned activities and outputs of a capital development and recurrent nature, domesticated SDGs and disaster preparedness plans) was collected and analyzed using methods such as comparative analysis to establish their link to the National comprehensive development planning framework and Agenda 2030. \nQuantitative data (total budgets, total receipts, percentage of unabsorbed funds, ratio of arrears, targets, payroll value, procurement costs, supplementary budgets and others) was collected and analyzed using descriptive statistics (visually displaying data in tables as percentages and counts). \nIn addition, the PFM excel based tool was used for data analysis where for each assessment question, a level of performance was selected which was then graded and automatically converted into a dashboard/ graphical presentation of the assessment results. The performance grading for each assessment question was based on the following criteria as indicated in the table below:", "metadata": {"headings": [{"headings_0": {"content": "2.7 Data analysis", "page": 26, "level": 3}}, {"headings_1": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}, [{"headings_0": {"content": "2.7 Data analysis", "page": 26, "level": 3}}, {"headings_1": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}], [{"headings_0": {"content": "2.7 Data analysis", "page": 26, "level": 3}}, {"headings_1": {"content": "Limitation of the PFM Assessment", "page": 25, "level": 3}}]], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 3: Showing PFM indicator performance assessment levels across the whole budget cycle during the FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Table 3: Showing PFM indicator performance assessment levels across the whole budget cycle during the FY 2022/2023", "page": 26, "level": 1}}, {"headings_1": {"content": "2.7 Data analysis", "page": 26, "level": 3}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**No Grade**", "Indicator not applicable for assessment"], ["**0**", "No evidence of indicator performance by the MDA"], ["**1**", "Limited evidence on indicator performance with major gaps"], ["**2**", "Un satisfactory indicator performance with noted gaps"], ["**3**", "Fairly satisfactory indicator Performance with minor gaps"], ["**4**", "Satisfactory indicator performance by the MDA"]], "metadata": {"headings": [{"headings_0": {"content": "Table 3: Showing PFM indicator performance assessment levels across the whole budget cycle during the FY 2022/2023", "page": 26, "level": 1}}, {"headings_1": {"content": "2.7 Data analysis", "page": 26, "level": 3}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Grading Category/ Levels", "Grade Interpretation/ Comment"], "type": "table"}}, {"content": "Source: OAG PFM process indicator performance grading system", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM process indicator performance grading system", "page": 26, "level": 1}}, {"headings_1": {"content": "Table 3: Showing PFM indicator performance assessment levels across the whole budget cycle during the FY 2022/2023", "page": 26, "level": 1}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The grading further categorized the average performance of key processes as indicated in the table below;", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM process indicator performance grading system", "page": 26, "level": 1}}, {"headings_1": {"content": "Table 3: Showing PFM indicator performance assessment levels across the whole budget cycle during the FY 2022/2023", "page": 26, "level": 1}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 4: Showing the performance grading for key processes and integration of SDGs into PFM Processes", "metadata": {"headings": [{"headings_0": {"content": "Table 4: Showing the performance grading for key processes and integration of SDGs into PFM Processes", "page": 26, "level": 1}}, {"headings_1": {"content": "Source: OAG PFM process indicator performance grading system", "page": 26, "level": 1}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Risk Area**", "0 \u2264 Performance Grade<1", "Very High Risk Area"], ["**Risk Area**", "1 \u2264 Performance Grade < 2", "High Risk Area"], ["", "2 \u2264 Performance Grade <3", "Medium Risk Area"], ["3 \u2264 Performance Grade <4", "Low Risk Area", null], ["", "Performance Grade = 4", "No Risks"], ["", "No grade assigned for this key question or for all of the key questions under this process", ""]], "metadata": {"headings": [{"headings_0": {"content": "Table 4: Showing the performance grading for key processes and integration of SDGs into PFM Processes", "page": 26, "level": 1}}, {"headings_1": {"content": "Source: OAG PFM process indicator performance grading system", "page": 26, "level": 1}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Risk denomination", "Performance grade", "Grading category"], "type": "table"}}, {"content": "19", "metadata": {"headings": [{"headings_0": {"content": "Table 4: Showing the performance grading for key processes and integration of SDGs into PFM Processes", "page": 26, "level": 1}}, {"headings_1": {"content": "Source: OAG PFM process indicator performance grading system", "page": 26, "level": 1}}], "page": 26, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "page": 27, "level": 1}}, {"headings_1": {"content": "Table 4: Showing the performance grading for key processes and integration of SDGs into PFM Processes", "page": 26, "level": 1}}], "page": 27, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i nto", "metadata": {"headings": [{"headings_0": {"content": "i nto", "page": 27, "level": 1}}, {"headings_1": {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "page": 27, "level": 1}}], "page": 27, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "PFM Processes \nThe interpretation and conclusions on analysis of results/dashboard (graphical) PFM process performance in terms of risk categorization was denoted by the following;", "metadata": {"headings": [{"headings_0": {"content": "i nto", "page": 27, "level": 1}}, {"headings_1": {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "page": 27, "level": 1}}, [{"headings_0": {"content": "i nto", "page": 27, "level": 1}}, {"headings_1": {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "page": 27, "level": 1}}]], "page": 27, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "Risk area below this line"], ["", "Target performance grade"]], "metadata": {"headings": [{"headings_0": {"content": "i nto", "page": 27, "level": 1}}, {"headings_1": {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "page": 27, "level": 1}}], "page": 27, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1"], "type": "table"}}, {"content": "20", "metadata": {"headings": [{"headings_0": {"content": "i nto", "page": 27, "level": 1}}, {"headings_1": {"content": "Source: OAG performance grading system for the key processes and Integration of SDGs", "page": 27, "level": 1}}], "page": 27, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "CHAPTER THREE", "metadata": {"headings": [{"headings_0": {"content": "CHAPTER THREE", "page": 28, "level": 3}}, {"headings_1": {"content": "i nto", "page": 27, "level": 1}}], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.0", "metadata": {"headings": [{"headings_0": {"content": "CHAPTER THREE", "page": 28, "level": 3}}, {"headings_1": {"content": "i nto", "page": 27, "level": 1}}], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "metadata": {"headings": [{"headings_0": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}, {"headings_1": {"content": "CHAPTER THREE", "page": 28, "level": 3}}], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "This chapter presents the results of the assessment, audit findings, conclusions and recommendations of the critical PFM processes made to further enhance performance of the core PFM institutions and MDAs in the implementation of the PFM system to deliver services to the citizens of Uganda. \n3.1", "metadata": {"headings": [{"headings_0": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}, {"headings_1": {"content": "CHAPTER THREE", "page": 28, "level": 3}}, [{"headings_0": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}, {"headings_1": {"content": "CHAPTER THREE", "page": 28, "level": 3}}]], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Overall Performance of Government PFM system Processes", "metadata": {"headings": [{"headings_0": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}, {"headings_1": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The budget cycle/process aims to ensure that resources are allocated to meet national socio-economic priorities and to improve the quality and effectiveness of spending within sustainable fiscal limits. \nOn the basis of the methodology and assessment criteria used, the average overall PFM Government performance based on the selected entities during the financial year 2022/23 was 3.0 which is fairly satisfactory performance. The overall performance is an average of all the key processes assessed. \nThe performance score is above the risk line area of 2 but below the performance target grade of 4. The overall Government performance of the PFM key processes is presented in the figure 2 below;", "metadata": {"headings": [{"headings_0": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}, {"headings_1": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}, [{"headings_0": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}, {"headings_1": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}], [{"headings_0": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}, {"headings_1": {"content": "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS", "page": 28, "level": 3}}]], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Figure 2: Showing Government performance along each PFM process", "metadata": {"headings": [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Figure 2 Showing Government performance along each PFM process for the for the FY 2022/2023.  \nFY 2022/2023 \nSource: OAG PFM performance assessment tool dashboard results for the FY 2022/2023 \nFrom figure above, it can be observed that Budget Approval had the highest score of 3.2, indicating a relatively effective functioning PFM process across the sampled Government institutions. In addition, Accounting, Reporting, and Oversight performance was at 3.1, indicating a strong framework for financial transparency and accountability by Government of Uganda. However, the PFM system assessment indicated major weaknesses in Budget preparation; Macroeconomic Policy, Fiscal \n21 \nPolicy and Strategic Budgeting; as well as Financial Management and Service Delivery, with scores of 2.8, 2.9 and 2.8 respectively. \nThe factors explaining the performance of these processes are presented as follows: \n3.2", "metadata": {"headings": [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}, [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}], [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}], [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}], [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}], [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}], [{"headings_0": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, {"headings_1": {"content": "Overall Performance of Government PFM system Processes", "page": 28, "level": 3}}]], "page": 28, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting", "metadata": {"headings": [{"headings_0": {"content": "Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting", "page": 29, "level": 3}}, {"headings_1": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "PFMA, 2015 Section 18 (1)(a) states that the Minister 7 shall, by the end of February and October of each financial year, make a report to Parliament on the current and projected state of the economy. \nI assessed the effectiveness of Macroeconomic Policy, Fiscal Policy and Strategic Budgeting and observed that, while the process demonstrated fairly satisfactory overall performance with a score of 2.9, below the defined performance threshold (Grade < 4), the underlying dominant root causes for the suboptimal national-level performance for the PFM process were Policy and legal framework as well as Communication and stakeholder management where each accounted for 50% of the dominant root causes. This emphasizes that the problem at hand is a result of a combination of deficiencies in both the policy and legal framework; and communication and stakeholder management. \nIn addition, the figure below highlights core PFM institutional (MoFPED and URA) scores that contributed to the overall Government aggregated performance under the Macroeconomic Policy, Fiscal Policy and Strategic Budgeting process;", "metadata": {"headings": [{"headings_0": {"content": "Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting", "page": 29, "level": 3}}, {"headings_1": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}, [{"headings_0": {"content": "Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting", "page": 29, "level": 3}}, {"headings_1": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}], [{"headings_0": {"content": "Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting", "page": 29, "level": 3}}, {"headings_1": {"content": "Figure 2: Showing Government performance along each PFM process", "page": 28, "level": 2}}]], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Figure 3: Showing Government performance on Macroeconomic policy, fiscal policy and strategic budgeting PFM process for the FY 2022/23", "metadata": {"headings": [{"headings_0": {"content": "Figure 3: Showing Government performance on Macroeconomic policy, fiscal policy and strategic budgeting PFM process for the FY 2022/23", "page": 29, "level": 2}}, {"headings_1": {"content": "Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting", "page": 29, "level": 3}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Ministry of Finance", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 29, "level": 3}}, {"headings_1": {"content": "Figure 3: Showing Government performance on Macroeconomic policy, fiscal policy and strategic budgeting PFM process for the FY 2022/23", "page": 29, "level": 2}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Revenue Authority", "metadata": {"headings": [{"headings_0": {"content": "Revenue Authority", "page": 29, "level": 3}}, {"headings_1": {"content": "Ministry of Finance", "page": 29, "level": 3}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "01234", "metadata": {"headings": [{"headings_0": {"content": "Revenue Authority", "page": 29, "level": 3}}, {"headings_1": {"content": "Ministry of Finance", "page": 29, "level": 3}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**2.9**", ""], ["**3.0**", null]], "metadata": {"headings": [{"headings_0": {"content": "Revenue Authority", "page": 29, "level": 3}}, {"headings_1": {"content": "Ministry of Finance", "page": 29, "level": 3}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1"], "type": "table"}}, {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The average performance score of 2.9 is majorly explained by the following factors; \n7 In this Act unless the context otherwise requires \u2014 \u201cMinister\u201d means the Minister responsible for finance \n22 \nDuring the assessment of this process, I observed the following good practices;", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}, [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}]], "page": 29, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "- MoFPED prepared the National Budget Framework Paper (NBFP) for FY 2022/23 \u2013 FY 2026/27 by 31 st December 2021 in compliance with the deadline set in the PFMA. The theme for the NBFP was \u201cFull Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.\u201d The same was submitted and approved by parliament on 25th January 2023.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "list"}}, {"content": "- The Medium-term forecasts were done for the main fiscal indicators, e.g., revenue by type, expenditure, fiscal deficit (budget balance), and underlying assumptions. These forecasts formed part of the budget documentation submitted to Parliament.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "list"}}, {"content": "However, the following were the observed PFM risks;", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, {"headings_1": {"content": "Revenue Authority", "page": 29, "level": 3}}], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.2.1 Debt Sustainability", "metadata": {"headings": [{"headings_0": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "According to section 42 (1) (2) of the PFMA 2015 (as amended) states that the Minister shall be responsible for the management of the public debt, guarantees, and any other financial liabilities of Government. Additionally, the Minister shall, by 1st April, prepare and submit to Parliament a detailed report of the preceding financial year, on the management of the public debt, guarantees and the other financial liabilities of Government. \nDebt Sustainability analysis is primarily conducted during the formulation of macroeconomic policies when assessing the broader economic context, as it involves evaluating the country's ability to manage and sustain its debt levels within the macroeconomic framework. \nThis analysis helps policymakers understand the implications of debt on the overall economy, assesses the risks associated with borrowing, and guides decisions related to fiscal policy, including budget planning and allocation of resources, as its debt that is used to finance the fiscal deficit of the budget.", "metadata": {"headings": [{"headings_0": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}, [{"headings_0": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}], [{"headings_0": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 29, "level": 1}}]], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Debt to GDP Ratio", "metadata": {"headings": [{"headings_0": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}, {"headings_1": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The Debt to GDP ratio is a measure that compares what a country owes (total debt) and what it produces (manufactures or a service provided). The ratio reliably indicates a country\u2019s ability to pay back its debt. International Monetary Fund (IMF) recommends 50% as the point of safety for public debt. \nComputation of Uganda\u2019s Debt to GDP revealed a consistent linear growth over a period of five years and in the year under review, it was noted that the Debt to GDP decreased by 0.7% from 53.4% to 52.7% in the FYs 2021/22 and FY 2022/23 respectively. In order to maintain the Debt to GDP Ratio within sustainable limits, Government of Uganda developed a medium Term Debt Management Strategy (2022/2023-2025/2026). The graph below illustrates the trend; \n23", "metadata": {"headings": [{"headings_0": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}, {"headings_1": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}, [{"headings_0": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}, {"headings_1": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}], [{"headings_0": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}, {"headings_1": {"content": "3.2.1 Debt Sustainability", "page": 30, "level": 3}}]], "page": 30, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Figure 4: Showing Debt to GDP Ratio", "metadata": {"headings": [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}], "page": 31, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Source: Uganda Bureau of Statistics and DMFAS \nFrom the graph above, it can be observed that whereas Uganda\u2019s Debt to GDP ratio has reduced by 0.7% in the year under review this is still above the recommended 50% point of safety for public debt. It is further observed by the linear trend of the debt to GDP ratio over the years analysed to show an increasing trend in the medium term, which creates a risk factor of accumulation of unsustainable debt. \nA high debt-to-GDP ratio may make it more difficult for Government to pay both internal and external debt and may lead creditors to seek higher interest rates to compensate for financing risk due to likely default or unnecessary debt extension. \nFurther analysis of interest to total revenue ratio revealed for the year under review that 22.5% of the total domestic revenue collected (27.21Tn) was used to service interest payments above the benchmark of 14.6% in the Charter of Fiscal responsibility. This reduces the funds available for funding other critical Government expenditures. \nThe PSST explained that Government is aware of the increase in debt levels, as a result of the need to finance development projects. To maintain prudent and sustainable levels of public debt, Government is making efforts to reduce borrowing in the medium term, mostly by increasing tax revenues as well as re-purposing the budget to areas with large multiplier effects for economic growth. Note however that the debt to GDP ratio is projected to reduce to 49.3% in 2025/26 as stipulated in the charter for fiscal responsibility. \n24", "metadata": {"headings": [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}, [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}], [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}], [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}], [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}], [{"headings_0": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}, {"headings_1": {"content": "Debt to GDP Ratio", "page": 30, "level": 3}}]], "page": 31, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 32, "level": 3}}, {"headings_1": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to put in place measures to effectively implement the medium term Debt management Strategy (2022/2023-2025/2026) to ensure that level of public debt remains sustainable both in the medium and long term.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 32, "level": 3}}, {"headings_1": {"content": "Figure 4: Showing Debt to GDP Ratio", "page": 31, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "metadata": {"headings": [{"headings_0": {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "page": 32, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 13(8) of the PFMA, 2015 requires that the annual budget shall be based on sound analysis and forecasts of macroeconomic developments and fiscal prospects. In addition, section 13(9)(c) requires that the annual budget shall supply detailed information on recent fiscal developments and forecasts of revenue among others for the period determined by the Minister. \nThrough interviews with the principal economist at the macroeconomic policy department at MoFPED, it was noted that URA is the technical advisor to MoFPED and it is charged with the responsibility of forecasting revenue during budget preparation process. Whereas I observed correspondences between URA and MoFPED regarding revenue forecasting, there were no formal established processes or standards at URA to guide the tax revenue forecast preparation process.  \nThis was attributed to lack of policy/ guidelines for tax revenue forecasting. This poses a risk on the accuracy, consistency and completeness of the revenue forecasts shared with MoFPED for consolidation.", "metadata": {"headings": [{"headings_0": {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "page": 32, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}, [{"headings_0": {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "page": 32, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}]], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "The Accounting Officer of URA explained that the revenue forecasting process within URA is undertaken by the Research and Innovations Division in the IT Department and overseen by the Assistant Commissioner. The team is composed of a Manager and a Supervisor who consultatively and work through the models to arrive at the forecasts. These are eventually shared with the Ministry.  \nThe guidelines and standards for the forecasting process are not yet in place however the work will commence in January 2024 and is expected to be completed by Dec 2024 after due engagement with all the stakeholders including the Ministry of Finance, Planning and Economic Development.", "metadata": {"headings": [{"headings_0": {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "page": 32, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 32, "level": 3}}, {"headings_1": {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "page": 32, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the Accounting Officer of URA to develop and implement tax revenue forecasting policy/guidelines in consultation with MoFPED.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 32, "level": 3}}, {"headings_1": {"content": "3.2.1 Absence of formal process for tax revenue forecasting", "page": 32, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "metadata": {"headings": [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 9(3) of the PFMA, 2015 requires that the Minister shall for each financial year prepare a Budget Framework Paper which shall be consistent with the National Development Plan and with the Charter for Fiscal Responsibility. According to section 9(4) of the PFMA, 2015 states that the BFP shall include the fiscal risk statement which among others shall contain the budget sensitivity analysis. \n25 \nThe budget sensitivity analysis is carried out to assess the fiscal impact of the selected macroeconomic risks (Reduction in real GDP, exchange rate volatility, and volatility of commodity prices on imports). Changes in macroeconomic conditions can affect the fiscal accounts to varying degrees. Of particular note is the susceptibility of revenue estimates to alterations in macroeconomic assumptions, as these changes directly affect the tax base. \nThrough review of the fiscal risk statement for FY2022/2023, I noted that whereas MoFPED developed macro-fiscal (budget) sensitivity analysis providing different alternative scenarios accounting for shocks and other buffer cases, there was no evidence that these results were discussed by the parliamentary budget committee during the budget process of discussing the budget framework paper as required by section 9(8) of the PFMA, 2015. \nThis was attributed to the inadequate sensitization of members of the parliamentary budget committee on the importance of the fiscal risk statement. \nFailure to comprehensively discuss the fiscal risk statement which includes the budget sensitivity analysis and its results could result in unpreparedness for economic uncertainties, uninformed decision-making and missed opportunities for contingency planning. \nThe PSST explained that it was true that budget sensitivity analysis was used to estimate possible deviation from the budget due to changes in macroeconomic assumptions are done every year and mitigation measures identified to ensure prudent macroeconomic management and budget credibility. However, consideration is being done at the policy making and decision making levels to engage in discussion with key stakeholders for an all-inclusive analysis.", "metadata": {"headings": [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}, [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}], [{"headings_0": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 32, "level": 3}}]], "page": 32, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 33, "level": 3}}, {"headings_1": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}], "page": 33, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to consider prioritizing discussing the results of the Budget sensitivity analysis with all the relevant stakeholders specifically parliament so as to ensure that the parliamentary budget committee is adequately sensitized on the relevance of the fiscal risk statement to facilitate an evidence based budget approval process.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 33, "level": 3}}, {"headings_1": {"content": "3.2.2 No evidence of discussion of Macro-fiscal sensitivity analysis by the parliamentary budget committee", "page": 32, "level": 8}}], "page": 33, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.2.3 Incomplete Macro Economic assumptions", "metadata": {"headings": [{"headings_0": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 33, "level": 3}}], "page": 33, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Schedule 3 of the PFMA, 2015 requires that the medium term macroeconomic forecast shall indicate the actual, estimated, and projections covering the previous two financial years, the current financial year, and the next five financial years and shall indicate in respect of each financial year the following economic variables\u2014 (a) the average and year end gross domestic product; (b) the rate of inflation (average and year-end); (c) the rate of employment and unemployment; (d) the average and year end exchange rate; (e) the interest rates; and (f) the money supply. \nI noted that the Macroeconomic assumptions included in the budget only cover a select few indicators of GDP and inflation. There was no evidence to show that indicators such as interest rates to explain the performance of the economy through monetary policy measures in place, exchange rates and employment rates were \n26 \nconsidered. I noted that the indicators used in the year under review and the proceeding years were incomprehensive as detailed in the table1 below;", "metadata": {"headings": [{"headings_0": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 33, "level": 3}}, [{"headings_0": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 33, "level": 3}}], [{"headings_0": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 33, "level": 3}}], [{"headings_0": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 33, "level": 3}}]], "page": 33, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts", "metadata": {"headings": [{"headings_0": {"content": "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts", "page": 34, "level": 1}}, {"headings_1": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Nominal GDP at Market Prices (UGX Bn)**", "139, 689", "147,96 2", "151,648", "167,3 71", "186,632", "209,481", "232,808", "262,092"], ["**Real MP GDP growth**", "3.0%", "3.4%", "3.8%", "6.0%", "6.5%", "7.0%", "7.4%", "7.6%"], ["**Headline Inflation (period average)**", "2.3%", "2.5%", "2.7%", "4.6%", "5.2%", "5.3%", "3.9%", "5.0%"], ["**Core Inflation (period average)**", "2.3%", "3.5%", "2.4%", "3.4%", "5.0%", "5.3%", "3.6%", "5.0%"]], "metadata": {"headings": [{"headings_0": {"content": "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts", "page": 34, "level": 1}}, {"headings_1": {"content": "3.2.3 Incomplete Macro Economic assumptions", "page": 33, "level": 3}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Macroecono mic Assumption s", "Outt urn 201 9/2 0", "Outtu rn 2020 /21", "Projected Outturn 2021/22", "Proje ction 2022 /23", "Projectio n 2023/24", "Projection 2024/25", "Projecti on 2025/2 6", "Projection 2026/27"], "type": "table"}}, {"content": "Source; Budget framework paper FY 2022/20223", "metadata": {"headings": [{"headings_0": {"content": "Source; Budget framework paper FY 2022/20223", "page": 34, "level": 1}}, {"headings_1": {"content": "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts", "page": 34, "level": 1}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Ignoring key indicators like interest rates and employment rates may hinder a comprehensive understanding of the economic landscape, limiting the Government's ability to implement targeted and well-informed policies.", "metadata": {"headings": [{"headings_0": {"content": "Source; Budget framework paper FY 2022/20223", "page": 34, "level": 1}}, {"headings_1": {"content": "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts", "page": 34, "level": 1}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "The PSST explained that the macroeconomic policy department uses an economy- wide model and a macroeconomic framework that has many possible economic indicators including interest rates, exchange rates and labour (employment supply and demand). The indicators that are included in the published budget books are only a selection of those considered relevant to facilitate budget discussions with stakeholders. It is also important to note that some indicators that are forecasted e.g. exchange rates are deliberately not published to avoid possible speculation which can be detrimental for economic management. Otherwise, all the variables in the model are used in economic analysis and policy-decision making, ensuring that the likelihood of inaccurate predictions is minimized. As highlighted by audit, the accuracy of economic projections has considerably increased over the years with minimal margins of error.", "metadata": {"headings": [{"headings_0": {"content": "Source; Budget framework paper FY 2022/20223", "page": 34, "level": 1}}, {"headings_1": {"content": "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts", "page": 34, "level": 1}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Audit Comment", "metadata": {"headings": [{"headings_0": {"content": "Audit Comment", "page": 34, "level": 3}}, {"headings_1": {"content": "Source; Budget framework paper FY 2022/20223", "page": 34, "level": 1}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Whereas the PSST explained that the macroeconomic policy department uses an economy-wide model with all the possible economic indicators, interactions with the macroeconomic modelling system used by MoFPED indicated that there was no evidence of inclusion of exchange rates, interest rates and level of employment data.", "metadata": {"headings": [{"headings_0": {"content": "Audit Comment", "page": 34, "level": 3}}, {"headings_1": {"content": "Source; Budget framework paper FY 2022/20223", "page": 34, "level": 1}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 34, "level": 3}}, {"headings_1": {"content": "Audit Comment", "page": 34, "level": 3}}], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to consider including exchange rates, interest rates and level of employment as assumptions in the forecasting model. For macroeconomic \n27 \nmanagement purposes, such indicators may not be included in the public budget policy documents to avoid distortions by speculators.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 34, "level": 3}}, {"headings_1": {"content": "Audit Comment", "page": 34, "level": 3}}, [{"headings_0": {"content": "Recommendation", "page": 34, "level": 3}}, {"headings_1": {"content": "Audit Comment", "page": 34, "level": 3}}], [{"headings_0": {"content": "Recommendation", "page": 34, "level": 3}}, {"headings_1": {"content": "Audit Comment", "page": 34, "level": 3}}]], "page": 34, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.2.4 Absence of explanations on variances from prior year forecasts", "metadata": {"headings": [{"headings_0": {"content": "3.2.4 Absence of explanations on variances from prior year forecasts", "page": 35, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 34, "level": 3}}], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Schedule 3 of the PFMA, 2015 requires that the medium term fiscal forecast shall cover the previous two financial years, the current financial year, and the next five financial years. Explanations to any variations are considered relevant for stakeholders understanding of forecasts and actual performance. \nI noted that although MOFPED prepared Medium-term forecasts for the main fiscal indicators, I.e., revenue by type, expenditure, fiscal deficit (budget balance), and underlying macroeconomic assumptions which formed part of the budget documentation sent to Parliament, the information presented in the budget documents, did not provide any explanation for the deviations between prior year forecasts and actual fiscal out-turns. Below is a table indicating the variances between the forecasts and the actual performance of some of the fiscal indicators.", "metadata": {"headings": [{"headings_0": {"content": "3.2.4 Absence of explanations on variances from prior year forecasts", "page": 35, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 34, "level": 3}}, [{"headings_0": {"content": "3.2.4 Absence of explanations on variances from prior year forecasts", "page": 35, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 34, "level": 3}}]], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 6: Showing deviations between forecasts and actual performance", "metadata": {"headings": [{"headings_0": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}, {"headings_1": {"content": "3.2.4 Absence of explanations on variances from prior year forecasts", "page": 35, "level": 3}}], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**2019/20**", "Revenues  and grants", "22.547", "18.074", "4.473", "19.84"], [null, "Expenditure", "33.111", "28.347", "4.764", "14.39"], [null, "Fiscal balance", "10.564", "10.273", "0.291", "2.75"], ["**2020/21**", "Revenues  and grants.", "23.530", "21.239", "2.291", "9.74"], [null, "Expenditure", "36.563", "35.802", "0.761", "2.08"], [null, "Fiscal balance", "13.034", "14.564", "1.53", "11.74"], ["**2021/22**", "Revenues  and grants", "23.850", "22.993", "0.857", "3.59"], [null, "Expenditure", "34.233", "34.967", "(734)", "(2.14)"], [null, "Fiscal balance", "10.383", "11.973", "1.59", "15.31"]], "metadata": {"headings": [{"headings_0": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}, {"headings_1": {"content": "3.2.4 Absence of explanations on variances from prior year forecasts", "page": 35, "level": 3}}], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Financial year", "Category", "Forecast UGX (Tn)", "Actual performance UGX (Tn)", "Variance UGX (Tn)", "% Variance"], "type": "table"}}, {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, {"headings_1": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "performance reports for the years analyzed.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, {"headings_1": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "From the table above, it can be observed that the trend in the variances of the three parameters of revenue and grants, expenditure, and fiscal balance across the three financial years indicates accuracy of forecasts. In terms of revenues and grants, there is a consistent overestimation, with the percentage variance decreasing from 19.84% in 2019/20 to 3.59% in 2021/22. This suggests a potential learning curve in refining revenue forecasting accuracy over time. On the other hand, the variances in expenditure show a decreasing trend, moving from 14.39% in 2019/20 to -2.14% in 2021/22, indicating an improvement in predicting and managing actual spending. The fiscal balance variances exhibit fluctuation, with an increase from 2.75% in 2019/20 to 15.31% in 2021/22. This suggests challenges in consistently aligning revenue and expenditure forecasts, impacting the overall fiscal balance. The negative variance in expenditure in 2021/22 signals potential risks such as underestimation of necessary spending. \n28 \nAbsence of explanations for deviations from prior year forecasts during preparation of the budget estimates compromises transparency in arriving at the forecasted values, and hinders effective decision-making in the budgeting process. \nThe PSST stated that the explanations of the deviations are included in the half-year and annual macroeconomic and fiscal performance reports produced every year and submitted to parliament. The annual report also includes a section which provides explanation of compliance or otherwise with the Charter for Fiscal Responsibility. These documents are complementary to the budget documents that are submitted to parliament. Therefore, it is true that the budget documents do not provide detailed explanations of variations between forecasted and actual figures of revenues, expenditures, and fiscal balance but explanations are included in the semi-annual and annual macroeconomic and fiscal reports.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, {"headings_1": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}, [{"headings_0": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, {"headings_1": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}], [{"headings_0": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, {"headings_1": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}], [{"headings_0": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, {"headings_1": {"content": "Table 6: Showing deviations between forecasts and actual performance", "page": 35, "level": 1}}]], "page": 35, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 36, "level": 3}}, {"headings_1": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to ensure that a statement for deviations between Medium Term forecasts and actual performance is included in the BFP at the time of preparing the budget for evidence based decision making purposes. \n3.2.5 Non alignment of the budget estimates with the strategic plan cost", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 36, "level": 3}}, {"headings_1": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}, [{"headings_0": {"content": "Recommendation", "page": 36, "level": 3}}, {"headings_1": {"content": "Source: OAG analysis of the Background to the budgets and Macroeconomic and fiscal", "page": 35, "level": 1}}]], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "estimates", "metadata": {"headings": [{"headings_0": {"content": "estimates", "page": 36, "level": 5}}, {"headings_1": {"content": "Recommendation", "page": 36, "level": 3}}], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "A comparison of the approved budget estimates of the sampled entities with the strategic plan cost estimates indicated significant variations to facilitate implementation of outputs/ activities to deliver on the strategic plan/programme actions. For the entities to effectively implement the strategic plans, the operational plans must be in tandem with the strategic plans in terms of, objectives, performance targets/ indicators and funding requirements to facilitate achievement of the strategic actions. \nReview of the entities\u2019 budget estimates for FY 2022/2023 and the respective strategic plans (2020/2021 \u2013 2024/2025) indicated inconsistencies in the funding requirements for the year under review to implement activities to deliver on strategic plan objectives. Details are shown in the table below;", "metadata": {"headings": [{"headings_0": {"content": "estimates", "page": 36, "level": 5}}, {"headings_1": {"content": "Recommendation", "page": 36, "level": 3}}, [{"headings_0": {"content": "estimates", "page": 36, "level": 5}}, {"headings_1": {"content": "Recommendation", "page": 36, "level": 3}}]], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}, {"headings_1": {"content": "estimates", "page": 36, "level": 5}}], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**URA**", "546.94", "539.83", "7.10", "1.30"], ["**MoFPED**", "2,588.21", "2,638.55", "(50.34)", "(1.95)"], ["**MoWT**", "3,905.16", "957.35", "2,947.81", "75.48"], ["**MoWE**", "5,073.08", "1,508.88", "3,564.20", "70.26"], ["**MoH**", "1,880.59", "1,790.25", "90.34", "4.80"], ["**Parliament**", "1,096.48", "914.98", "181.50", "16.55"], ["**TOTAL**", "**15,090.45**", "**8,349.84**", "**6,740.60**", "**44.67**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}, {"headings_1": {"content": "estimates", "page": 36, "level": 5}}], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "Strategic plan cost estimate FY2022/2023 (UGX. Bn) A", "Approved budget estimates FY 2022/2023 (UGX. Bn) B", "Variance (UGX. Bn) (A-B)", "% variance ((A- B)/A)\\*100"], "type": "table"}}, {"content": "29", "metadata": {"headings": [{"headings_0": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}, {"headings_1": {"content": "estimates", "page": 36, "level": 5}}], "page": 36, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "page": 37, "level": 1}}, {"headings_1": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}], "page": 37, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "From the table above, it was observed that the entities\u2019 operational plans were costed below their respective strategic plans for the period under review. The analysis indicated significant variances between the entities\u2019 annual work plans and the strategic plans estimate of 44.67%. Analysis indicated the greatest variance with MoWE and MoWT of 70% and 76% respectively which were key to the achievement of the budget theme for the year. \nI noted lack of harmonization between the costing of the NDPIII priorities and the MTEF ceilings issued to entities by MoFPED. MoFPED does not put into consideration the strategic plan estimates while designing the indicative Planning Figures (IPFs) for the entities. This may negatively impact the achievement of the programme objectives over the medium term period. \nThe PSST agreed with the audit finding and noted that the issue was discovered during the Analysis of BFPs to ascertain the level of adherence to the guidelines for the transition to Programme MTEF. It was attributed to the limited participation/ representation of Votes in programme working group meetings during preparation of PIAPS. Accordingly, the Ministry of Finance, Planning and Economic Development has engaged the National Planning Authority which has promised to revise the mapping of Votes especially Local Governments across the programmes and the PIAPS to ensure specific challenges are addressed and facilitate effective resource allocation.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "page": 37, "level": 1}}, {"headings_1": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}, [{"headings_0": {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "page": 37, "level": 1}}, {"headings_1": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}], [{"headings_0": {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "page": 37, "level": 1}}, {"headings_1": {"content": "Table 7: Showing the comparison between the strategic plan estimates and the approved budget estimates for the FY2022/2023", "page": 36, "level": 1}}]], "page": 37, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 37, "level": 3}}, {"headings_1": {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "page": 37, "level": 1}}], "page": 37, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the Accounting Officer of MOFPED to liaise with NPA and the respective Accounting Officers to evaluate the possibility of regular review of the strategic planning documents (strategic plan, PIAP) to ensure that their MTEF ceilings are aligned with BFP projections in the medium term so as to facilitate work plan implementation and attain the strategic actions.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 37, "level": 3}}, {"headings_1": {"content": "Source: OAG analysis of strategic plans and approved budget estimates for FY2022/2023", "page": 37, "level": 1}}], "page": 37, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.3 Budget Preparation.", "metadata": {"headings": [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}], "page": 37, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 13 (6) of the PFMA, 2015 states that the annual budget shall be consistent with the National Development Plan, the Charter for Fiscal Responsibility and the Budget Framework Paper. In addition, section 13 (7) of the PFMA, 2015 requires that the annual budget shall be accompanied by a certificate of compliance of the annual budget of the previous financial year issued by the National Planning Authority. \nI assessed the effectiveness of the budget preparation process for the six (6) institutions to determine whether; their budget proposals are aligned to the NDPIII, Medium Term Expenditure Frameworks (MTEFs) and other statements of Government expenditure policy, core sectoral SDGs are reflected in their budget proposals in compliance with the budget preparation procedures among other indicators. \nThe assessment results for the budget preparation process indicated an overall average score of 2.8 which is considered medium risk implying unsatisfactory \n30 \nindicator performance with noted gaps. The dominant root cause for the underperformance under budget preparation process was policy and legal framework.  \nThe performance of the Government PFM Budget preparation process based on the selected entities is indicated in the figure below; \nFigure 5: Showing the performance of the PFM budget preparation process by", "metadata": {"headings": [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}, [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}], [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}], [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}], [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}], [{"headings_0": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 37, "level": 3}}]], "page": 37, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Government institutions", "metadata": {"headings": [{"headings_0": {"content": "Government institutions", "page": 38, "level": 2}}, {"headings_1": {"content": "3.3 Budget Preparation.", "page": 37, "level": 3}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Ministry of Finance", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 38, "level": 1}}, {"headings_1": {"content": "Government institutions", "page": 38, "level": 2}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "01234 2.9", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 38, "level": 1}}, {"headings_1": {"content": "Government institutions", "page": 38, "level": 2}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Revenue Authority 2.8", "metadata": {"headings": [{"headings_0": {"content": "Revenue Authority 2.8", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Finance", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Ministry of Health", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 38, "level": 1}}, {"headings_1": {"content": "Revenue Authority 2.8", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.0", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 38, "level": 1}}, {"headings_1": {"content": "Revenue Authority 2.8", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Water and Environment", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Health", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.6", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Health", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Works and Transport", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.9 \nassessment [MDA-4] tool No dashboard grade results for the FY 2022/2023 Source:  \nOAG  \nPFM  \nperformance", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}, [{"headings_0": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}]], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "The average performance score of 2.8 is majorly explained by the following factors; During the assessment of the PFM budget preparation process for the assessed Government institutions, I observed the following good practices;  \ni)  \nAlignment of budget spending priorities to the strategic plan, NDP III and other key policies and policy priorities.  \nii)  \nCompliance with the budget preparation procedures in terms of legal requirements, budget calendar and budget classification among others.  \niii) Extensive consultations during the budget preparation process with the key stakeholders such as the Civil society, MoFPED, Private Sector, Development Partners (Private sector foundation Uganda-PSFU), Project Preparation Committee, media, Programme Working Groups among others.  \niv)  \nDomestication of SDGs as per the consolidated National planning development framework and the responsibilities/ targets allocated to various contributors of the NDPIII programmes in their respective strategic plans, PIAPs and work plans for implementation. \nThe following were, however, the observed PFM risks;", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}, [{"headings_0": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 38, "level": 1}}]], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.3.1 Underfunding of the contingency fund", "metadata": {"headings": [{"headings_0": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 26 of the PFMA 2015 as amended establishes the contingency fund in which an amount equivalent to 0.5% of the appropriated annual budget of Government of \n31 \nthe previous financial year is replenished to respond to natural disasters/ emergencies. \nI noted consistent underfunding of the contingency fund for the prior years and period under review as shown in the table below;", "metadata": {"headings": [{"headings_0": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}, [{"headings_0": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}], [{"headings_0": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}], [{"headings_0": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 38, "level": 1}}]], "page": 38, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 8; Showing underfunding of the contingency fund", "metadata": {"headings": [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**2020/21**", "202.44", "62.07", "62.07", "140.37", "31%"], ["**2021/22**", "227.47", "62.07", "290.37", "-62.9", "128%"], ["**2022/23**", "223.89", "62.07", "62.07", "161.82", "28%"]], "metadata": {"headings": [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["FY", "Required appropriation to the Contingency fund - UGX Bn A", "Initial Appropriation to the Contingency Fund \u2013 UGX Bn B", "Revised appropriation to the Contingency fund - UGX Bn C", "Variance in appropriation - UGX Bn", "% Funding C/A"], "type": "table"}}, {"content": "Source; OAG Analysis of the IFMS data, Budget estimates FY 2022/2023 and the PFMA, 2015 \nResults from table above indicate that over the years, the initial appropriation to the Contingency Fund remained constant at UGX.62.07 Bn, below the required 0.5% of the appropriated Government annual budget of the previous financial year. \nFor FY 2021/22, I noted that out of UGX.227.47 Bn required from the Contingencies fund, UGX.290.37 Bn was appropriated. The difference of UGX.62.9 Bn arose due to the COVID-19 supplementary funding to finance activities to stop the transmission of the disease. \nUnderfunding of the contingency fund poses risks of failure to adequately respond to emergencies, increased borrowing in case emergency situations occur thereby impacting the Government's ability to handle unforeseen events effectively. \nThe PSST noted that the underfunding of the Fund is due to inadequate revenue inflows. However, as noted in the assessment, some funds are usually allocated each financial year. It is hoped that full funding will be provided in the medium term as revenue inflows improve.", "metadata": {"headings": [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}, [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}], [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}], [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}], [{"headings_0": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}, {"headings_1": {"content": "3.3.1 Underfunding of the contingency fund", "page": 38, "level": 3}}]], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 39, "level": 3}}, {"headings_1": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to put in place measures that will adequately meet funding requirements of the Contingency Fund as required by Law.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 39, "level": 3}}, {"headings_1": {"content": "Table 8; Showing underfunding of the contingency fund", "page": 39, "level": 1}}], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.3.2 Approval of supplementary funding without matching revenue", "metadata": {"headings": [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 25(1) of the Public Finance and Accountability Act (PFMA) as amended 2020 states that the total supplementary expenditure that requires additional resources over and above what is approved by Parliament shall not exceed 3% of the total approved budget for that financial year, without the approval of Parliament. \nDuring the financial year ended 30 th June, 2023, supplementary funding totaling UGX.1.4Tn, which accounted for 2.99% of the maximum 3% allowable by law. However, it was observed that the source of this additional funding wasn't clearly \n32 \noutlined before approval by parliament, leading to a situation where the government's approved expenditure budget was higher than the approved revenue estimates. \nApproval of supplementary budgets without a corresponding increase in revenue/ financing is attributed to weaknesses in law regarding approval of supplementary expenditure which leads to increased funding gap affecting the earlier budget objectives and plans. \nThe PSST explained that the Ministry going forward has reviewed the approval process of supplementary to only consider requests that are either self-funded or present the supplementary to Parliament with a corresponding source of funding. Previous requests were based on budget suppression which was straining the Votes and other budgeted activities.", "metadata": {"headings": [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}, [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}], [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}], [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}], [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}], [{"headings_0": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 39, "level": 3}}]], "page": 39, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 40, "level": 3}}, {"headings_1": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to expedite the review of the approval process of the supplementary budgets to ensure that there is a corresponding source of funding for any approved supplementary expenditure to avoid budget distortions. \n3.3.3 Partial alignment of the annual budget with the long term objectives as", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 40, "level": 3}}, {"headings_1": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}, [{"headings_0": {"content": "Recommendation", "page": 40, "level": 3}}, {"headings_1": {"content": "3.3.2 Approval of supplementary funding without matching revenue", "page": 39, "level": 3}}]], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "set out in the NDPIII", "metadata": {"headings": [{"headings_0": {"content": "set out in the NDPIII", "page": 40, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 40, "level": 3}}], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Through the review of the Certificate of Compliance (CoC) to the annual budget FY 2022/2023 issued by NPA; I noted that there was partial alignment of the BFP intermediate outcomes and targets to those in the NDPIII. The table below shows the BFP alignment to NDPIII of the five (05) entities as per the NPA assessment:", "metadata": {"headings": [{"headings_0": {"content": "set out in the NDPIII", "page": 40, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 40, "level": 3}}], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "metadata": {"headings": [{"headings_0": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}, {"headings_1": {"content": "set out in the NDPIII", "page": 40, "level": 3}}], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**MoFPED**", "64%"], ["**MoWT**", "68.6%"], ["**URA**", "98.3%"], ["**MoH**", "36.4%"], ["**MoWE**", "48%"], ["**Cumulative Alignment.**", "**68%**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}, {"headings_1": {"content": "set out in the NDPIII", "page": 40, "level": 3}}], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "% Alignment"], "type": "table"}}, {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "metadata": {"headings": [{"headings_0": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, {"headings_1": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "From the table above, I noted that overall, there was a moderately satisfactory (68%) alignment of the budget framework paper to the NDP III. Only URA had a satisfactory performance of 98.3% while Ministry of Health (MoH) and Ministry of Water and Environment (MOWE) had unsatisfactory alignment at 36.4% and 48% respectively. \nThis was attributed to the reprioritization process to scale down the programme actions due to the limited budget. \nNone alignment of the spending priorities in the budget with the strategic plan, NDP III and other key policies limits attainment of the desired programme outcomes/ \n33 \nnational strategic objectives as indicated in the key policy documents of Government hence affecting service delivery to the intended beneficiaries", "metadata": {"headings": [{"headings_0": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, {"headings_1": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}, [{"headings_0": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, {"headings_1": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}], [{"headings_0": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, {"headings_1": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}], [{"headings_0": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, {"headings_1": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}], [{"headings_0": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, {"headings_1": {"content": "Table 9: Showing level of alignment of the BFPs to the NDPIII", "page": 40, "level": 1}}]], "page": 40, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendations", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 41, "level": 3}}, {"headings_1": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}], "page": 41, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised; \ni. Accounting Officer of NPA to conduct evidence based cost study to inform Government of the funding requirement needed over the NDP period to implement the entities\u2019 strategic interventions and facilitate achievement of the programme outcomes. The cost study by NPA should form the basis for the MTEF ceilings by MOFPED during preparation of key policy Government. \nii.  \nAccounting Officers of NPA and MOFPED to ensure that where revenue forecasts may not be sufficient to fund implementation of some strategic programme interventions in line with the cost study estimates due to limited resource envelop, a commitment should be made before plan implementation on unfunded priorities in the medium term to prevent actions such as budget repurposing/ reprioritization that may affect budget credibility/ lead to budget distortions. \n3.3.4 Failure to appropriately quantify the cost of SDG interventions in the", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 41, "level": 3}}, {"headings_1": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}, [{"headings_0": {"content": "Recommendations", "page": 41, "level": 3}}, {"headings_1": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}], [{"headings_0": {"content": "Recommendations", "page": 41, "level": 3}}, {"headings_1": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}], [{"headings_0": {"content": "Recommendations", "page": 41, "level": 3}}, {"headings_1": {"content": "Source: NPA CoC to the annual budget report FY 2022/2023. Parliament*: Not considered by NPA for assessment", "page": 40, "level": 1}}]], "page": 41, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "National Budget", "metadata": {"headings": [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}], "page": 41, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Uganda subscribes to the 2030 Agenda for Sustainable Development since its adoption in 2015. Government started implementation of this agenda through national planning, budgeting and implementation systems and frameworks. The agenda for sustainable development was meant to be achieved through the NDP III. \nThe national budget prepared should be consistent with the NDP III as required by Section 13 (6) of the PFMA, 2015. It is against this background that the SDGs are domesticated in the Annual budget of Government.", "metadata": {"headings": [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}, [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}]], "page": 41, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "I reviewed the SDG gap Analysis report issued by Office of the Prime Minister and it indicated that most of Uganda\u2019s policies and entity plans showcased a noticeable level of alignment with SDGs that is unintentional rather than active alignment, as a result there are no clearly earmarked funds specifically for SDGs. I also noted that the assessed entities appropriately considered the core Sustainable Development Goals (SDGs) in their strategic plans, annual work plans and Ministerial policy statements in terms of outputs. However, they were silent on the specific targets and indicators outlined in the SDG framework, a discrepancy also identified during the Mid-term review of the NDP III. \nFurthermore, I observed that although all the entities had domesticated the SDGs as per the consolidated National Planning Development Framework that stipulates responsibilities and targets to entities contributing to Government programs. With the exception of MoWE, none of the assessed entities provided evidence indicating internal allocation of responsibilities towards the domesticated SDGs. \nWhereas the Government of Uganda developed a National SDG Implementation Road Map (2020/21 \u2013 2024/25), it does not provide specific guidance to MALGs on planning, Monitoring and Evaluation of the SDG Interventions. \n34 \nFailure to quantify the cost of SDG interventions poses a risk of failing to achieve the desired indicator targets of the 2030 Agenda for sustainable development as it impedes the effective implementation and monitoring of SDGs.", "metadata": {"headings": [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}, [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}], [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}], [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}], [{"headings_0": {"content": "National Budget", "page": 41, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 41, "level": 3}}]], "page": 41, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 42, "level": 3}}, {"headings_1": {"content": "National Budget", "page": 41, "level": 3}}], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the SDG secretariat under the OPM to review the National SDG Implementation Road Map (2020/21 \u2013 2024/25) and provide specific guidance to MALGs on planning and budgeting, Monitoring and Evaluation of the SDG Interventions.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 42, "level": 3}}, {"headings_1": {"content": "National Budget", "page": 41, "level": 3}}], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.3.5 Under Budgeting of previous year (2021/2022) arrears in the FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "3.3.5 Under Budgeting of previous year (2021/2022) arrears in the FY 2022/2023", "page": 42, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 42, "level": 3}}], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 21(2) of the of the PFMA, 2015 requires that a vote shall not take any credit from any local company or body unless it has no unpaid domestic arrears from a debt in a previous financial year; and it has capacity to pay for the expenditure from the approved estimates as appropriated by Parliament for that financial year. In addition, according to the budget execution circular FY 2022/2023 Para 27, Accounting Officers were urged to prioritize payment of arrears in quarter one on first in first out basis (FIFO) from the verified suppliers captured in the IFMS Arrears database. \nI analyzed data from the approved estimates for the FY 2022/2023, previous year\u2019s audited financial statements for the FY 2021/2022 and IFMS expenditure data which indicated that by the end of the FY 2021/2022, the reported total arrears were UGX.861,881,805,349 and the budget allocation in the FY 2022/2023 provided for only UGX.98,267,418,796 indicating a funding shortfall on domestic arrears of UGX.763,614,386,553 representing 88.6% variance as indicated in the table below;", "metadata": {"headings": [{"headings_0": {"content": "3.3.5 Under Budgeting of previous year (2021/2022) arrears in the FY 2022/2023", "page": 42, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 42, "level": 3}}, [{"headings_0": {"content": "3.3.5 Under Budgeting of previous year (2021/2022) arrears in the FY 2022/2023", "page": 42, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 42, "level": 3}}]], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "metadata": {"headings": [{"headings_0": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}, {"headings_1": {"content": "3.3.5 Under Budgeting of previous year (2021/2022) arrears in the FY 2022/2023", "page": 42, "level": 8}}], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**MoFPED**", "473,153,820,661", "10,706,430,123", "462,447,390,538", "97.74"], ["**Parliament**", "-", "-", "-", "-"], ["**URA**", "124,848,391,310", "-", "124,848,391,310", "100.00"], ["**MOH**", "54,439,306,151", "11,518,463,673", "42,920,842,478", "78.84"], ["**MoWE**", "93,050,000,000", "16,136,032,000", "76,913,968,000", "82.66"], ["**MoWT**", "116,390,287,227", "59,906,493,000", "56,483,794,227", "48.53"], ["**TOTAL**", "**861,881,805,349**", "**98,267,418,796**", "**763,614,386,553**", "**88.60**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}, {"headings_1": {"content": "3.3.5 Under Budgeting of previous year (2021/2022) arrears in the FY 2022/2023", "page": 42, "level": 8}}], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "Outstanding Arrears FY2021/2022 (A)", "Budget Allocation for Arrears FY2022/2023 (B)", "Variance (A-B)=C", "% Variance (C/A \\*100)"], "type": "table"}}, {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Statements  \nfor FY2021/2022 \nFrom table above, it can be observed that whereas URA never budgeted for arrears, all other assessed entities had significantly low budgets for arrears. \n35 \nI computed the ratio of the prior year\u2019s domestic arrears (UGX.861,881,805,349) to revised budgeted for FY 2022/2023 (UGX.8,256,741,258,775) for the assessed six entities and observed a high ratio of 10.4%. \nFailure to budget for all the prior year\u2019s domestic arrears leads to work plan and budget distortions where funds meant for implementation of the approved work plan are reallocated or diverted to payment of unbudgeted arrears. The reallocation or diversion of funds to pay unbudgeted domestic arrears results into delayed implementation of other Government programmes or an increase of arrears or liabilities in those areas that experience shortfall due to reallocation of funds. \nThe Accounting Officers explained that based on the MTEF resource available during the FY, MoFPED allocates an amount to cover arrears for the following FY either in full or in part without holding consultations with the MDAs.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}, [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}, {"headings_1": {"content": "Table 10: Showing performance of outstanding arrears against budget allocations.", "page": 42, "level": 1}}]], "page": 42, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 43, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}], "page": 43, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to ensure that the Accounting Officers regularly update the domestic arrears IFMS module with verified figures to inform national planning and budgeting for arrears in line with Government of Uganda domestic arrears strategy.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 43, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of Approved Budget estimates FY 2022/2023 and Audited Financial", "page": 42, "level": 1}}], "page": 43, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.4 Budget Approval", "metadata": {"headings": [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], "page": 43, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 14 of the Public Finance and Management Act, 2015 provides or elaborates the process of approval of the annual budget by Parliament. The Act requires Parliament to consider and approve the annual budget and work plan of Government for the next financial year, the Appropriation Bill and any other Bills that may be necessary to implement the annual budget by the 31 st of May of each year. \nOnce this is completed, the Minister responsible for Finance prepares the budget speech, which must be read by 15 th June. The signing of the Appropriations Bill by His Excellency the President completes the approval of the budget and gives clearance for the execution of the budget effective 1 st July. \nSection 25 (1) of the PFMA, 2015 (as amended) states that \u2018The total supplementary expenditure that requires additional resources over and above what is approved by Parliament shall not exceed 3% of the total approved budget for that financial year, without approval of Parliament. Section 25 (2) states that \u201cWhere funds are expended under subsection (1), supplementary estimates showing the sums spent shall be laid before parliament within four months after the money is spent.\u201d \nI assessed the Budget Approval process with a primary focus of evaluating the completeness and compliance of the budget submission with legal frameworks, the thoroughness of the budget debate, adherence to due process, and the sufficiency of the approved MDA budgets to support the delivery of core services. \nThe assessment results for the budget approval process indicated an overall average score of 3.2 which is considered low risk implying fairly satisfactory indicator \n36 \nperformance with minor gaps. The dominant root cause for the underperformance under budget approval process was policy and legal framework. \nThe performance of the Government PFM Budget approval process based on the selected entities is indicated in the figure below; \nFigure 6: Showing the performance of the PFM budget approval process by", "metadata": {"headings": [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}, [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}], [{"headings_0": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 43, "level": 3}}]], "page": 43, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Government institutions", "metadata": {"headings": [{"headings_0": {"content": "Government institutions", "page": 44, "level": 2}}, {"headings_1": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "01234", "metadata": {"headings": [{"headings_0": {"content": "Government institutions", "page": 44, "level": 2}}, {"headings_1": {"content": "3.4 Budget Approval", "page": 43, "level": 3}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Finance", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 44, "level": 4}}, {"headings_1": {"content": "Government institutions", "page": 44, "level": 2}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.5 Revenue Authority 4.0 \nParliament \n2.8", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 44, "level": 4}}, {"headings_1": {"content": "Government institutions", "page": 44, "level": 2}}, [{"headings_0": {"content": "Ministry of Finance", "page": 44, "level": 4}}, {"headings_1": {"content": "Government institutions", "page": 44, "level": 2}}], [{"headings_0": {"content": "Ministry of Finance", "page": 44, "level": 4}}, {"headings_1": {"content": "Government institutions", "page": 44, "level": 2}}]], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Health", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 44, "level": 4}}, {"headings_1": {"content": "Ministry of Finance", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.0", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 44, "level": 4}}, {"headings_1": {"content": "Ministry of Finance", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Water and Environment", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 44, "level": 4}}, {"headings_1": {"content": "Ministry of Health", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.5", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 44, "level": 4}}, {"headings_1": {"content": "Ministry of Health", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Works and Transport", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 44, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.5", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 44, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "[MDA-4] No grade", "metadata": {"headings": [{"headings_0": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 44, "level": 4}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "During the assessment of the PFM budget approval process for the selected Government entities, I observed the following good practices; \ni) MoFPED submitted a comprehensive and complete budget proposal to parliament by 31 st March, 2022 for the FY 2022/23 as required by the PFMA for approval. The budget was submitted to parliament, debated and approved on 20 th May 2022. \nii) Parliament has technical staff attached to the Sectoral committees of Parliament, who support the committees to ably scrutinize, debate and amend the budget. The staff comprise of research assistants who are qualified Accountants, lawyers, Statisticians, Economists, Social scientists, financial analysts among others. \niii) Review of the budget process calendar showed that Parliament is involved in in-year budget and supplementary budget reviews. \niv) Submission of Budget documents was done in accordance with the defined timelines in the law. \nv) Parliamentary meetings and debates are open to the public. In addition, the debates on the budget are open to the mass media and are broadcasted on various Televisions and Radios as well as published in the print media (newspapers and other publications). \nHowever, the following were the observed PFM risks; \n37", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}, [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, {"headings_1": {"content": "[MDA-4] No grade", "page": 44, "level": 3}}]], "page": 44, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "metadata": {"headings": [{"headings_0": {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "page": 45, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}], "page": 45, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Article 155 (41) of the Constitution of the Republic of Uganda, Section 12 and Section 13(4) of the Public Finance Management Act 2015(as amended); and Rule 148(2), 149(21 and 149(3) of the Rules of Procedure of Parliament, mandate the Budget Committee to among others examine, discuss and review policies, programmes and the annual budget estimates; and where necessary, make appropriate recommendations to Parliament. \nI observed from a review of the budget committee report for F/Y 2022/2023 that some of the recommendations made by Parliament during in-year budget reviews were not adhered to or complied with by MoFPED as some activities/ projects which were rejected by Parliament were funded and/or implemented by MoFPED without justification and authorization. \nFor instance, Parliament recommended that approval of UGX 86.4 billion GoU contribution to Munyonyo Commonwealth Resort and UGX 46.2Bn earmarked for payment of commitment fees for low-performing loans/projects should be withheld or halted, however, it was established that the said activities were funded by MoFPED in disregard to the Parliamentary recommendations. In addition, Parliament rejected the continued funding for the construction of Lubowa Super Specialized Hospital for lack of substantial progress and for denying Parliamentary oversight committees opportunity to carry out inspections of the hospital site however, MoFPED has continued funding the activity in contravention of the Parliamentary recommendation.", "metadata": {"headings": [{"headings_0": {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "page": 45, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}, [{"headings_0": {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "page": 45, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}], [{"headings_0": {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "page": 45, "level": 3}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool dashboard results for the FY 2022/2023", "page": 44, "level": 1}}]], "page": 45, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 45, "level": 3}}, {"headings_1": {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "page": 45, "level": 3}}], "page": 45, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to put in place mechanisms to ensure that the recommendations of the budget committee and other committees of Parliament are complied with to reflect the critical political priorities and address the needs of the citizenry.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 45, "level": 3}}, {"headings_1": {"content": "3.4.1 Non-Adherence by MoFPED to Parliamentary Budget recommendations", "page": 45, "level": 3}}], "page": 45, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "metadata": {"headings": [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}], "page": 45, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 13 (6) of the PFMA, 2015 states that the annual budget shall be consistent with the National Development Plan. \nI noted that whereas the NDP III adopted the Program based approach to Planning and Budgeting, this has not been fully embraced by Parliament. Parliamentary rules of procedure and budget issues are handled by sector committees which are linked to votes yet the BFP is aligned to a Programme format. This is because the programmatic approach to planning and budgeting envisaged by the NDP III is not supported by adequate legal framework since it is not provided for in the PFMA and the supporting Regulations. \nIn addition, I noted from a review of the Parliamentary Hansard of 5th January 2023 that members of parliament had not yet properly internalized and/or understood the Programme based approach to budgeting. Members stated that although Government seeks to ensure better service delivery and to improve value for money \n38 \nthrough Programme based budgeting, scrutinizing the funds under programmes is an uphill task compared to sector-based budgeting. \nAs a result of the above, the budget is still being processed through the various Sectoral committees which contradicts the programme based budgeting architecture. \nManagement of the Parliamentary Commission agreed with the recommendation and emphasised that the MOFPED should explore the possibility of studying and compiling all areas in the Public Finance and Management Act, 2015 that require amendments in line with the Programme-Based Budgeting Approach.", "metadata": {"headings": [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}, [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}], [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}], [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}], [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}], [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}], [{"headings_0": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, {"headings_1": {"content": "Recommendation", "page": 45, "level": 3}}]], "page": 45, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 46, "level": 3}}, {"headings_1": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}], "page": 46, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to engage Parliament to ensure that the necessary amendments to the PFMA and the PFM Regulations are made to support the implementation of the programmatic approach to planning and budgeting. Additionally, capacity building including continuous sensitization and/or trainings should be undertaken with members of Parliament in order to equip them with skills for scrutinizing program based budgets as well as secure their full support and appreciation of the reform. \n3.5", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 46, "level": 3}}, {"headings_1": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}, [{"headings_0": {"content": "Recommendation", "page": 46, "level": 3}}, {"headings_1": {"content": "3.4.2 Failure to fully align the Programme-Based approach in the Budget approval process", "page": 45, "level": 8}}]], "page": 46, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Financial Management and Service Delivery", "metadata": {"headings": [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}], "page": 46, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "PFMA, 2015 Section 21 (1) states that, An 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. In addition, the TAI, 2017 Section 6.6 (3), states that an Accounting Officer shall have the responsibility of Preventing and detecting fraud, embezzlement and similar illegal acts. \nI assessed the Financial Management and Service Delivery process of the selected entities where I reviewed the sub-processes of; Procurement, Payroll, Information Systems, Revenue Policy and Management, Cash Management, Internal Controls and Audit, and Monitoring of Service Delivery. \nThe assessment results for the Financial Management and Service Delivery process indicated an overall average score of 2.8 which is considered Medium risk implying unsatisfactory indicator performance with noted gaps. \nThe performance of Government in the financial management and service delivery process based on the selected entities is illustrated in the figure below; \n39 \nFigure 7: Showing the performance of the PFM financial management and service", "metadata": {"headings": [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}, [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}], [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}], [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}], [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}], [{"headings_0": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 46, "level": 3}}]], "page": 46, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "delivery process by Government institutions", "metadata": {"headings": [{"headings_0": {"content": "delivery process by Government institutions", "page": 47, "level": 2}}, {"headings_1": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "01234", "metadata": {"headings": [{"headings_0": {"content": "delivery process by Government institutions", "page": 47, "level": 2}}, {"headings_1": {"content": "Financial Management and Service Delivery", "page": 46, "level": 3}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Finance", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 47, "level": 4}}, {"headings_1": {"content": "delivery process by Government institutions", "page": 47, "level": 2}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.7 Revenue Authority 3.3", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 47, "level": 4}}, {"headings_1": {"content": "delivery process by Government institutions", "page": 47, "level": 2}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Health", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Finance", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.6", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Finance", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Water and Environment", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Health", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.7", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Health", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Works and Transport", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.9 Source; OAG PFM performance assessment tool dashboard for FY 2022/2023. \nThe average performance score for this process is contributed to by the performance of the seven (07) sub processes (procurement, payroll, information system, revenue policy and management, cash management, internal controls and audit, monitoring service delivery) as indicated in the table below; \nTable 11; Selected entities\u2019 performance per sub-process", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}, [{"headings_0": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}]], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**1.**", "Procurement", "3.3", "3.5", "3", "3.5", "3.5", "3.4"], ["**2.**", "Payroll", "2", "3.2", "2.8", "2", "2.2", "2.4"], ["**3.**", "Information systems", "3", "3.7", "0.0", "0.0", "3.5", "2.0"], ["**4.**", "Revenue management policy", "3", "3.1", "3", "3.3", "2.4", "3.0"], ["**5.**", "Cash management", "3.4", "4", "3", "3", "2.8", "3.2"], ["**6.**", "Internal controls and audit", "3", "4", "1.7", "2.7", "3", "2.9"], ["**7.**", "Monitoring delivery of service", "0.7", "1.7", "3.3", "3", "3", "2.3"]], "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["S/N", "Sub-Process", "MoFPE D", "URA", "MoH", "MoWE", "MoWT", "Overall Average"], "type": "table"}}, {"content": "Source: OAG PFM performance assessment tool results for the FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool results for the FY 2022/2023", "page": 47, "level": 1}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The underperformance for the above Sub-processes was attributed to the following dominant root causes; \n40", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFM performance assessment tool results for the FY 2022/2023", "page": 47, "level": 1}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}, [{"headings_0": {"content": "Source: OAG PFM performance assessment tool results for the FY 2022/2023", "page": 47, "level": 1}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 47, "level": 4}}]], "page": 47, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "metadata": {"headings": [{"headings_0": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool results for the FY 2022/2023", "page": 47, "level": 1}}], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "And Service Delivery Process", "metadata": {"headings": [{"headings_0": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}, {"headings_1": {"content": "Source: OAG PFM performance assessment tool results for the FY 2022/2023", "page": 47, "level": 1}}], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Dominant Root Cause Attribution", "metadata": {"headings": [{"headings_0": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, {"headings_1": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "4% \nPolicy and legal framework 9%  \nOrganizational structure and 35% human resources Information systems \n26%  \nGovernance and oversight \nCommunication and stakeholder management  \n12%  \n14% \nOther(s)", "metadata": {"headings": [{"headings_0": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, {"headings_1": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}, [{"headings_0": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, {"headings_1": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}], [{"headings_0": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, {"headings_1": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}], [{"headings_0": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, {"headings_1": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}], [{"headings_0": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, {"headings_1": {"content": "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management", "page": 48, "level": 2}}]], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Source: OAG PFMRF dashboard presentation", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, {"headings_1": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "From the chart above, it can be observed that Policy and Legal Framework; and Governance and oversight, accounted for more than 60% of underperformance in the process. For the case of Policy and Legal framework, I noted inefficiencies in implementation of the applicable policies and legal requirements while under Governance, I observed the need to strengthen the monitoring and evaluation function. \nDuring the assessment of the Financial Management and Service Delivery process for the selected Government entities, I observed the following good practices; \ni) There are systems in place to monitor procurement processes and outcomes. The procurement processes are monitored by respective entity Accounting Officers, Public Procurement and Disposal Authority (PPDA), MoFPED, PPDA Tribunal, but the key Authority in charge of implementation of the procurement laws is the PPDA. The PPDA regularly monitors, reports and follows up on the procurement processes through conducting compliance audits and publishing of annual procurement reports. \nii) Procurement information is accessible to the public, as this information was readily available on the entity websites, notice boards, and the e-GP system. This transparency not only promotes accountability but also enables stakeholders to make informed decisions and fosters trust in the entity's procurement practices. \nHowever, the following were the observed PFM risks;", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, {"headings_1": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}, [{"headings_0": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, {"headings_1": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, {"headings_1": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, {"headings_1": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}], [{"headings_0": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, {"headings_1": {"content": "Dominant Root Cause Attribution", "page": 48, "level": 3}}]], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.1 Procurement", "metadata": {"headings": [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 25 (1) of the PPDA Act, 2023, states that a procuring and disposing entity shall be responsible for the management of all procurement and disposal activities within its jurisdiction in accordance with the PPDA, 2023 Act, regulations and guidelines made under the Act. \n41 \nThe assessment results for the Procurement sub-process indicated an overall average score of 3.4. Failure to achieve the desired performance grade of 4 was caused by the following noted gaps;", "metadata": {"headings": [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}], [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}]], "page": 48, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "i.  \nReview of the PPDA Annual report for the FY 2021-2022 revealed that there are still non performing procurement indicators that have undermined the performance of the procurement system and these include the proportion of contracts in which payment was made on time to the providers at 48% against a target of 70%, proportion of contracts by value completed within time at 52% against a target of 60%, and proportion of contracts by value subjected to open competition at 58% against the target of 80%. This was further worsened by the longer procurement lead times indicating that the average lead time taken to complete a procurement under open domestic bidding is 194 days against the indicative period of 100 days. \nii.  \nAt URA, I noted delays at the bidding stage due to poor planning, delays in the certification of providers' invoices, failure to obtain performance securities from providers in five procurements worth UGX 1.87 Bn, and the absence of appointed contract managers for three procurements worth UGX 752.7 million.", "metadata": {"headings": [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}]], "page": 49, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "iii.  \nAt MoWT, deviations from the approved procurement plan occurred, including failure to revise approved procurement plans and the exclusion of rolled-over procurements by heads of departments. Procurements worth over UGX.5.580 Bn were not included in the procurement reports, contrary to Section 20 of the PPDA Regulations, 2014. Additionally, wasteful procurement of printed materials worth UGX.920 Mn was noted over the years.  \niv.  \nAt MoWE, I noted that contract managers did not submit contract management reports and files to PDU even after several reminders to furnish these documents making it difficult to access and review the progress of the projects being implemented. \nThese procurement anomalies were majorly attributed to the limited use of the automated procurement system across Government institutions. \nThe PSST explained that Procurement automation is in its initial stages while a review of procurement legislation is now almost complete. These two areas have been the bottlenecks in procurement and account for majority of procurement anomalies noted. The Electronic Government Procurement (e-GP) System is still in its pilot stages and an enhanced system effective March 2024 will address these challenges highlighted by the audit. The process of amending legislation is complete while automation through implementation of e-GP will be fully rolled out by 2025/26.", "metadata": {"headings": [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}, [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}], [{"headings_0": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, {"headings_1": {"content": "Source: OAG PFMRF dashboard presentation", "page": 48, "level": 1}}]], "page": 49, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 49, "level": 3}}, {"headings_1": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}], "page": 49, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to fast track the full rollout of the electronic Government Procurement (e-GP) and review of procurement laws to address the inefficiencies in the procurement processes. \n42", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 49, "level": 3}}, {"headings_1": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}, [{"headings_0": {"content": "Recommendation", "page": 49, "level": 3}}, {"headings_1": {"content": "3.5.1 Procurement", "page": 48, "level": 3}}]], "page": 49, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.2 Payroll management", "metadata": {"headings": [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], "page": 50, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The assessment results for the Payroll Management Sub-process indicated an overall average score of 2.4. This poor performance is mainly attributed to the issues identified below, and amplified in my special audit report on the Management of Payroll in the Government, 2023. \nPayroll management is decentralized and runs on the Integrated Personnel and Payroll System (IPPS) for 264 budgetary units (MDAs and local governments); 34 of which run on both IPPS and the new Human Capital Management (HCM) system. The HCM was meant to increase the efficiency and effectiveness of payroll management across government. \nHowever, the following weaknesses were identified;  \ni.  \nThe HCMS implementation wasn\u2019t comprehensive as it was scoped to cover only 248 votes, in a three-phase manner, despite having 359 votes (as of January 2023), using IFMS across the entire Government. This potentially excludes the entities/votes not covered, from the purview of the MoPS. \nii.  \nHCM system currently only supports profiles for permanent and contract employees, excluding temporary and project-based contract staff. This could lead to challenges in tracking, managing, and reporting on the entire scope of human resources within Government. \niii.  \nI equally noted that, the integration between HCM System and Integrated Financial Management System (IFMS) is incomplete. While HCM System sends invoice files to IFMS, the processed file is not sent back to HCM System, leading to a one-way information flow, hampering monthly reconciliations by HR officials. \niv. HCM System has not integrated with the Service Commissions, Boards and Authorities to facilitate the retrieval of recruitment and promotional minutes on the recruitment module. This has allowed use of fraudulent minutes of appointment to secure postings in some government entities. \nv.  \nURA had 716 short-term contract employees which constituted 18% of the total workforce. I also noted that there was no policy in place that guides the Authority in the management of this category of employees. The URA Human Resource Manual lacks guidance on the process of recruitment and management of short-term contract employees. This casts doubt on the transparency of the recruitment and management of this group of employees. \nThe PSST explained that the HCM system is in its early phases of implementation. It is also being enhanced to address the gaps mentioned and integration with all systems and relevant institutions has been gradual. A comprehensive assessment of the system will be carried out once it has been fully implemented.", "metadata": {"headings": [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}, [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}], [{"headings_0": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 49, "level": 3}}]], "page": 50, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendations", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 50, "level": 3}}, {"headings_1": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}], "page": 50, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "43 \ni) The PSST should fast track the rollout of the HCM system covering all categories of staff. During the roll out of the HCM system, consideration should be made to provide for a two way communication between IFMS and HCM system as well providing an interface with the operations of the Service Commissions, Boards and Authorities. \nii) The Accounting Officer of URA should enhance its Human resource policies and provide for recruitment, management and exit of the contracts staff.", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 50, "level": 3}}, {"headings_1": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}, [{"headings_0": {"content": "Recommendations", "page": 50, "level": 3}}, {"headings_1": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}], [{"headings_0": {"content": "Recommendations", "page": 50, "level": 3}}, {"headings_1": {"content": "3.5.2 Payroll management", "page": 50, "level": 3}}]], "page": 50, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.3 Information systems.", "metadata": {"headings": [{"headings_0": {"content": "3.5.3 Information systems.", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 50, "level": 3}}], "page": 51, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The assessment results for the Information Systems Sub-process indicated an overall average score of 2.0. \nI reviewed the financial management information systems and noted that MoFPED exercises effective control, oversight and regular maintenance of the IFMS. Government, through the Accountant General\u2019s Office, has made arrangements to ensure that all IFMS equipment is well maintained through regular servicing, repair of damaged equipment and replacement when necessary. \nHowever, review of the IT governance structures indicated that there were no approved IT structures that steer and oversee ICT implementation. Absence of ICT governance structures hamper formulation of appropriate ICT policies, strategies and real time upgrade of ICT interventions. In addition, it may lead to misalignment of IT investments with the overall entity objectives. This was attributed to the lack of approved IT policies.", "metadata": {"headings": [{"headings_0": {"content": "3.5.3 Information systems.", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 50, "level": 3}}, [{"headings_0": {"content": "3.5.3 Information systems.", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 50, "level": 3}}], [{"headings_0": {"content": "3.5.3 Information systems.", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 50, "level": 3}}]], "page": 51, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 51, "level": 3}}, {"headings_1": {"content": "3.5.3 Information systems.", "page": 51, "level": 3}}], "page": 51, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The Accounting Officers of MoWT, MoWE and MoH were advised to develop and implement the IT policies in order to strengthen the IT governance structures.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 51, "level": 3}}, {"headings_1": {"content": "3.5.3 Information systems.", "page": 51, "level": 3}}], "page": 51, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.4 Revenue policy and Cash Management", "metadata": {"headings": [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}], "page": 51, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The assessment results for the Revenue Policy and Cash Management Sub-processes indicated an overall average score of 3.0 and 3.2 respectively. \nThe notable good practices included: \ni) The Ministry of Finance Planning and Economic Development ensures adequate oversight over the revenue authority. The minister is responsible for appointment of the URA Board, receiving of reports from the Board. The Ministry prepares policies and conducts reviews under BMAU. The Minister regulates the issuance of tax exemptions and waivers. \nii) I observed in the assessed entities the existence of effective cash management, disaster recovery procedures and a comprehensive financial reporting system covering all transactions, including contingent liabilities, commitments, and non-tax revenue, among others. This is because the entities follow the specific normal accountability systems as prescribed in the PFMA, 2015. \n44 \niii) I reviewed the revenue policy and noted that Uganda Revenue Authority had an excellent performance at supporting, and contributing to Tax Policy Development processes and taking mitigation measures with regard to compliance risks within the tax policy. URA also has a fairly adequate oversight mechanism over its operations. I further reviewed the Financial Statements of URA and observed that the Net Revenue collected for the fiscal year 2022/2023 was UGX.25,209.05billion against a target of UGX.25,151.57billion, resulting in a performance of 100.2%. \niv) The Government has put in place a contingency fund to address emergency expenditure and ensuring cash availability in times of heightened demand, especially during disaster periods. The Minister is also mandated to adjust the budget and expenditure lines to address any heightened demands for cash.", "metadata": {"headings": [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}, [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}], [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}], [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}], [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}], [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}], [{"headings_0": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 51, "level": 3}}]], "page": 51, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.4.1 GoU Revenue performance", "metadata": {"headings": [{"headings_0": {"content": "3.5.4.1 GoU Revenue performance", "page": 52, "level": 3}}, {"headings_1": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}], "page": 52, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "A review of the approved budget estimates of the Government of Uganda for the financial year ended 30 th June 2023 revealed that the initial approved budget (resource envelope) for the financial year 2022/23 was UGX.48,131.70 Bn. This was later revised to UGX.48,135.746 Bn, following a revision of local revenue by UGX.4.75 Bn. Details in the table below;", "metadata": {"headings": [{"headings_0": {"content": "3.5.4.1 GoU Revenue performance", "page": 52, "level": 3}}, {"headings_1": {"content": "3.5.4 Revenue policy and Cash Management", "page": 51, "level": 3}}], "page": 52, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 11 Showing summary performance of revenue by source", "metadata": {"headings": [{"headings_0": {"content": "Table 11 Showing summary performance of revenue by source", "page": 52, "level": 1}}, {"headings_1": {"content": "3.5.4.1 GoU Revenue performance", "page": 52, "level": 3}}], "page": 52, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Balance B/F** **from** FY 21/22**", "Consolidated fund", "-", "-", "40.735", "(40.735)", "-"], ["**Domestic sources**", "Tax revenue", "23,754.95", "23,754.95", "25,208.730", "(1,453.78)", "(6.12)"], [null, "Non-Tax revenue", "1,795.89", "1,795.89", "1,791.478", "4.412", "0.25"], [null, "Petroleum fund", "0", "0", "125.288", "(125.288)", "-"], [null, "Domestic financing", "5,007.93", "5,007.93", "3,928.049", "1,079.88", "21.56"], [null, "Domestic refinancing", "8,008", "8,008", "6,444.076", "1,563.92", "19.53"], [null, "Local revenue", "238.52", "243.566", "156.763", "86.803", "35.64"], ["**External sources**", "Grants", "2,168.51", "2,168.51", "1,131.897", "1,036.613", "47.80"]], "metadata": {"headings": [{"headings_0": {"content": "Table 11 Showing summary performance of revenue by source", "page": 52, "level": 1}}, {"headings_1": {"content": "3.5.4.1 GoU Revenue performance", "page": 52, "level": 3}}], "page": 52, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Classification", "Funding source", "Approved Budget (UGX Bn)", "Revised budget UGX Bn (A)", "Actual (UGX Bn) (B)", "Variance (UGX Bn) (B-A)", "% Variance"], "type": "table"}}, {"content": "45", "metadata": {"headings": [{"headings_0": {"content": "Table 11 Showing summary performance of revenue by source", "page": 52, "level": 1}}, {"headings_1": {"content": "3.5.4.1 GoU Revenue performance", "page": 52, "level": 3}}], "page": 52, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**External sources**", "Loans", "7,156.9", "7,156.9", "8,094.339", "(937.439)", "(13.10)"], ["**Total**", "", "**48,130.7**", "**48,135.746**", "**46,921.36**", "**1,214.39**", "**2.52**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 11 Showing summary performance of revenue by source", "page": 52, "level": 1}}, {"headings_1": {"content": "3.5.4.1 GoU Revenue performance", "page": 52, "level": 3}}], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Classification", "Funding source", "Approved Budget (UGX Bn)", "Revised budget UGX Bn (A)", "Actual (UGX Bn) (B)", "Variance (UGX Bn) (B-A)", "% Variance"], "type": "table"}}, {"content": "Source: OAG analysis of URA Revenue performance reports", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of URA Revenue performance reports", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 11 Showing summary performance of revenue by source", "page": 52, "level": 1}}], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "From the above table, Government budgeted to collect Tax revenue of UGX.23.755Tn out of which UGX.25.209Tn, was collected representing a 6.12% collection above the planned target. In addition, Government planned to collect NTR UGX.1.796Tn, out of which UGX.1.791Tn was collected, resulting in a shortfall of UGX.0.005Tn representing 0.28% of the approved budget.  \nReview of NTR performance for selected MDAs (MoH, MOWE, MoFPED and MoWT) indicated that during the year 2022/2023, the total budgeted revenue was 246.19 Bn out of which 206.49 Bn was collected, leaving 40.2Bn (16.30%) unrealized as indicated in the table below;", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG analysis of URA Revenue performance reports", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 11 Showing summary performance of revenue by source", "page": 52, "level": 1}}], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "metadata": {"headings": [{"headings_0": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}, {"headings_1": {"content": "Source: OAG analysis of URA Revenue performance reports", "page": 53, "level": 1}}], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**MoFPED**", "0.5", "0.38", "0.12", "24.00"], ["**MoH**", "0.14", "0.34", "(0.2)", "(142.86)"], ["**MoWT**", "245.21", "204.21", "41", "16.72"], ["**MoWE**", "0.84", "1.56", "(0.72)", "(85.71)"], ["**TOTALS**", "**246.69**", "**206.49**", "**40.2**", "**16.30**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}, {"headings_1": {"content": "Source: OAG analysis of URA Revenue performance reports", "page": 53, "level": 1}}], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "Revenue Target UGX(Bn)", "Revenue Collected UGX(Bn)", "Variance UGX(Bn)", "% Variance"], "type": "table"}}, {"content": "Source: OAG Analysis of MoFPED NTR estimates", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "From the table above, I noted that Ministry of Health (MoH) and Ministry of Water and Environment (MoWE) significantly over performed, exceeding their revenue target. On the other hand, the Ministry of Works and Transport (MoWT) and MoFPED fell short of their targets by UGX.41Bn and 0.12Bn respectively. The overall analysis indicates a combined revenue shortfall of UGX.40.2Bn. \nThe variances were attributed to the use of unreasonable assumptions for revenue forecasting and the lack of a robust strategy for revenue collection. \nFailure to meet the NTR budget was attributed to unrealistic assumptions as the NTR estimates are not agreed upon with individual votes, and a number of entities do not reflect NTR in their budgets. \nI further noted the following PFM risks during the assessment of URA;  \ni) I reviewed the tax payer data base and observed that there was no completeness of the database and many potential taxpayers in the Informal Sector and Agriculture sectors were left out. On the validity of the taxpayer database, the tax register is not regularly updated by removing the dead taxpayers and other dormant accounts.  \nii) Although URA actively supports taxpayers towards voluntary compliance with relevant tax legislation, there is still a big percentage of the informal sector that does not comply with the tax laws. \n46 \niii) Regarding revenue collection at URA, I noted that the revenue targets were reasonable, although there was a variance between forecasted and collected amounts.  \niv) The reported revenue performance by URA is limited to revenue collected and accrued arrears, lacking disclosure on tax exemptions and taxes written off. Total tax exemptions in the fiscal year 2022/2023 amounted to UGX 1,137.094 billion, covering exemptions from Income Tax, VAT, Local Excise, and deemed VAT. The limited disclosure undermines transparency. \nIn addition, it was noted that project support did not realise funds to a tune of UGX3.101Tn. From the total unrealized funds, UGX.1.064.Tn representing 50.89% was on grants and UGX2.038Bn representing 44.05% was on the loan component. The poor performance by the project support is attributed to slow progress of the implemented projects. \nShortfalls in Government revenue collections leads to budget distortions and affects implementation of the planned activities to facilitate attainment of the national service delivery objectives and social services to the citizenry.", "metadata": {"headings": [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}, [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}], [{"headings_0": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, {"headings_1": {"content": "Table 12: Showing NTR performance per entity for FY 2022/2023", "page": 53, "level": 1}}]], "page": 53, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendations", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 54, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i) The PSST should make NTR revenue forecasting more consultative so as to arrive at realistic estimates to facilitate revenue mobilization and collection. In addition, Government of Uganda should put measures in place to ensure that project management is effective to avoid any delays in project implementation so as to progressively realize project support. \nii) URA should initiate measures to regularly update their taxpayer database to enhance its completeness and reliability. In addition, URA should review the current tax policies and make proposals to enhance the tax base by including all categories.", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 54, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}, [{"headings_0": {"content": "Recommendations", "page": 54, "level": 3}}, {"headings_1": {"content": "Source: OAG Analysis of MoFPED NTR estimates", "page": 53, "level": 1}}]], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.5 Performance of GOU warrants for the selected entities", "metadata": {"headings": [{"headings_0": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 54, "level": 3}}], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The parliament of Uganda appropriated UGX 5,157.331 Bn to the selected entities out of which UGX 4,579.963 Bn was warranted resulting into 88.8% performance of the appropriated revenue. The utilization of warrants by the selected entities was 99.51% as shown in the table below;", "metadata": {"headings": [{"headings_0": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 54, "level": 3}}], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 13: Showing performance of GoU warrants", "metadata": {"headings": [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Ministry** of Finance, Planning and Economic Development**", "2,539.234", "2,512.543", "2,506.261", "98.95", "99.75"], ["**Ministry** **Health** **of**", "456.704", "226.626", "223.257", "49.62", "98.51"]], "metadata": {"headings": [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "GOU budget UGX (Bn)", "Total warrants - GOU UGX (Bn)", "Total Expenditure - GOU UGX (Bn)", "% Budget warranted", "% Warrants spent"], "type": "table"}}, {"content": "47", "metadata": {"headings": [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}], "page": 54, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**of and** **Ministry Water Environment**", "533.118", "337.113", "334.895", "63.23", "99.34"], ["**Ministry Works Transport** **of and**", "713.295", "588.701", "587.142", "82.53", "99.74"], ["**Parliamentary Commission**", "914.979", "914.979", "905.839", "100", "99.00"], ["**Total**", "**5,157.331**", "**4,579.963**", "**4,557.394**", "**88.80**", "**99.51**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "GOU budget UGX (Bn)", "Total warrants - GOU UGX (Bn)", "Total Expenditure - GOU UGX (Bn)", "% Budget warranted", "% Warrants spent"], "type": "table"}}, {"content": "From the table above, out of the total warrants of UGX.4,579.963 Bn (88.8% of the GoU budget), UGX.4,557.394 was spent resulting into unspent warrants worth UGX.22.569 representing 0.49%. Overall, the six (06) selected entities demonstrated effective utilization of warrants at 99.5%. In addition, MoH and MoWE had poor performance on warrants at 49.62 and 63.23 respectively. The Accounting Officer of MoH explained that the underfunding of MoH affected the implementation of activities such as the rehabilitation of Masindi General Hospital, Bugiri, Kambuga, Abim and Kapchorwa. \nAnalysis of data from the PBS revealed that during the year, MoH received a supplementary funding of UGX.206.278 Bn representing 89.7% of the funding gap. The funding gap may be an indication of approval of supplementary budgets without a corresponding increase in revenue/ financing as observed in 3.2.2 of my report. \nI assessed the extent of implementation of planned activities and indicated that the failure to fully implement the planned activities was attributed to underfunding amongst other factors as indicated in the table below;", "metadata": {"headings": [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}, [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}], [{"headings_0": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, {"headings_1": {"content": "3.5.5 Performance of GOU warrants for the selected entities", "page": 54, "level": 3}}]], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "metadata": {"headings": [{"headings_0": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}, {"headings_1": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "entities", "metadata": {"headings": [{"headings_0": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}, {"headings_1": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**MoFPED**", "148", "74%", "6%", "20%"], ["**URA**", "47", "85%", "15%", "0%"], ["**MoH**", "226", "23%", "23%", "55%"], ["**MoWE**", "132", "27%", "53%", "20%"], ["**MoWT**", "105", "55%", "25%", "20%"], ["**TOTAL**", "**658**", "**45%**", "**25%**", "**30%**"]], "metadata": {"headings": [{"headings_0": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}, {"headings_1": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Entity", "No. of activities Assessed", "Fully Implemented", "Partially Implemented", "Non Implemented"], "type": "table"}}, {"content": "Source; OAG analysis of entity Performance reports for FY 2022/2023. \nFrom the table above, it can be noted that out of the assessed 658 activities, only 45% were fully implemented, 25% partially implemented and 30% were not implemented. In addition, it can be noted that overall, MoH had the highest percentage of unimplemented activities at 55% followed by MoFPED, MoWT and MoWE at 20%. Overall, 55% of the assessed activities were not fully implemented indicating failure to meet the service delivery targets to the intended beneficiaries for the year under review.", "metadata": {"headings": [{"headings_0": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}, {"headings_1": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}, [{"headings_0": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}, {"headings_1": {"content": "Table 13: Showing performance of GoU warrants", "page": 54, "level": 3}}]], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendation", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 55, "level": 3}}, {"headings_1": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "48 \nI advised the PSST to regularly review strategies to increase domestic revenue collections to sustainably fund the ever increasing needs of government and review the legal framework on supplementary expenditure to minimize budget distortions.", "metadata": {"headings": [{"headings_0": {"content": "Recommendation", "page": 55, "level": 3}}, {"headings_1": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}, [{"headings_0": {"content": "Recommendation", "page": 55, "level": 3}}, {"headings_1": {"content": "Table 14: A Summary of extent of implementation of planned activities of the assessed", "page": 55, "level": 1}}]], "page": 55, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "metadata": {"headings": [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], "page": 56, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The assessment results for the effectiveness of the internal controls and internal audit sub-process indicated an overall average score of 2.9. The following are the noted good practices under this sub-process; i. The IFMS is configured to prevent expenditure being processed and paid, unless it has been committed and there are sufficient funds. ii. The ministry issues guidelines, manuals and policies for the mitigation of PFM risks. Through the budget execution circular every year, the PSST guides on proper budget practices including punitive measures for breach. The Accountant General issues guidelines for accounting and reporting for funds released. iii. In addition, MOF established a Unit (BMAU) to enhance monitoring efforts geared towards effective implementation of government programmes and projects. This unit seeks to verify information in the quarterly performance reports and assess the link between the work plans and physical performance. The role of this Unit has since evolved to include undertaking research into specific issues around poor performance. The research is usually contracted by other government departments and agencies and serves as a basis for making policy recommendations. This information is released in budget monitoring reports and policy briefs. iv. BMAU reports are distributed to Members of Parliament; Government officials; development partners and civil society organizations. The Unit also has a direct reporting line to the ministry\u2019s senior management so that priority concerns can be flagged. v. The entities regularly review financial management issues and discussed for corrective action in the senior top technical management meetings. The internal Auditor General acts as the secretariat for the different sectoral working groups. It also provides annual audit reports to guide the PSST on the appointment of Accounting Officers. The ministry follows up on the internal and external audit reports though the treasury memoranda and their recommendations therein. vi. I observed the efficiency of the internal audit function in two of the six audited entities (URA and MOWE). For instance, in URA, the Internal Audit unit conducted 56 audits, exceeding the planned 51 audits for the year under review. In the Financial Year 2022/2023, a total of 408 agreed actions 49 resulted from the internal audit reports, with 145 of them classified as high risk. Management had responded to 59 actions, while 86 were still pending at the time of assessment. Meanwhile in all the assessed entities, I confirmed the existence of quarterly audit reports for the year 2022/23. vii. I further", "metadata": {"headings": [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}, [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}], [{"headings_0": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, {"headings_1": {"content": "Recommendation", "page": 55, "level": 3}}]], "page": 56, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendations", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 57, "level": 3}}, {"headings_1": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}], "page": 57, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "I advised the PSST to;  \ni) Build the capacity of staff in the Office of the Internal Auditor General on providing assurance services on the efficiency, economy and effectiveness of the administration of the programmes and operations of Government institutions. \nii) Automate Internal Audit processes in line with the Government digital transformation strategy of ensuring automation of Government processes to facilitate efficiency, transparency and accountability.", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 57, "level": 3}}, {"headings_1": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}, [{"headings_0": {"content": "Recommendations", "page": 57, "level": 3}}, {"headings_1": {"content": "3.5.6 Effectiveness of the Internal Controls and Internal Audit.", "page": 56, "level": 3}}]], "page": 57, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "3.5.7 Monitoring of Service Delivery", "metadata": {"headings": [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}], "page": 57, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The assessment results for the Effectiveness in Monitoring Service Delivery sub- process indicated an overall average score of 2.3. This performance is attributed to absence of information of the assessed entities in conducting monitoring related to SDGs. This affected the overall score of the sub-process. \nGovernment of Uganda has made efforts in ensuring that systems are in place to facilitate monitoring of service delivery. MoFPED through Budget Monitoring and Accountability Unit (BMAU) tracks implementation of programmes/projects by observing how values of different financial and physical indicators change over time against stated goals, indicators and targets. \nAlthough it was noted that Uganda has a national policy for disaster preparedness and management which establishes efficient institution mechanisms for integrating disaster preparedness and management in to social economic development planning \n50 \nprocesses at National and Local government levels, no Legal framework was found to exist to enforce the key provisions of this policy. \nI noted in the five entities (URA, MOFPED, MOWE, MoWT, and MoH) a lack of clear updates and follow-up on the domesticated SDGs, there was no SDG reported data on the progress of SDG targets and proof of reports to the SDG secretariat under OPM. This was attributed to inadequate oversight by the SDG secretariat the assessed entities only report on the progress of SDGs when information has been requested by the secretariat. This shows a potential deficiency in the monitoring and reporting of progress on domesticated SDGs. \nI observed that three of the audited entities (MOWE, MoWT, and MoH) have business continuity plans in place to ensure service delivery continuity. URA lacked a Business Continuity Plan with contingency measures to ensure service delivery continuity which highlights a potential vulnerability in URA's ability to maintain service delivery during disaster periods.", "metadata": {"headings": [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}, [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}], [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}], [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}], [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}], [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}], [{"headings_0": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 57, "level": 3}}]], "page": 57, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Recommendations", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 58, "level": 3}}, {"headings_1": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}], "page": 58, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "i) The Accounting Officers should engage the SDG secretariat under OPM to facilitate routine monitoring and collection of data by MDAs so as to report on the performance/ progress of the domesticated SDG goals. The secretariat should clearly domesticate and define SDG indicators/ targets on the allocated Goals under NDP III programme to facilitate routine data collection, analysis and reporting on progress of the SDG targets by entities through the SDG secretariat.  \nii) URA should expedite the development and approval of a holistic Business Continuity Plan. The Plan should be regularly reviewed to cater for emergency needs. Relatedly, the plan should include how mock exercises should be conducted and results documented for continuous improvement. \n3.6", "metadata": {"headings": [{"headings_0": {"content": "Recommendations", "page": 58, "level": 3}}, {"headings_1": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}, [{"headings_0": {"content": "Recommendations", "page": 58, "level": 3}}, {"headings_1": {"content": "3.5.7 Monitoring of Service Delivery", "page": 57, "level": 3}}]], "page": 58, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Accounting, Reporting, and Oversight", "metadata": {"headings": [{"headings_0": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 58, "level": 3}}], "page": 58, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Section 51 (1) (3) of the PFMA, 2015 provides that an Accounting Officer of a vote and an Accounting Officer of a local government, shall within two months after the end of each financial year, prepare and submit to the Auditor-General, and the Accountant General, the accounts and information set out in paragraph 2 of Schedule 5 to this Act. Section 51 (3)(a)(4) of the PFMA, 2015 provides that the accounts submitted under this section shall be prepared in accordance with generally accepted accounting practices and in accordance with instructions issued by the Accountant General. In addition, the Auditor General shall, in accordance with the National Audit Act, examine and audit the accounts submitted under this section. \nRule 174 (6) of the Rules of Procedure of Parliament requires that the Chairperson of an accountability Committee shall table the report of the Committee before the House for purposes of debate, within six months of the referral of the report of the Auditor General to the Committee. This implies that the Auditor General's report must be discussed by the Accountability committees within six months after the Auditor General has presented his report to Parliament. \n51 \nI assessed the Accounting, financial reporting and oversight process which had an overall average score of 3.1 which is considered Medium risk implying fairly satisfactory performance. \nThe performance of the assessed Government entities under this process is illustrated in the figure below;", "metadata": {"headings": [{"headings_0": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 58, "level": 3}}, [{"headings_0": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 58, "level": 3}}], [{"headings_0": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 58, "level": 3}}], [{"headings_0": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 58, "level": 3}}], [{"headings_0": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}, {"headings_1": {"content": "Recommendations", "page": 58, "level": 3}}]], "page": 58, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Figure 9: Showing the performance of the PFM Accounting, Reporting and Oversight process by Government institutions.", "metadata": {"headings": [{"headings_0": {"content": "Figure 9: Showing the performance of the PFM Accounting, Reporting and Oversight process by Government institutions.", "page": 59, "level": 2}}, {"headings_1": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "01234", "metadata": {"headings": [{"headings_0": {"content": "Figure 9: Showing the performance of the PFM Accounting, Reporting and Oversight process by Government institutions.", "page": 59, "level": 2}}, {"headings_1": {"content": "Accounting, Reporting, and Oversight", "page": 58, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Finance", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 59, "level": 3}}, {"headings_1": {"content": "Figure 9: Showing the performance of the PFM Accounting, Reporting and Oversight process by Government institutions.", "page": 59, "level": 2}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.4", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Finance", "page": 59, "level": 3}}, {"headings_1": {"content": "Figure 9: Showing the performance of the PFM Accounting, Reporting and Oversight process by Government institutions.", "page": 59, "level": 2}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Revenue Authority 3.0", "metadata": {"headings": [{"headings_0": {"content": "Revenue Authority 3.0", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Finance", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Parliament", "metadata": {"headings": [{"headings_0": {"content": "Parliament", "page": 59, "level": 3}}, {"headings_1": {"content": "Revenue Authority 3.0", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.2", "metadata": {"headings": [{"headings_0": {"content": "Parliament", "page": 59, "level": 3}}, {"headings_1": {"content": "Revenue Authority 3.0", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Health", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 59, "level": 3}}, {"headings_1": {"content": "Parliament", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "2.8", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Health", "page": 59, "level": 3}}, {"headings_1": {"content": "Parliament", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Water and Environment", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Health", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.0", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Health", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Ministry of Works and Transport", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "3.3 \nSource:  \nOAG  \nPFM performance \n[MDA-4] assessment tool No dashboard grade  \nresults for the FY 2022/2023 \nI assessed the effectiveness of the Accounting, reporting and oversight process and observed the following good practices; \ni) The Government of Uganda consolidated financial statements are produced in accordance with the national legal and regulatory framework as specified in the PFMA, 2015. Government is transitioning from modified accrual basis of accounting to reporting on the full accrual basis of accounting based on large aspects of the International Public Sector Accounting Standards (IPSASs). During the financial year 2022/2023, MoFPED commenced the implementation of the change to full accrual accounting and reporting. This is aimed at enhancing relevancy and completeness of financial information to stakeholders to facilitate making economic decisions based on the financial statements. \nii) Programme Based Budgeting system was upgraded and interfaced with the expenditure management system (IFMS). The upgrade also provided for opening up for NTR budgeting and going forward this will facilitate reporting on NTR budgets in the financial statements. \niii) Parliamentary accountability committees review, comment and debate findings of the audit reports as evidenced by the Hansards and Committee reports laid and discussed in the plenary sessions of Parliament. In addition, Parliament sometimes constitutes adhoc committees to discuss Auditor General's report on specific matters/investigations as requested by the Speaker. \n52 \niv) There is a legislative calendar in place with sufficient time for Parliamentary oversight on the PFM cycle and Parliament complies with it.", "metadata": {"headings": [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}, [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}], [{"headings_0": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, {"headings_1": {"content": "Ministry of Water and Environment", "page": 59, "level": 3}}]], "page": 59, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Overall Audit Conclusion", "metadata": {"headings": [{"headings_0": {"content": "Overall Audit Conclusion", "page": 60, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}], "page": 60, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "The overall average Government PFM system performance based on the selected entities during the financial year 2022/23 was 3.0 out of the desired performance target grade of 4.0 which is fairly satisfactory performance. This implies that the Government needs to review the PFM reforms and address the areas of improvement identified to realize the intended objectives as outlined in the national PFM reform strategy and the National Development Plan. \nJohn F.S. Muwanga", "metadata": {"headings": [{"headings_0": {"content": "Overall Audit Conclusion", "page": 60, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}, [{"headings_0": {"content": "Overall Audit Conclusion", "page": 60, "level": 3}}, {"headings_1": {"content": "Ministry of Works and Transport", "page": 59, "level": 3}}]], "page": 60, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "AUDITOR GENERAL", "metadata": {"headings": [{"headings_0": {"content": "AUDITOR GENERAL", "page": 60, "level": 3}}, {"headings_1": {"content": "Overall Audit Conclusion", "page": 60, "level": 3}}], "page": 60, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "29 th December, 2023. \n53", "metadata": {"headings": [{"headings_0": {"content": "AUDITOR GENERAL", "page": 60, "level": 3}}, {"headings_1": {"content": "Overall Audit Conclusion", "page": 60, "level": 3}}, [{"headings_0": {"content": "AUDITOR GENERAL", "page": 60, "level": 3}}, {"headings_1": {"content": "Overall Audit Conclusion", "page": 60, "level": 3}}]], "page": 60, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "APPENDICES", "metadata": {"headings": [{"headings_0": {"content": "APPENDICES", "page": 61, "level": 1}}, {"headings_1": {"content": "AUDITOR GENERAL", "page": 60, "level": 3}}], "page": 61, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "metadata": {"headings": [{"headings_0": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}, {"headings_1": {"content": "APPENDICES", "page": 61, "level": 1}}], "page": 61, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": "Processes Along the Whole Budget Cycle", "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 61, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Macroeconomic** **Policy,**  **Policy** Strategic budgeting** **Fiscal and**", "The Macro-economic forecast activities such as consultations with Bank of Uganda, URA, NPA, UBOS as well as data collection and analysis for the preparation of the Macro economic forecasts are undertaken by the Secretary to the Treasury to enable the Minister to publish macro - economic forecasts for the annual budget, with specific dates expected to be set for each financial year. The Director responsible for Economic Affairs provides a detailed calendar for the consultations on the formulation of the macro- economic and fiscal policy strategy. The activities run from November to December of every year."], ["\u2022 \u2022 \u2022 **Budget Preparation**", "**Draft budget strategy & priorities for next fiscal year**  Setting the Budget priorities \u2013 guided by the Vision 2040, the 5 \u2013year National Development Plan (NDP), and the ruling Party Manifesto.  Determining the Resource Envelope - The Medium-Term Fiscal Frame (MTFF) MoFPED in consultation with BoU and URA, analyse the trends of revenue mobilization, public expenditure and macro- economic conditions and set targets to arrive at the resource envelope for the following FYs.  It also includes identifying the sources of financing the budget (Taxes, Non- Tax Revenue, External Financing and Domestic Borrowing)  Setting of Sector Expenditure Ceilings; the basis for the preparation of the Medium-Term Expenditure Framework (MTEF) **Budget consultations:**  Cabinet Retreat is carried out on the Budget to discuss past performance and gain consensus on strategy & priorities for next fiscal year  LG regional workshops to: disseminate and discuss priorities for next fiscal year; and, discuss policy issues that affect delivery of decentralized services SWGs & EAC consultations are continuous **BCC, with preliminary resource, is issued by 15 th September** MALGs prepare and submit BFPs to MoFPED by 15 th November  MoFPED reviews, consolidate and submit the NBFP to Parliament by 31 st December, after Cabinet clearance. **econd BCC, with revised resource & priorities, is issued by 15 th** **February**  MALGs prepare & submit final budget estimates to MoFPED by 15 th March Ministries prepare and submit MPSs to Parliament by 15 th March  MoFPED reviews, consolidates and submits final budget estimates to Parliament by 1 st April, after clearance by Cabinet **S** **First**"], ["**Budget Approval**", "**Cabinet approves both the NBFP and detailed Budget before MoFPED** **submits to Parliament for final approval**  **Parliament reviews and approve:**  The NBFP by 1 st February, normally with recommendations that are addressed"]], "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 61, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["PFM Core Process", "Process Description"], "type": "table"}}, {"content": "54", "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 61, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "in the final budget estimates  The detailed budget estimates and appropriation bill, together with other budget bills by 31 st May  Budget Speech is read by 15 th June  H.E. the President assents to the Appropriation Bill & other Bills, giving rise to the Appropriation Act that gives MoFPED and MALGs clearance to implement the Budget. **Statutory/ PFMA, 2015 Timelines for budget approval process** **DEADLINE ACTIVITY/STATUTORY DOCUMENT**  Submission of Sector BFPs to MoFPED **[Section 9(2)]**  By 15th November Submission of National Budget Framework to Parliament  **[Section 9(5)]** By 31st December Approval of National Budget Framework by Parliament **[Section 9(8)]** By 1st February Presentation of Ministerial Policy Statements to Parliament **[Section 13(13)]** By 15th March Presentation of Annual Budget and Tax Bills to Parliament **[Section 13(3)]** By 1st April By 31st May Approval of Annual Budget by Parliament **[Section 14(1)]** Presentation of Budget Speech  By 15th June Budget comes into operation **[Section 13(5)]**  1st July **Table:**"], ["**ACTIVITY/STATUTORY DOCUMENT**", null], ["Submission of Sector BFPs to MoFPED **[Section 9(2)]**", null]], "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 62, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1"], "type": "table"}}, {"content": [["", "in the final budget estimates  The detailed budget estimates and appropriation bill, together with other budget bills by 31 st May  Budget Speech is read by 15 th June  H.E. the President assents to the Appropriation Bill & other Bills, giving rise to the Appropriation Act that gives MoFPED and MALGs clearance to implement the Budget. **Statutory/ PFMA, 2015 Timelines for budget approval process** **DEADLINE ACTIVITY/STATUTORY DOCUMENT**  Submission of Sector BFPs to MoFPED **[Section 9(2)]**  By 15th November Submission of National Budget Framework to Parliament  **[Section 9(5)]** By 31st December Approval of National Budget Framework by Parliament **[Section 9(8)]** By 1st February Presentation of Ministerial Policy Statements to Parliament **[Section 13(13)]** By 15th March Presentation of Annual Budget and Tax Bills to Parliament **[Section 13(3)]** By 1st April By 31st May Approval of Annual Budget by Parliament **[Section 14(1)]** Presentation of Budget Speech  By 15th June Budget comes into operation **[Section 13(5)]**  1st July **Table:**"], ["**ACTIVITY/STATUTORY DOCUMENT**", null], ["Submission of Sector BFPs to MoFPED **[Section 9(2)]**", null], ["Submission of National Budget Framework to Parliament **[Section 9(5)]**", null], ["Approval of National Budget Framework by Parliament **[Section 9(8)]**", null], ["Presentation of Ministerial Policy Statements to Parliament **[Section 13(13)]**", null], ["Presentation of Annual Budget and Tax Bills to Parliament **[Section 13(3)]**", null], ["Approval of Annual Budget by Parliament **[Section 14(1)]**", null], ["Presentation of Budget Speech", null], ["Budget comes into operation **[Section 13(5)]**", null], ["**Financial Management and service delivery**", "The budget is implemented to deliver various public services, such as education, health, good roads security, salaries, pensions etc., that improve the lives of the citizens for poverty eradication.  MoFPED issues guidelines for budget implementation in the BEC by 30 th June Budget becomes effective by 1 st July  Revenue is collected by URA & External financing disbursed  MoFPED releases funds quarterly, based on cash flow plan of government and actual resource inflows  MALGs are required to implement budget in line with approved work plans, procurement plans & recruitment plans  MALGs report quarterly on progress against targets  MoFPED prepares semi and annual budget reports to assess progress in attaining policy outcomes  Budget Releases & Reports are published on the budget website to improve transparency and enable feedback. The approval of the annual budget by Parliament provides the legal authority for spending agencies to spend and for the MFPED to make releases to spending agencies (votes)"], ["**Accounting, Oversight** **Reporting** **and** \u2022 \u2022", "The integrity and quality of budgetary forecasts, fiscal plans and budgetary implementation should be promoted. Monitoring and supervision by politicians at all levels, Internal auditing within MALGs and Auditor General\u2019s reports are aligned with the budgetary cycle to enhance quality of performance accountability frameworks.  As part of the oversight function, a number of performance reports are required to be produced which include"]], "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 62, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1"], "type": "table"}}, {"content": "55", "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 62, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "", "**Budget Document**", "**Role**", "**Information it contains**", ""], ["Budget performance reports  (semi- annual and annual) \u2022 \u2022", null, "Provides an analysis of budget execution for half year and full year \u2022 \u2022 \u2022 \u2022 Key documents for holding GoU to account for performance against budgets/ plans", "Actual expenditures agencies performance by Actual outputs by agencies  Actions to improve performance Expenditure on outputs by", "of", null], ["\u2022 \u2022 Performance reports by  spending agencies (quarterly and annual)", null, "\u2022 \u2022 for \u2022 to against \u2022 Provides an analysis of budget execution at half year and full year Key documents holding agencies account  performance contracts", "Actual outputs by agencies  Actions to improve performance Actual work outputs by Expenditure on outputs by and programme", "", null], ["\u2022 \u2022 Budget monitoring reports by BMAU", null, "\u2022 Track Financial flows \u2022 and Implementation of government programmes against set goals and targets \u2022 documented the \u2022 performance contracts in Corrective action. How well are activities being implemented  and services provided", "Utilization Funds received by spending agencies  levels absorption capacity) Implementation constraints Issues  consistency reporting by spending on", "in", null]], "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], "page": 63, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5"], "type": "table"}}, {"content": "spending spending \nitem spending \nprojects item \nvarious (resource \nagencies \n56", "metadata": {"headings": [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}, [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}], [{"headings_0": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}, {"headings_1": {"content": "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "page": 61, "level": 2}}]], "page": 63, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 64, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Macroeconomic policy, fiscal** **policy** and strategic budgeting**", "Macroeconomic policy, fiscal policy  and strategic budgeting", "1.1", "Macro-fiscal forecasting  and analysis was accurate, well- coordinated and integrated with MTEF", "MoF-1", "Were the prior year's macro-fiscal forecasts accurate (previous year\u2019s forecasts broadly predict outcomes absent of major unforeseeable external shocks)?", "MoFPED"], [null, null, null, null, "MoF-2", "fiscal in place coordinating Is an adequately designed  and implemented process  for  macroeconomic  and  forecasts? (Consider to what extent the process involves other key stakeholders such as  revenue agency,  presidency,  national  institution) statistics", "MoFPED"], [null, null, null, null, "MoF-3", "Did the previous year's fiscal policy outcomes correspond with the  stated medium-term fiscal policy  and/or MTEF?", "MoFPED"], [null, null, null, null, "MoF-4- SDG", "Have SDGs been domesticated and responsibilities allocated?", "MoFPED"], [null, null, "1.2", "Fiscal Governance mechanisms are functioning to  mitigate risks", "MoF-5", "Does government implement a debt management policy/strategy that aligns with their medium-term fiscal strategy including reporting  to parliament?", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 64, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["PFM Process", "PFM Process Sub-", "PFM Output Code", "PFM Output", "Key Question Code", "Key Question", "Entities"], "type": "table"}}, {"content": "57", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 64, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "MoF-6", "Does government undertake regular and  debt sustainability analysis?", "MoFPED", null, null, null], ["MoF-7", "Is  there functioning cooperation between  the finance ministry and  central bank  debt management? the", "MoFPED", null, null, null, null], ["MoF-8", "Are  contingent liabilities (including guarantees  for SOEs and others) quantified and a strategy in place to mitigate identified risks?", "MoFPED", null, null, null, null], ["1.3", "RA  contribution to key  macro- fiscal forecasts is  accurate, timely  and evidence  based", "RA-1", "Does the revenue authority provide accurate, timely and  evidence- based  revenue forecasts to the MoF  for incorporation in their macro-fiscal analysis  and policy-making?", "URA", null, null], ["**Budget Preparation**", "Budget Preparation", "2.1", "Government budget  is prepared and organised in line with MTEF and NDP", "MoF-9", "In the previous year, what was the deviation between the  approved aggregate budget of government and actual expenditure outturn?", "MoFPED"], [null, null, null, null, "MoF-10", "Does  conduct  effective comprehensive consultation process with the MDAs in line with legal requirements (i.e. the budget calendar, budget call circular and associated expenditure ceilings)? the MoF an and", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 65, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["PFM Process", "PFM Process Sub-", "PFM Output Code", "PFM Output", "Key Question Code", "Key Question", "Entities"], "type": "table"}}, {"content": "58", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 65, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "MoF-11", "Are total life cycle costs of major investment  projects  (both capital  and recurrent) included in  budget document? the", "MoFPED"], ["MoF-12", "Is the budget classification system applied by government in line with international standards  (e.g. IMF GFS)", "MoFPED", null], ["MoF-13", "Is the budget submitted  to Parliament aligned with long term Government fiscal sustainability objectives as set out in the MTEF?", "MoFPED", null], ["MoF-14- SDG", "Is the budget submitted  to Parliament aligned with long term Government objectives as set out the NDP including core SDG targets? in", "MoFPED", null], ["MoF-15- SDG", "Are  the domesticated SDGs incorporated in the National Budget?", "MoFPED", null], ["MoF-16- SDG", "Are  the domesticated SDG targets included in the  budget planning process for all government entities?", "MoFPED", null], ["MoF-17- SDG", "What percentage of the budget is allocated to SDGs?", "MoFPED", null], ["MoF-18", "Does the MoF have emergency response mechanisms  in place to allow for emergency spending, expenditure reprioritizations", "MoFPED", null]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 66, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3"], "type": "table"}}, {"content": "59", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 66, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "during and supplementary budgets to meet unforeseen demands  disaster periods?", "", null, null], ["2.2", "RA/MDA  budget  is prepared and organised in line with MoF guidance, sector strategies and NDP", "RA-2; MDA-1", "Are  budget spending priorities aligned  the strategic plan, NDP and other key policies? to", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, "RA-3- SDG; MDA-2- SDG", "Are core sectoral SDGs appropriately reflected  the budget proposal? in", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, "RA-4; MDA-3", "Are previous years' funding shortfalls, continued  liabilities, arrears and  rolled-over accruals addressed and considered in this year's budget?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, "RA-5; MDA-4", "In the previous year, what was the deviation between the  approved budget of the RA/MDA and actual expenditure per budget category?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, "RA-6; MDA-5", "calendar, Does the RA/MDA comply with the budget preparation procedures (legal requirements, budget  budget classifications etc)?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, "RA-7; MDA-6", "Has the budget preparation  process within the RA/MDA involved consultation with key stakeholders and through the media, civil society and development partners?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, "RA-8- SDG; MDA-7- SDG", "Have SDGs been domesticated and responsibilities allocated?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 67, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4"], "type": "table"}}, {"content": "60", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 67, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "RA-9- SDG; MDA-8- SDG", "Are specific SDG targets/the core sectoral  SDG targets included in the  budget planning process for the RA/MDA?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null, null, null], ["RA-10- SDG; MDA-9- SDG", "What percentage of the budget is allocated to SDGs?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null, null, null, null], ["**Budget Approval**", "Budget Approval", "3.1", "A  complete and comprehensive budget including supplements is submitted in line with laws", "MoF-19", "Is a complete and comprehensive budget proposal submitted  to Parliament on time and in line with national laws?", "MoFPED"], [null, null, null, null, "MoF-20", "Is a complete and comprehensive supplementary or mid-year/revised budget proposal submitted  to Parliament on time and in line with national  laws, where it is necessary to do so?", "MoFPED"], [null, null, "3.2", "The budget is well debated, goes through due process and  is approved in accordance to the law", "Par-1", "Is  Parliament provided  with sufficient resources to  scrutinise, debate  and potentially amend the  budget proposal prior to approval?", "Parliament"], [null, null, null, null, "Par-2", "Is  the parliamentary debate on the budget open to observation by the public?", "Parliament"], [null, null, null, null, "Par-3", "the law for Does  provide Parliamentary involvement in in- year  budget review, supplementary budget  reserve review, fund", "Parliament"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 68, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5", "column_6"], "type": "table"}}, {"content": "61", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 68, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "utilisation and are these provisions adhered to?", "", null, null, null, null], ["Par-4- SDG", "Have SDGs been domesticated and responsibilities allocated?", "Parliament", null, null, null, null], ["Par-5- SDG", "Do  Parliament's debates on the budget  include domesticated SDGs and does the approved budget have  clearly mapped resource allocations?", "Parliament", null, null, null, null], ["3.3", "Approved RA/MDA  budget  is sufficient for RA/MDA  to deliver its core services", "RA-11; MDA-10", "If  Parliament amended  the RA/MDA budget as submitted, has the revised  budget been  into account  for planning purposes? taken", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null, null], [null, null, "RA-12; MDA-11", "Is the RA/MDA budget  as approved  by Parliament aligned with the NDP, MTEF and other statements  of government expenditure policy?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null, null], [null, null, "RA-13; MDA-12", "Does the budget make provision for unexpected  events,  for example through contingency  or reserve funds, in line with the budget law?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null, null], ["**Financial Management** **and** Delivery** **Service**", "Procurement", "4.1", "Procurement systems are functioning in a transparent, competitive manner including appeals", "MoF-21", "Are  place procurement processes outcomes? systems in to monitor and", "MoFPED"], [null, null, null, null, "MoF-22", "Have  deviations procurement legislation (anomalies) occurred  (e.g. number/amount of significant from", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 69, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["", "RA-9- SDG; MDA-8- SDG", "Are specific SDG targets/the core sectoral  SDG targets included in the  budget planning process for the RA/MDA?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", "None", "None", "None"], "type": "table"}}, {"content": "62", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 69, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "irregular  or unauthorised procurements; fraud identified, complaints lodged, unplanned or non- competitive procurement, inadequate needs assessment conducted etc.)?", "", null, null], ["MoF-23", "Is  public procurement information accessible in the form of open data (rules, announcements, specifications, bidding documentation, contracts awarded, etc.)?", "MoFPED", null, null], ["MoF-24", "Are  there procedures  in place and effective to allow for procurement  award  and appeals? disputes", "MoFPED", null, null], ["4.2", "Procurement is done in a transparent  and  fair manner which is in line with legislation / policies", "RA-14; MDA-13", "significant from Have  deviations procurement legislation (anomalies) occurred  (e.g. number/amount of irregular  or unauthorised procurements; fraud identified, complaints lodged, unplanned or non- competitive procurement, inadequate needs assessment conducted etc.)?", "\u2022URA \u2022MoH \u2022MoWT \u2022 MoWE"], [null, null, "RA-15; MDA-14", "Is  public procurement information accessible in the form of open data (rules, announcements,", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 70, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4"], "type": "table"}}, {"content": "63", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 70, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "specifications, bidding documentation, contracts awarded, etc.)?", "", null, null, null], ["Payroll", "4.3", "is to Payroll effectively managed ensure payments are done  accurately and efficiently", "MoF-25; RA-16; MDA-15", "Is MoF\u2019s/RA's/MDA's payroll robust (i.e. payroll  details match the actual workforce  and integrity of the payroll is regularly reviewed)?", "\u2022 MoFPED \u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, null, "MoF-26; RA-17; MDA-16", "Is there an efficient and lawful use of temporary employees  in terms of their role, remuneration and number?", "\u2022 MoFPED \u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, null, "RA-18; MDA-17", "Were  the RA's/MDA's salary payments done on time and in full?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, null, "MoF-27; RA-19; MDA-18", "and Are public sector worker allowances, non-salary remuneration and other non-salary benefits appropriately managed, monitored recorded?", "\u2022 MoFPED \u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], [null, null, null, "MoF-28; RA-20; MDA-19", "Are  payroll systems and the main government IFMIS  system interlinked  to provide complete, accurate  and timely information on public sector salary expenditure in compliance with ceilings?", "\u2022 MoFPED \u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE"], ["Information Systems", "4.4", "are Information Systems adequately managed and overseen", "MoF-29", "Is the MoF adequately exercising effective control, oversight and  regular maintenance  of key government IT", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 71, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5"], "type": "table"}}, {"content": "64", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 71, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "systems?", "", null, null, null], ["MoF-30", "MoF an Is  the exercising  adequate coordination role for MDAs with regard to IFMIS implementation (training, updates, communication, addressing problems)?", "MoFPED", null, null, null], ["MoF-31", "Has the MoF put Disaster Recovery Procedures  in place for IFMIS?", "MoFPED", null, null, null], ["4.5", "are Information systems effectively supporting the RA's/MDA's PFM processes", "RA-21", "Are the RA's IT system effectively integrated with the governments IT systems?", "URA", null], [null, null, "RA-22; MDA-20", "Are there effective controls, oversight and  regular maintenance  of key government IT systems?", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null], [null, null, "RA-23; MDA-21", "Are  Disaster Recovery Procedures  place? in", "\u2022  URA \u2022  MoH \u2022 MoWT \u2022 MoWE", null], ["Revenue policy and management", "4.6", "Revenue policy and administration are effectively steered  by MoF", "MoF-32", "tax Are there adequate steering processes for  policy development  in place with key stakeholders (revenue authority, customs, ministry of  trade, Parliament, private sector)?", "MoFPED"], [null, null, null, "MoF-33", "Does the MoF ensure adequate oversight over the Revenue  Authorities  exercise  mandate operations? its and of", "MoFPED"], [null, "4.7", "Revenue policy development is supported and", "RA-24", "Does the revenue authority  contribute towards", "URA"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 72, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["", "specifications, bidding documentation, contracts awarded, etc.)?", "", "None", "None", "None"], "type": "table"}}, {"content": "65", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 72, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "effectively implemented  at  Revenue Authority level", "", "the tax policy development process?", ""], ["RA-25", null, "the Does the revenue authority assess and take mitigative action with regards to compliance risks within  tax system?", "URA", null], ["RA-26", null, "and Does the revenue authority manage the  taxpayer database  with regard to integrity, completeness, accuracy  validity?", "URA", null], ["RA-27", null, "Does the revenue authority actively support taxpayers towards voluntary compliance with relevant  tax legislation?", "URA", null], ["RA-28", null, "Are  revenue authority's revenue targets reasonable, and does it meet its  own performance indicators  in respect to current year tax collection targets? the", "URA", null], ["RA-29", null, "Is the tax dispute resolution system in place and effective?", "URA", null], ["RA-30", null, "Are there adequate oversight mechanisms over the  revenue authority's operations?", "URA", null], ["RA-31", null, "Does the revenue authority disclose revenue  raised, revenue foregone, revenue  uncollected and other key metrics of  revenue performance by end of the budget", "URA", null]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 73, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4"], "type": "table"}}, {"content": "66", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 73, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "cycle?", "", null, null, null], ["4.8", "Revenue management  at MDA level is effective and efficient", "MDA-22", "the MDA's targets on Are  revenue  based  reasonable assumptions including  past history of revenue collected versus forecasted,  and are they being met?", "\u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "MDA-23", "Are debtors being monitored  and followed up?", "\u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "MDA-24", "Are transfers of revenue  from commercial banks or other non- government financial entities to the  central bank/national treasury  regularly  swiftly? done and", "\u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "MDA-25", "Are reconciliations being regularly? performed revenue", "\u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "MDA-26", "Does the MDA have in place systems, processes and procedures to manage internally generated funds (e.g. fees, charges, donations etc) in accordance with law  and regulations?", "\u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "MDA-27", "Does the MDA disclose revenue raised,  revenue foregone, revenue uncollected and other key metrics of  revenue performance by end of the budget cycle?", "\u2022 MoH  \u2022 MoWT \u2022 MoWE", null], ["Cash", "4.9", "Clear,", "MoF-34", "Is the budget", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 74, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5"], "type": "table"}}, {"content": "67", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 74, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "Management", "", "documented Cash Management procedures are being adhered to", "", "the the one by uploaded on IFMIS approved Parliament?", ""], ["MoF-35", null, "Does the MoF ensure that overall MDA spending is in line with approved budgets?", null, "MoFPED", null, null], ["MoF-36", null, "Is there a clear and documented process  for deciding on and approving  the release of cash to the MDA in line with  approved budget; and is this process adhered to?", null, "MoFPED", null, null], ["MoF-37", null, "Are reconciliations between  actual spending  and approved  plans done monthly?", null, "MoFPED", null, null], ["RA-32; MDA-28", null, "Is the budget uploaded on the IFMIS  the RA/MDA the one which  was approved  by Parliament? for", null, "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null], ["RA-33; MDA-29", null, "Are in-year cash allocations to the RA/MDA  line with the approved budget and are these  released regularly based on the  cash requirements of the RA? in", null, "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null], ["RA-34; MDA-30", null, "Does the RA/MDA have  effective commitment  control processes in place to ensure that  overall spending  is approved in line with  budgets and/or  cash availability?", null, "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 75, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5", "column_6"], "type": "table"}}, {"content": "68", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 75, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "RA-35: MDA-31", "and Does the RA/MDA submit regular and complete expenditure performance reports to MoF? the", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null], ["RA-36: MDA-32", "Is the RA's/MDA's financial  officer professionally qualified?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null, null], ["MoF-38", "Does the MoF have specific mechanisms  in place to ensure availability of cash in times of heightened demands?", "MoFPED", null, null, null], ["MoF-39", "to of service in to ensure Does the MoF have emergency  controls in place to fast-track expenditure authorizations  order  timely disbursement  cash  delivery units?", "MoFPED", null, null, null], ["Internal Controls Audit and", "4.10", "Internal Controls Audit are place effective and in and", "MoF-40", "Did the MoF design and communicate to MDAs to implement  an internal  control system to mitigate PFM risks (e.g. over  spending, collusion, misuse of  assets, unauthorised spending)  including monitoring effectiveness? regular of", "MoFPED"], [null, null, null, "MoF-41", "Does  regularly  and  financial management  issues and is this information used to  inform decisions? the MoF report review key", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 76, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5"], "type": "table"}}, {"content": "69", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 76, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "MoF-42", "Does  the MoF/Central Internal Audit Unit provide guidance and monitoring of adherence  to procedures  by audit committees of MDAs?", "MoFPED", null, null], ["MoF-43", "Is the MoF following up on internal  and external  audit reports, Parliamentary recommendations, and judgements?", "MoFPED", null, null, null], ["RA-37; MDA-33", "Did the MDA implement  an Internal Control System effective to mitigate PFM risks (e.g.  over spending,  collusion, misuse of  assets, unauthorised spending)?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null, null], ["RA-38; MDA-34", "Is the RA/MDA internal  audit function effective (number of audits conducted  and recommendations implemented)?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null, null], ["RA-39; MDA-35", "Does the audit committee review and follow up on internal  audit reports  and recommendations?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null, null], ["Monitoring of Service  Delivery", "4.11", "Effective  overall system of monitoring of  service delivery  in place", "MoF-44- SDG", "Does the MoF regularly monitor and review overall performance against  targets,  appropriate corrective action? SDG including", "MoFPED"], [null, null, null, "MoF-45", "Does the MoF regularly monitor and review overall performance against predetermined the", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 77, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["", "RA-35: MDA-31", "and Does the RA/MDA submit regular and complete expenditure performance reports to MoF? the", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", "None", "None"], "type": "table"}}, {"content": "70", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 77, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "service  delivery objectives and the budget, including appropriate corrective action?", "", null, null], ["MoF-46- SDG", "Are  budgets utilised effectively, economically and efficiently towards achieving  the domesticated SDG targets  and programmes?", "MoFPED", null, null], ["MoF-47- SDG", "To what extent does  your country\u2019s annual Voluntary National Reviews  (VNR) meet  UN reporting expectations? the", "MoFPED", null, null], ["MoF-48", "Are contingency measures  (business  continuity plans) in place to ensure service  delivery continuity when faced with large- scale absence of staff  during disaster periods?", "MoFPED", null, null], ["4.12", "Effective monitoring of service  delivery  place in", "RA-40- SDG; MDA-36- SDG", "Does the RA/MDA regularly monitor and review its performance against  SDG targets,  is there a sufficient performance level? and", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE"], [null, null, "RA-41; MDA-37", "Does the RA/MDA regularly monitor and review its performance against predetermined service  delivery objectives and the budget, and does it have a sufficient performance level? the", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 78, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4"], "type": "table"}}, {"content": "71", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 78, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "MDA-38- SDG", "Are  budgets utilised effectively, economically and efficiently towards achieving  the domesticated SDG targets  and programmes?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null, null], ["RA-42; MDA-39", "Are contingency measures  (business  continuity plans) in place to ensure service  delivery continuity when faced with large- scale absence of staff  during disaster periods?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null, null, null, null], ["**Accounting, Reporting and Oversight**", "Accounting", "5.1", "Appropriate accounting policies are in place", "MoF-49", "Did the MoF design and communicate to the MDAs to follow  an approved,  adequate appropriate framework  policies  financial  accounting reporting? and legal and covering and up", "MoFPED"], [null, "Financial Reporting", "5.2", "Clear  and comprehensive financial reporting systems  applied stakeholders are by", "MoF-50", "Are responsibilities for accounting and reporting clearly set out among key stakeholders?", "MoFPED"], [null, null, null, null, "MoF-51", "all financial system Is the reporting comprehensive (covering government transactions including contingent liabilities, commitments, non-tax  etc.)? revenue e.g.", "MoFPED"], [null, null, null, null, "MoF-52", "Is the government consolidated financial  report prepared  line with the approved accounting framework  and in", "MoFPED"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 79, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5", "column_6"], "type": "table"}}, {"content": "72", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 79, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "tabled  in parliament as per the  legal requirements?", "", null, null, null], ["MoF-53", "Is there a specific mechanism  in place for tracking and accounting for resources deployed in  emergency response  and reporting  it transparently?", "MoFPED", null, null, null], ["5.3", "The RA/MDA generates timely, appropriate, comprehensive and  transparent reports", "RA-43; MDA-40", "Does the RA/MDA comply with the legal framework, deadlines, policies and  formats covering financial accounting  and reporting?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "RA-44; MDA-41", "Are responsibilities for accounting and reporting observed by the RA/MDA?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "RA-45; MDA-42", "all e.g. Is the RA's/MDA's financial reporting system comprehensive (covering transactions including contingent liabilities, commitments, non-tax  etc.)? revenue", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null], [null, null, "RA-46; MDA-43", "Is there a specific mechanism  in place for tracking and accounting for resources deployed in  emergency response  and reporting  it transparently?", "\u2022 URA  \u2022 MoH  \u2022 MoWT \u2022 MoWE", null], ["Oversight", "5.4", "Parliament reviews audit findings of the SAI and holds the executive to account for use of public funds", "Par-6", "Does Parliament follow up on prior year resolutions on audit reports?", "Parliament"], [null, null, null, "Par-7", "Do Parliament and the  relevant committees appropriately", "Parliament"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 80, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2", "column_3", "column_4", "column_5"], "type": "table"}}, {"content": "73", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 80, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "review, comment and debate the findings of audit reports?", ""], ["Par-8", "legislative for the cycle Is the  calendar  oversight on  PFM  (financial statements, audit reports, hearings and resolutions) being  complied with?", "Parliament"], ["Par-9", "Does the wider public and society (e.g.  Through media groups, civil society  groups, professional organisations)  have access to the process  of Parliamentary scrutiny of audit reports?", "Parliament"], ["Par-10- SDG", "Is  Parliament following up on budget spending according  to resources allocated to  the domesticated SDG programmes?", "Parliament"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 81, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["column_0", "column_1", "column_2"], "type": "table"}}, {"content": "74", "metadata": {"headings": [{"headings_0": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}, {"headings_1": {"content": "Processes Along the Whole Budget Cycle", "page": 61, "level": 2}}], "page": 81, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 82, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Accountant** **Statements Format FY 2022/23** **General's Financial** \u2022 \u2022 \u2022", "To establish if  is comprehensive (covering all transactions including e.g. contingent liabilities, commitments, non-tax revenue etc.) the MDA's financial reporting system"], [null, "To establish whether responsibilities for accounting and reporting are observed by the MDA"], [null, "To understand whether the MDA complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 82, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["**Accountant** **Statements Format FY 2022/23** **General's Financial** \u2022 \u2022 \u2022", "To establish if  is comprehensive (covering all transactions including e.g. contingent liabilities, commitments, non-tax revenue etc.) the MDA's financial reporting system"], [null, "To establish whether responsibilities for accounting and reporting are observed by the MDA"], [null, "To understand whether the MDA complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting"], ["**Annual and quarterly financial** \u2022 **performance reports, audited financial statements for FY ending** \u2022 **June 2023**  \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To ascertain the variations between approved budgets and actual expenditure"], [null, "To ascertain whether funding shortfalls, arrears and roll over accruals are considered in this year\u2019s budget"], [null, "To establish if  is comprehensive (covering all transactions including e.g. contingent liabilities, commitments, non-tax revenue etc.) the MDA's financial reporting system"], [null, "To establish whether responsibilities for accounting and reporting are observed by the MDA"], [null, "To establish whether the MDA regularly monitors and reviews its performance against SDG targets, and is there a sufficient performance level."], [null, "To establish whether the MDA submits regular and complete expenditure and performance reports to the MoF"], [null, "To establish if  is comprehensive (covering all transactions including e.g. contingent liabilities, commitments, non-tax revenue etc.) the MDA\u2019s financial reporting system"], [null, "To establish whether responsibilities for accounting and reporting are observed by the MDAs"], [null, "To establish whether the MDAs regularly monitors and reviews its performance against SDG targets, and if there is a sufficient performance level."], [null, "To establish whether the MDA submits regular and complete expenditure and performance reports to the MoFPED"], ["\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 **Annual Approved Budget Estimates** \u2022 **2022/2023**", "To ascertain the approved funds allocated to the key priority areas under the MDAs"], [null, "To establish if the MDA budget as approved by parliament is aligned with the NDP, MTEF and other statements of government expenditure policy."], [null, "To establish what percentage of the budget is allocated to SDGs."], [null, "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To establish whether the MDA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability"], [null, "To ascertain if the approved budget was fully funded"], [null, "To ascertain the approved funds allocated to the key priority areas under the MDA"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 82, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "75", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 82, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**Annual work plan**  \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To ascertain whether SDGs have been domesticated and responsibilities allocated."], [null, "To establish if the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law."], [null, "To establish if the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law?"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 83, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["**Annual work plan**  \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To ascertain whether SDGs have been domesticated and responsibilities allocated."], [null, "To establish if the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law."], [null, "To establish if the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law?"], [null, "To establish whether budgets are utilised effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To ascertain whether SDGs were domesticated and responsibilities allocated."], ["**Approved budget as uploaded in** \u2022 **IFMS**  **(MoWT,**  **MoWE,** Commission)** **Parliamentary** \u2022", "To establish if the MDA budget as approved by parliament is aligned with the NDP, MTEF and other statements of government expenditure policy."], [null, "To establish if the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law."], ["**Approved budget Fiscal forecast FY** \u2022 **2022/23**", "To establish whether the revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and if they are being met"], ["**Approved URA budget as uploaded** \u2022 **in ERP**", "To establish if the URA budget as approved by parliament is aligned with the NDP, MTEF and other statements of government expenditure policy."], ["**Approved URA budget as uploaded** \u2022 **in ERP**", "To establish if the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law."], ["**Approved work plans FY 2022/23** \u2022", "To establish whether the MDA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability"], ["**Arrears Management Strategy and** \u2022 **Follow up reports**", "To ascertain whether debtors are being monitored and followed up"], ["**Audit reports, financial reports FY** \u2022 **2022/23 and Financial Statements 22/23**", "To find out if the Parliament debates and follows up on resolutions on prior year audit reports"], ["**Budget** Committee Parliamentary Hansards** **Accountability** \u2022 **(PAC)** reports,** **and** \u2022", "To confirm if Parliamentary debates are open to the public and whether the wider public has access to the process of Parliamentary scrutiny of audit reports"], [null, "To confirm recommendations are complied with by all stakeholders if the Parliamentary in-year budget review"], ["**Budget call circulars 1&2 FY2022/23** \u2022 \u2022 \u2022", "To ascertain if budget spending priorities are aligned to the strategic plan, NDP and other key policies"], [null, "To establish if the MDA complies with the budget preparation procedures (legal requirements, budget calendar, budget classifications etc.)"], [null, "To ascertain if budget spending priorities are aligned with the strategic plan, NDP and other key policies"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 83, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "76", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 83, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["\u2022", "To establish if the MDA complies with the budget preparation procedures (legal requirements, budget calendar, budget classifications etc.)"], ["\u2022 **Budget Framework paper for FY** \u2022 **2022/23**", "To ascertain if core SDGs are appropriately reflected in the budget proposal"], [null, "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 84, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["\u2022", "To establish if the MDA complies with the budget preparation procedures (legal requirements, budget calendar, budget classifications etc.)"], ["\u2022 **Budget Framework paper for FY** \u2022 **2022/23**", "To ascertain if core SDGs are appropriately reflected in the budget proposal"], [null, "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], ["\u2022 \u2022 **Certificate of compliance Report by** \u2022 **NPA FY2022/23**", "To establish if SDGs have been domesticated and responsibilities allocated"], [null, "To establish if the core sectoral SDG targets are included in the budget planning process for the MDAs"], [null, "To establish if the core Sectoral SDG targets are included in the National budget planning process"], ["\u2022 \u2022 **Corporate plan 2019/20-2024/25** \u2022", "To ascertain the extent of domestication of the SDGs Agenda in the URA strategic plans to facilitate implementation"], [null, "To understand the key result areas and strategic concerns/ issues/gaps that need to be  addressed in the next five years to improve socio-economic development"], [null, "To understand whether spending priorities are aligned with the strategic plan"], ["**Departmental procurement plans FY** \u2022 **2022/23**", "To establish if significant deviations from procurement legislation (anomalies) occurred  irregular or unauthorized procurements; fraud identified, complaints lodged, unplanned or non-competitive procurement, inadequate needs assessment conducted etc.) (e.g. number/amount of"], ["**End of year Financial Reporting** \u2022 **Circular FY 2022/23**", "To understand whether the MDA complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting"], ["**End of year MoFPED Financial** \u2022 **Reporting Circular FY 2022/23**", "To establish if  is comprehensive (covering all transactions including e.g. contingent liabilities, commitments, non-tax revenue etc.) the MDA's financial reporting system"], ["**Expenditure files and the entity** \u2022 **budget**", "To ascertain if the public sector worker allowances, non-salary remuneration and other non-salary benefits are appropriately managed, monitored and recorded."], ["**Financial reports FY 2022/23 and** \u2022 **Financial Statements 22/23 and tax exemption report for FY 2022/23**", "To find out if the MDA discloses revenue raised, revenue foregone, revenue uncollected and other key metrics of revenue performance by end of the budget cycle"], ["**Financial Reports, IFMIS BIG Report** \u2022 **and Arrears/ commitments**", "To establish if the in-year cash allocations to the MDA are in line with the approved budget and are these released regularly based on the cash requirements of the MDA"], ["**Financial statements FY 2022/23,** \u2022 **and Balance sheet ledgers**", "To ascertain whether debtors are being monitored and followed up"], ["**Fiscal Risk Statement, FY**  \u2022", ""], ["**Guidelines on Human Resource** \u2022 **Management in the Public Service July 2022**", "To establish whether payroll systems and the main government IFMIS system are interlinked to provide complete, accurate and timely information on public sector salary expenditure in compliance with ceilings."], ["**Head of Finance personnel file**  \u2022", "To establish whether the Head of Finance was professionally qualified."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 84, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "77", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 84, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**IFMIS data and Reports and** \u2022 **Quarterly and Annual Expenditure cash limits FY 2022/23** \u2022", "To establish whether the MDA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability"], [null, "To establish whether the Commission has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability"], ["**Internal audit reports, Internal** \u2022 **audit Charter and IFMIS reports on NTR collections 22/2023**", "To ascertain if the MDA has in place systems, processes and procedures to manage internally generated funds (e.g., fees, charges, donations, etc.) in accordance with law and regulations"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 85, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["**IFMIS data and Reports and** \u2022 **Quarterly and Annual Expenditure cash limits FY 2022/23** \u2022", "To establish whether the MDA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability"], [null, "To establish whether the Commission has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability"], ["**Internal audit reports, Internal** \u2022 **audit Charter and IFMIS reports on NTR collections 22/2023**", "To ascertain if the MDA has in place systems, processes and procedures to manage internally generated funds (e.g., fees, charges, donations, etc.) in accordance with law and regulations"], ["**Internal controls guidelines/ policy,** \u2022 **Internal Audit Reports, Annual report of internal Auditor General FY 2022/23** **the**  \u2022 \u2022 \u2022", "To establish whether the MDA implements an Internal Control System effective to mitigate PFM risks (e.g. over spending, collusion, misuse of assets, unauthorized spending)"], [null, "To establish if MDA internal audit function is effective (number of audits conducted and recommendations implemented)?"], [null, "To establish if the audit committee reviews and follows up on internal audit reports and recommendations?"], [null, "To establish if the audit committee reviews and follows up on internal audit reports and recommendations."], ["**IT equipment maintenance plan**  \u2022", "To find out if there are documented effective controls, oversight and provisions for regular maintenance of key government IT systems."], ["**ITIS** Programme** **review report FY 2022/2023** **performance** \u2022 \u2022", "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To establish whether the MDA regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."], ["**Ministerial Policy Statements FY** \u2022 **2022/23**  \u2022 \u2022 \u2022", "To establish and identify the planned activities to be undertaken by the Ministry for the period 2022/23 and funds allocated on the different key priority areas as identified in the NDPIII, PIAP and the MDA's Strategic Plan."], [null, "To establish the percentage of the budget allocated to SDGs"], [null, "To establish and identify the activities that the MDAs had planned to undertake during the 2022/23 F/Y and confirm if funds were allocated as planned."], [null, "To establish and identify the planned activities to be undertaken by the MDAs for the period 2022/23 and funds allocated on the different key priority areas as identified in the ND PIII, PIAP and the respective MDAs' Policies."], ["**Ministry of** **budget finalization FY2022/2023** **finance circular on** \u2022", "To establish if the MDA budget as approved by parliament is aligned with the NDP, MTEF and other statements of government expenditure policy."], ["**MoFPED circulars and guidelines on** \u2022 **internally generated revenue**", "To ascertain if the MDA has in place systems, processes and procedures to manage internally generated funds (e.g., fees, charges, donations, etc.) in accordance with law and regulations"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 85, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "78", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 85, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["\u2022", "To ascertain if the Commission has in place systems, processes and procedures to manage internally generated funds (e.g., fees, charges, donations, etc.) in accordance with the existing laws and regulations"], ["**MOFPED mid-term monitoring** \u2022 **review report FY 2022/2023** \u2022", "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To establish whether the MOFPED regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 86, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["\u2022", "To ascertain if the Commission has in place systems, processes and procedures to manage internally generated funds (e.g., fees, charges, donations, etc.) in accordance with the existing laws and regulations"], ["**MOFPED mid-term monitoring** \u2022 **review report FY 2022/2023** \u2022", "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To establish whether the MOFPED regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."], ["**progress report and Road Map** **MOFPED FY** \u2022 **2022/23** for implementation of SDGs in Uganda** **2021/2022-2024/2025**  \u2022", "To establish whether the MOFPED regularly monitors and reviews its performance against SDG targets, and is there a sufficient performance level."], [null, "To establish whether the MOFPED regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."], ["**Monthly procurement reports to** \u2022 **PPDA**", "To establish if significant deviations from procurement legislation (anomalies) occurred  irregular or unauthorized procurements; fraud identified, complaints lodged, unplanned or non-competitive procurement, inadequate needs assessment conducted etc.) (e.g. number/amount of"], ["**MTEFs and BFPs for FY2022/23**  \u2022", "To ascertain if the MDAs' budget as approved by Parliament is aligned with the NDP, MTEF and other statements of government expenditure policy"], ["**National Development Plan 2019/20-2024/25** **III** \u2022 \u2022 \u2022", "To understand the National Priorities and objectives over the five- year period"], [null, "To understand whether spending priorities of the MDAs are aligned to the NDPIII"], [null, "To ascertain the extent of domestication of the SDGs in the NDPIII"], ["**National disaster risk management** \u2022 **plan (2022/23-2026/27) and** **National** disaster preparedness and Management, 2010.** **policy for** \u2022", "To establish if there are contingency measures (business continuity plans) in place to ensure service delivery continuity when faced with large-scale absence of staff during disaster periods"], [null, "To establish if there is a specific mechanism in place for tracking and accounting for resources deployed in emergency response and reporting it transparently"], ["**National NTR estimates book FY** \u2022 **2022/23.** \u2022", "To establish whether the MDA's revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and if they are being met"], [null, "To establish whether the Commission\u2019s revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and if they are being met"], ["**Parliament\u2019s approved contract staff** \u2022 **establishment for F/Y 2022/2023** \u2022", "To find out if there is efficient and lawful use of temporary employees in terms of their role, remuneration and numbers"], [null, "To establish if the structure is filled as approved to support Parliament\u2019s functions"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 86, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "79", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 86, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**Parliamentary physical** \u2022 **infrastructure sectoral committee minutes** \u2022 \u2022", "To identify if parliament amended the MDA budget as submitted and if the revised budget has been taken into account for planning purposes"], [null, "To confirm if Parliament undertook all the planned field inspections for the F/Y 2022/2023"], [null, "To identify if parliament amended the budget proposal as submitted and if the revised budget was taken into consideration during planning by the respective entities"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 87, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["**Parliamentary physical** \u2022 **infrastructure sectoral committee minutes** \u2022 \u2022", "To identify if parliament amended the MDA budget as submitted and if the revised budget has been taken into account for planning purposes"], [null, "To confirm if Parliament undertook all the planned field inspections for the F/Y 2022/2023"], [null, "To identify if parliament amended the budget proposal as submitted and if the revised budget was taken into consideration during planning by the respective entities"], ["**Payroll register 2022/2023**  \u2022", "To establish if MDA's payroll is robust (i.e. payroll details match the actual workforce and integrity of the payroll is regularly reviewed)"], ["**Payroll register and payment files** \u2022", "To establish if the MDA\u2019s salary payments is done on time and in full"], ["**Personal files of the Commission** \u2022 **staff**", "To establish whether the staff are professionally qualified and competent to support the MPs during scrutiny, review, debate and amendment of the budget proposals"], ["**Procurement files and the GOU E-** \u2022 **procurement System**", "To ascertain whether public procurement information was accessible inform of open data"], ["**Program Working Group Meeting** \u2022 **Minutes and Senior Management Meeting Minutes** \u2022 \u2022", "To identify stakeholders, the extent of engagement with Civil Society Organizations, development partners and media during the budget preparation process."], [null, "To identify stakeholders, the extent of engagement with Civil Society Organizations, development partners and media during the budget approval process."], [null, "To identify stakeholders, the extent of engagement with Civil Society Organizations, development partners and media during the budget preparation process."], ["**Programme Implementation Action** \u2022 **Plan 2019/20-2024/25** \u2022", "To ascertain if the long and medium-term agenda of the sector feeds into the National development plan III, the strategic plan, and in line with the MoFPED guidance"], [null, "To ascertain if the long and medium-term agenda of the sector feeds into the National development plan III, the strategic plan, corporate plan in line with the MoFPED guidance"], ["**Public Finance Management Act and** \u2022 **Regulations 2015**  \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To establish if the audit committee reviews and follows up on internal audit reports and recommendations"], [null, "To establish if  is comprehensive (covering all transactions including e.g. contingent liabilities, commitments, non-tax revenue etc.) the MDA's financial reporting system"], [null, "To establish if there is a specific mechanism in place for tracking and accounting for resources deployed in emergency response and reporting it transparently"], [null, "To establish whether responsibilities for accounting and reporting are observed by the MDA"], [null, "To understand the processes for the preparation, approval and management of a transparent, credible and predictable annual budget"], [null, "To understand whether the MDA complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting"], [null, "To establish if the audit committee reviews and follows up on internal audit reports and recommendations."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 87, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "80", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 87, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["\u2022 \u2022 \u2022", "To establish if there is a specific mechanism in place for tracking spending by entities in line with the SDGs"], [null, "To establish whether responsibilities for accounting and reporting are observed by MDAs"], [null, "To understand the processes and timelines for Budget approval, oversight and management of a transparent, credible and predictable annual budget"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 88, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["\u2022 \u2022 \u2022", "To establish if there is a specific mechanism in place for tracking spending by entities in line with the SDGs"], [null, "To establish whether responsibilities for accounting and reporting are observed by MDAs"], [null, "To understand the processes and timelines for Budget approval, oversight and management of a transparent, credible and predictable annual budget"], ["**Public Service Standing order 2021** \u2022 \u2022", "To establish if the MDA\u2019s salary payments is done on time and in full"], [null, "To find out if there is efficient and lawful use of temporary employees in terms of their role, remuneration and number"], ["**Quarterly Internal Audit Committee** \u2022 **Minutes**", "To establish if the audit committee reviews and follows up on internal audit reports and recommendations"], ["**Receipts from treasury FY 2022/23** \u2022 **and revenue IFMIS reports.** \u2022 \u2022", "To ascertain if revenue reconciliations are being performed regularly"], [null, "To ascertain if transfers of revenue from commercial banks or other non-government financial entities to the central bank/national treasury are done regularly and swiftly?"], [null, "To confirm if the MDA receives all its approved budget funds"], ["**Reconciliation statements and bank** \u2022 **statements**", "To ascertain if revenue reconciliations are being performed regularly"], ["**Revenue forecast plans FY 2022/23** \u2022", "To establish whether the MDA's revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and if they are being met"], ["**Revenue statistics on** **generated funds** **internally** \u2022", "To establish whether the MDA's revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and if they are being met"], ["**SDGs progress report 2021 and the** \u2022 **National SDGs entity responsibility matrix**", "To ascertain the progress of performance of domesticated SDGs and the challenges in implementation of SDGs."], ["**Sector progress report FY 2022/23** \u2022 **and Road Map for implementation of** **SDGs** 2021/2022- 2024/2025** **in Uganda** \u2022", "To establish whether the MDA regularly monitors and reviews its performance against SDG targets, and is there a sufficient performance level."], [null, "To establish whether the MDA regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."], ["**Status Report on implementation of** \u2022 **internal Audit recommendations**", "to understand of recommendations and the reasons for observed performance. the status of implementation their"], ["**on the** \u2022 **internal Audit** **Status** Report implementation of recommendations**", "to understand of recommendations and the reasons for observed performance. the status of implementation their"], ["**Strategic plans 2019/20-2024/25** \u2022 \u2022 \u2022 \u2022", "To ascertain the extent of domestication of the SDGs Agenda in the MDAs' strategic plans to facilitate implementation"], [null, "To understand the key result areas and strategic concerns/ issues/gaps that need to be  addressed in the next five years to improve socio-economic development"], [null, "To understand whether spending priorities are aligned to the strategic plan"], [null, "To ascertain the extent of domestication of the SDGs in the Commission\u2019s strategic plans to facilitate implementation"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 88, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "81", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 88, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["\u2022 \u2022", "To understand the key result areas and strategic concerns/ issues/gaps that need to be  addressed in the next five years to improve Parliament\u2019s oversight role"], [null, "To understand whether the Commission\u2019s spending priorities are aligned to its strategic plan"], ["**The approved budget estimates/** \u2022 **Appropriation Act, 2022/2023 and** **the IFMIS uploaded Budget**  \u2022", "To establish if the budget uploaded on the IFMIS for the MDA was the one which was approved by Parliament"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 89, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": [["\u2022 \u2022", "To understand the key result areas and strategic concerns/ issues/gaps that need to be  addressed in the next five years to improve Parliament\u2019s oversight role"], [null, "To understand whether the Commission\u2019s spending priorities are aligned to its strategic plan"], ["**The approved budget estimates/** \u2022 **Appropriation Act, 2022/2023 and** **the IFMIS uploaded Budget**  \u2022", "To establish if the budget uploaded on the IFMIS for the MDA was the one which was approved by Parliament"], [null, "To establish if the in-year cash allocations to the MDA are in line with the approved budget and are these released regularly based on the cash requirements of the MDA"], ["**The authority's staff establishment** \u2022 **and approved structure as of April 2023**", "To find out if there is an efficient and lawful use of temporary employees in terms of their role, remuneration and number"], ["**The draft IT policy and disaster** \u2022 **recovery plan**", "To find out if there are disaster recovery procedures in place"], ["**The IT policy and disaster recovery** \u2022 **plan**", "To find out if there are disaster recovery procedures in place"], ["**The Ministry Strategic Plan 2020/21** \u2022 **\u2013 2024/25**  \u2022 \u2022", "To ascertain the extent of domestication of the SDGs Agenda in the MDAs' strategic plans to facilitate implementation"], [null, "To understand the key result areas and strategic concerns/ issues/gaps that need to be  addressed in the next five years to improve socio-economic development"], [null, "To understand whether spending priorities are aligned to the strategic plan"], ["\u2022 \u2022 **The MDA's staff establishment and** \u2022 **approved structure as of April 2023**", "To establish if the structure is filled as approved to support MDA's activities."], [null, "To establish with the existing staff structure matches the MDA payroll"], [null, "To find out if there is efficient and lawful use of temporary employees in terms of their role, remuneration and number"], ["**The National SDG Framework**  \u2022 \u2022", "To ascertain if the core sectoral SDGs reflected in the budget proposal are in line with the National SDG Framework"], [null, "To ascertain the national commitment in funding of SDGs"], ["**URA mid-term monitoring review** \u2022 **report FY 2022/2023** \u2022", "To establish whether budgets are utilized effectively, economically and efficiently towards achieving the domesticated SDG targets and programmes"], [null, "To establish whether the URA regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."], ["**URA progress report FY 2022/23** \u2022 **and Road Map for implementation of** **SDGs** 2021/2022- 2024/2025** **in Uganda** \u2022", "To establish whether the URA regularly monitors and reviews its performance against SDG targets, and is there a sufficient performance level."], [null, "To establish whether the URA regularly monitors and reviews its performance against the predetermined service delivery objectives and the budget, and does it have a sufficient performance level."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 89, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Document Reviewed", "The Purpose of review"], "type": "table"}}, {"content": "82", "metadata": {"headings": [{"headings_0": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}, {"headings_1": {"content": "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both Qualitative and Quantitative Data", "page": 64, "level": 1}}], "page": 89, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 90, "document_name": "Public Financial Management System Thematic Report 2023", "type": "heading"}}, {"content": [["**Ac-Procurement**", "Procurement and disposal department, Ministry of Health \u2022 \u2022", "lodged, To assess whether significant deviations from procurement legislation (anomalies) occurred (e.g. number/amount of irregular or unauthorized procurements; fraud identified, complaints unplanned non-competitive procurement, inadequate needs assessment conducted etc. or"], [null, null, "To ascertain whether public procurement information was accessible inform of open data (rules, announcements, specifications, bidding documentation, contracts awarded, etc.)."], ["**Ass. Commissioner Accounts- Head Finance (AC)**", "Finance department, Ministry of Health \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To ascertain the root causes of the observed discrepancies."], [null, null, "To establish whether debtors are being monitored and followed up"], [null, null, "To establish whether revenue reconciliations being performed regularly"], [null, null, "To ascertain whether the MDA have in place systems, processes and procedures to manage internally generated funds (e.g. fees, charges, donations etc.) in accordance with law and regulations."], [null, null, "To establish whether the MDA disclose revenue raised, revenue foregone, revenue uncollected and other key metrics of revenue performance by end of the budget cycle."], [null, null, "To establish whether public sector worker allowances, non- salary other non-salary benefits appropriately managed, monitored and recorded. remuneration and"], [null, null, "To ascertain whether transfers of revenue from commercial banks or other non-government financial entities to the central bank/national treasury done regularly and swiftly."], [null, null, "To ascertain the root causes of the observed discrepancies."], [null, null, "To ascertain whether the MDA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability. To ascertain whether the MDA's financial officer is professionally qualified."], [null, null, "To ascertain whether the MDA complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting."], [null, null, "To establish whether the responsibilities for accounting and reporting are observed by the MDA."], [null, null, "To establish whether MDA's financial reporting system is comprehensive (covering all transactions e.g. contingent liabilities, commitments, non-tax revenue etc."], ["**Assistant Commissioner Finance & Administration**", "Finance and \u2022 administration department,  Ministry of Water &", "To ascertain whether the contingency measures (business continuity plans) are in place to ensure service delivery continuity when faced with large-scale absence of staff during disaster periods."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 90, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "83", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 90, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "Environment  \u2022 \u2022", "To understand the disaster management strategies during large-scale absence of staff in disaster periods."], ["To establish whether there is a specific mechanism in place for tracking and accounting for resources deployed in emergency response and whether it is reported transparently.", null, null], ["**Assistant Commissioner Finance and Manager Financial Accounting**", "Finance department, Uganda Revenue Authority \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To establish whether the MDA disclosed revenue raised, revenue foregone, revenue uncollected and other key metrics of revenue performance by the end of the budget cycle."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 91, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": [["", "Environment  \u2022 \u2022", "To understand the disaster management strategies during large-scale absence of staff in disaster periods."], ["To establish whether there is a specific mechanism in place for tracking and accounting for resources deployed in emergency response and whether it is reported transparently.", null, null], ["**Assistant Commissioner Finance and Manager Financial Accounting**", "Finance department, Uganda Revenue Authority \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To establish whether the MDA disclosed revenue raised, revenue foregone, revenue uncollected and other key metrics of revenue performance by the end of the budget cycle."], [null, null, "To establish whether public sector worker allowances, non- salary remuneration and other non-salary benefits are appropriately managed, monitored and recorded."], [null, null, "To ascertain whether the URA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability. To ascertain whether the URA's financial officer is professionally qualified."], [null, null, "To ascertain whether the UR complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting."], [null, null, "To establish whether the responsibilities for accounting and reporting are observed by URA."], [null, null, "To establish whether URA's financial reporting system is comprehensive (covering all transactions e.g. contingent liabilities, commitments, non-tax revenue etc."], ["**Assistant Commissioner Human Resource**", "\u2022 \u2022 \u2022 Human Resources, URA", "To establish if the URA's payroll is robust (i.e. payroll details match the actual workforce and integrity of the payroll is regularly reviewed)"], [null, null, "To assess if there is an efficient and lawful use of temporary employees in terms of their role, remuneration and number."], [null, null, "To ascertain if the URA's salary payments are done on time and in full"], ["**Assistant Commissioner internal Audit**", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 Internal Audit Unit, MoH", "To establish whether the MDA implement an Internal Control System effective to mitigate PFM risks (e.g. over spending, collusion, misuse of assets, unauthorized spending)"], [null, null, "To understand the internal control system strategy and ascertain reasons for identified performance gaps."], [null, null, "To establish whether the MDA internal audit function is effective (number of audits conducted and recommendations implemented)."], [null, null, "To understand the status of implementation of their recommendations and the reasons for observed performance."], [null, null, "To establish whether the audit committee review and follow up on internal audit reports and recommendations."], [null, null, "To ascertain the constitution and functionality of the committees and root causes of the identified performance gaps."], ["**Assistant Commissioner Internal Audit and Manager Internal Audit**", "\u2022 \u2022 Internal Audit Unit, URA", "To establish whether URA implement an Internal Control System effectively to mitigate PFM risks (e.g. overspending, collusion, misuse of assets, unauthorized spending)"], [null, null, "To understand the internal control system strategy and ascertain reasons for identified performance gaps."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 91, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "84", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 91, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "\u2022 \u2022 \u2022 \u2022", "To establish whether the authority\u2019s internal audit function is effective (number of audits conducted and recommendations implemented)."], ["To understand the status of implementation of their recommendations and the reasons for observed performance.", null, null], ["To establish whether the audit committee review and follow up on internal audit reports and recommendations.", null, null]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 92, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": [["", "\u2022 \u2022 \u2022 \u2022", "To establish whether the authority\u2019s internal audit function is effective (number of audits conducted and recommendations implemented)."], ["To understand the status of implementation of their recommendations and the reasons for observed performance.", null, null], ["To establish whether the audit committee review and follow up on internal audit reports and recommendations.", null, null], ["To ascertain the constitution and functionality of the committees.", null, null], ["**Assistant Commissioner Litigation and Manager Litigation**", "Litigation department, URA \u2022", "To ascertain if URA has a tax dispute resolution in place and if it is effective."], ["**Assistant Commissioner Public and Corporate Affairs, Acting Manager Public Relations and Communication, Acting Manager Tax Education**", "Tax Education \u2022 department,  URA", "To ascertain if the revenue authority actively supports taxpayers towards voluntary compliance with relevant tax legislation."], ["**Assistant Director**", "\u2022 \u2022 \u2022 Budget Office, Parliament", "To ascertain the budget approval process and the root causes of the identified performance gaps"], [null, null, "To confirm if the legislative calendar for oversight on the PFM cycle is in place and is being complied with."], [null, null, "to resources allocated to To ascertain whether Parliament follows up on budget spending according the Domesticated SDG Programmes"], ["**Assistant Director in Charge Committees;**", "\u2022 \u2022 Parliament", "To confirm whether sufficient resources were availed for scrutinizing, debating and potentially amending the budget proposal prior to approval"], [null, null, "To confirm the possibility of citizen participation in public hearings and ascertain whether members of the public have access to published reports in mass and print media, and the Parliamentary website."], ["**Clerks to the Public Accountability Committees**", "\u2022 \u2022 CGPAC, LGPAC, COSASE \u2022", "To ascertain whether Parliament follows up on budget spending according the Domesticated SDG Programmes to resources allocated to"], [null, null, "To ascertain whether Parliament and the relevant committees appropriately review, comment and debate the findings of audit reports"], [null, null, "To ascertain whether Parliament follows up on prior year audit reports."], ["**Commissioner Human Resource, Project Managers and Senior Human Resource Officer**", "\u2022 \u2022 \u2022 Finance and Administration, MoWE; MoWT", "To assess if there is an efficient and lawful use of temporary employees in terms of their role, remuneration and number."], [null, null, "To ascertain if the MDA's salary payments are done on time and in full"], [null, null, "To ascertain if the payroll systems and the main government IFMIS system are interlinked to provide complete, accurate and timely information on public sector salary expenditure in compliance with ceilings"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 92, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "85", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 92, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**Commissioner Planning and Principal Economist**", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 Policy and Planning, MoWE; MoWT \u2022", "To triangulate information from reviewed documents to establish whether the sector strategies were aligned to the NDP III, strategic plan, the integrated transport infrastructure master plan 2019/20-2024/25 and in line with MoFPED guidance."], [null, null, "To ascertain the national commitment in funding SDGs."], [null, null, "To find out whether the MDA comply with the budget preparation procedures (legal requirements, budget calendar, budget classifications, etc.)"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 93, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": [["**Commissioner Planning and Principal Economist**", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 Policy and Planning, MoWE; MoWT \u2022", "To triangulate information from reviewed documents to establish whether the sector strategies were aligned to the NDP III, strategic plan, the integrated transport infrastructure master plan 2019/20-2024/25 and in line with MoFPED guidance."], [null, null, "To ascertain the national commitment in funding SDGs."], [null, null, "To find out whether the MDA comply with the budget preparation procedures (legal requirements, budget calendar, budget classifications, etc.)"], [null, null, "To corroborate that the MDA budget as approved by Parliament is aligned with the NDP, MTEF and other statements of government expenditure policy"], [null, null, "To assess whether the budget makes provision for unexpected events, for example through contingency or reserve funds, in line with the budget law"], [null, null, "To establish whether the sector strategies were aligned to the NDP III, strategic plan, the integrated transport infrastructure master plan 2019/20-2024/25 and in line with MoFPED guidance."], [null, null, "To establish whether the budget spending priorities are aligned to the strategic plan, NDP and other key policies."], [null, null, "To establish whether the MDA revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and whether they are being met"], [null, null, "To establish whether the budget uploaded on the IFMIS for the MDA is the one which was approved by Parliament and the reasons for any deviations."], [null, null, "To ascertain whether funding shortfalls, arrears and rollover accruals are considered in this year's budget as well as their root causes."], [null, null, "To establish whether in-year cash allocations to the MDA are in line with the approved budget and whether these are released regularly based on the cash requirements of the MDA."], [null, null, "To ascertain whether the MDA submits regular and complete expenditure and performance reports to the MoF as per the required timelines."], [null, null, "To triangulate information from reviewed documents to establish whether the sector strategies were aligned to the NDP III, strategic plan, and in line with MoFPED guidance."], [null, null, "To establish whether the sector strategies were aligned to the NDP III, strategic plan and in line with MoFPED guidance."], ["**Commissioner policy and planning, Principal economist and Head Finance**", "Policy and Planning \u2022 Finance and Administration,  MoWE; MoWT", "To ascertain the variations between the approved budget and the actual expenditure and further ascertain the root causes of such deviations."], ["**Head Human resources**", "\u2022 \u2022 Finance and Administration, MoH", "To assess if there is an efficient and lawful use of temporary employees in terms of their role, remuneration and number."], [null, null, "To ascertain if the MDA's salary payments are done on time and in full"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 93, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "86", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 93, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "\u2022", "To ascertain if the payroll systems and the main government IFMIS system are interlinked to provide complete, accurate and timely information on public sector salary expenditure in compliance with ceilings"], ["**Head IT**", "\u2022 \u2022 Finance and Administration/ IT department,  MoH", "To ascertain if there are effective controls, oversight and regular maintenance of key government IT systems"], [null, null, "To establish whether there are Disaster Recovery Procedures in place"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 94, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": [["", "\u2022", "To ascertain if the payroll systems and the main government IFMIS system are interlinked to provide complete, accurate and timely information on public sector salary expenditure in compliance with ceilings"], ["**Head IT**", "\u2022 \u2022 Finance and Administration/ IT department,  MoH", "To ascertain if there are effective controls, oversight and regular maintenance of key government IT systems"], [null, null, "To establish whether there are Disaster Recovery Procedures in place"], ["**Head M&E**", "Policy and Planning, \u2022 MoH", "To ascertain the variations between the approved budget and the actual expenditure and further ascertain the root causes of such deviations."], ["**Head Planning**", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 Policy and Planning, MoH", "To triangulate information from reviewed documents to establish whether the sector strategies were aligned to the NDP III, strategic plan;  To ascertain the national commitment in funding SDGs."], [null, null, "To find out whether the MDA comply with the budget preparation procedures (legal requirements, budget calendar, budget classifications, etc.)"], [null, null, "To corroborate that the MDA budget as approved by Parliament is aligned with the NDP, MTEF and other statements of government expenditure policy"], [null, null, "To assess whether  for unexpected events, for example through contingency or reserve funds, in line with the budget law the budget makes provision"], [null, null, "To establish whether the sector strategies were aligned to the NDP III, strategic plan"], [null, null, "To establish whether the budget spending priorities are aligned to the strategic plan, NDP and other key policies."], [null, null, "To establish whether the MDA revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and whether they are being met"], [null, null, "To establish whether the budget uploaded on the IFMIS for the MDA is the one which was approved by Parliament and the reasons for any deviations."], [null, null, "To ascertain whether funding shortfalls, arrears and rollover accruals are considered in this year's budget as well as their root causes."], [null, null, "To establish whether in-year cash allocations to the MDA are in line with the approved budget and whether these are released regularly based on the cash requirements of the MDA."], [null, null, "To ascertain whether the MDA submits regular and complete expenditure and performance reports to the MoF as per the required timelines."], ["**Heads of Department**", "\u2022 \u2022 Planning  ICT  Human Resources: MoWE; MoWT", "To ascertain the planning modalities for domesticated SDGs and implementation challenges"], [null, null, "To ascertain the root causes of the identified performance gaps."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 94, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "87", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 94, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["**Heads of Department**", "Roads and Bridges \u2022 Transport safety and regulation  Mechanical workshop  \u2022", "To ascertain the planning modalities for domesticated SDGs and implementation challenges"], [null, null, "To ascertain the root causes of the identified performance gaps."], ["**IT Commissioner.**", "IT department, URA \u2022 \u2022 \u2022", "To ascertain if there are effective controls, oversight and regular maintenance of key government IT systems"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 95, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": [["**Heads of Department**", "Roads and Bridges \u2022 Transport safety and regulation  Mechanical workshop  \u2022", "To ascertain the planning modalities for domesticated SDGs and implementation challenges"], [null, null, "To ascertain the root causes of the identified performance gaps."], ["**IT Commissioner.**", "IT department, URA \u2022 \u2022 \u2022", "To ascertain if there are effective controls, oversight and regular maintenance of key government IT systems"], [null, null, "To establish whether there are Disaster Recovery Procedures in place"], [null, null, "To ascertain if the payroll systems and the main government IFMIS system are interlinked"], ["**IT Senior officer**", "Finance and Administration/ IT department, MoWE; MoWT \u2022 \u2022", "To ascertain if there are effective controls, oversight and regular maintenance of key government IT systems"], [null, null, "To establish whether there are Disaster Recovery Procedures in place"], ["**Manager Financial Accounting and Assistant Commissioner Finance**", "Finance and Administration department, URA \u2022 \u2022 \u2022 \u2022", "To ascertain whether the contingency measures (business continuity plans) are in place to ensure service delivery continuity when faced with large-scale absence of staff during disaster periods."], [null, null, "To understand the disaster management strategies during the large-scale absence of staff in disaster periods."], [null, null, "To establish whether there is a specific mechanism in place for tracking and accounting for resources deployed in emergency response and whether it is reported transparently."], [null, null, "To understand the disaster management strategies during large-scale absence of staff in disaster periods."], ["**Manager revenue modelling and policy analysis**", "Revenue modelling and \u2022 policy analysis,  URA", "To ascertain the role of URA in the revenue forecasting process."], ["**Managers in the Legal services and board affairs**", "Legal services and board affairs,  URA \u2022 \u2022", "To ascertain in URA contributes towards the tax policy development process."], [null, null, "To ascertain if URA has a tax dispute resolution in place and if it is effective."], ["**Principal Clerk Officer**", "Parliament  \u2022 \u2022 \u2022", "To confirm whether Parliamentary debate on budget is open to observation by the public"], [null, null, "To confirm whether Parliament's debate on the budget includes domesticated SDGs and ascertain whether the approved budget has clearly mapped resource allocation for achieving the domesticated SDGs"], [null, null, "To confirm Government commitment to implement the SDGs in Uganda and hence agenda 2030."], ["**Senior Accountant and Head Finance (AC)**", "Finance department, MoWE; MoWT \u2022 \u2022 \u2022 \u2022", "To ascertain the root causes of the observed discrepancies."], [null, null, "To establish whether debtors are being monitored and followed up"], [null, null, "To establish whether revenue reconciliations being performed regularly"], [null, null, "To ascertain whether the MDA have in place systems, processes and procedures to manage internally generated funds (e.g. fees, charges, donations etc.) in accordance with law and regulations."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 95, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "88", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 95, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To establish whether the MDA disclose revenue raised, revenue foregone, revenue uncollected and other key metrics of revenue performance by end of the budget cycle."], ["To establish whether public sector worker allowances, non- salary other non-salary benefits appropriately managed, monitored and recorded. remuneration and", null, null], ["To ascertain whether transfers of revenue from commercial banks or other non-government financial entities to the central bank/national treasury done regularly and swiftly.", null, null]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 96, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": [["", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022", "To establish whether the MDA disclose revenue raised, revenue foregone, revenue uncollected and other key metrics of revenue performance by end of the budget cycle."], ["To establish whether public sector worker allowances, non- salary other non-salary benefits appropriately managed, monitored and recorded. remuneration and", null, null], ["To ascertain whether transfers of revenue from commercial banks or other non-government financial entities to the central bank/national treasury done regularly and swiftly.", null, null], ["To ascertain the root causes of the observed discrepancies.", null, null], ["To ascertain whether the MDA has effective commitment control processes in place to ensure that overall spending is approved in line with budgets and/or cash availability. To ascertain whether the MDA's financial officer is professionally qualified.", null, null], ["To ascertain whether the MDA complies with the legal framework, deadlines, policies and formats covering financial accounting and reporting.", null, null], ["To establish whether the responsibilities for accounting and reporting are observed by the MDA.", null, null], ["To establish whether MDA's financial reporting system is comprehensive (covering all transactions e.g. contingent liabilities, commitments, non-tax revenue etc.", null, null], ["**Senior Human Resource Officer**", "Finance and \u2022 Administration,  MoWE; MoWT", "To establish if the MDA's payroll is robust (i.e. payroll details match the actual workforce and integrity of the payroll is regularly reviewed)"], ["**Senior Internal Auditor and Assistant Commissioner internal Audit**", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 Internal Audit Unit, MoWE; MoWT", "To establish whether the MDA implement an Internal Control System effective to mitigate PFM risks (e.g. over spending, collusion, misuse of assets, unauthorized spending)"], [null, null, "To understand the internal control system strategy and ascertain reasons for identified performance gaps."], [null, null, "To establish whether the MDA internal audit function is effective (number of audits conducted and recommendations implemented)."], [null, null, "To understand the status of implementation of their recommendations and the reasons for observed performance."], [null, null, "To establish whether the audit committee review and follow up on internal audit reports and recommendations."], [null, null, "To ascertain the constitution and functionality of the committees and root causes of the identified performance gaps."], ["**Senior Procurement officers, Procurement officer and Heads of department**", "Procurement and \u2022 disposal department, MoWE; MoWT; URA", "To assess whether significant deviations from procurement legislation (anomalies) occurred (e.g. number/amount of irregular or unauthorized procurements; fraud identified, complaints unplanned non-competitive procurement, inadequate needs assessment conducted etc. lodged,  or"]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 96, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "89", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 96, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "\u2022 \u2022 \u2022 \u2022 \u2022", "To ascertain whether public procurement information was accessible inform of open data (rules, announcements, specifications, bidding documentation, contracts awarded, etc.)."], ["To assess whether significant deviations from procurement legislation (anomalies) occurred (e.g. number/amount of irregular or unauthorized procurements; fraud identified, complaints unplanned non-competitive procurement, inadequate needs assessment conducted etc. lodged,  or", null, null], ["To ascertain whether public procurement information was accessible inform of open data (rules, announcements, specifications, bidding documentation, contracts awarded, etc.).", null, null], ["lodged,  or To assess whether significant deviations from procurement legislation (anomalies) occurred (e.g. number/amount of irregular or unauthorized procurements; fraud identified, complaints unplanned non-competitive procurement, inadequate needs assessment conducted etc.", null, null], ["To ascertain whether public procurement information was accessible and inform of open data (rules, announcements, specifications, bidding documentation, contracts awarded, etc.).", null, null], ["**The budget supervisor and the budget office team**", "\u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 \u2022 Budget Office, URA", "To triangulate information from reviewed documents to establish whether the sector strategies were aligned to the NDP III, strategic plan, and in line with MoFPED guidance."], [null, null, "To ascertain the national commitment to funding SDGs."], [null, null, "To find out whether URA complies with the budget preparation procedures (legal requirements, budget calendar, budget classifications, etc.)"], [null, null, "To corroborate that the URA budget as approved by Parliament is aligned with the NDP, MTEF and other statements of government expenditure policy"], [null, null, "To assess whether  for unexpected events, for example through contingency or reserve funds, in line with the budget law the budget makes provision"], [null, null, "To establish whether the sector strategies were aligned to the NDP III, corporate 2019/20-2024/25 and in line with MoFPED guidance."], [null, null, "To establish whether the budget spending priorities are aligned with the strategic plan, NDP and other key policies."], [null, null, "To establish whether the URA revenue targets are based on reasonable assumptions including past history of revenue collected versus forecasted, and whether they are being met"], [null, null, "To establish whether the budget uploaded on the IFMIS for URA is the one which was approved by Parliament and the reasons for any deviations."], [null, null, "To ascertain whether funding shortfalls, arrears and rollover accruals are considered in this year's budget as well as their root causes."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 97, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "90", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 97, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}, {"content": [["", "\u2022 \u2022", "To establish whether in-year cash allocations to the URA are in line with the approved budget and whether these are released regularly based on the cash requirements of the Authority."], ["To ascertain whether URA submits regular and complete expenditure and performance reports to the MoF as per the required timelines.", null, null], ["**Undersecretary Finance and administration**", "Finance and administration department, MoWE; MoWT \u2022 \u2022 \u2022", "To ascertain whether the contingency measures (business continuity plans) are in place to ensure service delivery continuity when faced with large-scale absence of staff during disaster periods."], [null, null, "To understand the disaster management strategies during large-scale absence of staff in disaster periods."], [null, null, "To establish whether there is a specific mechanism in place for tracking and accounting for resources deployed in emergency response and whether it is reported transparently."]], "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 98, "document_name": "Public Financial Management System Thematic Report 2023", "columns": ["Staff Interviewed", "Department", "Purpose"], "type": "table"}}, {"content": "91", "metadata": {"headings": [{"headings_0": {"content": "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose", "page": 90, "level": 1}}, {"headings_1": {"content": "Appendix III: Showing Documents Reviewed and The Purpose of Review", "page": 82, "level": 1}}], "page": 98, "document_name": "Public Financial Management System Thematic Report 2023", "type": "paragraph"}}], "table_of_contents": [{"content": ["TABLE OF CONTENTS - i", "LIST OF TABLES - iii", "LIST OF FIGURES - iv", "TABLE OF ACRONYMS/ABBREVIATIONS - v", "EXECUTIVE SUMMARY - 1", "CHAPTER ONE - 10", "  1.0 INTRODUCTION - 10", "  1.1 Background of the PFM Audit - 10", "  1.2 Motivation for the PFM Audit - 11", "  1.3 Overview of the Public Financial Management systems and processes in - 12", "Uganda - 12", "  1.4 Legal and Regulatory Arrangements for PFM in Uganda - 14", "CHAPTER TWO - 16", "  2.0 AUDIT DESIGN AND METHODOLOGY - 16", "  2.1 Audit Scope - 16", "  2.2 Audit Objective - 16", "  2.3 Audit Questions - 17", "  2.4 Basis for selection of the PFM Entities - 17", "  2.5 Data Collection Methods (DCM) - 17", "  2.6 Limitation of the PFM Assessment - 18", "  2.7 Data analysis - 19", "CHAPTER THREE - 21", "AUDIT FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 21 3.0", "  3.1 Overall Performance of Government PFM system Processes - 21", "  3.2 Macroeconomic Policy, Fiscal Policy, and Strategic Budgeting - 22", "  3.3 Budget Preparation - 30", "  3.4 Budget Approval - 36", "  3.5 Financial Management and Service Delivery - 39", "  3.6 Accounting, Reporting, and Oversight - 51", "APPENDICES - 54", "Appendix I: Showing The Detailed Activities, Outputs and Timelines for the 5 Core PFM", "Processes Along the Whole Budget Cycle - 54", "Appendix II: Showing The Key Assessment Questions That Facilitate Collection of Both", "Qualitative and Quantitative Data - 57"], "page": 2}, {"content": ["Appendix III: Showing Documents Reviewed and The Purpose of Review - 75", "Appendix IV: Showing Key Informants/ Interviews Conducted and Purpose - 83"], "page": 3}, {"content": ["LIST OF TABLES", "Table 1: Showing some of the legal and regulatory arrangements for the PFM in Uganda - 14", "Table 2: Showing the budget significance as one of the selection criteria for the PFM Pilot", "entities - 17", "Table 4: Showing the performance grading for key processes and integration of SDGs into", "PFM Processes - 19", "Table 5: Showing Macroeconomic assumptions used in short and medium term forecasts - 27", "Table 6: Showing deviations between forecasts and actual performance - 28", "Table 7: Showing the comparison between the strategic plan estimates and the approved", "budget estimates for the FY2022/2023 - 29", "Table 8; Showing underfunding of the contingency fund - 32", "Table 9: Showing level of alignment of the BFPs to the NDPIII - 33", "Table 10: Showing performance of outstanding arrears against budget allocations - 35", "Figure 6: Showing the performance of the PFM budget approval process by Government", "institutions - 37", "Table 11; Selected entities\u2019 performance per sub-process - 40", "Table 12 Showing summary performance of revenue by source - 45", "Table 13: Showing NTR performance per entity for FY 2022/2023 - 46", "Table 13: Showing performance of GoU warrants - 47", "Table 14: A Summary of extent of implementation of planned activities of the assessed", "entities - 48"], "page": 4}, {"content": ["LIST OF FIGURES", "Figure 1: Showing the summary flow chart of the core PFM system processes - 12", "Figure 2 Showing Government performance along each PFM process for the FY 2022/202321", "Figure 3: Showing Government performance on Macroeconomic policy, fiscal policy and", "strategic budgeting PFM process for the FY 2022/23 - 22", "Figure 4: Showing Debt to GDP Ratio - 24", "Figure 5: Showing the performance of the PFM budget preparation process by Government", "institutions - 31", "Figure 7: Showing the performance of the PFM financial management and service delivery", "process by Government institutions - 40", "Figure 8: Showing Dominant Root Cause Attribution by the Financial Management And", "Service Delivery Process - 41", "Figure 9: Showing the performance of the PFM Accounting, Reporting and Oversight", "process by Government institutions - 52"], "page": 5}]}
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